[Federal Register Volume 64, Number 186 (Monday, September 27, 1999)]
[Proposed Rules]
[Pages 52148-52163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23415]
[[Page 52147]]
_______________________________________________________________________
Part III
Federal Housing Finance Board
_______________________________________________________________________
12 CFR Part 900, et al.
Reorganization of Federal Housing Finance Board Regulations; Federal
Home Loan Bank Financial Management and Mission Achievement; Proposed
Rules
Federal Register / Vol. 64, No. 186 / Monday, September 27, 1999 /
Proposed Rules
[[Page 52148]]
FEDERAL HOUSING FINANCE BOARD
12 CFR Chapter IX
[No. 99-39]
RIN 3069-AA87
Reorganization of Federal Housing Finance Board Regulations
AGENCY: Federal Housing Finance Board.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Housing Finance Board (Finance Board) is proposing
to reorganize and renumber its regulations, to delete obsolete
regulations and to amend the renumbered regulations to achieve greater
consistency in terminology and greater conformity with current
stylistic conventions of the Code of Federal Regulations. The
reorganization is being proposed in order to implement a more logical
and efficient presentation of the rules governing the Federal Home Loan
Banks (Banks) and the Federal Home Loan Bank System (Bank System), as
well as to prepare for the anticipated incorporation, in calendar year
2000, of new financial management and mission achievement regulations
for the Banks.
DATES: Comments on this proposed rule must be received in writing on or
before December 27, 1999.
ADDRESSES: Comments should be mailed to: Elaine L. Baker, Secretary to
the Board, Federal Housing Finance Board, 1777 F Street, NW Washington,
DC 20006. Comments will be available for public inspection at this
address.
FOR FURTHER INFORMATION CONTACT: Deborah F. Silberman, General Counsel,
(202) 408-2570; Sharon Like, Senior Attorney-Advisor, (202) 408-2930;
or Eric Raudenbush, Senior Attorney-Advisor, (202) 408-2932, Office of
General Counsel, Federal Housing Finance Board, 1777 F Street, NW
Washington, DC 20006.
SUPPLEMENTARY INFORMATION:
I. Overview of Proposal
The proposed rule would reorganize and renumber the Finance Board's
existing regulations, delete obsolete regulations, and amend the
renumbered regulations to achieve greater consistency in terminology
and greater conformity with current stylistic conventions of the Code
of Federal Regulations. The reorganized regulations would reflect a
more logical and efficient presentation of the rules governing the
Banks and Bank System, as well as prepare for the anticipated
incorporation, in calendar year 2000, of new financial management and
mission achievement (FMMA) regulations for the Banks. The proposed FMMA
rule (which appears as a separate rulemaking in this issue of the
Federal Register), if enacted, would make many substantive changes and
additions to the Finance Board's regulations. In order to minimize
confusion, the Finance Board has included only technical changes to its
regulations in this proposed rulemaking and has designated new parts
and sections that would be added by the FMMA rule as ``reserved'' in
this proposed rulemaking, in order to make clear where the new FMMA
provisions would be located. References to regulatory amendments in the
FMMA rule use the new part and section numbers that would exist if this
proposed reorganization rule becomes final.
II. Analysis of Proposal
This proposed rule would delete the existing subchapter headings
for the Finance Board's regulations and establish an entirely new set
of subchapter headings. Within this structure, existing parts and
sections would be re-ordered into logical subject-matter groupings
under the subchapter headings. Generally, existing parts would remain
intact and would simply be given a new part number, with each section
and paragraph retaining the same designation (e.g., Sec. 935.9(a) would
become Sec. 950.9(a); Sec. 933.11(b)(3)(i)(A) would become
Sec. 925.11(b)(3)(i)(A), etc.) In some cases, however, longer sections
covering more complex subject matter would be redesignated as parts in
order to allow the material to be presented more clearly without the
need for excessive sub-paragraph designations.
The following derivation table shows the origin of the material
that would be contained in each of the proposed newly designated parts
(or sections, as appropriate). ``FMMA'' is shown where a part or
section would contain material that is addressed in the proposed FMMA
rule:
----------------------------------------------------------------------------------------------------------------
New part or section and subject matter Existing part or section
----------------------------------------------------------------------------------------------------------------
SUBCHAPTER A--GENERAL DEFINITIONS
900 General definitions..................... Various.
SUBCHAPTER B--FEDERAL HOUSING FINANCE BOARD
ORGANIZATION AND OPERATIONS
905 Description of organization and Part 900.
functions.
906 Operations.............................. Part 902.
907 Procedures.............................. Part 903.
908 Freedom of Information Act regulation... Part 904.
909 Information regarding meetings of the Part 906.
Board of Directors of the Federal Housing
Finance Board.
910 Privacy Act procedures.................. Part 909.
911 Availability of unpublished information. Part 905.
SUBCHAPTER C--GOVERNANCE AND MANAGEMENT OF
THE FEDERAL HOME LOAN BANKS
915 Bank director eligibility, appointment Secs. 932.1-932.15.
and elections.
916 Selection and compensation of Bank Secs. 932.18-932.19.
officers and employees.
917 Duties and responsibilities of Bank FMMA, Secs. 934.7, 934.16, 934.17.
directors and senior management.
918 Bank director compensation and expenses. Secs. 932.16-932.17.
SUBCHAPTER D--FEDERAL HOME LOAN BANK
MEMBERSHIP
925 Members of the Banks.................... Part 933.
SUBCHAPTER E--FEDERAL HOME LOAN BANK RISK
MANAGEMENT
930 Risk management and capital standards... FMMA.
SUBCHAPTER F--FEDERAL HOME LOAN BANK MISSION
ACTIVITIES
940 Core mission activities requirements.... FMMA.
944 Community support requirements.......... Part 946.
SUBCHAPTER G--FEDERAL HOME LOAN BANK ON-
BALANCE SHEET ASSETS AND OFF-BALANCE SHEET
ITEMS
950 Advances................................ Part 935.
[[Page 52149]]
951 Affordable Housing Program.............. Part 960.
952 Community Investment Cash Advance Part 970.
Programs.
954 Member Mortgage Assets.................. FMMA
955 Investments............................. FMMA.
958 Off-balance sheet items................. FMMA.
959 Standby letters of credit............... Part 938.
SUBCHAPTER H--FEDERAL HOME LOAN BANK
LIABILITIES
965 Sources of funds........................ FMMA, Secs. 934.4-934.5.
966 Consolidated obligations................ Part 910.
SUBCHAPTER I--FEDERAL HOME LOAN BANK
MISCELLANEOUS OPERATIONS AND FUNCTIONS
975 Collection, settlement, and processing Part 943.
of payment instruments.
976 Bank requests for information........... Sec. 934.15.
977 Miscellaneous Bank authorities.......... Secs. 934.3, 934.6.
SUBCHAPTER J--NEW FEDERAL HOME LOAN BANK
ACTIVITIES
980 New business activities................. FMMA.
SUBCHAPTER K--OFFICE OF FINANCE
985 Office of Finance organization and Part 941.
functions.
986 Book-entry procedure for consolidated Part 912.
obligations.
987 Financial statements of the Banks....... Part 937.
SUBCHAPTER L--NON-BANK SYSTEM ENTITIES
995 Financing Corporation operations........ Part 950.
996 Authority for Bank assistance of the Part 955.
Resolution Funding Corporation.
----------------------------------------------------------------------------------------------------------------
As reflected in the following chart, certain obsolete sections
would be deleted:
----------------------------------------------------------------------------------------------------------------
Deleted Subject matter Reason for deletion
----------------------------------------------------------------------------------------------------------------
Part 931........................... Definitions.......................... Part 900 would now contain general
definitions.
Sec. 934.1........................ Investments.......................... FMMA would address (part 955).
Sec. 934.2........................ Loans under Foreign Assistance Act of FMMA would address (part 955).
1961.
Sec. 934.8........................ Surety bonds......................... Discretion devolved to Banks.
Sec. 934.9........................ Insurance............................ Discretion devolved to Banks.
Sec. 934.10....................... Safekeeping of accounts.............. Obsolete.
Sec. 934.11....................... Securities held in trust or as Discretion devolved to Banks.
collateral.
Sec. 934.12....................... Accounting........................... Discretion devolved to Banks.
Sec. 934.13....................... Gold and gold-related transactions... FMMA would address (part 955).
Sec. 934.14....................... OTS assessments...................... Unnecessary.
----------------------------------------------------------------------------------------------------------------
With the renumbering of the Finance Board's regulations, reflected
in the charts above, all cross-references to existing parts or sections
within the Finance Board's regulations would become obsolete. As such,
much of the amendatory instruction contained in the proposed rule
addresses the revision of the hundreds of cross-references in the
regulations to reflect accurately the new part and section numbers.
In addition to the above-described reorganization, the proposed
rule would establish a new part 900 to contain definitions of terms
that are used throughout the regulations and to establish consistent
usage for these terms. This proposed amendment is meant to promote
uniformity and consistency in the use of prevalent terminology
throughout the Finance Board's regulations. The terms included in
proposed part 900 are: Act (as the short form of Federal Home Loan Bank
Act); Bank (as the short form of Federal Home Loan Bank); consolidated
obligations; Finance Board (as the short form of Federal Housing
Finance Board); and member (of a Bank). In the existing regulations,
virtually every part contains a definition of at least one of these
terms, and many parts use alternate forms of these terms that can lead
to confusion (e.g., in some parts, the Federal Housing Finance Board is
referred to as the ``Board''; the Federal Home Loan Banks are referred
to as ``FHLBanks,'' etc.). The proposed rule would remove the
definitions of these terms, and their synonyms, from the individual
parts and would consolidate them into new part 900. It is anticipated
that more terms may eventually be consolidated into part 900 as
regulations are added, or as existing regulations undergo substantive
revision in the future. Other terms requiring definition that are not
used throughout the regulations would continue to be defined in the
definitional provisions of the parts in which they are used.
In order to conform to the current stylistic conventions used in
the Code of Federal Regulations, the proposed rule also would remove
all paragraph designations from alphabetical definition sections, where
feasible, in the existing regulations.
All remaining changes would merely correct typographical errors
that came to the attention of the Finance Board during its review of
the regulations.
As mentioned earlier, no substantive additions or revisions are
included in this proposed rule. Should any part or section of the
regulations require substantive amendment before this rule becomes
final, such changes would be made in separate rulemakings. This rule
would then be modified, in its final form, to reflect those substantive
changes.
The Finance Board welcomes comments on this proposed regulatory
reorganization.
[[Page 52150]]
III. Regulatory Flexibility Act
This proposal is a technical rule that reorganizes the Finance
Board's regulations without substantive change. The rule will not
impose any regulatory requirements on small entities. Thus, in
accordance with the provisions of the Regulatory Flexibility Act, 5
U.S.C. 601 et seq., the Finance Board hereby certifies that this
proposed rule, if promulgated as a final rule, will not have a
significant economic impact on a substantial number of small entities.
