[Federal Register Volume 65, Number 34 (Friday, February 18, 2000)]
[Rules and Regulations]
[Pages 8253-8269]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-3754]


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FEDERAL HOUSING FINANCE BOARD

12 CFR Chapter IX

[No. 2000-02]
RIN 3069-AA87


Reorganization of Federal Housing Finance Board Regulations

AGENCY: Federal Housing Finance Board.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Federal Housing Finance Board (Finance Board) is 
reorganizing and renumbering its regulations, deleting obsolete 
regulations and amending the renumbered regulations to achieve greater 
consistency in terminology and greater conformity with current 
stylistic conventions of the Code of Federal Regulations. The rule will 
implement a more logical and efficient presentation of the regulations 
governing the Federal Home Loan Banks (Banks) and the Federal Home Loan 
Bank System (Bank System), in anticipation of the incorporation of new 
and amended regulations to implement the Federal Home Loan Bank 
Modernization Act of 1999.

EFFECTIVE DATE: This final rule is effective on February 18, 2000.

FOR FURTHER INFORMATION CONTACT: Deborah F. Silberman, General Counsel, 
(202) 408-2570; or Eric Raudenbush, Senior Attorney-Advisor, (202) 408-
2932, Office of General Counsel, Federal Housing Finance Board, 1777 F 
Street, N.W., Washington, D.C. 20006.

SUPPLEMENTARY INFORMATION:

I. Comparison of Proposed and Final Rules

    On September 27, 1999, the Finance Board published a proposed rule 
to reorganize and renumber the agency's existing regulations, delete 
obsolete regulations and make certain technical amendments to the 
renumbered regulations. See 64 FR 52148 (Sept. 27, 1999). The 
amendments set forth in the proposed rule were intended to implement a 
more logical and efficient presentation of the rules governing the 
Banks and Bank System, as well as to achieve greater consistency in 
terminology and greater conformity with current stylistic conventions 
of the Code of Federal Regulations. The proposed rule was published 
with a 90-day comment period that ended on December 27, 1999. The 
Finance Board received no comment letters.
    Simultaneously with the proposed reorganization rule, the Finance 
Board published its proposed Financial Management and Mission 
Achievement (FMMA) rule, under which extensive substantive additions 
and amendments to the Finance Board's regulations were proposed. See 64 
FR 52163 (Sept. 27, 1999). The proposed reorganization rule, although 
itself making primarily only technical and organizational changes to 
the existing regulations, was developed with the assumption that it 
would be finalized concurrently with the FMMA rule. As such, it was 
expected that, when the reorganization rule was finalized: (1) The 
finalized FMMA provisions would be contained within the new 
organizational framework; and (2) outmoded existing regulations would 
be either deleted, or updated through amendments contained in FMMA to 
fit logically within the new framework.
    However, on November 17, 1999, in response to the recent enactment 
of the Federal Home Loan Bank System Modernization Act of 1999 \1\ 
(Modernization Act), Public Law 106-102, Title VI (1999), the Finance 
Board withdrew the proposed FMMA rule. See 64 FR 66115 (Nov. 24, 1999). 
Although the Finance Board expects in the coming year to promulgate 
separately modified versions of many of the regulations proposed in the 
FMMA rule, these new regulations and substantive amendments to existing 
regulations are not being finalized concurrently with this final 
reorganization rule as was originally anticipated. As a result, in this 
final rule, it is necessary for the Finance Board to carry over certain 
existing regulations that would have been superceded by FMMA--most 
notably on investments and deposits--until the agency promulgates new 
regulations to govern these Bank activities. Although these largely 
outmoded regulations do not fit perfectly within the regulatory 
structure contemplated by the reorganization, they have been placed in 
the most logical parts of 12 CFR chapter IX pending their anticipated 
deletion later in 2000. For areas in which the FMMA rule would have 
created new regulations, and in which the Finance Board still intends 
to promulgate new regulations (e.g., capital requirements and 
regulations governing member mortgage assets), appropriate part numbers 
have been reserved in order to make clear where these regulations will 
fit into the organizational structure of chapter IX as they are 
adopted.
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    \1\ The Modernization Act is Title VI of the larger Gramm-Leach-
Bliley Act. Pub. L. 106-102 (1999).
---------------------------------------------------------------------------

    Since the publication of the proposed reorganization rule, the 
Finance Board has promulgated two final rules, see 64 FR 55125 (Oct. 
12, 1999) (allocation of joint and several liability on consolidated 
obligations among the Banks); 64 FR 61016 (Nov. 9, 1999) (availability 
of unpublished information), and one interim final rule, see 64 FR 
71275 (Dec. 21, 1999) (devolution of corporate governance authorities 
as required by the Modernization Act) that affected text in the Code of 
Federal Regulations (CFR). The final reorganization rule accounts for 
these CFR text changes and places new material logically within the 
organizational structure.
    Finally, although the overall structure of the regulations under 
the final rule will be identical to that which was proposed, certain 
part numbers appear differently in the final rule. In renumbering the 
parts, the Finance Board has attempted to group together topics within 
each subchapter and to

[[Page 8254]]

leave unused part numbers at the end of each topic sequence so that any 
future regulations (including those that are not now foreseen) may be 
placed logically within the appropriate subchapter of chapter IX 
without the necessity of further renumbering of existing parts.
    So that new regulations implementing various statutory changes made 
by the Modernization Act may be promulgated quickly and efficiently 
within the new structure, the final reorganization rule is effective 
immediately upon publication in the Federal Register.

II. Analysis of the Final Rule

    This final rule deletes the existing subchapter headings for the 
Finance Board's regulations and establishes an entirely new set of 
subchapter headings. Within this structure, existing parts and sections 
have been re-ordered into logical subject-matter groupings under the 
subchapter headings. Generally, existing parts remain intact and have 
simply been given a new part number, with each section and paragraph 
retaining the same designation (e.g., Sec. 935.9(a) is now 
Sec. 950.9(a); Sec. 933.11(b)(3)(i)(A) is now Sec. 925.11(b)(3)(i)(A), 
etc.). In some cases, however, longer sections covering more complex 
subject matter have been redesignated as parts in order to allow the 
material to be presented more clearly without the need for excessive 
sub-paragraph designations (e.g. the material that previously appeared 
in Secs. 932.16 and .17 is now set forth as part 918).
    New part 900 has been created to contain definitions of terms that 
are used throughout the regulations (i.e., Act, Bank, Board of 
Directors, consolidated obligations, Finance Board and member). In 
conjunction with this, the definitions of these terms and synonymous 
terms have been removed from the definitional sections of the 
individual parts. 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.
    The following derivation table shows the origin of the material 
that is contained in each of the proposed newly designated parts (or 
sections, as appropriate). ``Future rulemaking'' is shown where a part 
or section has been reserved in anticipation of a future rulemaking.

