Regulation A: Extensions of Credit by Federal Reserve Banks, 59923-59924 [2019-24273]
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Federal Register / Vol. 84, No. 216 / Thursday, November 7, 2019 / Rules and Regulations
for amounts greater than $500,000 or for
advances to borrowers outside the
Continental United States. * * *
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Subpart E—Borrower Investments
§ 1744.200
Subchapter I—Administrative Regulations
[Amended]
27. Amend § 1744.200 by removing
paragraph (b).
■ 28. Amend § 1744.201 by revising the
definitions of ‘‘Administrator’’ and
‘‘Borrower’’ and removing the definition
of ‘‘RTB’’.
The revisions read as follows:
■
§ 1744.201
Definitions.
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*
Administrator means the
Administrator of the Rural Utilities
Service (RUS).
*
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*
Borrower means any organization
which has an outstanding loan made by
RUS or guaranteed by RUS, or which is
seeking such financing.
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PART 1751—TELECOMMUNICATIONS
SYSTEM PLANNING AND DESIGN
CRITERIA, AND PROCEDURES
29. The authority citation for part
1751 continues to read as follows:
■
Authority: 7 U.S.C. 901 et seq., 1921 et
seq.; Pub. L. 103–354, 108 Stat. 3178 (7
U.S.C. 6941 et seq.).
30. Amend § 1751.100 by revising the
definitions of ‘‘Borrower’’ and ‘‘RUS
cost-of-money loan’’ and removing the
definition of ‘‘RTB loan’’.
The revisions read as follows:
■
Definitions.
*
*
*
*
*
Borrower. Any organization that has
received a RUS loan designation
number and which has an outstanding
telephone loan made by RUS or
guaranteed by RUS, or which has a
completed loan application with RUS.
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RUS cost-of-money loan. A loan made
under section 305(d)(2) of the RE Act
bearing interest as determined under 7
CFR 1735.31(c).
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■ 31. Amend § 1751.103 by revising the
second sentence in paragraph (a)
introductory text to read as follows:
§ 1751.103 Loan and loan advance
requirements.
(a) * * *. In particular, beginning
February 13, 1996, RUS will make RUS
hardship and RUS cost-of-money loans
for facilities and other RE Act purposes
in a State only if:
*
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*
VerDate Sep<11>2014
15:54 Nov 06, 2019
PART 2003—ORGANIZATION
32. The authority citation for part
2003 continues to read as follows:
■
Authority: 5 U.S.C. 301; 7 U.S.C. 6941;
and 7 CFR 2.17.
§ 2003.1
[Amended]
33. Amend § 2003.1 by removing the
definition of ‘‘RTB’’.
■ 34. Amend § 2003.22 by revising
paragraphs (b) introductory text, (b)(3)
introductory text, and (b)(3)(iii) to read
as follows:
■
*
§ 1751.100
Chapter XVIII—Rural Housing
Service, Rural Business-Cooperative
Service, Rural Utilities Service, and
Farm Service Agency, Department of
Agriculture
Jkt 250001
§ 2003.22
RUS.
– Functional organization of
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(b) Office of the Administrator.
According to 7 CFR 2.47, the
Administrator has responsibility for
managing and administering the
programs and support functions of RUS
to provide financial and technical
support for rural infrastructure to
include electrification, clean drinking
water, telecommunications, and water
disposal systems, pursuant to the
Consolidated Farm and Rural
Development Act, as amended (7 U.S.C.
1921 et. seq.), and the Rural
Electrification Act of 1936, as amended
(7 U.S.C. 901 et. seq.). The office
develops and implements strategic
plans concerning the Rural
Electrification Act of 1936, as amended.
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(3) Office of Assistant
Administrator—Telecommunications
Program. Headed by the Assistant
Administrator—Telecommunications
Program, this office is responsible to the
Administrator for directing and
coordinating the National Rural
Telecommunications, Distance
Learning, and Telemedicine programs of
RUS. The Assistant Administrator,
Telecommunications Program, is
responsible for developing, maintaining,
and implementing regulations and
program procedures on the processing
and approval of grants, loans, and loanrelated activities for all rural
telecommunications borrowers and
grant recipients. The office directs the
following three divisions:
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(iii) Telecommunications Area
Offices. Headed by area directors, these
four offices are responsible for
administering the Telecommunications,
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Frm 00005
Fmt 4700
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59923
Distance Learning, and Telemedicine
programs for specific geographic areas,
and serving as the single point of
contact for all program applicants and
borrowers within their respective areas.
