Regulatory Capital Rules: Tier 1/Tier 2 Framework

---
identifier: "/us/fr/2021-26173"
source: "fr"
legal_status: "authoritative_unofficial"
title: "Regulatory Capital Rules: Tier 1/Tier 2 Framework"
title_number: 0
title_name: "Federal Register"
section_number: "2021-26173"
section_name: "Regulatory Capital Rules: Tier 1/Tier 2 Framework"
positive_law: false
currency: "2021-12-02"
last_updated: "2021-12-02"
format_version: "1.1.0"
generator: "[email protected]"
agency: "Farm Credit Administration"
document_number: "2021-26173"
document_type: "rule"
publication_date: "2021-12-02"
agencies:
  - "Farm Credit Administration"
cfr_references:
  - "12 CFR Part 614"
  - "12 CFR Part 615"
  - "12 CFR Part 620"
  - "12 CFR Part 628"
rin: "3052-AD27"
fr_citation: "86 FR 68395"
fr_volume: 86
effective_date: "2021-10-01"
fr_action: "Notification of effective date."
---


#  Regulatory Capital Rules: Tier 1/Tier 2 Framework

**AGENCY:**

Farm Credit Administration.

**ACTION:**

Notification of effective date.

**SUMMARY:**

The Farm Credit Administration (FCA) issued a final rule to amend the regulatory capital requirements for Farm Credit System (System or FCS) institutions. The amendments clarified certain provisions in the Tier 1/Tier 2 Capital Framework and codified the guidance provided in an FCA bookletter.

**DATES:**

*Effective date:* The final rule amending 12 CFR parts 614, 615, 620 and 628 published on October 1, 2021 (86 FR 54347), is effective on January 1, 2022.

**FOR FURTHER INFORMATION CONTACT:**

*Technical information:* Jeremy R. Edelstein, *[email protected],* Associate Director or Clayton D. Milburn, *[email protected],* Senior Financial Analyst, Finance and Capital Markets Team, Office of Regulatory Policy, Farm Credit Administration, McLean, VA 22102-5090, (703) 883-4414, TTY (703) 883-4056 or *[email protected];* or *Legal information:* Rebecca S. Orlich, *[email protected],* Senior Counsel, or Jennifer A. Cohn, *[email protected],* Assistant General Counsel, Office of General Counsel, Farm Credit Administration, McLean, VA 22102-5090, (703) 883-4020, TTY (703) 883-4056.

**SUPPLEMENTARY INFORMATION:**

On October 1, 2021, FCA issued a final rule to amend the regulatory capital requirements for System institutions. The amendments clarified provisions in the Tier 1/Tier 2 Capital Framework, codified the guidance provided in FCA Bookletter BL-068, reduced administrative burden, and amended definitions pertaining to qualified financial contracts. In accordance with 12 U.S.C. 2252(c)(1), the final rule provided an effective date of the later to occur of January 1, 2022 or 30 days after the date of rule's 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 regulation is January 1, 2022.

Dated: November 29, 2021.

Ashley Waldron,

Secretary, Farm Credit Administration.