5 U.S.C. 605(b).
IV. Paperwork Reduction Act
The proposed rule does not contain any collections of information
pursuant to the Paperwork Reduction Act of 1995. See 44 U.S.C. 3501 et
seq. Consequently, the Finance Board has not submitted any information
to the Office of Management and Budget for review.
List of Subjects in 12 CFR Parts 900 Through 996
Credit, Federal home loan banks, Reporting and recordkeeping
requirements.
Accordingly, under the authority of section 2B(a) of the Federal
Home Loan Bank Act, 12 U.S.C. 1422b(a), chapter IX of title 12 of the
Code of Federal Regulations is proposed to be amended as follows:
1. The headings of subchapters A through F are revised to read as
set forth below.
2. Subchapters G through L are established as set forth below.
3. Parts 908, 914, 916, 918, 920 and 924 are removed from
subchapter A.
4. Part 910 is redesignated as part 966 and transferred from
subchapter A to subchapter H.
5. Part 912 is redesignated as part 986 and transferred from
subchapter A to subchapter K.
6. Parts 900, 902, 903, 904, 905, 906 and 909 are redesignated as
parts 905, 906, 907, 908, 911, 909 and 910, respectively, and
transferred from subchapter A to subchapter B.
7. Parts 931, 934, 939, 940, 942 and 944 are removed from
subchapter B.
8. Part 932 is redesignated as part 915 and transferred from
subchapter B to subchapter C.
9. Part 933 is redesignated as part 925 and transferred from
subchapter B to subchapter D.
10. Part 950 is redesignated as part 995 and transferred from
subchapter C to subchapter L.
11. Part 935 is redesignated as part 950 and transferred from
subchapter B to subchapter G.
12. Part 936 is redesignated as part 944 and transferred from
subchapter B to subchapter F.
13. Part 937 is redesignated as part 987 and transferred from
subchapter B to subchapter K.
14. Part 938 is redesignated as part 959 and transferred from
subchapter B to subchapter G.
15. Part 941 is redesignated as part 985 and transferred from
subchapter B to subchapter K.
16. Part 943 is redesignated as part 975 and transferred from
subchapter B to subchapter I.
17. Part 955 is redesignated as part 996 and transferred from
subchapter D to subchapter L.
18. Part 960 is redesignated as part 951 and transferred from
subchapter E to subchapter G.
19. Part 970 is redesignated as part 952 and transferred from
subchapter F to subchapter G.
20. The headings of newly designated parts 915, 966, 985, 986, 995
and 996 are revised to read as set forth below.
20a. The table of contents for chapter IX is revised to read as
follows:
CHAPTER IX--FEDERAL HOUSING FINANCE BOARD
SUBCHAPTER A--GENERAL DEFINITIONS
Part
900 General definitions
SUBCHAPTER B--FEDERAL HOUSING FINANCE BOARD ORGANIZATION AND OPERATIONS
905 Description of organization and functions
906 Operations
907 Procedures
908 Freedom of Information Act regulation
909 Information regarding meetings of the Board of Directors of the
Federal Housing Finance Board
910 Privacy Act procedures
911 Availability of unpublished information
SUBCHAPTER C--GOVERNANCE AND MANAGEMENT OF THE FEDERAL HOME LOAN BANKS
915 Bank director eligibility, appointment and elections
916 Selection and compensation of Bank officers and employees
917 Duties and responsibilities of Bank directors and senior
management [Reserved]
918 Bank director compensation and expenses
SUBCHAPTER D--FEDERAL HOME LOAN BANK MEMBERSHIP
925 Members of the Banks
SUBCHAPTER E--FEDERAL HOME LOAN BANK RISK MANAGEMENT
930 Risk management and capital standards [Reserved]
SUBCHAPTER F--FEDERAL HOME LOAN BANK MISSION ACTIVITIES
940 Core mission activities requirements [Reserved]
944 Community support requirements
SUBCHAPTER G--FEDERAL HOME LOAN BANK ON-BALANCE SHEET ASSETS AND OFF-
BALANCE SHEET ITEMS
950 Advances
951 Affordable Housing Program
952 Community Investment Cash Advance Programs
954 Member Mortgage Assets [Reserved]
955 Investments [Reserved]
958 Off-balance sheet items [Reserved]
959 Standby letters of credit
SUBCHAPTER H--FEDERAL HOME LOAN BANK LIABILITIES
965 Sources of funds [Reserved]
966 Consolidated obligations
SUBCHAPTER I--FEDERAL HOME LOAN BANK MISCELLANEOUS OPERATIONS AND
FUNCTIONS
975 Collection, settlement, and processing of payment instruments
976 Bank requests for information
977 Miscellaneous Bank authorities
SUBCHAPTER J--NEW FEDERAL HOME LOAN BANK ACTIVITIES
980 New business activities [Reserved]
SUBCHAPTER K--OFFICE OF FINANCE
985 Office of Finance organization and functions
986 Book-entry procedure for consolidated obligations
987 Financial statements of the Banks
SUBCHAPTER L--NON-BANK SYSTEM ENTITIES
995 Financing Corporation operations
996 Authority for Bank assistance of the Resolution Funding
Corporation
21. A new part 900 is added to subchapter A to read as follows:
PART 900--GENERAL DEFINITIONS
Authority: 12 U.S.C. 1422b(a).
Sec. 900.1 Definitions applying to all regulations.
As used in this chapter:
Act means the Federal Home Loan Bank Act, as amended (12 U.S.C.
1421 through 1449).
Bank means a Federal Home Loan Bank established under the authority
of the Act.
Board of Directors means the Board of Directors of the Federal
Housing Finance Board, unless otherwise indicated.
Consolidated obligations means bonds or notes issued on behalf of
the Banks under part 966 of this chapter.
[[Page 52151]]
Finance Board means the agency established by the Act as the
Federal Housing Finance Board.
Member means an institution that has been approved for membership
in a Bank and has purchased capital stock in the Bank in accordance
with Secs. 925.20 or 925.25 of this chapter.
PART 905--DESCRIPTION OF ORGANIZATION AND FUNCTIONS
22. The authority citation for newly designated part 905 continues
to read as follows:
Authority: 5 U.S.C. 552, 12 U.S.C. 1422b(a), 1423.
23. Amend newly designated Sec. 905.1 by removing the definitions
of the terms ``Bank'', ``Bank Act'' and ``Finance Board''.
24. Amend newly designated Sec. 905.2 by:
a. Removing from paragraph (a) the words ``Federal Home Loan Bank
System'' and adding, in their place, the words ``Bank System'';
b. Removing from paragraph (a) the words ``Federal Home Loan
Banks'' and adding, in their place, the word ``Banks''; and
c. Removing from paragraph (c) the words ``Bank Act'' and adding,
in their place, the word ``Act''.
25. Amend newly designated Sec. 905.4 by:
a. Removing from paragraph (a) the words ``Bank Act'' and adding,
in their place, the word ``Act''; and
b. Removing from paragraph (b) the words ``Federal Home Loan Bank
consolidated bonds or notes'' and adding, in their place, the words
``consolidated obligations''.
26. Amend newly designated Sec. 905.14(d) by removing the word
``System'' and adding, in its place, the words ``Bank System''.
27. Amend newly designated Sec. 905.30 by:
a. Removing the words ``Office of Finance Board of Directors'',
wherever they appear, and adding, in their place, the words ``Office of
Finance board of directors''; and
b. Removing the words ``Federal Home Loan Bank consolidated
debentures, bonds or notes'' and adding, in their place, the words
``consolidated obligations''.
28. Amend newly designated Sec. 905.51 by removing the reference to
``Sec. 900.3'' and adding, in its place, a reference to ``Sec. 905.3''.
29. Amend newly designated Sec. 905.52 by removing the reference to
``Sec. 900.3'' and adding, in its place, a reference to ``Sec. 905.3''.
PART 906--OPERATIONS
30. The authority citation for newly designated part 906 continues
to read as follows:
Authority: 12 U.S.C. 1422b and 1438(b).
31. Amend newly designated Sec. 906.1 by removing the definitions
of the terms ``Bank'' and ``Finance Board''.
32. Amend newly designated Sec. 906.3(c) by removing the words
``the Housing Finance Directorate of''.
PART 907--PROCEDURES
33. The authority citation for newly designated part 907 continues
to read as follows:
Authority: 12 U.S.C. 1422b(a)(1).
34. Amend newly designated Sec. 907.1 by:
a. Removing paragraph designations (a) through (u); and
b. Removing the definitions of the terms ``Bank'', ``Bank Act'',
``Finance Board'', ``Member'' and ``Office of Finance''.
35. Amend newly designated part 907 by removing the words ``Bank
Act'' and adding, in their place, the word ``Act'' in the following
places:
a. Section 907.1 (definitions of Approval, Case-by-Case
Determination, No-Action Letter and Regulatory Interpretation);
b. Section 907.2(a);
c. Section 907.3(a);
d. Section 907.4(a);
e. Section 907.5(a);
f. Section 907.6(c)(3), (c)(6) and (c)(8);
g. Section 907.8(a); and
h. Section 907.10(b)(3) and (b)(8).
36. In the table below, for each newly designated section indicated
in the left column, remove the cross-reference indicated in the middle
column and, in its place, add the cross-reference indicated in the
right column:
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
907.2(b)............................. Sec. 903.6.................. Sec. 907.6.
907.3(a)............................. Sec. 903.6.................. Sec. 907.6.
907.4(b)............................. Sec. 903.6.................. Sec. 907.6.
907.5(b)............................. Sec. 903.6.................. Sec. 907.6.
907.8(a)............................. Sec. 903.10................. Sec. 907.10.
907.8(b)............................. Sec. 903.11................. Sec. 907.11.
907.9(a)............................. Sec. 903.10................. Sec. 907.10.
907.9(c)............................. 12 CFR 960.12(d)............. 12 CFR 951.12(d).
907.9(d)............................. 12 CFR 960.12(d)............. 12 CFR 951.12(d).
907.9(d)............................. Sec. 903.11................. Sec. 907.11.
907.11(a)(2)......................... Sec. 903.10(b).............. Sec. 907.10(b).
907.11(a)(4)......................... Sec. 903.10(d).............. Sec. 907.10(d).
907.11(a)(5)......................... Sec. 903.13(b).............. Sec. 907.13(b).
907.12(c)............................ Sec. 903.10................. Sec. 907.10.
907.12(g) (introductory text)........ Sec. 903.10................. Sec. 907.10.
907.12(g)(3)......................... Sec. 903.13(a)(1)........... Sec. 907.13(a)(1).
907.12(g)(3)......................... Sec. 903.13(a)(2)........... Sec. 907.13(a)(2).
907.12(g)(4)(ii)..................... Sec. 903.10(d).............. Sec. 907.10(d).
