[Federal Register Volume 78, Number 8 (Friday, January 11, 2013)]
[Rules and Regulations]
[Pages 2319-2331]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-31093]



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 Rules and Regulations
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  Federal Register / Vol. 78, No. 8 / Friday, January 11, 2013 / Rules 
and Regulations  

[[Page 2319]]


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FEDERAL HOUSING FINANCE BOARD

12 CFR Subchapters D and F Through L

FEDERAL HOUSING FINANCE AGENCY

12 CFR Parts 1201, 1225, 1228, 1229, 1231, 1233, 1235, 1236, 1237, 
1261, 1263, 1264, 1265, 1266, 1267, 1269, 1270, 1271, 1272, 1273, 
1274, 1278, 1281, 1282, 1290, 1291, and 1292

RIN 2590-AA56


Relocation of Regulations

AGENCY:  Federal Housing Finance Agency and Federal Housing Finance 
Board.

ACTION: Final rule.

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SUMMARY: The Federal Housing Finance Agency (FHFA) is relocating six 
Federal Housing Finance Board (Finance Board) regulations to new 
locations within the FHFA chapter of the Code of Federal Regulations 
(CFR). The regulations relate to: Community Investment Cash Advance 
Programs (CICA); Federal Home Loan Bank (Bank) collection, settlement, 
and processing of payment instruments; miscellaneous Bank authorities; 
Bank requests for information from the federal banking regulators; 
Financing Corporation (FICO) operations; and Bank assistance for the 
Resolution Funding Corporation (RefCorp). This final rule relocates 
those regulations without any substantive modification and removes and 
designates as reserved several empty subchapters in the Finance Board 
chapter of the CFR. This final rule also creates a general definitions 
section to be located at the beginning of the FHFA chapter to 
facilitate the use of common terms found throughout the chapter.

DATES: This rule is effective on February 11, 2013.

FOR FURTHER INFORMATION CONTACT: Michou H.M. Nguyen, Assistant General 
Counsel, (202) 649-3081, Office of General Counsel, Federal Housing 
Finance Agency, 400 7th Street SW., Washington, DC 20024. The telephone 
number for the Telecommunications Device for the Deaf is (800) 877-
8339.

SUPPLEMENTARY INFORMATION:

I. Background and Analysis

A. Creation of the Federal Housing Finance Agency and Recent 
Legislation

    Effective July 30, 2008, the Housing and Economic Recovery Act of 
2008 (HERA), Public Law 110-289, 122 Stat. 2654, created FHFA as a new 
independent agency of the Federal Government, and transferred to FHFA 
the supervisory and oversight responsibilities of the Office of Federal 
Housing Enterprise Oversight (OFHEO) over the Federal National Mortgage 
Association and the Federal Home Loan Mortgage Corporation 
(collectively, the Enterprises), the oversight responsibilities of the 
Finance Board over the Banks and the Office of Finance (OF) (which acts 
as the Banks' fiscal agent) and certain functions of the Department of 
Housing and Urban Development. See id. at section 1101, 122 Stat. 2661-
62. FHFA is responsible for ensuring that the Enterprises and the Banks 
operate in a safe and sound manner, including that they maintain 
adequate capital and internal controls, that their activities foster 
liquid, efficient, competitive and resilient national housing finance 
markets, and that they carry out their public policy missions through 
authorized activities. See id. at section 1102, 122 Stat. 2663-64. The 
Enterprises, the Banks, and the OF continue to operate under 
regulations promulgated by OFHEO and the Finance Board, respectively, 
until such regulations are superseded by regulations issued by FHFA. 
See id. at sections 1301, 1302, 1311, 1312, 122 Stat. 2794-95, 2797-98.

B. Considerations of Differences Between the Banks and the Enterprises

    Section 1201 of HERA requires the Director, when promulgating 
regulations ``of general applicability and future effect'' relating to 
the Banks, to consider the differences between the Banks and the 
Enterprises as they may relate to the Banks' cooperative ownership 
structure; mission of providing liquidity to members; affordable 
housing and community development mission; capital structure; and joint 
and several liability. See section 1201, Public Law No. 110-289, 122 
Stat. 2782-83 (amending 12 U.S.C. 4513(f)). That provision exempts from 
this requirement any Finance Board regulation that FHFA reissues as its 
own, which is what FHFA is doing in this rulemaking. For that reason, 
FHFA has determined that a section 1201 analysis is not required for 
this final rule.

C. Purpose of Rule

    The purpose of this rulemaking is to relocate certain of the 
Finance Board's regulations by adopting them as FHFA regulations 
without any substantive revisions. With respect to the general 
definition section, FHFA is replicating in its regulations (rather than 
relocating) the general definition provisions of the Finance Board 
regulations, 12 CFR part 900, with appropriate revisions to reflect the 
amendments made by HERA, but is leaving in place the Finance Board's 
general definitions, which are necessary for the remaining Finance 
Board regulations. For each of these relocated regulations, FHFA is 
replacing all references to the ``Finance Board,'' ``FHFB,'' and 
``board of directors'' of the Finance Board, with references to 
``FHFA,'' or the ``Director,'' as appropriate. FHFA also is updating 
the statutory authority citations for the regulations by replacing the 
citations to the rulemaking authority for the Finance Board with 
citations to its own rulemaking authorities. The following paragraphs 
briefly describe each of the Finance Board regulations that is being 
adopted as an FHFA regulation and the extent to which the regulation is 
being revised in the process.

D. Finance Board Part 952/FHFA Part 1292 (Community Investment Cash 
Advance Programs)

    In 1989, Congress amended the Federal Home Loan Bank Act (Bank Act) 
to authorize the Banks to offer Community Investment Cash Advance 
(CICA) programs, and to require the Banks to offer advances for housing 
and economic development activities at targeted income levels through 
the Community Investment Program (CIP). Part 952 of the Finance Board's 
regulations implemented the CICA

[[Page 2320]]

statutory provision by authorizing the Banks, in their discretion, to 
offer long-term advances or grants to members or housing associates to 
provide financing for economic development projects for specified 
targeted beneficiaries. Part 952 also codified the CIP statutory 
provisions under the CICA regulatory umbrella.
    FHFA is removing part 952 in its entirety from chapter 9 of title 
12 of the CFR (Finance Board Chapter) and relocating it to chapter 12 
of title 12 of the CFR (FHFA Chapter) as new part 1292. As part of the 
relocation, FHFA is updating cross references to FHFA regulations and 
updating a statutory cite in the authority section. Otherwise, the FHFA 
provision is identical to the Finance Board provision.

E. Finance Board Part 975/FHFA Part 1271--Subpart A (Collection, 
Settlement, and Processing of Payment Instruments)

    Part 975 implements section 11(e)(2) of the Bank Act, (12 U.S.C. 
1431(2)), which generally authorizes the Finance Board to permit the 
Banks to engage in the processing, collection, and settlement of 
negotiable and nonnegotiable items and instruments drawn on or issued 
by their members or institutions eligible to make application to be a 
member. FHFA is removing part 975 in its entirety and relocating it to 
the FHFA Chapter of the CFR as new subpart A of part 1271. As part of 
the relocation, FHFA is updating the definition of ``eligible 
institution'' to include community development financial institutions, 
which reflects recent amendments to the Bank Act authorizing such 
institutions to become Bank members. FHFA is also amending regulation 
text in new part 1271.6(c) (current part 975.6(c)) relating to FHFA's 
obligation to: (1) Review the cost of capital adjustment factor and 
prices for services authorized in new subpart A of part 1271 (current 
part 975); and (2) to publish annually the prices for such services 
provided by the Banks. The revision clarifies that FHFA's obligation to 
review and publish will arise only if the Banks resume providing the 
services described in subpart A of part 1271. Currently, the Banks do 
not provide any of these services. Lastly, FHFA also is correcting a 
statutory cross reference in that definition, to reflect other recent 
amendments to the Bank Act, and is making conforming changes to reflect 
the fact that this regulation is now established as a subpart of the 
FHFA regulations instead of a discrete part, as had been the case 
previously.

F. Finance Board Part 977/FHFA Part 1271--Subpart B (Miscellaneous Bank 
Authorities)

    Part 977 is a very short provision that governs inter-Bank 
borrowing and, under certain circumstances, allows Banks to act as 
trustee of any trust affecting the business of any member, any 
institution or group applying for membership or for insurance of 
accounts, or any group applying for a charter for a federal savings 
association. FHFA is repealing all of part 977 and is relocating its 
substantive provisions without any material change to a new subpart B 
of part 1271. In the relocated regulation, FHFA is striking a reference 
in Sec.  977.3 to an institution that is applying for ``insurance of 
accounts.'' That reference dates to regulations of the Federal Home 
Loan Bank Board, and would have referred to savings and loan 
associations that were applying for insurance of accounts from the 
former Federal Savings and Loan Insurance Corporation. As that term no 
longer has any relevance to the Banks, FHFA has not included it in the 
relocated provisions. FHFA is also striking a reference in Sec.  977.3 
to ``any group applying for a charter for a federal savings 
association.'' That provision also dates back to a time when the 
Federal Home Loan Bank Board chartered federal savings associations in 
addition to supervising the Banks. Neither FHFA nor the Banks has any 
regulatory authority over the chartering of federal savings 
associations. Therefore this outdated reference is being repealed.

