80108 Federal Register / Vol. 88, No. 221 / Friday, November 17, 2023 / Rules and Regulations 

1 12 U.S.C. 248(k). 

§ 1489.29 Property standards. 

The RAPP Participant shall insure all 

RAPP-funded property and equipment 

acquired in furtherance of program 

activities and safeguard such against 

theft, damage and unauthorized use. 

The Participant shall promptly report 

any loss, theft, or damage of property to 

the insurance company. 

§ 1489.30 Anti-fraud requirements. 

(a) All RAPP Participants. (1) All 

RAPP Participants shall submit to the 

CCC for approval a detailed fraud 

prevention program. The CCC will 

notify all new and existing RAPP 

Participants in writing in each 

Participant’s approval letter and through 

the FAS website as to applicable 

submission dates for and dates for 

approvals of fraud prevention programs. 

RAPP Participants should review their 

fraud prevention programs annually. 

The fraud prevention program shall, at 

a minimum, include an annual review 

of physical controls and weaknesses, a 

standard process for investigating and 

remediation of suspected fraud cases, 

and training in risk management and 

fraud detection for all current and future 

employees. The RAPP Participant shall 

not conduct or permit any RAPP 

promotion activities to occur unless and 

until the CCC has communicated in 

writing approval of the RAPP 

Participant’s fraud prevention program. 

(2) The RAPP Participant, within five 

business days of receiving an allegation 

or information giving rise to a 

reasonable suspicion of 

misrepresentation or fraud that could 

give rise to a claim by CCC, shall report 

such allegation or information in 

writing to such USDA personnel as 

specified in the Participant’s RAPP 

program agreement and/or approval 

letter. The RAPP Participant shall 

cooperate fully in any USDA 

investigation of such allegation or 

occurrence of misrepresentation or 

fraud and shall comply with any 

directives given by the CCC or USDA to 

the RAPP Participant for the prompt 

investigation of such allegation or 

occurrence. 

(b) RAPP Participants with brand 

programs. (1) The RAPP Participant may 

charge a fee to brand participants to 

cover the cost of the fraud prevention 

program. 

(2) The RAPP Participant shall repay 

to the CCC funds paid to a brand 

participant through the RAPP 

Participant on claims that the RAPP 

Participant or the CCC subsequently 

determines are unauthorized or 

otherwise non-reimbursable expenses 

within 30 days of the RAPP 

Participant’s determination or CCC’s 

disallowance. The RAPP Participant 

shall repay CCC by submitting a check 

to CCC or by offsetting the RAPP 

Participant’s next reimbursement claim. 

The RAPP Participant shall make such 

payment in U.S. dollars, unless 

otherwise approved in advance by CCC. 

A RAPP Participant operating a brand 

program in strict accordance with an 

approved fraud prevention program, 

however, will not be liable to reimburse 

CCC for RAPP funds paid on such 

claims if the claims were based on 

misrepresentations or fraud of the brand 

participant, its employees or agents, 

unless the CCC determines that the 

RAPP Participant was grossly negligent 

in the operation of the brand program 

regarding such claims. The CCC shall 

communicate any such determination to 

the RAPP Participant in writing. 

§ 1489.31 Program income. 

Any revenue or refunds generated 

from an activity, e.g., participation fees, 

proceeds of sales, refunds of value 

added taxes (VAT), the expenditures for 

which have been wholly or partially 

reimbursed with RAPP funds, shall be 

used by the RAPP Participant in 

furtherance of its approved RAPP 

activities in the budget period during 

which the RAPP funds are available for 

obligation by the RAPP Participant. The 

use of such revenue or refunds shall be 

governed by this part. Interest earned on 

funds advanced by the CCC is not 

program income. 

§ 1489.32 Amendment. 

A program agreement may be 

amended in writing with the written 

consent of the CCC and the RAPP 

Participant. 

§ 1489.33 Noncompliance with an 

agreement or this part. 

If a RAPP Participant fails to comply 

with any term in its program agreement 

or approval letter, or this part, the CCC 

may take one or more of the 

enforcement actions in 2 CFR part 200 

and, if appropriate, initiate a claim 

against the RAPP Participant, following 

the procedures set forth in this part. The 

CCC may also initiate a claim against a 

RAPP Participant if program income or 

CCC-provided funds are lost due to an 

action or omission of the RAPP 

Participant. 

§ 1489.34 Suspension, termination, and 

closeout of agreements. 

A program agreement may be 

suspended or terminated in accordance 

with the suspension and termination 

procedures in 2 CFR part 200. If an 

agreement is terminated, the applicable 

regulations in 2 CFR part 200 will apply 

to the closeout of the agreement. 

§ 1489.35 Paperwork reduction 

requirements. 

The paperwork and record keeping 

requirements imposed by this part have 

been approved by the Office of 

Management and Budget (OMB) under 

the Paperwork Reduction Act of 1995. 

