Management of ineligible investments and reservation of authority to require divestiture.

CFR · 2024-01-01 · US · Title 12

(a) (1) A Farm Credit bank must not use the ineligible investment to satisfy its liquidity requirement(s) under § 615.5134; (2) The institution must include the ineligible investment in the portfolio limit calculation defined in § 615.5132 or § 615.5140(b)(4), as applicable; and (3) A Farm Credit bank must exclude the ineligible investment as collateral under § 615.5050. (b) (1) The institution must notify FCA within 15 calendar days after such determination; (2) A Farm Credit bank must not use the ineligible investment to satisfy its liquidity requirement(s) under § 615.5134; (3) The institution must include the ineligible investment in the portfolio limit calculation defined in § 615.5132 or § 615.5140(b)(4), as applicable; (4) A Farm Credit bank may continue to include the investment as collateral under § 615.5050 at the lower of cost or market value; and (5) The institution must develop a plan to reduce the investment's risk to the institution. (c)

official document · source cfr-2024 · id 12:§ 615.5143