[Federal Register Volume 86, Number 98 (Monday, May 24, 2021)]
[Rules and Regulations]
[Pages 27797-27798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10769]



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 Rules and Regulations
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains regulatory documents 
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  Federal Register / Vol. 86, No. 98 / Monday, May 24, 2021 / Rules and 
Regulations  

[[Page 27797]]



FARM CREDIT ADMINISTRATION

12 CFR Part 655

RIN 3052-AD47


Federal Agricultural Mortgage Corporation Disclosure and 
Reporting

AGENCY: Farm Credit Administration.

ACTION: Direct final rule.

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SUMMARY: The Farm Credit Administration (FCA or we) issues this direct 
final rule adopting administrative amendments to eliminate requirements 
for the Federal Agricultural Mortgage Corporation (Farmer Mac or the 
Corporation) to submit paper copies of certain reports to the FCA's 
Office of Secondary Market Oversight (OSMO). Electronic copies of the 
reports are sufficient for oversight and examination purposes.

DATES: If no significant adverse comment is received on or before June 
23, 2021, this regulation shall become effective no earlier than the 
expiration of 30 days after publication in the Federal Register during 
which either or both Houses of Congress are in session. We will publish 
notice of the effective date in the Federal Register.

ADDRESSES: For accuracy and efficiency reasons, please submit comments 
by email or through the FCA's website. We do not accept comments 
submitted by facsimile (fax), as faxes are difficult for us to process 
in compliance with section 508 of the Rehabilitation Act. Please do not 
submit your comment multiple times via different methods. You may 
submit comments by any of the following methods:
     Email: Send us an email at [email protected].
     FCA Website: http://www.fca.gov. Click inside the ``I want 
to. . .'' field near the top of the page; select ``comment on a pending 
regulation'' from the dropdown menu; and click ``Go.'' This takes you 
to an electronic public comment form.
     Mail: Laurie A. Rea, Director, Office of Secondary Market 
Oversight, Farm Credit Administration, 1501 Farm Credit Drive, McLean, 
VA 22102-5090.

You may review copies of comments we receive on our website at http://www.fca.gov. Once you are in the website, click inside the ``I want to 
. . .'' field near the top of the page; select ``find comments on a 
pending regulation'' from the dropdown menu; and click ``Go.'' This 
page will take you to the Comment Letters page where you can select the 
regulation for which you would like to read the public comments.
    We will show your comments as submitted, but for technical reasons 
we may omit items such as logos and special characters. Identifying 
information you provide, such as phone numbers and addresses, will be 
publicly available. However, we will attempt to remove email addresses 
to help reduce internet spam. You may also review comments at our 
office in McLean, Virginia. Please call us at (703) 883-4280 or email 
us at [email protected] to make an appointment.

FOR FURTHER INFORMATION CONTACT: 
    Technical Information: Tiffany West, Assistant to the Director, 
Office of Secondary Market Oversight, Farm Credit Administration, 
McLean, VA 22102-5090, (703) 883-4280, TTY (703) 883-4056; or
    Legal Information: Hazem Isawi, Senior Attorney, Office of General 
Counsel, Farm Credit Administration, McLean, VA 22102-5090, (703) 883-
4020, TTY (703) 883-4056.

SUPPLEMENTARY INFORMATION: 

I. Objective

    The objective of this direct final rule is to eliminate the 
requirement for Farmer Mac to submit paper copies of reports to OSMO in 
most circumstances by:
     Maintaining the requirement for submission of electronic 
reports; and
     Limiting the requirement for submission of paper copies of 
reports to circumstances where it is impossible to provide an 
electronic report timely.

