Data Reporting Requirements for the Federal Home Loan Banks, 9551-9555 [05-3717]

Download as PDF Federal Register / Vol. 70, No. 38 / Monday, February 28, 2005 / Proposed Rules is proposing to adopt the following amendments to 10 CFR part 72. PART 72—LICENSING REQUIREMENTS FOR THE INDEPENDENT STORAGE OF SPENT NUCLEAR FUEL, HIGH-LEVEL RADIOACTIVE WASTE, AND REACTOR-RELATED GREATER THAN CLASS C WASTE 1. The authority citation for part 72 continues to read as follows: Authority: Secs. 51, 53, 57, 62, 63, 65, 69, 81, 161, 182, 183, 184, 186, 187, 189, 68 Stat. 929, 930, 932, 933, 934, 935, 948, 953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071, 2073, 2077, 2092, 2093, 2095, 2099, 2111, 2201, 2232, 2233, 2234, 2236, 2237, 2238, 2282); sec. 274, Pub. L. 86–373, 73 Stat. 688, as amended (42 U.S.C. 2021); sec. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846); Pub. L. 95–601, sec. 10, 92 Stat. 2951 as amended by Pub. L. 102– 486, sec. 7902, 106 Stat. 3123 (42 U.S.C. 5851); sec. 102, Pub. L. 91–190, 83 Stat. 853 (42 U.S.C. 4332); secs. 131, 132, 133, 135, 137, 141, Pub. L. 97–425, 96 Stat. 2229, 2230, 2232, 2241, sec. 148, Pub. L. 100–203, 101 Stat. 1330–235 (42 U.S.C. 10151, 10152, 10153, 10155, 10157, 10161, 10168); sec. 1704, 112 Stat. 2750 (44 U.S.C. 3504 note). Section 72.44(g) also issued under secs. 142(b) and 148(c), (d), Pub. L. 100–203, 101 Stat. 1330–232, 1330–236 (42 U.S.C. 10162(b), 10168(c),(d)). Section 72.46 also issued under sec. 189, 68 Stat. 955 (42 U.S.C. 2239); sec. 134, Pub. L. 97–425, 96 Stat. 2230 (42 U.S.C. 10154). Section 72.96(d) also issued under sec. 145(g), Pub. L. 100–203, 101 Stat. 1330–235 (42 U.S.C. 10165(g)). Subpart J also issued under secs. 2(2), 2(15), 2(19), 117(a), 141(h), Pub. L. 97–425, 96 Stat. 2202, 2203, 2204, 2222, 2244 (42 U.S.C. 10101, 10137(a), 10161(h)). Subparts K and L are also issued under sec. 133, 98 Stat. 2230 (42 U.S.C. 10153) and sec. 218(a), 96 Stat. 2252 (42 U.S.C. 10198). 2. In § 72.214, Certificate of Compliance 1014 is revised to read as follows: § 72.214 List of approved spent fuel storage casks. * * * * * Certificate Number: 1014. Initial Certificate Effective Date: June 1, 2000. Amendment Number 1 Effective Date: July 15, 2002. Amendment Number 2 Effective Date: May 16, 2005. SAR Submitted by: Holtec International. SAR Title: Final Safety Analysis Report for the HI-STORM 100 Cask System. Docket Number: 72–1014. Certificate Expiration Date: June 1, 2020. Model Number: HI–STORM 100. * * * * * VerDate jul<14>2003 22:42 Feb 25, 2005 Jkt 205001 Dated at Rockville, Maryland, this 14th day of February, 2005. For the Nuclear Regulatory Commission. Luis A. Reyes, Executive Director for Operations. [FR Doc. 05–3740 Filed 2–25–05; 8:45 am] BILLING CODE 7590–01–P FEDERAL HOUSING FINANCE BOARD 12 CFR Parts 900, 914, 915, 917, 925, 950, 951, 952, and 955 [No. 2005–04] RIN 3069–AB28 Data Reporting Requirements for the Federal Home Loan Banks AGENCY: Federal Housing Finance Board. ACTION: Proposed rule. SUMMARY: The Federal Housing Finance Board (Finance Board) is proposing to reorganize the way it imposes reporting requirements on the Federal Home Loan Banks (Banks) by issuing the requirements in a reporting manual to be titled Data Reporting Manual (DRM). When issued, the DRM would be an enforceable order issued pursuant to the Finance Board’s investigatory powers. As part of this reorganization, the Finance Board is proposing to remove from its regulations certain reporting requirements and reissuing them as part of the DRM. The Finance Board also is proposing to add a new part 914, which would address a Bank’s obligation with respect to reporting requirements and make its books and records available to the Finance Board. Lastly, the Finance Board is proposing to add a new section to part 917, which would impose on each Bank’s board of directors the obligation to establish policies and procedures with respect to regulatory reporting. DATES: The Finance Board will accept written comments on the proposed rule on or before April 29, 2005. Comments: Submit comments by any of the following methods: E-mail: comments@fhfb.gov. Fax: (202) 408–2580. Mail/Hand Delivery: Federal Housing Finance Board, 1777 F Street, NW., Washington, DC 20006, Attention: Public Comments. Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. If you submit your comment to the Federal eRulemaking Portal, please also send it by e-mail to the Finance Board at comments@fhfb.gov to ensure timely receipt by the agency. PO 00000 Frm 00008 Fmt 4702 Sfmt 4702 9551 Include the following information in the subject line of your submission: Federal Housing Finance Board. Proposed Rule: Data Reporting Requirements for the Federal Home Loan Banks. RIN Number 3069–AB28. Docket Number 2005–04. We will post all public comments we receive on this rule without change, including any personal information you provide, such as your name and address, on the Finance Board Web site at http://www.fhfb.gov/pressroom/ pressroom_regs.htm. FOR FURTHER INFORMATION CONTACT: Thomas Hearn, Senior Attorney Advisor, Office of General Counsel, by electronic mail at hearnt@fhfb.gov or by telephone at (202) 408–2976; Scott L. Smith, Associate Director, Office of Supervision, by electronic mail at smiths@fhfb.gov or by telephone at (202) 408–2991; or Joseph A. McKenzie, Deputy Chief Economist, Office of Supervision, by electronic mail at mckenziej@fhfb.gov or by telephone at (202) 408–2845. You can send regular mail to the Federal Housing Finance Board, 1777 F Street, NW., Washington, DC 20006. SUPPLEMENTARY INFORMATION: I. Statutory and Regulatory Background A. The Federal Home Loan Bank System (Bank System) The Bank System consists of 12 Banks and the Office of Finance (OF). The Banks are instrumentalities of the United States organized under the authority of the Federal Home Loan Bank Act (Bank Act). 12 U.S.C. 1421 et seq. The Banks also are ‘‘government sponsored enterprises’’ (GSEs), i.e., Federally chartered but privately owned institutions created by Congress to support the financing of housing and community lending by their members. See 12 U.S.C. 1422a(a)(3)(B)(ii), 1430(i), and 1430(j). By virtue of their GSE status, the Banks are able to borrow in the capital markets at favorable rates. The Banks are then able to pass along that funding advantage to their members—and ultimately to consumers—by providing advances (secured loans) and other financial services to their members (principally, depository institutions) at rates that the members generally could not obtain elsewhere. The Banks, along with the OF, operate under the supervision of the Finance Board. The primary duty of the Finance Board is to ensure that the Banks operate in a financially safe and sound manner. Consistent with that duty, the Finance Board is required to supervise the Banks, ensure that they carry out E:\FR\FM\28FEP1.SGM 28FEP1 9552 Federal Register / Vol. 70, No. 38 / Monday, February 28, 2005 / Proposed Rules their housing finance mission, and ensure that they remain adequately capitalized and able to raise funds in the capital markets. 12 U.S.C. 1422a(a)(3)(A) and (B). B. Finance Board Investigatory Powers Congress has delegated to the Finance Board broad authority to fulfill its statutory mandates. Section 2B of the Bank Act states that the Finance Board has the power ‘‘[t]o supervise the Federal Home Loan Banks and to promulgate and enforce such regulations and orders as are necessary from time to time to carry out the provisions of this chapter [i.e., Chapter 11 of Title 12, codified at 12 U.S.C. 1421–1449].’’ 12 U.S.C. 1422b(a)(1). Section 20 of the Bank Act provides the Finance Board with the authority to require, ‘‘from time to time, [but] at least annually,’’ examinations and reports of condition of all the Banks in such form as the Finance Board prescribes. 