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Type: FCA Regulation
PART 615 - FUNDING AND FISCAL AFFAIRS, LOAN POLICIES AND OPERATIONS, AND FUNDING OPERATIONS
Subpart E - Investment Management


615.5132 Investment purposes.
(a) Each Farm Credit bank may hold eligible investments, listed under 615.5140, in an amount not to exceed 35 percent of its total outstanding loans, to comply with its liquidity requirements in 615.5134 615.5134, manage surplus short-term funds, and manage interest rate risk under 615.5180. To comply with this calculation, the 30-day average daily balance of investments is divided by loans. Investments are calculated at amortized cost. Loans are calculated as defined in 615.5131. For the purpose of this calculation, loans include accrued interest and do not include any allowance for loan loss adjustments. Compliance with the calculation is measured on the last day of every month.
(b) The following investments may be excluded when calculating the amount of eligible investments held by the Farm Credit bank pursuant to 615.5132(a):
(1) Eligible investments listed under 615.5140 that are pledged by a Farm Credit bank to meet margin requirements for derivative transactions; and
(2) Any other investments FCA determines are appropriate for exclusion.

[77 FR 66371, Nov. 5, 2012]

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