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News ReleaseFarm Credit Administration
1501 Farm Credit Drive
McLean, Virginia 22102-5090


Printer-friendly version => NR_13-07_05-09-13.pdfNR_13-07_05-09-13.pdf

Attachment - Related Fact Sheet => FactSheetFinalRuleUBEs.pdfFactSheetFinalRuleUBEs.pdf


For Immediate Release
NR 13-07 (05-09-13)
Contact: Mike Stokke or Christine Quinn, 703-883-4056
E-mail: info-line@fca.gov
Website: www.fca.gov

FCA Board Approves Final Rule on Use of Unincorporated Business Entities
McLEAN, Va., May 9, 2013 — At its monthly meeting today, the Farm Credit Administration Board approved a final rule that would create a regulatory framework for Farm Credit System (System) institutions that want to use unincorporated business entities organized or chartered under state law. The entities may be used for the following limited business purposes:

Although the rule applies to System institutions that organize unincorporated business entities for the express purpose of investing in RBICs, it does not apply to unincorporated businesses that are created to serve as RBICs.

The rule was proposed on Sept. 13, 2012, and we received nine comment letters during the 60-day comment period. The final rule reflects concerns expressed in these letters. For more information about the final rule, see the related rulemaking fact sheet.

The final rule will become effective 30 days after publication in the Federal Register during which either body of Congress is in session. Notice of the effective date will be published in the Federal Register.

Reports
In other business, the Board received an update from the Director of FCA’s Equal Employment Opportunity and Diversity program. According to the report, minority representation has increased to 22.2 percent in FCA’s workforce, which is a 17-year high, and FCA will continue to work toward increasing its workforce diversity. The report also shared specific initiatives that System institutions are taking to increase the diversity of their workforce and customer base.

During the closed session of the meeting, the Board received a quarterly report from the Office of Secondary Market Oversight.

Notational Votes
Since the April 11 FCA Board meeting, five notational votes have occurred. Notational votes are actions the FCA Board takes between Board meetings.
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The Farm Credit Administration is the safety and soundness regulator of the cooperative Farm Credit System and the Federal Agricultural Mortgage Corporation (Farmer Mac). FCA charters, regulates, and examines the 94 banks, associations, service corporations and special-purpose entities of the Farm Credit System. The System makes loans to agricultural producers and their cooperatives nationwide. It includes Farmer Mac, which provides a secondary market for agricultural real estate loans, rural housing mortgage loans, and certain rural utility loans. Members of the FCA Board are Jill Long Thompson, Board Chair and CEO; Kenneth A. Spearman; and Leland A. Strom.

Note: FCA news releases are available on the Web at www.fca.gov.