907.12(g)(4)(ii)..................... Sec. 903.11(a)(4)........... Sec. 907.11(a)(4).
907.13(a)(2)......................... Sec. 903.14................. Sec. 907.14.
907.13(c)............................ Sec. 903.10................. dSec. 907.10.
907.13(c)............................ Sec. 903.12(d).............. Sec. 907.12(d).
907.14(d)............................ 12 CFR part 906.............. 12 CFR part 909.
907.14(e)............................ 12 CFR 906.6................. 12 CFR 909.6.
907.14(g)............................ 12 CFR 906.5(c).............. 12 CFR 909.5(c).
907.15(c)............................ Sec. 903.12(g).............. Sec. 907.12(g).
----------------------------------------------------------------------------------------------------------------
[[Page 52152]]
PART 908--FREEDOM OF INFORMATION ACT REGULATION
37. The authority citation for newly designated part 908 continues
to read as follows:
Authority: 5 U.S.C. 552; 52 FR 10012 (Mar. 27, 1987).
38. Amend newly designated Sec. 908.1 by:
a. Removing paragraph designations (a) through (l); and
b. Removing the definition of the term ``Finance Board''.
39. Amend newly designated Sec. 908.2(a)(2) by removing the words
``Federal Home Loan Bank Act'' and adding, in their place, the word
``Act''.
40. Amend newly designated part 908 by removing the words ``Federal
Home Loan Bank'' and adding, in their place, the word ``Bank'' in the
following places:
a. Section 908.5(a)(7)(iv) and (a)(8); and
b. Section 908.6 (introductory text).
41. In the table below, for each newly designated section indicated
in the left column, remove the cross-reference indicated in the middle
column and, in its place, add the cross-reference indicated in the
right column:
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
908.2(a)(3).......................... 12 CFR part 909.............. 12 CFR part 910.
908.2(b)(1).......................... Secs. 904.5 through 904.7... Secs. 908.5 through 908.7.
908.2(b)(3).......................... Sec. 904.9.................. Sec. 908.9.
908.4(a)............................. Sec. 904.9(f)............... Sec. 908.9(f).
908.4(a)............................. Sec. 904.3(a)............... Sec. 908.3(a).
908.4(b)............................. Sec. 904.8.................. Sec. 908.8.
908.4(d)(1)(ii)...................... Sec. 904.9(a)(4)(iv)........ Sec. 908.9(a)(4)(iv).
908.4(e)............................. Sec. 904.9.................. Sec. 908.9.
908.8(a)(1).......................... Sec. 904.4.................. Sec. 908.4.
908.8(a)(2).......................... Sec. 904.9(f)............... Sec. 908.9(f).
908.9(b)............................. Sec. 904.5.................. Sec. 908.5.
908.9(c)............................. Sec. 904.4.................. Sec. 908.4.
908.9(f)(4)(ii)...................... Sec. 904.4.................. Sec. 908.4.
----------------------------------------------------------------------------------------------------------------
PART 909--INFORMATION REGARDING MEETINGS OF THE BOARD OF DIRECTORS
OF THE FEDERAL HOUSING FINANCE BOARD
42. The authority citation for newly designated part 909 continues
to read as follows:
Authority: 5 U.S.C. 552b.
43. Amend newly designated Sec. 909.1(a) by removing the words
``Federal Housing Finance Board'' and adding, in their place, the words
``Finance Board''.
44. Amend newly designated Sec. 909.2 by:
a. Removing the words ``Board of Director or Director'' and adding,
in their place, the words ``Board Director or Director''; and
b. Removing the definitions of the terms ``Board of Directors'',
``FHLBank'' and ``Finance Board''.
45. Amend newly designated Sec. 909.5(b)(1) by removing the words
``FHLBank consolidated bonds or notes'' and adding, in their place, the
words ``consolidated obligations''.
46. Amend newly designated part 909 by revising all references to
``FHLBank'' and ``FHLBanks'' to read ``Bank'' and ``Banks'',
respectively.
47. In the table below, for each newly designated section indicated
in the left column, remove the cross-reference indicated in the middle
column and, in its place, add the cross-reference indicated in the
right column:
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
909.3(a)............................. Sec. 906.4.................. Sec. 909.4.
909.5(a)(1).......................... Sec. 906.4.................. Sec. 909.4.
909.5(a)(5).......................... Sec. 906.4.................. Sec. 909.4.
909.5(a)(6)(ii)...................... Sec. 906.4.................. Sec. 909.4.
909.5(b)(1).......................... Sec. 906.4.................. Sec. 909.4.
909.5(c)(2).......................... Sec. 906.4.................. Sec. 909.4.
909.5(c)(3)(i)....................... Sec. 906.4(a)............... Sec. 909.4(a)
909.6(a)(1).......................... Sec. 906.4.................. Sec. 909.4.
909.6(a)(1).......................... Sec. 906.5.................. Sec. 909.5.
909.6(a)(2).......................... Sec. 906.5.................. Sec. 909.5.
909.6(a)(2).......................... Sec. 906.5(b)(4)............ Sec. 909.5(b)(4).
909.6(b)............................. Sec. 906.5.................. Sec. 909.5.
909.6(c)(1).......................... Sec. 906.5.................. Sec. 909.5.
----------------------------------------------------------------------------------------------------------------
PART 910--PRIVACY ACT PROCEDURES
48. The authority citation for newly designated part 910 continues
to read as follows:
Authority: 5 U.S.C. 552a.
49. Amend newly designated Sec. 910.2 by:
a. Removing paragraph designations (a) through (k);
b. In the definition of the word ``Amendment'', removing the words
``paragraph (g) of'';
c. In the definition of ``Designated system of records'', removing
the words ``paragraph (j) of''; and
d. Removing the definitions of the terms ``Board of Directors'' and
``Finance Board''.
50. In the table below, for each newly designated section indicated
in the left column, remove the cross-reference indicated in the middle
column and, in its place, add the cross-reference indicated in the
right column:
[[Page 52153]]
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
910.4(a)............................. Sec. 909.3(b)............... Sec. 910.3(b).
910.4(a)............................. Sec. 909.6.................. Sec. 910.6.
910.5(a)............................. Sec. 909.9.................. Sec. 910.9.
910.5(a)............................. Sec. 909.3.................. Sec. 910.3.
910.5(c)(4).......................... Sec. 909.6.................. Sec. 910.6.
910.9(a)............................. Sec. 909.3.................. Sec. 910.3.
910.9(a)............................. Sec. 909.4.................. Sec. 910.4.
910.9(a)............................. Sec. 909.5(a) and (c)(3) and Sec. 910.5(a) and (c)(3) and (4).
(4).
910.9(a)............................. Sec. 909.6.................. Sec. 910.6.
910.9(b)............................. Sec. 909.3.................. Sec. 910.3.
910.9(b)............................. Sec. 909.4.................. Sec. 910.4.
910.9(b)............................. Sec. 909.5(a) and (c)(3).... Sec. 910.5(a) and (c)(3).
910.9(b)............................. Sec. 909.6.................. Sec. 910.6.
----------------------------------------------------------------------------------------------------------------
PART 911--AVAILABILITY OF UNPUBLISHED INFORMATION
50a. The authority citation for newly designated part 911 continues
to read as follows:
Authority: 5 U.S.C. 301; 12 U.S.C. 1422b(a)(1).
50b. Amend newly designated Sec. 911.1 by:
a. Removing paragraph designations (a) through (d); and
b. Removing the definition of the term ``Finance Board''.
50c. Amend newly designated part 911 by removing the words
``Federal Home Loan Bank'' and adding, in their place, the word
``Bank'' in the following places:
a. Section 911.1 (defs. of Unpublished information (first sentence
only) and Supervised entity);
b. Section 911.3(a), (c)(1), (c)(3), (c)(4), (d)(heading),
(d)(introductory text), (d)(2);
c. Section 911.5(e)(heading), (e); and
d. Section 911.6(a).
50d. Amend newly designated Sec. 911.1 (def. of Unpublished
information) by removing the words ``Federal Home Loan Bank Act'' and
adding, in their place, the word ``Act''.
50e. In the table below, for each newly designated section
indicated in the left column, remove the cross-reference indicated in
the middle column and, in its place, add the cross-reference indicated
in the right column:
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
911.1 (def. of Unpublished 12 CFR parts 904 and 909..... 12 CFR parts 908 and 910.
information).
911.9(a)............................. 12 CFR 904.9................. 12 CFR 908.9.
----------------------------------------------------------------------------------------------------------------
PART 915--BANK DIRECTOR ELIGIBILITY, APPOINTMENT AND ELECTIONS
51. The authority citation for newly designated part 915 continues
to read as follows:
Authority: 12 U.S.C. 1422a(a)(3), 1422b(a), 1426, 1427, and
1432; 42 U.S.C. 8101 et seq.
52. Amend newly designated part 915 by:
a. Removing the subpart designations; and
b. Removing newly designated Secs. 915.16 through 915.19.
53. Amend newly designated Sec. 915.1 by removing the definitions
of the terms ``Act'', ``Bank or Banks'', ``Finance Board'' and
``Member''.
54. Amend newly designated Sec. 915.8(b), in the last sentence, by:
a. Adding the word ``Bank's'' before the words ``board of
directors''; and
b. Removing the comma after the word ``fill''.
55. Amend newly designated Sec. 915.11(b) by adding the word
``Bank's'' before the words ``board of directors'', wherever they
appear.
56. Amend newly designated Sec. 915.11(f)(1) by removing the word
``other''.
57. In the table below, for each newly designated section indicated
in the left column, remove the cross-reference indicated in the middle
column and, in its place, add the cross-reference indicated in the
right column:
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
915.3(b)(3).......................... Sec. 932.15................. Sec. 915.15.
915.4(a)............................. Sec. 933.22(b)(1)........... Sec. 925.22(b)(1).
915.4(b)(1).......................... Sec. 935.15(a).............. Sec. 950.15(a).
915.4(b)(1).......................... Sec. 933.20(a).............. Sec. 925.20(a).
915.4(b)(2).......................... Sec. 933.20(b)(2)........... Sec. 925.20(b)(2).
915.5(b)............................. Sec. 932.4(b)............... Sec. 915.4(b).
915.6(a)(3).......................... Sec. 932.5(b)............... Sec. 915.5(b).
915.7(a)............................. Sec. 932.8(a)............... Sec. 915.8(a).
915.8(a)............................. Sec. 932.7(a)............... Sec. 915.7(a).
915.8(b)............................. Sec. 932.14(a).............. Sec. 915.14(a).
915.8(c)............................. Sec. 932.5.................. Sec. 915.5.
915.12(a)............................ 12 CFR 900.51................ 12 CFR 905.51.
915.13(a)............................ Sec. 932.12................. Sec. 915.12.
915.13(b)............................ Sec. 932.12................. Sec. 915.12.
