Federal Register / Vol. 72, No. 8 / Friday, January 12, 2007 / Notices 1515 

provided for by Federal law; (2) is assessed or 

enforced by an agency pursuant to Federal law; and 

(3) is assessed or enforced pursuant to an 

administrative proceeding or a civil action in the 

Federal courts. All three requirements must be met 

for a fine to be defined as a CMP. 4The CPI is published by the Department of 

Labor, Bureau of Labor Statistics, and is available 

at its Web site: ftp://ftp.bls.gov/pub/ 

special.requests/cpi/cpiai.txt. 

5Any increase must be rounded to the nearest 

multiple of $100 in the case of penalties greater 

than $100 but less than or equal to $1,000. 

Therefore, $16.38 is rounded to the nearest multiple 

of $100, which is $0. 

maintain their deterrent values. An 

agency must enact regulations that 

adjust its CMPs pursuant to the inflation 

adjustment formula of the FCPIA Act. 

The amended FCPIA Act specifies that 

inflation-adjusted CMPs will apply only 

to violations that occur after the 

effective date of the adjustment. 

The inflation adjustment is based on 

the percentage increase in the Consumer 

Price Index (CPI) for all consumers 

(CPI–U).4 Specifically, the term cost-ofliving adjustment is defined as the 

percentage (if any) for each civil 

monetary penalty by which the 

Consumer Price Index for the month of 

June of the calendar year preceding the 

adjustment, exceeds the Consumer Price 

Index for the month of June of the 

calendar year in which the amount of 

such civil monetary penalty was last set 

or adjusted pursuant to law. 

Furthermore, any increase to a CMP that 

is adjusted for inflation must be 

rounded using a method prescribed by 

the FCPIA Act. Agencies do not have 

discretion in choosing whether to adjust 

a CMP, by how much to adjust a CMP, 

or the methods used to determine the 

adjustment. 

B. CMPs Imposed Pursuant to Section 

5.65 of the Farm Credit Act 

First, section 5.65(c) of the Farm 

Credit Act, as amended (Act) provides 

that any insured Farm Credit System 

bank that willfully fails or refuses to file 

any certified statement or pay any 

premium required under this part shall 

be subject to a penalty of not more than 

$100 for each day that such violations 

continue, which penalty the 

Corporation may recover for its use. 12 

U.S.C. 2277a-14(c). Second, section 

5.65(d) of the Act provides that, except 

with the prior written consent of the 

Farm Credit Administration, it shall be 

unlawful for any person convicted of 

any criminal offense involving 

dishonesty or a breach of trust to serve 

as a director, officer, or employee of any 

System institution. 12 U.S.C. 2277a14(d). For each willful violation of 

section 5.65(d), the institution involved 

shall be subject to a penalty of not more 

than $100 for each day during which the 

violation continues, which the 

Corporation may recover for its use. 

As adjusted for inflation pursuant to 

the requirements of the DCIA, the 

current regulation at 12 CFR 1411.1, 

which was promulgated in 2001, 

provides that FCSIC can impose a 

maximum penalty of $117 per day for a 

violation under section 5.65(c) and (d) 

of the Act. 

1. Mathematical Calculation 

The adjustment calculation will be 

based on the percentage by which the 

CPI for June 2006 exceeds the CPI for 

June 2001. 

According to the Bureau of Labor 

Statistics, the CPI for June 2001 was 

178, and the CPI for June 2006 was 

202.9, resulting in a percentage change 

of 14.0 percent. 

2. Penalty Amounts Remain the Same in 

§ 1411.1 

The maximum CMP in 12 CFR 1411.1 

for a violation of section 5.65(c) or (d) 

of the Act is currently $117. Multiplying 

$117 by 14 percent results in $16.38. 

When that number is rounded as 

required by the FCPIA Act,5 the 

inflation-adjusted maximum remains 

the same. 

Dated: January 9, 2007. 

Roland Smith, 

Secretary, Farm Credit System Insurance 

Corporation Board. 

[FR Doc. E7–359 Filed 1–11–07; 8:45 am] 

BILLING CODE 6710–01–P 

FEDERAL HOUSING FINANCE BOARD 

[No. 2007–N–02] 

Notice of Annual Adjustment of the 

Cap on Average Total Assets That 

Defines Community Financial 

Institutions; Notice of Annual 

Adjustment of the Limits on Annual 

Compensation for Federal Home Loan 

Bank Directors 

AGENCY: Federal Housing Finance 

Board. 

ACTION: Notice. 

