ICBA - Publications - FCA Issues Final Notice on Loan Syndications

FCA Issues Final Notice on Loan Syndications

WWR Article
February 27, 2004


The Farm Credit Administration has published a decision in the Federal Register stating the agency has decided that loan syndications will not be treated the same as loan participations, as had been sought by some FCS institutions and the System's lobbying arm, the Farm Credit Council. ICBA had objected to FCA's proposed rule, noting that participations are considered to be different than syndications by financial regulators, that the ruling would have allowed FCS to waive borrower rights and territorial consent requirements and would have been a back-door approach to adopting nationwide lending charters for large FCS lenders. We also argued the FCA lacked legal authority for the proposed change.