The Farm Credit Administration is encouraging Farm Credit System institutions to work with System borrowers who have been affected by Hurricane Harvey.
“System institutions have considerable flexibility under existing FCA regulations to provide disaster relief,” says Dallas P. Tonsager, FCA’s board chairman and CEO. FCA Board Policy Statement 71, which was adopted in 2011, discusses measures that System institutions can take to alleviate the stress of borrowers affected by natural disasters. For example, institutions may
- extend the terms of loan repayments,
- restructure borrowers’ debt obligations,
- ease some loan documentation or credit-extension terms for new loans to certain borrowers, and
- request FCA to grant relief from specific regulatory requirements.
“Measures such as these can help alleviate financial stress for borrowers who have lost crops and who must repair or replace damaged farm equipment and buildings,” says Tonsager.
In addition to affecting System borrowers, the storm has also affected several association branch offices, which have closed because of the flooding, lack of electrical power, and wind damage. These institutions have implemented their contingency plans and are working to restore their operations as soon as possible.
Source: Farm Credit Administration