Federal Register / Vol. 65, No. 128 / Monday, July 3, 2000 / Rules and Regulations 40979

ZANTE CURRANT INVENTORIES AND PRODUCER PRICES DURING YEARS OF VOLUME REGULATION—Continued

[*Natural condition tons]

Crop year Production*

Inventory* Total season

average producer price

(per ton) Desirable Physical

1997–98 ........................................................................................................... 4,826 694 1,188 2 $730.00

1996–97 ........................................................................................................... 4,491 987 549 3 1,150.00

1995–96 ........................................................................................................... 3,294 782 2,890 711.32

1994–95 ........................................................................................................... 5,377 837 4,364 412.56

1 Data not yet available, reserve pool open.

2Estimate.

3 No volume regulation.

Free and reserve percentages are

established by variety, and usually in

years when the supply exceeds the trade

demand by a large enough margin that

the Committee believes volume

regulation is necessary to maintain

market stability. However, volume

regulation may also be utilized in short

crop years so that the industry may

utilize its export program as described

to maintain its export markets and

provide stability in the domestic market.

Accordingly, in assessing whether to

apply volume regulation or, as an

alternative, not to apply such regulation,

the Committee recommended only two

of the nine raisin varieties defined

under the order for volume regulation

this season.

The free and reserve percentages

release the full trade demands and

apply uniformly to all handlers in the

industry, regardless of size. For

Naturals, with the exception of the

1998–99 crop year, small and large

raisin producers and handlers have been

operating under volume regulation

percentages every year since 1983–84.

There are no known additional costs

incurred by small handlers that are not

incurred by large handlers. All handlers

are regulated based on the quantity of

raisins that they acquire from producers.

While the level of benefits of this

rulemaking are difficult to quantify, the

stabilizing effects of the volume

regulations impact both small and large

handlers positively by helping them

maintain and expand markets even

though raisin supplies fluctuate widely

from season to season. Likewise, price

stability positively impacts small and

large producers by allowing them to

better anticipate the revenues their

raisins will generate.

There are some reporting,

recordkeeping and other compliance

requirements under the order. The

reporting and recordkeeping burdens

are necessary for compliance purposes

and for developing statistical data for

maintenance of the program. The

requirements are the same as those

applied in past seasons. Thus, this

action will not impose any additional

reporting or recordkeeping burdens on

either small or large handlers. The forms

require information that is readily

available from handler records and

which can be provided without data

processing equipment or trained

statistical staff. The information

collection and recordkeeping

requirements have been previously

approved by the Office of Management

and Budget (OMB) under OMB Control

No. 0581–0178. As with other, similar

marketing order programs, reports and

forms are periodically studied to reduce

or eliminate duplicate information

collection burdens by industry and

public sector agencies. In addition, the

Department has not identified any

relevant Federal rules that duplicate,

overlap, or conflict with this rule.

Further, Committee and

subcommittee meetings are widely

publicized in advance and are held in

a location central to the production area.

The meetings are open to all industry

members, including small business

entities, and other interested persons

who are encouraged to participate in the

deliberations and voice their opinions

on topics under discussion.

An interim final rule concerning this

action was published in the Federal

Register on April 10, 2000 (65 FR

18871). Copies of the rule were mailed

by the Committee staff to all Committee

members and alternates, the Raisin

Bargaining Association, handlers, and

dehydrators. In addition, the rule was

made available through the Internet by

the Office of the Federal Register. That

rule provided for a 60-day comment

period, which ended June 9, 2000. No

comments were received.

A small business guide on complying

with fruit, vegetable, and specialty crop

marketing agreements and orders may

be viewed at: http://www.ams.usda.gov/

fv/moab/html. Any questions about the

compliance guide should be sent to Jay

Guerber at the previously mentioned

address in the FOR FURTHER INFORMATION

CONTACT section.

After consideration of all relevant

material presented, including the

Committee’s recommendation, and

other information, it is found that this

final rule, as hereinafter set forth, will

tend to effectuate the declared policy of

the Act.

List of Subjects in 7 CFR Part 989

Grapes, Marketing agreements,

Raisins, Reporting and recordkeeping

requirements.

PART 989—RAISINS PRODUCED

FROM GRAPES GROWN IN

CALIFORNIA

Accordingly, the interim final rule

amending 7 CFR part 989 which was

published at 69 FR 18871 on April 10,

2000, is adopted as a final rule without

change.

