[Federal Register Volume 89, Number 173 (Friday, September 6, 2024)]
[Proposed Rules]
[Pages 72759-72763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19805]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 89, No. 173 / Friday, September 6, 2024 / 
Proposed Rules  

[[Page 72759]]



FARM CREDIT ADMINISTRATION

12 CFR Part 613

RIN 3052-AD58


Loans to Similar Entities

AGENCY: Farm Credit Administration.

ACTION: Advanced notice of proposed rulemaking.

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SUMMARY: The Farm Credit Administration (FCA, our, or we) issues this 
advanced notice of proposed rulemaking (ANPRM), so interested members 
of the public may have the opportunity to provide input on how FCA 
should amend pivotal aspects of its similar entity lending regulations. 
More specifically, we are focusing on whether and how these regulations 
could better implement statutory provisions requiring similar entities 
to engage in activities that are ``functionally similar'' to the 
activities of eligible borrowers. We also seek comments about how FCA 
can ensure that our similar entity regulations are more closely aligned 
with the Farm Credit System's (FCS or System) statutory mission to 
serve agriculture, aquaculture, and specific activities in rural 
America. Additionally, we request comments pertaining to the 
determination of whether an entity, or entities within a corporate 
family can simultaneously qualify as both an eligible borrower and 
similar entity, as well as on the use of ``other extensions of credit'' 
and ``other technical and financial assistance'' within the similar 
entity lending authority. We intend to use the comments that we receive 
from this ANPRM to craft a proposed rule to enhance the clarity and 
guidance of our similar entity regulations.

DATES: You may send comments on or before December 5, 2024.

ADDRESSES: For accuracy and efficiency, please submit comments by email 
or through FCA's website. We do not accept comments submitted by fax 
because faxes are difficult to process. Also, please do not submit 
comments multiple times; submit your comment only once, using one of 
the following methods:
     Send an email to [email protected].
     Use the public comment form on our website:
    1. Go to https://www.fca.gov.
    2. Click inside the ``I want to . . .'' field near the top of the 
page.
    3. Select ``comment on a pending regulation'' from the dropdown 
menu.
    4. Click ``Go.'' This takes you to the comment form.
     Send the comment by mail to the following:
    Autumn R. Agans, Deputy Director, Office of Regulatory Policy, Farm 
Credit Administration, 1501 Farm Credit Drive, McLean, VA 22102-5090.
    We post all comments on the FCA website. We will show your comments 
as submitted, including any supporting information; however, for 
technical reasons, we may omit items such as logos and special 
characters. Personal information that you provide, such as phone 
numbers and addresses, will be publicly available. However, we will 
attempt to remove email addresses to help reduce internet spam.
    To review comments on our website, go to https://www.fca.gov and 
follow these steps:
    1. Click inside the ``I want to . . .'' field near the top of the 
page.
    2. Select ``find comments on a pending regulation'' from the 
dropdown menu.
    3. Click ``Go.'' This will take you to a list of regulatory 
projects.
    4. Select the project in which you're interested. If we have 
received comments on that project, you will see a list of links to the 
individual comments.
    You may also review comments at the FCA office in McLean, Virginia. 
Please call us at (703) 883-4056 or email us at [email protected] to 
make an appointment.

FOR FURTHER INFORMATION CONTACT: 
    Technical Information: Luke Gallegos, Senior Policy Analyst, Office 
of Regulatory Policy, Farm Credit Administration, McLean, VA 22102-
5090, (703) 883-4414, TTY (703) 883-4056, or [email protected]; or
    Legal Information: Richard Katz, Senior Counsel, Office of General 
Counsel, Farm Credit Administration, McLean, VA 22102-5090, (703) 883-
4085, TTY (703) 883-4056, or
    Karen Hunter, Attorney Advisor, Office of General Counsel, Farm 
Credit Administration, McLean, VA 22102-5090, (703) 883-4147, TTY (703) 
883-4056.

SUPPLEMENTARY INFORMATION:

I. Objective

    The purpose of this ANPRM is to gather public input on how FCA 
might revise similar entity regulations to:
     Clarify what activities of similar entities would be 
considered ``functionally similar'' to the activities of eligible 
borrowers, as the statute requires.
     Determine how similar entity transactions are consistent 
with the System's mission.
     Ensure eligibility determination for prospective similar 
entities belonging to corporate families that have parents, 
subsidiaries, affiliates, and other related entities is consistently 
applied.
     Clarify what is required to support and document the 
determination of a prospective borrower as a qualified similar entity.
     Determine what financial instruments, including bonds, 
might qualify as ``other extensions of credit'' and ``other technical 
and financial assistance'' within the statutory and regulatory similar 
entity provisions.

