Loan Policies and Operations; Other Financing Institutions

[[Page 37230]]

FARM CREDIT ADMINISTRATION

12 CFR Part 614

RIN 3052-AB67

Loan Policies and Operations; Other Financing Institutions

AGENCY: Farm Credit Administration.

ACTION: Advance notice of proposed rulemaking; comment period

extension.

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SUMMARY: On May 17, 1996, the Farm Credit Administration (FCA)

published for public comment an Advance Notice of Proposed Rulemaking

(ANPRM) concerning potential revisions to the regulations in subpart P

of part 614 that govern the funding and discount relationship between

Farm Credit System (Farm Credit, FCS, or System) banks that operate

under title I of the Farm Credit Act of 1971, as amended (Act), and

non-System other financing institutions (OFIs). See 61 FR 24907, May

17, 1996. The comment period expired on July 16, 1996. In order to

allow interested parties additional time to respond, the FCA extends

the comment period until August 30, 1996, and invites public comment on

the questions in the ANPRM.

DATES: Written comments should be received on or before August 30,

1996.

ADDRESSES: Comments may be mailed or delivered to Patricia W. DiMuzio,

Associate Director, Regulation Development, Office of Examination, Farm

Credit Administration, 1501 Farm Credit Drive, McLean, Virginia 22102-

5090 or sent by facsimile transmission to the FAX number at (703) 734-

5784. Copies of all communications received will be available for

review by interested parties in the Office of Examination, Farm Credit

Administration.

FOR FURTHER INFORMATION CONTACT:

Eric Howard, Policy Analyst, Regulation Development, Office of

Examination, Farm Credit Administration, McLean, VA 22102-5090, (703)

883-4498,

or

Richard A. Katz, Senior Attorney, Regulatory Enforcement Division,

Office of General Counsel, Farm Credit Administration, McLean, VA

22102-5090, (703) 883-4020, TDD (703) 883-4444.

SUPPLEMENTARY INFORMATION: On May 17, 1996, the FCA published an ANPRM

in the Federal Register that sought information and guidance from the

public about how to revise regulations in subpart P of part 614 that

govern the funding and discount relationship between System banks that

operate under title I of the Farm Credit Act of 1971, as amended (Act),

and non-System OFIs. Farm Credit Banks (FCBs) and agricultural credit

banks (ACBs) are authorized to fund and discount certain short- and

intermediate-term loans for non-System lenders, such as commercial

banks, savings associations, credit unions, trust companies,

agricultural credit corporations, and other agricultural and aquatic

lenders as part of their mission to finance agriculture, aquaculture,

and other specified rural credit needs. External developments, such as

the consolidation of the commercial banking industry, the advent of

interstate banking and branching, the gradual reduction of Federal

assistance to agriculture and rural communities, and the increased

interest of non-System financial institutions in additional sources of

funding and liquidity may necessitate revisions to the regulations in

subpart P of part 614 so that System banks can fulfill their obligation

to meet demands in rural communities for short- and intermediate-term

credit. The purpose of any future rulemaking would be to ensure that

eligible and creditworthy farmers, ranchers, aquatic producers and

harvesters, processing and marketing operators, farm-related

businesses, and rural homeowners will continue to have access to

affordable, dependable, and stable short- and intermediate-term credit

through both System and non-System lenders. Specifically, the ANPRM

sought comments regarding the FCA's OFI regulations and how they may be

revised to better implement the statutory provisions. Several

interested parties have advised the FCA that they need additional time

to prepare thoughtful responses to the questions in the ANPRM. For this

reason, the FCA hereby extends the comment period until August 30,

1996.

Dated: July 11, 1996.

Floyd Fithian,

Secretary, Farm Credit Administration Board.

[FR Doc. 96-18132 Filed 7-16-96; 8:45 am]

BILLING CODE 6705-01-P