12 U.S.C. 1440. Section 20 also vests in Finance Board examiners ‘‘the same powers and privileges as are vested in’’ examiners under the National Bank Act and the Federal Reserve Act. These Acts, in turn, provide examiners with sweeping powers, including the power to ‘‘make a thorough examination of all the affairs of the bank.’’ 12 U.S.C. 481. Thus, the Finance Board and its examiners have been vested with broad access to the books, records, and information of the Banks in order to fulfill the statutory mission of the Finance Board. The United States Supreme Court has recognized the importance of this broad access to the ability of financial institution regulators to perform their supervisory functions. In United States v. Philadelphia National Bank, 374 U.S. 321 (1963), the Court stated: [P]erhaps the most effective weapon of federal regulation of banking is the broad visitorial power of federal bank examiners. Whenever the agencies deem it necessary, they may order ‘a thorough examination of all the affairs of the bank’ * * * [citation omitted]. Such examinations are frequent and intensive. In addition, the banks are required to furnish detailed periodic reports of their operations to the supervisory agencies [citation omitted]. In this way the agencies maintain virtually a day-to-day surveillance of the American banking system. And should they discover unsound banking practices, they are equipped with a formidable array of sanctions. * * * As a result of this panoply of sanctions, recommendations by the agencies concerning banking practices tend to be followed by bankers without the necessity of formal compliance proceedings. 1 Davis, Administrative Law (1958), s. 4.04. VerDate jul<14>2003 22:42 Feb 25, 2005 Jkt 205001 374 U.S. at 329 (emphasis added). An agency’s authority to require informational reports stems from its investigatory power, which generally is distinct from, and in addition to, its authority exercised under the Administrative Procedures Act (APA) to engage in rulemaking or to issue adjudicative orders. A principal legislative sponsor of the APA described investigative activity during floor debate in the House of Representatives as follows: This third type of administrative compulsory power may be incidental to either legislative or judicial powers of administrative agencies, or it may be entirely independent of either. I refer to the compulsory action of administrative agencies when they issue subpoenas, require records or reports, or undertake mandatory inspections. These functions are investigatory in nature. 92 Cong. Rec. 5648 (1948), cited in Appeal of FTC Line of Business Report Litigation, 595 F.2d 685, 695–696 (D.C. Cir.) (per curiam), cert. denied sub nom. Milliken & Co. v. FTC, 439 U.S. 958 (1978). An agency’s exercise of its investigatory power will be upheld if the request for information is ‘‘reasonably relevant.’’ FTC v. Invention Submission Corp., 965 F.2d 1086, 1089 (D.C. Cir. 1992). Courts have said that an agency’s own appraisal of relevancy must be accepted as long as it is not ‘‘obviously wrong.’’ 965 F.2d at 1089. Furthermore, an agency may delegate its investigatory powers to staff. See Fleming v. Mohawk Wrecking & Lumber Co., 331 U.S. 111 (1947). The Bank Act makes clear that Congress intended the Finance Board to operate with broad investigatory powers to ensure that the Banks operate in a safe and sound manner and carry out their housing finance mission. See 12 U.S.C. 1422a, 1422b(a)(1), and 1440. To date, Finance Board staff has exercised the agency’s investigatory power to require the Banks to submit call reports as well as instrument level data used by the Banks to run their market risk models. The Finance Board also has delegated to the OF the authority to require the Banks to submit information needed to prepare the combined financial statements of the Bank System. 12 CFR 989.3. The Finance Board also may impose reporting requirements using its rulemaking authority. 12 U.S.C. 1422b(a)(1). The Finance Board has exercised its rulemaking authority to require reports related to a Bank’s condition or activities, including: Bank director eligibility (12 CFR 915.7 and 915.12(a)); a Bank’s performance in PO 00000 Frm 00009 Fmt 4702 Sfmt 4702 achieving certain goals described in the Bank’s strategic plan (12 CFR 917.5(c)); capital member stock purchases (12 CFR 925.20); stock advances and commitments outstanding to each member (12 CFR 950.4(e)); Affordable Housing Program (AHP) (12 CFR 951.3(d)); Advisory Council annual analysis (12 CFR 951.4(f)(3)); Affordable Housing Reserve Fund annual statement (12 CFR 951.15(b)); Community Investment and Cash Advance (CICA) reporting (12 CFR 952.6); and acquired member assets (AMA) (12 CFR 955.4). C. Reorganization of Reporting Requirements To make it easier for interested parties to locate Bank reporting requirements and to simplify the process for modifying these requirements as circumstances warrant, the Finance Board intends to issue many of the requirements in a manual to be titled Data Reporting Manual (DRM). For certain reporting requirements currently contained in Finance Board regulations, the Finance Board proposes to relocate them to the DRM. The DRM would include instructions addressing data definitions as well as requirements concerning data elements, reporting format, reporting method (e.g., electronic or paper), record retention, timeliness, reporting frequency, and certification. Going forward, changes to the reporting requirements will be made by amendments to the DRM.1 The DRM would represent an enforceable order issued pursuant to the Finance Board’s investigatory powers. The reorganization of reporting requirements, and the proposed amendments to Finance Board regulations, will allow the Finance Board to address problems it has experienced with the timeliness, accuracy, and completeness of data reporting by the Banks. The Bank Act gives the Finance Board enforcement authority to redress, among other things, violations of the Bank Act, or any law, order, rule, or regulation. 12 U.S.C. 1422b(a)(5). After this rulemaking is issued in final form and the DRM is issued, the Finance Board will deem 1 The delegation of authority to the OF in § 989.3 to exercise the Finance Board’s investigatory powers will remain. Also, the disclosure reporting to the Securities and Exchange Commission required by 12 CFR 998.2(b) is unaffected by the reorganization discussed in this notice. Lastly, the reporting requirements concerning capital stock for voting purposes (12 CFR 915.4), results of director elections (12 CFR 915.8), and capital requirements (12 CFR 932.7) will not be affected by this rulemaking. These three requirements do not present the same issues as the sections the Finance Board proposes to amend and are most useful to the reader in their current location and form. E:\FR\FM\28FEP1.SGM 28FEP1 Federal Register / Vol. 70, No. 38 / Monday, February 28, 2005 / Proposed Rules data reporting problems as violations of an investigatory order and, where applicable, violations of the regulations being proposed today. Reporting requirements imposed pursuant to the Finance Board’s investigatory powers are not subject to the notice and comment provisions of the Administrative Procedures Act. See Appeal of FTC Line of Business Report Litigation, 595 F.2d at 695–696. Nevertheless, the Finance Board recognizes that changes to reporting requirements can impose regulatory burden. The Finance Board also recognizes the utility of input from the Banks and the public in determining what information is appropriate to collect. Thus, where practicable, Finance Board staff will consult with the Banks and the public with respect to significant changes in the DRM before changes are made. Moreover, information collections that are subject to the Paperwork Reduction Act, such as those related to the AMA rule, will continue to be published in the Federal Register for comment in accordance with that Act. The Finance Board welcomes written comments on all aspects of the proposed rule. II. Analysis of Proposed Rule A. Part 914 The Finance Board is proposing to add a new part 914 to its regulations that would address a Bank’s obligation with respect to reporting requirements and make its books and records available to the Finance Board. Section 914.1 would contain a number of provisions directed at how a Bank reports data to the Finance Board and makes its books and records available to Finance Board examiners. Section 914.1(a) would define the term regulatory report to mean any report of raw or summary data required to evaluate the safe and sound condition and operations of a Bank or to determine compliance with any: (1) Provision in the Bank Act, or any