TERMINATION OF SYSTEM INSTITUTION STATUS.

SEC. 7.10. [12 U.S.C. 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 Act.