Extensions of Credit by Federal Reserve Banks, 79306-79307 [E8-30819]

Download as PDF 79306 Federal Register / Vol. 73, No. 249 / Monday, December 29, 2008 / Rules and Regulations FEDERAL RESERVE SYSTEM (a) Payments received under this subpart will be divided in the manner specified in the applicable contract or agreement and CCC will ensure that producers, who would have an interest in acreage being offered, receive treatment that CCC deems to be equitable, as determined by the Deputy Administrator. CCC may refuse to enter into a contract when there is a disagreement among persons seeking enrollment as to a person’s eligibility to participate in the contract as a tenant and there is insufficient evidence to indicate whether the person seeking participation as a tenant does or does not have an interest in the acreage offered for enrollment in ACRE. (b) CCC may remove an operator or tenant from an ACRE contract when the operator or tenant: (1) Requests, in writing to be removed from the ACRE contract; (2) Files for bankruptcy and the trustee or debtor in possession fails to affirm the contract, to the extent permitted by the provisions of applicable bankruptcy laws; (3) Dies during the contract period and the Administrator of the estate fails to succeed to the contract within a period of time determined by the Deputy Administrator; or (4) Is the subject of an order of a court of competent jurisdiction requiring the removal from the ACRE contract of the operator or tenant and such order is received by FSA, as determined by the Deputy Administrator. (c) In addition to the provisions in paragraph (b) of this section, tenants must maintain their tenancy throughout the contract period in order to remain on a contract. Tenants who fail to maintain tenancy on the acreage under contract, including failure to comply with provisions under applicable State law, may be removed from a contract by CCC. CCC will assume the tenancy is being maintained unless notified otherwise by a ACRE participant specified in the applicable contract. dwashington3 on PROD1PC60 with RULES § 1412.80 Division of program payments and provisions relating to tenants and sharecroppers. [Regulation A] 12 CFR Part 201 Signed in Washington, DC, December 19, 2008. Glen L. Keppy, Acting Executive Vice President, Commodity Credit Corporation. [FR Doc. E8–30763 Filed 12–23–08; 11:15 am] BILLING CODE 3410–05–P VerDate Aug<31>2005 13:28 Dec 24, 2008 Jkt 217001 Extensions of Credit by Federal Reserve Banks AGENCY: Board of Governors of the Federal Reserve System. ACTION: Final rule. SUMMARY: The Board of Governors of the Federal Reserve System (Board) has adopted final amendments to its Regulation A to reflect the Board’s approval of a decrease in the primary credit rate at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically decreased by formula as a result of the Board’s primary credit rate action. DATES: The amendments to part 201 (Regulation A) are effective December 29, 2008. The rate changes for primary and secondary credit were effective on the dates specified in 12 CFR 201.51, as amended. FOR FURTHER INFORMATION CONTACT: Jennifer J. Johnson, Secretary of the Board (202/452–3259); for users of Telecommunication Devices for the Deaf (TDD) only, contact 202/263–4869. SUPPLEMENTARY INFORMATION: The Federal Reserve Banks make primary and secondary credit available to depository institutions as a backup source of funding on a short-term basis, usually overnight. The primary and secondary credit rates are the interest rates that the twelve Federal Reserve Banks charge for extensions of credit under these programs. In accordance with the Federal Reserve Act, the primary and secondary credit rates are established by the boards of directors of the Federal Reserve Banks, subject to the review and determination of the Board. The Board approved requests by the Reserve Banks to decrease by 75 basis points the primary credit rate in effect at each of the twelve Federal Reserve Banks, thereby decreasing from 1.25 percent to 0.50 percent the rate that each Reserve Bank charges for extensions of primary credit. As a result of the Board’s action on the primary credit rate, the rate that each Reserve Bank charges for extensions of secondary credit automatically decreased from 1.75 percent to 1.00 percent under the secondary credit rate formula. The final amendments to Regulation A reflect these rate changes. The 75-basis-point decrease in the primary credit rate was associated with a decrease in the target for the federal PO 00000 Frm 00040 Fmt 4700 Sfmt 4700 funds rate (from 1.00 percent to a target range of 0 to 1⁄4 percent) approved by the Federal Open Market Committee (Committee) and announced at the same time. A press release announcing these actions indicated that: Since the Committee’s last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined. Financial markets remain quite strained and credit conditions tight. Overall, the outlook for economic activity has weakened further. Meanwhile, inflationary pressures have diminished appreciably. In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate further in coming quarters. The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability. In particular, the Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time. Regulatory Flexibility Act Certification Pursuant to the Regulatory Flexibility Act (5 U.S.C. 605(b)), the Board certifies that the new primary and secondary credit rates will not have a significantly adverse economic impact on a substantial number of small entities because the final rule does not impose any additional requirements on entities affected by the regulation. Administrative Procedure Act The Board did not follow the provisions of 5 U.S.C. 553(b) relating to notice and public participation in connection with the adoption of these amendments because the Board for good cause determined that delaying implementation of the new primary and secondary credit rates in order to allow notice and public comment would be unnecessary and contrary to the public interest in fostering price stability and sustainable economic growth. For these same reasons, the Board also has not provided 30 days prior notice of the effective date of the rule under section 553(d). 