The control number for this information 

collection is 0551–0049. 

Marcus Graham, 

Acting Executive Vice President, Commodity 

Credit Corporation. 

[FR Doc. 2023–25015 Filed 11–16–23; 8:45 am] 

BILLING CODE 3410–10–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 265 

[Docket No. R–1778] 

RIN No. 7100–AG37 

Rules Regarding Delegation of 

Authority 

AGENCY: Board of Governors of the 

Federal Reserve System (Board). 

ACTION: Final rule; correcting 

amendments. 

SUMMARY: The Board is revising its 

Rules Regarding Delegation of Authority 

to add delegations of authority 

previously approved by the Board and 

make certain technical corrections. 

DATE: Effective November 17, 2023. 

FOR FURTHER INFORMATION CONTACT: 

Andrew Hartlage, Special Counsel, (202) 

452–6483; Amory Goldberg, Senior 

Counsel, (202) 452–3124; or Leah Kazar, 

Legal Assistant/Attorney, (202) 452– 

4638, Legal Division, Board of 

Governors of the Federal Reserve 

System, 20th Street and Constitution 

Avenue NW, Washington, DC 20551. 

For users of TTY–TRS, please call 711 

from any telephone, anywhere in the 

United States. 

SUPPLEMENTARY INFORMATION: Section 

11(k) of the Federal Reserve Act 

authorizes the Board to delegate, by 

published order or rule and subject to 

the Administrative Procedure Act, any 

of its functions, other than those related 

to rulemaking or pertaining principally 

to monetary and credit policies, to one 

or more administrative law judges, 

members or staff of the Board, or the 

Reserve Banks.1 The Board has 

delegated authority to Board members 

(in their individual capacity and as 

chairs of committees of the Board), 

Board staff, and the Federal Reserve 

Banks to take certain actions under the 

various statutes that the Board 


khammond on DSKJM1Z7X2PROD with RULES
Federal Register / Vol. 88, No. 221 / Friday, November 17, 2023 / Rules and Regulations 80109 

2Rules Regarding Delegation of Authority, 87 FR 

53988 (September 1, 2022). 

administers. The Board’s Rules 

Regarding Delegation of Authority 

(delegation rules) implement section 

11(k) of the Federal Reserve Act and 

enumerate the actions that the Board 

has determined to delegate. By 

delegating actions that do not raise 

significant legal, supervisory, or policy 

issues, the Board can respond more 

efficiently to applications, requests, and 

other matters. 

The Board published a final rule in 

2022 that comprehensively revised the 

delegation rules.2 The Board is 

amending the delegation rules to 

publish delegations of authority 

previously approved by the Board and 

make certain technical corrections. 

List of Subjects in 12 CFR Part 265 

Authority delegations (Government 

agencies); Banks, Banking. 

Authority and Issuance 

For the reasons stated in the preamble 

the Board of Governors of the Federal 

Reserve System amends 12 CFR part 265 

as follows: 

PART 265—RULES REGARDING 

DELEGATION OF AUTHORITY 

■ 1. The authority citation for part 265 

continues to read as follows: 12 U.S.C. 

248(i) and (k). 

Subpart B—Delegations of Authority 

■ 2. In § 265.6, in paragraph (d)(1), 

remove ‘‘12 CFR 238.6’’ and add, in its 

place, ‘‘12 CFR 238.96’’. 

■ 3. In § 265.7: 

■ a. In paragraph (c)(7)(iii), remove ‘‘(12 

U.S.C. 1843(m)); and’’ and add, in its 

place, ‘‘(12 U.S.C. 1843(m));’’; 

■ b. In paragraph (c)(7)(iv), remove ‘‘(12 

U.S.C. 1843(m));’’ and add, in its place, 

‘‘(12 U.S.C. 1843(m)); and’’; 

■ c. Add paragraph (c)(7)(v); 

■ d. In paragraph (d)(7)(ii)(B)(3), remove 

‘‘(§§ 252.146 and 252.158)’’ and add, in 

its place, ‘‘(12 CFR 252.146 and 

252.158)’’; 

■ e. In paragraph (e)(5), remove the 

words ‘‘To exercise the functions 

described in § 265.20(e)(5), (11), and 

(12) (reductions in capital, issuance of 

subordinated debt, and early retirement 

of subordinated debt)’’ and add, in their 

place, the words ‘‘To exercise the 

functions described in §§ 265.20(e)(5) 

and (11) (reductions in capital and early 

retirement of subordinated debt)’’; 

■ f. In paragraph (j)(1)(viii), remove the 

words, ‘‘of receipt of receipt’’ and add, 

in their place, the words ‘‘of receipt’’; 

■ g. In paragraph (k)(1)(ii)(E), remove 

‘‘and’’ at the end; 

■ h. In paragraph (k)(1)(ii)(F), remove 

‘‘soundness.’’ and add, in its place, 

‘‘soundness;’’; 

■ i. Add paragraphs (k)(1)(ii)(G) and 

(k)(1)(ii)(H); 

■ j. In paragraph (k)(7)(i), remove 

‘‘II.A.l.c.ii.(2)’’ and add, in its place, 

‘‘II.A.1.c.ii.(2)’’; and 

■ k. Add paragraph (k)(8). 

