Cooperative Operating Philosophy-Serving the Members of Farm Credit System Institutions, 64728-64729 [2010-26433]
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Federal Register / Vol. 75, No. 202 / Wednesday, October 20, 2010 / Notices
the potential for building more capital at
the bank level. After giving the public
notice with the opportunity to comment
and receiving no comments, the FCA
Board has approved the draft Agreement
in accordance with § 627.2750(h) of our
regulations. The FCA’s approval of the
draft Agreement is conditioned on the
board of directors of each bank and the
Funding Corporation approving the
Agreement and the FCSIC providing an
expression of non-objection to the
Agreement. The Agreement cannot be
modified or amended without our
approval.
Neither the Agreement (upon its
effective date) nor our approval of it will
in any way restrict or qualify the FCA’s
authority to exercise our powers, rights,
and duties as a regulator or, as stated
above, to invoke joint and several
liability provisions under the Act.
Furthermore, the Agreement does not
provide any grounds or basis for
challenging the FCA’s or the FCSIC’s
actions with respect to the creation or
conduct of conservatorships or
receiverships. Finally, the FCA retains
the right to modify or revoke its
approval of the Agreement at any time.
Dated: October 14, 2010.
Roland E. Smith,
Secretary, Farm Credit Administration Board.
[FR Doc. 2010–26434 Filed 10–19–10; 8:45 am]
BILLING CODE 6705–01–P
FARM CREDIT ADMINISTRATION
[BM–14–OCT–10–02]
Cooperative Operating Philosophy—
Serving the Members of Farm Credit
System Institutions
Farm Credit Administration.
Policy statement.
AGENCY:
ACTION:
The Farm Credit
Administration (FCA) Board recently
adopted a policy statement that
reaffirms the FCA’s support of members’
participation in their Farm Credit
System (System) institution and
identifies three business practices for
operating the cooperative with a focus
on serving the members. Those practices
are engaging members as owners,
communicating with members, and
providing value-added benefits to
members.
DATES: Effective Date: October 14, 2010.
FOR FURTHER INFORMATION CONTACT:
Deborah Wilson, Senior Accountant,
Office of Regulatory Policy, Farm Credit
Administration, McLean, VA 22102–
5090, (703) 883–4498, TTY (703) 883–
4434, or Laura McFarland, Senior
Counsel, Office of General Counsel,
emcdonald on DSK2BSOYB1PROD with NOTICES
SUMMARY:
VerDate Mar<15>2010
17:17 Oct 19, 2010
Jkt 223001
Farm Credit Administration, McLean,
VA 22102–5090, (703) 883–4020, TTY
(703) 883–4020.
SUPPLEMENTARY INFORMATION: The FCA
Board adopted a policy statement
reaffirming its support for the
cooperative structure and operation of
System institutions. The policy
statement, in its entirety, follows:
The FCA Board Hereby Adopts the
Following Policy Statement:
Cooperative Operating Philosophy—
Serving the Member of Farm Credit
System Institutions FCA–PS–80 [BM–
14–OCT–10–02]
Effective Date: 14–OCT–10.
Effect on Previous Actions: None.
Source of Authority: Preamble and
section 1.1 of the Farm Credit Act of
1971, as amended.
Cooperative Commitment
The Farm Credit Administration
(FCA) is committed to the cooperative
structure under which Farm Credit
System (System) institutions are
required to operate.1 The FCA
emphasizes cooperative principles by
advancing regulatory proposals that
encourage farmer, rancher, and
cooperative borrowers to participate in
the management, control, and
ownership of their institutions.2 The
FCA also emphasizes cooperative
principles in the examination function
and Financial Institution Rating System
(FIRS) used to categorize the safety and
soundness of System institutions.3
The FCA supports cooperative values
that encourage member participation in
System institutions. Cooperatives are,
by definition, entities with a ‘‘member
focus.’’ They are owned and controlled
by their members, and the members
benefit from doing business with their
cooperatives. Cooperative entities that
focus on serving and fulfilling the needs
of their members often realize greater
participation in their institutions. While
System institutions have strong
reputations as effective cooperatives,
they should build on this tradition
1 See § 615.5230, ‘‘Implementation of cooperative
principles.’’
