[Federal Register Volume 60, Number 26 (Wednesday, February 8, 1995)]
[Proposed Rules]
[Pages 7467-7468]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3117]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 35
[Docket No. 95-01]
RIN 1557-AB44
Agricultural Loan Loss Amortization
AGENCY: Office of the Comptroller of the Currency, Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Office of the Comptroller of the Currency (OCC) proposes
to remove its rule governing agricultural loan loss amortization,
effective January 1, 1999. This proposal is another component of the
OCC's Regulation Review Program, which is intended to update and
streamline OCC regulations and to reduce unnecessary regulatory costs
and other burdens. This action is needed to eliminate the rule when it
becomes obsolete.
DATES: Comments must be received by April 10, 1995.
ADDRESSES: Comments should be directed to: Communications Division,
Office of the Comptroller of the Currency, 250 E Street, SW,
Washington, DC 20219, Attention: Docket No. 95-01. Comments will be
available for public inspection and photocopying at the same location.
FOR FURTHER INFORMATION CONTACT: Andrew T. Gutierrez, Attorney,
Legislative and Regulatory Activities Division, (202) 874-5090.
SUPPLEMENTARY INFORMATION:
Background
The OCC proposes to remove 12 CFR part 35 as a component of its
Regulation Review Program. The goal of the Regulation Review Program is
to review all of the OCC's rules to revise, streamline, and simplify
them, and to eliminate provisions that do not contribute significantly
to maintaining the safety and soundness of national banks or to
accomplishing the OCC's other statutory responsibilities.
Title VIII of the Competitive Equality Banking Act of 1987, Pub. L.
100-86, 101 Stat. 635 (1987), added 12 U.S.C. 1823(j) in an attempt to
alleviate some of the financial pressures then facing agricultural
banks. In particular, 12 U.S.C. 1823(j) permits an agricultural bank to
amortize over a period not to exceed seven years: (1) Any loss on a
qualified agricultural loan that the bank would otherwise be required
to show on its annual financial statement for any year between December
31, 1983, and January 1, 1992; and (2) any loss resulting from the
reappraisal of property that the bank owned or acquired between January
1, 1983, and January 1, 1992, in connection with a qualified
agricultural loan. The OCC implemented this statutory provision by
promulgating 12 CFR part 35 with a temporary rule published on November
2, 1987 (52 FR 41959), and a final rule published on July 28, 1988 (53
FR 28373).
Because the statute requires that a loss occur on or before
December 31, 1991, to qualify, and that the amortization period may not
exceed seven years, the program becomes obsolete on January 1, 1999.
Reflecting this fact, the OCC's rule requires that loans under the
program [[Page 7468]] must be fully amortized by December 31, 1998. 12
CFR 35.3(b).
The OCC proposes to remove 12 CFR part 35, effective January 1,
1999, obviating the need for regulatory action in the future. Prior to
that date, an annotation to part 35 in title 12 of the Code of Federal
Regulations would indicate the effective date for removal of the part.
Regulatory Flexibility Act
It is hereby certified that this regulation will not have a
significant economic impact on a substantial number of small entities.
Accordingly, a regulatory flexibility analysis is not required. This
regulation has no material impact on national banks, regardless of
size.
Executive Order 12866
The OCC has determined that this proposal is not a significant
regulatory action under Executive Order 12866.
Paperwork Reduction Act
The collection of information contained in 12 CFR 35.7 has been
approved by the Office of Management and Budget (OMB) under OMB Control
Number 1557-0186. This proposal would remove as unnecessary, for the
reasons set forth in the preamble, that collection of information
effective January 1, 1999. Comments on the OCC's proposed elimination
of this collection of information should be sent to the Office of
Management and Budget, Paperwork Reduction Project (1557-0186),
Washington, DC 20503, with a copy to the OCC's Legislative and
Regulatory Activities Division (Attn: 1557-0186) at the OCC address
previously specified.
List of Subjects in 12 CFR Part 35
Accounting, Agriculture, National banks, Reporting and
recordkeeping requirements.
Authority and Issuance
For the reasons set out in the preamble, and under the authority of
12 U.S.C. 93a and 1823(j), chapter I of title 12 of the Code of Federal
Regulations is proposed to be amended as follows:
PART 35--[REMOVED]
1. Part 35 is removed effective January 1, 1999.
Dated: February 3, 1995.
Eugene A. Ludwig,
Comptroller of the Currency.
[FR Doc. 95-3117 Filed 2-7-95; 8:45 am]
BILLING CODE 4810-33-P