----------------------------------------------------------------------------------------------------------------
    New part or section               Subject matter                          Old 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
910........................  Freedom of Information Act       Part 904
                              regulation.
911........................  Availability of unpublished      Part 905
                              information.
912........................  Information regarding meetings   Part 906
                              of the Board of Directors of
                              the Federal Housing Finance
                              Board.
913........................  Privacy Act procedures.........  Part 909
----------------------------------------------------------------------------------------------------------------
                     Subchapter C--Governance and Management of the Federal Home Loan Banks
----------------------------------------------------------------------------------------------------------------
915........................  Bank director eligibility,       Sec.  932.1-932.15
                              appointment and elections.
917........................  Powers and responsibilities of   Secs.  934.7, 934.16, 934.17 and future rulemaking
                              Bank directors and senior
                              management [Secs.  917.1-.5,
                              .9 are reserved].
918........................  Bank director compensation and   Secs.  932.16-932.17
                              expenses.
----------------------------------------------------------------------------------------------------------------
                                 Subchapter D--Federal Home Loan Bank Membership
----------------------------------------------------------------------------------------------------------------
925........................  Members of the Banks...........  Part 933
----------------------------------------------------------------------------------------------------------------
                   Subchapter E--Federal Home Loan Bank Risk Management and Capital Standards
----------------------------------------------------------------------------------------------------------------
930........................  [Reserved].....................  Future rulemaking
----------------------------------------------------------------------------------------------------------------
                                  Subchapter F--Federal Home Loan Bank Mission
----------------------------------------------------------------------------------------------------------------
940........................  [Reserved].....................  Future rulemaking
944........................  Community support requirements.  Part 946
----------------------------------------------------------------------------------------------------------------
                     Subchapter G--Federal Home Loan Bank Assets and Off-Balance Sheet Items
----------------------------------------------------------------------------------------------------------------
950........................  Advances.......................  Part 935
951........................  Affordable Housing Program.....  Part 960
952........................  Community Investment Cash        Part 970
                              Advance Programs.
955........................  Member Mortgage Assets           Future rulemaking
                              [Reserved].
956........................  Investments....................  Secs.  934.1, 934.2, 934.13 (to be superceded by a
                                                               future rulemaking)
960........................  Off-balance sheet items          Future rulemaking
                              [Reserved].
961........................  Standby letters of credit......  Part 938
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[[Page 8255]]

 
                                Subchapter H--Federal Home Loan Bank Liabilities
----------------------------------------------------------------------------------------------------------------
965........................  Sources of funds...............  Future rulemaking
966........................  Consolidated obligations.......  Part 910
969........................  Deposits.......................  Secs.  934.4-934.5 (to be superceded by a future
                                                               rulemaking)
----------------------------------------------------------------------------------------------------------------
                  Subchapter I--Miscellaneous Federal Home Loan Bank Operations and Authorities
----------------------------------------------------------------------------------------------------------------
975........................  Collection, settlement, and      Part 943
                              processing of payment
                              instruments.
977........................  Miscellaneous Bank authorities.  Secs.  934.3 (1st sentence), 934.6
978........................  Bank requests for information..  Secs.  934.15
----------------------------------------------------------------------------------------------------------------
                               Subchapter J--New Federal Home Loan Bank Activities
----------------------------------------------------------------------------------------------------------------
980........................  [Reserved].....................  Future rulemaking
----------------------------------------------------------------------------------------------------------------
                                         Subchapter K--Office of Finance
----------------------------------------------------------------------------------------------------------------
985........................  Operations of the Office of      Part 941 (to be superceded by a future rulemaking)
                              Finance.
987........................  Book-entry procedure for         Part 912
                              consolidated obligations.
989........................  Financial statements of the      Part 937
                              Banks.
----------------------------------------------------------------------------------------------------------------
                                     Subchapter L--Non-Bank System Entities
----------------------------------------------------------------------------------------------------------------
995........................  Financing Corporation            Part 950
                              operations.
996........................  Authority for Bank assistance    Part 955
                              of the Resolution Funding
                              Corporation.
997........................  Resolution Funding Corporation   Future rulemaking
                              Obligations of the Banks
                              [Reserved].
----------------------------------------------------------------------------------------------------------------

    Although the amendments made by the rule are otherwise entirely 
technical and organizational, the final rule deletes several regulatory 
provisions that either are now entirely obsolete, or involve the 
Finance Board in Bank governance and are therefore inappropriate since 
the enactment of the Modernization Act. While not literally obsolete, 
the regulations falling into the latter category have been essentially 
obsolete as a practical matter for several years or more. The following 
chart enumerates the sections that have been deleted:

------------------------------------------------------------------------
           Deleted               Subject matter      Reason for deletion
------------------------------------------------------------------------
Part 931....................  Definitions.........  Part 900 now
                                                     contains general
                                                     definitions.
Sec.  934.3 (2nd sentence)..  Transfer of funds     Discretion devolved
                               between Banks.        to Banks.
Sec.  934.8.................  Surety bonds........  Discretion devolved
                                                     to Banks.
Sec.  934.9.................  Insurance...........  Discretion devolved
                                                     to Banks.
Sec.  934.10................  Safekeeping of        Obsolete.
                               accounts.
Sec.  934.11................  Securities held in    Discretion devolved
                               trust or as           to Banks.
                               collateral.
Sec.  934.12................  Accounting..........  Discretion devolved
                                                     to Banks.
Sec.  934.14................  OTS assessments.....  Unnecessary.
------------------------------------------------------------------------

    With the renumbering of the Finance Board's regulations, reflected 
in the charts above, all cross-references to old part or section 
numbers within the Finance Board's regulations must also be changed. As 
such, much of the amendatory instruction set forth below addresses the 
revision of the hundreds of cross-references in the regulations to 
reflect accurately the new part and section numbers.
    In order to conform to the current stylistic conventions used in 
the Code of Federal Regulations, the rule also removes all paragraph 
designations from alphabetical definition sections of the individual 
parts, where feasible.
    All remaining changes merely correct typographical errors that came 
to the attention of the Finance Board during its review of the 
regulations.