II. Discussion

    Farmer Mac is a stockholder-owned, federally chartered 
instrumentality that is an institution of the Farm Credit System 
(System) and a Government-sponsored enterprise (GSE). The Corporation 
was established and chartered by the Agricultural Credit Act of 1987 
(1987 Act) \1\ to create a secondary market for agricultural real 
estate mortgage loans, rural housing mortgage loans, rural utility 
cooperative loans, and the guaranteed portions of USDA-guaranteed farm 
and rural development loans. Title VIII of the Farm Credit Act of 1971, 
as amended (Act),\2\ governs the Corporation.
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    \1\ Agricultural Credit Act of 1987 (Pub. L. 100-233, January 6, 
1988).
    \2\ Sections 8.0 to 8.41 of the Act (12 U.S.C. 2279aa to 
2279cc).
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    Existing FCA regulations require Farmer Mac to file both one paper 
copy and one electronic copy of certain reports with the FCA. There are 
three instances of requirements of paper copy submissions:
     Section 655.10(c) requires the Corporation to provide FCA 
with one paper and one electronic copy of every signed report that is 
distributed to its shareholders unless that report is the same as that 
filed with the Securities and Exchange Commission (SEC). If the report 
is the same as that filed with the SEC, the Corporation may instead 
provide the signed reports to us only in electronic form and 
simultaneous with filing the report with the SEC.
     Section 655.15(a) requires the Corporation to provide FCA 
one paper and one electronic copy of every interim report, notice, and 
proxy statement filed with the SEC.
     Section 655.21(a) requires the Corporation to provide FCA 
one paper and one electronic copy of every filing made with the U.S. 
Treasury, the SEC, or New York Stock Exchange (NYSE), including 
financial statements and related schedules, exhibits, and other 
documents that are part of the filing.

Additionally, Sec.  655.21(b) requires that Farmer Mac send us, within 
3 business days and according to the instructions provided by us, 
copies of all substantive correspondence between the Corporation and 
the U.S. Treasury, the SEC, or NYSE that are directed at the activities 
of the Corporation. However, it does not specify how the copies are to 
be sent.
    Electronic copies of the required reports specified above are 
sufficient to allow for oversight and examination of the Corporation. 
The only circumstance where a paper copy would be necessary is if it is 
impossible to provide an electronic copy. This includes events

[[Page 27798]]

such as, but not limited to, security breaches, power outages, and the 
inability to access electronic portals.

III. Direct Final Rule

    We are eliminating the requirements for paper copy submissions in 
Sec.  655.10(c), Sec.  655.15(a), and Sec.  655.21(a), and clarifying 
that submissions required under Sec.  655.21(b) should be done 
electronically, by a direct final rulemaking. The Administrative 
Conference of the United States recommends direct final rulemaking for 
Federal agencies to enact noncontroversial regulations on an expedited 
basis, without the usual notice and comment period.\3\ This process 
enables us to reduce the time and resources we need to develop, review, 
and publish a final rule while still affording the public an adequate 
opportunity to comment or object to the rule.
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    \3\ Recommendation 95-4, referencing the Administrative 
Procedure Act ``good cause'' exemption at 5 U.S.C. 553(b)(B), 
adopted June 15, 1995.
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    In a direct final rulemaking, we notify the public that the rule 
will become final on a specified date unless we receive a significant 
adverse comment during the comment period. A significant adverse 
comment is one where the commenter explains why the rule would be 
inappropriate (including challenges to its underlying premise or 
approach), ineffective, or unacceptable without a change. In general, a 
significant adverse comment would raise an issue serious enough to 
warrant a substantive response from the FCA in a notice-and-comment 
proceeding.
    We believe that a direct final rulemaking is the appropriate method 
for amending Sec.  655.10(c), Sec.  655.15(a), and Sec.  655.21(a) and 
(b) because the changes are administrative in nature and do not 
substantively alter the rights or responsibilities of any party. We do 
not anticipate there will be significant adverse comments. If, however, 
we receive a significant adverse comment during the comment period, we 
will publish a notice of withdrawal of the relevant provisions of this 
rule that will also indicate how further rulemaking will proceed. If we 
receive no significant adverse comments, we will publish notice of the 
effective date of the rule following the required congressional waiting 
period under section 5.17(c)(1) of the Act.