G. Finance Board Part 978/FHFA Part 1271--Subpart C (Bank Requests for 
Information)

    Part 978 implements section 22 of the Bank Act, 12 U.S.C. 1442, 
which generally authorizes the Banks to have access to certain reports, 
records, or other information of the federal bank regulatory agencies 
relating to the condition of any Bank member or any institution with 
respect to which any Bank may have transactions. Part 978 establishes 
procedures for the Banks to request such information and sets forth 
requirements for maintaining the security and confidentiality of the 
information. FHFA is relocating part 978 in its entirety from the 
Finance Board Chapter to the FHFA Chapter as new subpart C of part 
1271. As part of the relocation, FHFA is making conforming changes to 
reflect the fact that this regulation is now a subpart instead of a 
discrete part, clarifying that the term ``confidential information'' is 
intended to refer to ``confidential regulatory information,'' and is 
removing an obsolete reference to the Office of Thrift Supervision.

H. Finance Board Part 995/FHFA Part 1271--Subpart D (Financing 
Corporation Operations)

    Part 995 implements the authority over the operations of FICO 
granted to the Finance Board by section 21 of the Bank Act. 12 U.S.C. 
1441. The regulation addresses FICO's general authority, procedures for 
its budget and operations, and record-keeping and reporting 
requirements. Except for the changes discussed in the following 
paragraph, FHFA is relocating part 995 in its entirety from the Finance 
Board Chapter to the FHFA Chapter as new subchapter E of part 1271.
    FHFA is removing all references to ``exit fees'' that appear in 
part 995. Repealed provisions of the Federal Deposit Insurance Act 
(FDIA) provided a mechanism for institutions to change their status 
from Bank Insurance Fund (BIF) member to Savings Association Insurance 
Fund (SAIF) member and vice versa. In connection with that conversion, 
institutions were charged an ``exit fee,'' which under certain 
circumstances would be transferred to FICO if FICO had exhausted all 
other sources of funding for interest payments on its obligations. 12 
U.S.C. 1815(d)(2)(E)(i)(II) (repealed). Part 995 provided a mechanism 
for FICO to request exit fee funds pursuant to the FDIA. With the 
elimination of SAIF, the conversion process was eliminated along with 
the exit fee and the associated portions of the FDIA. Therefore, there 
is no longer any need for the FICO regulations to define or refer to 
exit fees and FHFA is eliminating all such references, as well as 
obsolete related references to BIF deposits and SAIF deposits, as part 
of the relocation. FHFA also is not relocating section 995.8(b)(2)(ii), 
which by its term expired over ten years ago.\1\ FHFA is also updating 
and correcting in part 995 several erroneous or outdated cross 
references to statutes and other parts of the CFR.
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    \1\ This provision set a cap on the rate of FICO assessments for 
FDIC insured institution with respect to BIF assessable deposits and 
expired on December 31, 1999.
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I. Finance Board Part 996/FHFA Part 1271--Subpart E (Authority for Bank 
Assistance of the Resolution Funding Corporation)

    Part 996 implements section 21B of the Bank Act, which allows 
certain Bank personnel to perform specified functions on behalf of 
RefCorp. 12 U.S.C. 1441b(c)(6)(B). Part 996 also

[[Page 2321]]

permits a Bank to assist in the collection of RefCorp's assessment from 
SAIF members through the use of a direct debit system.\2\ In 
particular, section 996.3 requires that each Bank allow any SAIF member 
whose principal place of business is in its district to establish and 
maintain at least one demand deposit account for the purpose of 
facilitating the RefCorp assessment. With the elimination of SAIF some 
years ago, section 996.3 became obsolete and is being repealed, as is 
section 996.1, which is an empty reserved section. The remaining 
provision within part 996, section 996.2, is being relocated in its 
entirety from the Finance Board Chapter to the FHFA Chapter and being 
designated as new subpart E of part 1271.
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    \2\ In 1989, Congress established RefCorp as a vehicle to 
provide funding for the Resolution Trust Corporation to finance 
resolution of the savings and loan crisis. 12 U.S.C. 1441b(a), (b).
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J. FHFA Part 1201--Definitions

    As part of the relocation of parts 975, 977, 978, 995 and 996 of 
the Finance Board Chapter, FHFA has created a general definitions 
section, to be designated as new part 1201 of the FHFA Chapter. Part 
1201 contains terms commonly used throughout the FHFA Chapter, many of 
which are carried over from the general definitions section of the 
Finance Board regulation, at 12 CFR part 900. Part 1201 also contains a 
number of other commonly occurring terms from the FHFA regulations. As 
FHFA has adopted regulations since 2008, it typically has included 
within each regulation a separate section of defined terms for each 
part of its regulations, which has included commonly occurring terms as 
well as terms that are specific to particular parts of the CFR. As a 
result, commonly used terms such as ``FHFA,'' ``Finance Agency,'' 
``Director,'' and ``Enterprise'' are defined multiple times throughout 
the FHFA regulations, sometimes in different ways. To lessen the number 
of times the regulations define a particular term, and to ensure 
consistency in how a particular term is defined, FHFA is establishing 
part 1201 as a central location for the definition of common terms that 
are used throughout the regulations and is removing the definitions of 
those terms that appear in scattered sections throughout the FHFA 
regulations. Thus, in the definitions section of parts 1225, 1228, 
1229, 1231, 1233, 1235-1237, 1261, 1263-1267, 1269, 1270, 1272-1274, 
1278, 1281, 1282, 1290, and 1291 of the FHFA Chapter, FHFA is removing 
the definitions of common terms that will be defined instead in new 
part 1201. The creation of the new definitions section and removal of 
existing definitions do not result in any substantive change to any 
regulation in the FHFA Chapter, but only serve to facilitate the use of 
these common terms. For FHFA regulations that may be used by the 
public, such as the FOIA or Privacy Act provisions, FHFA has left the 
definitions of common terms as part of those regulations, as persons 
using those regulations may be less familiar with FHFA and its 
regulations generally and could benefit from having all relevant terms 
defined within the rules that implement the FOIA or Privacy Act 
provisions. Similarly, for certain terms that may be commonly used but 
that also may be important to understanding a particular part of the 
regulations, FHFA has included the term within the general definitions 
of part 1201 and has also left the term within the definitions section 
of the particular part of the regulations. Examples would include 
definitions of the terms ``advance'' and ``Office of Finance'' both of 
which are defined in part 1201 as well as in the advances regulation 
and the OF regulation.

K. Removal of Empty Subchapters

    After the relocation of parts 952, 975, 977, 978, 995, and 996 of 
the Finance Board Chapter, subchapters I and L of the Finance Board 
Chapter will be empty. In addition, subchapters D, F, H, J, and K of 
the Finance Board Chapter are currently empty. Therefore, in order to 
streamline the table of contents of the Finance Board Chapter, FHFA is 
removing the headings from each of these subchapters and designating 
each as reserved.

II. Notice and Public Participation

    FHFA finds that good cause exists for adopting these rule changes 
as a final rule without public notice and comment under 5 U.S.C. 
553(b)(B). No substantive modifications are being made to the 
regulations that are being relocated. The addition of the common 
definitions section also does not alter the substance of any existing 
regulation. Consequently, the final rule does not alter the rights or 
responsibilities of any party. Therefore, FHFA believes that public 
comments are unnecessary and not useful.

III. Paperwork Reduction Act

    The final rule does not contain any collections of information 
pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.). Therefore, FHFA has not submitted any information to the Office 
of Management and Budget for review.

IV. Regulatory Flexibility Act

    The final rule applies only to the Banks and the Enterprises, which 
do not come within the meaning of small entities as defined in the 
Regulatory Flexibility Act (RFA). See 5 U.S.C. 601(6). Therefore, in 
accordance with section 605(b) of the RFA, FHFA certifies that this 
final rule will not have a significant economic impact on a substantial 
number of small entities.

List of Subjects

12 CFR Parts 952, 975, 977, 978, 995, 996, 1271, 1290 and 1292

    Credit, Federal home loan banks, Reporting and recordkeeping 
requirements.

12 CFR Part 1201

    Administrative practice and procedure, Federal home loan banks, 
Government-sponsored enterprises, Office of Finance, Regulated 
entities.

12 CFR Part 1225

    Federal home loan banks, Federal National Mortgage Association, 
Federal Home Loan Mortgage Corporation, Capital, Filings, Minimum 
capital, Procedures, Standards.

12 CFR Part 1228

    Asset-backed securities, Builders, Condominium associations, 
Cooperative associations, Developers, Federal home loan banks, 
Government-sponsored enterprises, Homeowners' associations, Housing, 
Mortgages, Mortgage-backed securities, Nonprofit organizations, Private 
transfer fees.

12 CFR Part 1229

    Capital, Federal home loan banks, Government-sponsored enterprises, 
Reporting and recordkeeping requirements.

12 CFR Part 1231

    Golden parachutes, Government-sponsored enterprises, 
Indemnification.

12 CFR Part 1233

    Administrative practice and procedure, Federal home loan banks, 
Government-sponsored enterprises, Mortgages, Reporting and 
recordkeeping requirements.