III. Regulatory Flexibility Act

    This 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 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 final 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 997

    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 amended as follows:

[[Page 8256]]

    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 987 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, 910, 911, 912 and 913, 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 989 and transferred from 
subchapter B to subchapter K.
    14. Part 938 is redesignated as part 961 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, 987, 995 and 
996 are revised to read as set forth below.
    21. 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
910  Freedom of Information Act regulation
911  Availability of unpublished information
912  Information regarding meetings of the Board of Directors of the 
Federal Housing Finance Board
913  Privacy Act procedures

Subchapter C--Governance and Management of the Federal Home Loan Banks

915  Bank director eligibility, appointment and elections
917  Powers and responsibilities of Bank boards of directors and 
senior management
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 and Capital 
Standards

930  [Reserved]

Subchapter F--Federal Home Loan Bank Mission

940  [Reserved]
944  Community support requirements

Subchapter G--Federal Home Loan Bank Assets and Off-Balance Sheet Items

950  Advances
951  Affordable Housing Program
952  Community Investment Cash Advance Programs
955  Member Mortgage Assets [Reserved]
956  Investments
960  Off-balance sheet items [Reserved]
961  Standby letters of credit

Subchapter H--Federal Home Loan Bank Liabilities

965  Sources of funds [Reserved]
966  Consolidated obligations
969  Deposits

Subchapter I--Miscellaneous Federal Home Loan Bank Operations and 
Authorities

975  Collection, settlement, and processing of payment instruments
977  Miscellaneous Bank authorities
978  Bank requests for information

Subchapter J--New Federal Home Loan Bank Activities

980  [Reserved]

Subchapter K--Office of Finance

985  Operations of the Office of Finance
987  Book-entry procedure for consolidated obligations
989  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
997  Resolution Funding Corporation obligations of the Banks 
[Reserved]

    22. 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.
    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

    23. 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.

    24. Amend newly designated Sec. 905.1 by removing the definitions 
of the terms ``Bank'', ``Bank Act'' and ``Finance Board''.
    25. 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''.
    26. Amend newly designated Sec. 905.4 by:
    a. Removing from paragraph (a) the words ``Bank Act'' and adding, 
in their place, the word ``Act'';
    b. Removing from paragraph (b) the words ``Federal Home Loan Bank

[[Page 8257]]

consolidated bonds or notes'' and adding, in their place, the words 
``consolidated obligations''.
    27. Amend newly designated Sec. 905.14(d) by removing the word 
``System'' and adding, in its place, the words ``Bank System''.
    28. 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''.
    29. 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''.
    30. 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

    31. The authority citation for newly designated part 906 continues 
to read as follows:

    Authority: 12 U.S.C. 1422b and 1438(b).

    32. Amend newly designated Sec. 906.1 by removing the definitions 
of the terms ``Bank'' and ``Finance Board''.
    33. Amend newly designated Sec. 906.3(c) by removing the words 
``the Housing Finance Directorate of''.

PART 907--PROCEDURES

    34. The authority citation for newly designated part 907 continues 
to read as follows:

    Authority: 12 U.S.C. 1422b(a)(1).

    35. 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''.
    36. 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       Sec.  903.10........  Sec.  907.10
 text).
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........  Sec.  907.10
907.13(c)...................  Sec.  903.12(d).....  Sec.  907.12(d)
907.14(d)...................  12 CFR part 906.....  12 CFR part 912
907.14(e)...................  12 CFR 906.6........  12 CFR 912.6
907.14(g)...................  12 CFR 906.5(c).....  12 CFR 912.5(c)
907.15(c)...................  Sec.  903.12(g).....  Sec.  907.12(g)
------------------------------------------------------------------------

PART 910--FREEDOM OF INFORMATION ACT REGULATION

    38. The authority citation for newly designated part 910 continues 
to read as follows:

    Authority: 5 U.S.C. 552; 52 FR 10012 (Mar. 27, 1987).

    39. Amend newly designated Sec. 910.1 by:
    a. Removing paragraph designations (a) through (l); and
    b. Removing the definition of the term ``Finance Board''.
    40. Amend newly designated Sec. 910.2(a)(2) by removing the words 
``Federal Home Loan Bank Act'' and adding, in their place, the word 
``Act''.
    41. Amend newly designated part 910 by removing the words ``Federal 
Home Loan Bank'' and adding, in their place, the word ``Bank'' in the 
following places:
    a. Section 910.5(a)(7)(iv) and (a)(8); and
    b. Section 910.6 (introductory text).
    42. 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 8258]]



------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
910.2(a)(3).................  12 CFR part 909.....  12 CFR part 913
910.2(b)(1).................  Secs.  904.5 through  Secs.  910.5 through
                               904.7.                910.7
910.2(b)(3).................  Sec.  904.9.........  Sec.  910.9
910.4(a)....................  Sec.  904.9(f)......  Sec.  910.9(f)
910.4(a)....................  Sec.  904.3(a)......  Sec.  910.3(a)
910.4(b)....................  Sec.  904.8.........  Sec.  910.8
910.4(d)(1)(ii).............  Sec.  904.9(a)(4)(iv  Sec.  910.9(a)(4)(iv
                               ).                    )
910.4(e)....................  Sec.  904.9.........  Sec.  910.9
910.8(a)(1).................  Sec.  904.4.........  Sec.  910.4
910.8(a)(2).................  Sec.  904.9(f)......  Sec.  910.9(f)
910.9(b)....................  Sec.  904.5.........  Sec.  910.5
910.9(c)....................  Sec.  904.4.........  Sec.  910.4
910.9(f)(4)(ii).............  Sec.  904.4.........  Sec.  910.4
------------------------------------------------------------------------

PART 911--AVAILABILITY OF UNPUBLISHED INFORMATION

    43. 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).