915.14(a)(2)......................... Sec. 932.7(a)............... Sec. 915.7(a).
915.14(a)(2)......................... Sec. 932.6(c)............... Sec. 915.6(c).
----------------------------------------------------------------------------------------------------------------
[[Page 52154]]
58. New parts 916, 917 (reserved) and 918 are added to subchapter C
to read as follows:
PART 916--SELECTION AND COMPENSATION OF BANK OFFICERS AND EMPLOYEES
Sec.
916.1 Definitions.
916.2 Selection of Bank officers and employees.
916.3 Base salaries of Bank employees.
916.4 Incentive payments for Bank employees.
916.5 Severance plans.
916.6 General limits on payments.
916.7 Determination of employee status.
Authority: 12 U.S.C. 1422b(a), 1432(a).
Sec. 916.1 Definitions.
As used in this part:
Incentive payment means a direct or indirect transfer of funds by a
Bank to a Bank employee, in addition to base salary, based on the
employee's on-the-job performance.
Nondiscriminatory means that the plan, contract or arrangement in
question applies to all employees of a Bank who meet reasonable and
customary eligibility requirements applicable to all employees, such as
minimum length of service requirements. A nondiscriminatory plan,
contract, or arrangement may provide different benefits based only on
objective criteria such as base salary, total compensation, length of
service, job grade or classification, which are applied on a
proportionate basis.
Payment. (1) The term payment means:
(i) Any direct or indirect transfer of any funds or any asset;
(ii) Any forgiveness of any debt or other obligation; and
(iii) Any segregation of any funds or assets, the establishment or
funding of any trust or the purchase of, or arrangement for, any letter
of credit or other instrument for the purpose of making, or pursuant to
any agreement to make, any payment on or after the date on which such
funds or assets are segregated, or at the time of or after such trust
is established or letter of credit or other instrument is made
available, without regard to whether the obligation to make such
payment is contingent on:
(A) The determination, after such date, of the liability for the
payment of such amount; or
(B) The liquidation, after such date, of the amount of such
payment.
(2) The term payment does not mean:
(i) Reimbursement of an employee by the Bank for necessary and
customary expenses incurred by the employee in the scope of his or her
employment while carrying out the business of the Bank; or
(ii) Benefits.
Severance pay plan means a severance pay plan or arrangement as
that term is defined in the Employee Retirement Income Security Act of
1974 (as amended) (29 U.S.C. 1002(1)) (ERISA) and regulations
thereunder which is nondiscriminatory and which provides for payment of
severance benefits to all eligible employees upon involuntary
termination, provided that no employee shall receive any such payment
which exceeds the base compensation paid to such employee during the
twelve (12) months immediately preceding termination of employment.
Sec. 916.2 Selection of Bank officers and employees.
(a) Bank Presidents. The board of directors of each Bank may
appoint a President, who shall be the chief executive officer of the
Bank, subject to the following limitations:
(1) No appointment of a new Bank President shall be effective until
approved by the Finance Board;
(2) A President shall serve at the pleasure of the Bank; and
(3) A President may be suspended or removed by the Finance Board
for cause, which shall be communicated in writing to the President and
the Bank.
(b) Bank employees other than the President. Each Bank may appoint
or elect officers other than the President and may hire other employees
of the Bank without prior Finance Board approval.
(c) Prohibition on employment contracts. A Bank shall not enter
into an employment contract with an employee.
Sec. 916.3 Base salaries of Bank employees.
(a) Bank President. (1) The Finance Board annually will determine
and publish by November 30 caps on the base salary paid to the Bank
President for the subsequent calendar year for each of the 12 Banks.
(2) The base salary cap for each Bank shall be based on the average
base salary of a chief executive officer of a subsidiary financial
institution in the Bank's primary metropolitan statistical area with an
asset size comparable to that of the Bank, as of June of the prior
year, reduced by five percent and rounded to the nearest $5,000.
(3) Each Bank shall establish, on an annual basis, a reasonable
base salary for its President, not to exceed 100 percent of the
applicable base salary cap published by the Finance Board, except that
for a Bank President whose approved base salary for the calendar year
1997 exceeds the cap published by the Finance Board for 1997, the Bank
shall establish, on an annual basis, a reasonable base salary not
exceeding the greater of the Bank President's approved base salary for
the calendar year 1997 or the base salary cap published by the Finance
Board for the year.
(4) By January 31 of each year, a Bank must report to the Finance
Board the approved base salary of its President for that year.
(b) Other Bank employees. Each Bank shall establish base salaries
for employees other than the President that are reasonable and
comparable with the base salaries of employees of the other Banks and
other similar businesses (including financial institutions) with
similar duties and responsibilities.
(c) Documentation. Each Bank shall maintain documentation
supporting the reasonableness and comparability of their employees'
base salaries.
Sec. 916.4 Incentive payments for Bank employees.
(a) In general. A Bank may establish an incentive payment program
or programs for its employees.
(b) Bank President. (1) The maximum incentive payment to a Bank
President may not exceed the difference between that President's base
annual salary approved by the Bank and 125 percent of the annual base
salary cap, as published by the Finance Board.
(2) At least 50 percent of the Bank President's incentive payment
shall be based on the extent to which the Bank meets reasonable
numerical performance targets established by the Bank's board of
directors related to the Bank's achievement of its housing finance
mission, which shall include substantial consideration of innovative
products directed at unmet credit needs, Community Investment Cash
Advances (including Community Investment Program advances) as defined
in Sec. 950.1 of this chapter, non-advance credit support and risk
management products for members, as well as advances, including long-
term advances. The remaining portion of the Bank President's incentive
payment shall be based on the extent to which the Bank meets reasonable
numerical performance targets established by the Bank's board of
directors related to achievement of goals established by the board of
directors, in its discretion.
(3) Any incentive payment made to a Bank President shall be based
solely upon the extent to which a Bank achieves the performance targets
established by the Bank's board of directors.
[[Page 52155]]
(4) By January 31 of each year, the board of directors of each Bank
that intends to make any incentive payment to its President for such
year shall adopt a resolution establishing the performance measures and
targets on which such incentive payment will be based.
(5) By March 1 of each year, the board of directors of each Bank
making any incentive payment to its President for the prior year shall
adopt and submit to the Finance Board a resolution showing the results
for the individual performance measures and the amount of the incentive
payment to the Bank President for the prior year.
(6) A Bank shall not make any incentive payment to its President if
the most recent examination of the Bank by the Finance Board identified
an unsafe or unsound practice or condition with regard to the Bank,
provided that if the finding of an unsafe or unsound practice or
condition subsequently is resolved in favor of the Bank by the Finance
Board, the Bank may pay its President the incentive payment that he or
she otherwise would have received.
(c) Incentive payments for other Bank employees. (1) Each Bank may
make incentive payments to employees other than the President, provided
that such incentive payments are reasonable and comparable with
incentive payments made to employees of the other Banks and other
similar businesses (including financial institutions) with similar
duties and responsibilities. Each Bank shall maintain documentation
supporting the reasonableness and comparability of its employees'
incentive payments.
(2) The sum of annual base salary and all incentive payments
received in a single calendar year by an employee other than the Bank
President shall not exceed 125 percent of the annual base salary cap
for the Bank President, as published by the Finance Board.
(3) An incentive payment for an employee other than the Bank
President shall be based on the extent to which the employee meets
objective performance targets related to performance criteria
established by the Bank's board of directors under the Bank's incentive
compensation program or programs.
(4) All Bank incentive compensation plans in effect on May 1, 1998,
shall be submitted to the Finance Board no later than June 1, 1998. Any
subsequent amendments to such plans shall not become effective until
submitted to the Finance Board.
Sec. 916.5 Severance plans.
A Bank may make payments in the nature of severance to its
President and to other Bank employees only pursuant to a severance pay
plan.
Sec. 916.6 General limits on payments.
(a) No Bank shall make any payment to a Bank employee, except as
provided in this part.
(b) The total amount of base salaries, incentive payments, and
benefits paid to Bank employees shall be within the limit set forth in
the Bank's approved budget. The board of directors of each Bank shall
review annually the compensation for its employees, including
appropriate documentation, prior to approving the Bank's annual budget.
Sec. 916.7 Determination of employee status.
A Bank shall not treat an employee as an independent contractor in
order to avoid complying with the requirements of this part.
PART 917--DUTIES AND RESPONSIBILITIES OF BANK DIRECTORS AND SENIOR
MANAGEMENT [RESERVED]
PART 918--BANK DIRECTOR COMPENSATION AND EXPENSES
Sec.
918.1 Definitions.
918.2 Annual compensation.
918.3 Compensation policy requirements.
918.4 Expenses.
918.5 Disclosure.
918.6 Site of board of directors and committee meetings.
Authority: 12 U.S.C. 1422b(a), 1427.
Sec. 918.1 Definitions.
As used in this part:
Average compensation per director (ACPD) means the sum of the
maximum compensation for all directors serving on a Bank's board of
directors, divided by the total number of directors designated by the
Finance Board to serve on the Bank's board for that year.
Compensation means any payment of money or provision of any other
thing of value (or the accrual of a right to receive money or a thing
of value in a subsequent year) in consideration of a director's
performance of official duties for the Bank, including, without
limitation, retainer fees, daily meeting fees, incentive payments and
fringe benefits.
Maximum compensation means the maximum total compensation that
would be paid to a director in a given year under the Bank's policy on
director compensation if that director attended all meetings and
fulfilled all duties assigned to or otherwise expected of him or her
for that year.
Sec. 918.2 Annual compensation.
For 1997 and each subsequent year, each Bank's board of directors
shall adopt annually by resolution a written policy to provide for the
payment to Bank directors of reasonable compensation for the
performance of their duties as members of the Bank's board, subject to
the requirements set forth in Sec. 918.3. At a minimum, such policy
shall address the activities or functions for which attendance is
necessary and appropriate and may be compensated, and shall explain and
justify the methodology for determining the amount of compensation to
be paid to directors.
Sec. 918.3 Compensation policy requirements.
Payment to directors under each Bank's policy on director
compensation may be based upon factors that the Bank determines to be
appropriate, but each Bank's policy shall conform to the following
requirements:
(a) The annual ACPD for each Bank shall not exceed the amount
calculated in accordance with paragraph (b) of this section. Within
this limit:
(1) The total actual compensation received by each director in a
year shall reflect both the amount of time spent on official Bank
business and the level of responsibility assumed by that director, such
that greater or lesser attendance at board and committee meetings and
greater or lesser responsibility assumed by a director during a given
year will be reflected in the actual compensation received by the
director for that year; and
(2) The maximum compensation for the chair of each Bank's board of
directors in a given year shall not be equaled or exceeded by the
maximum compensation of any other director for that year and shall not
be less than 125 percent of the Bank's ACPD for that year.