12 CFR Chapter II List of Subjects in 12 CFR Part 201 Banks, Banking, Federal Reserve System, Reporting and recordkeeping. Authority and Issuance For the reasons set forth in the preamble, the Board is amending 12 CFR Chapter II to read as follows: ■ E:\FR\FM\29DER1.SGM 29DER1 Federal Register / Vol. 73, No. 249 / Monday, December 29, 2008 / Rules and Regulations PART 201—EXTENSIONS OF CREDIT BY FEDERAL RESERVE BANKS (REGULATION A) Authority: 12 U.S.C. 248(i)–(j), 343 et seq., 347a, 347b, 347c, 348 et seq., 357, 374, 374a, and 461. 2. In § 201.51, paragraphs (a) and (b) are revised to read as follows: ■ 1. The authority citation for part 201 continues to read as follows: ■ Federal Reserve Bank (b) Secondary credit. The interest rates for secondary credit provided to 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 * * By order of the Board of Governors of the Federal Reserve System, December 22, 2008. Jennifer J. Johnson, Secretary of the Board. [FR Doc. E8–30819 Filed 12–24–08; 8:45 am] BILLING CODE 6210–01–P NATIONAL CREDIT UNION ADMINISTRATION 12 CFR Parts 712 and 741 RIN 3133—AD20 Credit Union Service Organizations dwashington3 on PROD1PC60 with RULES AGENCY: National Credit Union Administration (NCUA). ACTION: Final rule. SUMMARY: NCUA is issuing a final rule amending its credit union service organization (CUSO) regulation. The amendment adds two new categories of VerDate Aug<31>2005 13:28 Dec 24, 2008 Jkt 217001 December December December December December December December December December December December December 17, 16, 18, 16, 16, 16, 16, 17, 16, 16, 17, 16, 2008. 2008. 2008. 2008. 2008. 2008. 2008. 2008. 2008. 2008. 2008. 2008. 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Effective December December December December December December December December December December December December 17, 16, 18, 16, 16, 16, 16, 17, 16, 16, 17, 16, 2008. 2008. 2008. 2008. 2008. 2008. 2008. 2008. 2008. 2008. 2008. 2008. permissible CUSO activities: Credit card loan origination and payroll processing services. The amendment also adds new examples of permissible CUSO activities within existing categories and expands the permissible scope of certain services to include persons eligible for credit union membership. The amendment imposes new regulatory limits on the ability of credit unions to recapitalize their CUSOs in certain circumstances. Although the CUSO rule generally only applies to federal credit unions (FCUs), the amendment revises and extends to all federally insured credit unions the provisions ensuring that credit union regulators have access to books and records and that CUSOs are operated as separate legal entities; however, the rule also contains a procedure through which state regulators may seek an exemption from the access to records provisions for credit unions in their state. The amendment clarifies that CUSOs may buy and sell participations in loans they are authorized to originate. Finally, the amendment deletes as unnecessary the section in the current rule concerning amendment requests. These amendments clarify the rule, enhance CUSO operations, and address safety and soundness concerns. DATES: This rule will become effective on January 28, 2009. FOR FURTHER INFORMATION CONTACT: Ross P. Kendall, Staff Attorney, Office of General Counsel, at the above address or telephone (703) 518–6540. SUPPLEMENTARY INFORMATION: advances and discounts made under the primary, * 1 The primary, secondary, and seasonal credit rates described in this section apply to both Effective Rate Boston ............................................................................................... New York ........................................................................................... Philadelphia ....................................................................................... Cleveland .......................................................................................... Richmond .......................................................................................... Atlanta ............................................................................................... Chicago ............................................................................................. St. Louis ............................................................................................ Minneapolis ....................................................................................... Kansas City ....................................................................................... Dallas ................................................................................................ San Francisco ................................................................................... * (a) Primary credit. The interest rates for primary credit provided to depository institutions under § 201.4(a) are: depository institutions under 201.4(b) are: Federal Reserve Bank * § 201.51 Interest rates applicable to credit extended by a Federal Reserve Bank.1 Rate Boston ............................................................................................... New York ........................................................................................... Philadelphia ....................................................................................... Cleveland .......................................................................................... Richmond .......................................................................................... Atlanta ............................................................................................... Chicago ............................................................................................. St. Louis ............................................................................................ Minneapolis ....................................................................................... Kansas City ....................................................................................... Dallas ................................................................................................ San Francisco ................................................................................... 79307 secondary, and seasonal credit programs, respectively. PO 00000 Frm 00041 Fmt 4700 Sfmt 4700 A. Background FCUs have the authority to lend up to 1% of their paid-in and unimpaired capital and surplus and to invest an equivalent amount in credit union organizations. 12 U.S.C.1757(5)(D), (7)(I). NCUA regulates this FCU lending and investing authority in the CUSO rule. 12 CFR Part 712. The CUSO rule permits an FCU to invest in or lend to a CUSO only if the CUSO primarily E:\FR\FM\29DER1.SGM 29DER1