law, order, rule, or regulation; (2) condition imposed in writing by the Finance Board in connection with the granting of any application or other request by a Bank; or (3) written agreement entered into by the Finance Board and a Bank. Section 914.1(b) would provide examples of a regulatory report, including the call report, reports of information to the OF pursuant to § 989.3, and reports of instrument-level data submitted for risk assessment purposes. The term regulatory report also includes reports related to a Bank’s housing mission achievement, such as reports related to AMA, AHP, VerDate jul<14>2003 22:42 Feb 25, 2005 Jkt 205001 Community Investment Program (CIP), and other CICA programs. Section 914.2 would require each Bank to file regulatory reports with the Finance Board pursuant to the Finance Board’s forms and instructions for the reports. These reports must be filed no later than the deadline established by the Finance Board. In some cases, this will involve reporting at regular intervals; in other cases, it will involve responding to Finance Board requests for information that are in addition to the information submitted at regular intervals. Section 914.3 would require each Bank to make its books and records available upon request by the Finance Board within a reasonable period at a location acceptable to the Finance Board. Section 914.3 establishes presumptions about what the Finance Board considers a reasonable period of time to respond to requests that occur during and outside of an ongoing examination as well as those that occur at other times. B. Part 917 Part 917 of the Finance Board’s current regulations sets forth various powers and responsibilities of Bank boards of directors. In addition to setting out the basic fiduciary duties of care and loyalty for each director, part 917 requires each board, as a group, to take specific actions with respect to functions such as risk management, strategic planning, internal controls, budget, and oversight of the audit function. The Finance Board is proposing to revise part 917 to require each Bank’s board of directors to have in place at all times policies and procedures to ensure that the Bank complies with Finance Board reporting requirements. Given the Finance Board’s need for Bank information that is timely, accurate, and complete, it is essential that responsibility for maintaining that information and reporting it to the Finance Board rest at the highest level of each Bank’s corporate structure.2 C. Parts 915, 917, 925, 950, 951, 952, and 955 The Finance Board is proposing to revise various reporting requirements set forth in parts 915, 917, 925, 950, 951, 952, and 955 to refer the reader to forms and instructions issued pursuant to the 2 In recent proposed changes to its corporate governance regulation, the Office of Federal Housing Enterprise Oversight proposed including a similar change to the duties of the boards of directors for Fannie Mae and Freddie Mac. See 12 CFR 1710.15(b)(7) (proposed). 69 FR 19126, 19131 (April 12, 2004). PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 9553 DRM when this rulemaking is issued in final form. III. Paperwork Reduction Act The proposed rule would have no substantive effect on any collection of information covered by the Paperwork Reduction Act of 1995 (PRA). See 44 U.S.C. 3501 et seq. Therefore, the Finance Board has not submitted this proposal to the Office of Management and Budget (OMB) for review. Data requests that will be set out in the DRM or other investigatory orders that are ‘‘information collections’’ as that term is used in the PRA will be submitted to OMB for review and published in the Federal Register in accordance with the PRA’s requirements. IV. Regulatory Flexibility Act The proposed rule would apply only to the Banks, 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). Thus, in accordance with section 605(b) of the RFA, 5 U.S.C. 605(b), the Finance Board hereby certifies that the proposed rule, if promulgated as a final rule, will not have a significant economic impact on a substantial number of small entities. List of Subjects 12 CFR Part 900 Community development, Credit, Federal home loan banks, Housing, Reporting and recordkeeping requirements. 12 CFR Part 914 Federal home loan banks, Reporting and recordkeeping requirements. 12 CFR Part 915 Banks, Banking, Conflicts of interest, Elections, Ethical conduct, Federal home loan banks, Financial disclosure, Reporting and recordkeeping requirements. 12 CFR Part 917 Community development, Credit, Federal home loan banks, Housing, Reporting and recordkeeping requirements. 12 CFR Part 925 Credit, Federal home loan banks, Reporting and recordkeeping requirements. 12 CFR Part 950 Credit, Federal home loan banks, Housing, Reporting and recordkeeping requirements. E:\FR\FM\28FEP1.SGM 28FEP1 9554 Federal Register / Vol. 70, No. 38 / Monday, February 28, 2005 / Proposed Rules (1) Call reports, reports of information to the OF pursuant to § 989.3, and reports of instrument-level risk modeling data; (2) Reports related to a Bank’s housing mission achievement, such as reports related to AMA, AHP, CIP, and other CICA programs; and (3) Reports submitted in response to requests to one or more Banks for information on a nonrecurring basis. 12 CFR Part 951 Community development, Credit, Federal home loan banks, Housing, Reporting and recordkeeping requirements. 12 CFR Part 952 Community development, Credit, Federal home loan banks, Housing, Reporting and recordkeeping requirements. 12 CFR Part 955 Credit, Federal home loan banks, Reporting and recordkeeping requirements. For the reasons stated in the preamble, the Finance Board proposes to amend 12 CFR, chapter IX, as follows: PART 900—GENERAL DEFINITIONS APPLYING TO ALL FINANCE BOARD REGULATIONS 1. The authority citation for part 900 continues to read as follows: Authority: 12 U.S.C. 1422b(a). 2. Amend § 900.2 by adding in alphabetical order, a defined term to read as follows: § 900.2 Terms relating to Bank operations, mission and supervision. * * * * * Data Reporting Manual or DRM means a manual issued by the Finance Board and amended from time to time containing reporting requirements for the Banks. * * * * * 3. Add part 914 to title 12, chapter IX, to read as follows: § 914.2 Filing regulatory reports. Each Bank shall file regulatory reports with the Finance Board in accordance with the forms, instructions, and schedules issued by the Finance Board from time to time. Regulatory reports shall be filed according to the schedule established by the Finance Board. If no regularly scheduled reporting dates are established, regulatory reports shall be filed as requested by the Finance Board. § 914.3 Access to books and records. Each Bank shall make its books and records readily available for inspection and other supervisory purposes within a reasonable period upon request by the Finance Board, at a location acceptable to the Finance Board. For requests for documents made during the course of an onsite examination and pursuant to the examination’s scope, a reasonable period is presumed to be one business day. For requests for documents made outside of an onsite examination, a reasonable period is presumed to be three business days. PART 915—BANK DIRECTOR ELIGIBILITY, APPOINTMENT, AND ELECTIONS PART 914—DATA AVAILABILITY AND REPORTING 4. The authority citation for part 915 continues to read as follows: Sec. 914.1 914.2 914.3 Authority: 12 U.S.C. 1422a(a)(3), 1422b(a), 1426, 1427, and 1432. Definition. Filing regulatory reports. Access to books and records. 