[Federal Register Volume 71, Number 216 (Wednesday, November 8, 2006)]
[Rules and Regulations]
[Pages 65383-65387]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-18841]


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FARM CREDIT ADMINISTRATION

12 CFR Parts 611, 612, 613, 614, and 615

RIN 3052-AC15


Organization; Standards of Conduct and Referral of Known or 
Suspected Criminal Violations; Eligibility and Scope of Financing; Loan 
Policies and Operations; Funding and Fiscal Affairs, Loan Policies and 
Operations, and Funding Operations; Regulatory Burden

AGENCY: Farm Credit Administration (FCA).

ACTION: Final rule.

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SUMMARY: This final rule is intended to reduce regulatory burden on the 
Farm Credit System (FCS or System) by repealing or revising five 
regulations. The final rule also corrects eight outdated and erroneous 
cross-references in five regulation sections. These revisions provide 
System banks and associations with greater flexibility concerning stock 
ownership of service corporations, employee reporting under standards 
of conduct rules, domestic lending to cooperatives, and real property 
evaluations for certain business loans.

DATES: Effective Date: These regulations will be effective 30 days 
after publication in the Federal Register during which either or both 
houses of Congress are in session. We will publish a notice of the 
effective date in the Federal Register.

FOR FURTHER INFORMATION CONTACT: Jacqueline R. Melvin, Associate Policy 
Analyst, Office of Regulatory Policy, Farm Credit Administration, 
McLean, VA 22102-5090, (703) 883-4414, TTY (703) 883-4434; or Howard I. 
Rubin, Senior Counsel, Office of General Counsel, Farm Credit 
Administration, McLean, VA 22102-5090, (703) 883-4020, TTY (703) 883-
4020.

SUPPLEMENTARY INFORMATION:

I. Objective

    The objective of this rule is to reduce regulatory burden by 
repealing and/or revising regulations and correcting outdated and 
erroneous regulations.

II. Background

    On March 28, 2006, we invited the public to comment on five 
proposed changes to our regulations. See 71 FR 15343. The comment 
period was scheduled to close on May 30, 2006. However, on May 26, 
2006, the Independent Community Bankers of America requested that the 
FCA extend

[[Page 65384]]

the comment period. On June 15, 2006, we reopened the comment period 
until July 17, 2006. See 71 FR 34549.
    We also published a separate notice in the Federal Register on 
March 28, 2006, explaining how we addressed or will address comments we 
received as part of the 2003 solicitation, including the reasons why we 
are not changing certain regulations at this time. See 71 FR 15413. Our 
proposed rule addressed the following issues:
    A. Service corporations. Clarifying that service corporations are 
not required to offer stock to every System bank and association.
    B. Standards of conduct. Allowing new System employees to report to 
the Standards of Conduct official within 5 days after starting 
employment.
    C. Cooperative eligibility. Eliminating the 10-percent limitation 
on dividends in determining a cooperative's eligibility to borrow from 
a title III System lender.
    D. Appraisal requirements. Eliminating a requirement for a Uniform 
Standards of Professional Appraisal Practices (USPAP) compliant real 
property appraisal for business loans between $250,000 and $1 million.
    E. Bankers' acceptance financing. Repealing an outdated regulation 
pertaining to the purchase of bankers' acceptances by the Federal Farm 
Credit Banks Funding Corporation from an agricultural credit bank.
    We also proposed to correct outdated and erroneous cross-references 
affecting two regulations governing title III lending.