12 CFR Part 1235

    Federal home loan banks, Government-sponsored enterprises, Records, 
Reporting and recordkeeping requirements.

[[Page 2322]]

12 CFR Part 1236

    Administrative practice and procedure, Federal home loan banks, 
Government-sponsored enterprises, Reporting and recordkeeping 
requirements.

12 CFR Part 1237

    Capital, Conservator, Federal home loan banks, Government-sponsored 
enterprises, Receiver.

12 CFR Part 1261

    Banks, Banking, Conflicts of interest, Elections, Ethical conduct, 
Federal home loan banks, Financial disclosure, Reporting and 
recordkeeping requirements.

12 CFR Part 1263

    Federal home loan banks, Reporting and recordkeeping requirements.

12 CFR Part 1265

    Community development, Credit, Federal home loan banks, Housing.

12 CFR Parts 1264, 1266, 1267, 1269, and 1272

    Community development, Credit, Federal home loan banks, Housing, 
Reporting and recordkeeping requirements.

12 CFR Part 1270

    Accounting, Federal home loan banks, Government securities.

12 CFR Part 1273

    Federal home loan banks, Securities.

12 CFR Part 1274

    Accounting, Federal home loan banks, Financial disclosure.

12 CFR Part 1278

    Banks, banking, Federal home loan banks, mergers.

12 CFR Part 1281

    Credit, Federal home loan banks, Housing, Mortgages, Reporting and 
recordkeeping requirements.

12 CFR Part 1282

    Mortgages, Reporting and recordkeeping requirements.

12 CFR Part 1291

    Community development, Credit, Federal home loan banks, Housing, 
Reporting and recordkeeping requirements.

Authority and Issuance

    Accordingly, for reasons stated in the preamble and under the 
authority of 12 U.S.C. 1430, 1431, 1432, 1441, 1442, 4511, and 4513, 
FHFA hereby amends chapters IX and XII of title 12 of the Code of 
Federal Regulations as follows:

Chapter IX--Federal Housing Finance Board

Subchapter D--[Removed and Reserved]

0
1. Subchapter D is removed and reserved.

Subchapter F--[Removed and Reserved]

0
2. Subchapter F is removed and reserved.

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

PART 952--[REMOVED]

0
3. Remove part 952.

Subchapter H--[Removed and Reserved]

0
4. Subchapter H is removed and reserved.

Subchapter I--[Removed and Reserved]

0
5. Subchapter I is removed and reserved.

Subchapter J--[Removed and Reserved]

0
6. Subchapter J is removed and reserved.

Subchapter K--[Removed and Reserved]

0
7. Subchapter K is removed and reserved.

Subchapter L--[Removed and Reserved]

0
8. Subchapter L is removed and reserved.

Chapter XII--Federal Housing Finance Agency

Subchapter A--Organization and Operations

0
9. Part 1201 is added to read as follows:

PART 1201--GENERAL DEFINITIONS APPLYING TO ALL FEDERAL HOUSING 
FINANCE AGENCY REGULATIONS

    Authority: 12 U.S.C. 4511(b), 4513(a), 4513(b).


Sec.  1201.1  Definitions.

    As used throughout this chapter, the following basic terms relating 
to the Federal Housing Finance Agency, the Federal National Mortgage 
Association, the Federal Home Loan Mortgage Corporation, the Federal 
Home Loan Banks, the Office of Finance, and related entities have the 
meanings set forth below, unless otherwise indicated in a particular 
subchapter, part, section, or paragraph:
    1934 Act means the Securities Exchange Act of 1934 (15 U.S.C. 78a 
et seq.).
    Acquired member assets or AMA means those assets that may be 
acquired by a Bank under part 955 of this title, or any successor 
thereto.
    Advance means a loan from a Bank that is:
    (1) Provided pursuant to a written agreement;
    (2) Supported by a note or other written evidence of the borrower's 
obligation; and
    (3) Fully secured by collateral in accordance with the Bank Act and 
part 1266 of this chapter.
    Affordable Housing Program or AHP means the Affordable Housing 
Program that each Bank is required to establish pursuant to section 
10(j) of the Bank Act (12 U.S.C. 1430(j)) and part 1291 of this 
chapter.
    Appropriate Federal banking agency has the meaning set forth in 
section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)) 
and, for federally-insured credit unions, means the NCUA.
    Appropriate state regulator means any state officer, agency, 
supervisor or other entity that has regulatory authority over, or is 
empowered to institute enforcement action against, a particular 
institution.
    Bank, written in title case, means a Federal Home Loan Bank 
established under section 12 of the Bank Act (12 U.S.C. 1432).
    Bank Act means the Federal Home Loan Bank Act, as amended (12 
U.S.C. 1421 et seq.).
    Bank System means the Federal Home Loan Bank System, consisting of 
the 12 Banks and the Office of Finance.
    Capital plan means the capital structure plan required for each 
Bank by section 6(b) of the Bank Act, as amended (12 U.S.C. 1426(b)).
    CIP means the Community Investment Program, an advance program 
under CICA required to be offered pursuant to section 10(i) of the Bank 
Act (12 U.S.C. 1430(i)).
    Community Investment Cash Advance or CICA means any advance made 
through a program offered by a Bank under section 10 of the Bank Act 
(12 U.S.C. 1430) and parts 1291 and 1292 of this chapter to provide 
funding for targeted community lending and affordable housing, 
including advances made under a Bank's Rural Development Funding (RDF) 
program, offered under section 10(j)(10) of the Bank Act (12 U.S.C. 
1430(j)(10)); a Bank's Urban Development Funding (UDF) program, offered 
under section 10(j)(10) of the Bank Act (12 U.S.C. 1430(j)(10)); a 
Bank's Affordable Housing Program (AHP), offered under section 10(j) of 
the Bank Act (12 U.S.C. 1430(j)); a Bank's Community Investment Program 
(CIP), offered under section 10(i) of the Bank Act (12 U.S.C.

[[Page 2323]]

1430(i)); or any other program offered by a Bank that meets the 
requirements of part 1292 of this chapter.
    Community lending means providing financing for economic 
development projects for targeted beneficiaries, and, for community 
financial institutions (as defined in Sec.  1263.1 of this chapter), 
purchasing or funding small business loans, small farm loans, small 
agri-business loans, or community development loans (as defined in 
Sec.  1266.1 of this chapter).
    Consolidated obligation or CO means any bond, debenture, or note on 
which the Banks are jointly and severally liable and which was issued 
under section 11 of the Bank Act (12 U.S.C. 1431) and any implementing 
regulations, whether or not such instrument was originally issued 
jointly by the Banks or by the Federal Housing Finance Board on behalf 
of the Banks.
    Data Reporting Manual or DRM means a manual issued by FHFA and 
amended from time to time containing reporting requirements for the 
Regulated Entities.
    Director, written in title case, means the Director of FHFA or his 
or her designee.
    Enterprise means Fannie Mae and Freddie Mac (collectively, 
Enterprises) and any affiliate thereof.
    Excess stock means that amount of a Bank's capital stock owned by a 
member or other institution in excess of that member's or other 
institution's minimum investment in capital stock required under the 
Bank's capital plan, the Bank Act, or FHFA's regulations, as 
applicable.
    Fannie Mae means the Federal National Mortgage Association and any 
affiliate thereof.
    FDIC means the Federal Deposit Insurance Corporation.
    FHFA means the Federal Housing Finance Agency established by 
Section 1311(a) of the Safety and Soundness Act. (12 U.S.C. 4511(a)).
    Financing Corporation or FICO means the Financing Corporation 
established and supervised by the Director under section 21 of the Bank 
Act (12 U.S.C. 1441) and part 1271 of this chapter.
    FRB means the Board of Governors of the Federal Reserve System.
    Freddie Mac means the Federal Home Loan Mortgage Corporation and 
any affiliate thereof.
    Generally Accepted Accounting Principles or GAAP means accounting 
principles generally accepted in the United States.
    Ginnie Mae means the Government National Mortgage Association.
    GLB Act means the Gramm-Leach-Bliley Act (Pub. L. 106-102 (1999)).
    HERA means the Housing and Economic Recovery Act of 2008, Public 
Law No. 110-289, 122 Stat. 2654.
    Housing associate means an entity that has been approved as a 
housing associate pursuant to part 1264 of this chapter.
    HUD means the United States Department of Housing and Urban 
Development.
    Member means an institution that has been approved for membership 
in a Bank and has purchased capital stock in the Bank in accordance 
with Sec. Sec.  1263.20 or 1263.24(b) of this chapter.
    NCUA means the National Credit Union Administration.
    NRSRO means a credit rating organization registered with the SEC as 
a nationally recognized statistical rating organization by the 
Securities and Exchange Commission.
    OCC means the Office of the Comptroller of the Currency.
    Office of Finance or OF means the Office of Finance, a joint office 
of the Banks established under part 1273 of this chapter and referenced 
in the Bank Act and the Safety and Soundness Act.
    Regulated Entity means the Federal Home Loan Mortgage Corporation 
and any affiliate thereof, the Federal National Mortgage Association 
and any affiliate thereof, and any Federal Home Loan Bank.
    Resolution Funding Corporation or REFCORP means the Resolution 
Funding Corporation established by section 21B of the Bank Act (12 
U.S.C. 1441b).
    Safety and Soundness Act means the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992, as amended (12 U.S.C. 4501 
et seq.).
    SBIC means a small business investment company formed pursuant to 
section 301 of the Small Business Investment Act (15 U.S.C. 681).
    SEC means the United States Securities and Exchange Commission.
    State means a state of the United States, American Samoa, the 
Commonwealth of the Northern Mariana Islands, the District of Columbia, 
Guam, Puerto Rico, or the United States Virgin Islands.