5. Revise § 915.7(a) to read as follows: Authority: 12 U.S.C. 1422a(a)(3), 1422b(a)(1), and 1440. § 915.7 Eligibility requirements for elective directors. § 914.1 (a) Eligibility verification. Based on the information provided on the director eligibility certification form prescribed in the Data Reporting Manual issued by the Finance Board, as amended from time to time, a Bank shall verify that each nominee meets all of the eligibility requirements for elective directors set forth in the Act and this part before placing that nominee on the ballot prepared by the Bank under § 915.8(a). A Bank shall not declare elected a nominee that it has reason to know is ineligible to serve, nor shall it seat a director-elect that it has reason to know is ineligible to serve. * * * * * Definition. (a) Definition. Regulatory report means any report of raw or summary data needed to evaluate the safe and sound condition and operations of a Bank or to determine compliance with any: (1) Provision in the Act or other law, order, rule, or regulation; (2) Condition imposed in writing by the Finance Board in connection with the granting of any application or other request by a Bank; or (3) Written agreement entered into between the Finance Board and a Bank. (b) Examples. Regulatory reports include: VerDate jul<14>2003 22:42 Feb 25, 2005 Jkt 205001 PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 6. Revise § 915.12(a) to read as follows: § 915.12 Reporting requirements for Bank directors. (a) Annual reporting. On or before March 1 of each year, each director shall submit to his or her Bank the appropriate executed director eligibility certification, as prescribed in the Data Reporting Manual issued by the Finance Board, as amended from time to time. The Bank shall promptly forward to the Finance Board a copy of the certification filed by each appointive director. * * * * * PART 917—POWERS AND RESPONSIBILITIES OF BANK BOARDS OF DIRECTORS AND SENIOR MANAGEMENT 7. The authority citation for part 917 continues to read as follows: Authority: 12 U.S.C. 1422a(a)(3), 1422b(a)(1), 1426, 1427, 1432(a), 1436(a), and 1440. 8. Revise § 917.5(c) to read as follows: § 917.5 Strategic business plan. * * * * * (c) Report to the Finance Board. Each Bank shall submit to the Finance Board a report analyzing and describing the Bank’s performance in achieving the goals described in paragraph (a)(3) of this section in accordance with the instructions provided in the Data Reporting Manual issued by the Finance Board, as amended from time to time. 9. Add § 917.11 to read as follows: § 917.11 Regulatory reporting. Each Bank’s board of directors shall have in place at all times policies and procedures to ensure that the Bank complies with data reporting requirements set forth in Finance Board regulations and orders. PART 925—MEMBERS OF THE BANKS 10. The authority citation for part 925 continues to read as follows: Authority: 12 U.S.C. 1422, 1422a, 1422b, 1423, 1424, 1426, 1430, and 1442. 11. Revise § 925.20(e) to read as follows: § 925.20 Stock purchase. * * * * * (e) Reports. The Bank shall make quarterly reports to the Finance Board setting forth purchases by institutions approved for membership of their minimum stock requirement pursuant to this section in accordance with the instructions provided in the Data Reporting Manual issued by the Finance Board, as amended from time to time. E:\FR\FM\28FEP1.SGM 28FEP1 Federal Register / Vol. 70, No. 38 / Monday, February 28, 2005 / Proposed Rules PART 950—ADVANCES § 951.15 Fund. 12. The authority citation for part 950 continues to read as follows: * Authority: 12 U.S.C. 1422a(a)(3), 1422b(a)(1), 1426, 1429, 1430, 1430b, and 1431. 13. Revise § 950.4(e) to read as follows: § 950.4 Limitations on access to advances. * * * * * (e) Reporting. (1) Each Bank shall provide the Finance Board with a report of the advances and commitments outstanding to each of its members in accordance with the instructions provided in the Data Reporting Manual issued by the Finance Board, as amended from time to time. (2) Each Bank shall, upon written request from a member’s appropriate federal banking agency or insurer, provide to such entity information on advances and commitments outstanding to the member. * * * * * PART 951—AFFORDABLE HOUSING PROGRAM 14. The authority citation for part 951 continues to read as follows: Authority: 12 U.S.C. 1430(j). 15. Revise § 951.3(d) to read as follows: * * * * * (d) Reporting. Each Bank shall provide such reports and documentation concerning its Program in accordance with the instructions provided in the Data Reporting Manual issued by the Finance Board, as amended from time to time. 16. Revise § 951.4(f)(3) to read as follows: Advisory Councils. * * * * * (f) * * * (3) Annual report to the Finance Board. Each Advisory Council shall submit to the Finance Board, in accordance with the instructions provided in the Data Reporting Manual issued by the Finance Board, as amended from time to time, its analysis of the low- and moderately low-income housing and community lending activity of the Bank by which it is appointed. * * * * * 17. Revise § 951.15(b) to read as follows: VerDate jul<14>2003 22:42 Feb 25, 2005 Jkt 205001 * * * * (b) Annual statement. By January 15 of each year, each Bank shall provide to the Finance Board, in accordance with the instructions provided in the Data Reporting Manual issued by the Finance Board, as amended from time to time, a statement indicating the amount of unused and uncommitted funds from the previous year, if any, which will be deposited in the Affordable Housing Reserve Fund. * * * * * PART 952—COMMUNITY INVESTMENT CASH ADVANCE PROGRAMS 18. The authority citation for part 952 continues to read as follows: Authority: 12 U.S.C. 1422b(a)(1) and 1430. 19. Revise § 952.6(a) to read as follows: § 952.6 Reporting. (a) Each Bank annually shall provide to the Finance Board, in accordance with the instructions provided in the Data Reporting Manual issued by the Finance Board, as amended from time to time, a Targeted Community Lending Plan. * * * * * PART 955—ACQUIRED MEMBER ASSETS § 951.3 Operation of Program and adoption of AHP implementation plan. § 951.4 Affordable Housing Reserve 20. The authority citation for part 955 continues to read as follows: Authority: 12 U.S.C. 1422a(a)(3), 1422b(a), 1430, 1430b, and 1431. 21. Revise § 955.4 to read as follows: § 955.4 Reporting requirement for acquired member assets. Each Bank shall report information related to AMA in accordance with the instructions provided in the Data Reporting Manual issued by the Finance Board, as amended from time to time. Appendix A [Removed] 22. Remove Appendix A to part 955. Appendix B [Removed] 23. Remove Appendix B to part 955. Dated: February 9, 2005. By the Board of Directors of the Federal Housing Finance Board. Ronald A. Rosenfeld, Chairman. [FR Doc. 05–3717 Filed 2–25–05; 8:45 am] BILLING CODE 6725–01–P PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 9555 DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2005–20452; Directorate Identifier 2004–NM–206–AD] RIN 2120–AA64 Airworthiness Directives; Airbus Model A330 and A340–200 and –300 Series Airplanes Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Notice of proposed rulemaking (NPRM). AGENCY: SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD) for certain Airbus Model A330 and A340– 200 and –300 series airplanes. This proposed AD would require repetitive detailed inspections for discrepancies of the inboard and outboard actuator fittings of the aileron servo-controls, corrective actions if necessary, and eventual replacement of all the attachment bolts of the aileron servocontrols. This proposed AD is prompted by several cases of bushing migration on the inboard and outboard actuator fittings of the aileron servo-controls; in one case the bushing had migrated completely out of the actuator fitting and the fitting was cracked. We are proposing this AD to prevent rupture of the inboard and outboard actuator fittings of the aileron servo controls, which could result in airframe vibration and consequent reduced structural integrity of the airplane. DATES: We must receive comments on this proposed AD by March 30, 2005. ADDRESSES: Use one of the following addresses to submit comments on this proposed AD. • DOT Docket Web site: Go to http:/ /dms.dot.gov and follow the instructions for sending your comments electronically. • Government-wide rulemaking web site: Go to http://www.regulations.gov and follow the instructions for sending your comments electronically. • Mail: Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street SW, Nassif Building, room PL–401, Washington, DC 20590. • By fax: (202) 493–2251. • Hand Delivery: Room PL–401 on the plaza level of the Nassif Building, 400 Seventh Street SW, Washington, DC, between 9:00 a.m. and 5:00 p.m., Monday through Friday, except Federal holidays. For service information identified in this proposed AD, contact Airbus, 1 E:\FR\FM\28FEP1.SGM 28FEP1

