[Federal Register Volume 71, Number 69 (Tuesday, April 11, 2006)]
[Rules and Regulations]
[Pages 18168-18169]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-3448]


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FARM CREDIT ADMINISTRATION

12 CFR Parts 611, 612, 614, 615, 618, 619, 620, and 630

RIN 3052-AC19


Organization; Standards of Conduct and Referral of Known or 
Suspected Criminal Violations; Loan Policies and Operations; Funding 
and Fiscal Affairs, Loan Policies and Operations, and Funding 
Operations; General Provisions; Definitions; Disclosure to 
Shareholders; Disclosure to Investors in System-Wide and Consolidated 
Bank Debt Obligations of the Farm Credit System; Effective Date

AGENCY: Farm Credit Administration.

ACTION: Final rule; Announcement of effective date.

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SUMMARY: The Farm Credit Administration (FCA) published a final rule 
under parts 611, 612, 614, 615, 618, 619, 620, and 630 on February 2, 
2006 (71 FR 5740). This final rule amends our regulations affecting the 
governance of the Farm Credit System (System). The final rule enhances 
impartiality and disclosure in the election of directors; requires that 
Farm Credit banks and associations establish policies identifying 
desirable director qualifications; requires boards to have a director 
or an advisor who is a financial expert; requires System institutions 
to establish director training procedures; and ensures that boards 
conduct annual self-evaluations. The final rule addresses the term of 
service and removal of outside directors, while requiring all Farm 
Credit banks and associations with assets over $500 million to have at 
least two outside directors. The rule also provides associations with 
small boards an exemption from having at least two outside directors. 
The rule further requires that Farm Credit banks and associations have 
nominating committees and that all System institutions have audit and 
compensation committees. The final rule clarifies the current rule on 
disclosure of conflicts of interest and compensation. The final rule 
does not apply to the Federal Agricultural Mortgage Corporation (FAMC). 
In accordance with 12 U.S.C. 2252, the effective date of the final rule 
is 30 days from the date of publication in the Federal Register during 
which either or both Houses of Congress are in session. Based on the 
records of the sessions of Congress, the effective date of the 
regulation is April 5, 2006.

DATES: Effective Date: The regulation amending 12 CFR parts 611, 612, 
614, 615, 618, 619, 620, and 630 published on February 2, 2006 (71 FR 
5740) is effective April 5, 2006, except for the amendments to 
Sec. Sec.  611.210(a)(2), 611.220(a)(2)(i) and (ii), 611.325, and 
620.21(d)(2) which will be effective April 5, 2007. A reminder of the 
effective date for these sections will be published at a later date.
    Compliance Date: Compliance with board composition requirements 
(Sec. Sec.  611.210(a)(2) and 611.220(a)(2)(i) and (ii)) and 
establishment of bank nominating committees (Sec. Sec.  611.325 and 
620.21(d)(2)) must be achieved 1 year from the effective date of this 
rule. All other provisions require compliance on the effective date of 
this rule.

FOR FURTHER INFORMATION CONTACT: Gary Van Meter, Deputy Director, 
Office of Regulatory Policy, Farm Credit

[[Page 18169]]

Administration, McLean, VA 22102-5090, (703) 883-4232, TTY (703) 883-
4434; or Laura D. McFarland, Senior Attorney, Office of General 
Counsel, Farm Credit Administration, McLean, VA 22102-5090, (703) 883-
4020, TTY (703) 883-4020.

(12 U.S.C. 2252(a)(9) and (10))

    Dated: April 5, 2006.
Roland E. Smith,
Secretary, Farm Credit Administration Board.
[FR Doc. 06-3448 Filed 4-10-06; 8:45 am]
BILLING CODE 6705-01-P