Termination of Federal Home Loan Bank Resolution Funding Corporation Obligation, 49477-49478 [2011-20311]

Download as PDF 49477 Federal Register / Vol. 76, No. 154 / Wednesday, August 10, 2011 / Notices SUMMARY: Notice is hereby given that the Federal Deposit Insurance Corporation (Corporation) has been appointed the sole receiver for the following financial institutions effective as of the Date Closed as indicated in the listing. This list (as updated from time to time in the Federal Register) may be relied upon as ‘‘of record’’ notice that the Corporation has been appointed receiver for purposes of the statement of policy published in the July 2, 1992 issue of the Federal Register (57 FR FEDERAL DEPOSIT INSURANCE CORPORATION Update to Notice of Financial Institutions for Which the Federal Deposit Insurance Corporation Has Been Appointed Either Receiver, Liquidator, or Manager AGENCY: Federal Deposit Insurance Corporation. ACTION: Update Listing of Financial Institutions in Liquidation. 29491). For further information concerning the identification of any institutions which have been placed in liquidation, please visit the Corporation Web site at https://www.fdic.gov/bank/ individual/failed/banklist.html or contact the Manager of Receivership Oversight in the appropriate service center. Dated: August 1, 2011. Federal Deposit Insurance Corporation. Pamela Johnson, Regulatory Editing Specialist. INSTITUTIONS IN LIQUIDATION [In alphabetical order] FDIC Ref. No. Bank name City State 10383 ....................... 10384 ....................... 10385 ....................... BankMeridian, N.A. ................................................. Integra Bank National Association ......................... Virginia Business Bank ........................................... Columbia ................................................... Evansville .................................................. Richmond .................................................. SC .... IN ...... VA ..... [FR Doc. 2011–20227 Filed 8–9–11; 8:45 am] BILLING CODE 6714–01–P FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL [Docket No. AS11–23] Consideration of Extenuating Circumstances for Implementation of Modification of Annual National Registry Fee emcdonald on DSK2BSOYB1PROD with NOTICES AGENCY: Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council. ACTION: The ASC is providing notice to all States that it will consider requests for an extension of the effective date of the modified National Registry fee based on extenuating circumstances. SUMMARY: Under authority in the DoddFrank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), the ASC approved a modification of the annual National Registry fee to $40 from the current $25 amount at its meeting on October 13, 2010. The ASC raised the National Registry Fee to support its supervisory activities, including additional authority under the DoddFrank Act (see Bulletin 10–1, Modification of Annual National Registry Fee, 75 FR 65629, October 26, 2010). In the event a State encounters difficulty with implementing the modified National Registry fee by January 1, 2012, the State must notify the ASC no later than October 31, 2011. The ASC will consider a State’s request for an extension of the effective date of the modified National Registry fee when VerDate Mar<15>2010 17:48 Aug 09, 2011 Jkt 223001 extenuating circumstances prevent compliance and the State has acted in good faith to implement any actions necessary for achieving compliance. Extenuating circumstances include, but are not limited to, the following: • The State was not able to enact necessary legislation or promulgate a rulemaking to implement the modified National Registry fee by January 1, 2012. • The State could not exercise emergency or temporary authority, if any, to pass legislation or promulgate a rulemaking to implement the modified National Registry fee by January 1, 2012. • The funds remitted by the State to the ASC to pay the modified National Registry fee would come from a source other than the credentialed appraiser. States must ensure that any request for an extension contains sufficient detail regarding the State’s efforts to achieve compliance to date, and the extenuating circumstances that will prevent compliance. DATES: Effective Date: Immediately. FOR FURTHER INFORMATION CONTACT: James R. Park, Executive Director, at (202) 595–7575, or Alice M. Ritter, General Counsel, at (202) 595–7577, via Internet e-mail at Jim@ASC.gov and Alice@ASC.gov, respectively, or by U.S. Mail at Appraisal Subcommittee, 1401 H Street, NW., Suite 760, Washington, DC 20005. SUPPLEMENTARY INFORMATION: The ASC issued the following Supplement to Bulletin 10–1 Modification of National Registry Fee. This Supplement provides States an opportunity to request an extension of the effective date of the modification in the National Registry Fee based on extenuating circumstances. PO 00000 Frm 00047 Fmt 4703 Sfmt 4703 Date closed 7/29/2011 7/29/2011 7/29/2011 August 4, 2011. Deborah S. Merkle, Chairman. [FR Doc. 2011–20300 Filed 8–9–11; 8:45 am] BILLING CODE 6700–01–P FEDERAL HOUSING FINANCE AGENCY [No. 2011–N–08] Termination of Federal Home Loan Bank Resolution Funding Corporation Obligation AGENCY: Federal Housing Finance Agency. ACTION: Notice. SUMMARY: The Federal Housing Finance Agency (FHFA) has determined that, as of July 15, 2011, the Federal Home Loan Banks (Banks) have satisfied their statutory obligation to contribute a percentage of their annual net earnings toward the interest payments due on bonds issued by the Resolution Funding Corporation (RefCorp). FOR FURTHER INFORMATION CONTACT: Joseph A. McKenzie, Associate Director, Division of Federal Home Loan Bank Regulation, 202–408–2845, Joseph.McKenzie.@fhfa.gov, Federal Housing Finance Agency, 1625 Eye Street, NW., Washington, DC 20006– 4001, or Neil R. Crowley, Deputy General Counsel, 202–343–1316, Neil.Crowley@fhfa.gov, Federal Housing Finance Agency, Fourth Floor, 1700 G Street, NW., Washington, DC 20052. The telephone number for the Telecommunications Device for the Deaf is 800–877–8339. SUPPLEMENTARY INFORMATION: E:\FR\FM\10AUN1.SGM 10AUN1 emcdonald on DSK2BSOYB1PROD with NOTICES 49478 Federal Register / Vol. 76, No. 154 / Wednesday, August 10, 2011 / Notices I. Statutory and Regulatory Background In 1989, Congress established RefCorp as a vehicle to provide funding for the Resolution Trust Corporation to finance its efforts to resolve the savings and loan crisis. 