Federal Register #2026-17440

FCA Final Rule: Removal of TDRs from Loan Performance Categories

This notice from the Farm Credit Administration (FCA) announces a final rule amending loan performance categories and financial reporting regulations. - Regulatory update to 12 CFR Part 621, removing "Formally restructured loans (TDR)" from high-risk loan categories - Change reflects updated generally accepted accounting principles (GAAP), which no longer recognize TDRs - No products, services, OEMs, or vendors are involved - Amendment includes minor technical and organizational revisions for consistency - Notice is strictly regulatory and does not involve procurement activity

Description

The Farm Credit Administration (FCA) amends its regulatory high-risk loan performance categories by removing "Formally restructured loans (TDR)," also known as troubled debt restructurings. This change reflects updates in generally accepted accounting principles (GAAP) that eliminated the accounting guidance for TDRs. The amendment aligns FCA regulations with current accounting standards and includes minor technical and organizational revisions for internal consistency. The final rule confirms the effective date as August 24, 2026.

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