Agencies

[Federal Register Volume 70, Number 38 (Monday, February 28, 2005)]
[Proposed Rules]
[Pages 9551-9555]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-3717]


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FEDERAL HOUSING FINANCE BOARD

12 CFR Parts 900, 914, 915, 917, 925, 950, 951, 952, and 955

[No. 2005-04]
RIN 3069-AB28


Data Reporting Requirements for the Federal Home Loan Banks

AGENCY: Federal Housing Finance Board.

ACTION: Proposed rule.

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SUMMARY: The Federal Housing Finance Board (Finance Board) is proposing 
to reorganize the way it imposes reporting requirements on the Federal 
Home Loan Banks (Banks) by issuing the requirements in a reporting 
manual to be titled Data Reporting Manual (DRM). When issued, the DRM 
would be an enforceable order issued pursuant to the Finance Board's 
investigatory powers. As part of this reorganization, the Finance Board 
is proposing to remove from its regulations certain reporting 
requirements and reissuing them as part of the DRM. The Finance Board 
also is proposing to add a new part 914, which would address a Bank's 
obligation with respect to reporting requirements and make its books 
and records available to the Finance Board. Lastly, the Finance Board 
is proposing to add a new section to part 917, which would impose on 
each Bank's board of directors the obligation to establish policies and 
procedures with respect to regulatory reporting.

DATES: The Finance Board will accept written comments on the proposed 
rule on or before April 29, 2005.
    Comments: Submit comments by any of the following methods:
    E-mail: comments@fhfb.gov.
    Fax: (202) 408-2580.
    Mail/Hand Delivery: Federal Housing Finance Board, 1777 F Street, 
NW., Washington, DC 20006, Attention: Public Comments.
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments. If you submit your comment to the 
Federal eRulemaking Portal, please also send it by e-mail to the 
Finance Board at comments@fhfb.gov to ensure timely receipt by the 
agency.
    Include the following information in the subject line of your 
submission: Federal Housing Finance Board. Proposed Rule: Data 
Reporting Requirements for the Federal Home Loan Banks. RIN Number 
3069-AB28. Docket Number 2005-04.
    We will post all public comments we receive on this rule without 
change, including any personal information you provide, such as your 
name and address, on the Finance Board Web site at http://www.fhfb.gov/
pressroom/pressroom_regs.htm.

FOR FURTHER INFORMATION CONTACT: Thomas Hearn, Senior Attorney Advisor, 
Office of General Counsel, by electronic mail at hearnt@fhfb.gov or by 
telephone at (202) 408-2976; Scott L. Smith, Associate Director, Office 
of Supervision, by electronic mail at smiths@fhfb.gov or by telephone 
at (202) 408-2991; or Joseph A. McKenzie, Deputy Chief Economist, 
Office of Supervision, by electronic mail at mckenziej@fhfb.gov or by 
telephone at (202) 408-2845. You can send regular mail to the Federal 
Housing Finance Board, 1777 F Street, NW., Washington, DC 20006.

SUPPLEMENTARY INFORMATION:

I. Statutory and Regulatory Background

A. The Federal Home Loan Bank System (Bank System)

    The Bank System consists of 12 Banks and the Office of Finance 
(OF). The Banks are instrumentalities of the United States organized 
under the authority of the Federal Home Loan Bank Act (Bank Act). 12 
U.S.C. 1421 et seq. The Banks also are ``government sponsored 
enterprises'' (GSEs), i.e., Federally chartered but privately owned 
institutions created by Congress to support the financing of housing 
and community lending by their members. See 12 U.S.C. 
1422a(a)(3)(B)(ii), 1430(i), and 1430(j). By virtue of their GSE 
status, the Banks are able to borrow in the capital markets at 
favorable rates. The Banks are then able to pass along that funding 
advantage to their members--and ultimately to consumers--by providing 
advances (secured loans) and other financial services to their members 
(principally, depository institutions) at rates that the members 
generally could not obtain elsewhere.
    The Banks, along with the OF, operate under the supervision of the 
Finance Board. The primary duty of the Finance Board is to ensure that 
the Banks operate in a financially safe and sound manner. Consistent 
with that duty, the Finance Board is required to supervise the Banks, 
ensure that they carry out

[[Page 9552]]

their housing finance mission, and ensure that they remain adequately 
capitalized and able to raise funds in the capital markets. 12 U.S.C. 
1422a(a)(3)(A) and (B).

