Instrument allowing extension of rural debt.
ADAs are issued for an institution and a farm credit financial agent to extend the maturity of consolidated rural debts contracted by farmers, their associations, groups and cooperatives. The bonds’ maturities terms must be adjusted to ensure the same proportion of principal due at redemption on the respective dates of the extended operations.
Placement is done directly with the creditor of the extension operation, with no financial settlement. The bond’s original creditor can use it to meet obligations with respective rural lenders.