[Federal Register Volume 62, Number 238 (Thursday, December 11, 1997)]
[Rules and Regulations]
[Pages 65197-65198]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32207]
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FEDERAL HOUSING FINANCE BOARD
12 CFR Part 934
[No. 97-77]
RIN 3069-AA70
Authority To Approve Federal Home Loan Bank Bylaws
AGENCY: Federal Housing Finance Board.
ACTION: Interim final rule with request for comments.
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SUMMARY: The Federal Housing Finance Board (Finance Board) is adding a
new provision to its regulation on Federal Home Loan Bank (FHLBank)
operations to devolve responsibility for approving FHLBank bylaws or
amendments thereto, subject to certain conditions, from the Finance
Board to the boards of directors of the FHLBanks. The rule is part of
the Finance Board's continuing effort to devolve management and
governance responsibilities to the FHLBanks and is consistent with the
goals of the Regulatory Reinvention Initiative of the National
Performance Review.
DATES: The interim final rule will become effective on January 12,
1998. The Finance Board will accept comments on the interim final rule
in writing on or before January 12, 1998.
ADDRESSES: Mail comments to Elaine L. Baker, Secretary to the Board,
Federal Housing Finance Board, 1777 F Street, N.W., Washington, D.C.
20006. Comments will be available for public inspection at this
address.
FOR FURTHER INFORMATION CONTACT: Amy R. Maxwell, Compliance Assistance
Division, Office of Policy, 202/408-2882, or Janice A. Kaye, Attorney-
Advisor, Office of General Counsel, 202/408-2505, Federal Housing
Finance Board, 1777 F Street, N.W., Washington, D.C. 20006.
[[Page 65198]]
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Background
Subject to the approval of the Finance Board, section 12(a) of the
Federal Home Loan Bank Act (Bank Act) authorizes the board of directors
of each FHLBank to ``prescribe, amend, and repeal by-laws, rules, and
regulations governing the manner in which its affairs may be
administered.'' 12 U.S.C. 1432(a). Currently, no Finance Board
regulation or policy addresses specifically the process by which the
Finance Board evaluates and approves FHLBank bylaws or amendments
thereto.
From the establishment of the Finance Board in 1989 until the
present, Finance Board staff has reviewed proposed FHLBank bylaws and
bylaws amendments to ensure that they are consistent with applicable
statutes, regulations, and Finance Board policies. Pursuant to
delegated authority, the Associate Director of the former District
Banks Secretariat, and, after that position and office were eliminated,
the Managing Director of the Finance Board, approved FHLBank bylaws or
bylaws amendments upon the recommendation of staff. See Federal Home
Loan Bank Board Resolution No. 21,526 (Apr. 4, 1968) (rescinded by
Finance Board Resolution No. 97-76 (Dec. 1, 1997)); Finance Board
Chairperson's Order No. 95-OR-6 (Oct. 10, 1995).
The Finance Board believes the FHLBanks should have broad
discretion to manage their affairs, including the authority to approve
bylaws and amendments thereto. Accordingly, as part of the Finance
Board's continuing effort to devolve management and governance
responsibilities to the FHLBanks, the interim final rule transfers the
authority to approve FHLBank bylaws and bylaws amendments, subject to
certain conditions, from the Finance Board to the boards of directors
of the FHLBanks.
II. Analysis of the Interim Final Rule
The Finance Board is proposing to add a new section, designated as
Sec. 934.16, to its regulation on FHLBank operations. Section 934.16
devolves responsibility for approving FHLBank bylaws and amendments
thereto, subject to certain conditions, from the Finance Board to the
boards of directors of the FHLBanks. The rule authorizes the board of
directors of each FHLBank to prescribe, amend, or repeal bylaws
governing the manner in which the FHLBank administers its affairs
without the prior approval of the Finance Board provided that the
bylaws or bylaws amendments are consistent with applicable statutes,
regulations, and Finance Board policies. The Finance Board will ensure
that FHLBank bylaws are legally unobjectionable through the examination
process.
III. Notice and Public Participation
The Finance Board finds that the notice and comment procedure
required by the Administrative Procedure Act is unnecessary,
impracticable, and contrary to the public interest in this instance
because the change made by the interim final rule is technical in
nature and applies only to the FHLBanks. See 5 U.S.C. 553(b)(3)(B).
Nevertheless, because the Finance Board believes public comments aid in
effective rulemaking, it will accept written comments on the interim
final rule on or before January 12, 1998.
IV. Regulatory Flexibility Act
The Finance Board is adopting this amendment to part 934 in the
form of an interim final rule and not as a proposed rule. Therefore,
the provisions of the Regulatory Flexibility Act do not apply. See 5
U.S.C. 601(2), 603(a).
V. Paperwork Reduction Act
This interim final rule does not contain any collections of
information pursuant to the Paperwork Reduction Act of 1995. See 44
U.S.C. 3501 et seq. Consequently, the Finance Board has not submitted
any information to the Office of Management and Budget for review.
List of Subjects in 12 CFR Part 934
Federal home loan banks, Securities, Surety bonds.
Accordingly, the Federal Housing Finance Board hereby amends part
934, chapter IX, title 12 of the Code of Federal Regulations as
follows:
PART 934--OPERATIONS OF THE BANKS
1. Revise the authority citation for part 934 to read as follows:
Authority: 12 U.S.C. 1422a, 1422b, 1431(g), 1432(a), and 1442.
2. Add Sec. 934.16 to read as follows:
Sec. 934.16 Approval of Bank bylaws.
The board of directors of a Bank may prescribe, amend, or repeal
bylaws governing the manner in which the Bank administers its affairs
without the Board's prior approval provided that the bylaws or
amendments are consistent with applicable statutes, regulations, and
Board policies.
Dated: December 3, 1997.
By the Board of Directors of the Federal Housing Finance Board.
Bruce A. Morrison,
Chairperson.
[FR Doc. 97-32207 Filed 12-10-97; 8:45 am]
BILLING CODE 6725-01-U
