71142 Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 

Register on May 14, 2004, (69 FR 

26819)(FRL–7357–9) explains that in 

conducting these programs, EPA is 

tailoring its public participation process 

to be commensurate with the level of 

risk, extent of use, complexity of issues, 

and degree of public concern associated 

with each pesticide. Due to its uses, 

risks, and other factors, sethoxydim was 

reviewed through the modified 4–phase 

process. Through this process, EPA 

worked extensively with stakeholders 

and the public to reach the regulatory 

decisions for sethoxydim. 

The reregistration program is being 

conducted under Congressionally 

mandated time frames, and EPA 

recognizes the need both to make timely 

decisions and to involve the public. The 

Agency is issuing the sethoxydim RED 

for public comment. This comment 

period is intended to provide an 

additional opportunity for public input 

and a mechanism for initiating any 

necessary amendments to the RED. All 

comments should be submitted using 

the methods in Unit I. of the 

SUPPLEMENTARY INFORMATION, and must 

be received by EPA on or before the 

closing date. These comments will 

become part of the Agency Docket for 

sethoxydim. Comments received after 

the close of the comment period will be 

marked ’’late.’’ EPA is not required to 

consider these late comments. 

The Agency will carefully consider all 

comments received by the closing date 

and will provide a Response to 

Comments Memorandum in the Docket 

and electronic EDOCKET. If any 

comment significantly affects the 

document, EPA will also publish an 

amendment to the RED in the Federal 

Register. In the absence of substantive 

comments requiring changes, the 

sethoxydim RED will be implemented 

as it is now presented. 

B. What is the Agency’s Authority for 

Taking this Action? 

Section 4(g)(2) of FIFRA as amended 

directs that, after submission of all data 

concerning a pesticide active ingredient, 

‘‘the Administrator shall determine 

whether pesticides containing such 

active ingredient are eligible for 

reregistration,’’ before calling in 

product-specific data on individual enduse products and either reregistering 

products or taking other ‘‘appropriate 

regulatory action.‘‘

Section 408(q) of the Federal Food, 

Drug, and Cosmetic Act (FFDCA), 21 

U.S.C. 346a(q), requires EPA to review 

tolerances and exemptions for pesticide 

residues in effect as of August 2, 1996, 

to determine whether the tolerance or 

exemption meets the requirements of 

section 408(b)(2) or (c)(2) of FFDCA. 

This review is to be completed by 

August 3, 2006. 

List of Subjects 

Environmental protection, Pesticides 

and pests. 

Dated: November 14, 2005. 

Peter Caulkins, 

Acting Director, Special Review and 

Reregistration Division, Office of Pesticide 

Programs. 

[FR Doc. 05–22994 Filed 11–23–05; 8:45 am] 

BILLING CODE 6560–50–S 

ENVIRONMENTAL PROTECTION 

AGENCY 

[FRL–8002–1] 

Northeast Chemical Superfund Site; 

Notice of Proposed Settlement 

AGENCY: Environmental Protection 

Agency. 

ACTION: Notice of Cost Recovery 

Settlement. 

SUMMARY: Under Section 122(h) (1) of 

the Comprehensive Environmental 

Response, Compensation, and Liability 

Act (CERCLA), the Environmental 

Protection Agency has entered into a 

Cost Recovery Settlement with Solitron 

Devices, Inc. to settle liability at the 

following Superfund Sites: Solitron 

Devices Superfund Site located in 

Riviera Beach, Florida; Solitron 

Microwave Superfund Site located in 

Port Salerno, Florida; Petroleum 

Products Corporation Superfund Site 

located in Pembroke Park, Florida; City 

Industries, Inc. Superfund Site located 

in Orlando, Florida; and Casmalia 

Resources Superfund Site located in 

Santa Barbara County, California. EPA 

will consider public comments on the 

settlement until December 27, 2005. 

EPA may withdraw from or modify the 

proposed settlement should such 

comments disclose facts or 

considerations which indicate the 

proposed settlement is inappropriate, 

improper or inadequate. 

Copies of the proposed settlement are 

available from: Ms. Paula V. Batchelor, 

U.S. Environmental Protection Agency, 

Region 4, Superfund Enforcement & 

Information Management Branch, Waste 

Division, 61 Forsyth Street, SW., 

Atlanta, Georgia 30303, 404/562–8887, 

Batchelor.Paula@epa.gov. 

Written or e-mail comments may be 

submitted to Ms. Batchelor at the above 

address within the 30 days specified 

above. 

Dated: November 4, 2005. 

Rosalind H. Brown, 

Chief, Superfund Enforcement & Information 

Management Branch, Waste Management 

Division. 

[FR Doc. 05–23274 Filed 11–23–05; 8:45 am] 

BILLING CODE 6560–50–P 

FARM CREDIT ADMINISTRATION 

Farm Credit Administration Board 

Policy Statements 

AGENCY: Farm Credit Administration. 

ACTION: Notice. 

SUMMARY: The Farm Credit 

Administration (FCA) Board recently 

undertook a review of all FCA policy 

statements, resulting in their repeal, 

amendment or readoption. All 15 

current policy statements are included 

in this notice. 

DATES: The effective date is indicated on 

each individual policy statement set 

forth below. 

FOR FURTHER INFORMATION CONTACT: 

Wendy Laguarda, Senior Counsel, Office 

of General Counsel, Farm Credit 

Administration, 1501 Farm Credit Drive, 

McLean Virginia 22102–5090, (703) 

883–4020, TTY (703) 883–4020. 

SUPPLEMENTARY INFORMATION: A list of 

all current FCA Board policy statements 

and the text of each are set forth below 

in their entirety: 

FCA Board Policy Statements 

FCA–PS–34 Disclosure of the Issuance and 

Termination of Enforcement Documents 

FCA–PS–37 Communications During 

Rulemaking 

FCA–PS–41 Alternative Means of Dispute 

Resolution 

FCA–PS–44 Travel 

FCA–PS–53 Examination Philosophy 

FCA–PS–59 Regulatory Philosophy 

FCA–PS–62 Equal Employment 

Opportunity Programs and Diversity 

FCA–PS–64 Rules for the Transaction of 

Business of the Farm Credit 

Administration Board 

FCA–PS–65 Release of Consolidated 

Reporting System Information 

FCA–PS–67 Nondiscrimination on the 

Basis of Disability in Agency Programs 

and Activities 

FCA–PS–68 FCS Building Association 

Management Operations Policies and 

Practices 

FCA–PS–71 Disaster Relief Efforts by Farm 

Credit Institutions 

FCA–PS–72 Financial Institution Rating 

System (FIRS) 

FCA–PS–77 Borrower Privacy 

FCA–PS–78 Official Names of Farm Credit 

Institutions 

Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 71143 

Disclosure of the Issuance and 

Termination of Enforcement Documents 

FCA–PS–34 

Effective Date: 27–JAN–05. 

Effect on Previous Actions: BM–13–

JAN–94–03 (FCA–PS–57). 

Source of Authority: None. 

The Farm Credit Administration 

(FCA) Board finds that it is in the best 

interest of the Farm Credit System 

(FCS), the FCA, and the public that 

certain information concerning the 

issuance and any subsequent 

termination of final enforcement orders, 

formal agreements and conditions 

imposed in writing (Enforcement 

Documents) be disclosed to the FCS and 

the public. Specifically, the basis for 

disclosing this information is to 

communicate to the FCS and the public 

that the FCA is effectively using its 

enforcement powers through the 

issuance of Enforcement Documents and 

the subsequent termination of such 

Enforcement Documents, when 

appropriate. 

The FCA Board Hereby Adopts the 

Following Policy Statement 

Upon issuance or termination of any 

Enforcement Document, the Office of 

Examination shall notify the Director of 

the Office of Communications and 

Public Affairs (OCPA) of such event. 

OCPA shall prepare, for release to the 

FCS and the public, a disclosure, subject 

to the concurrence of the Office of 

General Counsel (OGC). If the OGC 

determines that a disclosure adversely 

affects a civil or criminal investigation, 

the disclosure will not be made. The 

disclosure shall include the information 

described below: 

1. The type and date of action taken; 

2. The type of institution to which the 

action pertains, or if the action pertains 

to an individual or entity, the 

relationship between the individual or 

entity and the institution; and 

3. A description of the essential facts 

pertaining to the action, excluding 

information that would identify the 

institution and/or persons involved. 

Dated this 27th day of January, 2005. 

By Order of the Board. 

Jeanette C. Brinkley, 

Secretary to the Board. 

Communications During Rulemaking 

FCA–PS–37 

Effective Date: 27–JAN–05. 

Effect on Previous Actions: Replaces 

previous Farm Credit Administration 

(FCA or Agency) Board policy on public 

communications during a rulemaking, 

adopted March 25th, 1992. See 57 FR 

11083, April 1, 1992. 

Source of Authority: None. 

The FCA Board finds that it is in the 

public interest and consistent with the 

requirements of the Administrative 

Procedure Act to revise its policy on 

communications with the public during 

the rulemaking process. 

The FCA Board Hereby Adopts the 

Following Policy Statement 

In keeping with the need to ensure an 

open, freely accessible, and wellinformed rulemaking process while 

balancing the need for impartiality and 

fairness, the FCA adopts the following 

guidelines governing substantive oral 

communications between the public 

and Board members and staff during the 

course of a related rulemaking. 

Before a Rulemaking Begins 

Unrestricted communication with the 

public before rulemaking begins 

supports and promotes the Agency’s 

efforts to design creative and effective 

regulatory policy. No specific guidelines 

apply to that communication. 

From Publication of Notice of Proposed 

Rulemaking to the End of the Comment 

Period 

After a particular rulemaking has 

begun with publication of a notice of 

proposed rulemaking (including 

publication of an advance notice of 

proposed rulemaking), FCA encourages 

members of the public to provide 

written comments during the public 

comment period. All written comments 

are placed in a public file, where they 

are available for examination and 

copying during normal business hours. 

The comments receive careful 

consideration and become part of the 

public record of the rulemaking. 

Where appropriate, FCA may also 

conduct public hearings or open 

meetings to take testimony or hold 

discussions on a rulemaking. Such 

opportunities for comment from the 

public will be announced in advance 

and the comments received will be 

placed in the public rulemaking file. 

Substantive oral communications 

during the comment period between 

FCA personnel, including Board 

members and staff, and members of the 

public regarding the subject of an 

ongoing rulemaking will be summarized 

in writing and placed in the public 

rulemaking file. While FCA personnel 

are always available to explain or clarify 

proposed rules, if an individual wants 

to engage FCA personnel in substantive 

discussion concerning a published 

proposed rule, he or she should first file 

a written comment covering the matter 

to be discussed, particularly if he or she 

has not already filed a written comment. 

If new substantive comments are 

discussed, FCA staff will reduce the 

substance of such comments to writing, 

promptly place it in the public 

rulemaking file, and urge the individual 

to submit a written comment. 

From the Close of the Comment Period 

to the Adoption of the Final Rule 

From the close of the comment period 

until adoption of the final rule, 

substantive discussions between 

members of the public and FCA 

personnel relating to the proposed rule 

should be curtailed. In the interest of 

fairness, if new facts or arguments must 

be brought to the attention of the FCA, 

the communication must be in writing 

so that it can promptly be placed in the 

public rulemaking file. 

FCA believes these guidelines will 

help ensure a complete rulemaking 

record for future agency consideration 

of the rule or in the event of court 

review. Further, FCA strongly believes 

that the rulemaking process must be 

open and evenhanded in order to avoid 

even the appearance of impropriety or 

undue influence that might arise from 

private communication during certain 

periods. Finally, if a substantive 

comment on a proposed rule were 

transmitted to FCA in a private 

communication that did not become 

part of the public record, other members 

of the public would not have an 

opportunity to respond to any new 

arguments or facts contained in that 

communication. Because FCA believes 

that its rulemaking process benefits 

from give and take among commenters 

who are able to consider each others’

comments, this policy statement 

requires all comments to be placed in 

the public rulemaking file. 

This policy statement does not apply 

to public communications regarding any 

rulemaking issue unless and until the 

matter becomes the subject of a notice 

of proposed rulemaking. Nothing in the 

policy statement is meant to affect the 

ability of FCA to use negotiated 

rulemakings, open meetings or other 

types of public forums to augment its 

rulemaking under section 553 of the 

Administrative Procedure Act. 

Dated this 27th day of January, 2005. 

By Order of the Board. 

Jeanette C. Brinkley, 

Secretary to the Board. 

Alternative Means of Dispute 

Resolution 

FCA–PS–41 

Effective Date: 27–JAN–05. 

Effect on Previous Action: Originally 

adopted 16–JUL–92 (see 57 FR 33198, 

71144 Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 

July 27, 1992); amended 30–MAY–96; 

amended 10–FEB–97. 

Source of Authority: Administrative 

Dispute Resolution Act of 1996, Public 

Law 104–320, 110 Stat. 3870 (1996), and 

codified at 5 U.S.C. 571 et seq. 

The Administrative Dispute 

Resolution Act of 1996 (Act), addresses 

the concern that traditional methods of 

dispute resolution, such as litigation 

and administrative adjudication, have 

become increasingly time-consuming 

and expensive. The Act authorizes and 

encourages greater use of alternative 

means of dispute resolution (ADR), 

requiring each Federal agency to adopt 

a policy addressing the use of ADR. 

ADR consists of informal, voluntary 

procedures used by parties who seek to 

resolve their disputes by consent. Such 

procedures include, but are not limited 

to, mediation, conciliation, facilitation, 

fact-finding, arbitration, and mini-trials, 

or any combination thereof. By 

emphasizing the common goals of the 

parties and fostering an atmosphere of 

cooperation, ADR can offer a less 

contentious and more expeditious 

alternative to traditional methods of 

dispute resolution such as litigation and 

administrative adjudication. 

The use of ADR in appropriate 

circumstances is consistent with the 

Farm Credit Administration’s (FCA or 

Agency) mission as an agency. To 

promote a safe and sound, competitive 

Farm Credit System, the FCA always 

strives to effectively and efficiently 

manage its resources. By expediting the 

resolution of certain disputes, ADR can 

reduce the FCA’s transaction costs, 

increase the FCA’s productivity, and 

help the FCA accomplish its goals. 

The FCA Board Hereby Adopts the 

Following Policy Statement 

It is the policy of the FCA to resolve 

disputes in an effective and efficient 

manner. Many of the disputes 

encountered by the FCA are resolved 

most effectively and efficiently through 

settlement negotiations between the 

FCA and the other parties to the 

disputes prior to the initiation, or in the 

early stages of, more formal litigation or 

administrative adjudication. The FCA 

will continue to use settlement 

negotiations as a method of dispute 

resolution. 

In addition, the FCA will consider 

whether it is appropriate to use ADR 

when a dispute arises. In assessing the 

advisability of using ADR procedures, as 

defined in 5 U.S.C. 571(3), the FCA will 

consider whether such procedures are 

likely to reduce the FCA’s transaction 

costs, increase the FCA’s productivity, 

and help the FCA accomplish its goals 

of effective regulations and policies and 

the enhancement of FCA’s effectiveness 

and cost efficiency. The FCA will also 

consider the factors set forth in 5 U.S.C. 