Subchapter B--Entity Regulations

PART 1225--MINIMUM CAPITAL--TEMPORARY INCREASE

0
10. The authority citation for part 1225 continues to read as follows:

    Authority: 12 U.S.C. 4513, 4526 and 4612.

Sec.  1225.2  [Amended]

0
11. Amend Sec.  1225.2 by removing the definitions for ``Enterprise'' 
and ``Regulated entity''.

PART 1228--RESTRICTIONS ON THE ACQUISITION OF, OR TAKING SECURITY 
INTERESTS IN MORTGAGES ON PROPERTIES ENCUMBERED BY CERTAIN PRIVATE 
TRANSFER FEE COVENANTS AND RELATED SECURITIES

0
12. The authority citation for part 1228 continues to read as follows:

    Authority: 12 U.S.C. 4511, 4513, 4526, 4616, 4617, 4631.


Sec.  1228.1  [Amended]


0
13. Amend Sec.  1228.1 by removing the definitions for ``Enterprises'', 
``Federal Home Loan Banks or Banks'', and ``Regulated entities''.

PART 1229--CAPITAL CLASSIFICATIONS AND PROMPT CORRECTIVE ACTION

0
14. The authority citation for part 1229 continues to read as follows:

    Authority: 12 U.S.C. 1426, 4513, 4526, 4613, 4614, 4615, 4616, 
4617, 4618, 4622, 4623.

Sec.  1229.1  [Amended]

0
15. Amend Sec.  1229.1 by removing the definitions for ``Bank'', ``Bank 
Act'', ``Director'', ``Consolidated obligations'', ``FHFA'', and 
``Safety and Soundness Act''.

PART 1231--GOLDEN PARACHUTE PAYMENTS

0
16. The authority citation for part 1229 continues to read as follows:

    Authority: 12 U.S.C. 4518(e).

Sec.  1231.1  [Amended]

0
17. Amend Sec.  1231.1 by removing the word ``Act'' and adding, in its 
place, the words ``Safety and Soundness Act''.


Sec.  1231.2  [Amended]

0
18. Amend Sec.  1231.2 by removing the definitions for ``Act'', 
``Director'', ``Enterprise'', ``Federal Home Loan Bank'', ``FHFA'', 
``HERA'', ``Office of Finance'', and ``Regulated entity''.

PART 1233--REPORTING OF FRAUDULENT FINANCIAL INSTRUMENTS

0
19. The authority citation for part 1233 continues to read as follows:

    Authority: 12 U.S.C. 4511, 4513, 4514, 4526, 4642.

Sec.  1233.2  [Amended]

0
20. Amend Sec.  1233.2 by removing the definitions for ``Bank or 
Federal Home Loan Bank'', ``Director'', ``Enterprise'',

[[Page 2324]]

``Regulated entity'', and ``Safety and Soundness Act''.

PART 1235--RECORD RETENTION FOR REGULATED ENTITIES AND OFFICE OF 
FINANCE

0
21. The authority citation for part 1235 continues to read as follows:

    Authority: 12 U.S.C. 4511(b), 4513(a), 4513b(a)(10) and (11), 
4526.

Sec.  1235.2  [Amended]

0
22. Amend Sec.  1235.2 by removing the definitions for ``Director'', 
``Federal Home Loan Bank'', ``FHFA'', ``Financing Corporation'', 
``Office of Finance'', ``Regulated entity'', and ``Safety and Soundness 
Act''.

PART 1236--PRUDENTIAL MANAGEMENT AND OPERATIONS STANDARDS

0
23. The authority citation for part 1236 continues to read as follows:

    Authority: 12 U.S.C. 4511, 4513(a) and (f), 4513b, and 4526.

Sec.  1236.2  [Amended]

0
24. Amend Sec.  1236.2 by removing the definition for ``FHFA''.

PART 1237--CONSERVATORSHIP AND RECEIVERSHIP

0
25. The authority citation for part 1237 continues to read as follows:

    Authority: 12 U.S.C. 4513b, 4526, 4617.

Sec.  1237.2  [Amended]

0
26. Amend Sec.  1237.2 by removing the definitions for ``Director'', 
``Enterprise'', and ``Regulated entity''.

Subchapter D--Federal Home Loan Banks

PART 1261--FEDERAL HOME LOAN BANK DIRECTORS

0
27. The authority citation for part 1261 continues to read as follows:

    Authority: 12 U.S.C. 1426, 1427, 1432, 4511 and 4526.

Sec.  1261.1  [Removed and Reserved]

0
28. Remove and reserve Sec.  1261.1.

PART 1263--MEMBERS OF THE BANKS

0
29. The authority citation for part 1263 continues to read as follows:

    Authority: 12 U.S.C. 1422, 1423, 1424, 1426, 1430, 1442, 4511, 
4513.

Sec.  1263.1  [Amended]

0
30. Amend Sec.  1263.1 by removing the definitions for ``Bank Act'' and 
``Director''.

PART 1264--FEDERAL HOME LOAN BANK HOUSING ASSOCIATES

0
31. The authority citation for part 1264 continues to read as follows:

    Authority: 12 U.S.C. 1430b, 4511, 4513 and 4526.


0
32. Amend part 1264 by removing the words ``the Act'', wherever they 
appear, and adding, in their place, the words ``the Bank Act''.


Sec.  1264.1  [Amended]

0
33. Amend Sec.  1264.1 by removing the definitions for ``Act'', 
``Bank'', and ``FHFA''.

PART 1265--CORE MISSION ACTIVITIES

0
34. The authority citation for part 1265 continues to read as follows:

    Authority: 12 U.S.C. 1430, 1430b, 1431, 4511, 4513 and 4526.

Sec.  1265.1  [Amended]

0
35. Amend Sec.  1265.1 by removing the definitions for ``Bank'' and 
``Acquired member assets or AMA''.

PART 1266--ADVANCES

0
36. The authority citation for part 1266 continues to read as follows:

    Authority: 12 U.S.C. 1426, 1429, 1430, 1430b, 1431, 4511(b), 
4513, 4526(a).

Sec.  1266.1  [Amended]

0
37. Amend Sec.  1266.1 by removing the definitions for ``Bank'', ``Bank 
Act'', and ``FHFA''.

PART 1267--FEDERAL HOME LOAN BANK INVESTMENTS

0
38. The authority citation for part 1267 continues to read as follows:

    Authority: 12 U.S.C. 1429, 1430, 1430b, 1431, 1436, 4511, 4513, 
4526.

Sec.  1267.1  [Amended]

0
39. Amend Sec.  1267.1 by removing the definitions for ``Bank'' and 
``Bank Act''.

PART 1269--STANDBY LETTERS OF CREDIT

0
40. The authority citation for part 1269 continues to read as follows:

    Authority: 12 U.S.C. 1429, 1430, 1430b, 1431, 4511, 4513 and 
4526.


Sec.  1269.1  [Amended]

0
41. Amend Sec.  1269.1 by removing the definitions for ``Act'' and 
``Bank''.


Sec.  1269.4  [Amended]

0
42. Amend Sec.  1269.4 in paragraph (c) by removing the words ``the 
Act'' and adding, in their place, the words ``the Bank Act''.

PART 1270--LIABILITIES

0
43. The authority citation for part 1269 continues to read as follows:

    Authority: 12 U.S.C. 1431, 1432, 1435, 4511, 4512, 4513, and 
4526.


Sec.  1270.1  [Amended]

0
44. Amend Sec.  1270.1 by removing the definitions for ``Bank'', ``Bank 
Act'', ``Director'', ``FHFA'', and ``Safety and Soundness Act''.

0
45. Part 1271 is added to read as follows:

PART 1271--MISCELLANEOUS FEDERAL HOME LOAN BANK OPERATIONS AND 
AUTHORITIES

Subpart A--Collection, Settlement, and Processing of Payment 
Instruments
Sec.
1271.1 Definitions.
1271.2 Authority and scope.
1271.3 General provisions.
1271.4 Incidental powers.
1271.5 Operations.
1271.6 Pricing of services.
1271.7 Rights, powers, responsibilities, duties, and liabilities.
Subpart B--Miscellaneous Bank Authorities
1271.10 Transfer of funds between Banks.
1271.11 Trustee powers.
Subpart C--Bank Requests for Information
1271.15 Definitions.
1271.16 Scope.
1271.17 Request for confidential regulatory information.
1271.18 Form of request.
1271.19 Storage of confidential regulatory information.
1271.20 Access to confidential regulatory information.
1271.21 Third party requests for confidential regulatory 
information.
1271.22 Computer data.
Subpart D--Financing Corporation Operations
1271.30 Definitions.
1271.31 General authority.
1271.32 Authority to establish investment policies and procedures.
1271.33 Book-entry procedure for Financing Corporation obligations.
1271.34 Bank and Office of Finance employees.
1271.35 Budget and expenses.
1271.36 Administrative expenses.
1271.37 Non-administrative expenses; assessments.