    44. Amend newly designated Sec. 911.1 by:
    a. Removing paragraph designations (a) through (d);
    b. Removing the definition of ``Finance Board''; and
    c. Arranging the remaining definitions alphabetically.
    45. 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 and first sentence); and
    d. Section 911.6(a).
    46. 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''.
    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
------------------------------------------------------------------------
911.1 (def. of unpublished    12 CFR parts 904 and  12 CFR parts 910 and
 information).                 909.                  913
911.9(a)....................  12 CFR 904.9........  12 CFR 910.9
------------------------------------------------------------------------

PART 912--INFORMATION REGARDING MEETINGS OF THE BOARD OF DIRECTORS 
OF THE FEDERAL HOUSING FINANCE BOARD

    48. The authority citation for newly designated part 912 continues 
to read as follows:

    Authority: 5 U.S.C. 552b.

    49. Amend newly designated Sec. 912.1(a) by removing the words 
``Federal Housing Finance Board'' and adding, in their place, the words 
``Finance Board''.
    50. Amend newly designated Sec. 912.2 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''.
    51. Amend newly designated Sec. 912.5(b)(1) by removing the words 
``FHLBank consolidated bonds or notes'' and adding, in their place, the 
words ``consolidated obligations''.
    52. Amend newly designated part 912 by revising all references to 
``FHLBank'' and ``FHLBanks'' to read ``Bank'' and ``Banks'', 
respectively.
    53. 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
------------------------------------------------------------------------
912.3(a)........................  Sec.  906.4.......  Sec.  912.4
912.5(a)(1).....................  Sec.  906.4.......  Sec.  912.4
912.5(a)(5).....................  Sec.  906.4.......  Sec.  912.4
912.5(a)(6)(ii).................  Sec.  906.4.......  Sec.  912.4
912.5(b)(1).....................  Sec.  906.4.......  Sec.  912.4
912.5(c)(2).....................  Sec.  906.4.......  Sec.  912.4
912.5(c)(3)(i)..................  Sec.  906.4(a)....  Sec.  912.4(a)
912.6(a)(1).....................  Sec.  906.4.......  Sec.  912.4
912.6(a)(1).....................  Sec.  906.5.......  Sec.  912.5
912.6(a)(2).....................  Sec.  906.5.......  Sec.  912.5
912.6(a)(2).....................  Sec.  906.5(b)(4).  Sec.  912.5(b)(4)
912.6(b)........................  Sec.  906.5.......  Sec.  912.5
912.6(c)(1).....................  Sec.  906.5.......  Sec.  912.5
------------------------------------------------------------------------


[[Page 8259]]

PART 913--PRIVACY ACT PROCEDURES

    54. The authority citation for newly designated part 913 continues 
to read as follows:

    Authority: 5 U.S.C. 552a.

    55. Amend newly designated Sec. 913.2 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''.
    56. 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
------------------------------------------------------------------------
913.4(a)........................  Sec.  909.3(b)....  Sec.  913.3(b)
913.4(a)........................  Sec.  909.6.......  Sec.  913.6
913.5(a)........................  Sec.  909.9.......  Sec.  913.9
913.5(a)........................  Sec.  909.3.......  Sec.  913.3
913.5(c)(4).....................  Sec.  909.6.......  Sec.  913.6
913.9(a)........................  Sec.  909.3.......  Sec.  913.3
913.9(a)........................  Sec.  909.4.......  Sec.  913.4
913.9(a)........................  Sec.  909.5(a) and  Sec.  913.5(a) and
                                   (c)(3) and (4).     (c)(3) and (4)
913.9(a)........................  Sec.  909.6.......  Sec.  913.6
913.9(b)........................  Sec.  909.3.......  Sec.  913.3
913.9(b)........................  Sec.  909.4.......  Sec.  913.4
913.9(b)........................  Sec.  909.5(a) and  Sec.  913.5(a) and
                                   (c)(3).             (c)(3)
913.9(b)........................  Sec.  909.6.......  Sec.  913.6
------------------------------------------------------------------------

PART 915--BANK DIRECTOR ELIGIBILITY, APPOINTMENT AND ELECTIONS

    57. 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.

    58. Amend newly designated part 915 by:
    a. Removing the subpart designations; and
    b. Removing newly designated Secs. 915.16 through 915.19.
    59. Amend newly designated Sec. 915.1 by removing the definitions 
of the terms ``Act'', ``Bank or Banks'', ``Finance Board'' and 
``Member''.
    60. 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''.
    61. Amend newly designated Sec. 915.11(b) by adding the word 
``Bank's'' before the words ``board of directors'', wherever they 
appear.
    62. Amend newly designated Sec. 915.11(f)(1) by removing the word 
``other''.
    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
------------------------------------------------------------------------
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)
------------------------------------------------------------------------


    64. New parts 917 and 918 are added to subchapter C to read as 
follows:

PART 917--POWERS AND RESPONSIBILITIES OF BANK DIRECTORS AND SENIOR 
MANAGEMENT

Sec.
917.1-917.5   [Reserved]
917.6   Budget preparation and reporting requirements.
917.7   Dividends.
917.8   Bank bylaws.
917.9   [Reserved]

    Authority: 12 U.S.C. 1422a(a)(3), 1422b(a)(1), 1427, 1432(a), 
1436(a), 1440.


Sec. 917.1-917.5  [Reserved]


Sec. 917.6  Budget preparation and reporting requirements.

    (a) Adoption of budgets. Each Bank's board of directors shall be 
responsible for the adoption of an annual operating expense budget and 
a capital expenditures budget for the Bank, and any subsequent 
amendments thereto,

[[Page 8260]]

consistent with the requirements of the Act, this section, other 
regulations and policies of the Finance Board, and with the Bank's 
responsibility to protect both its members and the public interest by 
keeping its costs to an efficient and effective minimum.
    (b) No delegation of budget authority. A Bank's board of directors 
may not delegate the authority to approve the Bank's annual budgets, or 
any subsequent amendments thereto, to Bank officers or other Bank 
employees.
    (c) Interest rate scenario. A Bank's annual budgets shall be 
prepared based upon an interest rate scenario as determined by the 
Bank.
    (d) Board approval for deviations. A Bank may not exceed its total 
annual operating expense budget or its total annual capital 
expenditures budget without prior approval by the Bank's board of 
directors of an amendment to such budget.


Sec. 917.7  Dividends.

