[Federal Register Volume 68, Number 76 (Monday, April 21, 2003)]
[Notices]
[Page 19539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-9711]


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FARM CREDIT ADMINISTRATION


Market Access Agreement

AGENCY: Farm Credit Administration (FCA).

ACTION: Notice of approval of the draft amended and restated market 
access agreement.

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SUMMARY: The Farm Credit Administration (FCA) announces it has approved 
the Draft Amended and Restated Market Access Agreement (Draft Restated 
MAA) proposed to be entered into by all of the banks of the Farm Credit 
System (System) and the Federal Farm Credit Banks Funding Corporation 
(Funding Corporation). The Draft Restated MAA sets forth the rights and 
responsibilities of each of the parties when the condition of a bank 
falls below pre-established financial performance thresholds.

FOR FURTHER INFORMATION CONTACT: 

Samuel R. Coleman, CFA, Senior Policy Analyst, Office of Policy and 
Analysis, Farm Credit Administration, McLean, VA 22102-5090, (703) 883-
4498, TTY (703) 883-4434,
 or
James M. Morris, Senior Counsel, Office of General Counsel, Farm Credit 
Administration, McLean, VA 22102-5090, (703) 883-4020, TTY (703) 883-
4020.

SUPPLEMENTARY INFORMATION: The FCA published the Draft Restated MAA in 
the Federal Register on January 15, 2003 (68 FR 2037) with a request 
for public comment. No public comments were received on the Draft 
Restated MAA.
    The Draft Restated MAA is an update to the original Market Access 
Agreement (MAA) approved by the FCA on August 17, 1994, and published 
in the Federal Register on August 23, 1994 (59 FR 43344). The Draft 
Restated MAA provides that it will go into effect after certain 
conditions precedent have been satisfied, including FCA's approval of, 
and the Farm Credit System Insurance Corporation's (FCSIC) expression 
of its support for, the Draft Restated MAA. The FCA announces it has 
approved the Draft Restated MAA.
    System banks and the Funding Corporation entered into the original 
MAA on September 1, 1994, to help control the risk by outlining each 
party's respective rights and responsibilities in the event the 
condition of a System bank fell below certain financial performance 
thresholds. As part of the original MAA, System banks and the Funding 
Corporation agreed to periodic reviews of the terms of the MAA to 
consider whether any amendments were appropriate. The Draft Restated 
MAA updates the original MAA and provides for more stringent financial 
performance thresholds on each System bank. Both the original MAA and 
Draft Restated MAA establish financial performance thresholds at which 
conditions are placed on the activities of a bank or a bank's access to 
participation in Systemwide and consolidated obligations is restricted.
    FCA published the Draft Restated MAA in the Federal Register on 
January 15, 2003, with a request for public comments by February 14, 
2003. No comments were received. Having given the public notice and the 
opportunity to comment, the FCA Board hereby approves the Draft 
Restated MAA pursuant to sections 4.2(c), 4.2(d) and 4.9(b)(2) of the 
Farm Credit Act of 1971, as amended. The FCA's approval of the Draft 
Restated MAA is conditioned on the board of directors of each bank and 
the Funding Corporation approving the Draft Restated MAA. Neither the 
Draft Restated MAA, when it becomes effective, nor FCA approval of it 
shall in any way restrict or qualify the authority of the FCA or the 
FCSIC to exercise any of the powers, rights, or duties granted by law 
to the FCA or the FCSIC. Finally, the FCA retains the right to modify 
or revoke its approval of the Draft Restated MAA at any time.

    Dated: April 15, 2003.
Jeanette C. Brinkley,
Secretary, Farm Credit Administration Board.
[FR Doc. 03-9711 Filed 4-18-03; 8:45 am]
BILLING CODE 6705-01-P