PART 600-ORGANIZATION AND FUNCTIONS

Subpart A-Farm Credit Administration

Sec.

600.1 The Farm Credit Act.

600.2 Farm Credit Administration.

600.3 Farm Credit Administration Board. 600.4 Chairman of the Farm Credit Administration Board.

600.5 Organization of the Farm Credit Administration.

Subpart B-Rules and Procedures for ServIce Upon the Farm Credit Administration

600.10 Service of Process.

AUTHORITY: Secs. 5.9, 5.17; 12 U.S.C. 2243,

2252.

SOURCE: 53 FR 16693, May 11, 1988, unless otherwise noted.

Subpart A-Farm Credit Administration

$600.1 The Farm Credit Act.

The Farm Credit Act of 1971, Pub. L. 92-181 recodified and replaced the prior laws under which the Farm Credit Administration and the institutions of the Farm Credit System were organized and operated. The prior laws, which were repealed and superseded by the Act, are identified in section 5.40(a) of the Act. Subsequent amendments to the Act and enactment dates are as follows: Pub. L. 94-184, December 31, 1975; Pub. L. 95-443, October 10, 1978; Pub. L. 96-592, December 24, 1980; Pub. L. 99190, December 19, 1985; Pub. L. 99-198, December 23, 1985; Pub. L. 99-205, December 23, 1985; Pub. L. 99-509, October 21, 1986; Pub. L. 100-233, January 1988; Pub. L. 100-399, August 17, 1988; Pub. L. 100-460, October 1, 1988; Pub. L. 101-73, August 9, 1989; Pub. L. 101-220, December 12, 1989; Pub. L. 101-624, November 28, 1990. The law is codified at 12 U.S.C. 2000, et. seq.

[53 FR 16693, May 11, 1988, as amended at 56 FR 2672, Jan. 24, 1991]

$600.2 Farm Credit Administration.

The Farm Credit Administration is an independent, non-appropriated fund agency in the executive branch of the Federal Government. It is composed of the Farm Credit Administration Board and such other personnel as are employed in carrying out the functions, powers, and duties vested in the Farm Credit Administration. The mailing address of the central offices of the Farm Credit Administration is McLean, Virginia 22102-5090. The hours of business in the central offices are 8:30 a.m.-5:00 p.m. (eastern time), Monday through Friday, excluding Federal holidays.

$600.3 Farm Credit Administration Board.

(a) Organization. The Farm Credit Administration Board (Board) is a fulltime, three-member board entrusted with the responsibility to manage the Farm Credit Administration. The Board consists of three members appointed by the President with the advice and consent of the Senate. The Board may not contain more than two members of the same political party. One member is designated by the President as Chairman of the Board for the duration of such member's term. Each member of the Board shall serve a single 6-year term and cannot be reappointed except in the case of such members who are initially appointed for less than a 6-year term on initial formation of the Board or any member who is appointed to fill an unexpired term of less than 3 years. A member of the Board shall continue to serve subsequent to the expiration of that member's term until the point in time at which an eligible successor has taken his or her oath of office. A person appointed to the Board shall subscribe to the oath of office within 15 days after having received notice of appointment. Each Board member is assisted by a staff.

(b) Functions and responsibilities. The Board manages, administers, and establishes policies for the Farm Credit Administration. Specifically, the Board prescribes the rules and regula

tions necessary for the implementation of the Farm Credit Act of 1971, as amended, and provides for the examination of Farm Credit System institutions and for the performance of all the : powers and duties vested in the Farm Credit Administration.

$600.4 Chairman of the Farm Credit Administration Board.

(a) The Chairman of the Board is the Chief Executive Officer of the Farm Credit Administration. The Chairman is responsible for directing the implementation of the policies and regulations adopted by the Board and, after consultation with the Board, the execution of the administrative functions and duties of the Farm Credit Administration. In carrying out policies as directed by the Board, the Chairman acts as the spokesperson for the Board and represents the Board and the Farm Credit Administration in their official relations within the Federal Government. Under policies adopted by the Board, the Chairman consults with the Secretary of Treasury, Board of Governors of the Federal Reserve System, and the Secretary of Agriculture on specific matters.

(b) The Chairman appoints such personnel as may be necessary to carry out the functions of the Farm Credit Administration except that the appointment of Office Directors by the Chairman shall be subject to the approval of the Board, and regular, fulltime personnel employed in the immediate office of each Board member shall be appointed by each such Board member. The powers of the Chairman as Chief Executive Officer necessary for day-to-day management may be exercised and performed by the Chairman through such other officers and employees of the Farm Credit Administration as the Chairman may designate except that the Chairman may not delegate powers specifically reserved to the Chairman by the Act without the approval of the Board.

$600.5 Organization of the Farm Credit Administration.

(a) Office Directors. Each Office of the Farm Credit Administration is headed by a Director who may, with the approval of the Chairman, establish and

fix the responsibilities of the divisions and such other units as the Director deems necessary for the efficient functioning of the Office.

(b) Offices and Functions-(1) Office of Examination. The Office of Examination plans and conducts examinations of the Farm Credit System institutions and other institutions as required by law, prepares and issues reports of examination summarizing examination findings, and recommends corrective action as appropriate. The Office of Examination recommends formal administrative action to correct deficiencies when institutions are found to be operating in an unsafe or unsound manner or are in violation of law or regulation. The Office Director prepares examination schedules for approval by the Board and advises the Board on matters affecting policy, regulation, and legislation relating to examination activities. The Director, Office of Examination, is the Chief Examiner of the Farm Credit Administration. The Office of Examination issues, or recommends that the Board issue, prudential lending and operating standards for Farm Credit System institutions, and takes actions, or recommends that the Board take actions, relating to changes in System charters and other activities of the institutions as required by law or regulation. The Office of Examination collects financial data from System institutions and conducts ongoing financial and economic analy

ses.

(2) Office of Regulatory Enforcement. The Office of Regulatory Enforcement is responsible for the agency's supervision and enforcement activities for all Farm Credit System institutions requiring more than normal attention. The Office of Regulatory Enforcement recommends to the Board and, upon its approval, exercises statutory enforcement powers where unsafe and unsound System practices are found or where the rules, regulations, or orders of the Board are violated. In addition, the Office of Regulatory Enforcement supervises the operations of receivers and conservators of Farm Credit institutions and provides support services for the operations of the Farm Credit System Insurance Corporation.