[[Page 2325]]

1271.38 Reports to FHFA.
1271.39 Review of books and records.
Subpart E--Authority for Bank Assistance of The Resolution Funding 
Corporation
1271.41 Bank employees.

    Authority: 12 U.S.C. 1430, 1431, 1432, 1441(b)(8), (c), (j), 
1442, 4511(b), 4513(a), 4526.

Subpart A--Collection, Settlement, and Processing of Payment 
Instruments


Sec.  1271.1  Definitions.

    Unless otherwise defined in this subpart, the terms used in this 
subpart shall conform, in the following order, to: Regulations of FHFA, 
the Uniform Commercial Code, regulations of the Federal Reserve System, 
and general banking usage. As used in this subpart:
    Account processing includes charging, crediting, and settling of 
member or eligible institution accounts, excluding individual customer 
accounts.
    Assets includes furniture and equipment, leasehold improvements, 
and capitalized start-up costs.
    Data communication means transmitting and receiving of data to or 
from Banks, Federal Reserve offices, clearinghouse associations, 
depository institutions or their service bureaus, and other direct 
sending entities; arrangement for delivery of information; and 
telephone inquiry service.
    Data processing includes capture, storage, and assembling of, and 
computation of, data from payment instruments received from Federal 
Reserve offices, Banks, clearinghouse associations, depository 
institutions, and other direct lending entities.
    Eligible institution means any institution that is eligible to make 
application to become a member of a Bank under section 4 of the Bank 
Act (12 U.S.C. 1424), including any building and loan association, 
savings and loan association, cooperative bank, homestead association, 
insurance company, savings bank, community development financial 
institution, or any insured depository institution (as defined in 
section 2(9) of the Bank Act (12 U.S.C. 1422(9))), regardless of 
whether the institution applies for or would be approved for 
membership.
    Issuance of forms means the designation and distribution of 
standardized forms for use in collection, processing, and settlement 
services.
    Presentment means a demand for acceptance or payment made upon the 
maker, acceptor, drawee or other payor by or on behalf of the holder, 
and may involve the use of electronic transmission of an instrument or 
item or transmission of data from the instrument or item by electronic 
or mechanical means.
    Statement packaging includes receiving statement information from 
members or eligible institutions or their service bureaus on respective 
customer cycle dates; printing statements; matching customer account 
statements; packaging the statements with appropriate items and 
informational materials, as authorized by individual members and 
eligible institutions, for distribution to their customers; sending the 
packages to the members or eligible institutions or mailing the 
packages directly to their customers.
    Storage services includes filing, storage, and truncation of items.
    Transportation of items includes transporting items from Federal 
Reserve offices, other Banks' clearinghouse associations, depository 
institutions, and other direct sending entities to a Bank; forwarding 
items to financial institutions after sorting; and forwarding cash 
items or return items to Federal Reserve offices and other sending 
entities.


Sec.  1271.2  Authority and scope.

    (a) Pursuant to section 11(e)(2) of the Bank Act (12 U.S.C. 
1431(e)(2)), FHFA has promulgated this subpart governing the 
collection, processing, and settlement, and services incidental 
thereto, of drafts, checks, and other negotiable and nonnegotiable 
items and instruments by Banks. Settlement, collection, and processing 
include the following activities as defined in this subpart: Account 
processing, data processing, data communication, issuance of forms, 
transportation of items, and storage services.
    (b) Any activity authorized by section 11(e)(2) of the Bank Act (12 
U.S.C. 1431(e)(2)) shall be governed by the provisions of this subpart.


Sec.  1271.3  General provisions.

    The Banks are authorized to:
    (a) Engage in, be agents or intermediaries for, or otherwise 
participate or assist in, the processing, collection, and settlement of 
checks, drafts, or any other negotiable or nonnegotiable items and 
instruments of payment drawn on eligible institutions or Bank members; 
and
    (b) Be drawees of checks, drafts, and other negotiable and 
nonnegotiable items and instruments issued by eligible institutions or 
Bank members.


Sec.  1271.4  Incidental powers.

    In connection with the collection, processing, and settlement of 
items and instruments drawn on or issued by eligible institutions or 
Bank members, a Bank may also perform the following services:
    (a) Statement packaging; and
    (b) Any other activity that FHFA shall, from time to time, after 
notice and comment, find necessary for the exercise of the authority of 
this subpart.


Sec.  1271.5  Operations.

    A Bank may utilize the services of a Federal Reserve Bank and may 
become a member or use the services of a clearinghouse, public or 
private financial institution, or agency in the exercise of any powers 
or functions under this subpart.


Sec.  1271.6  Pricing of services.

    (a) General. Banks shall charge for services authorized in this 
subpart in a manner consistent with the principles of section 11A(c) of 
the Federal Reserve Act (12 U.S.C. 248a(c)), as interpreted by this 
subpart.
    (b) Payment instrument account services. (1) In determining the 
fees for services provided under this subpart, a Bank must take into 
account all direct and indirect costs of providing the services.
    (2) Prices must reflect the imputed rate of return that would have 
been earned and the taxes that would have been paid if the Bank were a 
private corporation, by using a cost of capital adjustment factor 
applied to those assets used in providing services authorized under 
this subpart.
    (c) Review and publication. For any year during which any Bank 
actually provides services authorized by this subpart:
    (1) FHFA shall from time to time and at least annually review the 
cost of capital adjustment factor and review prices for services 
authorized in this subpart for compliance with the principles set forth 
in paragraphs (a) and (b) of this section, and
    (2) FHFA shall annually publish in the Federal Register all prices 
for Bank services authorized in this subpart except those for fees 
charged to an applicant for draws made by a beneficiary under a standby 
letter of credit.


Sec.  1271.7  Rights, powers, responsibilities, duties, and 
liabilities.

    To the extent it is not inconsistent with other provisions of this 
subpart, the Uniform Commercial Code governs the rights, powers, 
responsibilities, duties, and liabilities of Banks in the exercise of 
their authority under this subpart. For purposes of this paragraph, the 
term ``bank,'' as used in the Uniform Commercial Code and clearinghouse 
rules, includes Banks and their members and eligible institutions.

[[Page 2326]]

Subpart B--Miscellaneous Bank Authorities


Sec.  1271.10  Transfer of funds between Banks.

    Inter-Bank borrowing shall be through unsecured deposits bearing 
interest at rates negotiated between Banks.


Sec.  1271.11  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, 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.

Subpart C--Bank Requests for Information


Sec.  1271.15  Definitions.

    As used in this subpart:
    Confidential regulatory 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 Bank Act.
    Financial regulatory agency means any of the following:
    (1) The Department of the Treasury, including the Comptroller of 
the Currency;
    (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 regulatory 
information; or
    (2) The financial regulatory agency that supplied the particular 
confidential regulatory information to such Bank.


Sec.  1271.16  Scope.

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


Sec.  1271.17  Request for confidential regulatory information.

    A Bank shall make all requests for confidential regulatory 
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 subpart as well as any procedures of general 
applicability for requesting information promulgated by such financial 
regulatory agency. This subpart and its procedures may be supplemented 
by a confidentiality agreement between a Bank and a financial 
regulatory agency.


Sec.  1271.18  Form of request.

    A request by a Bank to a financial regulatory agency for 
confidential regulatory 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 Bank 
Act (12 U.S.C. 1442), as amended, and this regulation, and shall 
describe the confidential regulatory information requested and identify 
its intended use pursuant to the Bank Act. The request shall be signed 
or otherwise made by any duly authorized Bank officer or employee.


Sec.  1271.19  Storage of confidential regulatory information.

    Each Bank shall:
    (a) Store all identified confidential regulatory 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 regulatory information in 
its possession; and
    (c) Establish an internal review of its procedures for storing 
confidential regulatory information and maintaining its 
confidentiality, as a part of its internal audit process.


Sec.  1271.20  Access to confidential regulatory information.

    Each Bank shall ensure that access to the confidential regulatory 
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 regulatory information in 
accordance with the Bank's own procedures for maintaining the 
confidentiality of its members' privileged or non-public information.


Sec.  1271.21  Third party requests for confidential regulatory 
information.

    (a) General. In the event a Bank receives a request for 
confidential regulatory information in its possession from any third 
party, the Bank shall forward such request to the financial regulatory 
agency from which the confidential regulatory information was obtained.
    (b) Subpoena. In the event a Bank receives a subpoena for 
confidential regulatory 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 regulatory information was obtained, 
unless such notice is prohibited by applicable law. Except as limited 
in this subpart, the Bank may disclose confidential regulatory 
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 regulatory 
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 regulatory 
information to any third party. A Bank shall refer all third party 
requests for such confidential regulatory information to the financial 
regulatory agency that released the confidential regulatory information 
to the Bank.
    (d) Disclosure to FHFA. (1) Neither this subpart nor any 
confidentiality agreement executed between a Bank and a financial 
regulatory agency shall prevent a Bank from disclosing confidential 
regulatory information in its possession to FHFA whenever disclosure is 
necessary to accomplish FHFA's supervision of Bank membership 
applications or Bank director eligibility issues, or disclosing any 
confidential regulatory information in its possession if such 
disclosure is made pursuant to an audit conducted pursuant to Sec.  
1271.19 or section 20 of the Bank Act (12 U.S.C. 1440).
    (2) FHFA shall keep all confidential regulatory information 
received under this paragraph (d) in strict confidence.


