Federal Deposit Insurance Corporation Limit Change, 41256-41258 [2012-17061]

Download as PDF tkelley on DSK3SPTVN1PROD with RULES 41256 Federal Register / Vol. 77, No. 135 / Friday, July 13, 2012 / Rules and Regulations a drought that does not meet the criteria in paragraph (a) of this section to result in production losses that constitute a natural disaster. (3) The Secretary or the Secretary’s designee will make disaster area determinations. The Secretary may delegate the authority to the SED. In such case, the SED will act on behalf of the Secretary, subject to review by DAFP as may be appropriate and consistent with the delegation. The delegation of authority to the SED may be revoked by the authority making that delegation or by other authorized person. In all cases, DAFP may reverse any SED determination made in accordance with this section unless the delegation to the SED specifies that such review is not allowed. (c) Eligible production losses. For purposes of making determinations under paragraph (b) of this section, in order for an area to be declared a disaster area under paragraph (b) of this section based on production losses, the county must have had production losses of 30 percent of at least one crop in the county as the result of a natural disaster. (d) Discretionary exception to production losses for designating a county as a disaster county. For purposes of the EM program only, unless otherwise specified in the designation, a county may be designated by DAFP as a designated disaster county even though the conditions specified in paragraphs (a) through (c) of this section are not present so long as the disaster has otherwise produced such significant production losses, or other such extenuating circumstances so as to justify, in the opinion of the Secretary, the designation of a county as a disaster area. In making this determination, the Secretary may consider all relevant factors including such factors as the nature and extent of production losses; the number of farmers who have sustained qualifying production losses; the number of farmers that other lenders in the county indicate they will not be in position to provide emergency financing; whether the losses will cause undue hardship to a certain segment of farmers in the county; whether damage to particular crops has resulted in undue hardship; whether other Federal or State benefit programs, which are being made available due to the same disaster, will consequently lessen undue hardship and the demand for EM; and any other factors considered relevant. § 759.6 FSA for coverage of the EM Program as follows: (1) Secretarial designations. When production losses meet the requirements in § 759.5 and the county has been designated as a disaster area for that reason, or when the discretionary exception to production losses for EM under § 759.5(d) has been exercised, the primary and contiguous counties will be areas in which otherwise eligible producers can receive EM loans. (2) Physical loss notification. When only qualifying physical losses occur, the SED will submit a request to the FSA Administrator to make a determination that a natural disaster has occurred in a county, resulting in severe physical losses. If the FSA Administrator determines that such a natural disaster has occurred, then EM can be made available to eligible farmers for physical losses only in the primary county (the county that was the subject of that determination) and the counties contiguous to that county. (3) USDA quarantine. Any quarantine imposed by the Secretary of Agriculture under the Plant Protection Act or the animal quarantine laws, as defined in section 2509 of the Food, Agriculture, Conservation, and Trade Act of 1990, automatically authorizes EM for production and physical losses resulting from the quarantine in a primary county (the county in which the quarantine was in force) and (where the quarantine effects extend beyond that county) the counties contiguous to that primary county. (4) Presidential declaration. Whenever the President declares a Major Disaster Declaration or an Emergency Declaration, FSA will make EM available to eligible applicants in declared and contiguous counties, provided: (i) The Presidential declaration is not solely for Category A or Category B Public Assistance or Hazard Mitigation Grant Assistance, and (ii) The Presidential Major Disaster declaration is for losses due to severe, general disaster conditions including but not limited to conditions such as flood, hurricane, or earthquake. (b) [Reserved] PART 762—GUARANTEED FARM LOANS 2. The authority citation for part 762 would continue to read as follows: ■ Authority: 5 U.S.C. 301 and 7 U.S.C. 1989. EM to be made available. (a) For purposes of the EM Program under part 