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 Funding Corporation |
The Funding Corporation is the fiscal agent for the System Banks. Headquartered
in the greater New York City area, the Funding Corporation's primary function
is to issue, market and handle Farm Credit Debt Securities on behalf of the System Banks.
The Funding Corporation utilizes selling
groups of investment banks and dealer banks. The selling groups distribute
the Farm Credit Debt Securities on a worldwide basis to all types of investors, including commercial banks, states, municipalities, pension and money-market funds, insurance companies, investment advisors, corporations, foreign banks and governments, and other investors. In addition, the Funding Corporation assists the System Banks with respect to a variety of asset/liability management and certain specialized funding activities.
The Funding Corporation has the responsibility for determining, subject to
Farm Credit Administration approval, the amounts,
maturities, rates of interest, terms and conditions of participation by the
System Banks in each issue of Farm Credit Debt Securities. The conditions of participation
by the System Banks in each issue of Farm Credit Debt Securities are prescribed in an agreement
between the Funding Corporation and the System Banks. The Funding Corporation
also provides the System Banks with certain consulting, accounting, and financial
reporting services, including the preparation of the Annual
and Quarterly Information Statements.
The Funding Corporation is the financial spokesperson for the System and is
responsible for providing financial disclosure and the release of public information
concerning the financial condition and performance of the System as a whole.
The Funding Corporation is governed by a statutorily prescribed board of directors
composed of nine voting members and one nonvoting member. Seven board members
are elected by the System Banks. These seven board members, after receiving
recommendations from and consulting with the Secretary of Treasury and the Chairman
of the Board of Governors of the Federal Reserve System, appoint two members
from outside the System. The president of the Funding Corporation is a nonvoting
member of the board.
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