    A Bank's board of directors may declare and pay a dividend only 
from previously retained earnings or current net earnings and only if 
such payment will not result in a projected impairment of the par value 
of the capital stock of the Bank. Dividends on such capital stock shall 
be computed without preference.


Sec. 917.8  Bank bylaws.

    A Bank's board of directors shall have in effect at all times 
bylaws governing the manner in which the Bank administers its affairs 
and such bylaws shall be consistent with applicable laws and 
regulations as administered by the Finance Board.


Sec. 917.9  [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   Approval by Finance Board.
918.6   Disclosure.
918.7   Maintenance of effort.
918.8   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:
    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, daily meeting fees, incentive payments and fringe benefits.


Sec. 918.2  Annual compensation.

    Beginning in 2000 and annually thereafter, each Bank's board of 
directors shall adopt 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 of 
directors, 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) Statutory limits on annual compensation. Pursuant to section 
7(i) of the Act, as amended, 12 U.S.C. 1427(i), for 2000, the following 
limits on compensation shall apply: for a Chairperson--$25,000; for a 
Vice Chairperson--$20,000; for any other member of the Bank's board of 
directors--$15,000. Beginning in 2001 and for subsequent years, these 
limits on annual compensation shall be adjusted annually by the Finance 
Board to reflect any percentage increase in the preceding year's 
Consumer Price Index (CPI) for all urban consumers, as published by the 
Department of Labor. 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 limits on annual compensation.
    (b) Compensation permitted only for performance of official Bank 
business. The total compensation received by each director in a year 
shall reflect the amount of time spent on official Bank business, such 
that greater or lesser attendance at board and committee meetings 
during a given year will be reflected in the compensation received by 
the director for that year. A Bank shall not pay fees to a director, 
such as retainer fees, that do not reflect the director's performance 
of official Bank business.


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  Approval by Finance Board.

    Payments made to directors in compliance with the limits on annual 
directors' compensation and the standards set forth in this section are 
deemed to be approved by the Finance Board for purposes of section 7(i) 
of the Act, as amended.


Sec. 918.6  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. 918.7  Maintenance of effort.

    (a) General. Notwithstanding the limits on annual directors' 
compensation established by section 7(i) of the Act, as amended, the 
board of directors of each Bank shall continue to maintain its level of 
oversight of the management of the Bank, and, except as provided in 
paragraph (b) of this section, the board of directors shall hold no 
fewer in-person meetings in any year than it has held on average over 
the immediately preceding three years.
    (b) Waiver of meeting requirement. A Bank may apply to the Finance 
Board for approval, upon a showing of good cause, to hold in any year 
fewer than the number of in-person board of directors meetings required 
under paragraph (a) of this section.


Sec. 918.8  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

    65. The authority citation for newly designated part 925 continues 
to read as follows:


[[Page 8261]]


    Authority: 12 U.S.C. 1422, 1422a, 1422b, 1423, 1424, 1426, 1430, 
1442.

    66. Amend newly designated Sec. 925.1 by removing the definitions 
of the terms ``Act'', ``Bank'', ``Board'', and ``Member''.

    67. Amend newly designated Sec. 925.15 by redesignating paragraphs 
(a)(i) and (a)(ii) as paragraphs (a)(1) and (a)(2), respectively.
    68. 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).
    69. 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       Sec.  925.20 or
                               933.25.               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       Secs.  925.6 to
                               933.18.               925.18
925.2(c)(2).................  Secs.  933.6 to       Secs.  925.6 to
                               933.18.               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      Sec.  933.20........  Sec.  925.20
 text).
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)(  Secs.  925.25(d)(2)(
                               i), (e) and (f).      i), (e) 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,  Secs.  925.7, 925.8,
                               933.11 and 933.12.    925.11 and 925.12
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 (intro)..............  Secs.  933.7 to       Secs.  925.7 to
                               933.13.               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  Sec.  925.11(b)(3)(i
                               )(A) to (C).          )(A) to (C)
925.15(b)...................  Sec.  933.13........  Sec.  925.13
925.15(c)...................  Secs.  933.9 and      Secs.  925.9 and
                               933.10.               925.10
925.16......................  Sec.  933.6(a)(4)...  Sec.  925.6(a)(4)
925.17(a)...................  Secs.  933.7 to       Secs.  925.7 to
                               933.16.               925.16
925.17(a)...................  Sec.  933.6(a) and    Sec.  925.6(a) and
                               (b).                  (b)
925.17(b)...................  Secs.  933.8,         Secs.  925.8,
                               933.11, 933.12,       925.11, 925.12,
                               933.13, or 933.16.    925.13, or 925.16
925.17(b)...................  Sec.  933.6(a)(2),    Sec.  925.6(a)(2),
                               (4), (5), or (6).     (4), (5), or (6)
925.17(c)(heading)..........  Sec.  933.8.........  Sec.  925.8
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     Secs.  925.11 and
                               933.16.               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)   Secs.  925.11(b)(2)
                               and 933.16.           and 925.16
925.17(e)(3)(ii)............  Secs.  933.11(b)(2)   Secs.  925.11(b)(2)
                               and 933.16.           and 925.16
925.17(f)(heading)..........  Secs.  933.13,        Secs.  925.13,
                               933.14(a)(4), and     925.14(a)(4), and
                               933.14(b)(3).         925.14(b)(3)
925.18(e)...................  Secs.  933.26,        Secs.  925.26,
                               933.27, and 933.28.   925.27, and 925.28
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     Sec.  925.4(a) or
                               (d).                  (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)

[[Page 8262]]

 
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  Sec.  925.26, 925.27
                               or 933.28.            or 925.28
925.29(a)(1)................  Sec.  933.28........  Sec.  925.28
925.29(a)(1)................  Secs.  933.24(b) or   Secs.  925.24(b) or
                               933.25(d)(3).         925.25(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)
------------------------------------------------------------------------


    70. In subchapter E, add and reserve part 930 as follows:

PART 930--[RESERVED]

    71. In subchapter F, add and reserve part 940 as follows:

PART 940--[RESERVED]

PART 944--COMMUNITY SUPPORT REQUIREMENTS

    72. 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.

    73. Amend newly designated 944.1 by:
    a. Removing paragraph designations
    (a) through (o); and
    b. Removing the definitions of the terms ``Bank'', ``Finance 
Board'' and ``Member''.