II. Background

    Sections 3.1(11)(B) and 4.18A of the Farm Credit Act of 1971, as 
amended (Act), authorize banks for cooperatives,\1\ Farm Credit Banks, 
and direct lender associations to participate in loans to similar 
entities. Congress added these sections granting this authority in 1992 
and 1994.
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    \1\ With one exception, all provisions of the Act governing 
title III banks only refer to ``bank(s) for cooperatives.'' Section 
7.0 of the Act allows Farm Credit Banks and banks for cooperative to 
merge. FCA regulations designate such merged banks as ``agricultural 
credit banks.'' Before the Agricultural Credit Act of 1987 added 
section 7.0 to the Act, there were 12 regional banks for 
cooperatives and a Central Bank for Cooperatives. Over time, all 13 
banks for cooperatives merged into CoBank, which is the only FCS 
institution operating under title III of the Act. Several Farm 
Credit Banks also merged into CoBank, which now is the only 
agricultural credit bank in the FCS.
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    Section 502 of the Farm Credit Banks and Associations Safety and 
Soundness Act of 1992 \2\ added Section 3.1(11)(B), which granted FCS 
banks operating

[[Page 72760]]

under title III of the Act authority to participate in loans that non-
System lenders originated for similar entities under certain 
conditions. In 1994, section 5 of the Farm Credit System Agricultural 
Export and Risk Management Act \3\ added 4.18A, which expanded similar 
entity authority to System banks and associations that operate under 
titles I and II of the Act.
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    \2\ See Public Law 102-552, 502, 106 Stat. 4130, (Oct. 28, 
1992).
    \3\  See Public Law 103-376, 5, 108 Stat. 3498, (Oct. 19, 1994).
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    The similar entity provisions of the Act authorize FCS banks and 
associations to participate in multi-lender credits that non-System 
lenders originate for parties who are not eligible for loans from 
System lending institutions. Under the statute, qualified similar 
entities derive a majority of their income from, or have a majority of 
their assets invested in, the conduct of activities that are 
functionally similar to the activities of eligible borrowers. The 
applicable statutory provisions also specify that each System bank or 
association may participate in any loan of the type that it is 
authorized to make under titles I, II, or III of the Act, respectively. 
As explained in greater detail below, section 3.1(11)(B)(iii) of the 
Act establishes a broad and unique definition of ``participate'' and 
``participation'' that applies only to similar entity transactions in 
which System lenders engage. Finally, similar entity participations are 
subject to: (1) an obligor limit of 10 percent of an FCS institution's 
total capital for a single credit risk, (2) a limit of less than 50 
percent of the principal amount of each loan in which System lenders, 
individually, or collectively participate, and (3) a portfolio cap of 
15 percent of the total assets of each System bank or association.
    After Congress granted similar entity authority to the System, FCA 
enacted a new implementing regulation, Sec.  613.3300.\4\ Our similar 
entity regulation closely aligns with the text of sections 3.1(11)(B) 
and 4.18A of the Act. Similar entity lending is unique to the FCS and 
involves a complex and multi-faceted process to properly determine if 
an applicant qualifies for similar entity status. With this in mind, 
FCA decided to initiate a rulemaking to provide further direction as to 
which borrowers and activities fall within the System's similar entity 
authority, and to provide clearer guidance to all stakeholders. This 
ANPRM is the first stage of this rulemaking, which seeks public comment 
to assist FCA in clarifying the intricacies involved in determining 
whether an applicant qualifies as a similar entity.
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    \4\ See 60 FR 47103 (Sept. 11, 1995); 61 FR 42902 (Aug. 13, 
1996); 62 FR 4429 (Jan. 30, 1997).
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    Our regulation, Sec.  613.3300(b), establishes three criteria for a 
similar entity transaction. The first part of this regulatory provision 
states that a Farm Credit bank or direct lender association may 
``participate'' in a similar entity transaction with a non-FCS lender. 
As defined in Sec.  613.3300(a)(1), the term ``participate'' or 
``participation,'' for the purpose of similar entity lending, refers to 
multi-lender transactions including syndications, assignments, loan 
participations, subparticipations, other forms of the purchase, sale, 
or transfer of interest in loans, or other extensions of credit, or 
other technical and financial assistance. Therefore, for a similar 
entity transaction to enter the System it must be a participation as 
defined above, and System banks and associations must participate with 
one or more non-FCS lenders. Additionally, the System institution(s) 
participation interest in the transaction must not, at any time, equal 
or exceed 50 percent of the principal amount.
    The second criterion that Sec.  613.3300(b) establishes for any 
similar entity transaction is that a prospective borrower is ineligible 
to receive a loan from a System bank or association under part 613, 
subparts A and B. This part of Sec.  613.3300(b) derives from Sec.  
613.3300(a)(2), which defines a similar entity as an ineligible party 
whose operations are functionally similar to the activities of eligible 
borrowers. The functionally similar activity is the foundational 
component for determining whether an ineligible party qualifies as a 
similar entity. System banks and associations that want to participate 
in such credits must engage in considerable analysis, support, and 
documentation to mitigate associated risks including, but not limited 
to, credit, reputational, legal, and financial.
    The third criterion that Sec.  613.3300(b) establishes for a 
similar entity transaction is that the loan purpose must be similar to 
those for which an eligible borrower could obtain financing from the 
participating FCS institution. This part relates to the similar entity 
definition in Sec.  613.3300(a)(2), which ties a similar entity's 
activities to those performed by an eligible FCS borrower.

