|News Release||Farm Credit Administration|
1501 Farm Credit Drive
McLean, Virginia 22102-5090
For Immediate Release
NR 08-20 (12-11-08)
Contact: Michael Stokke or Christine Quinn, 703-883-4056
Web site: www.fca.gov
FCA Board Approves Final Rule to Adjust Civil Money Penalties
McLEAN, Va., December 11, 2008 — The Farm Credit Administration (FCA or Agency) Board today approved a final rule implementing an inflation adjustment for civil money penalties issued by the Agency.
The Federal Civil Penalties Inflation Adjustment (FCPIA) Act of 1996 requires all federal agencies with the authority to impose civil money penalties to evaluate the penalties periodically to ensure that they continue to maintain their effectiveness in deterring violations of law and regulation. The FCPIA Act provides an inflation adjustment formula, which is based on the percentage increase in the Consumer Price Index.
This rule will be 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.
In other business, the Board approved moving the April Board meeting from April 9 to April 16. This change does not affect the schedule for subsequent monthly meetings.
The Board received a quarterly report from the FCS Building Association (FCSBA) on its financial reports for the period ending September 30, 2008. The FCSBA provides the facilities and related services for FCA and its regional offices. While the FCSBA is owned by the banks of the System, the FCA Board oversees the FCSBA’s activities.
Since the FCA Board meeting on November 13, two notational votes have occurred. Notational votes are actions taken by the FCA Board between Board meetings.
On November 17, the FCA Board approved the FCS Building Association’s fiscal year 2009 budget, annual operating plan, and assessments of the Farm Credit System banks.
On November 19, the Board approved a temporary waiver of FCA regulation § 652.35 in order to permit the Federal Agricultural Mortgage Corporation to recognize investments in certain auction rate certificates (ARCs) as eligible investments. This waiver only applies to ARCs that are subject to a liquidity-enhancing arrangement.
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 104 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; Nancy C. Pellett; and Dallas P. Tonsager.
Note: FCA news releases are available on the Web at www.fca.gov.