[Federal Register Volume 62, Number 193 (Monday, October 6, 1997)]
[Rules and Regulations]
[Pages 52011-52016]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26290]


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FEDERAL HOUSING FINANCE BOARD

12 CFR Part 935

[No. 97-62]
RIN 3069-AA60


Restrictions on Advances to Non-Qualified Thrift Lenders

AGENCY: Federal Housing Finance Board.

ACTION: Final rule.

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SUMMARY: The Federal Housing Finance Board (Finance Board) is amending 
its regulations on advances to members that are not qualified thrift 
lenders. The amendments revise an interim rule and implement the 
Economic Growth and Regulatory Paperwork Reduction Act of 1996 
(EGRPRA), which broadened the types of assets that may be used to 
satisfy the qualified thrift lender (QTL) requirement. The final rule 
includes a safe harbor for ``loans to small businesses'' (i.e., 
commercial loans of $1,000,000 or less or farm loans of $500,000 or 
less) and allows persons other than the chief executive officer (CEO) 
to certify the accuracy of certain QTL information. The final rule also 
changes the dates by which the Federal Home Loan Banks (Banks) must 
determine the QTL status of their members, which conforms the annual 
QTL determination to the date on which commercial loan data become 
available.

EFFECTIVE DATE: The final rule will become effective October 3, 1997, 
except for the amendments to 12 CFR

[[Page 52012]]

935.13(a)(3)(i), which take effect on December 30, 1997.

FOR FURTHER INFORMATION CONTACT: Gregory V. Goggans, Senior Financial 
Analyst, Financial Analysis and Reporting Division, Office of Policy, 
202/408-2878, or Neil R. Crowley, Associate General Counsel, Office of 
General Counsel, 202/408-2990, Federal Housing Finance Board, 1777 F 
Street, N.W., Washington, D.C. 20006.

SUPPLEMENTARY INFORMATION:

