Extensions of Credit by Federal Reserve Banks, 79306-79307 [E8-30819]
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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
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December
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December
December
December
December
December
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17,
16,
18,
16,
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16,
16,
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2008.
2008.
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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,
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17,
16,
2008.
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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.
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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]
=======================================================================
-----------------------------------------------------------------------
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