764, subpart I, of this chapter, a county will be considered an eligible disaster area as designated by VerDate Mar<15>2010 16:29 Jul 12, 2012 Jkt 226001 § 762.106 [Amended] 3. Amend § 762.106(b)(2) and (c)(4) by removing the reference ‘‘part 1945, subpart A of this title’’ and adding in its ■ PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 place each time it appears ‘‘§ 761.2(b) and part 759 of this chapter’’. CHAPTER XVIII—RURAL HOUSING SERVICE, RURAL BUSINESSCOOPERATIVE SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE PART 1945 [REMOVED] ■ 4. Remove part 1945. Signed on July 10, 2012. Karis T. Gutter, Under Secretary, Farm and Foreign Agricultural Services. Signed on July 10, 2012. Dallas Tonsager, Under Secretary, Rural Development. [FR Doc. 2012–17137 Filed 7–12–12; 8:45 am] BILLING CODE 3410–05–P DEPARTMENT OF AGRICULTURE Rural Housing Service Rural Business-Cooperative Service Rural Utilities Service Farm Service Agency 7 CFR Part 1902 RIN 0575–AC94 Federal Deposit Insurance Corporation Limit Change Rural Housing Service, Rural Business-Cooperative Service, Rural Utilities Service and Farm Service Agency, USDA. ACTION: Direct final rule. AGENCY: Rural Development is amending its regulations to address the change in the standard maximum deposit insurance amount under the Federal Deposit Insurance Corporation (FDIC). SUMMARY: This rule is effective without further action September 26, 2012 unless we receive written adverse comments on or before September 11, 2012. If adverse comment is received, we will publish a timely withdrawal of the rule in the Federal Register. ADDRESSES: You may submit comments to this rule by any of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Mail: Submit written comments via the U.S. Postal Service to the Branch Chief, Regulations and Paperwork Management Branch, U.S. Department of Agriculture, STOP 0742, 1400 DATES: E:\FR\FM\13JYR1.SGM 13JYR1 Federal Register / Vol. 77, No. 135 / Friday, July 13, 2012 / Rules and Regulations Independence Avenue SW., Washington, DC 20250–0742. • Hand Delivery/Courier: Submit written comments via Federal Express Mail or other courier service requiring a street address to the Branch Chief, Regulations and Paperwork Management Branch, U.S. Department of Agriculture, 300 7th Street SW., 7th Floor, Washington, DC 20024. All written comments will be available for public inspection during regular work hours at 300 7th Street SW., 7th Floor address listed above. FOR FURTHER INFORMATION CONTACT: Ms. Linda Price, Rural Development, U.S. Department of Agriculture, 1400 Independence Avenue SW., Stop 0786, Washington, DC 20250–0786; email: linda.price@wdc.usda.gov; telephone (202) 690–2151. SUPPLEMENTARY INFORMATION: Executive Order 12866—Classification This rule has been determined to be not significant for purposes of Executive Order 12866 and has not been reviewed by the Office of Management and Budget (OMB). tkelley on DSK3SPTVN1PROD with RULES Programs Affected The programs described by this rule are listed in the Catalog of Federal Domestic Assistance Programs under number(s) 10.405 Farm Labor Housing Loans and Grants, 10.410 Very Low to Moderate Income Housing Loans, 10.411 Rural Housing Site Loans and Self-Help Housing Land Development Loans, 10.415 Rural Rental Housing Loans, 10.417 Very Low-Income Housing Repair Loans and Grants, 10.420 Rural Self-Help Housing Technical Assistance, 10.427 Rural Rental Assistance Payments, 10.433 Rural Housing Preservation Grants, 10.444 Direct Housing-Natural Disaster Loans and Grants, 10.446 Rural Community Development Initiative, 10.447 The Rural Development MultiFamily Housing Revitalization Demonstration Program, 10.448 Rural Development Multi-Family Housing Voucher Demonstration Program, 10.759 Part 1774 Special Evaluation Assistance for Rural Communities and Household Programs (SEARCH), 10.760 Water and Waste Disposal Systems for Rural Communities, 10.761 Technical Assistance and Training Grants, 10.762 Solid Waste Management Grants, 10.763 Emergency Community Water Assistance Grants, 10.766 Community Facilities Loans and Grants, 10.770 Water and Waste Disposal Loans and Grants (section 306C), 10.780 Community Facilities Loans and Grants, 10.781 Water and Waste Disposal VerDate Mar<15>2010 16:29 Jul 12, 2012 Jkt 226001 Systems for Rural Communities— ARRA, 10.788 Very low to Moderate Income Housing Loans—Direct, 10.864 Grant Program to Establish a Fund for Financing Water and Wastewater Projects. Non-Discrimination Statement The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because of all or part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at (202) 720– 2600 (voice and TDD). To file a complaint or discrimination, write USDA, Director, Office of Civil Rights, 1400 Independence Avenue SW., Washington, DC 20250–9419, or call (800) 795–3272 (voice) or (202) 720– 6382 (TDD). USDA is an equal opportunity provider, employer, and lender. Civil Rights Impact Statement No major civil rights impact is likely to result from the announcement of this Notice. It will not have a negative civil rights impact on very-low income, lowincome, moderate income and minority poplulations. Environmental Impact Statement This document has been reviewed in accordance with 7 CFR part 1940, subpart G, ‘‘Environmental Program.’’ Rural Development has determined that this action does not constitute a major Federal action significantly affecting the quality of the human environment and, in accordance with the National Environmental Policy Act (NEPA) of 1969, 42 U.S.C. 4321 et seq., an Environmental Impact Statement is not required. Executive Order 12372, Intergovernmental consultation The program is subject to the provisions of Executive Order 12372, which requires intergovernmental consultation with State and local officials. Consultation will be completed at the time of the action performed. Executive Order 12988, Civil Justice This rule has been reviewed under Executive Order 12988, Civil Justice PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 41257 Reform. The Agency has determined that this rule meets the applicable standards provided in section 3 of the Executive Order. Additionally, (1) all State and local laws and regulations that are in conflict with this rule will be preempted; (2) no retroactive effect will be given to the rule; and (3) administrative appeal procedures, if any, must be exhausted before litigation against the Department or its Agencies may be initiated, in accordance with the regulations of the National Appeals Division of USDA at 7 CFR part 11. Executive Order 13132, Federalism The policies contained in this rule do not have any substantial direct effect on States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. Nor does this final rule impose substantial direct compliance costs on State and local Governments. Therefore, consultation with States is not required. Regulatory Flexibility Act Certification Under section 605(b) of the Regulatory Flexibility Act, 5 U.S.C. 605(b), the Agency certifies that this rule will not have a significant economic impact on a substantial number of small entities. The Agency made this determination based on the fact that this regulation only impacts those who choose to participate in the program. Small entity applicants will not be impacted to a greater extent than large entity applicants. Unfunded Mandates This rule contains no Federal mandates (under the regulatory provisions of Title II of the Unfunded Mandates Reform Act of 1995) for State, local, and tribal Governments or the private sector. Thus, this rule is not subject to the requirements of sections 202 and 205 of the Unfunded Mandates Reform Act of 1995. Executive Order 13175, Consultation and Coordination With Indian Tribal Governments This executive order imposes requirements on Rural Development in the development of regulatory policies that have tribal implications or preempt tribal laws. Rural Development has determined that the final rule does not have a substantial direct effect on one or more Indian tribe(s) or on either the relationship or the distribution of powers and responsibilities between the Federal Government and Indian tribes. Thus, this final rule is not subject to the requirements of Executive Order 13175. E:\FR\FM\13JYR1.SGM 13JYR1 41258 Federal Register / Vol. 77, No. 135 / Friday, July 13, 2012 / Rules and Regulations If a tribe determines that this rule has implications of which Rural Development is not aware and would like to engage with Rural Development on this rule, please contact Rural Development’s Native American Coordinator at AIAN@wdc.usda.gov. Paperwork Reduction Act This rule contains no new reporting or recordkeeping burdens under OMB control number 0575–0158 that would require approval under the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35). E-Government Act Compliance Rural Development is committed to complying with the E-Government Act, to promote the use of the Internet and other information technologies, to provide increased opportunities for citizens to access Government information and services electronically. tkelley on DSK3SPTVN1PROD with RULES I. Background Section 335(a), of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111–203, July 21, 2010) (‘‘Act’’) increased the standard maximum deposit insurance amount to $250,000 under the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)(E)). This change is also reflected in FDIC’s regulations at 12 CFR 330.1(o). The change made under the Act was in response