III. Comments Received

    We received 275 comment letters. Overall, supporters aligned with 
the System commented favoring our five proposed amendments, while those 
aligned with non-System lenders commented opposing two of our proposed 
amendments. Additionally, our proposed amendment pertaining to 
cooperative eligibility rules were supported by three independent 
groups, the National Council of Farm Credit Cooperatives, the Minnesota 
Association of Cooperatives, and the Iowa Institute for Cooperatives.
    Comments from five System banks, 59 System associations and the 
Farm Credit Council, on behalf of its members, urged FCA to move 
forward on its five proposed amendments. Also, in response to our 2003 
regulatory burden solicitation, some System supporters asked that we 
implement changes on all regulations for which we received comments. As 
stated in section II above, we addressed the 2003 solicitation comments 
in a separate notice in the Federal Register on March 28, 2006.
    Comments from 129 commercial banks, eight individuals and, on 
behalf of their members, the Independent Community Bankers of America, 
the Independent Bankers of Colorado, the Independent Bankers of 
Minnesota, and the Community Bankers of Wisconsin opposed our proposed 
amendments to eliminate: (1) The 10-percent dividend limitation on 
cooperatives borrowing from a title III System lender; and (2) the 
requirement for a USPAP-compliant appraisal on certain business loans.
    After careful consideration of all the comments, we are adopting 
all five proposed amendments as final without change. In this final 
rule, we also make eight technical and conforming changes to five 
regulation sections governing title III System lenders; six changes are 
made to correct outdated and erroneous cross-references and two changes 
are made to remove references to deleted Sec.  614.4710. Three of the 
cross-reference changes were part of our proposed rule and are adopted 
without change. We also made five additional technical and conforming 
changes in the final rule. We find that publishing a notice and asking 
for public comment on these changes is unnecessary and impractical 
because they are not substantive and merely correct and update cross-
references in other related parts of our rules.

IV. Section-by-Section Discussion of Comments to the Five Amendments

A. Section 611.1135--Incorporation of Service Corporations

    We proposed to amend the relevant sentence of Sec.  611.1135(b) to 
clarify that service corporations are not required to offer stock to 
every System bank and association. We did not receive any specific 
comments on this proposal. We are adopting this proposal as final.

B. Section 612.2155--Employee Reporting

    We proposed to amend Sec.  612.2155(d) to require a newly hired 
employee to complete a standards of conduct report not later than 5 
business days after the new employee's start date. We did not receive 
any specific comments on this proposal. We are adopting this proposal 
as final.

C. Section 613.3100--Domestic Lending--Banks Operating Under Title III 
of the Farm Credit Act

    Section 3.8(a) of the Farm Credit Act of 1971, as amended (Act),\1\ 
provides that an agricultural or aquatic cooperative (that meets 
statutory minimum levels of farmer ownership and business with members) 
is eligible for financing from a title III System lender if it conforms 
to either of the two following requirements:
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    \1\ 12 U.S.C. 2129(a).
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    (1) No member of the association is allowed more than one vote 
because of the amount of stock or membership capital he may own 
therein; or
    (2) Does not pay dividends on stock or membership capital in excess 
of such per centum per annum as may be approved under regulations of 
the Farm Credit Administration * * *.\2\
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    \2\ As discussed below, even if one of these eligibility 
requirements is met, the Act has other requirements that must also 
be satisfied in order for a cooperative to borrow from a title III 
System lender.
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    Current Sec.  613.3100(b)(1)(iii) provides that an eligible 
cooperative must comply with one of the following two conditions:
    (A) No member of the cooperative shall have more than one vote 
because of the amount of stock or membership capital owned therein; or
    (B) The cooperative restricts dividends on stock or membership 
capital to 10 percent per year or the maximum percentage per year 
permitted by applicable state law, whichever is less.
    We proposed to delete the 10-percent limitation, allowing state law 
to govern compliance with the dividend requirement.
    Commenters who supported the amendment stated that the amendment 
would be of significant benefit as cooperatives continue to develop new 
ownership structures and capital plans. Other commenters stated changes 
to the eligibility provisions in title III of the Act will be necessary 
for System lenders to serve new farmer-owned businesses being created 
under state laws. These commenters further noted the limited effect of 
the regulatory change, stating that the 80-percent farmer voting 
control requirement contained in the Act remains a more serious 
obstacle for cooperatives.
    Commenters who opposed the amendment asserted that the Act requires 
the FCA to set the dividend limit and that FCA cannot defer this 
authority and responsibility to the states. These commenters stated 
that FCA's proposal was therefore arbitrary and capricious. After 
careful consideration of these comments, we conclude that it is 
appropriate to adopt the proposed section as final for the following 
four reasons.
    First, we note that Congress gave FCA substantial discretion in 
this area. Unlike section 3.8(a)(1), (a)(3), and (a)(4) of the Act, 
which prescribe very specific eligibility requirements for 
cooperatives,