B. Finance Board Investigatory Powers

    Congress has delegated to the Finance Board broad authority to 
fulfill its statutory mandates. Section 2B of the Bank Act states that 
the Finance Board has the power ``[t]o supervise the Federal Home Loan 
Banks and to promulgate and enforce such regulations and orders as are 
necessary from time to time to carry out the provisions of this chapter 
[i.e., Chapter 11 of Title 12, codified at 12 U.S.C. 1421-1449].'' 12 
U.S.C. 1422b(a)(1). Section 20 of the Bank Act provides the Finance 
Board with the authority to require, ``from time to time, [but] at 
least annually,'' examinations and reports of condition of all the 
Banks in such form as the Finance Board prescribes. 12 U.S.C. 1440. 
Section 20 also vests in Finance Board examiners ``the same powers and 
privileges as are vested in'' examiners under the National Bank Act and 
the Federal Reserve Act. These Acts, in turn, provide examiners with 
sweeping powers, including the power to ``make a thorough examination 
of all the affairs of the bank.'' 12 U.S.C. 481. Thus, the Finance 
Board and its examiners have been vested with broad access to the 
books, records, and information of the Banks in order to fulfill the 
statutory mission of the Finance Board.
    The United States Supreme Court has recognized the importance of 
this broad access to the ability of financial institution regulators to 
perform their supervisory functions. In United States v. Philadelphia 
National Bank, 374 U.S. 321 (1963), the Court stated:

    [P]erhaps the most effective weapon of federal regulation of 
banking is the broad visitorial power of federal bank examiners. 
Whenever the agencies deem it necessary, they may order `a thorough 
examination of all the affairs of the bank' * * * [citation 
omitted]. Such examinations are frequent and intensive. In addition, 
the banks are required to furnish detailed periodic reports of their 
operations to the supervisory agencies [citation omitted]. In this 
way the agencies maintain virtually a day-to-day surveillance of the 
American banking system. And should they discover unsound banking 
practices, they are equipped with a formidable array of sanctions. * 
* * As a result of this panoply of sanctions, recommendations by the 
agencies concerning banking practices tend to be followed by bankers 
without the necessity of formal compliance proceedings. 1 Davis, 
Administrative Law (1958), s. 4.04.

374 U.S. at 329 (emphasis added). An agency's authority to require 
informational reports stems from its investigatory power, which 
generally is distinct from, and in addition to, its authority exercised 
under the Administrative Procedures Act (APA) to engage in rulemaking 
or to issue adjudicative orders. A principal legislative sponsor of the 
APA described investigative activity during floor debate in the House 
of Representatives as follows:

    This third type of administrative compulsory power may be 
incidental to either legislative or judicial powers of 
administrative agencies, or it may be entirely independent of 
either. I refer to the compulsory action of administrative agencies 
when they issue subpoenas, require records or reports, or undertake 
mandatory inspections. These functions are investigatory in nature.

92 Cong. Rec. 5648 (1948), cited in Appeal of FTC Line of Business 
Report Litigation, 595 F.2d 685, 695-696 (D.C. Cir.) (per curiam), 
cert. denied sub nom. Milliken & Co. v. FTC, 439 U.S. 958 (1978).
    An agency's exercise of its investigatory power will be upheld if 
the request for information is ``reasonably relevant.'' FTC v. 
Invention Submission Corp., 965 F.2d 1086, 1089 (D.C. Cir. 1992). 
Courts have said that an agency's own appraisal of relevancy must be 
accepted as long as it is not ``obviously wrong.'' 965 F.2d at 1089. 
Furthermore, an agency may delegate its investigatory powers to staff. 
See Fleming v. Mohawk Wrecking & Lumber Co., 331 U.S. 111 (1947).
    The Bank Act makes clear that Congress intended the Finance Board 
to operate with broad investigatory powers to ensure that the Banks 
operate in a safe and sound manner and carry out their housing finance 
mission. See 12 U.S.C. 1422a, 1422b(a)(1), and 1440. To date, Finance 
Board staff has exercised the agency's investigatory power to require 
the Banks to submit call reports as well as instrument level data used 
by the Banks to run their market risk models. The Finance Board also 
has delegated to the OF the authority to require the Banks to submit 
information needed to prepare the combined financial statements of the 
Bank System. 12 CFR 989.3.
    The Finance Board also may impose reporting requirements using its 
rulemaking authority. 12 U.S.C. 1422b(a)(1). The Finance Board has 
exercised its rulemaking authority to require reports related to a 
Bank's condition or activities, including: Bank director eligibility 
(12 CFR 915.7 and 915.12(a)); a Bank's performance in achieving certain 
goals described in the Bank's strategic plan (12 CFR 917.5(c)); capital 
member stock purchases (12 CFR 925.20); stock advances and commitments 
outstanding to each member (12 CFR 950.4(e)); Affordable Housing 
Program (AHP) (12 CFR 951.3(d)); Advisory Council annual analysis (12 
CFR 951.4(f)(3)); Affordable Housing Reserve Fund annual statement (12 
CFR 951.15(b)); Community Investment and Cash Advance (CICA) reporting 
(12 CFR 952.6); and acquired member assets (AMA) (12 CFR 955.4).

C. Reorganization of Reporting Requirements

    To make it easier for interested parties to locate Bank reporting 
requirements and to simplify the process for modifying these 
requirements as circumstances warrant, the Finance Board intends to 
issue many of the requirements in a manual to be titled Data Reporting 
Manual (DRM). For certain reporting requirements currently contained in 
Finance Board regulations, the Finance Board proposes to relocate them 
to the DRM. The DRM would include instructions addressing data 
definitions as well as requirements concerning data elements, reporting 
format, reporting method (e.g., electronic or paper), record retention, 
timeliness, reporting frequency, and certification. Going forward, 
changes to the reporting requirements will be made by amendments to the 
DRM.\1\
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    \1\ The delegation of authority to the OF in Sec.  989.3 to 
exercise the Finance Board's investigatory powers will remain. Also, 
the disclosure reporting to the Securities and Exchange Commission 
required by 12 CFR 998.2(b) is unaffected by the reorganization 
discussed in this notice. Lastly, the reporting requirements 
concerning capital stock for voting purposes (12 CFR 915.4), results 
of director elections (12 CFR 915.8), and capital requirements (12 
CFR 932.7) will not be affected by this rulemaking. These three 
requirements do not present the same issues as the sections the 
Finance Board proposes to amend and are most useful to the reader in 
their current location and form.
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    The DRM would represent an enforceable order issued pursuant to the 
Finance Board's investigatory powers. The reorganization of reporting 
requirements, and the proposed amendments to Finance Board regulations, 
will allow the Finance Board to address problems it has experienced 
with the timeliness, accuracy, and completeness of data reporting by 
the Banks. The Bank Act gives the Finance Board enforcement authority 
to redress, among other things, violations of the Bank Act, or any law, 
order, rule, or regulation. 12 U.S.C. 1422b(a)(5). After this 
rulemaking is issued in final form and the DRM is issued, the Finance 
Board will deem

[[Page 9553]]

data reporting problems as violations of an investigatory order and, 
where applicable, violations of the regulations being proposed today.
    Reporting requirements imposed pursuant to the Finance Board's 
investigatory powers are not subject to the notice and comment 
provisions of the Administrative Procedures Act. See Appeal of FTC Line 
of Business Report Litigation, 595 F.2d at 695-696. Nevertheless, the 
Finance Board recognizes that changes to reporting requirements can 
impose regulatory burden. The Finance Board also recognizes the utility 
of input from the Banks and the public in determining what information 
is appropriate to collect. Thus, where practicable, Finance Board staff 
will consult with the Banks and the public with respect to significant 
changes in the DRM before changes are made. Moreover, information 
collections that are subject to the Paperwork Reduction Act, such as 
those related to the AMA rule, will continue to be published in the 
Federal Register for comment in accordance with that Act. The Finance 
Board welcomes written comments on all aspects of the proposed rule.