Dated: June 27, 2000

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 00–16739 Filed 6–30–00; 8:45 am]

BILLING CODE 3410–02–P

FEDERAL HOUSING FINANCE BOARD

12 CFR Parts 925 and 950

[No. 2000–30]

RIN 3069–AA94

Amendment of Membership Regulation

and Advances Regulation

AGENCY: Federal Housing Finance

Board.

ACTION: Final rule.

SUMMARY: The Federal Housing Finance

Board (Finance Board) is adopting as

final, with several changes, the Interim

Final Rule that: Amended its

Membership Regulation and Advances

Regulation to conform certain

provisions to the requirements of the

40980 Federal Register / Vol. 65, No. 128 / Monday, July 3, 2000 / Rules and Regulations

1The Finance Board recently reorganized and

redesignated all of its regulations. See 65 FR 8253

(Feb. 18, 2000). The Membership Regulation, which

formerly was part 933 of the Finance Board’s

regulations, 12 CFR part 933 of the Finance Board’s

regulations, 12 CFR part 933 (1999), was

redesignated as part 925. See 65 FR 8253, 8260 (to

be codified at 12 CFR part 925).

2The Modernization Act is Title VI of the GrammLeach-Bliley Act, Pub. L. No. 106–102, 113 Stat.

1338, enacted into law on November 12, 1999.

Federal Home Loan Bank System

Modernization Act of 1999

(Modernization Act); and made certain

technical revisions to the Membership

Regulation that are not related to the

Modernization Act, in order to clarify

the treatment of de novo members that

fail to meet the 10 percent residential

mortgage loans requirement within the

required one-year time frame.

DATES: This final rule shall be effective

on July 3, 2000.

FOR FURTHER INFORMATION CONTACT:

James L. Bothwell, Director, (202) 408–

2821, Jennifer R. Salamon, Program

Analyst, (202) 408–2974, or Patricia L.

Sweeney, Program Analyst, (202) 408–

2872, Office of Policy, Research and

Analysis; or Sharon B. Lake, Senior

Attorney-Advisor, (202) 408–2930,

Office of General Counsel, Federal

Housing Finance Board, 1777 F Street,

NW., Washington, DC 20006.

SUPPLEMENTARY INFORMATION:

I. Statutory and Regulatory Background

Under the Federal Home Loan Bank

Act (Bank Act), the Finance Board is

responsible for the supervision and

regulation of the 12 Federal Home Loan

Banks (Banks), which provide advances

and other financial services to their

member institutions. See 12 U.S.C.

1422a(a) (1994). Institutions, including

those not meeting the Qualified Thrift

Leader (QTL) test, may become

members of a Bank if they meet certain

membership eligibility and minimum

stock purchase criteria set forth in the

Bank Act and the Finance Board’s

implementing Membership Regulation.

See id. secs. 1424, 1426, 1430(e)(3)

(1994); 12 CFR part 925.1 Members may

obtain advances from a Bank subject to

certain statutory and regulatory

requirements. See 12 U.S.C. 1430(a)

(1994). Prior to recent amendments to

the Bank Act, discussed further below,

access to advances by non-QTL

members was restricted in various ways.

See id. sec. 1430(e).

The recently enacted Modernization

Act 2 amended certain membership

eligibility provisions, and repealed

certain stock purchase and non-QTL

advances provisions, in the Bank Act.

See Pub. L. No. 106–102, secs. 602, 603,

604(c), (d)(1), 605, 608 (1999).

Accordingly, the Finance Board adopted

the Interim Final Rule, which amended

its regulations to conform them to the

Modernization Act amendments. See 65

FR 13866 (March 15, 2000). The Finance

Board also took the opportunity in the

Interim Final Rule to make certain

technical revisions to the Membership

Regulation that are not related to the

Modernization Act, in order to clarify

the treatment of de novo members that

fail to meet the 10 percent residential

mortgage loans requirement within the

required one-year time frame. See id.

The Interim Final Rule provided for a

30-day public comment period, which

closed on April 14, 2000. The Finance

Board received a total of 7 comment

letters on the Interim Final Rule.

Commenters included 4 Banks and three

financial institutions trade associations.

Commenters generally focused their

comments on how the three-year

average total assets number for

community financial institutions (CFIs)

should be calculated. These comments

are discussed below.

II. Analysis of the Final Rule

A. Removal of the 10 Percent

Residential Mortgage Loans

Requirement For Community Financial

Institution Applicants For Membership;

Definition of ‘‘Community Financial

Institution’’—§§ 925.1(ff), 925.6(b),

925.10, 925.14(a)(3)

Section 4(a)(2)(A) of the Bank Act

formerly provided that an insured

depository institution may become a

member of a Bank only if it has at least

10 percent of its total assets in

residential mortgage loans (10 percent

requirement). See 12 U.S.C.

