12 USC § 2279d - Termination of System institution status

---
identifier: "/us/usc/t12/s2279d"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 2279d - Termination of System institution status"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "2279d"
section_name: "Termination of System institution status"
chapter_number: 23
chapter_name: "FARM CREDIT SYSTEM"
subchapter_number: "VII"
subchapter_name: "RESTRUCTURING OF SYSTEM INSTITUTIONS"
part_number: "B"
part_name: "Mergers, Transfers of Assets, and Powers of Associations Within a District"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 92–181, title VII, § 7.10, as added Pub. L. 100–233, title IV, § 416, Jan. 6, 1988, 101 Stat. 1650; amended Pub. L. 115–334, title V, § 5411(41), Dec. 20, 2018, 132 Stat. 4683.)"
---


# § 2279d. Termination of System institution status

**(a)** **Conditions** A System institution may terminate the status of the institution as a System institution if—

**(1)** the institution provides written notice to the Farm Credit Administration Board not later than 90 days prior to the proposed termination date;

**(2)** the termination is approved by the Farm Credit Administration Board;

**(3)** the appropriate Federal or State authority grants approval to charter the institution as a bank, savings and loan association, or other financial institution;

**(4)** the institution pays to the Farm Credit Insurance Fund the amount by which the total capital of the institution exceeds 6 percent of the assets;

**(5)** the institution pays or makes adequate provision for payment of all outstanding debt obligations of the institution;

**(6)** the termination is approved by a majority of the stockholders of the institution voting, in person or by written proxy, at a duly authorized stockholders’ meeting, held prior to giving notice to the Farm Credit Administration Board; and

**(7)** the institution meets such other conditions as the Farm Credit Administration Board by regulation considers appropriate.

**(b)** **Effect** On termination of its status as a System institution—

**(1)** the Farm Credit Administration Board shall revoke the charter of the institution; and

**(2)** the institution shall no longer be an instrumentality of the United States under this chapter.

---

**Source Credit**: (Pub. L. 92–181, title VII, § 7.10, as added Pub. L. 100–233, title IV, § 416, Jan. 6, 1988, 101 Stat. 1650; amended Pub. L. 115–334, title V, § 5411(41), Dec. 20, 2018, 132 Stat. 4683.)

## Editorial Notes

### Amendments

2018—Subsec. (a)(4).  added par. (4) and struck out former par. (4) which read as follows: “the institution pays to the Farm Credit Assistance Fund, as created under , if the termination is prior to , or pays to the Farm Credit Insurance Fund, if the termination is after such date, the amount by which the total capital of the institution exceeds, 6 percent of the assets;”.