II. Analysis of Proposed Rule

A. Part 914

    The Finance Board is proposing to add a new part 914 to its 
regulations that would address a Bank's obligation with respect to 
reporting requirements and make its books and records available to the 
Finance Board. Section 914.1 would contain a number of provisions 
directed at how a Bank reports data to the Finance Board and makes its 
books and records available to Finance Board examiners. Section 
914.1(a) would define the term regulatory report to mean any report of 
raw or summary data required to evaluate the safe and sound condition 
and operations of a Bank or to determine compliance with any: (1) 
Provision in the Bank Act, or any law, order, rule, or regulation; (2) 
condition imposed in writing by the Finance Board in connection with 
the granting of any application or other request by a Bank; or (3) 
written agreement entered into by the Finance Board and a Bank. Section 
914.1(b) would provide examples of a regulatory report, including the 
call report, reports of information to the OF pursuant to Sec.  989.3, 
and reports of instrument-level data submitted for risk assessment 
purposes. The term regulatory report also includes reports related to a 
Bank's housing mission achievement, such as reports related to AMA, 
AHP, Community Investment Program (CIP), and other CICA programs.
    Section 914.2 would require each Bank to file regulatory reports 
with the Finance Board pursuant to the Finance Board's forms and 
instructions for the reports. These reports must be filed no later than 
the deadline established by the Finance Board. In some cases, this will 
involve reporting at regular intervals; in other cases, it will involve 
responding to Finance Board requests for information that are in 
addition to the information submitted at regular intervals.
    Section 914.3 would require each Bank to make its books and records 
available upon request by the Finance Board within a reasonable period 
at a location acceptable to the Finance Board. Section 914.3 
establishes presumptions about what the Finance Board considers a 
reasonable period of time to respond to requests that occur during and 
outside of an ongoing examination as well as those that occur at other 
times.

B. Part 917

    Part 917 of the Finance Board's current regulations sets forth 
various powers and responsibilities of Bank boards of directors. In 
addition to setting out the basic fiduciary duties of care and loyalty 
for each director, part 917 requires each board, as a group, to take 
specific actions with respect to functions such as risk management, 
strategic planning, internal controls, budget, and oversight of the 
audit function.
    The Finance Board is proposing to revise part 917 to require each 
Bank's board of directors to have in place at all times policies and 
procedures to ensure that the Bank complies with Finance Board 
reporting requirements. Given the Finance Board's need for Bank 
information that is timely, accurate, and complete, it is essential 
that responsibility for maintaining that information and reporting it 
to the Finance Board rest at the highest level of each Bank's corporate 
structure.\2\
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    \2\ In recent proposed changes to its corporate governance 
regulation, the Office of Federal Housing Enterprise Oversight 
proposed including a similar change to the duties of the boards of 
directors for Fannie Mae and Freddie Mac. See 12 CFR 1710.15(b)(7) 
(proposed). 69 FR 19126, 19131 (April 12, 2004).
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C. Parts 915, 917, 925, 950, 951, 952, and 955

    The Finance Board is proposing to revise various reporting 
requirements set forth in parts 915, 917, 925, 950, 951, 952, and 955 
to refer the reader to forms and instructions issued pursuant to the 
DRM when this rulemaking is issued in final form.

III. Paperwork Reduction Act

    The proposed rule would have no substantive effect on any 
collection of information covered by the Paperwork Reduction Act of 
1995 (PRA). See 44 U.S.C. 3501 et seq. Therefore, the Finance Board has 
not submitted this proposal to the Office of Management and Budget 
(OMB) for review. Data requests that will be set out in the DRM or 
other investigatory orders that are ``information collections'' as that 
term is used in the PRA will be submitted to OMB for review and 
published in the Federal Register in accordance with the PRA's 
requirements.

IV. Regulatory Flexibility Act

    The proposed rule would apply only to the Banks, 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). Thus, in accordance with 
section 605(b) of the RFA, 5 U.S.C. 605(b), the Finance Board hereby 
certifies that the proposed rule, if promulgated as a final rule, will 
not have a significant economic impact on a substantial number of small 
entities.

List of Subjects

12 CFR Part 900

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

12 CFR Part 914

    Federal home loan banks, Reporting and recordkeeping requirements.

12 CFR Part 915

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

12 CFR Part 917

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



12 CFR Part 925

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

12 CFR Part 950

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

[[Page 9554]]

12 CFR Part 951

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

12 CFR Part 952

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

12 CFR Part 955

    Credit, Federal home loan banks, Reporting and recordkeeping 
requirements.
    For the reasons stated in the preamble, the Finance Board proposes 
to amend 12 CFR, chapter IX, as follows:

PART 900--GENERAL DEFINITIONS APPLYING TO ALL FINANCE BOARD 
REGULATIONS

    1. The authority citation for part 900 continues to read as 
follows:

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

    2. Amend Sec.  900.2 by adding in alphabetical order, a defined 
term to read as follows:


Sec.  900.2  Terms relating to Bank operations, mission and 
supervision.

* * * * *
    Data Reporting Manual or DRM means a manual issued by the Finance 
Board and amended from time to time containing reporting requirements 
for the Banks.
* * * * *
    3. Add part 914 to title 12, chapter IX, to read as follows:

PART 914--DATA AVAILABILITY AND REPORTING

Sec.
914.1 Definition.
914.2 Filing regulatory reports.
914.3 Access to books and records.

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


Sec.  914.1  Definition.

    (a) Definition. Regulatory report means any report of raw or 
summary data needed to evaluate the safe and sound condition and 
operations of a Bank or to determine compliance with any:
    (1) Provision in the Act or other law, order, rule, or regulation;
    (2) Condition imposed in writing by the Finance Board in connection 
with the granting of any application or other request by a Bank; or
    (3) Written agreement entered into between the Finance Board and a 
Bank.
    (b) Examples. Regulatory reports include:
    (1) Call reports, reports of information to the OF pursuant to 
Sec.  989.3, and reports of instrument-level risk modeling data;
    (2) Reports related to a Bank's housing mission achievement, such 
as reports related to AMA, AHP, CIP, and other CICA programs; and
    (3) Reports submitted in response to requests to one or more Banks 
for information on a nonrecurring basis.