[[Page 65385]]

section 3.8(a)(2) of the Act leaves the determination of the maximum 
dividend percentage solely to the discretion of FCA. It is an 
appropriate use of discretion for FCA to look to another authoritative 
source of applicable law--state law--in setting this limit. Moreover, 
our existing rule--10 percent per year or the maximum percentage per 
year permitted by applicable state law, whichever is less--already 
generally defers to state law because most states have an 8-percent 
limit.
    Second, FCA's reference to state law is not ``arbitrary'' in this 
context because cooperatives that borrow from a title III System lender 
are usually a form of a state-chartered corporation whose organization 
and operations are governed by state law. Compliance with state law--
for corporate formation requirements--always impacts the eligibility of 
a ``legal entity'' to borrow from the System. Therefore, we believe 
that it is reasonable for FCA to defer to state law--an external 
authoritative source--in adopting this cooperative eligibility rule.
    Third, we disagree with commenters who stated that FCA should look 
to the Capper-Volstead Act's limitations on cooperative dividends. As 
we noted in the proposed rule's preamble, in the Farm Credit Act of 
1971, Congress specifically eliminated the former Farm Credit law's 
reference to the Capper-Volstead Act (and its 8-percent dividend 
limitation) in providing for cooperative eligibility. Therefore, 
Capper-Volstead Act limitations are irrelevant and their application to 
FCS eligibility arguably violates congressional intent.
    Fourth, after careful consideration of comments to the contrary, we 
conclude that FCA's proposed amendment would not have sweeping adverse 
effects and would not allow lending to all types of cooperatives. The 
Act specifically limits eligibility to agricultural cooperatives that 
meet very specific farmer ownership and business with members' 
requirements. Nothing in this rule alters those requirements. Moreover, 
three non-System organizations representing cooperatives commented that 
the proposed rule would benefit agricultural cooperatives and their 
farmer members.
    For the reasons stated above, we are adopting the proposed 
amendment as final.

D. Section 614.4265--Real Property Evaluations

    We proposed to eliminate the requirement for a USPAP-compliant real 
property appraisal for business loans between $250,000 and $1 million 
that are not otherwise exempt under our rules. Supporting commenters 
stated that the existing requirement is unduly burdensome and places 
System lenders at a competitive disadvantage because non-System lenders 
are not required to perform USPAP-compliant appraisals for these types 
of business loans. Commenters further added that the existing 
requirement does not necessarily ensure greater safety and soundness 
because a similar level of analysis is required for collateral 
evaluations.
    Opposing commenters asserted that the deletion of the proposed 
amendment could create numerous safety and soundness problems because 
FCA does not have other safeguards in place like other Federal 
financial regulators. They stated that the Office of the Comptroller of 
the Currency's (OCC) regulations \3\ provide safeguards that do not 
exist in FCA's regulations.
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    \3\ See 12 CFR 34.62 (addressing loan portfolio management and 
expertise on local markets).
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    FCA believes that our regulations provide safeguards that are 
comparable to other financial regulators. Part 614, subpart F 
(``Collateral Evaluation Requirements'') of our regulations requires 
well-defined and effective collateral evaluation policies and standards 
which cover areas such as:
     Criteria for when USPAP collateral appraisals are required 
rather than a collateral evaluation;
     Accounting for market trends, volatility, and types of 
credit;
     Using an unbiased and qualified evaluator;
     Collateral evaluation standards found in Sec.  614.4250 
addressing such items as market value, highest and best use, and 
income-producing capacity;
     Evaluation requirements found in Sec.  614.4260 addressing 
such items as appraiser certifications;
     Real property evaluations found in Sec.  614.4265 
addressing such items as the approach used and debt-servicing capacity;
     Personal and intangible property evaluations found in 
Sec.  614.4266 addressing such items as comparisons of value, and USPAP 
Competency and Ethics Provisions; and
     Professional association membership.
    Some commenters asserted that FCA's appraisal regulations 
pertaining to independence standards are not as stringent as the OCC 
regulations in 12 CFR 34.45.
    FCA finds that its regulations on appraisal independence are as 
stringent as those of other regulators. Multiple FCA regulation 
sections address independence, such as:
     Section 614.4255, which is devoted exclusively to 
``Independence Requirements,'' outlines clear prohibitions for 
directors, officers, employees, real estate appraisers, and fee 
appraisers. In addition, this section prohibits persons performing a 
collateral evaluation from involvement in credit decisions.
     Section 614.4240(n) defines qualified evaluators as 
persons who are competent, reputable, impartial, and have demonstrated 
sufficient training and experience.
     Section 614.4245(a)(3) requires System institution 
policies and standards to ensure that collateral evaluations are 
completed by a qualified evaluator in an unbiased manner.
    Commenters also contended that removing the USPAP requirement could 
result in ``inflated land values.'' We believe that removing this 
requirement will not inflate collateral values and thus, will not 
adversely impact the System's safety and soundness. For business loans 
under $1 million, real property evaluations will be required. Section 
614.4265 contains specific requirements of those real property 
evaluations such as:
     Determining market value that considers approaches using 
income capitalization, sales comparisons, and/or costs.
     Evaluating and documenting the income and debt-servicing 
capacity for the property and operation for transaction values over 
$250,000.
     Identifying nonagricultural influences.
    Several commenters stated that Federal Reserve Regulation Y 
generally requires ``outside'' appraisals for transactions over 
$250,000, and that FCA's requirement should be the same. We believe our 
requirements are essentially the same. Regulation Y at 12 CFR 
225.63(a)(1) requires appraisals by a state-certified or licensed 
appraiser for non-business loan transactions with values more than 
$250,000. FCA's requirements at Sec.  614.4260(b)(1) also require 
appraisals by a state-certified or licensed appraiser for non-business 
loan transactions over $250,000. Regulation Y at 12 CFR 225.63(a)(5) 
requires an appraisal by a state-certified or licensed appraiser for a 
business loan transaction over $1 million. Section 614.4260(c)(2) also 
requires an appraisal by a state-certified or licensed appraiser for a 
business loan transaction over $1 million.
    Several commenters stated that FCA's proposal regarding appraisal 
requirements for business loans was not comparable to other Federal 
financial regulators. FCA finds that its

