Eligibility of Foreign Nationals to be a Borrower under the FCA -

Since 1976, FCA regulations have allowed certain foreign nationals to be a borrower. These foreign nationals generally fall into two classes: Lawful Permanent Residents and Temporary Visa Holders. The Farm Credit Administration has noted in rulemaking that the Administration “rejects arguments that loans to foreign nationals are inherently unsafe and unsound.” However, the agency does acknowledge that such loans “may expose System banks and associations to different risks,” lenders “should have the capability to identify and manage” those risks. The following discussion is intended to help the association manage these risks.

Definition of a Person -

The regulations under the Farm Credit Act, 12 CFR Part 613, provide a definition of a person eligible as a potential lendee under the FCA. In pertinent part the definition of 12 CFR 613.3000(a)(3) provides...