### Question
How does FARM CREDIT SYSTEM define walkaway clause?


### Answer
Under *12 U.S.C. § 2277a*, **walkaway clause** is defined as:

> any provision in a qualified financial contract that suspends, conditions, or extinguishes a payment obligation of a party, in whole or in part, or does not create a payment obligation of a party that would otherwise exist—


(I) solely because of—


(aa) the status of the party as a nondefaulting party in connection with the insolvency of a System institution that is a party to the contract

#### Citation:
  - *12 U.S.C. § 2277a*
  - Heading: **CHAPTER 23-FARM CREDIT SYSTEM > SUBCHAPTER V-FARM CREDIT ADMINISTRATION ORGANIZATION > Part E-Farm Credit System Insurance Corporation**

