---
kind: "section"
citation: "12 U.S.C. § 2183"
title: "12"
title_heading: "Banks and Banking"
number: "2183"
heading: "Dissolution; voluntary or involuntary liquidation; mergers; receiverships or conservators"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2183"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter IV — Provisions Applicable to Two or More Classes of Institutions of the System"
  - "Part B — Dissolution"
---

# §2183. Dissolution; voluntary or involuntary liquidation; mergers; receiverships or conservators

- (a) **Voluntary liquidation; consent of Farm Credit Administration; rules and regulations; minimization of adverse effect; voluntary merger; mandatory merger on failure to comply or meet obligations—** No [institution](/usc/12/2271.md?p=3) of the System shall go into voluntary liquidation without the consent of the Farm [Credit](/usc/12/5481.md?p=7) Administration and with such consent may liquidate only in accordance with regulations prescribed by the Farm [Credit](/usc/12/5481.md?p=7) Administration. In the case of a voluntary liquidation of an association, such regulations, among other things, shall direct the supervising bank to institute such measures as it deems appropriate to minimize the adverse effect of the liquidation on those borrowers whose loans are purchased by or otherwise transferred to another [System institution](/usc/12/2271.md?p=3). The Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/1861.md?p=b-3) may require an association to merge with another association whenever it determines, with the concurrence of the [board](/usc/12/1861.md?p=b-3) of the supervising bank, that an association has failed to meet its outstanding obligations or failed to conduct its operations in accordance with this chapter.
- (b) **Appointment of conservator or receiver; grounds; action for removal; stay of actions or proceedings—** The Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/1861.md?p=b-3) may appoint a conservator or receiver for any [System institution](/usc/12/2271.md?p=3) on the determination by the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/1861.md?p=b-3) that one or more of the following exists, or is occurring, with respect to the [institution](/usc/12/2271.md?p=3): (1) insolvency, in that the assets of the [institution](/usc/12/2271.md?p=3) are less than its obligations to its creditors and others, including its members; (2) substantial dissipation of assets or earnings due to any [violation](/usc/12/2271.md?p=2) of law, rules, or regulations, or to any [unsafe or unsound practice](/usc/12/2271.md?p=5); (3) an unsafe or unsound condition to transact business; (4) willful [violation](/usc/12/2271.md?p=2) of a [cease and desist order that has become final](/usc/12/2271.md?p=1); (5) concealment of books, papers, records, or assets of the [institution](/usc/12/2271.md?p=3) or refusal to submit books, papers, records, or other material relating to the affairs of the [institution](/usc/12/2271.md?p=3) for inspection to any examiner or to any lawful agent of the Farm [Credit](/usc/12/5481.md?p=7) Administration; (6) the [institution](/usc/12/2271.md?p=3) is unable to timely pay principal or interest on any [insured obligation](/usc/12/2277a.md?p=3) (as defined in [section 2277a(3) of this title](/usc/12/2277a.md?p=3)) issued by the [institution](/usc/12/2271.md?p=3). The Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/1861.md?p=b-3) shall have exclusive power and jurisdiction to appoint a conservator or receiver, and such receiver or conservator, after the 5-year period beginning on January 6, 1988, shall be the Farm [Credit](/usc/12/5481.md?p=7) System Insurance [Corporation](/usc/12/2277a.md?p=2). If the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/1861.md?p=b-3) determines that a ground for the appointment of a conservator or receiver as herein provided exists, the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/1861.md?p=b-3) may appoint ex parte and without notice a conservator or receiver for the [institution](/usc/12/2271.md?p=3). In the event of such appointment, the [institution](/usc/12/2271.md?p=3), within thirty days thereafter, may bring an action in the United States district court for the judicial district in which the home [office](/usc/12/2279bb.md?p=4) of such [institution](/usc/12/2271.md?p=3) is located, or in the United States District Court for the District of Columbia, for an order requiring the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/1861.md?p=b-3) to remove such conservator or receiver, and the court shall on the merits, dismiss such action or direct the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/1861.md?p=b-3) to remove such conservator or receiver. On the commencement of such an action, the court having jurisdiction of any other action or enforcement proceeding authorized under this chapter to which the [institution](/usc/12/2271.md?p=3) is a party shall stay such action or proceeding during the pendency of the action for removal of the conservator or receiver.
- (c) **Involuntary liquidation; rules and regulations; minimization of adverse effect—** In the case of an involuntary liquidation of an association, regulations of the Farm [Credit](/usc/12/5481.md?p=7) Administration, among other things, shall direct the supervising bank to institute such measures as it deems appropriate to minimize the adverse effect of the liquidation on those borrowers whose loans are purchased by or otherwise transferred to another [System institution](/usc/12/2271.md?p=3).

