[Federal Register Volume 76, Number 241 (Thursday, December 15, 2011)]
[Notices]
[Pages 77998-77999]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-32136]


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FARM CREDIT ADMINISTRATION


Market Access Agreement

AGENCY: Farm Credit Administration.

ACTION: Notice of approval of the Draft Second Amended and Restated 
Market Access Agreement.

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

FOR FURTHER INFORMATION CONTACT:

Thomas R. Risdal, Senior Policy Analyst, Office of Regulatory Policy, 
Farm Credit Administration, McLean, VA 22102-5090, (703) 883-4257, TTY 
(703) 883-4434,

or

Rebecca S. Orlich, 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 Second Restated 
MAA in the Federal Register on November 1, 2011 (76 FR 67440) with a 
request for public comment by December 1, 2011. No public comments were 
received on the Draft Second Restated MAA.
    The Draft Second Restated MAA is an update to the Amended and 
Restated MAA that was approved by the FCA on April 10, 2003 and 
published in the Federal Register on April 21, 2003 (68 FR 19539). That 
2003 agreement updated the original MAA approved by the FCA on August 
17, 1994 and published in the Federal Register on August 23, 1994 (59 
FR 4334).\1\ The Amended and Restated MAA entered into in 2003 has a 
termination date of December 31, 2011. The Draft Second Restated MAA 
provides that it will go into effect on January 1, 2012, provided that 
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 Second Restated MAA. The FCA 
announces that it has approved the Draft Second Restated MAA.
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    \1\ On December 3, 2010, the FCA Board also approved amendments 
to the Amended and Restated MAA that would conform its provisions to 
the System banks' proposed Joint and Several Liability Reallocation 
Agreement (Reallocation Agreement) to ensure that the MAA provisions 
did not impede operation of the Reallocation Agreement; the 
amendments further provided that the MAA and the Reallocation 
Agreement are separate agreements, and invalidation of one does not 
affect the other. The FCA published those amendments in the Federal 
Register on December 9, 2010 (75 FR 76729).
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    System banks and the Funding Corporation entered into the original 
MAA in September 1994, to help control the risk of each System bank by 
outlining each party's respective rights

[[Page 77999]]

and responsibilities in the event the condition of a System bank fell 
below certain financial 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 proposed Second Restated MAA retains the same general framework 
and most of the provisions of the Restated and Amended MAA, updated as 
necessary.
    Having given the public notice and the opportunity to comment, the 
FCA Board hereby approves the Draft Second 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 Second Restated MAA is 
conditioned on the board of directors of each bank and the Funding 
Corporation approving the Draft Second Restated MAA. Neither the Draft 
Second 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 Second Restated MAA at any time.

    Dated: December 9, 2011.
Dale L. Aultman,
Secretary, Farm Credit Administration Board.
[FR Doc. 2011-32136 Filed 12-14-11; 8:45 am]
BILLING CODE 6705-01-P