Title: FINAL RULE--Personnel Administration, Loan Policies and Operations; Funding and Fiscal Affairs, Loan Policies and Operations, and Funding Operations; General Provisions--12 CFR Parts 612, 614, 615, and 618
Issue Date: 12/11/1989
Federal Register Cite: 54 FR 50736
FARM CREDIT ADMINISTRATION
12 CFR Parts 612, 614, 615, and 618
Personnel Administration, Loan Policies and Operations; Funding and Fiscal Affairs, Loan Policies and Operations, and Funding Operations; General Provisions
ACTION: Final rule.
SUMMARY: The Farm Credit Administration (FCA) Board adopts as final an interim rule which eliminates the requirement for Farm Credit institutions to submit to the FCA certain proposed policies, procedures, programs and actions for FCA's approval prior to implementation by the institution. These submissions by the institution are referred to collectively as "prior approvals".
The FCA Board determined that certain prior approvals are unnecessary in light of the Agricultural Credit Act of 1987, which amended the Farm Credit Act of 1971 (Act) and Congressional intent, and are inconsistent with FCA's role as an arms's length regulator.
The elimination of these prior approvals does not relieve the Farm Credit institutions of their responsibility to develop and implement the policies, procedures, programs, and actions referred to in these regulations and to operate in a safe and sound manner and in accordance with all applicable laws, rules and regulations. Such policies, procedures, programs, and actions continue to be subject to examination by FCA.
DATES: This regulation shall become effective upon the expiration of 30 days after publication during which either or both Houses of Congress are in session. Notice of effective date will be published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: John C. Moore, Jr., Deputy Chief, Financial Analysis and Standards Division, 1501 Farm Credit Drive, McLean, VA 22102-5090, (703) 883-4401, TDD (703) 883-4444.
SUPPLEMENTARY INFORMATION: On January 6, 1989, the FCA Board adopted an interim rule (54 FR 1149) and requested public comments thereon. The interim rule eliminated prior approval language contained in the following regulations: §§ 612.2150 (a) and (c); 612.2160(a); 614.4280 (a) and (b); 614.4320; 614.4321; 614.4340(a); 614.4345; 614.4460; 614.4511; 615.5040; 615.5104; 615.5135(b); 615.5143; 615.5190(b); and 618.8060. The Farm Credit Amendments Act of 1985, the Farm Credit Act Amendments of 1986, and the Agricultural Credit Act of 1987, which amended the Farm Credit Act of 1971 (Act), specifically eliminated certain prior approvals from the Act. In addition, the FCA Board interpreted Congressional intent, based on those prior approvals specifically eliminated, to require the elimination of other prior approvals. Finally, the FCA Board determined that certain prior approvals should be eliminated as being inconsistent with FCA's role as an arm's length regulator. See 54 FR 1149, January 12, 1989, for a further discussion of the basis for removal of the individual prior approval requirements.
The FCA received two comments: one from the Farm Credit Corporation of America (FCCA), and one from the Farm Credit Bank of Baltimore (FCBB). Both commentors agreed with the FCA's action of eliminating the prior approvals as set forth in the interim rule. The FCCA also urged FCA to consider the elimination of certain other prior approvals not included in the interim rule. The FCBB concurred with the FCCA comment. FCA is continuing to examine prior approval requirements, including some of those which were discussed by the commentors, to determine whether such prior approvals should be eliminated. However, no action is proposed at this time.
Accordingly, the FCA Board adopts the interim rule amending 12 CFR parts 612, 614, 615, and 618 which was published at 54 FR 1149 on January 12, 1989, as a final rule without change.
List of Subjects in 12 CFR Parts 612, 614, 615, and 618
Accounting, Agriculture, Archives and records, Banks, Banking, Conflict of interest, Credit, Foreign trade, Government securities, Insurance, Investments, Reporting and recordkeeping requirements, Rural areas, Technical assistance.
Dated: December 1, 1989.
David A. Hill,
Secretary, Farm Credit Administration Board.
[FR Doc. 89-28837 Filed 12-8-89; 8:45 am]
BILLING CODE 6705-01-M