## Source credit

(Pub. L. 92–181, title IV, § 4.12, Dec. 10, 1971, 85 Stat. 612; Pub. L. 99–205, title I, § 102, title II, § 205(f)(5), title III, § 305, Dec. 23, 1985, 99 Stat. 1679, 1706, 1708; Pub. L. 100–233, title III, § 306, title IV, § 418(a)(4), formerly § 415(a)(4), § 431(g), title VIII, § 805(r), Jan. 6, 1988, 101 Stat. 1622, 1653, 1660, 1716, renumbered § 418(a)(4), Pub. L. 100–399, title IV, § 409(a), Aug. 17, 1988, 102 Stat. 1003; Pub. L. 100–399, title IX, § 901(f), Aug. 17, 1988, 102 Stat. 1007.)

## Notes

### Editorial Notes

### Amendments

1988—Subsec. (a). Pub. L. 100–399, § 901(f), substituted “board of the supervising bank” for “district board”.

Pub. L. 100–233, § 415(a)(4), struck out third sentence which provided that Associations may voluntarily merge with other like associations upon the vote of a majority of each of their stockholders present and voting or voting by written proxy at duly authorized meetings, and with the approval of the supervising bank and the Farm Credit Administration, and substituted “Board may require an association to merge with another association” for “may require such merger” in fourth sentence.

Subsec. (b). Pub. L. 100–233, § 431(g), substituted “Farm Credit Administration Board” for “Farm Credit Administration” wherever appearing other than in cl. (5).

Pub. L. 100–233, § 306, added cl. (6) and inserted “, and such receiver or conservator, after the 5-year period beginning on January 6, 1988, shall be the Farm Credit System Insurance Corporation” before the period at end of second sentence.

Pub. L. 100–233, § 805(r), substituted “court shall” for “court, shall”.

1985—Subsec. (a). Pub. L. 99–205, § 205(f)(5), substituted “Farm Credit Administration” for “Federal Farm Credit Board” in last sentence.

Pub. L. 99–205, § 305(a), inserted after first sentence a sentence requiring the regulations, in the case of a voluntary liquidation of an association, to direct the supervising bank to institute appropriate measures to minimize the adverse effect of the liquidation on borrowers whose loans are purchased by or otherwise transferred to another System institution.

Subsec. (b). Pub. L. 99–205, § 102, in revising subsec. (b), substituted expanded provisions respecting appointment of conservator or receiver for former provision, which read as follows: “Upon default of any obligation by any institution of the System, such institution may be declared insolvent and placed in the hands of a conservator or a receiver appointed by the Governor and the proceedings thereon shall be in accordance with regulations of the Farm Credit Administration regarding such insolvencies.”

Subsec. (c). Pub. L. 99–205, § 305(b), added subsec. (c).

### Statutory Notes and Related Subsidiaries

### Effective Date of 1988 Amendment

Amendment by Pub. L. 100–399 effective as if enacted immediately after enactment of Pub. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Pub. L. 100–399, set out as a note under section 2002 of this title.

### Effective Date of 1985 Amendment

Amendment by Pub. L. 99–205 effective thirty days after Dec. 23, 1985, see section 401 of Pub. L. 99–205, set out as a note under section 2001 of this title.