---
kind: "section"
citation: "12 U.S.C. § 2279d"
title: "12"
title_heading: "Banks and Banking"
number: "2279d"
heading: "Termination of System institution status"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2279d"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter VII — Restructuring of System Institutions"
  - "Part B — Mergers, Transfers of Assets, and Powers of Associations Within a District"
  - "Subpart 4 — termination and dissolution of institutions"
---

# §2279d. Termination of System institution status

- (a) **Conditions—** A [System institution](/usc/12/2271.md?p=3) may terminate the status of the [institution](/usc/12/2271.md?p=3) as a [System institution](/usc/12/2271.md?p=3) if—
  - (1) the [institution](/usc/12/2271.md?p=3) provides written notice to the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/1861.md?p=b-3) not later than 90 days prior to the proposed termination date;
  - (2) the termination is approved by the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/1861.md?p=b-3);
  - (3) the appropriate Federal or [State](/usc/12/2277a.md?p=5) authority grants approval to charter the [institution](/usc/12/2271.md?p=3) as a bank, savings and loan association, or other financial [institution](/usc/12/2271.md?p=3);
  - (4) the [institution](/usc/12/2271.md?p=3) pays to the Farm [Credit](/usc/12/5481.md?p=7) Insurance Fund the amount by which the total capital of the [institution](/usc/12/2271.md?p=3) exceeds 6 percent of the assets;
  - (5) the [institution](/usc/12/2271.md?p=3) pays or makes adequate provision for payment of all outstanding debt obligations of the [institution](/usc/12/2271.md?p=3);
  - (6) the termination is approved by a majority of the stockholders of the [institution](/usc/12/2271.md?p=3) voting, in [person](/usc/12/5481.md?p=19) or by written proxy, at a duly authorized stockholders’ meeting, held prior to giving notice to the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/1861.md?p=b-3); and
  - (7) the [institution](/usc/12/2271.md?p=3) meets such other conditions as the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/1861.md?p=b-3) by regulation considers appropriate.
- (b) **Effect—** On termination of its status as a [System institution](/usc/12/2271.md?p=3)—
  - (1) the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/1861.md?p=b-3) shall revoke the charter of the [institution](/usc/12/2271.md?p=3); and
  - (2) the [institution](/usc/12/2271.md?p=3) 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.)

## Notes

### Editorial Notes

### Amendments

2018—Subsec. (a)(4). Pub. L. 115–334 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 section 2278b–5 of this title, if the termination is prior to January 1, 1992, 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;”.