III. Request for Comments

    We request and encourage any interested person to submit comments 
on the questions below, and we ask that you support your comments with 
relevant information, data, or examples. We remind commenters that 
their comment letters and supporting documentation will be available to 
the public.
    We have organized our questions to address the following: (1) the 
appropriate criteria used to determine whether the activities of a 
similar entity are ''functionally similar'' to those of eligible 
borrowers, (2) the extent to which a prospective similar entity's 
activities are consistent with the FCS's statutory mission to extend 
credit and provide related services to agriculture and other eligible 
borrowers in rural communities, (3) the complexities of determining 
eligibility for corporate families that have parents, subsidiaries, 
affiliates, and other related entities, and (4) the appropriate scope 
of ``other extensions of credit or other technical and financial 
assistance'' within similar entity lending authorities.

A. Functionally Similar Activity

    As explained earlier, the term ``similar entity'' is defined in the 
Act as a person or entity \5\ that is not eligible for a loan from a 
Farm Credit bank or association but has operations that are 
functionally similar to a person who is eligible for a loan from the 
Farm Credit bank or association. In addition, the person or entity is 
required to derive a majority of its income from, or have a majority of 
its assets invested in, the conduct of activities that are functionally 
similar to the activities that are conducted by an eligible person. 
There are essentially two parts to this definition:
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    \5\ As defined in 4.18A of the Act. See FCA Regulation Sec.  
613.3000(a)(3) for the definition of a person. Section 3.1(11)(B) of 
the Act includes the term ``entity'' in the definition.
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    1. The ``majority of income or assets invested'' requirement, which 
refers to the similar entity (ineligible party).
    2. The ``conduct of activities that are performed by eligible 
borrowers'' requirement, which refers to the ineligible party's 
operations that are functionally similar to the activities of eligible 
Farm Credit borrowers.
    For a person or entity to qualify as a similar entity, both parts 
of the definition must be met. The first part of the definition is 
clear on the qualification requirement to derive a majority of its 
income from, or have a majority of its assets, invested in functionally 
similar activities. The common, everyday meaning of the term 
``majority'' is an amount that is greater than 50 percent.\6\ However, 
we would

[[Page 72761]]