12 U.S.C. 1441b(a), (b). RefCorp issued approximately $30 billion of long-term bonds, the last of which will mature in April 2030. The interest due on the RefCorp bonds is paid from several sources, including contributions from the Banks. As initially enacted, the law required the Banks to contribute $300 million annually toward the RefCorp interest payments. Public Law 101–73, Title V, § 511(a), 103 Stat. 394, (August 9, 1989). In 1999, Congress amended the law to require each Bank to pay 20 percent of its net earnings annually toward the RefCorp interest payments. Public Law 106–102, Title VI, § 607(a), 113 Stat. 1455, (November 12, 1999), codified at 12 U.S.C. 1441b(f)(2)(C)(i). The Banks’ payment obligation was to continue until the value of all payments made by the Banks to RefCorp equaled the value of a benchmark annuity of $300 million per year that commenced on the date that the RefCorp bonds had been issued and ended on the last maturity date for the RefCorp bonds, which is April 15, 2030. The law further directed the Federal Housing Finance Board (Finance Board) to determine annually the extent to which the value of the Banks’ contributions for that year exceeded or fell short of the value of the benchmark annuity. In determining those values, the law required the Finance Board to use present-value factors established in consultation with the Secretary of the Treasury and further required that the Finance Board terminate the Banks’ payment obligation once the value of their payments equaled the value of the benchmark annuity. Regulations of the Finance Board, which remain in effect, address the manner in which the calculations of the Banks’ RefCorp obligation, including its termination, are to be conducted. 12 CFR part 997. In 2008, Congress established FHFA, which, among other things, succeeded to all of the above responsibilities of the Finance Board with respect to the determinations that are to be made regarding the RefCorp payments, and was required to submit semiannual reports to Congress that estimated the projected date on which the Banks would satisfy their obligation to contribute to the RefCorp debt service payments. Public Law 110–289, Title I, § 1101, Title II, §§ 1204, 1213, Title III, § 1312, 122 Stat. 2661, 2785–86, 2791, 2798 (July 30, 2008). VerDate Mar<15>2010 17:48 Aug 09, 2011 Jkt 223001 II. Termination of Payment Obligation FEDERAL MARITIME COMMISSION The Banks make their RefCorp contributions on a quarterly basis, and FHFA determines how the value of those payments compares to the value of the benchmark annuity on a quarterly basis as well. To the extent that any quarterly RefCorp payments exceed $75 million (one quarter of the $300 million benchmark annuity) FHFA applies the excess portion to simulate the purchase of zero-coupon Treasury bonds, which ‘‘defeases’’ the most-distant of the Banks’ remaining RefCorp payments and effectively shortens the duration of their repayment obligation. Since 1999, all but two of the Banks’ quarterly RefCorp contributions have exceeded the $75 million benchmark, which has caused the termination date to move incrementally closer. In its most recent report to Congress on the RefCorp obligation, FHFA projected that if the Banks’ quarterly earnings subsequent to December 31, 2010, were to equal their average quarterly income over the preceding four quarters, then their final RefCorp contribution would be made with the payment due on July 15, 2011.1 After consulting with the Department of the Treasury and conducting the calculations in accordance with 12 CFR Part 997, FHFA determined that the remaining amount owed by the Banks for the RefCorp debt service was $75,148,203.13, which amount the Banks paid on July 15, 2011. Accordingly, the Director has determined that the payment made on July 15, 2011, caused the value of all RefCorp payments made by the Banks to that date to equal the value of the benchmark annuity, which terminates the obligation of the Banks to contribute toward the debt service for the RefCorp bonds. Notice of Agreements Filed Authority: 12 U.S.C. 1441b(f)(2)(C)(iii). Dated: August 5th, 2011. Edward J. DeMarco, Acting Director, Federal Housing Finance Agency. The Commission hereby gives notice of the filing of the following agreements under the Shipping Act of 1984. Interested parties may submit comments on the agreements to the Secretary, Federal Maritime Commission, Washington, DC 20573, within ten days of the date this notice appears in the Federal Register. Copies of the agreements are available through the Commission’s Web site (https:// www.fmc.gov) or by contacting the Office of Agreements at (202)- 523–5793 or tradeanalysis@fmc.gov. Agreement No.: 011383–045. Title: Venezuelan Discussion Agreement. ¨ Parties: Hamburg-Sud; King Ocean Service de Venezuela; Seaboard Marine Ltd., and SeaFreight Line, Ltd. Filing Party: Wayne R. Rohde, Esq.; Cozen O’Conner; 1627 I Street, NW., Suite 1100; Washington, DC 20006– 4007. Synopsis: The amendment would replace King Ocean Service de Venezuela with King Ocean Services Limited, Inc. as a party to the agreement. Agreement No.: 201162–008. Title: NYSA–ILA Assessment Agreement. Parties: International Longshoremen’s Association and New York Shipping Association. Filing Parties: Donato Caruso, Esq.; The Lambos Firm; 303 South Broadway, Suite 410; Tarrytown, NY 10591 and Andre Mazzola, Esq.; Marrinan & Mazzola Mardon, P.C.; 26 Broadway, 17th Floor; New York, NY 10004. Synopsis: The amendment reduces the assessment rate on certain containers in the Bermuda trade. By Order of the Federal Maritime Commission. Dated: August 5, 2011. Karen V. Gregory, Secretary. [FR Doc. 2011–20329 Filed 8–9–11; 8:45 am] BILLING CODE 6730–01–P [FR Doc. 2011–20311 Filed 8–9–11; 8:45 am] FEDERAL RESERVE SYSTEM BILLING CODE 8070–01–P 1 See Letters from Edward J. DeMarco, Acting Director, to Senator Tim Johnson, Chairman, and Senator Richard C. Shelby, Ranking Member, of the Committee on Banking, Housing, and Urban Affairs, and to Representative Spencer Bachus, Chairman, and Representative Barney Frank, Ranking Member, of the Committee on Financial Services, all dated February 4, 2011. PO 00000 Frm 00048 Fmt 4703 Sfmt 4703 Formations of, Acquisitions by, and Mergers of Bank Holding Companies The companies listed in this notice have applied to the Board for approval, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) (BHC Act), Regulation Y (12 CFR part 225), and all other applicable statutes E:\FR\FM\10AUN1.SGM 10AUN1