Sec.  1271.22  Computer data.

    Nothing in this subpart shall preclude a Bank from arranging with 
any financial regulatory agency to transmit or allow access to 
confidential regulatory information with the consent of such agency by 
means of an

[[Page 2327]]

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.

Subpart D--Financing Corporation Operations


Sec.  1271.30  Definitions.

    As used in this subpart:
    Administrative expenses. (1) Include general office and operating 
expenses such as telephone and photocopy charges, printing, legal, and 
professional fees, postage, courier services, and office supplies; and
    (2) Do not include any form of employee compensation, custodian 
fees, issuance costs, or any interest on (and any redemption premium 
with respect to) any Financing Corporation obligations.
    Custodian fees means any fee incurred by the Financing Corporation 
in connection with the transfer of any security to, or maintenance of 
any security in, the segregated account established under section 
21(g)(2) of the Bank Act (12 U.S.C. 1441(g)(2)), and any other expense 
incurred by the Financing Corporation in connection with the 
establishment or maintenance of such account.
    Directorate means the board established under section 21(b) of the 
Bank Act (12 U.S.C. 1441(b)) to manage the Financing Corporation.
    Insured depository institution has the same meaning as in section 3 
of the Federal Deposit Insurance Act (12 U.S.C. 1813).
    Issuance costs means issuance fees and commissions incurred by the 
Financing Corporation in connection with the issuance or servicing of 
Financing Corporation obligations, including legal and accounting 
expenses, trustee, fiscal, and paying agent charges, securities 
processing charges, joint collection agent charges, advertising 
expenses, and costs incurred in connection with preparing and printing 
offering materials to the extent the Financing Corporation incurs such 
costs in connection with issuing any obligations.
    Non-administrative expenses means custodian fees, issuance costs, 
and interest on Financing Corporation obligations.
    Obligations means debentures, bonds, and similar debt securities 
issued by the Financing Corporation under sections 21(c)(3) and (e) of 
the Bank Act (12 U.S.C. 1441(c)(3) and (e)).
    Receivership proceeds means the liquidating dividends and payments 
made on claims received by the Federal Savings and Loan Insurance 
Corporation Resolution Fund established under section 11A of the 
Federal Deposit Insurance Act (12 U.S.C. 1821a) from receiverships, 
that are not required by the Resolution Funding Corporation to provide 
funds for the Funding Corporation Principal Fund established under 
section 21B of the Bank Act (12 U.S.C. 1441b).


Sec.  1271.31  General authority.

    Subject to the limitations and interpretations in this subpart and 
such orders and directions as FHFA may prescribe, the Financing 
Corporation shall have authority to exercise all powers and authorities 
granted to it by the Bank Act and by its charter and bylaws regardless 
of whether the powers and authorities are specifically implemented in 
regulation.


Sec.  1271.32  Authority to establish investment policies and 
procedures.

    The Directorate shall have authority to establish investment 
policies and procedures with respect to Financing Corporation funds 
provided that the investment policies and procedures are consistent 
with the requirements of section 21(g) of the Bank Act (12 U.S.C. 
1441(g)). The Directorate shall promptly notify FHFA in writing of any 
changes to the investment policies and procedures.


Sec.  1271.33  Book-entry procedure for Financing Corporation 
obligations.

    (a) Authority. Any Federal Reserve Bank shall have authority to 
apply book-entry procedure to Financing Corporation obligations.
    (b) Procedure. The book-entry procedure for Financing Corporation 
obligations shall be governed by the book-entry procedure established 
for Bank consolidated obligations, codified at part 1270 of this 
chapter. Wherever the terms ``Bank(s),'' ``consolidated obligation(s)'' 
or ``Book-entry consolidated obligation(s)'' appear in part 1270, the 
terms shall be construed also to mean ``Financing Corporation,'' 
``Financing Corporation obligation(s),'' or ``Book-entry Financing 
Corporation obligation(s),'' respectively, if appropriate to accomplish 
the purposes of this section.


Sec.  1271.34  Bank and Office of Finance employees.

    Without further approval of FHFA, the Financing Corporation shall 
have authority to utilize the officers, employees, or agents of any 
Bank or the Office of Finance in such manner as may be necessary to 
carry out its functions.


Sec.  1271.35  Budget and expenses.

    (a) Directorate approval. The Financing Corporation shall submit 
annually to the Directorate for approval, a budget of proposed 
expenditures for the next calendar year that includes administrative 
and non-administrative expenses.
    (b) FHFA approval. The Directorate shall submit annually to FHFA 
for approval, the budget of the Financing Corporation's proposed 
expenditures it approved pursuant to paragraph (a) of this section.
    (c) Spending limitation. The Financing Corporation shall not exceed 
the amount provided for in the annual budget approved by FHFA pursuant 
to paragraph (b) of this section, or as it may be amended by the 
Directorate within limits set by FHFA.
    (d) Amended budgets. Whenever the Financing Corporation projects or 
anticipates that it will incur expenditures, other than interest on 
Financing Corporation obligations, that exceed the amount provided for 
in the annual budget approved by FHFA or the Directorate pursuant to 
paragraph (b) or (c) of this section, the Financing Corporation shall 
submit an amended annual budget to the Directorate for approval, and 
the Directorate shall submit such amended budget to FHFA for approval.


Sec.  1271.36  Administrative expenses.

    (a) Payment by Banks. The Banks shall pay all administrative 
expenses of the Financing Corporation approved pursuant to Sec.  
1271.35.
    (b) Amount. The Financing Corporation shall determine the amount of 
administrative expenses each Bank shall pay in the manner provided by 
section 21(b)(7)(B) of the Bank Act (12 U.S.C. 1441(b)(7)(B)). The 
Financing Corporation shall bill each Bank for such amount 
periodically.
    (c) Adjustments. The Financing Corporation shall adjust the amount 
of administrative expenses the Banks are required to pay in any 
calendar year pursuant to paragraphs (a) and (b) of this section, by 
deducting any funds that remain from the amount paid by the Banks for 
administrative expenses in the prior calendar year.


Sec.  1271.37  Non-administrative expenses; assessments.

    (a) Interest expenses. The Financing Corporation shall determine 
anticipated interest expenses on its obligations at least semiannually.
    (b) Assessments on insured depository institutions--(1) Authority. 
To provide

[[Page 2328]]

sufficient funds to pay the non-administrative expenses of the 
Financing Corporation approved under Sec.  1271.35, the Financing 
Corporation shall, with the approval of the board of directors of the 
FDIC, assess against each insured depository institution an assessment 
in the same manner as assessments are made by the FDIC under section 7 
of the Federal Deposit Insurance Act (12 U.S.C. 1817).
    (2) Assessment rate--(i) Determination. The Financing Corporation 
at least semiannually shall establish an assessment rate formula, which 
may include rounding methodology, to determine the rate or rates of the 
assessment it will assess against insured depository institutions 
pursuant to section 21(f)(2) of the Bank Act (12 U.S.C. 1441(f)(2)) and 
paragraph (b)(1) of this section.
    (ii) Notice. The Financing Corporation shall notify the FDIC and 
the collection agent, if any, of the formula established under 
paragraph (b)(2)(i) of this section.
    (3) Collecting assessments--(i) Collection agent. The Financing 
Corporation shall have authority to collect assessments made under 
section 21(f)(2) of the Bank Act (12 U.S.C. 1441(f)(2)) and paragraph 
(b)(1) of this section through a collection agent of its choosing.
    (ii) Accounts. Each Bank shall permit any insured depository 
institution whose principal place of business is in its district to 
establish and maintain at least one demand deposit account to 
facilitate collection of the assessments made under section 21(f)(2) of 
the Bank Act (12 U.S.C. 1441(f)(2)) and paragraph (b)(1) of this 
section.
    (c) Receivership proceeds--(1) Authority. To the extent the amounts 
collected under paragraph (b) of this section are insufficient to pay 
the non-administrative expenses of the Financing Corporation approved 
under Sec.  1271.35, the Financing Corporation shall have authority to 
require the FDIC to transfer receivership proceeds to the Financing 
Corporation in accordance with section 21(f)(3) of the Bank Act (12 
U.S.C. 1441(f)(3)).
    (2) Procedure. The Directorate shall request in writing that the 
FDIC transfer the receivership proceeds to the Financing Corporation. 
Such request shall specify the estimated amount of funds required to 
pay the non-administrative expenses of the Financing Corporation 
approved under Sec.  1271.35.


Sec.  1271.38  Reports to FHFA.

    The Financing Corporation shall file such reports as FHFA shall 
direct.


Sec.  1271.39  Review of books and records.

    FHFA shall examine the Financing Corporation at least annually to 
determine whether the Financing Corporation is performing its functions 
in accordance with the requirements of section 21 of the Bank Act (12 
U.S.C. 1441) and this subpart.

Subpart E--Authority for Bank Assistance of the Resolution Funding 
Corporation


Sec.  1271.41  Bank employees.