1424(a)(2)(A) (1994). Section 4(a)(2) also

provided that an insured depository

institution commencing business

operations after January 1, 1989

(de novo institution), may become a

member of a Bank if at least 10 percent

of its total assets are in residential

mortgage loans, within one year after

the commencement of its operations.

See id. sec. 1424(a)(2). Section 4(a)(2) is

implemented by §§ 925.6(b), 925.10 and

925.14(a)(3) of the Finance Board’s

Membership Regulation. See 12 CFR

925.6(b), 925.10, 925.14(a)(3).

The Modernization Act amended

section 4(a)(2) of the Bank Act to

exempt from the 10 percent requirement

any applicants, including de novo

institutions, that qualify as ‘‘community

financial institutions’’ See

Modernization Act, sec. 605 (to be

codified at 12 U.S.C. 1424(a)(2)(A)(4)).

The Modernization Act defines a

‘‘community financial institution’’ to

mean an institution whose deposits are

insured under the Federal Deposit

Insurance Act (FDIA) and that has, as of

the date of the transaction at issue, less

than $500 million in average total

assets, based on an average of total

assets over the three years preceding

that date. See id. sec. 602 (to be codified

at 12 U.S.C. 1422(13)). Accordingly, the

Interim Final Rule amended §§ 925.6(b),

925.10 and 925.14(a)(3) of the

Membership Regulation to include an

exemption from the 10 percent

requirement for CFIs, and added a

definition of ‘‘community financial

institution’’ in new § 925.1(ff) that

mirrored the statutory definition. A

definition of ‘‘community financial

institution’’ that predates the

Modernization Act, in § 925.1(n)(1)(iii),

also was removed. The Finance Board

requested comments in the Interim

Final Rule on what source of data

should be used in calculating the

average of total assets over the three

preceding years.

The issue of how to calculate an

institution’s average total assets over the

three preceding years also arises in the

context of the new authority under the

Modernization Act allowing CFI

members to pledge secured loans for

small business or agriculture, or

securities representing a whole interest

in such secured loans, as security for

advances. See Modernization Act,

section 604(a)(5)(C). The Finance Board

recently issued a proposed rule to

implement this new advances collateral

authority (Advances Collateral Rule).

See 65 FR 26518 (May 8, 2000). A

number of commenters on the Interim

Final Rule recommended that the Banks

be allowed to calculate average total

assets of all of their member institutions

on an annual basis, based on calendar

year-end financial data available from

the institutions’ regulatory financial

reports filed with their regulators or, in

the alternative, based on data available

from the institutions’ quarterly

regulatory financial reports for the

preceding three years. Commenters

stated that it would be confusing to

determine CFI status on a quarterly or

monthly basis when § 925.22(b)(1) of the

Membership Regulation requires the

Banks to calculate annually each

member’s minimum capital stock

requirement using calendar year-end

financial data. Commenters stated that

calculation of CFI status on a quarterly

or monthly basis would result in

unnecessary administrative burdens and

expense. Other commenters supported

quarterly calculations of average total

assets based on the institutions’

quarterly regulatory financial reports

over the three preceding years.

Federal Register / Vol. 65, No. 128 / Monday, July 3, 2000 / Rules and Regulations 40981

Commenters also stated that calculation

of CFI status on a quarterly or monthly

basis would cause some members’ CFI

status to fluctuate more frequently,

which, for members approaching the

CFI asset cap, could have a chilling

effect on their reliance on Bank funding

secured by CFI-eligible collateral.

For membership eligibility purposes,

the determination of whether an

institution applying for Bank

membership is a CFI and, therefore,

exempt from the 10 percent

requirement, is only required to be

made by the Bank one time, during the

membership application evaluation

process. Therefore, the comments

regarding the administrative burden and

cost of performing more frequent

periodic calculations, coordinating with

the annual stock purchase calculation,

and the effect on use of Bank funding,

are inapposite for membership

eligibility purposes. Rather, these

comments appear to be directed at how

CFI status should be calculated for

purposes of allowing CFI members to

use the expanded collateral authority

under the Modernization Act. These

comments, and the definition of CFI for

advances collateral purposes, are more

appropriately addressed in the Finance

Board’s final Advances Collateral Rule.

