(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.