    74. 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        Sec.  935.1.........  Sec.  950.1
 Community Investment Cash
 Advance).
944.1 (def. of Community      Sec.  970.3.........  Sec.  952.3
 lending).
944.1 (def. of First-time     paragraph (l)(1) of   paragraph (1) of
 homebuyer).                   this section.         this definition
944.1 (def. of First-time     paragraph (l)(2)....  paragraph (2) of
 homebuyer).                                         this definition
944.1 (def. of First-time     paragraph (l)(3)....  paragraph (3) of
 homebuyer).                                         this definition
944.3(b)(2).................  Sec.  936.5.........  Sec.  944.5
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) (introductory     Sec.  936.3(b)(2)...  Sec.  944.3(b)(2)
 text).
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

    75. The authority citation for newly designated part Sec. 950 
continues to read as follows:

    Authority: 12 U.S.C. 1422a(a)(3), 1422b(a)(1), 1426, 1429, 1430, 
1430b and 1431.

    76. Amend newly designated Sec. 950.1 by removing the definitions 
of the terms ``Act'', ``Bank'', ``Board'' and ``Member''.

    77. 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);
    e. Section 950.9(e);
    f. Section 950.13(d)(2);
    g. Section 950.20(a); and
    h. Section 950.23(c)(2), (c)(3), (c)(4)(introductory text) (first 
sentence only), (c)(4)(i) and (c)(4)(ii).

    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

[[Page 8263]]

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

    79. The authority citation for newly designated part 951 continues 
to read as follows:

    Authority: 12 U.S.C. 1430(j).

    80. Amend newly designated Sec. 951.1 by removing the definitions 
of the terms ``Act'', ``Bank'', ``Board of Directors'', ``Finance 
Board'' and ``Member''.

    81. 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
----------------------------------------------------------------------------------------------------------------
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)......................  Sec.  960.13(c)(4) or (d)(1)........  Sec.  951.13(c)(4) or (d)(1)
951.5(b)(7)(ii).....................  Sec.  960.13(c)(5) or (d)(2)........  Sec.  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)

[[Page 8264]]

 
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).....................  Sec.  960.12(a)(1)..................  Sec.  951.12(a)(1)
951.13(b)(3)(ii)(A).................  Sec.  960.12(b).....................  Sec.  951.12(b)
951.13(b)(3)(ii)(B).................  Sec.  960.12(a)(2)..................  Sec.  951.12(a)(2)
951.13(b)(4)(i).....................  Secs.  960.10(b) and                  Secs.  951.10(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

    82. The authority citation for newly designated part 952 continues 
to read as follows:

    Authority: 12 U.S.C. 1422b(a)(1) and 1430.

    83. Amend newly designated Sec. 952.3 by removing the definitions 
of the terms ``Act'', ``Bank'', ``Board of Directors'', ``Finance 
Board'' and ``Member''.
    84. 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 or Community      Sec.  935.1 Sec.  950.1.............
 Investment Cash Advance).
952.3 (def. of CICA program,          Sec.  970.3.........................  Sec.  952.3
 par.(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
----------------------------------------------------------------------------------------------------------------


    88. In subchapter G, add parts 955, 956 and 960, and reserve parts 
955 and 960, as follows:

PART 955--MEMBER MORTGAGE ASSETS [RESERVED]

PART 956--INVESTMENTS

Sec.
956.1  Definitions. [Reserved]
956.2  Authorized investments.
956.3  Loans guaranteed under the Foreign Assistance Act of 1961.
956.4  Gold and gold-related transactions.

    Authority: 12 U.S.C. 1422b(a)(1), 1431, 1436(a).


Sec. 956.1  Definitions. [Reserved]


Sec. 956.2  Authorized investments.

    (a) Banks may acquire or dispose of securities with prior approval 
of the Finance Board or its designated representative or in conformity 
with authorizations of the Finance Board or such representative, or 
stated Finance Board policy. A Bank's board of directors may authorize 
Bank officer(s) to acquire or dispose of securities qualifying as 
liquidity for deposits under the investment policy of the Finance Board 
as in the judgment of the officer(s) is necessary in the operation of 
the Bank. Any other acquisition or disposition must be authorized in 
advance by a majority of the board of directors, executive committee, 
or investment committee consisting of three or more persons a majority 
of whom are directors of the Bank. Single acquisitions or dispositions 
may be so authorized, or acquisitions and/or dispositions of securities 
of a stated amount maturing within specified dates as in the judgment 
of the officer(s) designated in the authorization are necessary in the 
operation of the Bank, may be so authorized, for periods of 90 days or 
less.
    (b) Compliance with sections 11 and 16 of the Act, 12 U.S.C. 1431 
and 1436, shall be determined based on the principal amount of 
obligations of the United States.
    (c) Secured advances to members maturing within five years are 
investments in compliance with section 11(g) of the Act, 12 U.S.C. 
1431(g).
    (d) Cash reserves may be held temporarily, awaiting investment 
opportunity, without violating section 16 of the Act, 12 U.S.C. 1436.


Sec. 956.3  Loans guaranteed under the Foreign Assistance Act of 1961.

    (a) With prior approval of the Finance Board, a Bank's board of 
directors may authorize it to acquire, hold, or dispose

[[Page 8265]]

of any of the following loans, or interests therein, primarily to 
facilitate acquisition of participation interests in such loans by 
members authorized to make such investment:
    (1) Housing project loans with any guaranty under section 221 of 
the Foreign Assistance Act of 1961, as in effect before December 30, 
1969;
    (2) Loans with any guaranty under section 224 of such Act, as in 
effect before December 30, 1969; or (3) Loans with any guaranty under 
section 221 or 222 of such Act, as in effect after December 29, 1969.
    (b) Prior approval of the Finance Board is not required to 
repurchase participation interests previously sold to a member.


Sec. 956.4  Gold and gold-related transactions.

    No Bank may engage in any capacity or manner in any transaction or 
activity involving gold (including gold coin) or gold related 
instruments or securities, except for purchase and sale of gold coins 
minted and issued by the United States Treasury pursuant to Public Law 
99-185, 99 Stat. 1177 (1985), and activities reasonably incident 
thereto.

PART 960--OFF-BALANCE SHEET ITEMS [RESERVED]

PART 961--STANDBY LETTERS OF CREDIT

    86. The authority citation for newly designated part 961 continues 
to read as follows:

    Authority: 12 U.S.C. 1422b, 1429, 1430, 1430b, 1431.