to the instability of the financial markets. The permanent increase from $100,000 to $250,000 took a measure of insecurity out of the market. Rural Development funds, disbursed to a financial institution on behalf of a Rural Development borrower, are now protected up to $250,000. Similar to what is currently stated in 7 CFR 1902.6 and 1902.7, anything above the FDIC maximum insured amount will be required to be secured by pledging collateral. II. Discussion of Change The Agency is revising 7 CFR 1902.6(d) and 1902.7(a), to reflect the FDIC’s change in the standard maximum deposit insurance amount. Accordingly, the Agency is revising the above referenced regulations in this final rule to change the reference from $100,000 to a more general reference of the maximum amount insurable by the Federal government. By making this change, Rural Development’s regulations will remain consistent with the FDIC regulations even if the FDIC limit is revised again or the authority for deposit insurance is transferred to another Federal government entity. VerDate Mar<15>2010 16:29 Jul 12, 2012 Jkt 226001 List of Subjects in 7 CFR Part 1902 Accounting; Banks, banking; Grant programs—Housing and community development; Loan programs— Agriculture; Loan programs—Housing and community development. For the reasons set forth in the preamble, chapter XVIII, title 7, of the Code of Federal Regulations is amended as follows: CHAPTER XVIII—RURAL HOUSING SERVICE, RURAL BUSINESSCOOPERATIVE SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY DEPARTMENT OF AGRICULTURE PART 1902—SUPERVISED BANK ACCOUNTS 1. The authority citation for part 1902 continues to read as follows: ■ Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 7 U.S.C. 6991, et seq.; 42 U.S.C. 1480; Reorganization Plan No. 2 of 1953 (5 U.S.C. App.). Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds 2. Paragraph (d) § 1902.6 is revised to read as follows. ■ § 1902.6 Establishing supervised bank accounts. * * * * * (d) For each borrower, if the amount of any loan and grant funds, plus any borrower contributions and funds from other sources to be deposited in the supervised bank account will exceed the maximum amount insurable by the Federal government, the financial institution will be required to pledge collateral for the excess over that limit before the deposit is made (see § 1902.7 of this subpart). If the supervised bank account is a joint account, any amount over the maximum amount insurable by the federal government must be collateralized. * * * * * ■ 3. Paragraph (a) of § 1902.7 is revised to read as follows: § 1902.7 Pledging collateral for deposit of funds in supervised bank accounts. (a) Funds in excess of the maximum amount insurable by the Federal government, per financial institution, deposited for borrowers in supervised bank accounts, must be secured by pledging acceptable collateral with the Federal Reserve Bank (FRB) in an amount not less than the excess. If the supervised bank account is a joint PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 account, any amount over the maximum amount insurable by the federal government must be collateralized. * * * * * Dated: June 8, 2012. Dallas Tonsager, Under Secretary, Rural Development. Dated: June 1, 2012. Michael T. Scuse, Under Secretary, Farm and Foreign Agriculture Services. [FR Doc. 2012–17061 Filed 7–12–12; 8:45 am] BILLING CODE 3410–XV–P DEFENSE NUCLEAR FACILITIES SAFETY BOARD 10 CFR Part 1703 FOIA Fee Schedule Update Defense Nuclear Facilities Safety Board. ACTION: Establishment of FOIA Fee Schedule. AGENCY: The Defense Nuclear Facilities Safety Board is publishing its Freedom of Information Act (FOIA) Fee Schedule Update pursuant to the Board’s regulations. DATES: Effective Date: July 23, 2012. FOR FURTHER INFORMATION CONTACT: Debra H. Richardson, Deputy General Manager, Defense Nuclear Facilities Safety Board, 625 Indiana Avenue NW., Suite 700, Washington, DC 20004–2901, (202) 694–7060. SUPPLEMENTARY INFORMATION: The FOIA requires each Federal agency covered by the Act to specify a schedule of fees applicable to processing of requests for agency records. 5 U.S.C. 552(a)(4)(i). On June 1, 2012 the Board published for comment in the Federal Register its Proposed FOIA Fee Schedule, 77 FR 32433. No comments were received in response to that notice, and the Board is now establishing the Fee Schedule. Pursuant to 10 CFR 1703.107(b)(6) of the Board’s regulations, the Board’s General Manager will update the FOIA Fee Schedule once every 12 months. The previous Fee Schedule Update went into effect on July 29, 2011. 76 FR 43819. SUMMARY: Board Action Accordingly, the Board issues the following schedule of updated fees for services performed in response to FOIA requests: E:\FR\FM\13JYR1.SGM 13JYR1

