Laws & Regulations
The Farm Credit Act
The Farm Credit Act (pdf) of 1971, as amended (Act), is the applicable federal law governing the Farm Credit System, the Farm Credit Administration (FCA), and FCSIC. FCSIC’s authorities are primarily contained in Part E of the Act (sections 5.51-5.65, 12 U.S.C. §§ 2277a-2277a-14).
The Farm Credit Act provides that FCSIC’s primary purpose is to ensure the timely payment of principal and interest on debt obligations jointly issued by Farm Credit System banks used to fund the operations of the Farm Credit System. The Act establishes FCSIC’s organization and provides it with corporate powers. In addition to insuring timely payment, the Act provides FCSIC with certain other powers and responsibilities, including:
- Determining and collecting insurance premiums;
- Providing discretionary assistance to a system bank or association (by providing loans or contributions, purchasing assets and debt securities, assuming liabilities and facilitating consolidations and mergers) so long as the total cost of assistance does not exceed the alternative cost of liquidating the institution;
- Acting as receiver or conservator for Farm Credit System institutions upon appointment by the FCA Board;
- Examining system institutions (using FCA examiners); and
- Regulating “golden parachute” payments made to departing system institution-related parties when the system institution is insolvent, in conservatorship or receivership, has been assigned a composite 4 or 5 rating under FCA’s supervisory rating system, or is otherwise in troubled condition.
The linked materials are provided for reader convenience but are not the official publication of the materials contained herein. The sources for the official publication of statutory provisions are the Statutes at Large and the United States Code. If there are any inconsistencies between an official publication and those same materials available here, the official publication is controlling.
Regulations issued by the Farm Credit System Insurance Corporation (FCSIC) Board cover administrative issues for FCSIC employees, the Privacy Act, assessment of FCS institution premiums, collection of claims, golden parachutes, and indemnification payments.
These regulations are found in parts 1400–1403, 1408, and 1410–1412 of title 12 of the Code of Federal Regulations (CFR). The CFR catalogs the general and permanent rules published in the Federal Register by the executive departments and agencies of the Federal Government. Each of the CFR’s titles represents a broad area subject to Federal regulation. Title 12 covers banks and banking.
The rules in part 1401 of title 12 supplement rules provided in part 4001 of title 5, which covers standards of ethical conduct for Farm Credit System Insurance Corporation personnel. See “Supplemental Standards of Ethical Conduct for Employees of the Farm Credit System Insurance Corporation." (pdf)
FCA develops regulations (rules) implementing the Farm Credit Act and other relevant laws which address the Farm Credit System’s public mission and promote the safe and sound operation of the System. Certain FCSIC regulations make reference to FCA regulations.
The sources for the official publication of regulations are the Federal Register and the Code of Federal Regulations. If there are any inconsistencies between an official publication and those same materials available here, the official publication is controlling.