(b) The limit on ACPD for each Bank shall be $28,000 for 1997. For
1998 and subsequent years, the limit on ACPD shall be adjusted annually
to reflect the preceding year's change in the Consumer Price Index
(CPI) for all urban consumers, as published by the Bureau of Labor
Statistics. Each year, as soon as practicable after the publication of
the previous year's CPI, the Finance Board shall publish notice, by
Federal Register, distribution of a memorandum, or otherwise, of the
CPI-adjusted limit on ACPD.
[[Page 52156]]
Sec. 918.4 Expenses.
Each Bank may pay its directors for such necessary and reasonable
travel, subsistence and other related expenses incurred in connection
with the performance of their official duties as are payable to senior
officers of the Bank under the Bank's travel policy, except that
directors may not be paid for gift or entertainment expenses.
Sec. 918.5 Disclosure.
Each Bank shall, in its annual report:
(a) State the sum of the total actual compensation paid to its
directors in that year;
(b) State the sum of the total actual expenses paid to its
directors in that year; and
(c) Summarize its policy on director compensation.
Sec. 918.6 Site of board of directors and committee meetings.
Meetings of a Bank's board of directors and committees thereof
usually should be held within the district served by the Bank. No
meetings of a Bank's board of directors and committees thereof may be
held in any location that is not within the United States, including
its possessions and territories.
PART 925--MEMBERS OF THE BANKS
59. The authority citation for newly designated part 925 continues
to read as follows:
Authority: 12 U.S.C. 1422, 1422a, 1422b, 1423, 1424, 1426, 1430,
1442.
60. Amend newly designated Sec. 925.1 by removing the definitions
of the terms ``Act'', ``Bank'', ``Board'', and ``Member''.
61. Amend newly designated Sec. 925.15 by redesignating paragraphs
(a)(i) and (a)(ii) as paragraphs (a)(1) and (a)(2), respectively.
62. Amend newly designated part 925 by removing the word ``Board'',
and adding, in its place, the words ``Finance Board'' in the following
places:
a. Section 925.1(n)(1)(iii);
b. Section 925.2(a)(2) and (c)(introductory text);
c. Section 925.3(a) and (c) (``Board's'');
d. Section 925.5(a)(1), (b)(1), (b)(2) and (c);
e. Section 925.18(a)(2), (c)(2), (c)(4) and (d)(2);
f. Section 925.20(e);
g. Section 925.25(d)(2); and
h. Section 925.27(a), (b)(1), (b)(4), (c)(1), (c)(2), (c)(3) and
(d).
63. In the table below, for each newly designated section indicated
in the left column, remove the cross-reference indicated in the middle
column and, in its place, add the cross-reference indicated in the
right column:
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
925.1(s)............................. Sec. 933.20 or 933.25....... Sec. 925.20 or 925.25.
925.1(y)............................. Sec. 933.8.................. Sec. 925.8.
925.2(a)(2).......................... Sec. 933.5.................. Sec. 925.5.
925.2(b)............................. Secs. 933.6 to 933.18....... Secs. 925.6 to 925.18.
925.2(c)(2).......................... Secs. 933.6 to 933.18....... Secs. 925.6 to 925.18.
925.2(c)(4).......................... Sec. 933.3(b)............... Sec. 925.3(b).
925.4(a)............................. Sec. 933.20(b)(1)........... Sec. 925.20(b)(1).
925.4(c)............................. Sec. 933.18(d).............. Sec. 925.18(d).
925.4(d)(1) (introductory text)...... Sec. 933.20................. Sec. 925.20.
925.4(d)(2).......................... Sec. 933.25(d)(1)(i)........ Sec. 925.25(d)(1)(i).
925.4(d)(2).......................... Secs. 933.25(d)(2)(i), (e) Secs. 925.25(d)(2)(i), (e) and (f).
and (f).
925.5(c)............................. Sec. 933.17................. Sec. 925.17.
925.7................................ Sec. 933.6(a)(1)............ Sec. 925.6(a)(1).
925.8................................ Sec. 933.6(a)(2)............ Sec. 925.6(a)(2).
925.9................................ Sec. 933.6(a)(3)............ Sec. 925.6(a)(3).
925.10............................... Sec. 933.6(b)............... Sec. 925.6(b).
925.10............................... Sec. 933.1(bb)(6)........... Sec. 925.1(bb)(6).
925.11(a) (introductory text)........ Sec. 933.6(a)(4)............ Sec. 925.6(a)(4).
925.11(b) (introductory text)........ Sec. 933.6(a)(4)............ Sec. 925.6(a)(4).
925.11(c)............................ Sec. 933.6(a)(4)............ Sec. 925.6(a)(4).
925.12 (introductory text)........... Sec. 933.6(a)(5)............ Sec. 925.6(a)(5).
925.13(a)............................ Sec. 933.6(a)(6)............ Sec. 925.6(a)(6).
925.14(a)(1)......................... Secs. 933.7, 933.8, 933.11 Secs. 925.7, 925.8, 925.11 and 925.12.
and 933.12.
925.14(a)(2)......................... Sec. 933.9.................. Sec. 925.9.
925.14(a)(3)......................... Sec. 933.10................. Sec. 925.10.
925.14(a)(4)(i)...................... Sec. 933.6(a)(6)............ Sec. 925.6(a)(6).
925.14(a)(4)(i)...................... Sec. 933.20................. Sec. 925.20.
925.14(a)(4)(i)...................... 12 CFR part 935.............. 12 CFR part 950.
925.14(a)(4)(ii)..................... Sec. 933.6(a)(6)............ Sec. 925.6(a)(6).
925.14(a)(4)(iii).................... Sec. 933.6(a)(6)............ Sec. 925.6(a)(6).
925.14(a)(4)(iii).................... Sec. 933.17(f).............. Sec. 925.17(f).
925.15 (introductory text)........... Secs. 933.7 to 933.13....... Secs. 925.7 to 925.13.
925.15(a)(1)......................... Sec. 933.11(a)(1)........... Sec. 925.11(a)(1).
925.15(a)(2)......................... Sec. 933.11(b)(3)(i)(A) to Sec. 925.11(b)(3)(i)(A) to (C).
(C).
925.15(b)............................ Sec. 933.13................. Sec. 925.13.
925.15(c)............................ Secs. 933.9 and 933.10...... Secs. 925.9 and 925.10.
925.16............................... Sec. 933.6(a)(4)............ Sec. 925.6(a)(4).
925.17(a)............................ Secs. 933.7 to 933.16....... Secs. 925.7 to 925.16.
925.17(a)............................ Sec. 933.6(a) and (b)....... Sec. 925.6(a) and (b).
925.17(b)............................ Secs. 933.8, 933.11, 933.12, Secs. 925.8, 925.11, 925.12, 925.13, or
933.13, or 933.16. 925.16.
925.17(b)............................ Sec. 933.6(a)(2), (4), (5), Sec. 925.6(a)(2), (4), (5), or (6).
or (6).
925.17(c) (heading).................. Sec. 933.8.................. Sec. 925.8.
[[Page 52157]]
925.17(c)............................ Sec. 933.8.................. Sec. 925.8.
925.17(c)............................ Sec. 933.6(a)(2)............ Sec. 925.6(a)(2).
925.17(d) (heading).................. Secs. 933.11 and 933.16..... Secs. 925.11 and 925.16.
925.17(d)(1)......................... Sec. 933.11(b)(1)........... Sec. 925.11(b)(1).
925.17(d)(1)......................... Sec. 933.11(b)(3)(i)........ Sec. 925.11(b)(3)(i).
925.17(d)(1)......................... Sec. 933.6(a)(4)............ Sec. 925.6(a)(4).
925.17(d)(2)......................... Sec. 933.16................. Sec. 925.16.
925.17(d)(2)......................... Sec. 933.6(a)(4)............ Sec. 925.6(a)(4).
925.17(e) (heading).................. Sec. 933.12................. Sec. 925.12.
925.17(e)(3)(i)...................... Secs. 933.11(b)(2) and Secs. 925.11(b)(2) and 925.16.
933.16.
925.17(e)(3)(ii)..................... Secs. 933.11(b)(2) and Secs. 925.11(b)(2) and 925.16.
933.16.
925.17(f) (heading).................. Secs. 933.13, 933.14(a)(4), Secs. 925.13, 925.14(a)(4), and
and 933.14(b)(3). 925.14(b)(3).
925.18(e)............................ Secs. 933.26, 933.27, and Secs. 925.26, 925.27, and 925.28.
933.28.
925.18(e)............................ Sec. 933.30................. Sec. 925.30.
925.20(b)............................ Sec. 933.3.................. Sec. 925.3.
925.20(b)(1) and (2)................. Sec. 933.4(a) or (d)........ Sec. 925.4(a) or (d).
925.22(b)(1)......................... Sec. 933.20(a).............. Sec. 925.20(a).
925.22(b)(1)......................... Sec. 933.31(d).............. Sec. 925.31(d).
925.23............................... Sec. 933.20(a).............. Sec. 925.20(a).
925.24(a)(2)......................... Sec. 933.20(a).............. Sec. 925.20(a).
925.24(b)(2)......................... Sec. 933.29................. Sec. 925.29.
925.24(b)(3)......................... Sec. 934.17................. Sec. 917.7.
925.25(d)(2)(ii)(A).................. Sec. 933.20(a).............. Sec. 925.20(a).
925.25(d)(2)(ii)(B).................. Sec. 933.20(a).............. Sec. 925.20(a).
925.25(d)(2)(iii).................... Sec. 933.20(a).............. Sec. 925.20(a).
925.25(d)(3)......................... Sec. 933.29................. Sec. 925.29.
925.26(c)............................ Sec. 933.29................. Sec. 925.29.
925.26(d)............................ Sec. 934.17................. Sec. 917.7.
925.27(e)............................ Sec. 933.29................. Sec. 925.29.
925.27(f)............................ Sec. 934.17................. Sec. 917.7.
925.28(b)............................ Sec. 933.29................. Sec. 925.29.
925.28(c)............................ Sec. 934.17................. Sec. 917.7.
925.29(a)(1)......................... Sec. 933.26, 933.27 or Sec. 925.26, 925.27 or 925.28.
933.28.
925.29(a)(1)......................... Sec. 933.28................. Sec. 925.28.
925.29(a)(1)......................... Secs. 933.24(b) or Secs. 925.24(b) or 925.25(d)(3).
933.25(d)(3).
925.29(a)(2)......................... Sec. 935.19................. Sec. 950.19.
925.30 (introductory text)........... Sec. 933.26................. Sec. 925.26.
925.30(a)............................ Sec. 933.18................. Sec. 925.18.
925.30(b)............................ Sec. 933.4(a)............... Sec. 925.4(a).
925.31(d)............................ Sec. 933.22(b)(1)........... Sec. 925.22(b)(1).