Agencies

[Federal Register Volume 77, Number 135 (Friday, July 13, 2012)]
[Rules and Regulations]
[Pages 41256-41258]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-17061]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service

Rural Business-Cooperative Service

Rural Utilities Service

Farm Service Agency

7 CFR Part 1902

RIN 0575-AC94


Federal Deposit Insurance Corporation Limit Change

AGENCY: Rural Housing Service, Rural Business-Cooperative Service, 
Rural Utilities Service and Farm Service Agency, USDA.

ACTION: Direct final rule.

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

SUMMARY: Rural Development is amending its regulations to address the 
change in the standard maximum deposit insurance amount under the 
Federal Deposit Insurance Corporation (FDIC).

DATES: This rule is effective without further action September 26, 2012 
unless we receive written adverse comments on or before September 11, 
2012. If adverse comment is received, we will publish a timely 
withdrawal of the rule in the Federal Register.

ADDRESSES: You may submit comments to this rule by any of the following 
methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Submit written comments via the U.S. Postal Service 
to the Branch Chief, Regulations and Paperwork Management Branch, U.S. 
Department of Agriculture, STOP 0742, 1400

[[Page 41257]]

Independence Avenue SW., Washington, DC 20250-0742.
     Hand Delivery/Courier: Submit written comments via Federal 
Express Mail or other courier service requiring a street address to the 
Branch Chief, Regulations and Paperwork Management Branch, U.S. 
Department of Agriculture, 300 7th Street SW., 7th Floor, Washington, 
DC 20024.
    All written comments will be available for public inspection during 
regular work hours at 300 7th Street SW., 7th Floor address listed 
above.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Price, Rural Development, 
U.S. Department of Agriculture, 1400 Independence Avenue SW., Stop 
0786, Washington, DC 20250-0786; email: linda.price@wdc.usda.gov; 
telephone (202) 690-2151.

SUPPLEMENTARY INFORMATION:

Executive Order 12866--Classification

    This rule has been determined to be not significant for purposes of 
Executive Order 12866 and has not been reviewed by the Office of 
Management and Budget (OMB).

Programs Affected

    The programs described by this rule are listed in the Catalog of 
Federal Domestic Assistance Programs under number(s) 10.405 Farm Labor 
Housing Loans and Grants, 10.410 Very Low to Moderate Income Housing 
Loans, 10.411 Rural Housing Site Loans and Self-Help Housing Land 
Development Loans, 10.415 Rural Rental Housing Loans, 10.417 Very Low-
Income Housing Repair Loans and Grants, 10.420 Rural Self-Help Housing 
Technical Assistance, 10.427 Rural Rental Assistance Payments, 10.433 
Rural Housing Preservation Grants, 10.444 Direct Housing-Natural 
Disaster Loans and Grants, 10.446 Rural Community Development 
Initiative, 10.447 The Rural Development Multi-Family Housing 
Revitalization Demonstration Program, 10.448 Rural Development Multi-
Family Housing Voucher Demonstration Program, 10.759 Part 1774 Special 
Evaluation Assistance for Rural Communities and Household Programs 
(SEARCH), 10.760 Water and Waste Disposal Systems for Rural 
Communities, 10.761 Technical Assistance and Training Grants, 10.762 
Solid Waste Management Grants, 10.763 Emergency Community Water 
Assistance Grants, 10.766 Community Facilities Loans and Grants, 10.770 
Water and Waste Disposal Loans and Grants (section 306C), 10.780 
Community Facilities Loans and Grants, 10.781 Water and Waste Disposal 
Systems for Rural Communities--ARRA, 10.788 Very low to Moderate Income 
Housing Loans--Direct, 10.864 Grant Program to Establish a Fund for 
Financing Water and Wastewater Projects.