■ l. The additions read as follows: 

§ 265.7 Functions delegated to the 

Director of the Division of Supervision and 

Regulation. [Amended] 

* * * * * 

(c) * * * 

(7) * * * 

(v) To acquire shares or assets 

pursuant to section 4(k) of the Bank 

Holding Company Act (12 U.S.C. 

1843(k)) without prior Board approval 

up to the following thresholds: 

(A) $25 million in consideration for a 

single transaction; 

(B) $125 million in consideration over 

the past 12 months; and 

(C) $400 million in consideration over 

the entire period the financial holding 

company is subject to the agreement 

required by section 4(m) of the Bank 

Holding Company Act (12 U.S.C. 

1843(m)). 

* * * * * 

(k) * * * 

(1) * * * 

(ii) * * * 

(G) To approve a request by a Boardregulated institution to make or change 

an election, or a choice of treatment, 

under § 217.1(g)(2)(ii) of Regulation Q 

(12 CFR 217.1(g)(2)(ii)); and 

(H) To review and adjust estimated 

total consolidated assets under the 

definition of ‘‘insurance bank holding 

company’’ or ‘‘insurance savings and 

loan holding company’’ in § 217.2 of 

Regulation Q (12 CFR 217.2) or under 

§ 217.601(b)(2) of Regulation Q (12 CFR 

217.601(b)(2)). 

* * * * * 

(8) Delegations regarding the Building 

Block Approach in subpart J of 

Regulation Q (12 CFR part 217, subpart 

J). 

(i) [Reserved] 

(ii) After consultation with the 

General Counsel: 

(A) To require a supervised insurance 

organization to exclude all or a portion 

of a particular company capital element 

from building block available capital, to 

approve the inclusion on a permanent 

or temporary basis of a capital resource 

in building block available capital, to 

adjust the building block capital 

requirement and building block 

available capital of a supervised 

insurance organization, or to require a 

supervised insurance organization to 

take certain actions to better reflect the 

risk profile of an inventory company or 

the supervised insurance organization, 

under § 217.601(d) of Regulation Q (12 

CFR 217.601(d)); 

(B) To require a supervised insurance 

organization to apply an alternative 

treatment to a treatment otherwise 

required by subpart J of Regulation Q 

(12 CFR part 217 subpart J) under 

§ 217.601(d)(4) of Regulation Q (12 CFR 

217.601(d)(4)); 

(C) To approve a request to exercise 

a call option on an instrument under 

§ 217.608(a)(1)(v)(A) or 

§ 217.608(a)(2)(iv)(A) of Regulation Q 

(12 CFR 217.608(a)(1)(v)(A) or 

217.608(a)(2)(iv)(A)); 

(D) To approve a request to redeem or 

repurchase an instrument under 217.608 

(a)(1)(vi) or § 217.608(a)(2)(v) of 

Regulation Q (12 CFR 217.608(a)(1)(vi) 

or 217.608(a)(2)(v)); and 

(E) To approve a request to include in 

building block available capital an 

instrument issued by a company in a 

supervised insurance organization 

under § 217.608(g) of Regulation Q (12 

CFR 217.608(g)). 

* * * * * 

■ 4. In § 265.8: 

■ a. In paragraph (c)(2), remove ‘‘(15 

U.S.C. 1693q),’’ and add, in its place, 

‘‘(15 U.S.C. 1693q) and’’; and 

■ b. In paragraph (c)(3), remove ‘‘(15 

U.S.C. 1691d(f)’’ and add, in its place, 

‘‘(15 U.S.C. 1691d(f))’’. 

■ 5. In § 265.10: 

■ a. Redesignate paragraph (b) as 

paragraph (c); and 

■ b. Add new paragraph (b). 

The addition reads as follows: 

§ 265.10 Functions delegated to the 

Director of the Division of Monetary Affairs. 

* * * * * 

(b) Regulation D. With the 

concurrence of the General Counsel, to 

approve the annual indexation of the 

reserve requirement exemption amount 

and low reserve tranche amount under 

Regulation D (12 CFR part 204), so long 

as no change is proposed to any of the 

formulas by which these amounts are 

calculated. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, acting through the 

Secretary of the Board under delegated 

authority. 

Michele Taylor Fennell, 

Deputy Associate Secretary of the Board. 

[FR Doc. 2023–25387 Filed 11–16–23; 8:45 am] 

BILLING CODE 6201–01–P 


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