572(b) in deciding whether it is 

appropriate to use such ADR 

procedures. 

The FCA’s Dispute Resolution 

Specialist (ADR Specialist), designated 

by the Chairman, is responsible for the 

implementation of this policy statement. 

The ADR Specialist is available to assist 

FCA personnel in considering the 

appropriate application of ADR 

procedures. Before deciding whether it 

is appropriate to use an ADR procedure, 

FCA personnel will consult with, and 

obtain the concurrence of, the ADR 

Specialist or his or her designee. 

The ADR Specialist and those FCA 

personnel involved in resolving 

disputes are encouraged to attend 

educational and training programs 

relating to the theory and application of 

ADR on a regular basis, as the FCA 

budget permits. 

Based on the voluntary nature of 

ADR, all parties to a dispute must agree 

to use an ADR procedure before it can 

be initiated. 

Dated this 27th day of January, 2005. 

By Order of the Board. 

Jeanette C. Brinkley, 

Secretary to the Board. 

Travel 

FCA–PS–44 

Effective Date: 27–JAN–05. 

Effect on Previous Actions: Originally 

adopted 13–JUN–91; amended 12–

NOV–92. 

Source of Authority: 5 U.S.C. 7351, 

7353; 5 U.S.C. App. (Ethics in 

Government Act of 1978); E.O. 12674, 

54 FR 15159, 3 CFR, 1989 Comp., p. 

215, as modified by E.O. 12731, 55 FR 

42547, 3 CFR, 1990 Comp., p. 306; 12 

U.S.C. 2242 (Section 5.8 of the Farm 

Credit Act of 1971, as amended), 41 CFR 

Part 301. 

The FCA Board Hereby Adopts the 

Following Policy Statement 

Members of the Farm Credit 

Administration (FCA or Agency) Board 

(we) are not subject to the same 

requirements regarding allowances for 

travel and subsistence that generally 

apply to officers and employees of the 

United States (section 5.8 of the Farm 

Credit Act of 1971, as amended). 

Nevertheless, it is the general policy of 

the FCA Board (Board) that we will 

travel on official business in the most 

economical fashion reasonable under 

the circumstances. 

We are subject to Federal laws, rules, 

and Executive Orders relating to 

conflicts of interest that may result from 

accepting gifts, including travel related 

expenses, from outside sources. 

Generally, we may not accept anything 

of value from: 

• A person seeking official action 

from, doing business with, or 

conducting activities regulated by the 

FCA, or 

• A person whose interests may be 

substantially affected by the 

performance or nonperformance of our 

official duties. 

Such persons are prohibited sources. 

(See Executive Order 12674, as 

amended; 5 U.S.C. 7353; and 5 CFR Part 

2635, the Executive Branch-wide 

standards of ethical conduct issued by 

the Office of Government Ethics.) An 

organization is also a prohibited source 

if more than half of its members are 

prohibited sources. 

The gift rule under the standards of 

ethical conduct and the Agency’s gift 

acceptance authority at 31 U.S.C. 1353 

outline the limited circumstances in 

which we may accept gifts and the 

payment of travel expenses from outside 

sources. Unless an exception applies, 

ethics rules prevent us from accepting 

gifts offered to us because of our official 

position. Under no circumstances may 

we accept anything of value in return 

for being influenced in the performance 

of an official act. The aim of these rules 

is to prevent an actual conflict of 

interest or the appearance of a conflict 

and to uphold public confidence in the 

integrity of the Government and the 

Agency. 

Except as noted above, third parties 

may not pay for official Agency 

expenditures. Because the Agency is 

responsible for the cost of conducting 

official business, we will ensure that the 

Agency is billed directly for travel 

expenses whenever possible (for 

example, by using our Government 

credit card for travel expenses). On 

those occasions when direct Agency 

payment is impossible or impractical 

(for example, a large group business 

dinner arranged and paid for in advance 

by the organizer), we will promptly 

notify the Agency of the obligation and 

ensure that the payer is promptly 

reimbursed. We recognize that it is 

important not to create the impression 

that a third party, particularly a 

prohibited source, is paying for our 

expenses. 

Travel 

Transportation 

We will use less than first-class 

accommodations for all modes of 

transportation except in circumstances 

where: 

Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 71145 

1. We must use first-class 

accommodations because no other space 

accommodations are reasonably 

available or where other practical 

considerations exist (such as to 

accommodate a disability or other 

special need); 

2. Exceptional security circumstances 

require it; 

3. The conduct of Agency business 

requires it; or 

4. We receive first-class travel benefits 

on an unsolicited basis from a carrier 

(such as free first-class coupons) and the 

benefit cannot be used by the Agency 

either in the present or the future, 

cannot be redeemed for cash value, and 

does not require the redemption of 

official miles. Under these 

circumstances, we can use the first-class 

benefit for either official or personal 

travel. 

We will use a commercial charter 

flight at Agency expense only when no 

commercially scheduled flights are 

available in time to meet the 

requirements of the travel or when the 

charter flight would be more economical 

than a commercial flight. We will avoid 

the use of private aircraft whenever 

possible and use them only where 

commercial or charter flights are not 

reasonably available or would impose 

undue hardships. When reporting travel 

expenses, we must adequately justify 

the use of a commercial charter flight, 

private aircraft, or first-class 

accommodations. 

Lodging 

When available and practical, we will 

book lodging at the Government rate or 

another available reduced rate at hotels 

and motels. When attending a 

convention, meeting, or other official 

activity, we ordinarily obtain lodging at 

the hotel or motel holding the activity 

even if reduced rates are available 

elsewhere. We may book more than one 

room when necessary for the conduct of 

official business on the premises. 

The Agency will not ordinarily 

reimburse us for lodging in the 

metropolitan Washington, DC, area. 

When conducting business in and 

around the official duty station in 

McLean, Virginia, we ordinarily reside 

at home. 

Other Expenses for Official Activities 

The FCA will reimburse us for the 

usual and reasonable expenses we incur 

as a consequence of official activities in 

the Washington, DC, metropolitan area 

and in other locations. The Agency will 

allow the repayment of expenses for: 

1. Transportation costs; 

2. Meal costs; 

3. Registration fees or other fees 

assessed for attendance or participation; 

4. The cost of miscellaneous supplies 

needed to participate in a particular 

function or activity; and 

5. Other costs we incur by 

participating in official activities. 

The Agency will not allow 

reimbursement of expenses for official 

activity incurred on behalf of other 

persons, including relatives, except as 

provided in the Board policy on Official 

Function (Representation and 

Reception) Expenses. 

Form of Payment 

We will arrange for official travel 

using the Agency’s travel management 

system whenever possible. We may use 

cash to pay for official travel expenses 

and seek repayment from the Agency 

afterwards but, whenever possible, we 

will use the Government-issued credit 

card for all official travel expenses. 

Receipts 

When filing claims for reimbursement 

of travel expenses, we will provide 

receipts for expenses as normally 

required of other FCA employees under 

the Federal Travel Regulation, which 

currently requires receipts for all 

lodging and travel expenses over $75. 

However, failure to provide a receipt as 

normally required is not grounds for 

denial of a claim. If we do not have a 

receipt, we will provide a statement 

explaining the nature and amount of the 

expense and the reason for not having 

a receipt. 

Combining Official Business Travel 

With Personal Activities 

Although it is permissible to engage 

in personal activities while on official 

travel, the purpose of the trip must 

always be the need to conduct official 

business. The Agency pays for travel 

and related expenses incurred in 

performing official business. However, 

the Agency may not pay for personal 

expenses incurred while on official 

travel. Therefore, it is important to 

record and allocate expenses carefully 

to ensure that official expenses are 

clearly differentiated from personal 

expenses. Proper handling of Agency 

expenses is always important, but 

particularly so when engaging in 

personal activities while on official 

Agency business. 

We are aware that, in certain 

circumstances, engaging in personal 

activities while on official travel could 

create an appearance that personal 

activities, not official business, 

prompted the trip. When we take a trip 

to conduct official business, it is usually 

clear from the nature of our business 

that the trip is proper and necessary. If 

we are concerned that personal 

activities during the trip might suggest 

otherwise, we will consult the DAEO to 

avoid a possible appearance of 

impropriety. We understand that 

engaging in official travel that takes us 

to a given destination (for example, our 

home state) on a disproportionate basis 

may raise questions about whether the 

travel truly is necessary. Again, we will 

consult with the DAEO about such 

concerns. 

Dated this 27th day of January, 2005. 

By Order of the Board. 

Jeanette C. Brinkley, 

Secretary to the Board. 

Examination Philosophy 

FCA–PS–53 

Effective Date: 08–JUN–05. 

Effect on Previous Action: Responds 

to NV 93–04 (15–JAN–93) and Amends 

FCA Policy Statement 53 dated 15–JUL–

93. 

Source of Authority: Sections 5.9 and 

5.19 of the Farm Credit Act of 1971, as 

amended. 

The Farm Credit Administration (FCA 

or Agency) Board Hereby Adopts the 

Following Policy Statement 

This policy provides a general 

philosophy and direction for the 

examination and oversight of the Farm 

Credit System (System). 

The FCA Board provides for the 

examination and supervision of each 

System institution in accordance with 

the Farm Credit Act of 1971, as 

amended (the ‘‘Act’’). The Board fulfills 

this responsibility primarily through the 

Office of Examination (OE) The FCA 

fulfills its supervision and examination 

responsibilities for Farmer Mac, a 

separate government-sponsored 

enterprise, through its Office of 

Secondary Market Oversight. OE 

develops oversight plans, conducts 

examinations, monitors the System’s 

condition, current and emerging risks, 

and develops supervisory strategies to 

ensure that the System operates in a safe 

and sound manner and fulfills its public 

policy purpose. The Act also provides 

that the Farm Credit System Insurance 

Corporation (FCSIC) Board of Directors 

should utilize FCA examiners to 

conduct examinations of System 

institutions, to the extent practicable. 

Oversight and Examination 

The FCA Board directs the 

maintenance of a ‘‘risk-based’’ approach 

to oversight and examination for System 

institutions, which maximizes OE’s 

effectiveness and strategically addresses 

the System’s safety and soundness and 

71146 Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 

compliance with laws and regulations. 

Examination resources will be allocated 

to matters of highest risk or potential 

risk to the System at large and specific 

institutions to proactively address 

emerging risks. The amount of 

examination resources devoted to a 

System institution and the scope of an 

examination will depend on an 

institution’s ability to identify and 

manage its risks. Accordingly, oversight 

and examination efforts will be 

heightened and accompanied by 

appropriate preventive, corrective, or 

enforcement actions when institutions 

are unable or unwilling to address 

material unsafe and unsound practices 

or comply with law and regulations. 

This risk-based approach is critical to 

maintaining shareholder, investor, and 

public confidence in the financial 

strength and future viability of the 

System. 

Examination Staff and Communications 

The risk-based approach must 

promote effective communications with 

System institutions. Examiners are an 

essential communication link with 

System institutions through ongoing 

institution oversight, on-site 

examinations, meetings with boards and 

management, and written reports and 

correspondence. The examination 

program shall therefore maintain 

adequately trained examiners who 

understand the unique risks and 

opportunities of agriculture as 

principally a biological industry, 

maintain an appropriate level of 

regulatory and financial industry 

experience and skills, and communicate 

and work effectively with System 

institutions to ensure they remain safe 

and sound and able to fulfill their 

public policy purpose. 

Reporting to the FCA Board 

Annually, the Chief Examiner will 

provide the Board an annual oversight 

and examination plan (plan) for 

approval. This plan will: 

• Assess the condition of and risks 

affecting the System at large and in 

specific institutions; 

• Establish priorities and identify 

staffing, training, and budgetary needs; 

• Include an examination schedule 

that ensures statutory requirements are 

met; and, 

• Include operational objectives and 

strategies for meeting the plan. 

The Chief Examiner will report semiannually to the Board on the status of, 

and proposed adjustments to, the plan. 

The Chief Examiner will also report 

quarterly on the current condition of the 

Farm Credit System, emerging risks, and 

any necessary follow-up strategies. 

Dated this 8th day of June, 2005. 

By Order of the Board. 

Jeanette C. Brinkley, 

Secretary to the Board. 

Regulatory Philosophy 

FCA–PS–59 

Effective Date: 08–JUN–05. 

Effect on Previous Action: Originally 

adopted BM–17–FEB–94–02 (see 59 FR 

32189, June 22, 1994); see also 60 FR 

26034, May 16, 1995. 

Sources of Authority: Farm Credit Act 

of 1971, as amended; 12 U.S.C. 2001 et 

seq. 

The Farm Credit Administration (FCA) 

Board Hereby Adopts the Following 

Policy Statement 

The FCA shall develop regulations 

consistent with its authorities under the 

Farm Credit Act of 1971 (Act), as 

amended, and other relevant statutes. It 

is the FCA Board’s philosophy to (1) 

Promulgate regulations that are 

necessary to implement the law; (2) 

support achievement of the Farm Credit 

System’s (System) public mission; and 

(3) ensure the System’s safety and 

soundness. 

The FCA Board will strive to create an 

environment that promotes the 

confidence of customers and 

shareholders, investors, Congress, and 

the public in the System’s financial 

strength and future viability. The FCA 

Board believes that safe and sound 

operations of System institutions will 

instill: (a) Investor confidence in System 

debt securities, which helps ensure that 

adequate funds are available at 

reasonable rates; and, (b) shareholder/ 

member confidence in each 

cooperatively owned System institution 

by ensuring that sufficient financial 

resources are maintained to support an 

adequate supply of credit and other 

services to its shareholders/members in 

both good and bad times. 

FCA will give high priority to issues 

that enable the System to more 

effectively accomplish its mission and 

to those issues that pose significant risks 

to the successful operation of the 

System, with the intent of ensuring an 

adequate and flexible flow of money 

into rural areas. As such, the FCA Board 

intends to provide System institutions 

with the flexibility consistent with 

changes in law, agriculture, and rural 

America so institutions can offer high 

quality, reasonably priced credit and 

related services to farmers, ranchers, 

their cooperatives, rural residents, and 

other entities upon which farming 

operations are dependent. 

The strategies for accomplishing the 

Board’s regulatory philosophy are as 

follows: 

1. We will develop regulations based 

on a reasoned determination that 

benefits of any proposed regulation 

justify its cost. 

2. We will focus our regulatory efforts 

on issues that address identified risks in 

System institutions or enhance the 

ability of System institutions to better 

meet the needs of agriculture and rural 

America. Preambles to regulations will 

explain the rationale for the regulatory 

approach adopted. 

3. We will utilize diverse approaches 

to encourage public participation in the 

development and review of regulatory 

proposals in appropriate circumstances. 

4. We will emphasize the cooperative 

principles of a farmer-owned 

Government-sponsored enterprise by 

advancing regulatory proposals that 

encourage farmer- and rancherborrowers to participate in the 

management, control, and ownership of 

their institutions. 