Non-Discrimination Statement

    The U.S. Department of Agriculture (USDA) prohibits discrimination 
in all its programs and activities on the basis of race, color, 
national origin, age, disability, and where applicable, sex, marital 
status, familial status, parental status, religion, sexual orientation, 
genetic information, political beliefs, reprisal, or because of all or 
part of an individual's income is derived from any public assistance 
program. (Not all prohibited bases apply to all programs.) Persons with 
disabilities who require alternative means for communication of program 
information (Braille, large print, audiotape, etc.) should contact 
USDA's TARGET Center at (202) 720-2600 (voice and TDD). To file a 
complaint or discrimination, write USDA, Director, Office of Civil 
Rights, 1400 Independence Avenue SW., Washington, DC 20250-9419, or 
call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal 
opportunity provider, employer, and lender.

Civil Rights Impact Statement

    No major civil rights impact is likely to result from the 
announcement of this Notice. It will not have a negative civil rights 
impact on very-low income, low-income, moderate income and minority 
poplulations.

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR part 1940, 
subpart G, ``Environmental Program.'' Rural Development has determined 
that this action does not constitute a major Federal action 
significantly affecting the quality of the human environment and, in 
accordance with the National Environmental Policy Act (NEPA) of 1969, 
42 U.S.C. 4321 et seq., an Environmental Impact Statement is not 
required.

Executive Order 12372, Intergovernmental consultation

    The program is subject to the provisions of Executive Order 12372, 
which requires intergovernmental consultation with State and local 
officials. Consultation will be completed at the time of the action 
performed.

Executive Order 12988, Civil Justice

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. The Agency has determined that this rule meets the 
applicable standards provided in section 3 of the Executive Order. 
Additionally, (1) all State and local laws and regulations that are in 
conflict with this rule will be preempted; (2) no retroactive effect 
will be given to the rule; and (3) administrative appeal procedures, if 
any, must be exhausted before litigation against the Department or its 
Agencies may be initiated, in accordance with the regulations of the 
National Appeals Division of USDA at 7 CFR part 11.

Executive Order 13132, Federalism

    The policies contained in this rule do not have any substantial 
direct effect on States, on the relationship between the National 
Government and the States, or on the distribution of power and 
responsibilities among the various levels of government. Nor does this 
final rule impose substantial direct compliance costs on State and 
local Governments. Therefore, consultation with States is not required.

Regulatory Flexibility Act Certification

    Under section 605(b) of the Regulatory Flexibility Act, 5 U.S.C. 
605(b), the Agency certifies that this rule will not have a significant 
economic impact on a substantial number of small entities. The Agency 
made this determination based on the fact that this regulation only 
impacts those who choose to participate in the program. Small entity 
applicants will not be impacted to a greater extent than large entity 
applicants.

Unfunded Mandates

    This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the Unfunded Mandates Reform Act of 1995) for 
State, local, and tribal Governments or the private sector. Thus, this 
rule is not subject to the requirements of sections 202 and 205 of the 
Unfunded Mandates Reform Act of 1995.

Executive Order 13175, Consultation and Coordination With Indian Tribal 
Governments

    This executive order imposes requirements on Rural Development in 
the development of regulatory policies that have tribal implications or 
preempt tribal laws. Rural Development has determined that the final 
rule does not have a substantial direct effect on one or more Indian 
tribe(s) or on either the relationship or the distribution of powers 
and responsibilities between the Federal Government and Indian tribes. 
Thus, this final rule is not subject to the requirements of Executive 
Order 13175.