2 See FCA Policy Statement ‘‘Regulatory
Philosophy’’ (FCA–PS–59), dated June 8, 2005.
3 Under FIRS, each institution is assigned
composite and component ratings based on an
evaluation of the adequacy of Capital, Assets,
Management, Earnings, Liquidity, and Sensitivity to
market risk (commonly referred to as ‘‘CAMELS’’).
Composite and component ratings are assigned
based on a 1 to 5 numerical scale, with 1 being the
highest rating indicating the strongest level of
performance and risk management practices and the
least degree of supervisory concern. Within the
Management component, FCA qualitatively rates
the use of cooperative principles in the conduct of
business activities. Please visit www.fca.gov for
further information on FIRS.
PO 00000
Frm 00038
Fmt 4703
Sfmt 4703
through a cooperative business culture
that goes beyond that required by statute
and regulation.
History
The System is a Governmentsponsored enterprise of cooperative
institutions owned and controlled by
their member-borrowers.4 Prior to
establishment of the System, a political
consensus had been forming in Congress
on a need for an improved system of
credit delivery to agriculture. When
Congress established the System in
1916,5 it determined that the
cooperative structure was the best
model for furnishing sound, adequate
and constructive credit and closely
related services to rural areas.6
Subsequent Farm Credit legislation,
including the Farm Credit Act of 1971,
as amended, has reaffirmed the
cooperative nature of the System.
Policy on Implementing a Cooperative
Operating Philosophy—Serving the
Members
The System, through its cooperative
structure, makes competitive credit
available to creditworthy farmers,
ranchers, producers and harvesters of
aquatic products, and their
cooperatives. The FCA believes the
following three core cooperative
principles are the foundation of the
System’s structure: 7
(1) The cooperative is owned by its
members.8
(2) The cooperative is controlled by
its members.
(3) The members benefit from doing
business with, and participating in, the
management, control, and ownership of
their institution.
While business practices may change
over time, these underlying cooperative
4 The Preamble and section 1.1 of the Farm Credit
Act of 1971, as amended (Act), Public Law 92–181,
85 Stat. 583.
5 The Federal Farm Loan Act, Public Law 64–158,
39 Stat. 360.
6 The cooperative structure of the System was
viewed by Congress as providing greater safeguards
than other structures under consideration at the
time.
7 The International Co-operative Alliance (ICA),
an independent, non-governmental association, has
issued a statement on cooperative identity in which
they espouse seven principles as guidelines for
cooperatives to put their values into practice. Those
seven principles are voluntary and open
membership, democratic member control, member
economic participation, autonomy and
independence, training and information,
cooperation among cooperatives, and concern for
community. The principles can be found on the ICA
Web site, https://www.ica.coop.
8 Under 4.3A of the Act, borrower-members of a
System institution acquire voting stock at loan
origination and hold allocated equities generated by
patronage distributions from net earnings.
Borrower-members’ voting stock and allocated
equities are at-risk investments.
E:\FR\FM\20OCN1.SGM
20OCN1
Federal Register / Vol. 75, No. 202 / Wednesday, October 20, 2010 / Notices
principles have sufficient flexibility to
ensure changes in best practices remain
member focused. System institutions
should apply cooperative business
practices in a manner that best serves
their members and meets their mission
as Government–sponsored enterprises,
while continuing to operate in a safe
and sound manner, by
(1) Engaging members as owners,
(2) Communicating with members,
and
(3) Providing value-added benefits to
members.
Serving the Members of Farm Credit
System Institutions
Operating in a cooperative manner
requires the boards of directors and
management to engage, communicate,
and provide value-added benefits to
members. System institutions should
proactively identify opportunities to
reach out to member-borrowers beyond
the lending and related services
relationship.9
Many System institutions have been
innovative and diligent in maintaining a
cooperative philosophy in their
business operations. The FCA
encourages System institutions to
continue and further their efforts to
uphold a cooperative business culture.
In addition, the FCA Board challenges
the board and management of each
System institution to periodically
review and update their cooperative
philosophies and practices and ensure
that they maintain the focus to serve the
members.
Dated this 14th day of October 2010.
By Order of the Board.
Roland E. Smith,
Secretary, Farm Credit Administration Board.