5. We will work to eliminate 

unnecessary regulations that impair the 

ability of the System to accomplish its 

mission to serve agriculture and rural 

America and any regulations that are 

unduly burdensome, costly, or not 

based on the law. 

The details of how the FCA will 

implement these strategies will be 

described in the Agency’s Five-Year 

Strategic and Annual Performance Plans 

and in its Unified Agenda. 

Semi-annually, the Director of the 

Office of Policy Analysis (OPA) will 

provide the Board a proposed Unified 

Agenda for approval. The Unified 

Agenda will describe the regulatory 

projects the Agency plans to work on 

during the next 12 month period and 

apply the principles and strategies 

reflected in this policy. Quarterly, the 

OPA Director will report to the Board on 

the status of, and proposed adjustments 

to, regulatory projects scheduled on the 

Unified Agenda. 

Dated this 8th day of June, 2005. 

By Order of the Board. 

Jeannette C. Brinkley, 

Secretary to the Board. 

Equal Employment Opportunity 

Programs and Diversity 

FCA–PS–62 

Effective Date: 12–SEP–02. 

Effect on Previous Action: Updates 

FCA–PS–62 [NV–94–44] 8–3–94. 

Source of Authority: Title VII of the 

Civil Rights Act of 1964, as amended (42 

U.S.C. 2000e et seq.); Age 

Discrimination in Employment Act (29 

U.S.C. 621 et seq.); Rehabilitation Act of 

1973, as amended (29 U.S.C. 721 et 

seq.); Equal Pay Act of 1974 (29 U.S.C. 

206(d)); Civil Service Reform Act of 

Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 71147 

1978 (5 U.S.C. 3112); Executive Order 

11478, as amended on May 2, 2000; 

Executive Order 13145, February 8, 

2000; 29 CFR Part 1614; Equal 

Employment Opportunity Commission 

Management Directives. 

Purpose 

The Farm Credit Administration 

(FCA) Board affirms its commitment to 

Equal Employment Opportunity and 

Diversity (EEOD) and provides guidance 

to Agency management and staff for 

deciding and taking action in these 

critical areas. 

Importance 

Unquestionably, the employees who 

comprise the FCA are its most important 

resource. The Board fully recognizes the 

Agency draws its strength from the 

dedication, experience, and diversity of 

its employees. The Board is firmly 

committed to taking whatever steps are 

needed to protect the rights of its staff 

and to carrying out programs that foster 

the development of each employee’s 

potential. We believe an investment in 

efforts that strongly promote EEOD will 

prevent the conflict and the high costs 

of correction for taking no, or 

inadequate, action in these areas. 

The Farm Credit Administration (FCA) 

Board Adopts the Following Policy 

Statement 

It is the policy of the FCA to prohibit 

discrimination in Agency policies, 

program practices, and operations. 

Employees, applicants for employment, 

and members of the public who seek to 

take part in FCA programs, activities, 

and services will be treated fairly. FCA, 

under the appropriate laws and 

regulations, will: 

• Ensure equal employment 

opportunity based on merit and 

qualification, without discrimination 

because of race, color, religion, sex, age, 

national origin, disability, sexual 

orientation, status as a parent, genetic 

information or participation in 

discrimination or harassment complaint 

proceedings; 

• Provide for the prompt and fair 

consideration of complaints of 

discrimination; 

• Make reasonable accommodations 

for qualified applicants for employment 

and employees with physical or mental 

disabilities under law; 

• Provide an environment free from 

harassment to all employees; 

• Create and maintain an 

organizational culture that recognizes, 

values, and supports employee and 

public diversity; 

• Implement affirmative programs to 

carry out this policy; and 

• Develop objectives within the 

strategic planning process to meet the 

goals of EEOD. 

Affirmative Employment and Diversity 

The FCA intends to be a model 

employer. That is, as far as possible, 

FCA will build and maintain a 

workforce that reflects the rich diversity 

of individual differences evident 

throughout this Nation. The Board 

views individual differences as 

complementary and believes these 

differences can enrich our organization. 

When individual differences are 

respected, recognized, and valued, 

diversity becomes a powerful force that 

can contribute to achieving superior 

results. Therefore, we will create, 

maintain, and continuously improve on 

an organizational culture that fully 

recognizes, values, and supports 

employee diversity. The Board is 

committed to promoting and supporting 

an inclusive environment that provides 

to all employees, individually and 

collectively, the chance to work to their 

full potential in the pursuit of the 

Agency’s mission. We will provide 

everyone the opportunity to develop to 

his or her fullest potential. When a 

barrier to someone achieving this goal 

exists, we will strive to remove this 

barrier. 

The Board expects full cooperation 

and support from everyone associated 

with recruitment, selection, 

development, and promotion to ensure 

such actions are free of discrimination. 

Though staff commitment is important, 

the role of supervisors is paramount to 

success. Agency supervisors must be 

coaches and are responsible for helping 

every employee to develop their talents 

and to give their best efforts in 

contributing to the mission of the FCA. 

Therefore, all supervisors will be 

evaluated on their EEOD achievements 

as part of their overall job performance. 

Workplace Harassment 

It is the policy of the FCA to provide 

a work environment free from unlawful 

discrimination in any form, and to 

protect all employees, male or female, 

from any form of harassment, either 

physical or verbal. The FCA will not 

tolerate harassment in the workplace for 

any reason. The FCA also will not 

tolerate retaliation against any employee 

for reporting harassment or for aiding in 

any inquiry about reporting harassment. 

Disabled Veterans Affirmative Action 

Program (DVAAP) 

A disabled veteran is defined as 

someone who is entitled to 

compensation under the laws 

administered by the Veterans 

Administration or someone who was 

discharged or released from active duty 

because of a service-connected 

disability. 

The FCA is committed to increasing 

the representation of disabled veterans 

within its organization. Our Nation 

owes a debt to those veterans who 

served their country, especially those 

who were disabled because of service. 

To honor these disabled veterans, the 

FCA shall place emphasis on making 

vacancies known to and providing 

opportunities for employing disabled 

veterans. 

Responsibilities 

The Chairman and Chief Executive 

Officer (CEO) is ultimately responsible 

for developing and carrying out all 

EEOD requirements and initiatives in 

accordance with laws and regulations to 

fulfill diversity initiatives in approved 

program plans. 

To help in fulfilling these 

responsibilities the CEO, or designee, 

will select individuals to fill the 

following positions: 

• An EEO Director; 

• Special Emphasis Program 

Managers required by law or regulation; 

and 

• EEO Counselors in sufficient 

number to ensure the needs of each 

Agency office are met. 

Individuals selected for these 

positions will: 

• Perform duties as determined by the 

CEO, and as formally expressed in 

position descriptions or individual 

performance rating elements, as 

appropriate; 

• Serve on a collateral-duty basis—

the CEO will decide the percent of time 

devoted to these collateral duties, which 

may be adjusted over time as 

circumstances and program 

requirements dictate; 

• Attend appropriate training in the 

areas they have responsibility for; and 

• Develop, monitor progress, report 

on, and periodically update program 

plans in their respective areas of 

responsibility. 

The CEO or EEO Director may also 

establish standing committees to deal 

with specific issues as they arise. The 

Head of each Agency office will provide 

support to the individuals identified 

above on an as needed basis upon 

request from the EEO Director. 

Dated this 12th day of September, 2002. 

By Order of the Board. 

Jeanette C. Brinkley, 

Acting Secretary to the Board. 

71148 Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 

Rules for the Transaction of Business of 

the Farm Credit Administration Board 

FCA–PS–64 

Effective Date: 27–JUN–05. 

Effect on Previous Action: Originally 

adopted by NV–94–05 (07–FEB–

94)[FCA–PS–58]; corrected by memo 

09–FEB–94; amended by NV–95–03 

(13–JAN–95)[FCA–PS–64]; amended by 

NV–95–18 (20–MAR–95); amended by 

NV–95–46 (9–AUG–95); amended by 

BM–24–OCT–95–02; amended by NV–

95–69 (02–JAN–96). See also 58 FR 

6633, Feb. 1, 1993 and 59 FR 17537, 

Apr. 13, 1994; reaffirmed by NV–96–22 

(30–MAY–96); amended by NV–96–36 

(26–AUG–96); amended by NV–98–16 

(8–MAY–98); amended by NV–99–09 

(16–MAR–99); amended by NV–99–25 

(24–SEP–99). 

Source of Authority: Sections 5.8, 5.9, 

5.10, 5.11 and 5.17 of the Farm Credit 

Act of 1971, as amended. 

The Farm Credit Administration 

(FCA) Board Hereby Adopts the 

Following Policy Statement: 

Rules for the Transaction of Business of 

the Farm Credit Administration Board 

Purpose, Scope, and Definitions 

Section 1. Purpose and Scope. These 

Rules adopted under section 5.8(c) of 

the Farm Credit Act of 1971, as 

amended (Act), concerning the 

transaction of business of the Farm 

Credit Administration (FCA) Board 

(Board) supplement the statutes and 

regulations that govern the procedures 

and practice of the Board (including, 

without limitation, the Act, the 

Sunshine Act, and FCA regulations, 12 

CFR 600 et seq.). Unless otherwise 

provided in these Rules, or relevant 

statutes or regulations, this Board will 

transact its business in accordance with 

Robert’s Rules of Order (Newly Revised) 

(10th Edition). 

Section 2. Definitions, Reporting 

Relationships, and Performance 

Appraisals. 

• ‘‘Act’’ means the Farm Credit Act of 

1971, as amended. 

• ‘‘Board Member’’ means each of the 

three individuals appointed by the 

President, by and with the advice and 

consent of the Senate, to serve as 

Members of the Board, including the 

Chairman, unless the context requires 

otherwise. Each Board Member 

appraises the performance of his or her 

staff. 

• ‘‘Chairman’’ means the Board 

Member designated by the President to 

serve as Chairman of the Board. The 

Chairman also serves as the Agency’s 

Chief Executive Officer (CEO) and is 

designated by the Director of the Office 

of Management and Budget to serve as 

Head of the Agency. After consultation 

with the other Board Members, the 

Chairman appraises the performance of 

the Secretary, Inspector General, EEO 

Director, Designated Agency Ethics 

Official, Senior Agency Official, and all 

Office Directors reporting directly to 

him or her. 

• ‘‘Designated Agency Ethics 

Official’’ means an employee of the FCA 

designated by the Head of the Agency to 

administer the provisions of Title I of 

the Ethics in Government Act of 1978, 

to coordinate and manage the Agency’s 

ethics program, and to provide liaison 

with the Office of Government Ethics on 

all aspects of FCA’s ethics program. The 

DAEO reports directly to the Chairman 

on the Agency’s ethics program. 

• ‘‘Equal Employment Opportunity 

(EEO) Director’’ means an employee of 

the FCA designated by the Head of the 

Agency to administer the provisions of 

the Agency’s EEO program as set forth 

in 29 CFR Part 1614. 

• ‘‘General Counsel’’ means an 

employee of the FCA who serves as the 

chief legal officer of the Board. The 

General Counsel reports to the 

Chairman concerning administrative 

matters and to the FCA Board on 

matters of Agency policy. By the nature 

of the position the General Counsel, as 

appropriate and necessary, maintains 

special advisory relationships in 

confidence with the individual Board 

Members. The General Counsel must 

also keep the FCA Board fully informed 

of all litigation in which the Agency is 

involved. 

• ‘‘Office Director’’ means an 

employee of the FCA serving as head of 

an FCA Office, excluding the Inspector 

General unless specified. 

• ‘‘Secretary’’ means an employee of 

the FCA who serves as Secretary to the 

Board as appointed by the Chairman. 

The Secretary, or another FCA employee 

designated by the Chairman, serves as 

the parliamentarian for the Board. The 

Secretary keeps permanent and 

complete records and minutes of the 

acts and proceedings of the Board. 

• ‘‘Senior Agency Official’’ means an 

employee of the FCA in a senior 

position other than Office Director, such 

as a Chief of Staff or Chief Operating 

Officer. The Senior Agency Official 

appraises the performance of staff that 

report directly to him or her. The 

Chairman, in consultation with the 

other Board Members, reviews the 

performance appraisals conducted by 

the Senior Agency Official. 

• ‘‘Sunshine Act’’ means the 

Government in the Sunshine Act, 5 

U.S.C. 552b. 

Amendments 

Section 1. The business of the Board 

will be transacted in accordance with 

these Rules, which may be amended 

from time to time: Provided, however, 

that upon agreement of at least two 

Board Members convened in a duly 

called meeting, the Rules may be 

waived in any particular instance, 

except that action may be taken on 

items at a Special Meeting only in 

accordance with Part I, Article I, § 3(b) 

of this policy. 

Section 2. These Rules may be 

changed or amended by the concurring 

vote of at least two Board Members 

upon notice of the proposed change or 

amendments having been given at least 

thirty days before such vote. 

Section 3. These Rules will be 

reviewed by the Board at least every five 

years or as needed. 

Part I—Rules for the FCA Board 

Meetings 

Article I. Board Meetings. 

Article II. Board Action. 

Article III. Board and Chairman Delegations. 

Article I 

Board Meetings 

Section 1. Sunshine Act. All FCA 

Board meetings will be announced and 

conducted in conformance with the 

Government in Sunshine Act. 

Section 2. Presiding Officer. The 

Chairman will preside at each meeting. 

In the event the Chairman is 

unavailable, the other Board Member 

from the Chairman’s political party will 

preside. If there is no other Board 

Member from the Chairman’s political 

party, then the Board Member serving 

the longest on the Board will preside. 

Section 3. Calls and Agenda. 

(a) Regular Meeting. The Secretary, at 

the direction of the Chairman, issues a 

call for items for the agenda to the other 

Board Members and the Office Directors 

of FCA. The Secretary provides to the 

Chairman a list of all the items 

submitted, including a list of 

outstanding notational votes and 

matters voted ‘‘not appropriate for 

notational vote.’’ The Chairman then 

establishes the agenda to be published 

in the Federal Register at least one week 

before the meeting date. At each 

meeting, the Board votes to approve or 

amend the agenda established by the 

Chairman. The Board may amend the 

agenda to add items that the Board 

Members believe need to be considered 

at that meeting. 

(b) Special Meeting. Special meetings 

of the Board may be called: 

(1) By the Chairman; or 

(2) By the other two Board Members; 

or 

Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 71149 

(3) If there is at the time a vacancy on 

the Board, by a single Board Member. 

Any call for a Special Meeting will 

specify the business to be transacted 

and state the place and time of such 

meeting. No business will be brought 

before a Special Meeting that has not 

been specified in the notice of call of 

such meeting without the unanimous 

consent of all Board Members. 

(c) Notice. The Secretary will give 

appropriate notice of any and all 

meetings and make the call for Special 

meetings. Reasonable efforts to provide 

such notice to Board Members will be 

made for all meetings of the Board, but 

failure of notice will in no case 

invalidate a meeting or any action taken 

during that meeting. 