The offices provide guidance to
applicants and borrowers on RUS loan
policies and procedures and make
recommendations to the Administrator
on applications for loans, guarantees,
and grants. The offices assure that
borrower systems and facilities are
designed and constructed in accordance
with the terms of the loan, acceptable
engineering practices and specifications,
and acceptable loan security standards.
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Chapter XX—[Removed and Reserved]
35. Under the authority of section
6602, Pub. L. 115–334, 132 Stat. 4490,
7 CFR chapter XX, consisting of parts
2200 through 2299, is removed and
reserved.
■
Chad Rupe,
Administrator, Rural Utilities Service.
[FR Doc. 2019–24310 Filed 11–6–19; 8:45 am]
BILLING CODE 3410–15–P
FEDERAL RESERVE SYSTEM
12 CFR Part 201
[Docket No. R–1685; RIN 7100–AF 65]
Regulation A: Extensions of Credit by
Federal Reserve Banks
Board of Governors of the
Federal Reserve System.
ACTION: Final rule.
AGENCY:
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 rate for
primary credit 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:
Effective date: This rule is effective
November 7, 2019.
Applicability date: The rate changes
for primary and secondary credit were
applicable on October 31, 2019.
FOR FURTHER INFORMATION CONTACT:
Sophia H. Allison, Senior Special
Counsel (202–452–3565), or Justyna
Bolter, Senior Attorney (202–452–2686),
Legal Division, or Lyle Kumasaka, Lead
Financial Institution & Policy Analyst
(202–452–2382), or Laura Lipscomb,
Assistant Director (202–912–7964),
Division of Monetary Affairs; for users
SUMMARY:
E:\FR\FM\07NOR1.SGM
07NOR1
59924
Federal Register / Vol. 84, No. 216 / Thursday, November 7, 2019 / Rules and Regulations
of Telecommunications Device for the
Deaf (TDD) only, contact 202–263–4869;
Board of Governors of the Federal
Reserve System, 20th and C Streets NW,
Washington, DC 20551.
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.
On October 30, 2019, the Board voted
to approve a 1⁄4 percentage point
decrease in the primary credit rate in
effect at each of the twelve Federal
Reserve Banks, thereby decreasing from
2.50 percent to 2.25 percent the rate that
each Reserve Bank charges for
extensions of primary credit. In
addition, the Board had previously
approved the renewal of the secondary
credit rate formula, the primary credit
rate plus 50 basis points. Under the
formula, the secondary credit rate in
effect at each of the twelve Federal
Reserve Banks decreased by 1⁄4
percentage point as a result of the
Board’s primary credit rate action,
thereby decreasing from 3.00 percent to
2.75 percent the rate that each Reserve
Bank charges for extensions of
secondary credit. The amendments to
Regulation A reflect these rate changes.
The 1⁄4 percentage point decrease in
the primary credit rate was associated
with a decrease in the target range for
the federal funds rate (from a target
range of 13⁄4 to 2 percent to a target
range of 11⁄2 to 13⁄4 percent) announced
by the Federal Open Market Committee
on October 30, 2019, as described in the
Board’s amendment of its Regulation D
published elsewhere in today’s Federal
Register.
Administrative Procedure Act
In general, the Administrative
Procedure Act (‘‘APA’’) 1 imposes three
principal requirements when an agency
promulgates legislative rules (rules
made pursuant to Congressionallydelegated authority): (1) Publication
with adequate notice of a proposed rule;
(2) followed by a meaningful
opportunity for the public to comment
on the rule’s content; and (3)
publication of the final rule not less
15
U.S.C. 551 et seq.
VerDate Sep<11>2014
15:54 Nov 06, 2019
Jkt 250001
than 30 days before its effective date.