[[Page 41258]]

If a tribe determines that this rule has implications of which Rural 
Development is not aware and would like to engage with Rural 
Development on this rule, please contact Rural Development's Native 
American Coordinator at AIAN@wdc.usda.gov.

Paperwork Reduction Act

    This rule contains no new reporting or recordkeeping burdens under 
OMB control number 0575-0158 that would require approval under the 
Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).

E-Government Act Compliance

    Rural Development is committed to complying with the E-Government 
Act, to promote the use of the Internet and other information 
technologies, to provide increased opportunities for citizens to access 
Government information and services electronically.

I. Background

    Section 335(a), of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Pub. L. 111-203, July 21, 2010) (``Act'') increased the 
standard maximum deposit insurance amount to $250,000 under the Federal 
Deposit Insurance Act (12 U.S.C. 1821(a)(1)(E)). This change is also 
reflected in FDIC's regulations at 12 CFR 330.1(o). The change made 
under the Act was in response to the instability of the financial 
markets. The permanent increase from $100,000 to $250,000 took a 
measure of insecurity out of the market. Rural Development funds, 
disbursed to a financial institution on behalf of a Rural Development 
borrower, are now protected up to $250,000. Similar to what is 
currently stated in 7 CFR 1902.6 and 1902.7, anything above the FDIC 
maximum insured amount will be required to be secured by pledging 
collateral.

II. Discussion of Change

    The Agency is revising 7 CFR 1902.6(d) and 1902.7(a), to reflect 
the FDIC's change in the standard maximum deposit insurance amount. 
Accordingly, the Agency is revising the above referenced regulations in 
this final rule to change the reference from $100,000 to a more general 
reference of the maximum amount insurable by the Federal government. By 
making this change, Rural Development's regulations will remain 
consistent with the FDIC regulations even if the FDIC limit is revised 
again or the authority for deposit insurance is transferred to another 
Federal government entity.

List of Subjects in 7 CFR Part 1902

    Accounting; Banks, banking; Grant programs--Housing and community 
development; Loan programs--Agriculture; Loan programs--Housing and 
community development.

    For the reasons set forth in the preamble, chapter XVIII, title 7, 
of the Code of Federal Regulations is amended as follows:

CHAPTER XVIII--RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE 
SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY DEPARTMENT OF 
AGRICULTURE

PART 1902--SUPERVISED BANK ACCOUNTS

0
1. The authority citation for part 1902 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 7 U.S.C. 6991, et seq.; 
42 U.S.C. 1480; Reorganization Plan No. 2 of 1953 (5 U.S.C. App.).

Subpart A--Supervised Bank Accounts of Loan, Grant, and Other Funds

0
2. Paragraph (d) Sec.  1902.6 is revised to read as follows.


Sec.  1902.6  Establishing supervised bank accounts.

* * * * *
    (d) For each borrower, if the amount of any loan and grant funds, 
plus any borrower contributions and funds from other sources to be 
deposited in the supervised bank account will exceed the maximum amount 
insurable by the Federal government, the financial institution will be 
required to pledge collateral for the excess over that limit before the 
deposit is made (see Sec.  1902.7 of this subpart). If the supervised 
bank account is a joint account, any amount over the maximum amount 
insurable by the federal government must be collateralized.
* * * * *

0
3. Paragraph (a) of Sec.  1902.7 is revised to read as follows:


Sec.  1902.7  Pledging collateral for deposit of funds in supervised 
bank accounts.

    (a) Funds in excess of the maximum amount insurable by the Federal 
government, per financial institution, deposited for borrowers in 
supervised bank accounts, must be secured by pledging acceptable 
collateral with the Federal Reserve Bank (FRB) in an amount not less 
than the excess. If the supervised bank account is a joint account, any 
amount over the maximum amount insurable by the federal government must 
be collateralized.
* * * * *

    Dated: June 8, 2012.
Dallas Tonsager,
Under Secretary, Rural Development.
    Dated: June 1, 2012.
Michael T. Scuse,
Under Secretary, Farm and Foreign Agriculture Services.
[FR Doc. 2012-17061 Filed 7-12-12; 8:45 am]
BILLING CODE 3410-XV-P

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