[FR Doc. 2010–26433 Filed 10–19–10; 8:45 am]
BILLING CODE 6705–01–P
FEDERAL COMMUNICATIONS
COMMISSION
Notice of Public Information
Collection(s) Being Reviewed by the
Federal Communications Commission,
Comments Requested
October 12, 2010.
The Federal Communications
Commission, as part of its continuing
effort to reduce paperwork burden
invites the general public and other
Federal agencies to take this
opportunity to comment on the
emcdonald on DSK2BSOYB1PROD with NOTICES
SUMMARY:
9 At a later date, the FCA will issue an
Informational Memorandum to share its perspective
on cooperative business practices that System
institutions could use to reach out to their memberborrowers.
VerDate Mar<15>2010
17:17 Oct 19, 2010
Jkt 223001
following information collection(s), as
required by the Paperwork Reduction
Act (PRA) of 1995, 44 U.S.C. 3501–3520.
Comments are requested concerning (a)
whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
burden estimate; (c) ways to enhance
the quality, utility, and clarity of the
information collected; (d) ways to
minimize the burden of the collection of
information on the respondents,
including the use of automated
collection techniques or other forms of
information technology, and (e) ways to
further reduce the information
collection burden on small business
concerns with fewer than 25 employees.
The FCC may not conduct or sponsor a
collection of information unless it
displays a currently valid control
number. No person shall be subject to
any penalty for failing to comply with
a collection of information subject to the
Paperwork Reduction Act (PRA) that
does not display a valid OMB control
number.
DATES: Written Paperwork Reduction
Act (PRA) comments should be
submitted on or before December 20,
2010. If you anticipate that you will be
submitting comments, but find it
difficult to do so within the period of
time allowed by this notice, you should
advise the contact listed below as soon
as possible.
ADDRESSES: Direct all PRA comments to
Nicholas A. Fraser, Office of
Management and Budget via fax at 202–
395–5167 or via e-mail to
Nicholas_A._Fraser@omb.eop.gov and
to PRA@fcc.gov and
Cathy.Williams@fcc.gov. Include in the
e-mail the OMB control number of the
collection. If you are unable to submit
your comments by e-mail contact the
person listed below to make alternate
arrangements.
FOR FURTHER INFORMATION CONTACT: For
additional information about the
information collection, send an e-mail
to PRA@fcc.gov or contact Cathy
Williams at 202–418–2918.
SUPPLEMENTARY INFORMATION:
OMB Control Numbers: 3060–0906.
Title: 47 CFR Section 73.624(g), FCC
Form 317.
Form Numbers: 317.
Type of Review: Revision of a
currently approved collection.
Respondents: Business or other for
profit entities; Not for profit institutions;
State, local or Tribal government.
Number of Respondents/Responses:
9,351 respondents; 18,702 responses.
PO 00000
Frm 00039
Fmt 4703
Sfmt 4703
64729
Estimated Hours per Response: 2–4
hours.
Frequency of Response:
Recordkeeping requirement; Annual
reporting requirement.
Total Annual Burden: 56,106 hours.
Total Annual Cost: $1,402,650.
Obligation to Respond: Required to
obtain or retain benefits. The statutory
authority for this information collection
is contained in Sections 154(i), 301, 303,
336 and 403 of the Communications Act
of 1934, as amended.
Nature and Extent of Confidentiality:
There is no need for confidentiality with
this collection of information.
Privacy Act Assessment: No impact(s).
Needs and Uses: On September 30,
2004, the Commission adopted the
Report and Order, In the Matter of
Amendments of Parts 73 and 74 of the
Commission’s Rules to Establish Rules
for Digital Low Power Television
Translator, Television Booster Stations,
and to Amend Rules for Digital Class A
Television Stations, MB Docket No. 03–
185, FCC 04–220 (released September
30, 2004). In this Report and Order, the
Commission establishes rules and
policies for digital low power television
(‘‘LPTV’’) and television translator (‘‘TV
translator’’) stations and modifies certain
rules applicable to digital Class A TV
stations (‘‘Class A’’). The Commission
addresses important issues such as: (1)
The digital low power television
transition; (2) channel assignments; (3)
authorization of digital service; (4)
permissible service; (5) mutually
exclusive applications; (6) protected
service area; and (7) equipment and
other technical and operational
requirements. Furthermore, the Report
and Order adopts the following
information collection requirement:
47 CFR 73.624(g) adds a new group of
respondents to this collection (namely,
‘‘low power television, TV translator,
and Class A television station DTV
licensees’’). The Commission has also
revised FCC Form 317 and its
instructions to indicate that low power
television, TV translator, and Class A
television station DTV licensees are
required to file FCC Form 317 and to
report their ancillary and
supplementary services, make the
required payment to the Commission,
and retain the appropriate records.