The APA provides that notice and
comment procedures do not apply if the
agency for good cause finds them to be
‘‘unnecessary, impracticable, or contrary
to the public interest.’’ 2 Section 553(d)
of the APA also provides that
publication at least 30 days prior to a
rule’s effective date is not required for
(1) a substantive rule which grants or
recognizes an exemption or relieves a
restriction; (2) interpretive rules and
statements of policy; or (3) a rule for
which the agency finds good cause for
shortened notice and publishes its
reasoning with the rule.3 The APA
further provides that the notice, public
comment, and delayed effective date
requirements of 5 U.S.C. 553 do not
apply ‘‘to the extent that there is
involved . . . a matter relating to agency
management or personnel or to public
property, loans, grants, benefits, or
contracts.’’ 4
Regulation A establishes the interest
rates that the twelve Reserve Banks
charge for extensions of primary credit
and secondary credit. The Board has
determined that the notice, public
comment, and delayed effective date
requirements of the APA do not apply
to these final amendments to Regulation
A. The amendments involve a matter
relating to loans and are therefore
exempt under the terms of the APA.
Furthermore, because delay would
undermine the Board’s action in
responding to economic data and
conditions, the Board has determined
that ‘‘good cause’’ exists within the
meaning of the APA to dispense with
the notice, public comment, and
delayed effective date procedures of the
APA with respect to the final
amendments to Regulation A.
Regulatory Flexibility Analysis
The Regulatory Flexibility Act
(‘‘RFA’’) does not apply to a rulemaking
where a general notice of proposed
rulemaking is not required.5 As noted
previously, a general notice of proposed
rulemaking is not required if the final
rule involves a matter relating to loans.
Furthermore, the Board has determined
that it is unnecessary and contrary to
the public interest to publish a general
notice of proposed rulemaking for this
final rule. Accordingly, the RFA’s
requirements relating to an initial and
final regulatory flexibility analysis do
not apply.
25
U.S.C. 553(b)(3)(A).
U.S.C. 553(d).
4 5 U.S.C. 553(a)(2) (emphasis added).
5 5 U.S.C. 603, 604.
35
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act (‘‘PRA’’) of 1995,6 the
Board reviewed the final rule under the
authority delegated to the Board by the
Office of Management and Budget. The
final rule contains no requirements
subject to the PRA.
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 as follows:
PART 201—EXTENSIONS OF CREDIT
BY FEDERAL RESERVE BANKS
(REGULATION A)
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.
2. In § 201.51, paragraphs (a) and (b)
are revised to read as follows:
■
§ 201.51 Interest rates applicable to credit
extended by a Federal Reserve Bank.3
(a) Primary credit. The interest rate at
each Federal Reserve Bank for primary
credit provided to depository
institutions under § 201.4(a) is 2.25
percent.
(b) Secondary credit. The interest rate
at each Federal Reserve Bank for
secondary credit provided to depository
institutions under 201.4(b) is 2.75
percent.
*
*
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*
*
By order of the Board of Governors of the
Federal Reserve System, November 1, 2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019–24273 Filed 11–6–19; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
12 CFR Part 204
[Docket No. R–1684; RIN 7100–AF 64]
Regulation D: Reserve Requirements
of Depository Institutions
Board of Governors of the
Federal Reserve System.
AGENCY:
6 44 U.S.C. 3506; see 5 CFR part 1320 appendix
A.1.
3 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.
E:\FR\FM\07NOR1.SGM
07NOR1
]]>Agencies
[Federal Register Volume 84, Number 216 (Thursday, November 7, 2019)]
[Rules and Regulations]
[Pages 59923-59924]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24273]
=======================================================================
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FEDERAL RESERVE SYSTEM
12 CFR Part 201
[Docket No. R-1685; RIN 7100-AF 65]
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 rate for primary credit 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:
Effective date: This rule is effective November 7, 2019.
Applicability date: The rate changes for primary and secondary
credit were applicable on October 31, 2019.
FOR FURTHER INFORMATION CONTACT: Sophia H. Allison, Senior Special
Counsel (202-452-3565), or Justyna Bolter, Senior Attorney (202-452-
2686), Legal Division, or Lyle Kumasaka, Lead Financial Institution &
Policy Analyst (202-452-2382), or Laura Lipscomb, Assistant Director
(202-912-7964), Division of Monetary Affairs; for users
[[Page 59924]]
of Telecommunications Device for the Deaf (TDD) only, contact 202-263-
4869; Board of Governors of the Federal Reserve System, 20th and C
Streets NW, Washington, DC 20551.
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.
