National Rural Utilities Cooperative Finance Corporation
Encyclopedia
The National Rural Utilities Cooperative Finance Corporation (CFC) is a privately owned, non-governmental organization
Non-governmental organization
A non-governmental organization is a legally constituted organization created by natural or legal persons that operates independently from any government. The term originated from the United Nations , and is normally used to refer to organizations that do not form part of the government and are...

 that provides financial products to American electric cooperatives
Utility cooperative
A utility cooperative is a type of cooperative that is tasked with the delivery of a public utility such as electricity, water or telecommunications to its members...

. NRUCFC was established as a source of private financing for rural electric cooperatives to supplement the loan programs of the U.S. Department of Agriculture’s
United States Department of Agriculture
The United States Department of Agriculture is the United States federal executive department responsible for developing and executing U.S. federal government policy on farming, agriculture, and food...

 (USDA) Rural Utilities Service
Rural Utilities Service
is an agency of the United States Department of Agriculture , one of the federal executive departments of the United States government charged with providing public utilities to rural areas in the United States via public-private partnerships...

 (RUS).

While CFC is not a government-sponsored enterprise (GSE), it (along with its telephone affiliate, RTFC), has forged an effective public-private partnership with RUS. This partnership enables NRUCFC's utility borrowers to access an array of financing options including those provided by the federal government.

CFC's consolidated membership was 1,522 as of May 31, 2009. Member organizations in 49 states, the District of Columbia and two U.S. territories included 897 electric utility systems, 498 telecommunications organizations, 66 statewide and regional service organizations and 61 associates. Of the 897 electric utility systems, 829 are distribution systems and 68 are generation-and-transmission (G&T or "power supply") systems.

Rural electric systems serve 12 percent of all consumers of electricity in the United States and its territories, account for approximately 10 percent of total sales of electricity and own about 5 percent of electric generation capacity.

At the end of FY2009 (May 31, 2009), CFC's total gross loans and guarantees outstanding were $21.5 billion, and its owners had invested $4.3 billion in CFC securities. About 65 percent of CFC’s loan portfolio was with distribution cooperatives, 24 percent with generation and transmission (G&T) cooperatives and 8 percent in the telecommunications sector.

Organizational structure

Overall policy for CFC is set by a 23-member Board of Directors, representing 10 geographic districts and the National Rural Electric Cooperative Association
National Rural Electric Cooperative Association
The National Rural Electric Cooperative Association is the organization that represents over 900 electric cooperatives in the United States. Independent electric utilities are not-for-profit and are owned by their members...

 (NRECA), the network's national trade association, and one At-Large member who serves as the Audit Committee Financial Expert. CFC's Board is democratically elected and consists of both cooperative utility directors and managers. CFC operates from its corporate headquarters in Herndon, Virginia, with a staff of 232 employees, including 16 regional representatives located throughout the country.

Stock Symbols

Cooperative Finance Corporation (NRUCFC) is traded on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...

. The company’s symbols
Companies listed on the New York Stock Exchange (N)
-N:...

are NRU, NRC and NRN.

Affiliate Organizations

CFC manages and funds the Rural Telephone Finance Cooperative (RTFC), an organization that provides financing to the rural telecommunications industry. CFC also manages and funds the National Cooperative Services Corporation (NCSC), an organization that provides electric cooperatives with specialized financing services that supplement the financial services of CFC.

External links

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