    Upon the request of the Directorate of the Resolution Funding 
Corporation, established pursuant to section 21B(b) of the Bank Act (12 
U.S.C. 1441b(b)), officers, employees, or agents of the Banks are 
authorized to act for and on behalf of the Resolution Funding 
Corporation in such manner as may be necessary to carry out the 
functions of the Resolution Funding Corporation as provided in section 
21B(c)(6)(B) of the Bank Act (12 U.S.C. 1441b(c)(6)(B)).

PART 1272--NEW BUSINESS ACTIVITIES

0
46. The authority citation for part 1272 continues to read as follows:

    Authority: 12 U.S.C. 1431(a), 1432(a), 4511(b), 4513, 4526(a).


Sec.  1272.1  [Amended]

0
47. Amend Sec.  1272.1 by removing the definitions for ``Bank'', ``Bank 
Act'', and ``FHFA''.

PART 1273--OFFICE OF FINANCE

0
48. The authority citation for part 1273 continues to read as follows:

    Authority:  12 U.S.C. 1431, 1440, 4511(b), 4513, 4514(a), 
4526(a).


Sec.  1273.1  [Amended]

0
49. Amend Sec.  1273.1 by removing the definitions for ``Bank'', ``Bank 
Act'', ``FHFA'', and ``Safety and Soundness Act''.

PART 1274--FINANCIAL STATEMENTS OF THE BANKS

0
50. The authority citation for part 1274 continues to read as follows:

    Authority:  12 U.S.C. 1426, 1431, 4511(b), 4513, 4526(a).


Sec.  1274.1  [Amended]

0
51. Amend Sec.  1274.1 by removing the definitions for ``Bank'', 
``FHFA'', and ``Office of Finance or OF''.

PART 1278--VOLUNTARY MERGERS OF FEDERAL HOME LOAN BANKS

0
52. The authority citation for part 1278 continues to read as follows:

    Authority:  12 U.S.C. 1432(a), 1446, 4511.


Sec.  1278.1  [Amended]

0
53. Amend Sec.  1278.1 by removing the definitions for ``Bank'', ``Bank 
Act'', ``Director'', ``FHFA'', and ``Office of Finance''.

Subchapter E--Housing Goals and Mission

PART 1281--FEDERAL HOME LOAN BANK HOUSING GOALS

0
54. The authority citation for part 1281 continues to read as follows:

    Authority:  12 U.S.C. 1430c.


Sec.  1281.1  [Amended]

0
55. Amend Sec.  1281.1 by removing the definitions for ``Bank'', ``Bank 
Act'', ``Director'', and ``FHFA''.

PART 1282--ENTERPRISE HOUSING GOALS AND MISSION

0
56. The authority citation for part 1282 continues to read as follows:

    Authority:  12 U.S.C. 4501, 4502, 4511, 4513, 4526, 4561-4566.


Sec.  1282.1  [Amended]

0
57. Amend Sec.  1282.1 by removing the definitions for ``Director'', 
``Enterprise'', ``Fannie Mae'', ``FHFA'', ``Freddie Mac'', ``Ginnie 
Mae'' and ``Safety and Soundness Act''.

PART 1290--COMMUNITY SUPPORT REQUIREMENTS

0
58. The authority citation for part 1290 continues to read as follows:

    Authority:  12 U.S.C. 1430(g), 4511, 4513.


Sec.  1290.1  [Amended]

0
59. Amend Sec.  1290.1 by removing the definitions for ``Bank'' and 
``FHFA''.

PART 1291--FEDERAL HOME LOAN BANKS' AFFORDABLE HOUSING PROGRAM

0
60. The authority citation for part 1291 continues to read as follows:

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


Sec.  1291.1  [Amended]

0
61. Amend Sec.  1291.1 by removing the definitions for ``Director'' and 
``FHFA''.

0
62. Part 1292 is added to read as follows:

[[Page 2329]]

PART 1292--COMMUNITY INVESTMENT CASH ADVANCE PROGRAMS

Sec.
1292.1 Definitions.
1292.2 Scope.
1292.3 Purpose.
1292.4 Targeted Community Lending Plan.
1292.5 Community Investment Cash Advance Programs.
1292.6 Reporting.
1292.7 Documentation.

    Authority:  12 U.S.C. 1430, 4511(b)(2).


Sec.  1292.1  Definitions.

    As used in this part:
    Champion Community means a community which developed a strategic 
plan and applied for designation by either the Secretary of HUD or the 
Secretary of the USDA as an Empowerment Zone or Enterprise Community, 
but was designated a Champion Community.
    CICA program or Community Investment Cash Advance program means:
    (1) A Bank's AHP;
    (2) A Bank's CIP;
    (3) A Bank's RDF program or UDF program using any combination of 
the targeted beneficiaries and targeted income levels specified in 
Sec.  1292.1 of this part; and
    (4) Any other advance or grant program offered by a Bank using 
targeted beneficiaries and targeted income levels other than those 
specified in Sec.  1292.1 of this part, established by the Bank with 
the prior approval of FHFA.
    Economic development projects means:
    (1) Commercial, industrial, manufacturing, social service, and 
public facility projects and activities; and
    (2) Public or private infrastructure projects, such as roads, 
utilities, and sewers.
    Family means one or more persons living in the same dwelling unit.
    Housing projects means projects or activities that involve the 
purchase, construction, rehabilitation or refinancing (subject to Sec.  
1292.5(c) of this part) of, or predevelopment financing for:
    (1) Individual owner-occupied housing units, each of which is 
purchased or owned by a family with an income at or below the targeted 
income level;
    (2) Projects involving multiple units of owner-occupied housing in 
which at least 51% of the units are owned or are intended to be 
purchased by families with incomes at or below the targeted income 
level;
    (3) Rental housing where at least 51% of the units in the project 
are occupied by, or the rents are affordable to, families with incomes 
at or below the targeted income level; or
    (4) Manufactured housing parks where:
    (i) At least 51% of the units in the project are occupied by, or 
the rents are affordable to, families with incomes at or below the 
targeted income level; or
    (ii) The project is located in a neighborhood with a median income 
at or below the targeted income level.
    Median income for the area. (1) Owner-occupied housing projects and 
economic development projects. For purposes of owner-occupied housing 
projects and economic development projects, median income for the area 
means one or more of the following, as determined by the Bank:
    (i) The median income for the area, as published annually by HUD;
    (ii) The median income for the area obtained from the Federal 
Financial Institutions Examination Council;
    (iii) The applicable median family income, as determined under 26 
U.S.C. 143(f) (Mortgage Revenue Bonds) and published by a State agency 
or instrumentality;
    (iv) The median income for the area, as published by the USDA; or
    (v) The median income for the area obtained from another public 
entity or a private source and approved by the Director, at the request 
of a Bank, for use under the Bank's CICA programs.
    (2) Rental housing projects. For purposes of rental housing 
projects, median income for the area means one or more of the 
following, as determined by the Bank:
    (i) The median income for the area, as published annually by HUD; 
or
    (ii) The median income for the area obtained from the Federal 
Financial Institutions Examination Council;
    (iii) The median income for the area obtained from another public 
entity or a private source and approved by the Director, at the request 
of a Bank, for use under the Bank's CICA programs.
    MSA means a Metropolitan Statistical Area as designated by the 
Office of Management and Budget.
    Neighborhood means:
    (1) A census tract or block numbering area;
    (2) A unit of local government with a population of 25,000 or less;
    (3) A rural county; or
    (4) A geographic location designated in comprehensive plans, 
ordinances, or other local documents as a neighborhood, village, or 
similar geographic designation that is within the boundary of but does 
not encompass the entire area of a unit of general local government.
    Provide financing means:
    (1) Originating loans;
    (2) Purchasing a participation interest, or providing financing to 
participate, in a loan consortium for CICA-eligible housing or economic 
development projects;
    (3) Making loans to entities that, in turn, make loans for CICA-
eligible housing or economic development projects;
    (4) Purchasing mortgage revenue bonds or mortgage-backed 
securities, where all of the loans financed by such bonds and all of 
the loans backing such securities, respectively, meet the eligibility 
requirements of the CICA program under which the member or housing 
associate borrower receives funding;
    (5) Creating or maintaining a secondary market for loans, where all 
such loans are mortgage loans meeting the eligibility requirements of 
the CICA program under which the member or housing associate borrower 
receives funding;
    (6) Originating CICA-eligible loans within 3 months prior to 
receiving the CICA funding; and
    (7) Purchasing low-income housing tax credits.
    RDF or Rural Development Funding program means an advance or grant 
program offered by a Bank for targeted community lending in rural 
areas.
    Rural area means:
    (1) A unit of general local government with a population of 25,000 
or less;
    (2) An unincorporated area outside an MSA; or
    (3) An unincorporated area within an MSA that qualifies for housing 
or economic development assistance from the USDA.
    Small business means a ``small business concern,'' as that term is 
defined by section 3(a) of the Small Business Act (15 U.S.C. 632(a)) 
and implemented by the Small Business Administration under 13 CFR part 
121, or any successor provisions.
    Targeted beneficiaries means beneficiaries determined by the 
geographical area in which a project is located (Geographically Defined 
Beneficiaries), by the individuals who benefit from a project as 
employees or service recipients (Individual Beneficiaries), or by the 
nature of the project itself (Activity Beneficiaries), as follows:
    (1) Geographically Defined Beneficiaries:
    (i) The project is located in a neighborhood with a median income 
at or below the targeted income level;