like to receive your input on what criteria should be used to determine 
what qualifies an activity as ``functionally similar.''
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    \6\ Under the rules of statutory construction developed by the 
Federal courts, words of a statute are interpreted according to 
their ``ordinary, contemporary, common meaning,'' unless Congress 
clearly expressed a different intent. See Pioneer Investment Service 
Co. v. Brunswick Associates Ltd Partnership, 507 U.S. 380, 388 
(1993) Since Congress did not prescribe a specific definition of 
``majority'' of income or assets for functionally similar borrowers, 
we would interpret this term in accordance with its ordinary, 
contemporary, common meaning. Therefore, majority would mean most of 
the income derived or most of the assets must be invested in 
activities that are functionally similar to eligible borrowers.
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    The term ``functionally similar'' refers to the function of 
activities performed by an ineligible person or entity which are 
consistent with the activities performed by an eligible borrower. The 
activities related to the scope of financing for which an eligible 
borrower can receive financing tie directly back to the requirements 
set forth in FCA Regulation Part 613, subpart A and B, except for rural 
home financing (Sec.  613.3030).\7\ The function of activities 
performed by a qualified similar entity are intended to align with the 
requirements under titles I, II, and III of the Act. Therefore, the 
differentiating factor between a similar entity and eligible borrower 
is in the eligibility status of the person or entity. For example, a 
person or entity that primarily processes or markets agricultural 
product(s) but does not meet the throughput or ownership requirements 
set forth in FCA regulation Sec.  613.3010, would sufficiently qualify 
the ``functionally similar'' activity aspect of a similar entity 
through their processing or marketing of agricultural products.\8\ 
However, if the same person or entity primarily processes and markets 
non-agricultural products, the activity does not seem ``functionally 
similar'' to the activities of eligible borrowers and, therefore, would 
not qualify as a similar entity. An entity that is neither a 
cooperative, nor its affiliated entity, but has activities that are 
functionally similar to processing and marketing, supply, or business 
service cooperatives (or their subsidiaries or affiliates) under Sec.  
613.3100(a)(1) could qualify as a similar entity depending on the 
connection of these activities to farmers, ranchers, or producers/
harvesters of aquatic products.\9\ We note that a prospective similar 
entity applicant that predominantly engages in activities or operations 
that are not functionally similar to the activities of eligible 
farmers, ranchers, aquatic producers and harvesters, their 
cooperatives, farm-related service business, or rural utilities, would 
not qualify for FCS credit under section 3.1(11)(B) or 4.18A of the 
Act, and Sec.  613.3300.
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    \7\ Section 4.18A(b)(4) of the Act specifically states that 
borrowers who are not eligible for non-farm rural homes under 
sections 1.11(b) and 2.4(a)(2) of the Act do not qualify as similar 
entities. This is also reflected in FCA's similar entity regulation, 
Sec.  613.3300(b), which does not cross-reference Sec.  613.3030, 
which governs eligibility and scope of financing for rural 
homeowners who are not farmers or ranchers.
    \8\ Determining whether processing and marketing activities of 
prospective similar entities are functionally similar to those of 
eligible borrowers may depend, to some extent, on how close the 
activities are to basic processing of raw agricultural commodities. 
For example, most restaurants and grocery stores that primarily 
engage in the retail sale of finished food products to consumers, 
most likely, would not derive most of their income from, or have 
most of their assets invested in activities that are functionally 
similar to those of eligible borrowers.
    \9\ This example is specific to title III cooperative lending 
and is not intended to speak to title I or II lending authorities 
(i.e., FCA regulations Sec. Sec.  613.3010 and 613.3020).
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    As noted above, we seek your input on what activities could 
determine functional similarity when evaluating whether an applicant 
qualifies as a similar entity. As such, we seek comment on the 
following questions:
    1. What quantitative and qualitative criteria are being used or 
being considered for determining a ``functionally similar'' activity of 
an eligible borrower?
    2. Could there be different factors based on market segments (e.g., 
industry, commodity, regional markets, etc.) that would necessitate 
differentiating criteria used to determine a ``functionally similar'' 
activity? If so, what factors should be considered?
    3. How far could an activity (such as processing and marketing, 
including packaging), be removed from agricultural production and 
harvesting, and basic processing of raw products and still qualify as a 
``functionally similar'' activity of a similar entity?
    4. What would be the most effective way to document how the 
activities of both an eligible borrower and a similar entity are 
determined to be functionally similar?

