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


For Immediate Release
NR 09-13 (08-13-09)
Contact: Michael A. Stokke or Christine Quinn, 703-883-4056
E-mail: info-line@fca.gov
Web site: www.fca.gov
FCA Board Adopts Direct Final Rule to Permit Greater Flexibility in Scheduling Board Meetings

McLEAN, Va., August 13, 2009 — The Farm Credit Administration (FCA) Board today adopted a direct final rule to provide greater flexibility in the scheduling of Board meetings.

Currently, FCA regulations provide that the FCA Board must hold its regularly scheduled meetings on the second Thursday of each month. However, since matters sometimes arise that require Board attention between regularly scheduled meetings, the Board needs more flexibility in scheduling when it meets.

The direct final rule amends the regulation to state that the Board will meet in FCA offices on the second Thursday of each month unless the Board fixes a different time and/or place. The time and place of the new meeting must be announced publicly at least one week before the meeting, unless a majority of the Board determines by a recorded vote that agency business requires that a meeting be called on lesser notice.

The amended rule, which is consistent with the scheduling requirement in the Government in Sunshine Act, gives the Board the flexibility it needs in scheduling meetings.

This rule is issued as a direct final rule without notice and comment because it involves an issue of agency procedure. FCA will publish a notice of effective date in the Federal Register following the required congressional waiting period.

Quarterly Report of the Office of Management Services

In other business, the Board received a quarterly report by the Office of Management Services (OMS). The report discussed the agency’s budget status through June 30, 2009; provided an update on the FCA Information Resources Plan; and reviewed the agency’s Loan Database project. Management also provided an overview of OMS operations, including audit reports and staffing changes within OMS.

Notational Votes

Since the FCA Board meeting on July 9, four notational votes have occurred. Notational votes are actions taken by the FCA Board between Board meetings.
  1. On July 22, the FCA Board determined that it would not object to the issuance by CoBank, ACB, of up to $300 million of Series D noncumulative perpetual preferred stock in exchange for an equivalent amount of outstanding Series A cumulative preferred stock.
  2. On July 22, the FCA Board approved the plan and related disclosure of the Federal Land Bank Association of North Alabama, FLCA, to obtain equalization in 2010 of loan-making powers within its chartered territory in accordance with recent statutory revisions. The Board also approved the chartering of Alabama Farm Credit, PCA, and granted preliminary approval for the consolidation of the North Alabama FLCA with Alabama Farm Credit, PCA, to form Alabama Farm Credit, ACA.
  3. On August 4, the FCA Board approved the formation of a limited liability partnership by and between four Federal Land Credit Associations: AgStar Financial Services, 1st Farm Credit Services, Badgerland Financial, and United FCS. The purpose of the LLP is to collaborate on crop insurance services of the four partner institutions.
  4. On August 7, the FCA Board voted to amend and replace Board Policy #79, Consideration and Referral of Supervisory Strategies and Enforcement Actions, to enhance the agency’s Regulatory Enforcement Committee.
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The Farm Credit Administration is the safety and soundness regulator of the cooperative Farm Credit System (System) and the Federal Agricultural Mortgage Corporation (Farmer Mac). FCA charters, regulates, and examines the 102 banks, associations, and service corporations of the System and Farmer Mac. System institutions make loans to agricultural producers and their cooperatives nationwide. Farmer Mac provides a secondary market for agricultural real estate and rural housing mortgage loans. Members of the FCA Board are Leland A. Strom, Chairman and CEO, and Nancy C. Pellett.

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