OMB Control Numbers: 3060–0386.
Title: Special Temporary
Authorization (STA) Requests;
Notifications; and Informal Filings;
Sections 1.5, 73.1615, 73.1635, 73.1740,
and 73.3598; CDBS Informal Forms;
Section 73.788; FCC Form 337.
Form Numbers: 337.
Type of Review: Revision of a
currently approved collection.
E:\FR\FM\20OCN1.SGM
20OCN1
]]>Agencies
[Federal Register Volume 75, Number 202 (Wednesday, October 20, 2010)]
[Notices]
[Pages 64728-64729]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-26433]
-----------------------------------------------------------------------
FARM CREDIT ADMINISTRATION
[BM-14-OCT-10-02]
Cooperative Operating Philosophy--Serving the Members of Farm
Credit System Institutions
AGENCY: Farm Credit Administration.
ACTION: Policy statement.
-----------------------------------------------------------------------
SUMMARY: The Farm Credit Administration (FCA) Board recently adopted a
policy statement that reaffirms the FCA's support of members'
participation in their Farm Credit System (System) institution and
identifies three business practices for operating the cooperative with
a focus on serving the members. Those practices are engaging members as
owners, communicating with members, and providing value-added benefits
to members.
DATES: Effective Date: October 14, 2010.
FOR FURTHER INFORMATION CONTACT: Deborah Wilson, Senior Accountant,
Office of Regulatory Policy, Farm Credit Administration, McLean, VA
22102-5090, (703) 883-4498, TTY (703) 883-4434, or Laura McFarland,
Senior Counsel, Office of General Counsel, Farm Credit Administration,
McLean, VA 22102-5090, (703) 883-4020, TTY (703) 883-4020.
SUPPLEMENTARY INFORMATION: The FCA Board adopted a policy statement
reaffirming its support for the cooperative structure and operation of
System institutions. The policy statement, in its entirety, follows:
The FCA Board Hereby Adopts the Following Policy Statement:
Cooperative Operating Philosophy--Serving the Member of Farm Credit
System Institutions FCA-PS-80 [BM-14-OCT-10-02]
Effective Date: 14-OCT-10.
Effect on Previous Actions: None.
Source of Authority: Preamble and section 1.1 of the Farm Credit
Act of 1971, as amended.
Cooperative Commitment
The Farm Credit Administration (FCA) is committed to the
cooperative structure under which Farm Credit System (System)
institutions are required to operate.\1\ The FCA emphasizes cooperative
principles by advancing regulatory proposals that encourage farmer,
rancher, and cooperative borrowers to participate in the management,
control, and ownership of their institutions.\2\ The FCA also
emphasizes cooperative principles in the examination function and
Financial Institution Rating System (FIRS) used to categorize the
safety and soundness of System institutions.\3\
---------------------------------------------------------------------------
\1\ See Sec. 615.5230, ``Implementation of cooperative
principles.''
\2\ See FCA Policy Statement ``Regulatory Philosophy'' (FCA-PS-
59), dated June 8, 2005.
\3\ Under FIRS, each institution is assigned composite and
component ratings based on an evaluation of the adequacy of Capital,
Assets, Management, Earnings, Liquidity, and Sensitivity to market
risk (commonly referred to as ``CAMELS''). Composite and component
ratings are assigned based on a 1 to 5 numerical scale, with 1 being
the highest rating indicating the strongest level of performance and
risk management practices and the least degree of supervisory
concern. Within the Management component, FCA qualitatively rates
the use of cooperative principles in the conduct of business
activities. Please visit www.fca.gov for further information on
FIRS.