[[Page 65386]]

requirements are very similar to those of other regulators. The 
amendment will make our regulations more comparable to the:
     Federal Reserve's regulation at 12 CFR 225.63(a)(5).
     Federal Deposit Insurance Corporation's regulation at 12 
CFR 323.3(a)(5).
     Office of Thrift Supervision's regulation at 12 CFR 
464.3(a)(5).
     OCC's regulation at 12 CFR 34.43(a)(5).
    For the reasons stated above, we are adopting the proposed 
amendment as final.

E. Section 614.4710--Bankers' Acceptance Financing

    We proposed to delete Sec.  614.4710, pertaining to bankers' 
acceptance financing, in its entirety. We did not receive any specific 
comments on this proposal. We are adopting this proposal as final.

V. Regulatory Flexibility Act

    Pursuant to section 605(b) of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.), FCA hereby certifies that the final rule will not 
have a significant economic impact on a substantial number of small 
entities. Each of the banks in the Farm Credit System, considered 
together with its affiliated associations, has assets and annual income 
in excess of the amounts that would qualify them as small entities. 
Therefore, FCS institutions are not ``small entities'' as defined in 
the Regulatory Flexibility Act.

List of Subjects

12 CFR Part 611

    Agriculture, Banks, banking, Rural areas.

12 CFR Part 612

    Agriculture, Banks, banking, Conflicts of interest, Crime, 
Investigations, Rural areas.

12 CFR Part 613

    Agriculture, Banks, banking, Credit, Rural areas.

12 CFR Part 614

    Agriculture, Banks, banking, Foreign trade, Reporting and 
recordkeeping requirements, Rural areas.

12 CFR Part 615

    Accounting, Agriculture, Banks, banking, Government securities, 
Investments, Rural areas.


0
For the reasons stated in the preamble, parts 611, 612, 613, 614, and 
615 of chapter VI, title 12 of the Code of Federal Regulations are 
amended as follows:

PART 611--ORGANIZATION

0
1. The authority citation for part 611 is revised to read as follows:

    Authority: Secs. 1.3, 1.4, 1.13, 2.0, 2.1, 2.10, 2.11, 3.0, 3.2, 
3.21, 4.12, 4.12A, 4.15, 4.20, 4.21, 5.9, 5.10, 5.17, 6.9, 6.26, 
7.0-7.13, 8.5(e) of the Farm Credit Act (12 U.S.C. 2011, 2012, 2021, 
2071, 2072, 2091, 2092, 2121, 2123, 2142, 2183, 2184, 2203, 2208, 
2209, 2243, 2244, 2252, 2278a-9, 2278b-6, 2279a-2279f-1, 2279aa-
5(e)); secs. 411 and 412 of Pub. L. 100-233, 101 Stat. 1568, 1638; 
secs. 409 and 414 of Pub. L. 100-399, 102 Stat. 989, 1003, and 1004.

