Investments In Associated Organizations

12 Months Ended

Dec. 31, 2012

Investments In Associated Organizations [Abstract]

(7) Investments in Associated Organizations

Investments in associated organizations include the following at December 31:


		2012		2011
National Rural Utilities Cooperative Finance Corporation	$	6,095,980	$	6,095,980
CoBank, ACB		4,392,948		4,974,755
NRUCFC capital term certificates / Other		63,755		63,761
Total Investments in Associated Organizations	$	10,552,683	$	11,134,496

The Farm Credit Administration, CoBank's federal regulators, requires minimum capital adequacy standards for all Farm Credit System institutions. Loan agreements and financing arrangements with CoBank and NRUCFC require, as a condition of the extension of credit, that an equity ownership position be established by all borrowers.

- Definition

The entire disclosure for investments accounted for under the cost-method. The carrying amount of such investments may be adjusted, for example, distributions in excess of cost (return of capital) or for other-than-temporary impairments. The cost method and lower-of-cost or market, an adaptation of the cost method, is generally followed for most investments in noncontrolled corporations, in some corporate joint ventures, and to a lesser extent in unconsolidated subsidiaries in which the entity does not have the ability to exercise significant influence.

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