---------------------------------------------------------------------------
The FCA supports cooperative values that encourage member
participation in System institutions. Cooperatives are, by definition,
entities with a ``member focus.'' They are owned and controlled by
their members, and the members benefit from doing business with their
cooperatives. Cooperative entities that focus on serving and fulfilling
the needs of their members often realize greater participation in their
institutions. While System institutions have strong reputations as
effective cooperatives, they should build on this tradition through a
cooperative business culture that goes beyond that required by statute
and regulation.
History
The System is a Government-sponsored enterprise of cooperative
institutions owned and controlled by their member-borrowers.\4\ Prior
to establishment of the System, a political consensus had been forming
in Congress on a need for an improved system of credit delivery to
agriculture. When Congress established the System in 1916,\5\ it
determined that the cooperative structure was the best model for
furnishing sound, adequate and constructive credit and closely related
services to rural areas.\6\ Subsequent Farm Credit legislation,
including the Farm Credit Act of 1971, as amended, has reaffirmed the
cooperative nature of the System.
---------------------------------------------------------------------------
\4\ The Preamble and section 1.1 of the Farm Credit Act of 1971,
as amended (Act), Public Law 92-181, 85 Stat. 583.
\5\ The Federal Farm Loan Act, Public Law 64-158, 39 Stat. 360.
\6\ The cooperative structure of the System was viewed by
Congress as providing greater safeguards than other structures under
consideration at the time.
---------------------------------------------------------------------------
Policy on Implementing a Cooperative Operating Philosophy--Serving the
Members
The System, through its cooperative structure, makes competitive
credit available to creditworthy farmers, ranchers, producers and
harvesters of aquatic products, and their cooperatives. The FCA
believes the following three core cooperative principles are the
foundation of the System's structure: \7\
---------------------------------------------------------------------------
\7\ The International Co-operative Alliance (ICA), an
independent, non-governmental association, has issued a statement on
cooperative identity in which they espouse seven principles as
guidelines for cooperatives to put their values into practice. Those
seven principles are voluntary and open membership, democratic
member control, member economic participation, autonomy and
independence, training and information, cooperation among
cooperatives, and concern for community. The principles can be found
on the ICA Web site, https://www.ica.coop.
---------------------------------------------------------------------------
(1) The cooperative is owned by its members.\8\
---------------------------------------------------------------------------
\8\ Under 4.3A of the Act, borrower-members of a System
institution acquire voting stock at loan origination and hold
allocated equities generated by patronage distributions from net
earnings. Borrower-members' voting stock and allocated equities are
at-risk investments.
---------------------------------------------------------------------------
(2) The cooperative is controlled by its members.
(3) The members benefit from doing business with, and participating
in, the management, control, and ownership of their institution.
While business practices may change over time, these underlying
cooperative
[[Page 64729]]
principles have sufficient flexibility to ensure changes in best
practices remain member focused. System institutions should apply
cooperative business practices in a manner that best serves their
members and meets their mission as Government-sponsored enterprises,
while continuing to operate in a safe and sound manner, by
(1) Engaging members as owners,
(2) Communicating with members, and
(3) Providing value-added benefits to members.
Serving the Members of Farm Credit System Institutions
Operating in a cooperative manner requires the boards of directors
and management to engage, communicate, and provide value-added benefits
to members. System institutions should proactively identify
opportunities to reach out to member-borrowers beyond the lending and
related services relationship.\9\
---------------------------------------------------------------------------
\9\ At a later date, the FCA will issue an Informational
Memorandum to share its perspective on cooperative business
practices that System institutions could use to reach out to their
member-borrowers.
---------------------------------------------------------------------------
Many System institutions have been innovative and diligent in
maintaining a cooperative philosophy in their business operations. The
FCA encourages System institutions to continue and further their
efforts to uphold a cooperative business culture. In addition, the FCA
Board challenges the board and management of each System institution to
periodically review and update their cooperative philosophies and
practices and ensure that they maintain the focus to serve the members.
Dated this 14th day of October 2010.
By Order of the Board.
Roland E. Smith,
Secretary, Farm Credit Administration Board.
[FR Doc. 2010-26433 Filed 10-19-10; 8:45 am]
BILLING CODE 6705-01-P