Section 4. Board Materials. The 

Secretary will distribute complete Board 

Briefing Books to each Board Member at 

least two full business days before any 

Regular Meeting. Unless agreed to by all 

Board Members, no vote may be taken 

on an issue unless the necessary 

material has been provided to the Board 

Members not less than twenty-four 

hours before the meeting to consider 

such issue. 

Section 5. Supporting Documentation. 

The Secretary will maintain one copy of 

all Board Briefing Book material. All 

copies of the Board Briefing Book 

material for Closed Sessions provided to 

anyone other than the Secretary will be 

returned to the Secretary for disposal or 

maintained in a secure location 

approved by the Secretary. One copy of 

each Executive Summary provided to a 

Board Member will be provided to and 

maintained by the Secretary. Board 

Briefing Books and Executive 

Summaries are not part of the minutes 

of the Board unless expressly 

incorporated therein. 

Section 6. Telephone Conference. Any 

Board Member, including the Chairman, 

may participate in a meeting of the 

Board through the use of conference call 

telephone or similar equipment, 

provided that all persons participating 

in the meeting can simultaneously 

speak to and hear each other. Any Board 

Member so participating will be deemed 

present at the meeting for all purposes. 

Section 7. Public Attendance. 

(a) Attendance. Members of the public 

may attend all meetings of the Board 

except those meetings or portions of 

meetings that are closed as directed by 

the Board, consistent with the Sunshine 

Act. 

(b) Public Appearances Before the 

Board. While members of the public are 

invited and encouraged to attend Board 

meetings, no member of the public has 

a right to speak in a Board meeting. 

However, the Board may, in its sole 

discretion, permit a member of the 

public to address the Board if he or she 

provides a written request and 

statement covering the intended subject 

matter at least fifteen days before the 

meeting. 

Section 8. Minutes. 

(a) Format. The format of minutes of 

the Board meetings, unless otherwise 

stated in these rules or relevant statutes 

or regulations, will comply with 

Robert’s Rules of Order (Newly Revised) 

(10th Edition) and the Sunshine Act. 

The minutes will clearly identify the 

date, time, and place of the meeting, the 

type of meeting held, whether the 

meeting was open or closed, the identity 

of Board Members present and, where 

applicable, that they participated by 

telephone, and the identity of the 

Secretary and the General Counsel in 

attendance, or, in their absence, the 

names of the persons who substituted 

for them. The minutes will contain a 

separate paragraph for each subject 

matter, and will note all main motions 

or motions to bring a main motion 

before the assembly, except any that 

were withdrawn. The minutes will not 

contain any reference to statements 

made unless a request is specifically 

made that a statement be made a part of 

the record, or if required by the 

Sunshine Act. The minutes of meetings 

will indicate the substance and 

disposition of any notational votes 

completed since the last meeting. 

Except in the case of a voice vote, the 

Secretary will record the vote of each 

Board Member on a question or will 

note a unanimous consent. The 

Chairman and the Secretary will sign 

the minutes of the Board, indicating the 

date of approval by the Board. 

(b) Circulation. The Chairman and 

General Counsel will review draft 

minutes. The Secretary will circulate 

draft minutes to all Board Members one 

week before their consideration at a 

Board Meeting. The Secretary will place 

in all Board Briefing Books copies of the 

minutes of the meetings of the Board 

(Open Session) to be voted on at a Board 

Meeting. The Secretary will place only 

in the Board Briefing Books of the Board 

Members, the Secretary, and the General 

Counsel copies of the minutes of the 

meetings of the Board (Closed Session) 

to be voted on at a Board Meeting. 

Article II 

Board Action 

Section 1. Affirmative Vote Required. 

Action on any matter requires the 

affirmative vote of at least two Board 

Members, except as provided in Article 

III, § 1 of this Part. 

Section 2. Records of Board Action. 

(a) Meetings. The vote of each Board 

Member, including the Chairman, on a 

question voted on at a meeting will be 

recorded in the minutes. The Chairman 

may, if there is no objection, call for a 

voice vote on adjournment or other 

actions. If a voice vote is taken, its result 

will be recorded in the minutes. 

(b) Notational Votes. The Secretary 

will provide a summary of any action 

taken by notational vote to the Board 

Members and Chairman and the action 

taken will be reflected in the minutes of 

the next meeting of the Board. 

Section 3. Notational Voting. 

(a) Nothing in these Rules precludes 

the transaction of business by the 

circulation of written items (notational 

votes) to the Board Members. 

(b) The Board may use notational 

voting procedures to decide any matter 

that may come before it. Any Board 

Member may submit a motion to the 

Secretary for distribution as a notational 

vote. However, in view of the public 

policy of openness reflected in the 

Sunshine Act and the desire to allow 

any Board Member to present 

viewpoints to the other Board Members, 

any Board Member can veto the use of 

the notational voting procedure for the 

consideration of any particular matter 

by voting ‘‘not appropriate for 

notational vote.’’

(c) Upon submission of an item for 

notational vote, the Secretary will 

provide each Board Member a complete 

package of all relevant information and 

a notational vote ballot specifying the 

Board Member making the motion, the 

motion itself, and the deadline for 

return of the ballot. Within ten business 

days of receipt, or earlier if the motion 

requires, each Board Member will act on 

the matter by returning the ballot to the 

Secretary. Each Board Member is to 

indicate his/her position in writing on 

the ballot in the following manner: (1) 

Approve; (2) disapprove; (3) abstain; or 

(4) not appropriate for notational vote. 

(d) No partial concurrences or 

amendments are permitted; however, a 

Board Member may suggest a revision to 

the proponent of the motion, subject to 

compliance with the Sunshine Act, and 

the proponent may withdraw his motion 

at any time before receipt by the 

Secretary of all the ballots of all Board 

Members or the end of the time period 

provided for on the ballot. 

(e) A Board Member who is absent 

from the office may authorize a staff 

member to initial the ballot for him/her, 

provided that the Board Member has a 

designation memorandum on file with 

the Secretary. 

Section 4. Board Records. The 

Secretary will maintain the records of 

the Board including, without limitation, 

71150 Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 

the minutes of the Board meetings and 

notational votes. 

Article III 

Board and Chairman Delegations 

Section 1. Two Vacancies/Authority 

to Act. In the event two Board Members 

are not available by reason of refusal, 

resignation, temporary or permanent 

incapacitation, or death, to perform the 

duties of their offices, the Board hereby 

delegates to the remaining Board 

Member the authority to exercise, in 

his/her discretion, the authorities of the 

FCA granted to the Agency or the Board 

by statute, regulation or otherwise, 

except those authorities which are 

nondelegable. This delegation of 

authority does not include authority to 

establish general policy and promulgate 

rules and regulations, or any delegation 

expressly prohibited by statute. This 

delegation will include but is not 

limited to the exercise of the following 

powers: 

(a) The approval of actions of the 

Farm Credit System (System) 

institutions that are required by statute, 

regulations or otherwise to be approved 

by the FCA or its Board; 

(b) The exercise of all powers of 

enforcement granted to the FCA by 

statute, including but not limited to, the 

authorities contained in 12 U.S.C. 2154, 

2154a, 2183, 2202a, and 2261–2274; and 

(c) Any actions or approvals required 

in connection with the conduct of a 

receivership or conservatorship of a 

System institution. 

Authorities delegated by this Section 

may be redelegated, in writing, at the 

discretion of the remaining Board 

Member, to other FCA officers or 

employees. 

Section 2. National Security 

Emergencies. Pursuant to Executive 

Order 12656, as amended, in the event 

of a national security emergency, if the 

Chairman is unable to perform his or 

her duties for any reason, the Chairman, 

at his or her sole discretion, delegates to 

the following individuals, in the order 

mentioned and subject to being 

available, the authority to exercise and 

perform all the functions, powers, 

authority and duties of the Chairman in 

an acting capacity until such time as 

either the Chairman can resume his/her 

position or, if no longer able to serve as 

Chairman, the President of the United 

States designates a new Chairman: 

(a) Member of the Board of the 

Chairman’s political party; 

(b) If there is no other Board Member 

from the Chairman’s political party, 

then the Board Member serving the 

longest on the Board; 

(c) General Counsel. 

The Chairman or Acting Chairman 

will ensure that FCA has an alternative 

location for its headquarters functions 

in the event a national security 

emergency renders FCA’s headquarters 

inoperative. The Chairman or Acting 

Chairman may establish such branch 

office or offices of the FCA as are 

necessary to coordinate its operations 

with those of other government 

agencies. 

Section 3. Individual Assignments. To 

the extent consistent with law, the 

Board or the Chairman may offer 

another Member of the Board a special 

assignment and define the duties 

incident thereto, and the Chairman may 

delegate to another Board Member 

certain duties and responsibilities of the 

Chairman. 

Section 4. Other Delegations. The 

FCA Board may delegate such 

authorities as it deems necessary and 

appropriate. Such delegations are 

included in Attachments A and B to this 

policy. 

Part II—Board and Staff Governance 

Article I. Board Governance. 

Article II. Staff Governance. 

Article I 

Board Governance 

Section 1. General. The purpose of 

this Part is to ensure the efficient 

operation of the FCA in light of the 

various authorities and operational 

responsibilities of Board and the FCA 

Chairman and CEO. 

The Board recognizes that for the 

Agency to run efficiently, the Chairman/ 

CEO must have sufficient latitude and 

discretion to direct the implementation 

of Board policies and run the Agency’s 

day-to-day affairs. Notwithstanding 

such latitude, the other Board Members 

must have access to staff and must be 

able to request information from staff 

that they find necessary to fulfill their 

policy- and rulemaking responsibilities 

under the Act. 

The Chairman/CEO is always free to 

bring to the Board issues that do not 

require Board action. Conversely, the 

Board may involve itself in operational 

matters ordinarily reserved for the 

Chairman/CEO if it concludes that they 

rise to the level of policy due to their 

sensitivity, seriousness, or controversial 

nature. 

Section 2. Board Authorities. The 

Board, acting as a unit, must manage, 

administer, and establish policies for 

the FCA. The Board specifically 

approves the rules and regulations 

implementing the Act; provides for the 

examination, enforcement, and 

regulation of System institutions; 

provides for the performance of all the 

powers, functions, and duties vested in 

the FCA; and requires any reports 

deemed necessary from System 

institutions. The Board also adopts the 

FCA seal. Each Board Member has the 

authority to appoint and direct regular, 

full-time staff in his or her immediate 

office. 

Section 3. Chairman Authorities. The 

Chairman, in carrying out his or her 

responsibilities, is governed by the 

general policies adopted by the Board 

and by such regulatory decisions, 

findings, and policy determinations as 

the Board may by law be authorized to 

make. 

The Chairman, in carrying out 

policies as directed by the Board, acts as 

spokesperson for the Board and 

represents the Board and the FCA in 

official relations within the Federal 

Government. Under policies adopted by 

the Board, the Chairman must consult 

on a regular basis with the Secretary of 

the Treasury concerning the exercise of 

the System’s powers under section 4.2 

of the Act; the Board of Governors of the 

Federal Reserve System concerning the 

effect of System lending activities on 

national monetary policy; and the 

Secretary of Agriculture concerning the 

effect of System policies on farmer, 

ranchers, and the agricultural economy. 

As to third persons, all acts of the 

Chairman will be conclusively 

presumed to be in compliance with 

general policies and regulatory 

decisions, findings, and determinations 

of the Board. 

The Chairman enforces the rules, 

regulations, and orders of the Board. 

The Chairman designates attorneys to 

represent the Agency in any civil 

proceeding or civil action brought in 

connection with the administration of 

conservatorships and receiverships and 

in civil proceedings or civil actions 

when so authorized by the Attorney 

General under provisions of title 28 of 

the United States Code. The Chairman, 

subject to the approval of the Board, 

may establish one or more advisory 

committees in accordance with the 

Federal Advisory Committee Act. 

The Chairman may not delegate any 

of the foregoing powers without prior 

Board approval. 

The Chairman also exercises those 

powers conferred on the Head of the 

Agency, including the power to make 

certain designations. 

Section 4. CEO Authorities. The 

Chairman of the FCA Board is also the 

Agency’s CEO. The CEO, in carrying out 

his or her responsibilities, directs the 

implementation of policies and 

regulations adopted by the Board and, 

after consultation with the Board, 

Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 71151 

executes the administrative functions 

and duties of the FCA. 

‘‘Consultation with the Board’’ is 

achieved when the Chairman/CEO 

makes a good faith attempt to seek 

advice, guidance, and input from the 

Board before taking significant action on 

matters related to the execution of 

administrative functions or duties. 

The Chairman as CEO runs the dayto-day operations of the Agency. This 

includes the power to implement the 

policies and regulations adopted by the 

Board; appoint personnel as necessary 

to carry out Agency functions; set staff 

pay and benefits; and direct staff. As 

provided in section 5.11(b) of the Act, 

the Chairman/CEO appoints heads of 

major administrative divisions subject 

to the approval of the Board. 

The Chairman as CEO may designate 

to other FCA officers and employees the 

authority to exercise and perform those 

powers necessary for the day-to-day 

management of the Agency. 

Article II 

Staff Governance 

Section 1. Authority over Staff. The 

Chairman/CEO has authority to hire the 

personnel necessary to carry out the 

mission of the Agency and to direct 

staff, except that each Board Member is 

entitled to appoint and direct his or her 

regular, full-time staff within the 

constraints of the adopted budget for the 

Office of the Board. 

Subject to the approval of the Board, 

the Chairman/CEO appoints and 

removes the ‘‘heads of major 

administrative divisions.’’ The Board 

defines the ‘‘heads of major 

administrative divisions’’ as all Office 

Directors who are career appointees. 

The Board must approve the conversion 

of an existing career position to a 

noncareer (political) position. 

Section 2. Organization Chart. 

Consistent with its mandate to approve 

regulations and appointments outlined 

above, the Board approves the FCA 

organizational chart down through the 

Office level along with relevant 

functional statements for each Office. 

Authority to make organizational 

changes within any division rests with 

the Chairman/CEO, and may be 

delegated to the Senior Agency Official 

or Office Directors. 

Part III—Board Operations 

Article I. Committee and Financial 

Operations, and Other Activities. 

Article II. Board Member Travel and Related 

Expenses. 

Article I 

Committee and Financial Operations, 

and Other Activities 

Section 1. Committee Operations. To 

assist the Board in exercising its 

authority for oversight and approval of 

the Strategic Plan, the formulation of 

regulations and policy, and the 

monitoring and assessment of risk, the 

Board directs the formation of three 

committees. 

Each Committee Chair will be 

designated by the Chairman. Each 

committee will be comprised of the 

Board Members’ Executive Assistants 

and such Agency staff as determined by 

the Committee Chair. The Committee 

Chair will designate a Coordinator with 

expertise in, or significant 

accountability for, the activities of the 

committee. Committees will meet as 

often as determined by the Committee 

Chair to achieve committee objectives. 

The Chairman may also approve the use 

of external consultants to assist the 

committees on an as-needed basis. 

(a) Strategic Planning Committee. The 

objective of this committee is to provide 

a forum for Board input on (1) the 

development of, and periodic updates 

to, the Strategic Plan, and (2) changes in 

processes and procedures that will 

improve the quality of this key Agency 

document. 