SUMMARY: The Federal Housing Finance 

Board (Finance Board) has adjusted the 

cap on average total assets that defines 

a ‘‘Community Financial Institution’’

and the limits on annual compensation 

for Federal Home Loan Bank (Bank) 

directors based on the annual 

percentage increase in the Consumer 

Price Index for all urban consumers 

(CPI–U) as published by the Department 

of Labor (DOL). These changes took 

effect on January 1, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Patricia L. Sweeney, Office of 

Supervision, by telephone at 202–408–

2872, by electronic mail at 

sweeneyp@fhfb.gov, or by regular mail 

at the Federal Housing Finance Board, 

1625 Eye Street, NW., Washington DC 

20006–4001. 

SUPPLEMENTARY INFORMATION: 

A. Statutory and Regulatory 

Background 

Section 2(13) of the Federal Home 

Loan Bank Act (Bank Act) and § 925.1 

of the Finance Board regulations define 

a member that is a ‘‘Community 

Financial Institution’’ (CFI) by the 

member’s total asset size. See 12 U.S.C. 

1422(13)(A) and 12 CFR 925.1. The 

Bank Act requires the Finance Board 

annually to adjust the CFI asset cap to 

reflect any percentage increase in the 

preceding year’s CPI–U as published by 

the DOL. See 12 U.S.C. 1422(13)(B). 

Section 7(i)(2)(B) of the Bank Act and 

§ 918.3(a)(1) of the Finance Board 

regulations require the Finance Board to 

make similar annual adjustments to the 

annual compensation limits for 

members of the boards of directors of 

the Banks. See 12 U.S.C. 1427(i)(2) and 

12 CFR 918.3(a). 

Effective January 1, 2007, the CPI 

adjustment provisions in the Affordable 

Housing Program (AHP) regulation were 

removed. See 71 FR 59262 (Oct. 6, 2006) 

(12 CFR 951.3(a)(1)(iii) and 951.3(a)(2) 

(removed)). The revised provisions of 

the AHP regulation are located at 12 

CFR 951.2(b)(2)(i) and (b)(3). As a result, 

this notice does not include any CPI 

adjustments under the AHP regulation. 

B. Calculating the Annual Adjustments 

The annual adjustments to the CFI 

asset cap and Bank director 

compensation limits reflect the 

percentage by which the CPI–U 

published for November of the 

preceding calendar year exceeds the 

CPI–U published for November of the 

year before the preceding calendar year 

(if at all). Thus, the adjustments that 

took effect on January 1, 2007, were 

based on the percentage increase in the 

CPI–U from November 2005 to 

November 2006. The Finance Board 

uses November data to provide notice of 

the changes to the annual limits before 

the January 1st effective date. This 

practice is consistent with that of other 

federal agencies. 

The DOL encourages use of CPI–U 

data that has not been seasonally 

adjusted in ‘‘escalation agreements’’

because seasonal factors are updated 

annually and seasonally adjusted data 

are subject to revision for up to 5 years 

following the original release. 


rmajette on PROD1PC67 with NOTICES
1516 Federal Register / Vol. 72, No. 8 / Friday, January 12, 2007 / Notices 

Unadjusted data are not routinely 

subject to revision, and previously 

published unadjusted data are only 

corrected when significant calculation 

errors are discovered. Accordingly, the 

Finance Board is using data that has not 

been seasonally adjusted. 

The unadjusted CPI–U increased 2 

percent between November 2005 and 

November 2006. Based on this change, 

the Finance Board made the following 

adjustments, which took effect on 

January 1, 2007: 

CFI Asset Cap: The CFI Asset Cap, 

which was $587 million for 2006, is 

$599 million in 2007. The Finance 

Board arrived at the adjusted limit of 

$599 million by rounding to the nearest 

million. 

Annual Compensation Limits: The 

annual compensation limits for 

members of the Bank boards of directors 

is as follows in 2007: for a 

Chairperson—$29,944; for a ViceChairperson—$23,955; for any other 

member of a Bank’s board of directors—

$17,967. The Finance Board arrived at 

the adjusted annual compensation 

limits by rounding to the nearest dollar. 

Date: January 9, 2007. 

By the Federal Housing Finance Board. 

Ronald A. Rosenfeld, 

Chairman. 

[FR Doc. E7–369 Filed 1–11–07; 8:45 am] 

BILLING CODE 6725–01–P 

FEDERAL HOUSING FINANCE BOARD 

[No. 2007–N–01] 

Federal Home Loan Bank Members 

Selected for Community Support 

Review 

AGENCY: Federal Housing Finance 

Board. 

ACTION: Notice. 

SUMMARY: The Federal Housing Finance 

Board (Finance Board) is announcing 

the Federal Home Loan Bank (Bank) 

members it has selected for the 2006–07 

fourth quarter review cycle under the 

Finance Board’s community support 

requirements regulation. This notice 

also prescribes the deadline by which 

Bank members selected for review must 

submit Community Support Statements 

to the Finance Board. 