Sec.  914.2  Filing regulatory reports.

    Each Bank shall file regulatory reports with the Finance Board in 
accordance with the forms, instructions, and schedules issued by the 
Finance Board from time to time. Regulatory reports shall be filed 
according to the schedule established by the Finance Board. If no 
regularly scheduled reporting dates are established, regulatory reports 
shall be filed as requested by the Finance Board.


Sec.  914.3  Access to books and records.

    Each Bank shall make its books and records readily available for 
inspection and other supervisory purposes within a reasonable period 
upon request by the Finance Board, at a location acceptable to the 
Finance Board. For requests for documents made during the course of an 
onsite examination and pursuant to the examination's scope, a 
reasonable period is presumed to be one business day. For requests for 
documents made outside of an onsite examination, a reasonable period is 
presumed to be three business days.

PART 915--BANK DIRECTOR ELIGIBILITY, APPOINTMENT, AND ELECTIONS

    4. The authority citation for part 915 continues to read as 
follows:

    Authority: 12 U.S.C. 1422a(a)(3), 1422b(a), 1426, 1427, and 
1432.

    5. Revise Sec.  915.7(a) to read as follows:


Sec.  915.7  Eligibility requirements for elective directors.

    (a) Eligibility verification. Based on the information provided on 
the director eligibility certification form prescribed in the Data 
Reporting Manual issued by the Finance Board, as amended from time to 
time, a Bank shall verify that each nominee meets all of the 
eligibility requirements for elective directors set forth in the Act 
and this part before placing that nominee on the ballot prepared by the 
Bank under Sec.  915.8(a). A Bank shall not declare elected a nominee 
that it has reason to know is ineligible to serve, nor shall it seat a 
director-elect that it has reason to know is ineligible to serve.
* * * * *
    6. Revise Sec.  915.12(a) to read as follows:


Sec.  915.12  Reporting requirements for Bank directors.

    (a) Annual reporting. On or before March 1 of each year, each 
director shall submit to his or her Bank the appropriate executed 
director eligibility certification, as prescribed in the Data Reporting 
Manual issued by the Finance Board, as amended from time to time. The 
Bank shall promptly forward to the Finance Board a copy of the 
certification filed by each appointive director.
* * * * *

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

    7. The authority citation for part 917 continues to read as 
follows:

    Authority: 12 U.S.C. 1422a(a)(3), 1422b(a)(1), 1426, 1427, 
1432(a), 1436(a), and 1440.

    8. Revise Sec.  917.5(c) to read as follows:


Sec.  917.5  Strategic business plan.

* * * * *
    (c) Report to the Finance Board. Each Bank shall submit to the 
Finance Board a report analyzing and describing the Bank's performance 
in achieving the goals described in paragraph (a)(3) of this section in 
accordance with the instructions provided in the Data Reporting Manual 
issued by the Finance Board, as amended from time to time.
    9. Add Sec.  917.11 to read as follows:


Sec.  917.11  Regulatory reporting.

    Each Bank's board of directors shall have in place at all times 
policies and procedures to ensure that the Bank complies with data 
reporting requirements set forth in Finance Board regulations and 
orders.

PART 925--MEMBERS OF THE BANKS

    10. The authority citation for part 925 continues to read as 
follows:

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

    11. Revise Sec.  925.20(e) to read as follows:


Sec.  925.20  Stock purchase.

* * * * *
    (e) Reports. The Bank shall make quarterly reports to the Finance 
Board setting forth purchases by institutions approved for membership 
of their minimum stock requirement pursuant to this section in 
accordance with the instructions provided in the Data Reporting Manual 
issued by the Finance Board, as amended from time to time.

[[Page 9555]]

PART 950--ADVANCES

    12. The authority citation for part 950 continues to read as 
follows:

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

    13. Revise Sec.  950.4(e) to read as follows:


Sec.  950.4  Limitations on access to advances.

* * * * *
    (e) Reporting. (1) Each Bank shall provide the Finance Board with a 
report of the advances and commitments outstanding to each of its 
members in accordance with the instructions provided in the Data 
Reporting Manual issued by the Finance Board, as amended from time to 
time.
    (2) Each Bank shall, upon written request from a member's 
appropriate federal banking agency or insurer, provide to such entity 
information on advances and commitments outstanding to the member.
* * * * *

PART 951--AFFORDABLE HOUSING PROGRAM

    14. The authority citation for part 951 continues to read as 
follows:

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

    15. Revise Sec.  951.3(d) to read as follows:


Sec.  951.3  Operation of Program and adoption of AHP implementation 
plan.

* * * * *
    (d) Reporting. Each Bank shall provide such reports and 
documentation concerning its Program in accordance with the 
instructions provided in the Data Reporting Manual issued by the 
Finance Board, as amended from time to time.
    16. Revise Sec.  951.4(f)(3) to read as follows:


Sec.  951.4  Advisory Councils.

* * * * *
    (f) * * *
    (3) Annual report to the Finance Board. Each Advisory Council shall 
submit to the Finance Board, in accordance with the instructions 
provided in the Data Reporting Manual issued by the Finance Board, as 
amended from time to time, its analysis of the low- and moderately low-
income housing and community lending activity of the Bank by which it 
is appointed.
* * * * *
    17. Revise Sec.  951.15(b) to read as follows:


Sec.  951.15  Affordable Housing Reserve Fund.

* * * * *
    (b) Annual statement. By January 15 of each year, each Bank shall 
provide to the Finance Board, in accordance with the instructions 
provided in the Data Reporting Manual issued by the Finance Board, as 
amended from time to time, a statement indicating the amount of unused 
and uncommitted funds from the previous year, if any, which will be 
deposited in the Affordable Housing Reserve Fund.
* * * * *

PART 952--COMMUNITY INVESTMENT CASH ADVANCE PROGRAMS

    18. The authority citation for part 952 continues to read as 
follows:

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

    19. Revise Sec.  952.6(a) to read as follows:


Sec.  952.6  Reporting.

    (a) Each Bank annually shall provide to the Finance Board, in 
accordance with the instructions provided in the Data Reporting Manual 
issued by the Finance Board, as amended from time to time, a Targeted 
Community Lending Plan.
* * * * *

PART 955--ACQUIRED MEMBER ASSETS

    20. The authority citation for part 955 continues to read as 
follows:

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

    21. Revise Sec.  955.4 to read as follows:


Sec.  955.4  Reporting requirement for acquired member assets.

    Each Bank shall report information related to AMA in accordance 
with the instructions provided in the Data Reporting Manual issued by 
the Finance Board, as amended from time to time.

Appendix A [Removed]

    22. Remove Appendix A to part 955.

Appendix B [Removed]

    23. Remove Appendix B to part 955.

    Dated: February 9, 2005.

    By the Board of Directors of the Federal Housing Finance Board.
Ronald A. Rosenfeld,
Chairman.
[FR Doc. 05-3717 Filed 2-25-05; 8:45 am]
BILLING CODE 6725-01-P