Agencies

[Federal Register Volume 76, Number 154 (Wednesday, August 10, 2011)]
[Notices]
[Pages 49477-49478]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-20311]


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FEDERAL HOUSING FINANCE AGENCY

[No. 2011-N-08]


Termination of Federal Home Loan Bank Resolution Funding 
Corporation Obligation

AGENCY: Federal Housing Finance Agency.

ACTION: Notice.

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

SUMMARY: The Federal Housing Finance Agency (FHFA) has determined that, 
as of July 15, 2011, the Federal Home Loan Banks (Banks) have satisfied 
their statutory obligation to contribute a percentage of their annual 
net earnings toward the interest payments due on bonds issued by the 
Resolution Funding Corporation (RefCorp).

FOR FURTHER INFORMATION CONTACT: Joseph A. McKenzie, Associate 
Director, Division of Federal Home Loan Bank Regulation, 202-408-2845, 
Joseph.McKenzie.@fhfa.gov, Federal Housing Finance Agency, 1625 Eye 
Street, NW., Washington, DC 20006-4001, or Neil R. Crowley, Deputy 
General Counsel, 202-343-1316, Neil.Crowley@fhfa.gov, Federal Housing 
Finance Agency, Fourth Floor, 1700 G Street, NW., Washington, DC 20052. 
The telephone number for the Telecommunications Device for the Deaf is 
800-877-8339.