Agencies

[Federal Register Volume 73, Number 249 (Monday, December 29, 2008)]
[Rules and Regulations]
[Pages 79306-79307]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-30819]


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FEDERAL RESERVE SYSTEM

12 CFR Part 201

[Regulation A]


Extensions of Credit by Federal Reserve Banks

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
has adopted final amendments to its Regulation A to reflect the Board's 
approval of a decrease in the primary credit rate at each Federal 
Reserve Bank. The secondary credit rate at each Reserve Bank 
automatically decreased by formula as a result of the Board's primary 
credit rate action.

DATES: The amendments to part 201 (Regulation A) are effective December 
29, 2008. The rate changes for primary and secondary credit were 
effective on the dates specified in 12 CFR 201.51, as amended.

FOR FURTHER INFORMATION CONTACT: Jennifer J. Johnson, Secretary of the 
Board (202/452-3259); for users of Telecommunication Devices for the 
Deaf (TDD) only, contact 202/263-4869.

SUPPLEMENTARY INFORMATION: The Federal Reserve Banks make primary and 
secondary credit available to depository institutions as a backup 
source of funding on a short-term basis, usually overnight. The primary 
and secondary credit rates are the interest rates that the twelve 
Federal Reserve Banks charge for extensions of credit under these 
programs. In accordance with the Federal Reserve Act, the primary and 
secondary credit rates are established by the boards of directors of 
the Federal Reserve Banks, subject to the review and determination of 
the Board.
    The Board approved requests by the Reserve Banks to decrease by 75 
basis points the primary credit rate in effect at each of the twelve 
Federal Reserve Banks, thereby decreasing from 1.25 percent to 0.50 
percent the rate that each Reserve Bank charges for extensions of 
primary credit. As a result of the Board's action on the primary credit 
rate, the rate that each Reserve Bank charges for extensions of 
secondary credit automatically decreased from 1.75 percent to 1.00 
percent under the secondary credit rate formula. The final amendments 
to Regulation A reflect these rate changes.
    The 75-basis-point decrease in the primary credit rate was 
associated with a decrease in the target for the federal funds rate 
(from 1.00 percent to a target range of 0 to \1/4\ percent) approved by 
the Federal Open Market Committee (Committee) and announced at the same 
time. A press release announcing these actions indicated that:

    Since the Committee's last meeting, labor market conditions have 
deteriorated, and the available data indicate that consumer 
spending, business investment, and industrial production have 
declined. Financial markets remain quite strained and credit 
conditions tight. Overall, the outlook for economic activity has 
weakened further.
    Meanwhile, inflationary pressures have diminished appreciably. 
In light of the declines in the prices of energy and other 
commodities and the weaker prospects for economic activity, the 
Committee expects inflation to moderate further in coming quarters.
    The Federal Reserve will employ all available tools to promote 
the resumption of sustainable economic growth and to preserve price 
stability. In particular, the Committee anticipates that weak 
economic conditions are likely to warrant exceptionally low levels 
of the federal funds rate for some time.