On October 30, 2019, the Board voted to approve a \1/4\ percentage
point decrease in the primary credit rate in effect at each of the
twelve Federal Reserve Banks, thereby decreasing from 2.50 percent to
2.25 percent the rate that each Reserve Bank charges for extensions of
primary credit. In addition, the Board had previously approved the
renewal of the secondary credit rate formula, the primary credit rate
plus 50 basis points. Under the formula, the secondary credit rate in
effect at each of the twelve Federal Reserve Banks decreased by \1/4\
percentage point as a result of the Board's primary credit rate action,
thereby decreasing from 3.00 percent to 2.75 percent the rate that each
Reserve Bank charges for extensions of secondary credit. The amendments
to Regulation A reflect these rate changes.
The \1/4\ percentage point decrease in the primary credit rate was
associated with a decrease in the target range for the federal funds
rate (from a target range of 1\3/4\ to 2 percent to a target range of
1\1/2\ to 1\3/4\ percent) announced by the Federal Open Market
Committee on October 30, 2019, as described in the Board's amendment of
its Regulation D published elsewhere in today's Federal Register.
Administrative Procedure Act
In general, the Administrative Procedure Act (``APA'') \1\ imposes
three principal requirements when an agency promulgates legislative
rules (rules made pursuant to Congressionally-delegated authority): (1)
Publication with adequate notice of a proposed rule; (2) followed by a
meaningful opportunity for the public to comment on the rule's content;
and (3) publication of the final rule not less than 30 days before its
effective date. The APA provides that notice and comment procedures do
not apply if the agency for good cause finds them to be ``unnecessary,
impracticable, or contrary to the public interest.'' \2\ Section 553(d)
of the APA also provides that publication at least 30 days prior to a
rule's effective date is not required for (1) a substantive rule which
grants or recognizes an exemption or relieves a restriction; (2)
interpretive rules and statements of policy; or (3) a rule for which
the agency finds good cause for shortened notice and publishes its
reasoning with the rule.\3\ The APA further provides that the notice,
public comment, and delayed effective date requirements of 5 U.S.C. 553
do not apply ``to the extent that there is involved . . . a matter
relating to agency management or personnel or to public property,
loans, grants, benefits, or contracts.'' \4\
---------------------------------------------------------------------------
\1\ 5 U.S.C. 551 et seq.
\2\ 5 U.S.C. 553(b)(3)(A).
\3\ 5 U.S.C. 553(d).
\4\ 5 U.S.C. 553(a)(2) (emphasis added).
---------------------------------------------------------------------------
Regulation A establishes the interest rates that the twelve Reserve
Banks charge for extensions of primary credit and secondary credit. The
Board has determined that the notice, public comment, and delayed
effective date requirements of the APA do not apply to these final
amendments to Regulation A. The amendments involve a matter relating to
loans and are therefore exempt under the terms of the APA. Furthermore,
because delay would undermine the Board's action in responding to
economic data and conditions, the Board has determined that ``good
cause'' exists within the meaning of the APA to dispense with the
notice, public comment, and delayed effective date procedures of the
APA with respect to the final amendments to Regulation A.
Regulatory Flexibility Analysis
The Regulatory Flexibility Act (``RFA'') does not apply to a
rulemaking where a general notice of proposed rulemaking is not
required.\5\ As noted previously, a general notice of proposed
rulemaking is not required if the final rule involves a matter relating
to loans. Furthermore, the Board has determined that it is unnecessary
and contrary to the public interest to publish a general notice of
proposed rulemaking for this final rule. Accordingly, the RFA's
requirements relating to an initial and final regulatory flexibility
analysis do not apply.
---------------------------------------------------------------------------
\5\ 5 U.S.C. 603, 604.
---------------------------------------------------------------------------
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act (``PRA'') of
1995,\6\ the Board reviewed the final rule under the authority
delegated to the Board by the Office of Management and Budget. The
final rule contains no requirements subject to the PRA.
---------------------------------------------------------------------------
\6\ 44 U.S.C. 3506; see 5 CFR part 1320 appendix A.1.
---------------------------------------------------------------------------
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 as follows:
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.3
---------------------------------------------------------------------------
\3\ 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 rate at each Federal Reserve Bank
for primary credit provided to depository institutions under Sec.
201.4(a) is 2.25 percent.
(b) Secondary credit. The interest rate at each Federal Reserve
Bank for secondary credit provided to depository institutions under
201.4(b) is 2.75 percent.
* * * * *
By order of the Board of Governors of the Federal Reserve
System, November 1, 2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-24273 Filed 11-6-19; 8:45 am]
BILLING CODE 6210-01-P
