[Federal Register Volume 59, Number 247 (Tuesday, December 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31640]
[[Page Unknown]]
[Federal Register: December 27, 1994]
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FARM CREDIT ADMINISTRATION
[BM-13-OCT-94-02]
Policy Statement Concerning Official Names of Farm Credit System
Institutions
AGENCY: Farm Credit Administration.
ACTION: Policy statement.
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SUMMARY: The Farm Credit Act of 1971 (1971 Act), as amended, gives the
Farm Credit Administration (FCA) broad powers to issue and amend the
charters of Farm Credit System (System) institutions and regulate the
exercise of their powers. The FCA Board has concluded that institutions
should have the maximum degree of flexibility possible in proposing
official names for their institutions and should not have to use trade
names that are more commonly accepted than their official names. At the
same time, the official name of an institution should always be one
that can be readily identified by the public as belonging to an
institution affiliated with the System. In addition, there must be a
simple way for the public and the FCA to be able to identify the name
as belonging to one of the various types of institutions regulated by
the FCA. To reaffirm, by formal FCA Board Action, the continuing
validity of the policy statement which requires Farm Credit Banks and
associations to include as a part of their official name their
statutory or regulatory designation or the appropriate acronym, the FCA
Board has reaffirmed its policy statement on Farm Credit Institution
Names adopted by the FCA Board and stated in the preamble to the
Federal Register notice of final rule published December 15, 1988 at 53
FR 50387-50388.
EFFECTIVE DATE: October 13, 1994.
FOR FURTHER INFORMATION CONTACT: Floyd Fithian, Acting Secretary to the
Farm Credit Administration Board, Farm Credit Administration, McLean,
Virginia 22102-5090, (703) 883-4000, TDD (703) 883-4444.
SUPPLEMENTARY INFORMATION: The text of the Board's policy statement
concerning official names of Farm Credit System institutions is set
forth below in its entirety:
FCA Board Action on Policy Statement Concerning, Official Names of
Farm Credit System Institutions, BM-13-Oct-94-02, FCA-PS-63.
Effective Date: October 13, 1994.
Effect on Previous Action: Reaffirmation of the Policy Statement on
Farm Credit Institution Names adopted by the FCA Board and stated in
the preamble to the Federal Register notice of final rule December 15,
1988 at 53 FR 50387-50388.
Source of Authority: Farm Credit Act of 1971, as amended, sections
1.3(b), 2.0(b)(8), 2.10(c), 3.0, 5.17(a)(2)(A), 7.0, 7.6(a), 7.8(a); 12
CFR part 611.
The FCA Board hereby reaffirms the policy statement on Farm Credit
Institution names adopted by the FCA Board and stated in the preamble
to the Federal Register Notice of final rule published December 15,
1988 at 53 FR 50387-50388.
Purpose: To ensure that the public can identify the name of the
Farm Credit institution as belonging to one of the various types of
institutions regulated by the Farm Credit Administration (FCA). To
allow the maximum flexibility possible for Farm Credit Banks and
associations in proposing official names for their institutions. To
ensure that the various types of institutions can be easily identified
by the FCA for regulation and examination purposes.
Objective: To reaffirm, by formal FCA Board Action, the continuing
validity of the policy statement which was first adopted in 1988 and
which requires Farm Credit Banks and associations to include as a part
of their official name their statutory or regulatory designation or the
appropriate acronym. Also, to ensure that the official names recorded
in all charters and charter amendments that are requested by the Farm
Credit Banks and associations and issued by the FCA follow the policy
specifications.
Operating Principles: With the exception of the provisions of
section 413 of the Agricultural Credit Act of 1987 (1987 Act) regarding
the National Bank for Cooperatives, the 1987 Act and the Farm Credit
Act of 1971 as amended (the Act), do not expressly require any of the
various types of banks and associations to use a specific name in its
official title. However, prior to the 1987 Act, the Act referred to
each of the different banks and associations by using specific names
such as ``production credit association,'' ``Federal land bank
association,'' and ``bank for cooperatives.'' Based on these statutory
references, the FCA, in granting charters to institutions, has required
that the official names of institutions include the appropriate name
used in the statute. Thus, for instance, associations chartered under
title II of the Act were required to use ``production credit
association'' as part of their official name.
Enactment of the 1987 Act, particularly the provisions authorizing
the merger of unlike banks and associations, has caused the FCA to
reevaluate its policies regarding the official names of institutions.
The FCA Board has concluded that institutions should have the maximum
flexibility possible in proposing official names for their
institutions. At the same time, the official name of an institution
should always be one that can be readily identified as belonging to one
of the various types of institutions regulated by the FCA. For
instance, one must be able to know whether a bank can lend to
cooperatives, like a bank for cooperatives, or whether an association
can only make short-term loans, like a PCA.
The FCA Board has now determined that it will issue charters for
institutions which contain the statutorily sanctioned names
``production credit association,'' Federal land bank association,''
``bank for cooperatives,'' and ``Farm Credit Bank.'' If an institution
requests an official name that does not incorporate one of those terms,
the official name must include the acronym for the appropriate term
after the name. For instance, the Production Credit Association of
North Central Jersey could request a change in its name to ``Farm
Credit Services of North Central Jersey, PCA.'' The FCA Board will also
issue charters for institutions that contain the name ``agricultural
credit association,'' for an association formed by the merger of a
production credit association and a Federal land bank association, the
name ``Federal land credit association,'' for a Federal land bank
association that has direct lending authority, and the name
``agricultural credit bank,'' for a bank formed by the merger of a Farm
Credit Bank and a bank for cooperatives. If such an institution
requests an official name that does not include the appropriate term,
the name must be followed by the acronym ``ACA,'' ``FLCA,'' or ``ACB.''
For instance, a Federal land bank association that has acquired direct
lending authority could use names such as ``Farm Credit of Central
City, FLCA,'' or ``Federal Land Bank Association of Central City,
FLCA.''
Delegation of Authority: Any delegation of authority relative to
approval of or changes to Farm Credit institution names will be covered
under FCA Board Policy Statement on Rules for the Transaction of
Business and Operational Responsibilities of the FCA Board, No. FCA-PS-
58 as adopted 07-FEB-94 and as it may be amended.
Reporting Requirements: The Corporate Affairs Division (CAD) will
provide to the Office of the Board a copy of any approved charter
amendment request. The CAD will also summarize all charter amendments
and charter issuances in its quarterly Corporate Restructuring report.
Dated this 13th day of October, 1994 by order of the Board.
Dated: December 20, 1994.
Floyd Fithian,
Acting Secretary, Farm Credit Administration Board.
[FR Doc. 94-31640 Filed 12-23-94; 8:45 am]
BILLING CODE 6705-01-P
