Farm Credit Administration
1501 Farm Credit Drive
McLean, Virginia 22102-5090
For Immediate Release
Contact: Martha Schober or Christine Quinn, 703-883-4056
Web site: www.fca.gov
FCA Issues Guidance on FCS Nominating Committees
McLEAN, Va., March 8, 2007 — The Farm Credit Administration (FCA) Board today approved a revised bookletter providing guidance on Farm Credit System (FCS) bank and association nominating committees. Bookletters are documents issued by FCA officials that communicate the Agency’s position on specific issues or provide guidance on these issues.
The bookletter was originally issued on January 11, 2002. It was revised to incorporate recently adopted FCA regulatory requirements for nominating committees, to provide guidance to FCS banks and associations on organizing their committees, and to review permissible activities related to the nominating committee process. According to FCA regulations, each FCS lending institution must have a nominating committee to nominate stockholders for board of director positions.
The proposed revisions to the bookletter
reaffirm the requirements for impartiality in the nominating committee process,
discuss procedures for identifying and electing members to the nominating committee,
explain the duties, responsibilities, and authorities of the nominating committee members, and
review the permissible involvement of directors, officers, employees, and agents with respect to the nominating committee and the director nomination process.
In other business, the Board received a quarterly report on operations of the FCS Building Association, which manages facilities to house FCA’s headquarters and field offices.
The FCA Board has approved two substantive notational votes since its February 8, 2007, meeting. Notational votes are actions taken by the FCA Board between Board meetings.
On February 12, the Board used its authority under section 615.5210 of FCA’s regulations to allow System institutions to assign a 50-percent risk-weight to certain electric cooperative loans, leases, and other assets for the purpose of meeting regulatory capital requirements. The Board also authorized System institutions to assign a 20-percent risk-weight to certain electric cooperative assets if the assets received one of the two highest ratings by a nationally recognized statistical rating organization. The Board made these changes based on FCA analysis showing that certain electric cooperative loans and other assets carry less risk than many other types of assets. FCA communicated this action through a bookletter issued February 12, 2007.
On February 26, the Board approved the Spring 2007 Unified Agenda of Federal Regulatory and Deregulatory Actions, which includes the Agency’s rulemaking items for the six-month period from April to September, and authorized staff to submit the agenda for publication in the Federal Register. It also approved publication on the FCA Web site of the Spring 2007 Regulatory Performance Plan, which describes all rulemaking items that the Agency has under development or review in 2007.
The Farm Credit Administration is the safety and soundness regulator of the cooperative Farm Credit System. FCA charters, regulates, and examines the 107 banks, associations, and service corporations of the FCS. System institutions make loans to agricultural producers and their cooperatives nationwide. Members of the FCA Board are Nancy C. Pellett, Chairman and CEO; Dallas P. Tonsager; and Leland A. Strom.
Note: FCA news releases are available on the Internet. Access the FCA Web site at www.fca.gov.