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Rural Community Investments - Proposed Rule




     This rule will now allow a quasi-government agency to make investments in rural communities which effectively ends up being direct funding of community improvements by the Federal Government.  Since the FCS institutions do not pay taxes the private banking sector will be eliminated from these investments since they will not be able to compete with the low interest yields.  The private sector is serving our rural comminities adequately and this expansion of FCS lending authority is beyond the congressional mandate.

Scott L. Petrich, Vice President
The Citizens First National Bank
1821 North Lake Avenue
Storm Lake, IA 50588-1227
Phone:  712-732-5440
Fax:    712-213-1128
Email:  spetrich@citizensfnb.com