(b) Regulation and Policy 

Development Committee. The objective 

of this committee is to provide a forum 

to (1) Obtain Board input throughout the 

entire process of developing, modifying, 

or eliminating individual regulations, 

(2) discuss changes in processes and 

procedures that will improve the 

Agency’s regulation and policy 

development process, and (3) foster 

open discussion during the 

development and periodic update of the 

Agency’s regulatory agenda. 

(c) Risk Committee. The objective of 

this committee is to provide a forum to 

(1) Facilitate Board awareness of risks to 

the ongoing mission fulfillment and 

safety and soundness of the System and 

Farmer Mac, (2) ensure an integrated 

and coordinated Agency risk analysis 

process that effectively uses information 

from a wide variety of internal and 

external sources, and (3) foster open 

discussion about risks to the System and 

Farmer Mac and the implications of 

such risks for future Agency operations. 

Section 2. Financial Operations. 

(a) Budget Approval. The Chairman, 

consistent with the provisions of the 

Act, other law and regulations, and 

applicable policy, oversees the 

development of budget proposals and 

causes the expenditure of funds within 

approved budgets to meet the Agency’s 

mission and objectives. The Board 

approves an object class budget for the 

Agency as a whole and a budget for each 

office. Any reallocation of funds in 

excess of $100,000 requires FCA Board 

approval. Reallocation of funds of 

$100,000 or less requires the Chairman’s 

approval (or that of the Chairman’s 

designee). The objective of single 

procurements and the provision of 

services or materials in excess of 

$100,000 will be made during the 

budget approval process. The Chief 

Financial Officer will report monthly on 

all budgetary reallocations that occur 

after the FCA Board approves a fiscal 

year budget. 

Section 3. Other Board Operations. 

(a) Audit Resolution Process. The 

Chairman is responsible for overseeing 

the audit resolution process and, 

through a designee, for audit resolution 

implementation and follow-up. 

However, the Chairman must obtain 

Board approval of audit resolutions 

where the issue would normally require 

Board action. The Inspector General and 

Audit Follow-up Official will report to 

the Board the status of any unresolved 

audit recommendations, 

unimplemented management decisions, 

and other issues on a semiannual basis 

following the Inspector General’s SemiAnnual Report to Congress. 

(b) Litigation. The Chairman has 

authority to undertake litigation to 

defend the Agency, consistent with 

established Board policy. The Board 

will approve litigation where the 

Agency is plaintiff, will approve 

recommendations to the Justice 

Department to pursue an appeal, and 

will approve positions advanced in 

litigation that conflict with existing 

Board policy or establish a significant 

new policy. The Chairman’s authority to 

settle certain claims against the Agency 

have been delegated to the General 

Counsel (GC) provided the GC consults 

with the Chairman. 

(c) Documents and Communications. 

(1) Approval, Review, and 

Consultation. The FCA Board is 

responsible for determining the 

Agency’s position on policy. Board 

Policy Statements should be reviewed at 

least every five years. 

The Board must approve all 

documents published in the Federal 

Register, including proposed and final 

FCA regulations, except for notices of 

effective dates or technical corrections 

of regulations. Board approval is not 

necessary prior to Federal Register 

publication of Privacy Act systems 

notices or notices of other routine or 

administrative matters unless they raise 

policy issues requiring Board approval. 

Bookletters, informational memoranda, 

71152 Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 

and other mass mailings to Farm Credit 

institutions (except documents listed in 

Attachment A) must be approved by the 

Board prior to distribution. Documents 

may be added to or deleted from 

Attachment A by Board vote. 

The issuance of a ‘‘no action’’ letter is 

a policy matter requiring Board 

approval. For the purposes of this 

statement, a ‘‘no action’’ letter is a 

statement to a Farm Credit institution 

that, notwithstanding any other 

provision of law or regulation, the Board 

will take no action against a System 

institution solely because it engaged in 

conduct specified in the letter. 

Authority to promulgate internal 

administrative issuances, including FCA 

Policies and Procedures Manual (PPM) 

issuances, rests with the Chairman and 

may be delegated to the Senior Agency 

Official. The Chairman will provide the 

Board with final drafts of PPM issuances 

and other administrative issuances for 

an appropriate consultative period if 

those issuances relate to examination 

and supervision, audits, internal 

controls, the budget, the strategic 

planning process, regulation 

development, or personnel matters 

relating strictly to promotion or pay. 

(2) Signature Authority. Authority to 

sign official Board documents, 

including, but not limited to, proposed 

and final regulations, Federal Register 

notices, no-action letters, minutes, and 

other Board actions is delegated to the 

Secretary. After any action by the Board 

required under paragraph (c)(1) of this 

section, the Chairman has the authority 

to sign bookletters, informational 

memoranda, and other mass mailings to 

Farm Credit institutions. This signature 

authority may be delegated to senior 

staff members. 

(3) Correspondence. The Chairman 

approves and signs routine 

correspondence (that is, correspondence 

in the ordinary course of business), to 

members of Congress, correspondence 

responding to White House referrals, or 

other correspondence on behalf of the 

Board or the Agency. The Chairman 

may delegate approval and signature 

authority for such correspondence to 

FCA Office Directors when the subject 

matter involves congressional or White 

House case work. When the subject 

matter involves the presentation of an 

Agency position or policy relative to 

regulations, legislation, or any other 

significant matter, the Chairman may 

not delegate authority, and the 

correspondence must be approved by 

the Board, except that the Board need 

not approve a previously approved 

response or a restatement of previously 

adopted Board policy. Board approval 

does not apply when the Chairman is 

speaking only for him-or herself and 

includes the appropriate disclaimer. 

Likewise, on similar matters, Board 

Members should include appropriate 

disclaimers. The Chairman or the 

Chairman’s designee has authority to 

sign acknowledgments or interim 

responses without Board approval, 

provided such responses contain no 

policy statements or only previously 

approved statements. 

(4) Authentication and Certification of 

Records and Documents. The Chairman 

designates the person authorized and 

empowered to execute, issue and certify 

under the seal of the FCA: 

• Statements authenticating copies of, 

or excerpts from official records and 

files of the FCA; 

• Effective periods of regulations, 

orders, instructions, and regulatory 

announcements on the basis of the 

records of the FCA; 

• Appointment, qualification, and 

continuance in office of any officer or 

employee of the FCA, or any 

conservator or receiver acting in 

accordance with the FCA receivership 

regulations at 12 C.F.R. Part 627 on the 

basis of the records of the FCA. 

The Chairman may further empower 

the designated official(s) to sign official 

documents and to affix the seal of the 

FCA thereon for the purpose of attesting 

the signature of officials of the FCA. 

Article II 

Board Member Travel and Related 

Expenses 

Section 1. Pre-confirmation Travel. 

Travel expenses incurred by an FCA 

Board nominee that are solely for the 

purpose of attending his or her Senate 

confirmation hearings will be 

considered the personal expense of the 

nominee and will not be reimbursed by 

FCA. However, consistent with existing 

Government Accountability Office 

interpretations, the FCA will pay for a 

nominee’s travel expenses to the 

Washington, D.C. metropolitan area 

(including lodging and subsistence), if 

payment is approved, in advance 

whenever practicable, by the Chairman 

based on a determination that the 

nominee’s travel is related to official 

business that will result in a substantial 

benefit to the FCA. That determination 

will be made on a case-by-case basis and 

is within the sole discretion of the 

Chairman. The same standards and 

policies that apply to the reimbursement 

of Board Members’ travel expenses will 

apply to the reimbursement of 

nominee’s expenses. As part of the 

documentation for the approval process, 

the Chairman must execute a written 

finding that a nominee’s travel would 

substantially benefit the FCA. 

Travel that may result in substantial 

benefit to the FCA could include 

meetings, briefings, conferences, or 

other similar encounters between the 

nominee and FCA Board Members, 

office directors, the Senior Agency 

official, or other senior congressional 

and executive branch officials, for the 

purpose of developing substantive 

knowledge about the FCA, its role, its 

interaction with other Government 

entities, or the institutions that it 

regulates. Meetings or briefings of this 

nature may enable a nominee to more 

quickly and effectively assume 

leadership at the Agency after 

confirmation by the Senate and could 

thus substantially benefit the Agency. 

Section 2. Board Member Relocation. 

Board Members will be reimbursed by 

FCA for travel and transportation 

expenses incurred in connection with 

relocation to their first official duty 

station. Expenses for which 

reimbursement will be allowed 

generally include, but are not limited to 

the following: 

(a) Travel and per diem for the Board 

Member. 

(b) Travel, but not per diem, for 

immediate family of the Board Member. 

(c) Mileage if privately owned vehicle 

is used in travel; and 

(d) Transportation and temporary 

storage of household goods. 

Each relocation will be considered 

separately and all rates and allowances 

will be determined at the time of 

authorization, notwithstanding the 

limitations of 5 U.S.C., Chapter 57 and 

the Federal Travel Regulations. 

Reimbursement of additional expenses 

may be authorized if warranted by 

specific circumstances. Board Members 

will be issued a specific prior written 

authorization by the Chief 

Administrative Officer detailing the 

expenses that may be reimbursed. 

Section 3. Representation and 

Reception Fund. The Act allows the 

payment of FCA funds for official 

representation and reception expenses. 

Expenses incurred from official 

functions may be paid for with funds 

from the Representation and Reception 

(R&R) Fund only under this policy 

statement and decisions from the 

Department of Justice or guidance from 

the Comptroller General of the United 

States (Comptroller General). 

‘‘Official functions’’ include 

meetings and other contacts with the 

public to explain or further the Agency’s 

mission and typically are activities of 

the FCA Board, individual Board 

Members, or other FCA officials acting 

for the Board. For example, while 

Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 71153 

extending official courtesies to the 

public on occasions associated with the 

mission of the Agency, FCA staff may 

use the R&R Fund to cover catering 

services, rental of facilities, receptions, 

coffee, snacks, refreshments, supplies, 

services and tips. 

Consistent with opinions of the 

Comptroller General, the FCA Board has 

determined, as a matter of policy, that 

it will not permit the R&R Fund to be 

used for events or functions in which 

attendance is restricted to Agency 

employees. 

Similarly, the R&R Fund may not be 

used for activities relating solely to 

‘‘personal entertainment’’ (interpreted 

by the Comptroller General to include 

attendance at a sporting event or 

concert, for example) or for personal 

favors, even if the entertainment is 

enjoyed with, or is a favor given to, 

members of the public, such as Farm 

Credit System representatives. 

The FCA Board has determined, as a 

matter of policy, that the R&R Fund 

shall be a fund of last resort and shall 

not be used for expenses that can 

properly be classified as another type of 

Agency expense. 

The FCA Board will decide how 

much to budget for the R&R Fund. The 

FCA Board will approve any amount 

available for R&R expenses for the 

Chairman and each Board Member, and 

an amount available for general R&R 

expenses. The amount approved for use 

by the Chairman and each Board 

Member will be maintained in their 

budget code. The amount approved for 

general R&R will be maintained in a 

separate budget class code by the 

Secretary. 

Amended this 27th day of June, 2005. 

By Order of the Board. 

Jeannette C. Brinkley, 

Secretary to the Board. 

Attachment A 

Documents Mailed in Mass to Farm 

Credit Institutions That Need No Review 

by the FCA Board Prior to Distribution 

1. Farm Credit Administration (FCA) 

communications that do not 

communicate Agency policy; Agency 

legal interpretations; substantive 

Agency positions on examination, 

corporate or accounting issues; or noaction positions. 

(a) Issue or revise: 

• The FCA Examination Manual, 

examination criteria, and examination 

procedures; 

• The FCA Uniform Call Report 

instructions; 

• Examination plans and general 

guidance provided to examiners, except 

those relating to Agency positions not 

previously approved by the Board. 

(b) Request information on: 

• Call Reports/LARS; 

• Young, beginning, and small 

farmers and ranchers reports; 

• Other reports as required by statute 

or determined necessary by the Board 

(consistent with Board instruction). 

(c) Provide information on: 

• Fraudulent activities; 

• Removals/suspensions/ 

prohibitions; 

• Other related activities. 

(d) Transmit documents issued by 

other Federal agencies including 

regulations, official staff commentary on 

regulations, and forms. 

2. PPM mailings. 

3. Vacancy Announcements. 

4. Office of Inspector General mailings 

for official audit purposes. 

5. Annual Report of Assessments and 

Expenses under 12 CFR 607.11. 

6. FCA Handbook Updates. 

Attachment B 

Delegations 

1. The FCA Board delegates to the 

Chairman the authority to: 

a. Sign letters notifying Farm Credit 

System institutions of final approval for 

any approved corporate application, 

after all conditions for final approval 

have been met and in accordance with 

applicable procedures; 

b. Execute and issue under the FCA 

seal the new charter or charter 

amendment document for such 

institutions; and 

c. Sign certificates of charter after new 

charters and charter amendments are 

executed. 

The Chairman may redelegate this 

authority to other FCA officers or 

employees. 

2. The FCA Board delegates to the 

Chairman the authority to approve 

(preliminary and final) corporate 

applications from associations 

requesting to merge or consolidate 

provided the applications are deemed 

noncomplex, noncontroversial, and low 

risk. 

Applications for mergers or 

consolidations approved under 

authority of section 7.8 of the Act will 

be considered noncomplex, 

noncontroversial, and low risk if they 

meet all of the following criteria: 

a. The applicant association(s) has a 

current FIRS rating of 1, 2, or 3 (with no 

3 rated association having a formal 

enforcement action); 

b. The continuing or resulting 

association(s) has a gross loan volume of 

$500 million or less; 

c. The application(s) is consistent 

with the Act and regulations governing 

its approval, and; 

d. There are no policy or precedentsetting decisions embedded in the 

request. 

3. The FCA Board delegates to the 

Chairman the authority to approve, 

execute, and issue under the seal of the 

FCA, amendments to charters requested 

by Farm Credit associations, limited to 

name changes and/or headquarters 

relocations. The Chairman may 

redelegate this authority to other FCA 

officers or employees. 

Release of Consolidated Reporting 

System Information 

FCA–PS–65 

Effective Date: 27–JAN–05 

Effect on Previous Action: None. See 

60 FR 15921, Mar. 28, 1995. 

Source of Authority: 12 CFR Part 621, 

Subpart D; Freedom of Information Act, 

5 U.S.C. 552; 12 CFR Part 602; OMB 

Circular A–130 (Nov. 28, 2000). 

The Farm Credit Administration (FCA) 

Board Hereby Adopts the Following 

Policy Statement 

Purpose: The FCA Board has adopted 

a policy to disclose reports of condition 

and performance (Call Reports) and any 

subsequent reports containing 

nonexempt information that are 

produced from the FCA’s Consolidated 

Reporting System (CRS) [hereinafter 

nonexempt CRS reports]. For purposes 

of this policy, nonexempt CRS reports 

are defined as reports produced from 

the CRS containing information that has 

been routinely disclosed in Farm Credit 

System (System) institutions’ quarterly 

and annual financial reports and filed 

with the FCA. 