SUPPLEMENTARY INFORMATION: 

[[Page 49478]]

I. Statutory and Regulatory Background

    In 1989, Congress established RefCorp as a vehicle to provide 
funding for the Resolution Trust Corporation to finance its efforts to 
resolve the savings and loan crisis. 12 U.S.C. 1441b(a), (b). RefCorp 
issued approximately $30 billion of long-term bonds, the last of which 
will mature in April 2030. The interest due on the RefCorp bonds is 
paid from several sources, including contributions from the Banks.
    As initially enacted, the law required the Banks to contribute $300 
million annually toward the RefCorp interest payments. Public Law 101-
73, Title V, Sec.  511(a), 103 Stat. 394, (August 9, 1989). In 1999, 
Congress amended the law to require each Bank to pay 20 percent of its 
net earnings annually toward the RefCorp interest payments. Public Law 
106-102, Title VI, Sec.  607(a), 113 Stat. 1455, (November 12, 1999), 
codified at 12 U.S.C. 1441b(f)(2)(C)(i). The Banks' payment obligation 
was to continue until the value of all payments made by the Banks to 
RefCorp equaled the value of a benchmark annuity of $300 million per 
year that commenced on the date that the RefCorp bonds had been issued 
and ended on the last maturity date for the RefCorp bonds, which is 
April 15, 2030.
    The law further directed the Federal Housing Finance Board (Finance 
Board) to determine annually the extent to which the value of the 
Banks' contributions for that year exceeded or fell short of the value 
of the benchmark annuity. In determining those values, the law required 
the Finance Board to use present-value factors established in 
consultation with the Secretary of the Treasury and further required 
that the Finance Board terminate the Banks' payment obligation once the 
value of their payments equaled the value of the benchmark annuity. 
Regulations of the Finance Board, which remain in effect, address the 
manner in which the calculations of the Banks' RefCorp obligation, 
including its termination, are to be conducted. 12 CFR part 997. In 
2008, Congress established FHFA, which, among other things, succeeded 
to all of the above responsibilities of the Finance Board with respect 
to the determinations that are to be made regarding the RefCorp 
payments, and was required to submit semiannual reports to Congress 
that estimated the projected date on which the Banks would satisfy 
their obligation to contribute to the RefCorp debt service payments. 
Public Law 110-289, Title I, Sec.  1101, Title II, Sec. Sec.  1204, 
1213, Title III, Sec.  1312, 122 Stat. 2661, 2785-86, 2791, 2798 (July 
30, 2008).

II. Termination of Payment Obligation

    The Banks make their RefCorp contributions on a quarterly basis, 
and FHFA determines how the value of those payments compares to the 
value of the benchmark annuity on a quarterly basis as well. To the 
extent that any quarterly RefCorp payments exceed $75 million (one 
quarter of the $300 million benchmark annuity) FHFA applies the excess 
portion to simulate the purchase of zero-coupon Treasury bonds, which 
``defeases'' the most-distant of the Banks' remaining RefCorp payments 
and effectively shortens the duration of their repayment obligation.
    Since 1999, all but two of the Banks' quarterly RefCorp 
contributions have exceeded the $75 million benchmark, which has caused 
the termination date to move incrementally closer. In its most recent 
report to Congress on the RefCorp obligation, FHFA projected that if 
the Banks' quarterly earnings subsequent to December 31, 2010, were to 
equal their average quarterly income over the preceding four quarters, 
then their final RefCorp contribution would be made with the payment 
due on July 15, 2011.\1\
---------------------------------------------------------------------------

    \1\ See Letters from Edward J. DeMarco, Acting Director, to 
Senator Tim Johnson, Chairman, and Senator Richard C. Shelby, 
Ranking Member, of the Committee on Banking, Housing, and Urban 
Affairs, and to Representative Spencer Bachus, Chairman, and 
Representative Barney Frank, Ranking Member, of the Committee on 
Financial Services, all dated February 4, 2011.
---------------------------------------------------------------------------

    After consulting with the Department of the Treasury and conducting 
the calculations in accordance with 12 CFR Part 997, FHFA determined 
that the remaining amount owed by the Banks for the RefCorp debt 
service was $75,148,203.13, which amount the Banks paid on July 15, 
2011.
    Accordingly, the Director has determined that the payment made on 
July 15, 2011, caused the value of all RefCorp payments made by the 
Banks to that date to equal the value of the benchmark annuity, which 
terminates the obligation of the Banks to contribute toward the debt 
service for the RefCorp bonds.

    Authority:  12 U.S.C. 1441b(f)(2)(C)(iii).

    Dated: August 5th, 2011.
Edward J. DeMarco,
Acting Director, Federal Housing Finance Agency.
[FR Doc. 2011-20311 Filed 8-9-11; 8:45 am]
BILLING CODE 8070-01-P
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