Cooperative Finance Corp. Fights for Authorization to Issue Letters of Credit

The National Rural Utilities Cooperative Finance Corp. (CFC) continues to seek an exemption under the Federal Communications Commission’s Rural Broadband Experiment allowing it to issue letters of credit to its own members and those of an affiliate, Rural Telephone Finance Cooperative.  However, because CFC is not a depository institution, it cannot receive the required FDIC insurance.  Member cooperatives could find it extremely difficult or more expensive to get letters of credit from financial institutions with which they do not already have an existing relationship.

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