The nonexempt CRS reports include 

the Uniform Performance Report (UPR), 

Uniform Peer Performance Report 

(UPPR), Six-Quarter Trend Report, SixYear Trend Report, and Institution 

Comparison Report. Under this policy, 

the Call Reports and subsequent reports 

for the institution that submitted the 

information will be available to that 

institution on the FCA Web site 

approximately 35 days after the end of 

a quarter or a fiscal year. 

Objectives: The FCA facilitates the 

competitive delivery of financial 

services to agriculture while protecting 

the public, the taxpayer, and the 

investor. Consistent with that mission, 

the FCA endeavors to provide 

information to System institutions and 

to the public. Call Reports and other 

nonexempt CRS reports contain 

information of value to the Agency, the 

System, and the public that enables an 

evaluation of the financial condition of 

a System institution in comparison to its 

peers. This information will provide 

71154 Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 

institutions with a succinct assessment 

of performance, in addition to that 

provided in the examination process. 

The FCA believes that implementation 

of this policy statement will enhance 

the FCA’s information management 

activities in an efficient, effective, and 

economical manner consistent with 

OMB Circular A–130. 

Operating Principles: Certain 

information reported to the Agency in 

compliance with Call Report 

instructions and not routinely disclosed 

by an institution, such as asset and 

liability repricing schedules or loan 

specific data, will continue to be exempt 

from disclosure and the FCA will not 

make it available under this policy 

statement. 

Availability of Reports: All 

nonexempt CRS reports will be 

available within 45 days after the end of 

a quarter or a fiscal year free of charge 

on the FCA Web site. 

The FCA often receives special 

requests for new reports containing 

nonexempt CRS information not 

produced from the CRS. Consistent with 

the Freedom of Information Act, the 

FCA will grant such special requests 

when the record is readily reproducible 

with reasonable efforts. We will assess 

fees to recover the direct costs of 

complying with the request, including 

the cost of collecting, processing, and 

disseminating the information. The FCA 

may grant a request for a fee waiver to 

an educational institution, a researcher, 

a governmental agency, a newspaper, 

and others, when the benefit derived 

from releasing the information exceeds 

the waived fee. Requests should be 

directed to the Office of Policy and 

Analysis. 

Delegated Authority: The Director, 

Office of Policy and Analysis, in 

concurrence with the Director, Office of 

Examination, and the General Counsel, 

is responsible for implementing this 

policy statement, developing operating 

procedures, and assessing requests for 

fee waivers. Any of these 

responsibilities may be redelegated to 

appropriate staff in their respective 

offices. 

Reporting Requirements: The 

Director, Office of Policy and Analysis, 

shall report annually to the Chief 

Executive Officer on the number of 

special requests for new reports 

containing nonexempt CRS information 

and fees received. 

Dated this 27th day of January, 2005. 

By Order of the Board. 

Jeanette C. Brinkley, 

Secretary to the Board. 

Nondiscrimination on the Basis of 

Disability in Agency Programs and 

Activities 

FCA–PS–67 

Effective Date: 27–JAN–05. 

Effect on Previous Action: 

Supplements 12 CFR Part 606. See 60 

FR 26033, May 16, 1995. 

Source of Authority: Section 504 of 

the Rehabilitation Act of 1973, as 

amended (29 U.S.C. 794); Architectural 

Barriers Act of 1968 (42 U.S.C. 4151 et 

seq.); 36 CFR part 1191. 

Section 504 of the Rehabilitation Act 

of 1973, as amended (Section 504) 

prohibits Executive agencies from 

discriminating on the basis of disability 

in the operation of agency programs and 

activities. Each agency is responsible for 

enforcing Section 504 as it applies to the 

agency’s own programs, services, and 

employment practices. Under the 

provisions of Executive Order 12250, 

‘‘Leadership and Coordination of 

Nondiscrimination Laws,’’ the Assistant 

Attorney General for the U.S. 

Department of Justice Civil Rights 

Division is responsible for coordinating 

the federal government’s 

implementation and enforcement of 

Section 504. The FCA has issued 

regulations at 12 CFR Part 606 to carry 

out the nondiscrimination mandate of 

Section 504. 

The Architectural Barriers Act of 1968 

(ABA) requires certain buildings 

housing federal agencies to be accessible 

to people with disabilities. The U.S. 

Architectural and Transportation 

Barriers Compliance Board (Access 

Board) establishes, and ensures 

compliance with, minimum 

accessibility standards in connection 

with the construction and alteration of 

facilities. The federal government and 

private entities follow different 

accessibility standards. The accessibility 

standards applying to the federal 

government (known as the ‘‘Uniform 

Federal Accessibility Standards’’ or 

UFAS) were revised to conform more 

closely to the accessibility standards 

applying to private entities (known as 

the ‘‘Americans with Disabilities Act 

Accessibility Guidelines’’ or ADAAG). 

The Access Board issued the revised 

standards on July 23, 2004, providing an 

effective date of September 21, 2004. 

The Farm Credit Administration (FCA) 

Board Hereby Adopts the Following 

Policy Statement 

The FCA prohibits discrimination on 

the basis of disability in the operation 

of Agency programs and activities. Each 

FCA program or activity, when viewed 

in its entirety, shall be readily accessible 

to and usable by individuals with 

disabilities. Accessibility may be 

achieved through a variety of methods, 

including the redesign of equipment, 

the assignment of aides to beneficiaries, 

the reassignment of services to alternate 

accessible sites, the alteration of existing 

facilities, and the construction of new 

facilities. The FCA is not required to 

alter an existing facility when there is 

another feasible way of providing access 

to programs and activities. 

If a building is constructed or altered 

by, on behalf of, or for the use of the 

FCA, the design, construction, or 

alteration is subject to applicable 

provisions of the UFAS. A different set 

of accessibility standards, the ADAAG, 

applies to the design, construction, and 

alteration of places of public 

accommodation and commercial 

facilities owned, operated, or leased by 

private entities. The Access Board has 

issued a consolidated set of guidelines, 

‘‘ADA and ABA Accessibility 

Guidelines for Buildings and Facilities,’’

which merges the provisions of UFAS 

and ADAAG. 

Until FCA regulations are amended to 

incorporate the new accessibility 

standards, the FCA Board has decided 

that the construction or alteration of a 

facility by, on behalf of, or for the use 

of the FCA shall comply with the 

Access Board accessibility guidelines. 

Dated this 27th day of January, 2005. 

By Order of the Board. 

Jeanette C. Brinkley, 

Secretary to the Board. 

FCS Building Association Management 

Operations Policies and Practices 

FCA–PS–68 

Effective Date: 26–APR–05. 

Effect on Previous Action: Amends 

NV–95–40, FCA–PS–68–7–JUL–95. 

Source of Authority: Farm Credit Act 

of 1971, as amended (Act), and the FCS 

Building Association (FCSBA) Articles 

of Association and Bylaws. 

The Farm Credit Administration (FCA) 

Board Hereby Adopts the Following 

Policy Statement 

The FCSBA was established to 

provide the facilities and related 

services for the FCA and its field offices. 

The FCSBA is owned by the banks of 

the Farm Credit System (banks) and is 

funded by assessments, rental income 

from commercial tenants, and other 

income. The original ownership interest 

of each bank was based on the bank’s 

assets as a percentage of total Farm 

Credit System (FCS) assets on June 30, 

1981. The FCSBA owns and operates 

the FCA headquarters in McLean, 

Virginia, and holds the leases and 

provides certain services and 

Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 71155 

furnishings for FCA field offices. The 

FCA Board has sole discretionary 

authority under section 5.16 of the Act 

to approve the plans and decisions for 

such building and facilities. In order to 

carry out this authority and to preserve 

the FCA’s arms-length relationship with 

the banks, the Articles of Association 

and Bylaws of the FCSBA grant the FCA 

Board the responsibility to oversee the 

affairs of the FCSBA. 

The purpose of this policy statement 

is to outline general parameters and 

policies for various operational 

practices of the FCSBA that are 

supplementary to the FCSBA Bylaws. 

A. FCA Board Responsibilities 

Board Responsibilities. As outlined 

further in this policy statement, the FCA 

Board is responsible for items including, 

but not limited to, approval of all 

budgets and subsequent changes in 

object class limitations, signature 

authorities for financial expenditures, 

and long-term investment decisions. 

The FCA Board concurs in the 

development of performance standards, 

goals and pay scales for the FCSBA 

President as provided by the FCA 

Chairman and Chief Executive Officer 

(Chairman). Additionally, all contracts 

in excess of $150,000 per year, or those 

that cover the selection of outside 

auditors, property management services 

or the commission of special studies 

with a cost in excess of $5,000 that were 

not approved during the annual budget 

process require the approval of the FCA 

Board. 

Chairman’s Responsibilities. The 

Chairman shall be responsible for 

coordinating the FCA Board’s 

involvement in, and responsibilities for, 

the operation of the FCSBA, including: 

(1) Developing performance standards 

and pay scales for the President of the 

FCSBA and appraising the President’s 

performance with the concurrence of 

other FCA Board Members, (2) 

reviewing periodic financial and 

operating reports, (3) providing 

procedures as necessary concerning the 

FCA staff’s relationship with the 

FCSBA, and (4) reviewing such other 

matters as the Chairman may deem 

advisable for the purpose of bringing 

such matters to the attention of the FCA 

Board. The Chairman may delegate 

these responsibilities to one or more 

FCA staff, as he or she deems advisable, 

except those responsibilities related to 

pay and performance. 

B. FCSBA President 

General Signature Authority. As 

required by Article V, Section 2 of the 

FCSBA Bylaws, in addition to member 

certificates, the FCA Board authorizes 

the FCSBA President to sign general 

correspondence and contracts deemed 

necessary for the administration of 

FCSBA activities. The FCSBA President 

must get Board approval before 

changing the signatory authority for 

checks and before changing any banks 

with which the FCSBA does business. 

Duties. The FCSBA President reports 

to the FCA Board and is generally 

responsible within the context of 

governing policies for all activities 

necessary to: (1) Manage FCSBA support 

to FCA, (2) manage the assets of the 

FCSBA, and (3) understand and 

consider the interests of the banks. 

Specific responsibilities include budget 

preparation and execution; planning; 

financial reporting and control; 

preparation of quarterly cash flow 

projections; supervision of inventory 

and supporting schedules for all fixed 

assets (furniture, fixtures and 

equipment); maintenance of 

management objectives schedules; 

supervision of the telecommunications 

system; the purchase and contracting for 

all supplies and services; records 

management; necessary correspondence; 

public relations activities in 

consultation with the FCA Office of 

Congressional and Public Affairs; 

personnel supervision and evaluation; 

the leasing and management of all space 

in the Farm Credit Building; site 

selection and lease negotiation for all 

FCA Field Offices; investment 

management; preparation and 

administration of all policies and 

operating procedures; engineering 

oversight; construction management; 

and preparation of all monthly, 

quarterly and annual reports required by 

the FCA Board. The FCSBA President 

shall coordinate these activities with the 

FCA Liaison as appropriate or required. 

Standard Operating Procedures. In 

addition to those duties outlined under 

Article V, Section 2, of the FCSBA 

Bylaws and this Policy Statement, the 

FCSBA President is authorized to issue 

Standard Operating Procedures (SOPs), 

as he or she deems appropriate, in an 

effort to carry out the mission of the 

FCSBA provided that each SOP is 

reviewed by the FCA Board in advance. 

The President shall maintain all SOPs in 

a manner that reflects current policies 

and practices. SOPs will be filed with 

the Secretary to the Board, the FCSBA 

and others as requested. 

Periodic Reports. The FCSBA 

President shall submit such periodic 

reports and proposals to the FCA Board 

and Liaison as may be necessary to 

facilitate budgets, assessments, audits, 

finances, plans, investments, reserve 

policy and accounting procedures that 

support the needs of the FCA Board and 

the banks as owners of the FCSBA. The 

FCSBA President shall normally report 

to the FCA Board at least quarterly. At 

a minimum, the report shall include: 

1. A cash statement of operations, an 

explanation of budget variances, and 

month-to-date cash reconciliation 

report. This report will include specific 

notations of any expected reallocations 

of funds requiring Board approval. 

2. A status of all projects/building 

improvements that are planned, 

including current accounting of actual 

costs of each project. 

3. A summary of the status of reserve 

accounts and investments including 

documentation as available 

demonstrating compliance with 

investment policies. 

4. A comprehensive Management 

Objectives tracking report outlining the 

status of issues and projects resulting 

from a combination of one or more 

sources such as audit and examination 

recommendations, FCA Board 

directives, as well as management 

initiatives. 

5. Other matters such as insurance, 

leasing and contract performance issues 

that may be timely for the particular 

reporting period. 

Annual Report. The FCSBA President 

shall prepare an annual report on the 

operations of the FCSBA. The draft of 

the report shall be provided to the FCA 

Board for its review within 

approximately 30 days of receiving the 

final report from the independent 

auditors. After FCA Board review, the 

report shall be provided to the banks 

and may be provided to others who 

have an interest in FCSBA affairs. 

Although other reports to the banks may 

be warranted from time to time, the 

Annual Report shall serve as the 

primary report to the FCS. The report 

shall include: 

1. A discussion of significant issues 

and accomplishments. 

2. Audited financial statements and 

reportable conditions. 

3. A discussion of the previous year’s 

and current year’s budget. 

4. A discussion of basic and 

supplemental services provided to FCA 

by the FCSBA including an estimate of 

market and actual values of those 

services. 

5. A discussion of non-budgeted 

expenditures, that have been 

reimbursed by the FCA. 

C. FCA Liaison 

Duties. The FCA Chief Executive 

Officer appoints the Liaison to the FCS 

Building Association. The FCA Liaison 

facilitates and coordinates the FCA’s 

needs with the FCSBA in such areas as 

office renovations, internal moves, 

71156 Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 

telecommunications services, field 

office support, and matters concerning 

building security and Emergency 

Preparedness. The FCA Liaison 

provides an internal control function 

through the countersigning of certain 

categories of checks as designated by the 

FCA Board. Additionally, the FCA 

Liaison reviews FCSBA proposals that 

come before the FCA Board, and 

provides counsel regarding issues on 

which the FCA Board must decide or 

provide direction. The FCA Liaison is 

also responsible for assuring that FCA 

operations, as appropriate, comply with 

FCSBA policies and practices as well as 

FCA guidance relating to the FCSBA. 

Finally, the FCA Liaison shall review 

monthly cash reconciliation reports as 

provided by the FCSBA President and 

report irregularities, as appropriate. 

D. Annual Audit and Management 

Controls 

Annual Audit and Management 

Controls Review. As provided by Article 

IV, Section 9, of the FCSBA Bylaws, the 

FCSBA shall produce audited financial 

statements on an annual basis. A review 

of material internal control procedures 

shall be included in the audit process 

on a periodic basis. 

