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Informational Memorandum
Subject:Compliance with the Consolidated and Further Continuing Appropriations Act, 2012
Date of Memorandum:01/25/2013
Expiration Date:
Office:Office of Regulatory Policy
Signed By:Van Meter, Gary
FCA Contact Person:Van Meter, Gary
Contact Phone:703-883-4026
List of Attachments:


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January 25, 2013


To: Chairman, Board of Directors
Chief Executive Officer
All Farm Credit System Institutions

From: Gary K. Van Meter, Director
Office of Regulatory Policy

Subject: Compliance with the Consolidated and Further Continuing Appropriations Act, 2012

Sections 738 and 739 of the Consolidated and Further Continuing Appropriations Act, 2012 (Pub. L. No. 112-55),1 prohibit Federal agencies from using funds made available by Pub. L. No. 112-55 for entering certain agreements with, making grants, or providing loans or loan guarantees to, any “corporation” that has 1) been convicted (or had an officer or agent acting on behalf of the corporation convicted) of a felony crime within 24 months of seeking Federal funds, or 2) certain unpaid Federal tax liabilities, respectively.

The Pub. L. No. 112-55 legislation provides no definition of which corporations are subject to the section 738 and 739 prohibitions. The Farm Credit System (System) is a Government-sponsored enterprise (GSE) that includes cooperative structured lending institutions that are corporate bodies and Federal instrumentalities chartered by the FCA.2 Although the System is a GSE of cooperative lending entities, we do not believe this prevents a System institution from being considered a “corporation” for purposes of Pub. L. No. 112-55.

If you have questions, please contact Gary K. Van Meter, Director, Office of Regulatory Policy, at (703) 883-4026 (vanmeterg@fca.gov).

1 Pub. L. No. 112-55, 125 STAT. 552 (HR 2112, signed November 18, 2011).
2 See, for example, sections 1.5, 2.0(b)(7), 2.2, 2.10(b)(4), 2.12, 3.1, and 4.9 of the Farm Credit Act of 1971, as amended.