[Federal Register Volume 65, Number 91 (Wednesday, May 10, 2000)]
[Notices]
[Pages 30117-30118]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-11686]


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FARM CREDIT ADMINISTRATION

[BM-3-MAY-00-04]


Official Names of Farm Credit System Institutions

AGENCY: Farm Credit Administration.

ACTION: Policy statement.

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SUMMARY: The Farm Credit Administration (FCA) Board recently adopted a 
policy statement amending the FCA's policy on official names of Farm 
Credit System (FCS or System) institutions. FCA's objective was to 
ensure that the public can identify a System bank, association, or 
service corporation as belonging to the FCS and is not misled by the 
name the institution uses. The new policy expands the methods by which 
institutions may identify themselves as members of the System and 
adopts a policy for trade names and names of subsidiaries.

EFFECTIVE DATE: May 3, 2000.

FOR FURTHER INFORMATION CONTACT:   
William G. Dunn, Financial Analyst, Office of Policy and Analysis, Farm 
Credit Administration, McLean, VA 22102-5090, (703) 883-4498, TDD (703) 
883-4444,
      or
Beth Salyer, Attorney-Advisor, Office of General Counsel, Farm Credit 
Administration, McLean, VA 22102-5090, (703) 883-4020, TDD (703) 883-
4444.


SUPPLEMENTARY INFORMATION: The FCA Board adopted a policy statement 
amending the FCA's policy on official names of FCS institutions. The 
policy statement, in its entirety, follows:

Official Names of Farm Credit System Institutions; FCA-PS-78 [BM-
03-MAY-00-04]

    Effective Date: May 3, 2000.
    Effect on Previous Action: Supercedes FCA-PS-63 [NV-96-22] 05/30/
96.
    Source of Authority: 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) of the Farm Credit Act of 1971, as 
amended; 12 CFR part 611.
    The Farm Credit Administration (FCA or Agency) Board hereby adopts 
the following policy statement:

Objective

    Our objective is to ensure that the public can identify a Farm 
Credit System (System) bank, association, or service corporation as 
belonging to the Farm Credit System and is not misled by the name the 
institution uses. We also believe that Farm Credit System institutions 
should have more flexibility in proposing official names for their 
institutions. Our prior policy required institutions' official names to 
include either a statutory or regulatory designation, or its 
corresponding acronym. The new policy expands the methods by which 
institutions may identify themselves as members of the System and 
adopts a policy for trade names and names of subsidiaries.

Official Names

    The FCA Board will approve an official name for a Farm Credit 
System bank,\1\ association, or service corporation that meets the 
following two requirements:
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    \1\ Farm Credit System bank includes Farm Credit Banks, Banks 
for Cooperatives, and Agricultural Credit Banks.
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     The name includes appropriate identification of the 
institution as a System institution; and
     The name is not misleading or inappropriate.
    Appropriate identification means the name contains either: (1) The 
relevant statutory or regulatory designation, or

[[Page 30118]]

its corresponding acronym, or (2) other appropriate identification as a 
System institution. Relevant statutory and regulatory designations, and 
their corresponding acronyms, are as follows:
     Agricultural Credit Bank or ACB.
     Bank for Cooperatives or BC.
     Farm Credit Bank or FCB.
     Agricultural Credit Association or ACA.
     Production Credit Association or PCA.
     Federal Land Credit Association or FLCA.
     Federal Land Bank Association or FLBA.
    Other appropriate identification as a System institution includes 
the following:
     Farm Credit Services.
     Farm Credit.
     FCS.
     A member of the Farm Credit System.
    Misleading names are those that a reasonable person might find 
confusing. For example, we would not issue a charter to an institution 
requesting a name that is the same as or similar to that of an existing 
institution because the public might find this confusing. Merely 
avoiding identical names is not enough; to minimize confusion, a 
proposed name must sufficiently distinguish an institution from other 
institutions. If the Agency had approved a charter for an institution 
using MyTown, ACA, as its official name, it would not issue a charter 
for an institution proposing ACA of MyTown or MyTown Farm Credit 
Services, ACA, as its official name. Nor would we issue a charter with 
the phrase ``farm credit association'' as part of the official name, 
because the inevitable use of the acronym ``FCA'' would be confused 
with the name of the Agency. Also, we would not approve a name for an 
institution that could cause the public to confuse that institution's 
authorities and services with those of a commercial bank, thrift 
institution, or credit union. For example, we would not issue a charter 
to a System institution requesting the term ``national bank'' in its 
official name because this could cause confusion regarding the services 
the institution may offer.

Trade Names

    A System institution may use a trade name. The trade name may not 
be misleading. If an institution uses a trade name, it must use both 
the official and trade names in all written communications.

Related Issues

    If an ACA and its subsidiaries operate under substantially 
different names, they must clearly identify the parent/subsidiary 
relationship in all written communications. For example, if MyTown, 
PCA, is a subsidiary of EveryTown, ACA, the PCA must identify itself as 
a subsidiary of the parent ACA in its written communications.
    Please note that while the FCA cannot reserve names, the Patent and 
Trademark Office will register names under certain conditions. When 
applying for a name change or new charter, System institutions should 
submit a statement indicating whether they have applied for a trademark 
in that name.
    This statement addresses only FCA's policy. Other laws, such as 
Federal or state trademark laws, may apply. Institutions should ensure 
that their official and trade names do not infringe the trademarks or 
service marks of other companies. Institutions may wish to consult 
legal counsel to determine whether their proposed names could be 
challenged or protected under state or federal law.

    Dated this 3rd day of May, 2000 by order of the Board.
    Dated: May 4, 2000.
Nan P. Mitchem,
Acting Secretary, Farm Credit Administration Board.
[FR Doc. 00-11686 Filed 5-9-00; 8:45 am]
BILLING CODE 6705-01-P