B. Similar Entity Consistency With FCS Mission

    Congress established the similar entity authority to provide System 
institutions and non-System lenders with a tool to manage risk.\10\ By 
lending to similar entities, System institutions can reduce geographic, 
industry, or individual borrower concentrations in their portfolios, 
and improve the results of their operations. The limits placed on 
System banks and associations in the Act reinforce the expectation that 
this authority be used prudently and thoughtfully. The similar entity 
authority should not diminish the System's primary mission as a lender 
to American farmers, ranchers, aquatic producers and harvesters, their 
cooperatives, and other eligible borrowers in rural America. 
Consistency between the similar entity's functionally similar activity 
and loan purposes that align with the FCS mission is a fundamental 
component in determining similar entity qualification, as well as 
significantly reducing the System's potential exposure to reputation 
risk. Consistency with the FCS mission and reduction of reputation risk 
exposure can be accomplished when the functionally similar activity and 
loan purpose demonstrate a clear direct benefit to American agriculture 
or certain activities in rural America and is appropriately documented. 
We would like to receive your input on the connection between similar 
entity lending authorities and the FCS mission.
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    \10\ A passage in the legislative history states, ``the act 
authorizes member lenders of the Farm Credit System--a government-
sponsored enterprise (GSE)--and the Nation's private banks to 
participate together in multi-lender transactions for the purpose of 
improving loan management capability and reducing concentration of 
risk.'' See statement by Sen. Leahy Cong. Rec. S 14235 (Oct. 5, 
1994).
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    When a similar entity's functionally similar operation(s) consist 
of producing, processing, or marketing a commodity or product, the 
expectation would be that an FCS bank or association evaluate how this 
activity advances the System's statutory mission to extend credit to 
American agriculture. This evaluation would include an assessment of a 
prospective similar entity's product mix, product ingredients, or 
inputs to ensure there is a primary benefit to American agriculture. A 
person or entity that primarily processes or markets product(s) that 
may not necessarily be considered agricultural products at face-value 
but contain agricultural ingredients (e.g., beverages, further 
processed foods, and other consumer packaged goods, etc.) may still 
qualify as a similar entity depending on the ingredients or inputs of 
the product. For example, a similar entity's operation whose 
functionally similar activity is producing a snack food that contains 
ingredients that are both primarily agricultural products (i.e., milk, 
wheat, soy) and primarily sourced from U.S. farmers \11\ would likely 
be considered a direct benefit to American agriculture. However, if the 
total ingredients of the product (e.g., snack foods, soft drinks, or 
energy drinks) are not primarily agricultural ingredients, or if those 
same

[[Page 72762]]

agricultural ingredients were primarily sourced from non-U.S. farmers, 
there may be a question regarding the direct benefit to American 
agriculture.
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    \11\ This would include sourcing directly from agricultural 
producers or food hubs, cooperatives, and other entities that market 
or store agricultural goods directly from producers.
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    Another area where the FCS's mission focuses on a direct benefit to 
rural America arises in lending to rural utilities under sections 
3.7(f) and 3.8(b)(1)(A) of the Act. Both sections of the Act require 
the utility to serve rural areas in America. Section 3.7(f) authorizes 
lending to entities for the purpose of installing, maintaining, 
expanding, improving, and operating water and waste disposal facilities 
in rural areas \12\ with populations of 20,000 inhabitants or less. 
Section 3.8(b)(1)(A) authorizes lending to an electric or 
telecommunications utility that has received a loan, loan commitment, 
or loan guarantee from the Rural Utilities Service (RUS) or is eligible 
for such credit under the Rural Electrification Act of 1936 (REA). When 
a utility does not provide electric, telecommunications, water, or 
waste management services in rural areas, questions most likely will 
arise about whether a title III bank is fulfilling its statutory 
mission to extend credit in America's rural communities.
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    \12\ More specifically, pursuant to section 3.7(f), a rural area 
is defined as ``all territory of a state that is not within the 
outer boundary of any city or town having a population of more than 
20,000 based on the latest decennial census of the United States.''
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    The FCS is committed to the success of American agriculture through 
its support of rural communities and agriculture with reliable and 
consistent credit and financial services. Section 1.1 of the Act 
acknowledges the need for credit in rural areas and states the 
objective of improving the income and well-being of American farmers 
and ranchers. As mentioned in subsection (A) above, the functionally 
similar activity directly ties the ineligible person or entity to an 
eligible borrower and the FCS mission. As such, we seek comment on the 
following questions:
    1. What criteria would indicate that a similar entity's 
functionally similar operation(s) is most likely to benefit American 
agriculture or other activities in rural communities that are 
consistent with the lending authorities of FCS banks and associations?
    a. What criteria and controls should we consider in a prospective 
rulemaking to ensure that similar entity lending is consistent with the 
scope of financing for loans to eligible borrowers?
    b. Under what circumstances would an activity such as processing/
marketing or packaging be allowed to deviate away from being related to 
American agricultural goods or products?
    c. What consideration should be given to the ingredients of a 
similar entity's product(s) to ensure benefit to American agriculture?
    i. What percentage of ingredients from the product(s) being 
produced should be composed of agricultural inputs?
    ii. What percentage of sourced ingredients or inputs should come 
from U.S. farmers, ranchers, or producers of aquatic products?
    iii. Under what circumstances could primarily sourcing ingredients 
from outside the U.S. benefit American agriculture?
    d. To what extent could a water or waste facility that operates in 
areas with more than 20,000 inhabitants pursuant to the requirements of 
3.7(f) qualify as a similar entity? What limitations should be required 
to ensure that such lending is compatible with the FCS mission to 
provide water and waste facilities in rural communities?
    e. To what extent could an electric or telecommunications utility 
that is not eligible to borrow under section 3.8(b)(1)(A) of the Act 
qualify as a similar entity?
    f. To what degree do utilities that are not directly eligible under 
title III need to provide public utility services to rural communities 
to be considered a similar entity?
    2. What would be the most effective way to document how a similar 
entity's functionally similar activities/operations benefit either 
American agriculture or rural communities?

