Title: FINAL RULE; CORRECTION--Eligibility and Scope of Financing; Loan Policies and Operations; Funding and Fiscal Affairs, Loan Policies and Operations, and Funding Operations; Coordination; General Provisions; Definitions; Effective Date--12 CFR Parts 613, 614, and 619
Issue Date: 07/16/1990
Agency: FCA
Federal Register Cite: 55 FR 28885
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FARM CREDIT ADMINISTRATION

12 CFR Parts 613, 614, and 619

RIN 3052-AA94

Eligibility and Scope of Financing; Loan Policies and Operations; Funding and Fiscal Affairs, Loan Policies and Operations, and Funding Operations; Coordination; General Provisions; Definitions


ACTION: Final rule; correction.

SUMMARY: The Farm Credit Administration (FCA) is correcting errors that appeared in the final rule that amended the regulation setting forth lending authorities and lending requirements for Farm Credit banks and associations, reconciling, where necessary the authorities of institutions created under the restructuring provisions of the Agricultural Credit Act of 1987.

The final rule appeared in the Federal Register on June 19, 1990 (55 FR 24861).

FOR FURTHER INFORMATION CONTACT:

Dennis K. Carpenter, Senior Credit Specialist, Financial Analysis and Standards Division, Farm Credit Administration, McLean, Virginia 22102-5090, (703) 883-4498,
or
Dorothy J. Acosta, Senior Attorney, Office of General Counsel, Farm Credit Administration, McLean, Virginia 22102-5090, (703) 883-4020, TDD 883-4444.

SUPPLEMENTARY INFORMATION:
In preparing the final rule for publication in the Federal Register, five errors were inadvertently made.

PART 613 -- ELIGIBILITY AND SCOPE OF FINANCING

Subpart D -- Eligibility To Borrow From Banks for Cooperatives and Agricultural Credit Banks

1. On page 24879, first column, four lines from the bottom, in 613.3110(b)(2)(i), the word "for" was incorrectly included. Paragraph (b)(2)(i) of 613.3110 is corrected to read as follows:

613.3110 Domestic lending.

* * * * *

(b) * * *

(2)(i) Requirements for a higher percentage of voting control by farmers, ranchers, producers or harvesters of aquatic products, or eligible cooperatives than required by paragraph (b)(1) of this section may be established by resolution of the bank's board of directors with respect to any type of cooperative. Such higher voting control percentage requirements shall be applied uniformly and consistently to any type of cooperative so designated in the bank board resolution.

* * * * *

2. On page 24879, third column, thirteen lines from the top, in 613.3120(b), the words "with respect" were omitted. Paragraph (b) of 613.3120 is corrected to read as follows:

613.3120 International lending.

* * * * *

(b) A party with respect to a transaction with a voting stockholder of the bank for the import or export of agricultural commodities, farm supplies, or aquatic products through purchases, sales, or exchanges, that substantially benefits the stockholder; or

* * * * *

PART 614 -- LOAN POLICIES AND OPERATIONS

Subpart E -- Loan Terms and Conditions

3. On page 24885, first column, eleven lines from the bottom, in the introductory text of 614.4231(a)(2), the letter "r" was dropped from the word "purchase." Paragraph (a)(2) introductory text of 614.4231 is corrected to read as follows:

614.4231 Certain seasonal commodity loans to cooperatives

(a) * * *

(2) Hedge means an enforceable contract with a reliable third party to deliver at a designated point of delivery, at a designated time or within a designated period of time, commodities of specified quality and quantity at a specified price. Seller options will not generally invalidate the hedge unless they are of such a nature as to invalidate the entire contract. If options are provided to the purchaser under the contract, the hedge value of the contract shall be determined on the basis of the most pessimistic combination of options. The Commodity Credit Corporation's (CCC) general offer to purchase may be accepted as a valid hedge if loan advance, expiration and maturity dates conform with CCC established availability; if maturity dates and loan agreement restrictions insure compliance with CCC quality and crop year standards; and if the following conditions exist:

* * * * *

4. On page 24885, third column, nineteen lines from the bottom, in 614.4233(b), the words "countries. Exceptions may be made where a prospective borrower has had a" were omitted. Paragraph (b) of 614.4233 is corrected to read as follows:

614.4233 International loans.

* * * * *

(b) The borrower's obligations shall be guaranteed or insured against default under such policies as are available in the United States and other countries. Exceptions may be made where a prospective borrower has had a long-standing successful business relationship with an eligible cooperative borrower or an eligible cooperative which is not a borrower if the prospective borrower has a high credit rating as determined by the bank.

* * * * *

PART 619 -- DEFINITIONS

5. On page 24888, third column, five lines from the bottom, in 619.9060, the word "for" was incorrectly included. Section 619.9060 is corrected to read as follows:

619.9060 Bank for cooperatives.

Bank operating under title III of the Act, including the National Bank for Cooperatives, individual and regional banks for cooperatives and agricultural credit banks.

Dated: July 10, 1990.

Curtis M. Anderson,

Secretary, Farm Credit Administration Board.

[FR Doc. 90-16505 Filed 7-13-90; 8:45 am]

BILLING CODE 6705-01-M