Pub. 5 2010-2011 Issue 4

www.nebankers.org 14 Extraordinary Service for Extraordinary Members. The FCA has not determined when it will issue a final regulation governing a similar program, “Rural Community Investments,” which would allow FCS institutions “to make investments in rural community essential facilities and infrastructure projects in collaboration with federal and state agencies and other rural lenders.” In a related action on Sept. 2, the FCA board voted to amend the definition of “rural areas” for the “rural America bond and rural com- munity bonds or securities pilot investment programs.” According to an FCA news release, the definition of “rural area” was amended “to clarify that it includes investments regarded as rural by and approved under the [USDA] or any other federal agency pursuant to a congressionally approved program to serve rural areas.” Since the FCA has not disclosed how it will change its definition of “rural area,” I filed a Freedom of Information Act request seek- ing specifics about this definitional change as well as how the FCA differentiates these various investment programs. Bankers can be confident, though, that the intent of these changes is to broaden the scope and geographical reach of FCS activities. FCA Extends Comment Period on Buying Loans of Failed Banks The FCA has backed off a bit on another regulatory thrust. On Sept. 16, the FCA announced it had reopened, until Oct. 18, its comment period on a “proposed rule that would permit [FCS] institutions with direct lending authority to purchase from the [FDIC] loans to farmers, ranchers, [and] producers or harvesters of aquatic products.” These would be loans made by banks that later failed. As the April Farm Credit Watch reported, these purchases could include whole loans to borrowers who are not eligible to borrow from the FCS or are outside the buyer’s chartered territory. The FCA stated at the time that “non-eligible loans, and eligible loans to borrowers who chose not to become [FCS] members, would be divested as soon as financially feasible.” The April Farm Credit Watch stated that the FCA should simply bar FCS institutions from buying ineligible loans, period. Report FCS Lending Abuses Bankers are continuing to send Farm Credit Watch (FCW) reports of FCS lending abuses such as FCS loans for rural estates, weekend getaways, and hunting preserves. E-mail reports of similar lending abuses in your market to green-acres@ely-co.com. Please provide as much detail as possible about any loan that violates the spirit, if not the law, governing FCS lending. Farm Credit Watch Free to ABA Members If your bank belongs to the American Bankers Association (ABA), you can enjoy a FREE e-mail subscription to FCW or you can read it monthly online at www.aba.com . To receive FCW by e-mail or to manage your subscription, visit ABA E-Mail Bulletins at www.aba.com and check or uncheck the appropriate boxes. For other inquiries, please contact Barbara McCoy at the ABA at 800-BANKER. Z To contact Bert Ely, e-mail bert@ely-co.com; fax (703) 836-1403; phone (703) 836-4101; or mail PO Box 320700, Alexandria, Va. 22320. Q Farm Credit Watch Bankers can be confident, though, that the intent of these changes is to broaden the scope and geographical reach of FCS activities. It ’ s Time to Stand Apart . Nebraska’s bankers know that to stand apart is to build strength. Now is the time to leverage that power. We’re here to stand with you. www.woodsaitken.com DENVER LINCOLN OMAHA WASHINGTON, D.C.