Funding and Fiscal Affairs, Loan Policies and Operations, and Funding Operations; FCB Assistance to Associations

Zusammenfassung

In this final rule, we amend the Farm Credit Administration regulation currently entitled ``Additional investments of Farm Credit Banks.'' We remove the requirement that Farm Credit Banks and agricultural credit banks (collectively referred to as banks) obtain our prior approval before making certain transfers of capital to affiliated associations. Instead, we require banks to take into account certain considerations, and to notify bank shareholders and us, before making such transfers. This amendment benefits banks and their associations because it provides clear guidelines and streamlined procedures for banks to follow when they wish to transfer capital to associations. It also enables them to transfer the capital in a more timely manner.