    87. Amend newly designated Sec. 961.1 by removing the definitions 
of the terms ``Act'', ``Bank'', ``Finance Board'' and ``Member''.

    88. 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
----------------------------------------------------------------------------------------------------------------
961.1 (def. of Community lending)...  Sec.  970.4.........................  Sec.  952.4.
961.1 (def. of Nonmember mortgagee).  Sec.  935.22(b).....................  Sec.  950.22(b).
961.1 (def. of Nonmember SHFA)......  Sec.  935.1.........................  Sec.  950.1.
961.1 (def. of Residential housing    Sec.  935.1.........................  Sec.  950.1.
 finance, par. (1)).
961.2(a)(2).........................  part 970............................  part 952.
961.2(b)............................  Sec.  938.4(a)(2)...................  Sec.  961.4(a)(2).
961.2(c)(1).........................  Sec.  935.9(a)......................  Sec.  950.9(a).
961.2(c)(1).........................  Sec.  935.9(a)(4)(iii)..............  Sec.  950.9(a)(4)(iii).
961.3(a)............................  Secs.  935.24(b)(1)(i) or (ii)......  Secs.  950.24(b)(1)(i) or (ii).
961.3(a)(2).........................  part 970............................  part 952.
961.3(b)............................  Sec.  935.24(b)(2)(i)(A), (B) or (C)  Secs.  950.24(b)(2)(i)(A), (B) or
                                                                             (C).
961.4(a)(1).........................  Secs.  934.5, 935.24(b)(2)(i)(B) or   Secs.  950.24(b)(2)(i)(B), 950.24(d)
                                       935.24(d).                            , or 965.2(a)(2).
961.4(c)............................  part 935............................  part 950.
961.5(a)(1)(ii).....................  Sec.  935.5.........................  Sec.  950.5.
961.5(a)(1)(iii)....................  part 970............................  part 952.
961.5(a)(1)(iv).....................  Sec.  943.6(b)......................  Sec.  975.6(b).
961.5(b)(1).........................  Secs.  938.2 or 938.3...............  Secs.  961.2 or 961.3
961.5(b)(2).........................  Secs.  935.9(b), 935.9(d), 935.9(e),  Secs.  950.9(b), 950.9(d), 950.9(e),
                                       935.10, 935.11 and 935.12.             950.10, 950.11 and 950.12.
----------------------------------------------------------------------------------------------------------------


    89. In subchapter H, add and reserve part 965 as follows:

PART 965--SOURCES OF FUNDS [RESERVED]

PART 966--CONSOLIDATED OBLIGATIONS

    90. The authority citation for newly designated part 966 continues 
to read as follows:

    Authority: 12 U.S.C. 1422b, 1431.

    91. Amend newly designated part 966 by redesignating Secs. 966.0 
through 966.7 as Secs. 966.1 through 966.8.

    92. Amend newly designated Sec. 966.1 by:
    a. Removing the paragraph designations;
    b. Removing the definitions of ``Finance Board'', ``Bank'' and 
``consolidated bonds''; and
    c. Arranging the remaining defined terms alphabetically.

    93. 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''.

    94. Amend newly designated part 966 by removing the word ``Board'' 
and, in its place, adding the words ``Finance Board'' in the following 
places:
    a. Sections 966.2(a) and (b);
    b. Section 966.3;
    c. Section 966.4;
    d. Section 966.5;
    e. Section 966.6; and
    f. Section 966.7(b)(2).

    95. Amend newly designated part 966 by removing the words ``Federal 
Home Loan Banks'', wherever they appear, and, in their place, adding 
the word ``Banks''.

    96. 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''.

    97. 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
----------------------------------------------------------------------------------------------------------------
966.1 (def. of Non-complying Bank)..  Sec.  910.7(b)(1)...................  Sec.  966.8(b)(1)

[[Page 8266]]

 
966.1 (def. of Non-complying Bank)..  Sec.  910.7(b)(2)...................  Sec.  966.8(b)(2)
966.1 (def. of Non-complying Bank)..  Sec.  910.7(c)......................  Sec.  966.8(c)
966.4...............................  part 912............................  part 987
966.6...............................  Secs.  910.3 and 910.4..............  Secs.  966.4 and 966.5
966.7(b) (introductory paragraph)...  Sec.  910.1 (b) or (c)..............  Sec.  966.2 (b) or (c)
966.7(b)(2).........................  Sec.  910.1(b)......................  Sec.  966.2(b)
----------------------------------------------------------------------------------------------------------------


    98. In subchapter H, add a new part 969, as follows:

PART 969--DEPOSITS

Sec.
969.1   Definitions. [Reserved]
969.2   Deposits from members.
969.3   Deposits in banks and trust companies.

    Authority: 12 U.S.C. 1422b(a)(1), 1431.


Sec. 969.1  Definitions. [Reserved]


Sec. 969.2  Deposits from members.

    Banks may accept demand and time deposits from members, reserving 
the right to require notice of intention to withdraw any part of time 
deposits. Rates of interest paid on all deposits shall be set by the 
Bank's board of directors (or, between regular meetings thereof, by a 
committee of directors selected by the board) or by the Bank President, 
if so authorized by the board. Unless otherwise specified by the board, 
a Bank President may delegate to any officer or employee of the Bank 
any authority he possesses under this section.


Sec. 969.3  Deposits in banks and trust companies.

    For purposes of determining compliance with the deposit liquidity 
requirement of section 11(g) of the Act, 12 U.S.C. 1431(g) the term 
deposits in banks or trust companies means:
    (1) A deposit in another Bank;
    (2) A demand account in a Federal Reserve Bank;
    (3) A deposit in, or a sale of federal funds to:
    (i) An insured depository institution, as defined in section 
2(12)(A) of the Act (12 U.S.C. 1422(12)(A)), that is designated by a 
Bank's board of directors;
    (ii) A trust company that is a member of the Federal Reserve System 
or insured by the Federal Deposit Insurance Corporation, and is 
designated by a Bank's board of directors; or
    (iii) A U.S. branch or agency of a foreign bank, as defined in the 
International Banking Act of 1978, as amended (12 U.S.C. 3101 et seq.), 
that is subject to the supervision of the Board of Governors of the 
Federal Reserve System, and is designated by a Bank's board of 
directors.