DATES: Bank members selected for this 

review cycle must submit completed 

Community Support Statements to the 

Finance Board on or before February 26, 

2007. 

ADDRESSES: Submit completed 

Community Support Statements to the 

Finance Board either by regular mail at 

the Federal Housing Finance Board, 

Office of Supervision, Community 

Investment and Affordable Housing, 

1625 Eye Street NW., Washington, DC 

20006, or by electronic mail at 

FITZGERALDE@FHFB.GOV. 

FOR FURTHER INFORMATION CONTACT: 

Emma J. Fitzgerald, Program Analyst, 

Office of Supervision, Community 

Investment and Affordable Housing, by 

telephone at 202–408–2874, by 

electronic mail at 

FITZGERALDE@FHFB.GOV, or by 

regular mail at the Federal Housing 

Finance Board, 1625 Eye Street NW., 

Washington, DC 20006. 

SUPPLEMENTARY INFORMATION: 

I. Selection for Community Support 

Review 

Section 10(g)(1) of the Federal Home 

Loan Bank Act (Bank Act) requires the 

Finance Board to promulgate 

regulations establishing standards of 

community investment or service Bank 

members must meet in order to 

maintain access to long-term advances. 

See 12 U.S.C. 1430(g)(1). The 

regulations promulgated by the Finance 

Board must take into account factors 

such as the Bank member’s performance 

under the Community Reinvestment Act 

of 1977 (CRA), 12 U.S.C. 2901 et seq., 

and record of lending to first-time 

homebuyers. See 12 U.S.C. 1430(g)(2). 

Pursuant to section 10(g) of the Bank 

Act, the Finance Board has promulgated 

a community support requirements 

regulation that establishes standards a 

Bank member must meet in order to 

maintain access to long-term advances, 

and review criteria the Finance Board 

must apply in evaluating a member’s 

community support performance. See 

12 CFR part 944. The regulation 

includes standards and criteria for the 2 

statutory factors—CRA performance and 

record of lending to first-time 

homebuyers. 12 CFR 944.3. Only 

members subject to the CRA must meet 

the CRA standard. 12 CFR 944.3(b). All 

members, including those not subject to 

CRA, must meet the first-time 

homebuyer standard. 12 CFR 944.3(c). 

Under the rule, the Finance Board 

selects approximately one-eighth of the 

members in each Bank district for 

community support review each 

calendar quarter. 12 CFR 944.2(a). The 

Finance Board will not review an 

institution’s community support 

performance until it has been a Bank 

member for at least 1 year. Selection for 

review is not, nor should it be construed 

as, any indication of either the financial 

condition or the community support 

performance of the member. 

Each Bank member selected for 

review must complete a Community 

Support Statement and submit it to the 

Finance Board by the February 26, 2007 

deadline prescribed in this notice. 12 

CFR 944.2(b)(1)(ii) and (c). On or before 

January 26, 2007, each Bank will notify 

the members in its district that have 

been selected for this review cycle that 

they must complete and submit a 

Community Support Statement to the 

Finance Board by the deadline. 12 CFR 

944.2(b)(2)(i). The member’s Bank will 

provide a blank Community Support 

Statement Form, which also is available 

on the Finance Board’s Web site: 

www.fhfb.gov. Upon request, the 

member’s Bank also will provide 

assistance in completing the 

Community Support Statement. 

The Finance Board has selected the 

following members for the 2006–07 

fourth quarter community support 

review cycle: 

Federal Home Loan Bank of Boston—District 1 

Union Savings Bank .................................................................................................................... Danbury .................................. Connecticut 

Jewett City Savings Bank ........................................................................................................... Jewett City .............................. Connecticut 

The First National Bank of Litchfield ........................................................................................... Litchfield .................................. Connecticut 

Naugatuck Valley Savings and Loan .......................................................................................... Naugatuck ............................... Connecticut 

New Alliance Bank ...................................................................................................................... New Haven ............................. Connecticut 

Newtown Savings Bank .............................................................................................................. Newtown ................................. Connecticut 

Fairfield County Bank-Corp ......................................................................................................... Ridgefield ................................ Connecticut 

Patriot National Bank .................................................................................................................. Stamford ................................. Connecticut 

First County Bank ........................................................................................................................ Stamford ................................. Connecticut 

Dutch Point Credit Union, Inc ..................................................................................................... Wethersfield ............................ Connecticut 

Windsor Locks Federal Credit Union .......................................................................................... Windsor Locks ........................ Connecticut 

Northeast Bank ............................................................................................................................ Auburn .................................... Maine 

Bangor Federal Credit Union ...................................................................................................... Bangor .................................... Maine 


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