----------------------------------------------------------------------------------------------------------------
64. In subchapter E, add and reserve part 930 as follows:
PART 930--RISK MANAGEMENT AND CAPITAL STANDARDS [RESERVED]
65. In subchapter F, add and reserve part 940 as follows:
PART 940--CORE MISSION ACTIVITIES REQUIREMENTS [RESERVED]
PART 944--COMMUNITY SUPPORT REQUIREMENTS
66. The authority citation for newly designated part 944 continues
to read as follows:
Authority: 12 U.S.C. 1422a(a)(3)(B), 1422b(a)(1), 1429, and
1430.
67. Amend newly designated Sec. 944.1 by:
a. Removing paragraph designations (a) through (o); and
b. Removing the definitions of the terms ``Act'', ``Bank'',
``Finance Board'' and ``Member''.
68. In the table below, for each newly designated section indicated
in the left column, remove the cross-reference indicated in the middle
column and, in its place, add the cross-reference indicated in the
right column:
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
944.1 (def. of CICA or Community Sec. 935.1.................. Sec. 950.1.
Investment Cash Advance).
944.1 (def. of Community lending).... Sec. 970.3.................. Sec. 952.3.
944.1 (def. of First-time homebuyer). Paragraph (l)(1) of this Paragraph (1) of this definition.
section.
944.1 (def. of First-time homebuyer). This paragraph (l)(2)........ Paragraph (2) of this definition.
944.1 (def. of First-time homebuyer). This paragraph (l)(3)........ Paragraph (3) of this definition.
944.3(b)(2).......................... Sec. 936.5.................. Sec. 944.5.
[[Page 52158]]
944.3(b)(3).......................... Sec. 936.5.................. Sec. 944.5.
944.3(c)(2).......................... Sec. 936.5.................. Sec. 944.5.
944.3(c)(3).......................... Sec. 936.5.................. Sec. 944.5.
944.4(a)............................. Sec. 936.3.................. Sec. 944.3.
944.5(a)(3).......................... Sec. 936.3(b)(2)............ Sec. 944.3(b)(2).
944.5(a)(4).......................... Sec. 936.3(c)(2)............ Sec. 944.3(c)(2).
944.5(d)(2)(intro)................... Sec. 936.3(b)(2)............ Sec. 944.3(b)(2).
944.5(d)(2)(i)....................... Sec. 936.3(b)(3)............ Sec. 944.3(b)(3).
944.5(e)............................. Parts 960 and 970............ Parts 951 and 952.
----------------------------------------------------------------------------------------------------------------
PART 950--ADVANCES
69. The authority citation for newly designated part 950 is revised
to read as follows:
Authority: 12 U.S.C. 1422a(a)(3), 1422b(a)(1), 1426, 1429, 1430,
1430b and 1431.
70. Amend newly designated Sec. 950.1 by removing the definitions
of the terms ``Act'', ``Bank'', ``Board'' and ``Member''.
71. Amend newly designated part 950 by removing the word ``Board''
and, in its place, adding the words ``Finance Board'' in the following
places:
a. Section 950.1 (definitions of Affordable Housing Program,
nonresidential real property, residential housing finance assets (par.
6) and residential real property (par. (1)(v)));
b. Section 950.2(c)(3);
c. Section 950.3(a) and (c);
d. Section 950.4(c)(1) and (d)(2);
e. Section 950.5(a)(2);
f. Section 950.9(e);
g. Section 950.13(d)(2);
h. Section 950.20(a); and
i. Section 950.23(c)(2), (c)(3), (c)(4) (introductory text) (first
sentence only), (c)(4)(i) and (c)(4)(ii).
72. In the table below, for each newly designated section indicated
in the left column, remove the cross-reference indicated in the middle
column and, in its place, add the cross-reference indicated in the
right column:
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
950.1 (def. of Affordable Housing Part 960..................... Part 951.
Program).
950.1 (def. of Community Investment Section 1430................. Section 10.
Cash Advance).
950.1 (def. of Community Investment Section 1430(j)(10).......... Section 10(j)(10).
Cash Advance).
950.1 (def. of Community Investment Section 1430(i).............. Section 10(i).
Cash Advance).
950.1 (def. of Community Investment Parts 960 and 970............ Parts 951 and 952.
Cash Advance).
950.1 (def. of Community Investment Part 970..................... Part 952.
Cash Advance).
950.5(g)(2)(i)....................... Sec. 935.4(b)(2)............ Sec. 950.4(b)(2).
950.5(g)(2)(ii)...................... Sec. 935.4(a)............... Sec. 950.4(a).
950.6(b)(2)(ii)...................... Sec. 935.3(a)............... Sec. 950.3(a).
950.6(b)(3).......................... Part 960..................... Part 951.
950.8(a)............................. Sec. 935.3(a)............... Sec. 950.3(a).
950.9(a)(2).......................... Sec. 935.1.................. Sec. 950.1.
950.11(a)............................ Sec. 935.4(c)............... Sec. 950.4(c).
950.13(c)(1)......................... Sec. 935.4(b)(2)............ Sec. 950.4(b)(2).
950.13(c)(1)......................... Sec. 935.4(a)............... Sec. 950.4(a).
950.13(c)(2)......................... Sec. 935.18(c).............. Sec. 950.18(c).
950.13(e)............................ Sec. 935.4(b)(2)............ Sec. 950.4(b)(2).
950.13(e)............................ Sec. 935.4(a)............... Sec. 950.4(a)
950.15(a)(2)......................... Sec. 935.13(a)(1)(ii)....... Sec. 950.13(a)(1)(ii).
950.15(b)............................ Sec. 935.13(a)(1)(ii)....... Sec. 950.13(a)(1)(ii).
950.21............................... Sec. 935.13................. Sec. 950.13.
950.21............................... Sec. 935.20................. Sec. 950.20.
950.21............................... Sec. 935.24................. Sec. 950.24.
950.22(d)............................ Sec. 935.24(b)(2)........... Sec. 950.24(b)(2).
950.23(b)............................ Part 933..................... Part 925.
950.24(a)............................ Part 933..................... Part 925.
950.24(b)(2)(i)...................... Sec. 935.22(d).............. Sec. 950.22(d).
950.24(b)(2)(i)(A)................... Sec. 935.9(a)(1) or (2)..... Sec. 950.9(a)(1) or (2).
950.24(b)(2)(i)(B)................... Sec. 935.9(a)(3)............ Sec. 950.9(a)(3).
950.24(b)(2)(i)(B)................... Sec. 935.22(d).............. Sec. 950.22(d).
950.24(b)(2)(i)(C)................... Sec. 935.9(a)(4)............ Sec. 950.9(a)(4).
950.24(c)(2)(i)...................... Sec. 935.6(b)............... Sec. 950.6(b).
950.24(c)(2)(ii)..................... Sec. 936.5(b)(2)............ Sec. 944.5(b)(2).
----------------------------------------------------------------------------------------------------------------
PART 951--AFFORDABLE HOUSING PROGRAM
73. The authority citation for newly designated part 951 continues
to read as follows:
Authority: 12 U.S.C. 1430(j).
74. Amend newly designated
Sec. 951.1 by removing the definitions of the terms ``Act'', ``Bank'',
``Board of Directors'', ``Finance Board'' and ``Member''.
75. In the table below, for each newly designated section indicated
in the left column, remove the cross-reference indicated in the middle
column and, in its place, add the cross-reference indicated in the
right column:
[[Page 52159]]
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
951.1 (def. of Advance, par.(3))..... Part 935..................... Part 950.
951.1 (def. of Subsidy, par. (1)).... Sec. 960.8(c)(3)............ Sec. 951.8(c)(3).
951.3(b)(1)(i)....................... Sec. 960.1.................. Sec. 951.1.
951.3(b)(1)(iii)..................... Sec. 960.5(b)(2)............ Sec. 951.5(b)(2).
951.3(b)(1)(v)....................... Sec. 960.5(b)(10)........... Sec. 951.5(b)(10).
951.3(b)(1)(vi)...................... Sec. 960.6(b)(4)............ Sec. 951.6(b)(4).
951.3(b)(1)(vii)..................... Sec. 960.8.................. Sec. 951.8.
951.3(b)(1)(viii).................... Secs. 960.10(c) and 960.11.. Secs. 951.10(c) and 951.11.
951.5(a)(2)(i)....................... Sec. 960.1.................. Sec. 951.1.
951.5(a)(5).......................... Sec. 960.13(d)(1)........... Sec. 951.13(d)(1).
951.5(b)(1).......................... Sec. 960.1.................. Sec. 951.1.
951.5(b)(7)(i)....................... Secs. 960.13(c)(4) or (d)(1) Secs. 951.13(c)(4) or (d)(1).
951.5(b)(7)(ii)...................... Secs. 960.13(c)(5) or (d)(2) Secs. 951.13(c)(5) or (d)(2).
951.6(b)(2)(i)....................... Sec. 960.5(b)............... Sec. 951.5(b).
951.6(b)(3).......................... Sec. 960.5(b)............... Sec. 951.5(b).
951.6(b)(4)(i)....................... Sec. 960.5(b)............... Sec. 951.5(b).
951.7(a)(1).......................... Sec. 960.5(b)............... Sec. 951.5(b).
951.8(b)(2)(i)....................... Sec. 960.5(a)(2)............ Sec. 951.5(a)(2).
951.8(b)(2)(iii)..................... Sec. 960.5(a)(7)............ Sec. 951.5(a)(7).
951.8(c)(2).......................... Sec. 960.5(b)............... Sec. 951.5(b).
951.9(c)............................. Sec. 960.5(b)............... Sec. 951.5(b).
951.10(b)(1)(ii)(B).................. Sec. 960.13(c)(4) or (d)(1). Sec. 951.13(c)(4) or (d)(1).
951.10(c)(1)(iii).................... Sec. 960.13(c)(4) or (d)(1). Sec. 951.13(c)(4) or (d)(1).
951.10(d)............................ Sec. 960.1.................. Sec. 951.1.
951.11(b)............................ Sec. 960.1.................. Sec. 951.1.
951.12(a)(1)(ii)..................... Secs. 960.7 or 960.9........ Secs. 951.7 or 951.9.
951.12(a)(2)(i)(B)................... Secs. 960.7 or 960.9........ Secs. 951.7 or 951.9.
951.12(b)(2)......................... Secs. 960.7 or 960.9........ Secs. 951.7 or 951.9.
951.13(b)(3)(i)...................... Secs. 960.12(a)(1).......... Secs. 951.12(a)(1).
951.13(b)(3)(ii)(A).................. Secs. 960.12(b)............. Secs. 951.12(b).
951.13(b)(3)(ii)(B).................. Secs. 960.12(a)(2).......... Secs. 951.12(a)(2).
951.13(b)(4)(i)...................... Secs. 960.10(b) and Secs. 0951.10(b) and 960.11(a)(3)(ii).
960.11(a)(3)(ii).