IV. Regulatory Flexibility Act Analysis and Major Rule Conclusion

    Pursuant to section 605(b) of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.), FCA hereby certifies the final rule will not have 
a significant economic impact on a substantial number of small 
entities. The Corporation has assets and annual income over the amounts 
that would qualify it as a small entity. Therefore, the Corporation is 
not considered a ``small entity'' as defined in the Regulatory 
Flexibility Act.
    Under the provisions of the Congressional Review Act (5 U.S.C. 801 
et seq.), the Office of Management and Budget's Office of Information 
and Regulatory Affairs has determined that this direct final rule is 
not a ``major rule,'' as the term is defined at 5 U.S.C. 804(2).

List of Subjects in 12 CFR Part 655

    Accounting; Agriculture; Banks, banking; Conflicts of interest; 
Reporting and recordkeeping requirements; Rural areas.

    For the reasons stated in the preamble, part 655 of chapter VI, 
title 12 of the Code of Federal Regulations is amended as follows:

PART 655--FEDERAL AGRICULTURAL MORTGAGE CORPORATION DISCLOSURE AND 
REPORTING REQUIREMENTS

0
1. The authority citation for part 655 continues to read as follows:

    Authority:  Sec. 5.9, 8.3, 8.11, and 8.12 of Pub. L. 92-181, 85 
Stat. 583 (12 U.S.C. 2243, 2279aa-3, 2279aa-11, 2279aa-12).


0
2. Section 655.10 is amended by revising paragraph (c) introductory 
text to read as follows:


Sec.  655.10  Reports of condition.

* * * * *
    (c) Distribution. The Corporation must distribute the signed annual 
report of condition to its shareholders within 120 days of its fiscal 
year-end. Within 5 days of signing, the Corporation must provide to us 
an electronic copy of every signed report that is distributed to its 
shareholders. If it is impossible to provide an electronic copy, a 
paper copy must be submitted within the required time frame and an 
electronic copy as soon as possible after that.
* * * * *

0
3. Section 655.15 is amended by revising paragraph (a) to read as 
follows:


Sec.  655.15  Interim reports, notices, and proxy statements.

    (a) The Corporation must provide to us an electronic copy of every 
interim report, notice, and proxy statement filed with the SEC within 1 
business day of filing the item with the SEC, including all papers and 
documents that are a part of the report, notice, or statement. If it is 
impossible to provide an electronic copy, a paper copy must be 
submitted within the required time frame and an electronic copy as soon 
as possible after that.
* * * * *

0
4. Section 655.21 is amended by revising paragraphs (a) and (b) to read 
as follows:


Sec.  655.21  Filings and communications with the U.S. Treasury, the 
SEC, and NYSE.

    (a) The Corporation must send us an electronic copy of every filing 
made with U.S. Treasury, the SEC, or NYSE, including financial 
statements and related schedules, exhibits, and other documents that 
are a part of the filing. Such items must be filed with us no later 
than 1 business day after the U.S. Treasury, SEC, or NYSE filing. For 
those filings with the NYSE that duplicate ones made to the SEC, the 
Corporation may send only the SEC filing to us. If the filing is one 
addressed in subpart B of this part, no action under this paragraph is 
required. If it is impossible to provide an electronic copy, a paper 
copy must be submitted within the required time frame and an electronic 
copy as soon as possible after that.
    (b) The Corporation must send us, within 3 business days and 
according to instructions provided by us, electronic copies of all 
substantive correspondence between the Corporation and the U.S. 
Treasury, the SEC, or NYSE that are directed at the activities of the 
Corporation.
* * * * *

    Dated: May 17, 2021.
Dale Aultman,
Secretary, Farm Credit Administration Board.
[FR Doc. 2021-10769 Filed 5-21-21; 8:45 am]
BILLING CODE 6705-01-P