B-205532 L/M, DEC 10, 1981, OFFICE OF GENERAL COUNSEL
Highlights
INC.: THIS IS IN RESPONSE TO YOUR LETTER OF NOVEMBER 9. REQUESTING OUR ASSISTANCE IN CONNECTION WITH VARIOUS DIFFICULTIES YOU HAVE ENCOUNTERED IN YOUR DEALINGS WITH THE PRODUCTION CREDIT ASSOCIATION (PCA) IN NEILLSVILLE. A "PRODUCTION CREDIT ASSOCIATION" IS A "FEDERALLY CHARTERED INSTRUMENTALITY OF THE UNITED STATES" THAT IS AUTHORIZED UNDER RULES AND REGULATIONS PRESCRIBED BY THE DISTRICT FEDERAL INTERMEDIATE CREDIT BANK. THE FMHA IS A FEDERAL AGENCY WITHIN THE DEPARTMENT OF AGRICULTURE THAT HAS BEEN DELEGATED AUTHORITY BY THE SECRETARY OF AGRICULTURE TO ADMINISTER A NUMBER OF GOVERNMENT LOAN PROGRAMS INCLUDING THE ECONOMIC EMERGENCY LOAN PROGRAM AUTHORIZED BY THE EMERGENCY AGRICULTURAL CREDIT ADJUSTMENT ACT OF 1978.
B-205532 L/M, DEC 10, 1981, OFFICE OF GENERAL COUNSEL
PRECIS-UNAVAILABLE
MR. RICHARD E. RAEBEL, PRESIDENT, RAL-CON FARMS, INC.:
THIS IS IN RESPONSE TO YOUR LETTER OF NOVEMBER 9, 1981, REQUESTING OUR ASSISTANCE IN CONNECTION WITH VARIOUS DIFFICULTIES YOU HAVE ENCOUNTERED IN YOUR DEALINGS WITH THE PRODUCTION CREDIT ASSOCIATION (PCA) IN NEILLSVILLE, WISCONSIN AND THE FARMERS HOME ADMINISTRATION (FMHA). AS PRESIDENT OF RAE -CON FARMS, INC. (RAE-CON), YOU EXPRESS YOUR CONCERN ABOUT CERTAIN ADVERSE CREDIT AND LOAN DECISIONS MADE BY PCA AND FMHA. THESE ADVERSE DECISIONS INCLUDED PCA'S INSISTENCE ON THE INCLUSION OF A LIMITING CLAUSE IN ITS LOAN AGREEMENT WITH RAE-CON AND ITS RELATED DECISION TO WITHDRAW A LINE OF CREDIT TO THE CORPORATION, AS WELL AS FMHA'S REJECTION OF RAE-CON'S APPLICATION FOR AN ECONOMIC EMERGENCY LOAN.
A "PRODUCTION CREDIT ASSOCIATION" IS A "FEDERALLY CHARTERED INSTRUMENTALITY OF THE UNITED STATES" THAT IS AUTHORIZED UNDER RULES AND REGULATIONS PRESCRIBED BY THE DISTRICT FEDERAL INTERMEDIATE CREDIT BANK, AND APPROVED BY THE FARM CREDIT ADMINISTRATION, TO MAKE AND GUARANTEE LOANS TO FARMERS. SEE 12 U.S.C. SECS. 2091 ET SEQ. (1976). THE FMHA IS A FEDERAL AGENCY WITHIN THE DEPARTMENT OF AGRICULTURE THAT HAS BEEN DELEGATED AUTHORITY BY THE SECRETARY OF AGRICULTURE TO ADMINISTER A NUMBER OF GOVERNMENT LOAN PROGRAMS INCLUDING THE ECONOMIC EMERGENCY LOAN PROGRAM AUTHORIZED BY THE EMERGENCY AGRICULTURAL CREDIT ADJUSTMENT ACT OF 1978, PUB.L. NO. 95-334, 92 STAT. 429, AUGUST 4, 1978.
A FEDERAL AGENCY OR INSTRUMENTALITY IS GENERALLY ACCORDED A WIDE DEGREE OF LATITUDE AND DISCRETION IN ADMINISTERING THE GOVERNMENT PROGRAMS THAT ARE UNDER ITS JURISDICTION. THIS IS ESPECIALLY TRUE WITH RESPECT TO DECISIONS INVOLVING SPECIFIC LOANS AND LOAN APPLICATIONS. IT IS CLEARLY NOT THE FUNCTION OF OUR OFFICE TO REVIEW OR PASS ON THE MANNER IN WHICH A FEDERAL AGENCY OR INSTRUMENTALITY EXERCISES ITS DISCRETION IN AN INDIVIDUAL CASE EITHER WITH RESPECT TO THE HANDLING AND SERVICING OF A LOAN OR IN DECIDING WHETHER OR NOT A LOAN APPLICATION SHOULD BE APPROVED.
ACCORDINGLY, WE REGRET THAT WE ARE UNABLE TO BE OF ASSISTANCE TO YOU.