E. Financial Management 

Budget Philosophy. It is FCA Board 

policy to ensure that every effort is 

made to minimize operating expenses 

without jeopardizing the banks’

investment in the assets that are 

managed. Approved budgets are 

planned and implemented in 

consideration of a series of policy 

objectives as outlined in this statement 

and always in an effort to balance 

income and expenses. 

Budget Development Time Frames. 

FCSBA budgets are prepared on a 

calendar year basis. Each November 1, 

the FCSBA President shall provide the 

proposed budget for the next calendar 

year to the FCA Board for its review and 

comment. With FCA Board concurrence, 

the proposed budget may be made 

available to the banks for further 

comment. 

Operating Revenues. The FCSBA 

receives annual operating revenues from 

(1) Bank assessments, (2) office rental 

income from private commercial 

tenants, (3) other income such as fees 

and vending charges, (4) interest income 

from operating balances, and (5) reserve 

account transfers as necessary. 

Operating Expenses. Operating 

expenses are budgeted using the 

appropriate object classifications as 

follows, which may be modified with 

FCA Board approval: 

• FCA Field Office Rent. 

• Taxes and Contract Services. 

• Maintenance and Repair. 

• Utilities. 

• Salaries and Benefits. 

• Professional and Consulting Fees. 

• Property Management Fees. 

• Other Expenses. 

As a part of the draft budget proposal 

to the FCA Board on or before 

November 1st every year, the FCSBA 

President shall provide an individual 

expense breakdown for each item 

within the object class. This breakdown 

shall include the actual expense from 

the previous year, the estimated expense 

for the current year, and the projected 

expense for the proposed year. 

Unanticipated and emergency expenses 

during the course of the year as well as 

expenditures beyond amounts approved 

for object classes may be funded out of 

the operating reserve subject to FCA 

Board approval. 

Capital expenditures funded by 

transfers from the component reserve 

account should be shown separately 

with a breakdown of individual 

expenditures. 

Operating Reserves. In consideration 

of liquidity needs as well as 

unanticipated expenses, each approved 

budget shall include the sum equivalent 

to 15 percent of the annual operating 

expense as operating reserves. 

Component Reserve Account. To 

reserve for capital replacement items 

and repairs to the McLean facility, the 

FCSBA shall maintain a component 

reserve account which is separate from 

operating funds and reserves. The 

funding for this account shall be 

initially based on the Capital Reserve 

Study of August 1992, which is to be 

updated by April 30, 2005 and then 

updated every 5 years by an 

independent engineering assessment. 

The policy objective is to ensure 

adequate funding, on a net present value 

basis, to cover up to a 10-year capital 

repair and replacement program to be 

updated, as necessary, with each 

approved budget. 

Assessments. To ensure the 

maintenance of minimum ‘‘cash on 

hand,’’ FCSBA assessments are based on 

bank assets as of June 30, and issued 

quarterly consistent with the FCSBA 

Bylaws. After taking interest, rental, and 

other revenue into consideration, 

budgeted annual assessments must be 

sufficient to fund the operations of the 

FCSBA, including the ability to hold 

operating reserves equal to 15 percent of 

expenses as well as component reserves 

consistent with FCSBA policy. 

Adjustments to assessments can occur 

subject to FCA Board approval when 

total yearend ‘‘cash and cash 

equivalents’’ exceed or are below 

operating and component reserve 

requirements. Adjustments are normally 

considered for third quarter assessments 

and are based upon the previous year’s 

audited financial statements. Earnings, 

if any, are distributed through this 

process in lieu of direct payment. 

Investments. The FCSBA invests its 

funds in an effort to achieve maximum 

yield consistent with liquidity needs 

and investment safety. For short-term 

accessibility, operating reserves and 

other operating ‘‘cash on hand’’ may be 

invested in short-term money market 

accounts, certificates of deposits of 

federally insured institutions, and shortterm instruments of the U.S. 

Government or commercial paper rated 

P–1 or A–1 by Moody’s and Standard 

and Poors, respectively. Operating 

reserves investment decisions are made 

by the FCSBA President consistent with 

this policy. 

With the goal of achieving the best 

long-term returns while minimizing 

risk, component reserves are invested 

solely in instruments backed by the U.S. 

Government and agencies of the U.S. 

Government. The maturities and 

amounts of component reserve 

investments shall be generally 

consistent with the anticipated liquidity 

needs of the FCSBA capital replacement 

and repair program. Component reserve 

investment decisions require FCA Board 

approval. 

Budgeting for Reimbursable Expenses. 

The FCA regularly reimburses the 

FCSBA for telecommunications and 

other expenditures on a cost recovery 

basis. Because there is no positive or 

negative financial impact on the FCSBA, 

these transactions are handled on a 

‘‘net’’ basis and thus not included in the 

budget. 

Budget Execution. The FCSBA 

President shall administer the annual 

budget as approved by the FCA Board. 

Expenditures during the course of the 

year that would exceed the object class 

budget require prior FCA Board 

approval. Exceptions to this policy are 

made in the event of emergency or the 

funding of accrued employee benefits. 

Expenditures in these cases will be 

brought to the FCA Board in the form 

of an Executive Summary for approval 

within 10 business days of occurrence. 

In considering its approval, the FCA 

Board has the option of either adjusting 

other object classes, utilizing the 

operating reserve, or taking other action, 

as it deems appropriate. 

F. Contract Management 

General. In accordance with Article 

IV of the FCSBA Bylaws, it is the policy 

of the FCA Board that all contracts 

issued on or on behalf of the FCSBA be: 

Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 71157 

1. Competitively bid with a minimum 

of three bids, when in excess of $15,000. 

2. Obtained with a minimum of three 

price quotes, when less than $15,000, 

and more than $2,500. 

3. Generally awarded to the lowest 

bidder meeting contract specifications 

except in those instances where the 

differences in cost are considered 

negligible relative to a particular benefit 

offered by a higher bid. 

4. Reviewed and approved by the FCA 

Board when in excess of the amount of 

$150,000, or for the purpose of outside 

auditors, property managers, or special 

studies that were not approved during 

the budget process. 

5. Retained in file a minimum of 3 

years. 

6. When possible, bid in conjunction 

with the budget year. 

Exceptions. Notwithstanding the 

above requirements, the FCA Board has 

the authority to make exceptions, as it 

deems appropriate to the circumstances. 

Additionally, competitive bidding is not 

required if the circumstances warrant 

immediate resolution or are vendor 

specific to equipment, in which case the 

FCSBA President will provide the FCA 

Board with a detailed report of the 

surrounding circumstances in 10 

business days. 

Contract Timeframes. Recurring 

contracts are normally for annual terms; 

however, when deemed cost effective, 

the FCSBA may allow terms up to 3 

years. Obtaining best and final offers 

from bidders is encouraged. 

Approval Authorization. The FCSBA 

President is authorized to approve 

contracts consistent with these 

guidelines and the FCSBA SOP. The 

FCSBA President may re-delegate up to 

$50,000 of contracting authority to the 

building property manager. 

Contract Performance. The FCSBA 

President shall insure that adequate 

systems are in place to measure, 

administer, and report on the 

performance of FCSBA contracts. 

G. Asset Management 

Personal Property. The FCSBA 

President shall insure that adequate 

methodologies and systems are in place 

to ensure that FCSBA property is 

effectively accounted for on a periodic 

basis. 

H. The FCSBA as a System Institution 

Examination. The FCSBA is examined 

as provided by the Act. The scope of 

examination shall be generally 

consistent with the level of risk deemed 

associated with the operating practices 

of FCSBA management. 

Assessments for Examination. The 

FCSBA will be charged annually for 

assessments consistent with FCA 

regulation found in 12 CFR 607.4, 

‘‘Assessment of other entities.’’

Liquidation by System Request. 

Should the Boards of the banks adopt, 

pursuant to Article IX of the FCSBA 

Articles of Association, a resolution to 

dissolve and liquidate the FCSBA, the 

dissolution and liquidation will be 

subject to, and conducted in accordance 

with, the Act and the regulations 

promulgated thereunder. 

I. FCSBA Services to the FCA 

Basic Services. The FCSBA provides 

space to the FCA headquarters in 

McLean, Virginia, and leases space on 

behalf of FCA for its field offices. Basic 

services provided to the FCA are similar 

to what is typical of rented office space 

and include, but are not limited to, such 

items as utilities, janitorial service, 

repairs for normal wear and tear, 

parking and appropriate landscaping as 

well as amenities which are available to 

all tenants and have the effect of 

maintaining property values and/or 

enhancing rental income. 

Supplemental Services. In addition to 

providing basic services, the FCSBA 

will, on a case-by-case basis, provide 

certain supplemental support services 

related to FCA’s housing needs under 

the following kinds of circumstances: 

1. The FCSBA can provide the service 

on better terms than the FCA. 

2. The service, if not provided by the 

FCSBA, could potentially adversely 

affect the aesthetic or other value of 

property, systems, building 

infrastructure, the health and safety of 

occupants, or the occupancy level of 

commercial tenants. 

3. The capacity exists for the FCSBA 

to provide the service within the context 

of its employee expertise and/or its 

overall responsibilities to all tenants. 

4. By providing the service, an 

advantage inures to the benefit of the 

FCS that would not otherwise occur. 

5. An FCA Board determination that 

the service will be of particular benefit 

to the FCA, the FCS or the public. 

As deemed necessary, the FCSBA 

President shall issue SOPs prescribing 

operational or other details of FCSBA 

services provided to the FCA. 

Non-Reimbursable and Reimbursable 

Services. Whether or not the FCA will 

reimburse the FCSBA for a 

supplemental service will generally be 

determined as follows: 

1. Reimbursement is not required for 

support provided by the FCSBA when 

resources are available within FCA 

Board approved budgets for the FCSBA 

and one or more of the criteria for 

supplemental services expenditures 

outlined above have been met. 

2. Unless otherwise determined by an 

FCA Board action, supplemental 

support services requiring resources 

beyond that available within the FCSBA 

budget will require reimbursement. 

Reimbursements in excess of $10,000 

that occur on an ongoing basis will 

require a written Memorandum of 

Understanding between the FCA and 

the FCSBA outlining the terms and 

conditions of the services provided and 

reimbursement. One time or minor 

recurring reimbursements may be 

handled by purchase orders. 

Reimbursable expenses shall be 

determined on an actual cost basis or a 

recognized methodology to achieve the 

goal of fully reimbursing the FCSBA on 

the transaction. 

Dated this 26th day of April, 2005. 

By Order of the Board. 

Jeanette C. Brinkley, 

Secretary to the Board. 

Disaster Relief Efforts by Farm Credit 

Institutions 

FCA–PS–71 

Effective Date: 13–JUN–96. 

Effect on Previous Action: Supersedes 

FCA Bookletter 368–OE, September 14, 

1993. See 61 FR 37471, July 18, 1996. 

Source of Authority: Section 5.17 of 

the Farm Credit Act of 1971, as 

amended. 

The Farm Credit Administration (FCA) 

Board Hereby Adopts the Following 

Policy Statement: 

The FCA recognizes that in the 

aftermath of hurricanes, floods, 

droughts, or other natural or man-made 

disasters, specific sections of the 

country or segments of the agricultural 

community are declared to be disaster 

areas. Such disaster area declarations 

may be made by the President of the 

United States, the Governor of a State, 

or a specific Federal or State 

government agency. When a disaster 

area includes a rural community where 

a Farm Credit institution is located or 

does business, the institution can be 

affected in two ways: directly, such as 

by physical damage to the institution 

itself or incapacitation of employees; or 

indirectly, such as by damage suffered 

by individuals and businesses with 

loans from the institution. In the interest 

of providing the highest quality and 

most efficient service to agricultural 

borrowers, the FCA encourages Farm 

Credit institutions operating in disasteraffected areas to work within their 

communities to help alleviate pressures 

on borrowers under stress. 

When conducted in a reasonable and 

prudent manner, the efforts of Farm 

Credit institutions to work in the 

71158 Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 

public’s interest with borrowers in the 

disaster areas will be considered 

consistent with safe and sound business 

practices. It is the FCA’s belief that the 

institutions have considerable flexibility 

under the existing regulations to 

provide appropriate disaster relief. Such 

relief efforts may include, but would not 

necessarily be limited to, extending the 

terms of loan repayment or restructuring 

a borrower’s debt obligations. In 

addition, a Farm Credit institution may 

consider easing some loan 

documentation or credit-extension 

terms for new loans to certain borrowers 

or requesting the FCA to grant relief 

from specific regulatory requirements. It 

is the FCA’s belief that the principal 

objectives of any disaster assistance 

program developed by a Farm Credit 

institution and approved by its board 

should be to: 

1. Provide necessary and timely relief 

to disaster-affected customers of the 

institution; 

2. Minimize the adverse effects of the 

disaster on the profitability, financial 

condition, operating efficiency, and 

morale of customers, as well as on the 

institution; 

3. Review applicable statutory and 

regulatory requirements and determine 

whether requesting the FCA to provide 

exceptions from regulatory requirements 

would be appropriate; and 

4. Promote, through such 

consideration and actions, the Farm 

Credit System’s mandate to provide 

American farmers and ranchers with 

sound, adequate, and constructive credit 

and closely related services. 

The FCA further believes that proper 

risk controls and management oversight 

should be exercised to ensure that such 

efforts serve the interests of the lending 

institution as well as those of the 

community. Any institution providing 

disaster relief should document such 

relief actions as well as any significant 

departures from otherwise applicable 

institution policies and procedures. 

The aforementioned objectives and 

risk controls are conditions and 

characteristics on which the FCA will 

evaluate an institution’s relief activities. 

These objectives and risk controls 

should be set forth in any request to the 

FCA for specific regulatory relief. 

The FCA also recognizes that 

conditions related to a disaster may 

impair an institution’s ability to comply 

in a timely way with regulatory 

reporting and publishing requirements. 

Farm Credit institutions should contact 

their FCA field office when relief from 

specific regulatory or reporting 

requirements is needed. 

Additionally, the Board of Governors 

of the Federal Reserve System (Federal 

Reserve Board) has, from time to time, 

granted relief from certain Regulation Z 

requirements to consumers located in 

declared disaster areas. It is likely that 

the Federal Reserve Board will continue 

to promulgate similar temporary 

exceptions in disaster-affected areas. 

When this occurs, the FCA will, as a 

matter of convenience, continue to 

notify the Farm Credit institutions 

affected by Regulation Z exceptions. 

Dated this 13th day of June, 1996. 

By Order of the FCA Board. 

Floyd Fithian, 

Secretary to the Board. 

Financial Institution Rating System 

(FIRS) 

FCA–PS–72 

Effective Date: 27–JAN–05. 

Effect on Previous Action: None. 

Source of Authority: Sections 5.9 and 

5.17 of the Farm Credit Act of 1971, as 

amended. 

The Farm Credit Administration Board 

Hereby Adopts the Following Policy 

Statement: 

I. Policy 

The Financial Institution Rating 

System (FIRS) shall be the rating system 

used by Farm Credit Administration 

(FCA or Agency) examiners for 

evaluating and categorizing the safety 

and soundness of Farm Credit System 

(System) institutions on an ongoing, 

uniform, and comprehensive basis. 