Under the Membership Regulation,

the calculation of the 10 percent

requirement is based on the applicant’s

total assets and residential mortgage

loans drawn from its most recent

quarterly regulatory financial report

filed with its appropriate regulator. See

12 CFR 925.10. Since the calculation of

average total assets to determine CFI

status is necessary in order to determine

whether the 10 percent requirement

applies, it would be consistent with the

current membership application review

process at the Banks to use the same

total assets data from the applicant’s

most recent quarterly regulatory

financial report for the CFI calculation.

In addition, since an average of total

assets over three years is required for

the CFI calculation, it also would be

reasonable to include in the calculation

the total assets data from the quarterly

regulatory financial reports filed with

the applicant’s appropriate regulator for

the immediately preceding 11 calendar

quarters.

Because the calculation of the threeyear total assets average affects the

determination of CFI status for both

membership and advances purposes, the

definition of CFI belongs in § 900.1,

which contains general definitions

applying to all Finance Board

regulations. Accordingly, this final rule

removes the definitions of ‘‘community

financial institution’’ and ‘‘community

financial institution asset cap’’

(§ 925.1(ff) and (gg)) from the

Membership Regulation. The final

Advances Collecteral Rule will add the

calculation for membership purposes as

described above, as well a the

calculation for advances purposes, to a

definition of ‘‘community financial

institution’’ in § 900.1. The final

Advances Collateral Rule also will add

the definition of ‘‘community financial

institution asset cap’’ to § 900.1.

B. Readmission to Membership—

§ 925.30

The final rule makes technical

revisions to the language on

readmission to membership in § 925.30

of the Interim Final Rule for greater

clarity.

III. Regulatory Flexibility Act

Because no notice of proposed

rulemaking is required for this final

rule, the provisions of the Regulatory

Flexibility Act, U.S.C. 601 et seq., do

not apply.

IV. Paperwork Reduction Act

For the reasons stated in the Interim

Final Rule, the Finance Board adopted

the Interim Final Rule on an expedited

basis to conform provisions of its

regulations to the recently enacted

statutory amendments to the Bank Act.

Due to the expedited nature of this

rulemaking, the Finance Board has not

completed its analysis of the

information collection requirements

contained in the final rule. The

amendments in the final rule may result

in a reduction in the information

collection burden for institutions that

qualify as community financial

institutions, and an increase in the

number of respondents that apply for

Bank membership. The Finance Board

intends to submit to the Office of

Management and Budget the

information collection requirements

contained in this final rule in

accordance with the requirements of

section 3507(d) of the Paperwork

Reudction Act of 1995, 44 U.S.C.

3507(d).

List of Subjects in Parts 925 and 950

Credit, Federal home loan banks,

Reporting and recordkeeping

requirements.

Accordingly, the Interim Final Rule

amending title 12, chapter IX, parts 925

and 950, Code of Federal Regulations,

which was published at 65 FR 13866

(March 15, 2000), is adopted as final

with the following changes:

PART 925—MEMBERS OF THE BANKS

1. The authority citation for part 925

continues to read as follows:

Authority: 12 U.S.C. 1422, 1422a, 1422b,

1423, 1424, 1426, 1430, 1442.

§ 925.1 [Amended]

2. Amend § 925.1 by removing

paragraphs (ff) and (gg).

3. Revised § 925.30 to read as follows:

§ 925.30 Readmission to membership.

(a) In general. An institution that has

withdrawn from membership, or

otherwise terminated its membership,

may not be readmitted to membership

in any Bank for a period of 5 years from

the date on which its membership

terminated.

(b) Exceptions. An institution that

transfers membership between two

Banks without interruption shall not be

deemed to have withdrawn from Bank

membership. Any institution that

withdrew from Bank membership prior

to December 31, 1997, and for which the

5-year period has not expired, may

apply for membership in a Bank at any

time, subject to the approval of the

Finance Board and the requirements of

12 CFR part 925.

Dated: June 23, 2000.

By the Board of Directors of the Federal

Housing Finance Board.

Bruce A. Morrison,

Chairman.

[FR Doc. 00–16790 Filed 6–30–00; 8:45 am]

BILLING CODE 6725–01–M

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 99–NE–15–AD; Amendment 39–

11800; AD 2000–13–01]

RIN 2120–AA64

Airworthiness Directives; Allison

Engine Company, Inc. AE 3007A and

AE 3007C Series Turbofan Engines

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD) that is

applicable to Allison Engine Company,

Inc. AE 3007A and AE 3007C series

turbofan engines. This AD requires the

removal from service of certain turbine

wheels before exceeding new, reduced

cyclic life limits. This amendment is

prompted by a refined life analysis that

was performed by the manufacturer.