[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