951.13(b)(4)(ii)..................... Sec. 960.10(a)(1)........... Sec. 951.10(a)(1).
951.13(b)(4)(iii).................... Secs. 960.10(a)(2) and Secs. 951.10(a)(2) and 960.11(a)(3)(i).
960.11(a)(3)(i).
951.14(a)(1)......................... Sec. 960.2.................. Sec. 951.2.
951.15(a)(1)......................... Sec. 960.2.................. Sec. 951.2.
951.15(a)(2)......................... Sec. 960.2.................. Sec. 951.2.
----------------------------------------------------------------------------------------------------------------
PART 952--COMMUNITY INVESTMENT CASH ADVANCE PROGRAMS
76. The authority citation for newly designated part 952 continues
to read as follows:
Authority: 12 U.S.C. 1422b(a)(1) and 1430.
77. Amend newly designated Sec. 952.3 by removing the definitions
of the terms ``Act'', ``Bank'', ``Board of Directors'', ``Finance
Board'' and ``Member''.
78. In the table below, for each newly designated section indicated
in the left column, remove the cross-reference indicated in the middle
column and, in its place, add the cross-reference indicated in the
right column:
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
952.1................................ Part 960..................... Part 951.
952.2................................ Sec. 970.3.................. Sec. 952.3.
952.3 (def. of advance).............. Sec. 935.1.................. Sec. 950.1.
952.3 (def. of AHP).................. Part 960..................... Part 951.
952.3 (def. of CICA)................. Sec. 935.1.................. Sec. 950.1.
952.3 (def. of CICA program, par.(3)) Sec. 970.3.................. Sec. 952.3.
952.3 (def. of CICA program, par. Sec. 970.3.................. Sec. 952.3.
(4)).
952.3 (def. of Non-member borrower).. Part 935..................... Part 950.
952.4................................ Sec. 936.6.................. Sec. 944.6.
952.5(a)(1).......................... Part 960..................... Part 951.
952.5(a)(3).......................... Sec. 970.3.................. Sec. 952.3.
952.5(a)(4).......................... Sec. 970.3.................. Sec. 952.3.
952.5(d)(1).......................... Sec. 935.6.................. Sec. 950.6.
952.5(d)(3).......................... Parts 935 and 960............ Parts 950 and 951.
952.5(d)(4)(ii)...................... Sec. 935.24................. Sec. 950.24.
----------------------------------------------------------------------------------------------------------------
[[Page 52160]]
79. In subchapter G, add and reserve parts 954, 955 and 958 as
follows:
PART 954--MEMBER MORTGAGE ASSETS [RESERVED]
PART 955--INVESTMENTS [RESERVED]
PART 958--OFF-BALANCE SHEET ITEMS [RESERVED]
PART 959--STANDBY LETTERS OF CREDIT
80. The authority citation for newly designated part 959 continues
to read as follows:
Authority: 12 U.S.C. 1422b, 1429, 1430, 1430b, 1431.
81. Amend newly designated Sec. 959.1 by removing the definitions
of the terms ``Act'', ``Bank'', ``Finance Board'' and ``Member''.
82. In the table below, for each newly designated section indicated
in the left column, remove the cross-reference indicated in the middle
column and, in its place, add the cross-reference indicated in the
right column:
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
959.1 (def. of Community lending).... Sec. 970.4.................. Sec. 952.4.
959.1 (def. of Nonmember mortgagee).. Sec. 935.22(b).............. Sec. 950.22(b).
959.1 (def. of Nonmember SHFA)....... Sec. 935.1.................. Sec. 950.1.
959.1 (def. of Residential housing Sec. 935.1.................. Sec. 950.1.
finance, par. (1)).
959.2(a)(2).......................... Part 970..................... Part 952.
959.2(b)............................. Sec. 938.4(a)(2)............ Sec. 959.4(a)(2).
959.2(c)(1).......................... Sec. 935.9(a)............... Sec. 950.9(a).
959.2(c)(1).......................... Sec. 935.9(a)(4)(iii)....... Sec. 950.9(a)(4)(iii).
959.3(a)............................. Secs. 935.24(b)(1)(i) or Secs. 950.24(b)(1)(i) or (ii).
(ii).
959.3(a)(2).......................... Part 970..................... Part 952.
959.3(b)............................. Sec. 935.24(b)(2)(i)(A), (B) Secs. 950.24(b)(2)(i)(A), (B) or (C).
or (C).
959.4(a)(1).......................... Secs. 934.5, Secs. 950.24(b)(2)(i)(B), 950.24(d) or
935.24(b)(2)(i)(B) or 965.2(a)(2).
935.24(d).
959.4(c)............................. Part 935..................... Part 950.
959.5(a)(1)(ii)...................... Sec. 935.5.................. Sec. 950.5.
959.5(a)(1)(iii)..................... Part 970..................... Part 952.
959.5(a)(1)(iv)...................... Sec. 943.6(b)............... Sec. 975.6(b).
959.5(b)(1).......................... Secs. 938.2 or 938.3........ Secs. 959.2 or 959.3.
959.5(b)(2).......................... Secs. 935.9(b), 935.9(d), Secs. 950.9(b), 950.9(d), 950.9(e),
935.9(e), 935.10, 935.11 and 950.10, 950.11 and 950.12.
935.12.
----------------------------------------------------------------------------------------------------------------
83. In subchapter H, add and reserve part 965 as follows:
PART 965--SOURCES OF FUNDS [RESERVED]
PART 966--CONSOLIDATED OBLIGATIONS
84. The authority citation for newly designated part 966 continues
to read as follows:
Authority: 12 U.S.C. 1422b, 1431.
85. Amend newly designated part 966 by redesignating Secs. 966.0
through 966.6 as Secs. 966.1 through 966.7.
86. Amend newly designated Sec. 966.1 by:
a. Removing the paragraph designations; and
b. Removing the definitions of ``Board'' and ``consolidated
bonds''.
87. Amend newly designated part 966 by removing the terms
``consolidated bonds'' and ``consolidated Federal Home Loan Bank
bonds'', wherever they appear, and, in the place of both, adding the
term ``consolidated obligations''.
88. Amend newly designated part 966 by removing the word ``Board'',
wherever it appears, and, in its place, adding the words ``Finance
Board''.
89. Amend newly designated part 966 by removing the words ``Federal
Home Loan Banks'', wherever they appear, and, in their place, adding
the word ``Banks''.
90. Amend newly designated part 966 by removing the words ``Federal
Home Loan Bank Act'', wherever they appear, and, in their place, adding
the word ``Act''.
91. In the table below, for each newly designated section indicated
in the left column, remove the cross-reference indicated in the middle
column and, in its place, add the cross-reference indicated in the
right column:
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
966.4................................ Part 912..................... Part 986.
966.6................................ Secs. 910.3 and 910.4....... Secs. 966.4 and 966.5.
----------------------------------------------------------------------------------------------------------------
[[Page 52161]]
PART 975--COLLECTION, SETTLEMENT, AND PROCESSING OF PAYMENT
INSTRUMENTS
92. The authority citation for newly designated part 975 continues
to read as follows:
Authority: 12 U.S.C. 1430, 1431.
93. Amend newly designated Sec. 975.4 (introductory text) by
removing the reference to ``Sec. 943.2'' and, in its place, adding a
reference to ``Sec. 975.2''.
94. Amend newly designated part 975 by removing the word ``Board'',
wherever it appears, and, in its place, adding the words ``Finance
Board''.
95. Amend newly designated part 975 by removing the terms ``Federal
Home Loan Bank'' and ``Federal Home Loan Banks'', wherever they appear,
and, in their place, adding the words ``Bank'' and ``Banks'',
respectively.
96. Amend newly designated part 975 by removing the terms ``Federal
Home Loan Bank Act'' and ``Bank Act'', wherever they appear, and, in
the place of both, adding the word ``Act''.
97. New parts 976 and 977 are added to subchapter I as follows:
PART 976--BANK REQUESTS FOR INFORMATION
Sec.
976.1 Definitions.
976.2 Scope.
976.3 Request for confidential information.
976.4 Form of request.
976.5 Storage of confidential information.
976.6 Access to confidential information.
976.7 Third party requests for confidential information.
976.8 Computer data.
Authority: 12 U.S.C. 1422b(a), 1442.
Sec. 976.1 Definitions.
As used in this part:
Confidential information means any record, data, or report,
including but not limited to examination reports, or any part thereof,
that is non-public, privileged or otherwise not intended for public
disclosure which is in the possession or control of a financial
regulatory agency and which contains information regarding members of a
Bank or financial institutions with which a Bank has had or
contemplates having transactions under the Act.
Financial regulatory agency means any of the following:
(1) The Department of the Treasury, including either the Office of
the Comptroller of the Currency or the Office of Thrift Supervision;
(2) The Board of Governors of the Federal Reserve System;
(3) The National Credit Union Administration; or
(4) The Federal Deposit Insurance Corporation.
Third party means any person or entity except a director, officer,
employee or agent of either:
(1) A Bank in possession of any particular confidential
information; or
(2) The financial regulatory agency that supplied the particular
confidential information to such Bank.
Sec. 976.2 Scope.
This part governs the procedure by which a Bank will request and
receive confidential information pursuant to section 22 of the Act.
Sec. 976.3 Request for confidential information.
A Bank shall make all requests for confidential information to a
financial regulatory agency, or to a regional office of such agency if
mutually agreeable, in accordance with the procedures contained in this
part as well as any procedures of general applicability for requesting
information promulgated by such financial regulatory agency. This part
and its procedures may be supplemented by a confidentiality agreement
between a Bank and a financial regulatory agency.
Sec. 976.4 Form of request.
A request by a Bank to a financial regulatory agency for
confidential information shall be made in writing or by such other
means as may be agreed upon between the Bank and the financial
regulatory agency. The request shall reference section 22 of the Act,
as amended, and this regulation, and shall describe the confidential
information requested and identify its intended use pursuant to the
Act. The request shall be signed or otherwise made by any duly
authorized Bank officer or employee.
Sec. 976.5 Storage of confidential information.
Each Bank shall:
(a) Store all identified confidential information in secure storage
areas or filing cabinets or other secured facilities generally used by
such Bank and limit access thereto in the same manner as it maintains
the confidentiality of its own members' privileged or non-public
information;
(b) Have in place a written set of procedures and policies designed
to ensure the confidentiality of confidential information in its
possession; and
(c) Establish an internal review of its procedures for storing
confidential information and maintaining its confidentiality, as a part
of its internal audit process.
Sec. 976.6 Access to confidential information.
Each Bank shall ensure that access to the confidential information
stored at its facility is limited to those with a need to know such
information and that employees with access maintain the confidentiality
of the confidential information in accordance with the Bank's own
procedures for maintaining the confidentiality of its members'
privileged or non-public information.
Sec. 976.7 Third party requests for confidential information.