Subpart I--Service Organizations

0
2. Amend Sec.  611.1135 by revising paragraph (b) to read as follows:


Sec.  611.1135  Incorporation of service corporations.

* * * * *
    (b) Who may own equities in your service corporation?
    (1) Your service corporation may only issue voting and non-voting 
stock to:
    (i) One or more Farm Credit banks and associations; and
    (ii) Persons that are not Farm Credit banks or associations, 
provided that at least 80 percent of the voting stock is at all times 
held by Farm Credit banks or associations.
    (2) For the purposes of this subpart, we define persons as 
individuals or legal entities organized under the laws of the United 
States or any state or territory thereof.
* * * * *

PART 612--STANDARDS OF CONDUCT AND REFERRAL OF KNOWN OR SUSPECTED 
CRIMINAL VIOLATIONS

0
3. The authority citation for part 612 continues to read as follows:

    Authority: Secs. 5.9, 5.17, 5.19 of the Farm Credit Act (12 
U.S.C. 2243, 2252, 2254).

Subpart A--Standards of Conduct

0
4. Amend 612.2155 by revising paragraph (d) to read as follows:


Sec.  612.2155  Employee reporting.

* * * * *
    (d) A newly hired employee shall report matters required to be 
reported in paragraphs (a), (b), and (c) of this section to the 
Standards of Conduct Official 5 business days after starting employment 
and thereafter shall comply with the requirements of this section.

PART 613--ELIGIBILITY AND SCOPE OF FINANCING

0
5. The authority citation for part 613 continues to read as follows:

    Authority: Secs. 1.5, 1.7, 1.9, 1.10, 1.11, 2.2, 2.4, 2.12, 3.1, 
3.7, 3.8, 3.22, 4.18A, 4.25, 4.26, 4.27, 5.9, 5.17 of the Farm 
Credit Act (12 U.S.C. 2013, 2015, 2017, 2018, 2019, 2073, 2075, 
2093, 2122, 2128, 2129, 2143, 2206a, 2211, 2212, 2213, 2243, 2252).

Subpart B--Financing for Banks Operating Under Title III of the 
Farm Credit Act

0
6. Amend Sec.  613.3100 by revising paragraphs (b)(1)(iii)(B) and 
(d)(1) to read as follows:


Sec.  613.3100  Domestic lending.

* * * * *
    (b) * * *
    (1) * * *
* * * * *
    (iii) * * *
    (A) * * *
    (B) The cooperative restricts dividends on stock or membership 
capital to the maximum percentage per year permitted by applicable 
state law.
* * * * *
    (d) Water and waste disposal facilities--(1) Eligibility. A 
cooperative or a public agency, quasi-public agency, body, or other 
public or private entity that, under the authority of state or local 
law, establishes and operates water and waste disposal facilities in a 
rural area, as that term is defined by paragraph (a)(4) of this 
section, is eligible to borrow from a bank for cooperatives or an 
agricultural credit bank.
* * * * *

PART 614--LOAN POLICIES AND OPERATIONS

0
7. The authority citation for part 614 continues to read as follows:

    Authority: 42 U.S.C. 4012a, 4104a, 4104b, 4106, and 4128; secs. 
1.3, 1.5, 1.6, 1.7, 1.9, 1.10, 1.11, 2.0, 2.2, 2.3, 2.4, 2.10, 2.12, 
2.13, 2.15, 3.0, 3.1, 3.3, 3.7, 3.8, 3.10, 3.20, 3.28, 4.12, 4.12A, 
4.13B, 4.14, 4.14A, 4.14C, 4.14D, 4.14E, 4.18, 4.18A, 4.19, 4.25, 
4.26, 4.27, 4.28, 4.36, 4.37, 5.9, 5.10, 5.17, 7.0, 7.2, 7.6, 7.8, 
7.12, 7.13, 8.0, 8.5 of the Farm Credit Act (12 U.S.C. 2011, 2013, 
2014, 2015, 2017, 2018, 2019, 2071, 2073, 2074, 2075, 2091, 2093, 
2094, 2097, 2121, 2122, 2124, 2128, 2129, 2131, 2141, 2149, 2183, 
2184, 2201, 2202, 2202a, 2202c, 2202d, 2202e, 2206, 2206a, 2207, 
2211, 2212, 2213, 2214, 2219a, 2219b, 2243, 2244, 2252, 2279a, 
2279a-2, 2279b, 2279c-1, 2279f, 2279f-1, 2279aa, 2279aa-5); sec. 413 
of Pub. L. 100-233, 101 Stat. 1568, 1639.