C. Parents, Subsidiaries, and Affiliates

    Sections 3.1(11)(B)(ii) and 4.18A of the Act provide the authority 
for System institutions to participate in loans to a similar entity. 
``Similar entity'' is defined as an entity that is not eligible for a 
loan from a Farm Credit bank or association but is functionally similar 
to an eligible entity. We note that it is difficult to envision a 
situation in which a singular entity can be both an eligible borrower 
and a similar entity at the same time.
    Many legal entities are in corporate families that have parents, 
subsidiaries, affiliates, and other related entities. We are exploring 
whether more clarity is needed in the similar entity regulation to 
properly determine which entities in a multi-organizational structure 
qualify as similar entities. As such, we seek comment on the following 
questions:
    1. Under what circumstances could a single entity simultaneously 
qualify as both an eligible borrower and similar entity (ineligible 
party)?
    2. Under what circumstances could an entity in a corporate family 
(multi-organizational structure) qualify as a similar entity if another 
entity within the same corporate family is eligible to borrow, and vice 
versa? Please explain your reasoning and provide supporting information 
and suggestions.
    3. What criteria or requirements (e.g., corporate, operational, or 
financial interdependence) should our regulations place on the various 
entities in corporate families to ensure that the System only extends 
credit to qualified similar entities that meet the income, asset, and 
functionally similar requirements of the Act?

D. Incorporation of ``Other Extensions of Credit'' Within Similar 
Entity Lending Authorities

    Section 3.1(11)(B)(iii) of the Act refers to multi-lender 
transactions which include, ``other extensions of credit, or other 
technical and financial assistance'' under the definition of 
``participate'' or ``participation'' for similar entity credits.
    We ask for your input on what may fall within the interpretation of 
``other extensions of credit'' and ``other technical and financial 
assistance,'' including specifically whether and when bonds may be 
included as part of ``other extensions of credit.'' As such, we seek 
comment on the following questions:
    1. What factors would your institutions consider as part of the 
credit evaluation process if participating in bonds through similar 
entity authorities?
    a. What is the difference, if any, in the factors or credit 
evaluation process that should be considered if purchasing bonds on the 
secondary market versus participating in direct offerings?
    b. How would you ensure compliance with the similar entity 
qualification and loan purpose requirements as outlined in Sec.  
613.3300(b)?
    c. If purchased on the secondary market, how would you monitor 
compliance with the statutory lending limits in Sec.  613.3300(c) and 
ensure the selling party is a non-FCS lender with authority to extend 
credit?
    2. Are there any instruments, other than bonds, that would qualify 
as ``other extensions of credit'' that FCS institutions are utilizing, 
or are considering utilizing, within the similar entity lending 
authorities?
    a. If so, what types of financial instruments are being used or 
considered?
    b. What is the existing, or proposed structure of such instruments 
and what criteria and controls are being, or could be used to ensure 
safety and soundness?
    3. What would qualify as ``other technical and financial 
assistance'' that

[[Page 72763]]

FCS institutions are utilizing, or considering utilizing, within the 
similar entity lending authorities?

Miscellaneous

    Finally, are there any other issues pertaining to similar entity 
lending authorities that you think should be addressed in the next 
phases of this rulemaking that we have not raised in this ANPRM?

    Dated: August 29, 2024.
Ashley Waldron,
Secretary to the Board, Farm Credit Administration.
[FR Doc. 2024-19805 Filed 9-5-24; 8:45 am]
BILLING CODE 6705-01-P