[Federal Register Volume 62, Number 36 (Monday, February 24, 1997)]
[Notices]
[Page 8245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4474]
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FARM CREDIT ADMINISTRATION
Farm Credit Administration Notice of History of the Former
Jackson Farm Credit District
AGENCY: Farm Credit Administration.
ACTION: Notice.
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SUMMARY: The Farm Credit Administration (FCA) is publishing a notice
outlining the history of the former Jackson Farm Credit District and
explains that the Federal Land Bank of Jackson (FLBJ) and the Federal
Land Bank Association of Jackson (FLBAJ) were placed into receivership
and that they no longer exist, that their charters have been canceled,
that the institutions can no longer assert any claims, that the
Receiver subsequently was discharged and released, and that all claims
against the receivership are barred.
FOR FURTHER INFORMATION CONTACT: Jane Virga, Senior Attorney, Office of
General Counsel, Farm Credit Administration, McLean, Virginia 22102-
5090, (703) 883-4071, TDD (703) 883-4444.
SUPPLEMENTARY INFORMATION: Like other lenders, the FLBJ and the FLBAJ
sometimes did not record that borrowers had paid their mortgages in
full. Former borrowers (and their successors) have been unable to
obtain title insurance or convey property when the land records have
indicated, incorrectly, that there was an outstanding mortgage on the
property. Similar problems have also arisen for others that were
associated with the FLBJ and FLBAJ. The Receiver for the FLBJ and the
FLBAJ was discharged and released effective January 30, 1995, and can
no longer provide clarification in such situations. Neither the FCA nor
the Farm Credit Bank of Texas, which purchased the majority of the
assets of the FLBJ and the FLBAJ, has the authority to provide relief
to borrowers whose property was once mortgaged to the FLBJ and FLBAJ or
to others affected by recordation problems involving those
institutions. Therefore, the FCA is providing the following information
in an effort to assist affected borrowers and others in resolving title
and other recordation problems.
The Farm Credit Administration (FCA), a Federal agency established
under the Farm Credit Act of 1971, as amended (Act), 12 U.S.C. 2001 et
seq., regulates and examines a nationwide network of banks,
associations, and related institutions chartered under the Act. The
institutions of the Farm Credit System furnish credit and closely
related services to farmers, ranchers, producers and harvesters of
aquatic products, their cooperatives, and farm-related businesses.
Prior to July 1, 1988, the nation was geographically divided into
12 Farm Credit Districts. Traditionally, each District had one Federal
Land Bank, which made long-term agricultural and rural housing loans
through Federal land bank associations; one Federal Intermediate Credit
Bank, which provided shorter term agricultural loans to eligible
borrowers through production credit associations; and a Bank for
Cooperatives.
The Federal Land Bank of New Orleans was the Federal Land Bank for
one of the Farm Credit Districts prior to September 1, 1984. On
September 1, 1984, the Federal Land Bank of New Orleans moved its
headquarters from New Orleans, Louisiana, to Jackson, Mississippi, and
changed its name to the Federal Land Bank of Jackson (FLBJ).
On May 20, 1988, the FCA determined that statutory grounds existed
for the appointment of a receiver for the FLBJ and the Federal Land
Bank Association of Jackson (FLBAJ), the Association through which the
FLBJ extended long-term credit, under its authority in section 4.12 of
the Act and 12 CFR 611.1156, and placed the FLBJ and FLBAJ into
receivership. A receiver was appointed on the same date. See 53 FR
18812, May 20, 1988.
In 1989, the majority of the long-term loans held by the FLBJ were
sold to the Farm Credit Bank of Texas. In June 1990, the Farm Credit
System Banks, with the exception of the Farm Credit Bank of Spokane,
purchased the remaining assets of the FLBJ.
On January 27, 1995, the FCA determined that all assets of the FLBJ
and FLBAJ (including claims it could assert against others) and claims
against the FLBJ and FLBAJ had been disposed of by the receiver in
accordance with the provisions of FCA regulations and the written
agreement by and between the receiver and the FCA. The FCA therefore
ordered that, effective as of January 30, 1995, all claims of
creditors, stockholders, holders of participation certificates and
other equities, and any other persons and/or entities against the FLBJ
and FLBAJ were forever and completely discharged and released. The FCA
Board also provided that the commencement of any action, the employment
of any process or any other act to collect, recover, or offset any such
claims was barred. Finally, the charters of the FLBJ and FLBAJ were
canceled. See 60 FR 7054, Feb. 6, 1995.
The authority to make long-term loans once exercised by the FLBJ is
now exercised by the Farm Credit Bank of Texas. Short-term lending
authority for the geographic area formerly served by the FLBJ is now
exercised by AgFirst Farm Credit Bank. Neither of these institutions is
the legal successor in interest to the FLBJ or FLBAJ. The corporate
existences of the FLBJ and the FLBAJ were terminated effective January
30, 1995, with the termination of the receivership.
Dated: February 18, 1997.
Floyd Fithian,
Secretary, Farm Credit Administration Board.
[FR Doc. 97-4474 Filed 2-21-97; 8:45 am]
BILLING CODE 6705-01-P