The FIRS will provide valuable 

information to the Agency for assessing 

risk and allocating resources based on 

the safety and soundness of regulated 

institutions. Ratings assigned to 

regulated institutions will be adjusted 

periodically so that they accurately 

reflect the condition of institutions. 

II. Standards and Implementation 

Based on the conclusions reached in 

the ongoing examination of an 

institution’s financial, managerial, and 

operational condition, FCA examiners 

will assign ratings to each of the rating 

factor components and assign a 

composite rating that reflects the 

condition and overall safety and 

soundness of the System institution. 

These ratings shall be reported to the 

institution’s Board of Directors and 

Chief Executive Officer. 

Component and composite ratings are 

assigned on a 1 to 5 numerical scale. A 

1-rating indicates the strongest 

performance and management practices 

and the least degree of supervisory and 

regulatory concern, while a 5-rating 

indicates an extremely high, immediate 

or near-term probability of failure and 

unsatisfactory management practices 

and, therefore, the highest degree of 

concern. 

Although each institution has its own 

examination and supervisory issues and 

concerns, the FIRS is structured to 

evaluate all significant financial, asset 

quality, and management factors 

common to all System institutions. 

Examination criteria for each of the 

rating components are defined in the 

FCA Examination Manual, which is 

available to the public. The FCA 

Examination Manual also incorporates 

the evaluative criteria under which 

component and composite ratings are 

assigned. 

Composite Rating 

The FIRS provides a general 

framework for assimilating and 

evaluating all significant financial, 

managerial, and operational factors to 

assign a composite rating to each 

System institution. The composite 

rating is based on a qualitative and 

quantitative analysis of the factors 

comprising each of the following 

components, the interrelationships 

among components, and the overall 

level of concern for those risks that 

affect a System institution. 

The composite rating does not assume 

a predetermined weight for each 

component nor does it represent an 

arithmetic average of assigned 

component ratings. The weight given to 

any individual component in 

determining composite ratings varies 

depending on the degree of concern 

associated with the component and the 

threat posed to the overall safety and 

soundness of the institution. 

Component Ratings 

Listed below is a brief description of 

the FIRS components and the more 

common evaluative criteria and factors 

considered under each component. 

• Capital—A System institution is 

expected to maintain capital 

commensurate with the nature and 

extent of risks to the institution and the 

ability of management to identify, 

measure, monitor, and control these 

risks. The capital component is based 

on an evaluation of an institution’s 

capacity to absorb losses and provide for 

future growth. An evaluation of capital 

relies on many factors such as 

regulatory capital requirements, trends, 

portfolio and institutional risk, growth, 

adequacy of risk funds, management 

capability, and other factors as 

appropriate. 

• Assets—This component is based 

on an assessment of both the quality of 

the current portfolio and the quality of 

the associated management processes 

that substantially impact the quality of 

Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 71159 

assets. An assessment of assets relies on 

many factors such as loan portfolio 

management, investment portfolio 

management, loan portfolio trends, risk 

identification processes, credit 

administration, allowance for loan 

losses, and other factors that affect the 

quality, performance, income producing 

capacity, and stability of assets. 

• Management—The management 

component is based on an assessment of 

board and management performance 

against all factors considered necessary 

to operate the institution within 

accepted banking practices and in a safe 

and sound manner in accordance with 

applicable laws, regulations, and 

guidelines. 

• Earnings—This component is based 

on an evaluation of the quantity, 

quality, and sustainability of the 

institution’s earning performance. An 

evaluation of earnings considers factors 

such as the level of earnings, 

composition and quality of net income, 

stability of earnings performance, 

relationship to portfolio risk, quality of 

earnings management, and other factors 

as deemed appropriate. 

• Liquidity—The liquidity component 

is based on an evaluation of an 

institution’s capacity to promptly meet 

the demand for payment of its 

obligations, fund its loan portfolio, and 

readily meet the reasonable credit needs 

of the territory served. An evaluation of 

liquidity also considers continued 

access to funding, the existence of 

secondary sources of liquidity, and 

other factors as deemed appropriate. 

• Sensitivity—This component 

reflects the degree to which changes in 

interest rates may affect earnings or the 

market value of an institution’s equity. 

An evaluation of this component 

considers such factors as the size and 

complexity of the institution’s financial 

activities, the level of interest rate risk 

exposure relative to capital and 

earnings, investment and derivatives 

activities, management’s ability to 

identify, measure, monitor, project, and 

control interest rate risk, and other 

factors as deemed appropriate. 

III. Responsibility 

It is the responsibility of the Chief 

Examiner to ensure that the components 

used to support the composite ratings 

are reviewed periodically to make 

certain they reflect the material matters 

that impact the safety and soundness of 

institutions. In this respect, the Chief 

Examiner shall make recommendations 

to the FCA Board to add or delete 

components as necessary. Specific 

evaluative criteria and factors for 

determining component and composite 

ratings shall be established by the Chief 

Examiner and incorporated in the FCA 

Examination Manual or by other means 

as appropriate. The Chief Examiner is 

responsible for ensuring that ratings 

assigned to institutions are 

commensurate with and accurately 

reflect the risk in the institutions. 

IV. Reporting 

At least quarterly, the Chief Examiner 

will provide the FCA Board a report of 

the composite rating of all FCS 

institutions. 

V. Implementation 

System institutions examined after 

the date this policy is adopted by the 

FCA Board will be assigned composite 

and component ratings in accordance 

with this Policy Statement. 

Dated this 27th day of January, 2005. 

By Order of the Board. 

Jeanette C. Brinkley, 

Secretary to the Board. 

Borrower Privacy 

FCA–PS–77 

Effective Date: 10–NOV–99. 

Effect on Previous Action: None. 

Source of Authority: Section 5.9 of the 

Farm Credit Act of 1971, as amended. 

The Farm Credit Administration (FCA) 

Board Hereby Adopts the Following 

Policy Statement 

The Farm Credit Administration 

Board believes that consumer privacy is 

an important component of individual 

freedom. The FCA Board also realizes 

that the free flow of information is 

necessary for the functioning of our 

democratic society and market 

economy. As cooperative institutions 

organized using the principles of 

democracy and free markets, these same 

issues are important to Farm Credit 

System (System) institutions and their 

shareholders. Moreover, since Farm 

Credit institutions are owned and 

directed by the farmers, ranchers and 

cooperatives who borrow from them, the 

privacy and security of customer 

information is vital to the System’s 

continued dependability and long-term 

success. 

Recently we have witnessed the 

proliferation of businesses that 

specialize in the collection and 

dissemination of personal financial 

information. These ‘‘information 

brokers’’ market public and nonpublic 

information to various customers. 

Advances in computer technology have 

enabled ‘‘information brokers’’ to access 

and distribute personal financial 

information easily, cheaply, and 

without a consumer’s knowledge or 

consent. 

Since 1972, FCA regulations have 

required that borrower information be 

held in strict confidence by Farm Credit 

institutions, their directors, officers and 

employees. Our regulations at 12 CFR 

Part 618, Subpart G specifically restrict 

Farm Credit institution directors and 

employees from disclosing information 

not normally contained in published 

reports or press releases about the 

institution or its borrowers or members. 

These regulations also provide Farm 

Credit institutions clear guidelines for 

protecting their borrowers’ nonpublic 

personal information. 

The FCA Board believes that Farm 

Credit institutions have a responsibility 

to inform their shareholders of their 

obligation to protect shareholders’

nonpublic personal information. 

Therefore, Farm Credit institutions 

should inform new borrowers at loan 

closing of the FCA regulations on 

releasing borrower information. Farm 

Credit institutions should also address 

this information in the Annual Report to 

Shareholders. The implementation of 

these measures will ensure that new and 

existing borrowers are aware of the 

privacy protections afforded them 

through FCA regulations and Farm 

Credit System institution efforts. 

Dated this 10th day of November, 1999. 

By Order of the Board. 

Vivian L. Portis, 

Secretary to the Board. 

Official Names of Farm Credit System 

Institutions 

FCA–PS–78 

Effective Date: May 3, 2000. 

Effect on Previous Action: Supercedes 

FCA–PS–63 [NV–96–22] 05/30/96. 

Source of Authority: Sections 1.3(b), 

2.0(b)(8), 2.10(c), 3.0, 5.17(a)(2)(A), 7.0, 

7.6(a), 7.8(a) of the Farm Credit Act of 

1971, as amended; 12 CFR Part 611. 

The Farm Credit Administration (FCA 

or Agency) Board Hereby Adopts the 

Following Policy Statement 

Objective 

Our objective is to ensure that the 

public can identify a Farm Credit 

System (System) bank, association, or 

service corporation as belonging to the 

Farm Credit System and is not misled 

by the name the institution uses. We 

also believe that Farm Credit System 

institutions should have more flexibility 

in proposing official names for their 

institutions. Our prior policy required 

institutions’ official names to include 

either a statutory or regulatory 

designation, or its corresponding 

acronym. The new policy expands the 

methods by which institutions may 

identify themselves as members of the 

71160 Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / Notices 

1Farm Credit System bank includes Farm Credit 

Banks, Banks for Cooperatives, and Agricultural 

Credit Banks. 

System and adopts a policy for trade 

names and names of subsidiaries. 

Official Names 

The FCA Board will approve an 

official name for a Farm Credit System 

bank,1 association, or service 

corporation that meets the following 

two requirements: 

• The name includes appropriate 

identification of the institution as a 

System institution; and 

• The name is not misleading or 

inappropriate. 

• Appropriate identification means 

the name contains either 1) the relevant 

statutory or regulatory designation, or 

its corresponding acronym, or 2) other 

appropriate identification as a System 

institution. Relevant statutory and 

regulatory designations, and their 

corresponding acronyms, are as follows: 

• Agricultural Credit Bank or ACB. 

• Bank for Cooperatives or BC. 

• Farm Credit Bank or FCB. 

• Agricultural Credit Association or 

ACA. 

• Production Credit Association or 

PCA. 

• Federal Land Credit Association or 

FLCA. 

• Federal Land Bank Association or 

FLBA. 

Other appropriate identification as a 

System institution includes the 

following: 

• Farm Credit Services. 

• Farm Credit. 

• FCS. 

• A member of the Farm Credit 

System. 

Misleading names are those that a 

reasonable person might find confusing. 

For example, we would not issue a 

charter to an institution requesting a 

name that is the same as or similar to 

that of an existing institution because 

the public might find this confusing. 

Merely avoiding identical names is not 

enough; to minimize confusion, a 

proposed name must sufficiently 

distinguish an institution from other 

institutions. If the Agency had approved 

a charter for an institution using 

MyTown, ACA, as its official name, it 

would not issue a charter for an 

institution proposing ACA of MyTown 

or MyTown Farm Credit Services, ACA, 

as its official name. Nor would we issue 

a charter with the phrase ‘‘farm credit 

association’’ as part of the official name, 

because the inevitable use of the 

acronym ‘‘FCA’’ would be confused 

with the name of the Agency. Also, we 

would not approve a name for an 

institution that could cause the public 

to confuse that institution’s authorities 

and services with those of a commercial 

bank, thrift institution, or credit union. 

For example, we would not issue a 

charter to a System institution 

requesting the term ‘‘national bank’’ in 

its official name because this could 

cause confusion regarding the services 

the institution may offer. 

Trade Names 

A System institution may use a trade 

name. The trade name may not be 

misleading. If an institution uses a trade 

name, it must use both the official and 

trade names in all written 

communications. 

Related Issues 

If an ACA and its subsidiaries operate 

under substantially different names, 

they must clearly identify the parent/ 

subsidiary relationship in all written 

communications. For example, if 

MyTown, PCA, is a subsidiary of 

EveryTown, ACA, the PCA must 

identify itself as a subsidiary of the 

parent ACA in its written 

communications. 

Please note that while the FCA cannot 

reserve names, the Patent and 

Trademark Office will register names 

under certain conditions. When 

applying for a name change or new 

charter, System institutions should 

submit a statement indicating whether 

they have applied for a trademark in 

that name. 

This statement addresses only FCA’s 

policy. Other laws, such as Federal or 

state trademark laws, may apply. 

Institutions should ensure that their 

official and trade names do not infringe 

the trademarks or service marks of other 

companies. Institutions may wish to 

consult legal counsel to determine 

whether their proposed names could be 

challenged or protected under state or 

federal law. 

Dated this 3rd day of May, 2000. 

By Order of the Board. 

Nan P. Mitchem, 

Acting Secretary, Farm Credit Administration 

Board. 

Dated: November 17, 2005. 

Jeanette C. Brinkley, 

Secretary, Farm Credit Administration Board. 

[FR Doc. 05–23237 Filed 11–23–05; 8:45 am] 

BILLING CODE 6705–01–P 

FEDERAL MINE SAFETY AND HEALTH 

REVIEW COMMISSION 

Sunshine Act Meeting 

November 17, 2005. 

TIME AND DATE: 10 a.m., Thursday, 

December 1, 2005. 

PLACE: The Richard V. Backley Hearing 

Room, 9th Floor, 601 New Jersey 

Avenue, NW., Washington, DC. 

STATUS: Open. 

MATTERS TO BE CONSIDERED: The 

Commission will consider and act upon 

the following in open session: Secretary 

of Labor v. Martin County Coal 

Corporation and Geo/Environmental 

Associates, Docket Nos. KENT 2002–

42–R, KENT 2002–43–R, KENT 2002–

44–R, KENT 2002–45–R, KENT 2002–

251, KENT 2002–261, and KENT 2002–

262. (Issues include whether the judge 

properly dismissed citations issued to 

Martin County Coal Corp. and Geo/ 

Environmental Associates for various 

violations of 30 CFR 77.216(d), 77.216–

3(d), and 77.216–4(a)(2); whether Martin 

County Coal Corp. violated 30 CFR 

77.216(d) as found by the judge; and 

whether and Geo/Environmental 

Associates violated 30 CFR 77.216–

4(a)(7) as found by the judge). 

The Commission will hear oral 

argument in this matter on November 

17, 2005. 

Any person attending this meeting 

who requires special accessibility 

features and/or auxiliary aids, such as 

sign language interpreters, must inform 

the Commission in advance of those 

needs, subject to 29 CFR 2706.150(a)(3) 

and 2706.160(d). 

CONTACT PERSON FOR MORE INFORMATION: 

Jean Ellen, (202) 434–9950/(202) 708–

9300 for TDD Relay/1–800–877–8339 

for toll free. 

Jean H. Ellen, 

Chief Docket Clerk. 

[FR Doc. 05–23313 Filed 11–21–05; 4:03 pm] 

BILLING CODE 6735–01–M 

GENERAL SERVICES 

ADMINISTRATION 

[FAI N03] 

Federal Acquisition Institute/Defense 

Acquisition University Vendor Meeting 

AGENCY: Office of the Chief Acquisition 

Officer, General Services 

Administration (GSA). 

ACTION: Notice of meeting. 

SUMMARY: The Federal Acquisition 

Institute (FAI) and the Defense 

Acquisition University (DAU) will hold