(a) General. In the event a Bank receives a request for
confidential information in its possession from any third party, the
Bank shall forward such request to the financial regulatory agency from
which the confidential information was obtained.
(b) Subpoena. In the event a Bank receives a subpoena for
confidential information issued by a Federal, state or local government
department, agency, court or bureau, the Bank shall give timely written
notice of such subpoena to the financial regulatory agency from which
the confidential information was obtained, unless such notice is
prohibited by applicable law. Except as limited in this part, the Bank
may disclose confidential information pursuant to the subpoena, after
giving timely written notice, when:
(1) The financial regulatory agency gives written approval to the
disclosure; or
(2) A binding order to produce the confidential information has
become final with all rights of appeal either exhausted or lapsed.
(c) Nondisclosure to third parties. Except as provided in paragraph
(b) of this section, a Bank shall not disclose confidential information
to any third party. A Bank shall refer all third party requests for
such confidential information to the financial regulatory agency that
released the confidential information to the Bank.
(d) Disclosure to Finance Board. (1) Neither this part nor any
confidentiality agreement executed between a Bank and a financial
regulatory agency shall prevent a Bank from disclosing confidential
information in its possession to the Finance Board whenever disclosure
is necessary to accomplish the Finance Board's supervision of Bank
membership applications or Bank director eligibility issues, or
disclosing any confidential information in its possession if such
disclosure is made pursuant to an audit conducted pursuant to
Sec. 976.5 or section 20 of the Act.
(2) The Finance Board shall keep all confidential information
received under
[[Page 52162]]
paragraph (d) of this section in strict confidence.
Sec. 976.8 Computer data.
Nothing in this part shall preclude a Bank from arranging with any
financial regulatory agency to transmit or allow access to confidential
information with the consent of such agency by means of an electronic
computer system. Any such arrangement shall ensure the security of the
computerized data stored in a Bank's computer and restrict access to
such data in order to preserve confidentiality in a manner agreed upon
by the Bank and the financial regulatory agency.
PART 977--MISCELLANEOUS BANK AUTHORITIES
Sec.
977.1 Definitions [Reserved].
977.2 Transfer of funds between Banks.
977.3 Trustee powers.
Authority: 12 U.S.C. 1422a(a)(3), 1422b(a)(1), 1431(a), 1431(e),
1432(a).
Sec. 977.1 Definitions [Reserved].
Sec. 977.2 Transfer of funds between Banks.
Inter-Bank borrowing shall be through unsecured deposits bearing
interest at rates negotiated between Banks. If agreement on terms
cannot be reached, the Finance Board may establish terms.
Sec. 977.3 Trustee powers.
A Bank may act, and make reasonable charges for doing so, as
trustee of any trust affecting the business of any member or any
institution or group applying for membership or for insurance of
accounts, or any group applying for a charter for a Federal Savings
Association, if:
(a) Such trust is created or arises for the benefit of the
institution or its depositors, investors, or borrowers, or for the
promotion of sound and economical home financing; and
(b) In the case of applicants, the Bank ceases to act as trustee if
the application is withdrawn or rejected.
98. In subchapter J, a new part 980 is added and reserved as
follows:
PART 980--NEW BUSINESS ACTIVITIES [RESERVED]
PART 985--OFFICE OF FINANCE ORGANIZATION AND FUNCTIONS
99. The authority citation for newly designated part 985 continues
to read as follows:
Authority: 12 U.S.C. 1422b, 1431.
100. Amend newly designated Sec. 985.1 by removing the definitions
of the terms ``Bank'', ``Bank Act'', ``Consolidated obligation'' and
``Finance Board''.
101. Amend newly designated part 985 by removing the words
``Federal Home Loan Banks'' and adding, in their place, the word
``Banks'' in the following places:
a. Section 985.1 (definition of Bank System--last two references
only); and
b. Section 985.6(c)(1).
102. Amend newly designated part 985 by removing the words ``Bank
Act'' and ``Federal Home Loan Bank Act'' and adding, in the place of
both, the word ``Act'' in the following places:
a. Section 985.3(a);
b. Section 985.4(c)(1);
c. Section 985.6(c)(2) and (c)(3); and
d. Section 985.8(a).
103. Amend newly designated part 985 by removing the words ``Board
of Directors'' and adding, in their place, the words ``board of
directors'' in the following places:
a. Section 985.1 (under the definition of Chair and in the heading
to the definition of ``OF board of directors'');
b. Section 985.2;
c. Section 985.3(a) and (b);
d. Section 985.5 (introductory text);
e. Section 985.6(a)(1), (a)(4), (a)(5) and (b);
f. Section 985.7 (heading), (a), (b), (c)(introductory text),
(d)(1), (d)(2), (d)(3), (d)(4)(introductory text), (e)(1), (e)(2),
(e)(3), (f)(1)(i), (f)(1)(ii) and (f)(1)(iii);
g. Section 985.8 (heading), (a), (b)(introductory text), (c) and
(d)(1);
h. Section 985.9 (heading), (a)(1), (a)(2) and (b)(introductory
text);
i. Section 985.10 (heading), (a)(1) and (b);
j. Section 985.11(b), (c), (d), (e)(1), (e)(2)(i), (e)(2)(ii),
(f)(1), (f)(2)(iii), (f)(3) and (f)(5); and
k. Section 985.12(c).
104. Amend newly designated Sec. 985.7(c)(2) by removing the word
``FHLBank''.
105. Amend newly designated Sec. 985.7(f)(2)(i) by removing the
words ``board of directors of the Finance Board'' and adding, in their
place, the words ``Board of Directors of the Finance Board''.
106. In the table below, for each newly designated section
indicated in the left column, remove the cross-reference indicated in
the middle column and, in its place, add the cross-reference indicated
in the right column:
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
985.6(a)(4).......................... Sec. 941.11................. Sec. 985.11.
985.7(f)(2)(introductory text)....... Sec. 932.17................. Part 918.
985.7(f)(2)(ii)...................... Section 932.17(a)(3) and Section 918.3(a)(2).
(c)(1)(ii).
985.7(f)(2)(iii)..................... Sec. 932.17................. Part 918.
----------------------------------------------------------------------------------------------------------------
PART 986--BOOK-ENTRY PROCEDURE FOR CONSOLIDATED OBLIGATIONS
107. The authority citation for newly designated part 986 continues
to read as follows:
Authority: 12 U.S.C. 1422a, 1422b, 1431, 1435.
108. Amend newly designated Sec. 986.1 by:
a. Removing paragraph designations (a) through (q); and
b. Removing the definitions of the terms ``Federal Home Loan Bank
Security'' and ``Finance Board''.
109. Amend newly designated part 986 by removing the terms
``Federal Home Loan Bank security'' and ``Federal Home Loan Bank
securities'', wherever they appear, and adding, in their place, the
terms ``consolidated obligation'' and ``consolidated obligations'',
respectively.
110. Amend newly designated part 986 by removing the terms
``Federal Home Loan Bank'' and ``Federal Home Loan Banks'', wherever
they appear, and adding, in their place, the words ``Bank'' and
``Banks'', respectively.
111. In the table below, for each newly designated section
indicated in the left column, remove the cross-reference indicated in
the middle column and, in its place, add the cross-reference indicated
in the right column:
[[Page 52163]]
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
986.1 (def. of Office of Finance).... Part 941..................... Part 985.
986.2(a)............................. Part 912..................... Part 986.
986.2(b)............................. Sec. 912.4(c)(1)............ Sec. 986.4(c)(1).
986.2(b)............................. Sec. 912.3.................. Sec. 986.3.
986.3(a)(introductory text).......... Part 912..................... Part 986.
986.4(c)(2).......................... Sec. 912.2(b) or Sec. 912.3 Sec. 986.2(b) or Sec. 986.3.
986.5(a)............................. Sec. 912.4(c)(1)............ Sec. 986.4(c)(1).
986.5(a)............................. Part 912..................... Part 986.
986.6(b)............................. Part 912..................... Part 986.
986.8(a)............................. Part 912..................... Part 986.
986.8(b)............................. Part 912..................... Part 986.
986.9(a)............................. Part 912..................... Part 986.
986.9(b)............................. Part 912..................... Part 986.
----------------------------------------------------------------------------------------------------------------
PART 987--FINANCIAL STATEMENTS OF THE BANKS
112. The authority citation for newly designated part 987 continues
to read as follows:
Authority: 12 U.S.C. 1422a, 1422b, 1431 and 1440.
113. Amend newly designated part 987 by removing and reserving
newly designated Sec. 987.1.
PART 995--FINANCING CORPORATION OPERATIONS
114. The authority citation for newly designated part 995 continues
to read as follows:
Authority: 12 U.S.C. 1441(b)(8), (c) and (j).
115. Amend newly designated Sec. 995.1 by:
a. Removing paragraph designations (a) through (p);
b. Removing the definitions of the terms ``Act'', `` Bank or
Banks'' and ``Finance Board''.
116. Amend newly designated Sec. 995.4(b) by:
a. Removing the words ``Federal Home Loan Bank securities''
wherever they appear and adding, in their place, the words
``consolidated obligations''.
b. Removing the terms ``Federal Home Loan Bank'' and ``Federal Home
Loan Banks'', wherever they appear, and adding, in their place, the
words ``Bank'' and ``Banks'', respectively.
117. Amend newly designated Sec. 995.8(b) by removing the words
``Board of Directors of the FDIC'' and adding, in their place, the
words ``board of directors of the FDIC''.
118. In the table below, for each newly designated section
indicated in the left column, remove the cross-reference indicated in
the middle column and, in its place, add the cross-reference indicated
in the right column:
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
995.1 (def. of Office of Finance).... Part 941..................... Part 985.
995.4(b)............................. Part 912..................... Part 986.
995.7(a)............................. Sec. 950.6.................. Sec. 995.6.
995.8(b)(1).......................... Sec. 950.6.................. Sec. 995.6.
995.8(c)(1).......................... Sec. 950.6.................. Sec. 995.6.
995.8(c)(2).......................... Sec. 950.6.................. Sec. 995.6.
----------------------------------------------------------------------------------------------------------------
PART 996--AUTHORITY FOR BANK ASSISTANCE OF THE RESOLUTION FUNDING
CORPORATION
119. The authority citation for newly designated part 996 is
revised to read as follows:
Authority: 12 U.S.C. 1422a, 1422b.
120. Amend newly designated Sec. 996.1 by removing the words
``Federal home loan banks'' and adding, in their place, the word
``Banks''.
121. Amend newly designated Sec. 996.2 by removing the word
``bank'' and adding, in its place, the word ``Bank''.
Dated: July 28, 1999.
By the Board of Directors of the Federal Housing Finance Board.
Bruce A. Morrison,
Chairman.
[FR Doc. 99-23415 Filed 9-24-99; 8:45 am]
BILLING CODE 6725-01-P