When a loan is granted, the borrower invests at least 5 percent of the amount of his loan in the capital stock of the association. When the loan is repaid he may either list the stock for sale back to the association or convert it to nonvoting stock.

Each production credit association is controlled by a board of directors elected by and from its active borrowers. Each association member is entitled to one vote in these elections and on other matters affecting the association regardless of the amount of stock he owns.

INTEREST RATES

Production credit associations provide credit to members at the lowest possible cost consistent with sound business practices. The rate is dependent, in part, on the rates charged by the respective Federal intermediate credit banks under rate programs approved by the Farm Credit Administration. Dividends on stock and patronage distributions to members which may be paid by the associations could have the

effect of lowering the rate of interest charged.

SOURCE OF LOAN FUNDS

The associations obtain most of their loan funds from the Federal intermediate credit banks.

WHERE TO APPLY FOR A LOAN

Borrowers seeking loans from production credit associations should contact the association serving the county in which they live.

Banks for Cooperatives

The authority for the activities of the banks for cooperatives may be found in title III of the Farm Credit Act of 1971, as amended by the act of December 31, 1975 (89 Stat. 1060).

OWNERSHIP

All of the capital stock of the 12 district banks for cooperatives is held by borrowing cooperatives. All of the stock of the Central Bank for Cooperatives is held by the district banks.

The Central Bank for Cooperatives is controlled by a board of 13 directors. Twelve of these directors are elected, one each, by the district boards. The 13th is appointed by the Governor of the Farm Credit Administration with the advice and consent of the Federal Farm Credit Board.

ELIGIBILITY

Any association of farmers, ranchers, or producers or harvesters of aquatic products, or any federation of such associations which operates on a coopera

tive basis and provides marketing, processing, supply, or business service functions for its members may be eligible to borrow from a bank for cooperatives.

However, 80 percent of the voting control of such associations (70 percent in the case of rural electric, telephone, and public utility cooperatives) must be held by bona fide farmers, ranchers, or producers or harvesters of aquatic products or federations of such associations. The cooperative must also do as much business with or for members as it does with or for nonmembers. Excepted from this requirement is business transacted with the United States and services and supplies furnished by the cooperative as a public utility.

TYPES OF LOANS

The banks for cooperatives make three basic types of loans which are adapted to the particular needs of cooperatives. These are seasonal loans, term loans, and loans secured by commodities.

All the banks work together to provide a complete loan service to cooperatives. The Central Bank for Cooperatives participates with the district banks on larger loans.

INTEREST RATES

Interest rates are determined by the boards of directors with the approval of the Farm Credit Administration. Distributions of earnings by the banks

to their borrowers have the effect of reducing the rates of interest.

SOURCE OF LOAN FUNDS

The banks for cooperatives obtain the bulk of their loan funds through the sale of consolidated bonds to investors. These bonds are not guaranteed or insured by the Government in any way.

WHERE TO APPLY FOR A LOAN

A cooperative wishing to apply for a loan should contact the bank for cooperatives serving the State in which the cooperative has its headquarters.

Sources of Information

PUBLICATIONS AND

MOTION PICTURES

Pamphlet A-29 gives a complete descriptive listing of publications and motion pictures on the Farm Credit Administration and the cooperative Farm Credit System.

PROCUREMENT

The procurement office of the Farm Credit Administration may be contacted by writing to: Administrative Division, Farm Credit Administration, Washington, D.C. 20578.

For further information, contact the Information Division, Farm Credit Administration, Washington, D.C. 20578.

Approved.

DONALD E. WILKINSON,

Governor.

The Federal Communications Commission was created by the Communications Act of 1934 (48 Stat. 1064; 15 U.S.C. 21; 47 U.SC 35, 151-609) to regulate interstate and foreign communications by wire and radio in the public interest. It was assigned additional regulatory jurisdiction under the provisions of the Communications Satellite Act of 1962 (76 Stat. 419; 47 U.S.C. 701-744). The scope of the regulation includes radio and television broadcasting; telephone, telegraph, and cable television operation; two-way radio and radio operators; and satellite communication.

