[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR611.1230]



[Page 76-77]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 611_ORGANIZATION--Table of Contents

 

           Subpart P_Termination of System Institution Status

 

Sec. 611.1230  FCA review and approval.



    (a) FCA review period. We will review a termination application and 

either give preliminary approval or disapprove the application no later 

than 60 days after we receive the application.

    (b) Reservation of right to disapprove termination. In addition to 

any other reason for disapproval, we may disapprove a termination if we 

determine that the termination would have a material adverse effect on 

the ability of the remaining System institutions to fulfill their 

statutory purpose.

    (c) Conditions of final FCA approval. We will give final approval to 

your termination application only if:

    (1) Your stockholders vote in favor of termination in the 

termination vote and in any reconsideration vote;

    (2) You give us executed copies of all contracts, agreements, and 

other documents submitted under Sec. 611.1222;

    (3) You have paid or made adequate provision for payment of debts, 

including responsibility for any contingent liabilities, and for 

retirement of equities;

    (4) A Federal or State chartering authority has granted a new 

charter to the successor institution;

    (5) You deposit into escrow an amount equal to 110 percent of the 

estimated exit fee plus 110 percent of the



[[Page 77]]



estimated amount you must pay to retire equities of dissenting 

stockholders and Farm Credit institutions, as described in Sec. 

611.1255(c); and

    (6) You have fulfilled any other condition of termination we have 

imposed.

    (d) Effective date of termination. If we grant final approval, we 

will revoke your charter, and the termination will be effective on the 

last to occur of:

    (1) Fulfillment of all conditions listed in paragraph (c) of this 

section;

    (2) Your proposed termination date;

    (3) Ninety (90) days after we receive the notice described in Sec. 

611.1240(e); and

    (4) Fifteen (15) days after any reconsideration vote.