Regulatory Flexibility Act Certification

    Pursuant to the Regulatory Flexibility Act (5 U.S.C. 605(b)), the 
Board certifies that the new primary and secondary credit rates will 
not have a significantly adverse economic impact on a substantial 
number of small entities because the final rule does not impose any 
additional requirements on entities affected by the regulation.

Administrative Procedure Act

    The Board did not follow the provisions of 5 U.S.C. 553(b) relating 
to notice and public participation in connection with the adoption of 
these amendments because the Board for good cause determined that 
delaying implementation of the new primary and secondary credit rates 
in order to allow notice and public comment would be unnecessary and 
contrary to the public interest in fostering price stability and 
sustainable economic growth. For these same reasons, the Board also has 
not provided 30 days prior notice of the effective date of the rule 
under section 553(d).

12 CFR Chapter II

List of Subjects in 12 CFR Part 201

    Banks, Banking, Federal Reserve System, Reporting and 
recordkeeping.

Authority and Issuance

0
For the reasons set forth in the preamble, the Board is amending 12 CFR 
Chapter II to read as follows:

[[Page 79307]]

PART 201--EXTENSIONS OF CREDIT BY FEDERAL RESERVE BANKS (REGULATION 
A)

0
1. The authority citation for part 201 continues to read as follows:

    Authority: 12 U.S.C. 248(i)-(j), 343 et seq., 347a, 347b, 347c, 
348 et seq., 357, 374, 374a, and 461.

0
2. In Sec.  201.51, paragraphs (a) and (b) are revised to read as 
follows:


Sec.  201.51   Interest rates applicable to credit extended by a 
Federal Reserve Bank.\1\
---------------------------------------------------------------------------

    \1\ The primary, secondary, and seasonal credit rates described 
in this section apply to both advances and discounts made under the 
primary, secondary, and seasonal credit programs, respectively.
---------------------------------------------------------------------------

    (a) Primary credit. The interest rates for primary credit provided 
to depository institutions under Sec.  201.4(a) are:

------------------------------------------------------------------------
         Federal Reserve Bank            Rate           Effective
------------------------------------------------------------------------
Boston...............................     0.50  December 17, 2008.
New York.............................     0.50  December 16, 2008.
Philadelphia.........................     0.50  December 18, 2008.
Cleveland............................     0.50  December 16, 2008.
Richmond.............................     0.50  December 16, 2008.
Atlanta..............................     0.50  December 16, 2008.
Chicago..............................     0.50  December 16, 2008.
St. Louis............................     0.50  December 17, 2008.
Minneapolis..........................     0.50  December 16, 2008.
Kansas City..........................     0.50  December 16, 2008.
Dallas...............................     0.50  December 17, 2008.
San Francisco........................     0.50  December 16, 2008.
------------------------------------------------------------------------

    (b) Secondary credit. The interest rates for secondary credit 
provided to depository institutions under 201.4(b) are:

------------------------------------------------------------------------
         Federal Reserve Bank            Rate           Effective
------------------------------------------------------------------------
Boston...............................     1.00  December 17, 2008.
New York.............................     1.00  December 16, 2008.
Philadelphia.........................     1.00  December 18, 2008.
Cleveland............................     1.00  December 16, 2008.
Richmond.............................     1.00  December 16, 2008.
Atlanta..............................     1.00  December 16, 2008.
Chicago..............................     1.00  December 16, 2008.
St. Louis............................     1.00  December 17, 2008.
Minneapolis..........................     1.00  December 16, 2008.
Kansas City..........................     1.00  December 16, 2008.
Dallas...............................     1.00  December 17, 2008.
San Francisco........................     1.00  December 16, 2008.
------------------------------------------------------------------------

* * * * *


    By order of the Board of Governors of the Federal Reserve 
System, December 22, 2008.
Jennifer J. Johnson,
Secretary of the Board.
 [FR Doc. E8-30819 Filed 12-24-08; 8:45 am]
BILLING CODE 6210-01-P