[[Page 65387]]

Subpart A--Lending Authorities

0
8. Amend Sec.  614.4010 by revising paragraphs (d)(1) and (d)(2) to 
read as follows:


Sec.  614.4010  Agricultural credit banks.

* * * * *
    (d) * * *
    (1) Eligible cooperatives, as defined in Sec.  613.3100(b)(1), in 
accordance with Sec. Sec.  614.4200, 614.4231, 614.4232, 614.4233, and 
subpart Q of part 614;
    (2) Other eligible entities, as defined in Sec.  613.3100(b)(2), in 
accordance with Sec. Sec.  614.4200, 614.4231, and 614.4232;
* * * * *


Sec.  614.4020  [Amended]

0
9. Amend Sec.  614.4020 by:
0
a. Removing the reference ``Sec.  613.3110'' and adding in its place, 
the reference ``Sec.  613.3100(b)(1)'' in paragraph (a)(1); and
0
b. Removing the reference ``Sec.  613.3110(c)'' and adding in its 
place, the reference ``Sec.  613.3100(b)(2)'' in paragraph (a)(2).

Subpart F--Collateral Evaluation Requirements


Sec.  614.4265  [Amended]

0
10. Amend Sec.  614.4265 by removing paragraph (c) and redesignating 
paragraphs (d), (e), (f), (g), and (h) as (c), (d), (e), (f), and (g), 
respectively.

Subpart J--Lending and Leasing Limits

0
11. Amend Sec.  614.4355 by:
0
a. Revising paragraph (a)(8) to read as follows; and
0
b. Removing the reference ``Sec.  614.4321'' and adding in its place, 
the reference ``Sec.  614.4720'' in paragraph (a)(9).


Sec.  614.4355  Banks for cooperatives.

* * * * *
    (a) * * *
    (8) Commodity loans qualifying under Sec.  614.4231: 50 percent.
* * * * *

Subpart Q--Banks for Cooperatives and Agricultural Credit Banks 
Financing International Trade


Sec.  614.4710  [Removed]

0
12. Remove and reserve Sec.  614.4710.

PART 615--FUNDING AND FISCAL AFFAIRS, LOAN POLICIES AND OPERATIONS, 
AND FUNDING OPERATIONS

0
13. The authority citation for part 615 continues to read as follows:

    Authority: Secs. 1.5, 1.7, 1.10, 1.11, 1.12, 2.2, 2.3, 2.4, 2.5, 
2.12, 3.1, 3.7, 3.11, 3.25, 4.3, 4.3A, 4.9, 4.14B, 4.25, 5.9, 5.17, 
6.20, 6.26, 8.0, 8.3, 8.4, 8.6, 8.7, 8.8, 8.10, 8.12 of the Farm 
Credit Act (12 U.S.C. 2013, 2015, 2018, 2019, 2020, 2073, 2074, 
2075, 2076, 2093, 2122, 2128, 2132, 2146, 2154, 2154a, 2160, 2202b, 
2211, 2243, 2252, 2278b, 2278b-6, 2279aa, 2279aa-3, 2279aa-4, 
2279aa-6, 2279aa-7, 2279aa-8, 2279aa-10, 2279aa-12); sec. 301(a) of 
Pub. L. 100-233, 101 Stat. 1568, 1608.

Subpart Q--Bankers' Acceptances

0
14. Revise Sec.  615.5550 to read as follows:


Sec.  615.5550  Bankers' acceptances.

    Banks for cooperatives may rediscount with other purchasers the 
acceptances they have created. The bank for cooperatives' board of 
directors, under established policies, may delegate this authority to 
management.

    Dated: November 3, 2006.
Roland E. Smith,
Secretary, Farm Credit Administration Board.
 [FR Doc. E6-18841 Filed 11-7-06; 8:45 am]
BILLING CODE 6705-01-P