Unincorporated Business Entities; Effective Date

AGENCY:

Farm Credit Administration.

ACTION:

Final rule; notice of effective date.

SUMMARY:

The Farm Credit Administration adopted a final rule to establish a regulatory framework for Farm Credit System institutions' use of unincorporated business entities organized under State law for certain business activities. In accordance with the law, the effective date of the final rule is 30 days from the date of publication in the Federal Register during which either or both Houses of Congress are in session.

DATES:

Under the authority of 12 U.S.C. 2252, the regulation amending 12 CFR parts 604, 611, 612, 619, 620, 621, 622, 623, and 630 published on May 28, 2013 (78 FR 31822) is effective July 22, 2013.

FOR FURTHER INFORMATION CONTACT:

Elna Luopa, Policy Analyst, Office of Regulatory Policy, Farm Credit Administration, McLean, VA 22102-5090, (703) 883-4414, TTY (703) 883-4056;

or

Wendy Laguarda, Assistant General Counsel, Office of General Counsel, Farm Credit Administration, McLean, Virginia 22102-5090, (703) 883-4020, TTY (703) 883-4056.

SUPPLEMENTARY INFORMATION:

The Farm Credit Administration adopted a final rule to establish a regulatory framework for Farm Credit System (System) institutions' use of unincorporated business entities (UBEs) organized under State law for certain business activities. A UBE includes limited partnerships (LPs), limited liability partnerships (LLPs), limited liability limited partnerships (LLLPs), limited liability companies (LLCs), and any other unincorporated business entities, such as unincorporated business trusts, organized under State law. The final rule does not apply to UBEs that one or more System institutions may establish as Rural Business Investment Companies (RBICs) pursuant to the institutions' authority under the provisions of title VI of the Farm Security and Rural Investment Act of 2002, as amended (FSRIA), and United States Department of Agriculture (USDA) regulations implementing FSRIA. This rule does apply, however, to System institutions that organize UBEs for the express purpose of investing in RBICs. In accordance with 12 U.S.C. 2252, the effective date of the final rule is 30 days from the date of publication in the Federal Register during which either or both Houses of Congress are in session. Based on the records of the sessions of Congress, the effective date of the regulations is July 22, 2013.

(12 U.S.C. 2252(a)(9) and (10))