In administering the programs necessary to carry out its regulatory responsibility the Commission is assisted by a General Counsel, who in addition to his typical duties exercises exclusive control of court appeals involving broadcast matters, an Executive Director, a Chief Engineer, a Chief of Plans and Policy, and the Chiefs of five bureaus, to whom has been delegated certain licensing and grant authority. This licensing and grant responsibility is depicted on page 506.

To assist the Commission in exercising its responsibility in the adjudica

tory process, there is a Review Board to review initial decisions and write decisions and an Office of Opinions and Review to assist the Commission and individual Commissioners in the disposition of matters arising in cases of adjudication (as defined in the Administrative Procedure Act) which have been designated for hearings. Also, there is a corps of Administrative Law Judges, qualified and appointed pursuant to the requirements of the Administrative Procedure Act, who conduct evidentiary adjudicatory hearings and write initial decisions.

Activities

BROADCAST

The Broadcast Bureau administers the regulatory program for the following broadcast services: standard (AM), frequency modulation (FM), television (TV), instructional TV fixed (ITFS), experimental, international shortwave, and related auxiliary services; issues construction permits, operating licenses, and renewals or transfers of licenses; and oversees compliance by broadcasters with statutes and Commission policies.

CABLE TELEVISION

Cable television system operators must obtain a certificate of compliance from the Commission before commencing operation or adding additional television broadcast signals to existing operations. The Cable Television Bureau administers the program for cable television and the cable television relay services (CARS), including the issuance of certificates of compliance and CAR authorizations, and maintaining regulatory relationships with State and local jurisdictions that also have responsibility and authority concerning cable television systems.

COMMON CARRIER COMMUNICATIONS In interstate and international common carrier communications by telephone, telegraph, radio, and satellite, the Common Carrier Bureau administers the regulatory program. Common carriers include companies, organizations, or individuals providing communications services to the public for hire, who must serve all who wish to use them at established rates. In providing interstate and foreign communications services, common riers may employ landline wire or cable facilities, point-to-point microwave radio (signals relayed by stations spaced at given intervals), land mobile radio (two-way telephone or one-way signaling communications between base and mobile units), or satellite systems. Communications services between the United States and overseas points by common carriers are provided by ocean cable, high frequency radio, and satellite communications.

OTHER RADIO USES

car

The Commission regulates the use of radio for many purposes other than broadcast and common carrier communication. The Safety and Special Radio Services Bureau administers the regulation of the following radio services: aviation, marine, amateur, public fixed stations in Alaska, public

safety (police, fire, etc.), industrial (manufacturers, petroleum, etc.), land transportation (railroad, taxicab, etc.), and citizens (private, short-distance radiocommunications, signaling, control of objects, etc.), and of implementing the compulsory provisions of laws and treaties covering the use of radio for the safety of life at sea. The Office of Chief Engineer administers the regulation of the experimental and low power equipment.

ENFORCEMENT

Much of the investigative and enforcement work of the Commission is carried out by its field staff. The Field Operations Bureau has 3 Regional Offices, 31 field offices, and 13 monitoring stations. It also operates a nationwide fleet of mobile monitoring vehicles for technical enforcement purposes. The field staff, in effect, are the Commission's "eyes and ears" in detecting radio violations and enforcing rules and regulations. Monitoring

stations maintain continuous surveillance of the radio spectrum, detecting unlicensed operation and activities or nonconforming transmission, and furnish radio bearings on ships and planes in distress.

RADIO OPERATORS

The commercial radio operator program is administered by the Field Operations Bureau. The Safety and Special Radio Services Bureau administers the amateur operator program.

Sources of Information

Inquiries for information on the special subjects listed in the following paragraphs and those concerning licensing/ grant requirements in the various services may be directed to the person or office specified or to the Chief of the Bureau or Office listed below as having responsibility for the service, Federal Communications Commission, 1919 M Street NW., Washington, D.C. 20554.