[[Page 2330]]

    (ii) The project is located in a rural Champion Community, or a 
rural Empowerment Zone or rural Enterprise Community, as designated by 
the Secretary of the USDA;
    (iii) The project is located in an urban Champion Community, or an 
urban Empowerment Zone or urban Enterprise Community, as designated by 
the Secretary of HUD;
    (iv) The project is located in an Indian area, as defined by the 
Native American Housing Assistance and Self-Determination Act of 1996 
(25 U.S.C. 4101 et seq.), Alaskan Native Village, or Native Hawaiian 
Home Land;
    (v) The project is located in an area and involves a property 
eligible for a Brownfield Tax Credit;
    (vi) The project is located in an area affected by a military base 
closing and is a ``community in the vicinity of the installation'' as 
defined by the Department of Defense at 32 CFR part 176;
    (vii) The project is located in a designated community under the 
Community Adjustment and Investment Program as defined under 22 U.S.C. 
290m-2;
    (viii) The project is located in a Federally declared disaster 
area; or
    (ix) The project is located in a state declared disaster area, or 
other area that qualifies for assistance under another Federal or State 
targeted economic development program, approved by FHFA.
    (2) Individual Beneficiaries:
    (i) The annual salaries for at least 51% of the permanent full- and 
part-time jobs, computed on a full-time equivalent basis, created or 
retained by the project, other than construction jobs, are at or below 
the targeted income level; or
    (ii) At least 51% of the families who otherwise benefit from (other 
than through employment), or are provided services by, the project have 
incomes at or below the targeted income level.
    (3) Activity Beneficiaries: Projects that qualify as small 
businesses.
    (4) Other Targeted Beneficiaries. A Bank may designate, with the 
prior approval of FHFA, other targeted beneficiaries for its targeted 
community lending.
    (5) Only targeted beneficiaries identified in paragraphs (1)(i) 
through (1)(iv), and (2)(i) and (2)(ii) of this definition are eligible 
for CIP advances.
    Targeted community lending means providing financing for economic 
development projects for targeted beneficiaries.
    Targeted income level means:
    (1) For rural areas, incomes at or below 115 percent of the median 
income for the area, as adjusted for family size in accordance with the 
methodology of the applicable area median income standard or, at the 
option of the Bank, for a family of four;
    (2) For urban areas, incomes at or below 100 percent of the median 
income for the area, as adjusted for family size in accordance with the 
methodology of the applicable area median income standard or, at the 
option of the Bank, for a family of four;
    (3) For advances provided under CIP:
    (i) For economic development projects, incomes at or below 80 
percent of the median income for the area; or
    (ii) For housing projects, incomes at or below 115 percent of the 
median income for the area, both as adjusted for family size in 
accordance with the methodology of the applicable area median income 
standard or, at the option of the Bank, for a family of four; or
    (4) For advances or grants provided under any other CICA program 
offered by a Bank, a targeted income level established by the Bank with 
the prior approval of FHFA.
    UDF program or Urban Development Funding program means an advance 
or grant program offered by a Bank for targeted community lending in 
urban areas.
    Urban area means:
    (1) A unit of general local government with a population of more 
than 25,000; or
    (2) An unincorporated area within an MSA that does not qualify for 
housing or economic development assistance from the USDA.
    USDA means the United States Department of Agriculture.


Sec.  1292.2  Scope.

    Section 10(j)(10) of the Bank Act (12 U.S.C. 1430(j)(10)) 
authorizes the Banks to offer Community Investment Cash Advance (CICA) 
programs. This part establishes requirements for all CICA programs 
offered by a Bank, except for a Bank's Affordable Housing Program 
(AHP), which is governed specifically by part 1291 of this chapter.


Sec.  1292.3  Purpose.

    The purpose of this part is to identify targeted community lending 
projects that the Banks may support through the establishment of CICA 
programs under section 10(j)(10) of the Bank Act (12 U.S.C. 
1430(j)(10)). Pursuant to this part, a Bank may offer RDF or UDF 
programs, or both, for targeted community lending using the targeted 
beneficiaries or targeted income levels specified in Sec.  1292.1, 
without prior FHFA approval. A Bank also may offer other CICA programs 
for targeted community lending using targeted beneficiaries and 
targeted income levels other than those specified in Sec.  1292.1, 
established by the Bank with the prior approval of FHFA. In addition, a 
Bank shall offer CICA programs under section 10(i) of the Bank Act (12 
U.S.C. 1430(i)) (Community Investment Program (CIP)) and section 10(j) 
of the Bank Act (12 U.S.C. 1430(j)) (AHP). A Bank may provide advances 
or grants under its CICA programs except for CIP programs, under which 
a Bank may only provide advances.


Sec.  1292.4  Targeted Community Lending Plan.

    Each Bank shall develop and adopt an annual Targeted Community 
Lending Plan pursuant to Sec.  1290.6 of this chapter.


Sec.  1292.5  Community Investment Cash Advance Programs.

    (a) In general. (1) Each Bank shall offer an AHP in accordance with 
part 1291 of this chapter.
    (2) Each Bank shall offer a CIP to provide financing for housing 
projects and for eligible targeted community lending at the appropriate 
targeted income levels.
    (3) Each Bank may offer RDF programs or UDF programs, or both, for 
targeted community lending using the targeted beneficiaries or targeted 
income levels specified in Sec.  1292.1 of this part, without prior 
FHFA approval.
    (4) Each Bank may offer CICA programs for targeted community 
lending using targeted beneficiaries and targeted income levels other 
than those specified in Sec.  1292.1 of this part, established by the 
Bank with the prior approval of FHFA.
    (b) Mixed-use projects. (1) For projects funded under CICA programs 
other than CIP, involving a combination of housing projects and 
economic development projects, only the economic development components 
of the project must meet the appropriate targeted income level for the 
respective CICA program.
    (2) For projects funded under CIP, both the housing and economic 
development components of the project must meet the appropriate 
targeted income levels.
    (c) Refinancing. CICA funding other than AHP may be used to 
refinance economic development projects and housing projects, provided 
that any equity proceeds of the refinancing of rental housing and 
manufactured housing parks are used to rehabilitate the projects or to 
preserve affordability for current residents.
    (d) Pricing and Availability of advances--(1) Advances to members.

[[Page 2331]]

For CICA programs other than AHP and CIP, a Bank shall price advances 
to members as provided in Sec.  1266.5 of this chapter, and may price 
such advances at rates below the price of advances of similar amounts, 
maturities and terms made pursuant to section 10(a) of the Bank Act. 
(12 U.S.C. 1430(a)).
    (2) Pricing of CIP advances. The price of advances made under CIP 
shall not exceed the Bank's cost of issuing consolidated obligations of 
comparable maturity, taking into account reasonable administrative 
costs.
    (3) Pricing of AHP advances. A Bank shall price advances made under 
AHP in accordance with parts 1266 and 1291 of this chapter.
    (4) Advances to housing associate borrowers. (i) A Bank may offer 
advances under CICA programs to housing associate borrowers at the 
Bank's option, except for AHP and CIP, which are available only to 
members.
    (ii) A Bank shall price advances to housing associate borrowers as 
provided in Sec.  1266.17 of this chapter, and may price such advances 
at rates below the price of advances of similar amounts, maturities and 
terms made pursuant to section 10b of the Bank Act. (12 U.S.C. 1430b).
    (5) Pricing pass-through. A Bank may require that borrowers 
receiving advances made under CICA programs pass through the benefit of 
any price reduction from regular advance pricing to their borrowers.
    (6) Discount Fund. (i) A Bank may establish a Discount Fund which 
the Bank may use to reduce the price of CIP or other advances made 
under CICA programs below the advance prices provided for by this part.
    (ii) Price reductions made through the Discount Fund shall be made 
in accordance with a fair distribution scheme.


Sec.  1292.6  Reporting.

    (a) Each Bank annually shall provide to FHFA, on or before January 
31, a Targeted Community Lending Plan.
    (b) Each Bank shall provide such other reports concerning its CICA 
programs as FHHA may request from time to time.


Sec.  1292.7  Documentation.

    (a) A Bank shall require the borrower to certify to the Bank that 
each project funded under a CICA program (other than AHP) meets the 
respective targeting requirements of the CICA program. Such 
certification shall include a description of how the project meets the 
requirements, and where appropriate, a statistical summary or list of 
incomes of the borrowers, rents for the project, or salaries of jobs 
created or retained.
    (b) For those CICA-funded projects that also receive funds from 
another targeted Federal economic development program that has income 
targeting requirements that are the same as, or more restrictive than, 
the targeting requirements of the applicable CICA program, the Bank 
shall permit the borrower to certify that compliance with the criteria 
of such Federal economic development program will meet the requirements 
of the respective CICA program.
    (c) Such certifications shall satisfy the Bank's obligations to 
document compliance with the CICA funding provisions of this part.

    Dated: December 18, 2012.
Edward J. DeMarco,
Acting Director, Federal Housing Finance Agency.
[FR Doc. 2012-31093 Filed 1-10-13; 8:45 am]
BILLING CODE 8070-01-P