PART 975--COLLECTION, SETTLEMENT, AND PROCESSING OF PAYMENT 
INSTRUMENTS

    99. The authority citation for newly designated part 975 continues 
to read as follows:

    Authority: 12 U.S.C. 1430, 1431.


    100. 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''.

    101. Amend newly designated part 975 by removing the word 
``Board'', wherever it appears, and, in its place, adding the words 
``Finance Board''.

    102. 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.

    103. 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''.

    104. In subchapter I, add new parts 977 and 978 as follows:

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.


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.

PART 978--BANK REQUESTS FOR INFORMATION

Sec.
978.1   Definitions.
978.2   Scope.
978.3   Request for confidential information.
978.4   Form of request.
978.5   Storage of confidential information.
978.6   Access to confidential information.
978.7   Third party requests for confidential information.
978.8   Computer data.

    Authority: 12 U.S.C. 1422b(a), 1442.


Sec. 978.1  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.

[[Page 8267]]

Sec. 978.2  Scope.

    This part governs the procedure by which a Bank will request and 
receive confidential information pursuant to section 22 of the Act, 12 
U.S.C. 1442.


Sec. 978.3  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. 978.4  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, 
12 U.S.C. 1442, 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. 978.5  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. 978.6  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. 978.7  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. 978.5 or section 20 of the Act, 12 U.S.C. 1440.
    (2) The Finance Board shall keep all confidential information 
received under paragraph (d) of this section in strict confidence.


Sec. 978.8  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.

    105. In subchapter J, add and reserve a new part 980 as follows:

PART 980--[RESERVED]

PART 985--OPERATIONS OF THE OFFICE OF FINANCE

    106. The authority citation for newly designated part 985 continues 
to read as follows:

    Authority: 12 U.S.C. 1422b, 1431.


    107. Amend newly designated Sec. 985.1 by removing the definitions 
of the terms ``Bank'', ``Bank Act'', ``Consolidated obligation'' and 
``Finance Board''.

    108. 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).
    109. 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).

    110. 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 paragraph);
    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), (e)(1), (e)(2), (e)(3), (f)(1)(i) and 
(f)(1)(ii);
    g. Section 985.8 (heading), (a), (b)(introductory text), (c) and 
(d)(1);
    h. Section 985.9 (heading), (a)(1), (a)(2) and (b);
    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)(i), (f)(2)(iii), (f)(3) and (f)(5); and
    k. Section 985.12(c).

[[Page 8268]]

    111. Amend newly designated Sec. 985.7(c)(2) by removing the word 
``FHLBank''.

    112. 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''.

    113. 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)(intro)..................  Sec.  932.17........................  part 918
985.7(f)(2)(ii).....................  Section 932.17(a)(3) and (c)(1)(ii).  Section 918.3(a)(2)
985.7(f)(2)(iii)....................  Sec.  932.17........................  part 918
----------------------------------------------------------------------------------------------------------------

PART 987--BOOK-ENTRY PROCEDURE FOR CONSOLIDATED OBLIGATIONS

    114. The authority citation for newly designated part 987 continues 
to read as follows:

    Authority: 12 U.S.C. 1422a, 1422b, 1431, 1435.

    115. Amend newly designated Sec. 987.1 by:
    a. Removing paragraph designations (a) through (q); and
    b. Removing the definitions of the terms ``Federal Home Loan Bank 
Security'' and ``Finance Board''.

    116. Amend newly designated part 987 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.

    117. Amend newly designated part 987 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.

    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
----------------------------------------------------------------------------------------------------------------
987.1 (def. of Office of Finance)...  part 941............................  part 985
987.2(a)............................  part 912............................  part 987
987.2(b)............................  Sec.  912.4(c)(1)...................  Sec.  987.4(c)(1)
987.2(b)............................  Sec.  912.3.........................  Sec.  987.3
987.3(a)(introductory text).........  part 912............................  part 987
987.4(c)(2).........................  Sec.  912.2(b) or Sec.  912.3.......   Sec.  987.2(b) or Sec.  987.3
987.5(a)............................  Sec.  912.4(c)(1)...................  Sec.  987.4(c)(1)
987.5(a)............................  part 912............................  part 987
987.6(b)............................  part 912............................  part 987
987.8(a)............................  part 912............................  part 987
987.8(b)............................  part 912............................  part 987
987.9(a)............................  part 912............................  part 987
987.9(b)............................  part 912............................  part 987
----------------------------------------------------------------------------------------------------------------

PART 989--FINANCIAL STATEMENTS OF THE BANKS

    119. The authority citation for newly designated part 989 continues 
to read as follows:

    Authority: 12 U.S.C. 1422a, 1422b, 1431 and 1440.

    120. Amend newly designated part 989 by removing and reserving 
newly designated Sec. 989.1.

PART 995--FINANCING CORPORATION OPERATIONS

    121. The authority citation for newly designated part 995 continues 
to read as follows:

    Authority: 12 U.S.C. 1441(b)(8), (c) and (j).

    122. 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''.

    123. 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 words ``Federal Home Loan Bank'' and ``Federal Home 
Loan Banks'', wherever they appear, and adding, in their place, the 
words ``Bank'' and ``Banks'', respectively.

    124. 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''.

    125. 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 987
995.7(a)............................  Sec.  950.6.........................  Sec.  995.6
995.8(b)............................  Sec.  950.6.........................  Sec.  995.6

[[Page 8269]]

 
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

    126. The authority citation for newly designated part 996 is 
revised to read as follows:

    Authority: 12 U.S.C. 1422a, 1422b.


    127. Amend newly designated Sec. 996.1 by removing the words 
``Federal home loan banks'' and adding, in their place, the word 
``Banks''.

    128. Amend newly designated Sec. 996.2 by removing the word 
``bank'' and adding, in its place, the word ``Bank''.

    129. In subchapter L, add and reserve a new part 997, as follows:

PART 997--RESOLUTION FUNDING CORPORATION OBLIGATIONS OF THE BANKS 
[RESERVED]

    Dated: January 19, 2000.

    By the Board of Directors of the Federal Housing Finance Board.
Bruce A. Morrison,
Chairman.
[FR Doc. 00-3754 Filed 2-17-00; 8:45 am]
BILLING CODE 6725-01-P