problems, and formulating or between the credit and analyzing alternatives strategies for business consulting achieving goals. Institution functions. personnel may not be involved in making management decisions. ACB (Title III), BC, Cooperative Providing consulting services to Institutions must have SC Business cooperative or other eligible procedures in place to Consulting recipients to assist management and eliminate or, where directors in making business appropriate, effectively decisions. May include educational manage conflicts of interest seminars, development of computer between the credit and services, business analysis, business consulting feasibility studies, and activity functions. coordination (e.g., coordination of activities on mergers or formation of joint ventures). Institution personnel may not be involved in making management decisions. ACB (Title III), BC Foreign Currency Providing foreign currency exchange Subject to the criteria under Exchange services necessary to individual 12 CFR 614.4900. transactions that may be financed under Title III, section 3.7 (b) of the Farm Credit Act of 1971, as amended. ACB (Title III), BC Financial Risk Providing risk management products (1) Interest rate swaps Management for that enable customers to hedge should be included with the Customers interest rate risk inherent in their borrower's total debt when balance sheets. Limited to the calculating lending limits following derivative products: under 12 CFR part 614, subpart J. For swaps where the bank keeps an Interest rate swaps, caps, offsetting position, it must collars and floors; include the credit risk of the swaps with the borrower's Forward rate agreements; total debt when calculating and lending limits. Exchange-traded and counter interest rate options on eligible interest rate futures contracts ACB (Title III), BC Financial Risk (Products may be offered as part of Credit limits for each Management for loan packages or as stand-alone counter-party should be Customers hedging tools.) determined by reviewing the potential magnitude of (Cont’d) adverse payment increases over the life of the swap. (2) Financial risk programs are subject to annual audits by a Certified Public Accountant.
problems, and formulating or analyzing alternatives strategies for achieving goals. Institution personnel may not be involved in making management decisions. between the credit and business consulting functions. ACB (Title III), BC, SC Cooperative Business Consulting Providing consulting services to cooperative or other eligible recipients to assist management and directors in making business decisions. May include educational seminars, development of computer services, business analysis, feasibility studies, and activity coordination (e.g., coordination of activities on mergers or formation of joint ventures). Institution personnel may not be involved in making management decisions. Institutions must have procedures in place to eliminate or, where appropriate, effectively manage conflicts of interest between the credit and business consulting functions. ACB (Title III), BC Foreign Currency Exchange Providing foreign currency exchange services necessary to individual transactions that may be financed under Title III, section 3.7 (b) of the Farm Credit Act of 1971, as amended. Subject to the criteria under 12 CFR 614.4900. ACB (Title III), BC Financial Risk Management for Customers Providing risk management products that enable customers to hedge interest rate risk inherent in their balance sheets. Limited to the following derivative products: Interest rate swaps, caps, collars and floors; Forward rate agreements; and Exchange-traded and counter interest rate options on eligible interest rate futures contracts (1) Interest rate swaps should be included with the borrower's total debt when calculating lending limits under 12 CFR part 614, subpart J. For swaps where the bank keeps an offsetting position, it must include the credit risk of the swaps with the borrower's total debt when calculating lending limits. ACB (Title III), BC Financial Risk Management for Customers (Cont’d) (Products may be offered as part of loan packages or as stand-alone hedging tools.) Credit limits for each counter-party should be determined by reviewing the potential magnitude of adverse payment increases over the life of the swap. (2) Financial risk programs are subject to annual audits by a Certified Public Accountant.