I. Background

    On February 27, 1997, the Finance Board published, and requested 
public comments on, an interim rule that amended the regulations 
relating to the QTL status of non-savings association members. 62 FR 
8868 (Feb. 27, 1997). The interim rule required the Banks to use 
financial information from the call reports of such members when 
determining their QTL status, but also allowed the use of other 
information if certified by the member's CEO. The interim rule 
reflected changes made to the QTL test by EGRPRA, as well as by an 
interim rule adopted by the Office of Thrift Supervision (OTS), which 
administers the QTL statute. The Finance Board indicated that it would 
monitor the OTS rulemaking proceeding and expected to incorporate any 
material changes made by OTS into the advances regulation. OTS later 
adopted a final rule that broadened the definition of the term ``loans 
to small businesses'' as used in the QTL provisions. 62 FR 15819 (April 
3, 1997). The Finance Board is now incorporating the substance of the 
OTS definition of ``loans to small businesses'' and is shifting forward 
by six months the period within which the Banks must determine the QTL 
status of their non-savings association members. The final rule also 
allows the CEO to delegate to the chief financial officer, chief 
operating officer, or controller of such members the authority to 
certify the accuracy of any QTL financial data that do not appear in 
the member's call report.
    In 1987, Congress established the QTL test, which required savings 
associations to maintain 60 percent of their assets in instruments 
related to domestic residential real estate or manufactured housing. 
Competitive Equality Banking Act of 1987, Pub. L. 100-86, sec. 104(c), 
101 Stat. 571-573 (August 10, 1987). The QTL test now requires savings 
associations to maintain 65 percent or more of their assets in what are 
characterized as ``qualified thrift investments.'' 12 U.S.C. 1467a(m). 
The QTL test does not apply directly to commercial banks or credit 
unions, but, in 1989, when Congress authorized commercial banks and 
credit unions to become members of the Federal Home Loan Bank System 
(System), it also limited their access to advances if they do not 
comply with the QTL test. Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 (FIRREA), Pub. L. 101-73, sec. 704(a), 103 
Stat. 415 (August 9, 1989), codified at 12 U.S.C. 1424(a). 
Specifically, FIRREA required such members that do not meet the QTL 
test to purchase greater amounts of Bank stock to support their 
advances, and mandated that they could obtain advances only for housing 
finance purposes. FIRREA also gave QTL members a priority over non-QTL 
members on access to advances, and imposed a 30 percent System-wide 
limit on the aggregate amount of advances that could be outstanding to 
non-QTL members. 12 U.S.C. 1430(e).
    The Banks are required to determine the QTL status of each non-
savings association member at least annually, between January 1 and 
April 15, based on financial information as of December 31 of the prior 
calendar year. To do so, they must calculate the ``actual thrift 
investment percentage'' (ATIP) for each such member, which is obtained 
by dividing the institution's ``qualified thrift investments'' by its 
``portfolio assets.'' 12 CFR 935.13(a)(3). In EGRPRA, Pub. L. 104-208, 
110 Stat. 3009 (Sept. 30, 1996), Congress amended the QTL test by 
broadening the universe of assets that are considered to be ``qualified 
thrift investments.'' Pursuant to those amendments, loans for 
educational purposes, loans to small businesses, and loans made through 
credit cards or credit card accounts, as well as an increased amount of 
consumer loans, now may be included when determining the amount of an 
institution's ``qualified thrift investments.'' Congress directed OTS 
to define the term ``small business'' for purposes of the amended QTL 
test, which OTS has done. 61 FR 60179 (Nov. 27, 1996) (interim rule); 
62 FR 15819 (Apr. 3, 1997) (final rule), codified at 12 CFR 560.3.
    As part of its interim rule, OTS defined ``small business loans'' 
narrowly, limiting the term to any loan made to a small business 
concern or entity as defined by the Small Business Act, 15 U.S.C. 
632(a), and the implementing regulations of the Small Business 
Administration (SBA). The practical effect of relying solely on the SBA 
regulations was to exclude from the QTL calculation any business loans 
for which the lender did not possess the documentation required to 
demonstrate that the loan in fact would satisfy the rather detailed 
requirements of the SBA regulations. Because of the complexity of those 
SBA provisions, and in response to public comments, the OTS final rule 
revised the definition to add a ``safe harbor'' provision for ``small 
business loans'' and ``loans to small businesses.'' Under the ``safe 
harbor'' provision of the OTS final rule, a commercial loan also is 
deemed to be a loan to small business for QTL purposes if the loan 
meets the criteria for ``loans to small businesses and small farms'' 
set out in the instructions for the OTS Thrift Financial Report. 62 FR 
15819, 15825 (Apr. 3, 1997), codified at 12 CFR 560.3. Under those 
criteria, a ``loan to small business'' includes any business loan (or 
any series of loans to the same borrower) in the original amount of 
$1,000,000 or less, or any farm loan (or series of loans to the same 
borrower) in the original amount of $500,000 or less.
    The Finance Board issued its interim rule based on the provisions 
of EGRPRA, as implemented by the OTS interim rule. Thus, the Finance 
Board's interim rule directed the Banks to use the financial 
information from their members' December 31 call reports as the primary 
source for QTL determinations. 12 CFR 935.13(a)(3). The interim rule 
recognized that certain items, such as business loans that meet the SBA 
definition, are not separately identified on the call report. 
Accordingly, the interim rule also included a certification procedure 
under which a member could include in its QTL calculation items that do 
not appear on the call report, provided the accuracy of the information 
was certified by the CEO of the member. The Finance Board acknowledged 
the practical difficulties associated with using the SBA definition of 
small business loan and solicited comments on all aspects of the 
interim rule.

II. Comments

    The Finance Board received twelve comments on the interim rule. All 
of the commenters who addressed the issue of certification endorsed the 
concept as a practical method of providing information necessary for 
the QTL calculation that does not appear in the call report. Most of 
those also suggested that officers other than the CEO be allowed to 
execute the certification. One commenter suggested that the involvement 
of the CEO was necessary to ensure the accuracy of the information and 
should not be delegated to any other officer. Of those addressing the 
issue of loans to small businesses, all commenters favored the use of a 
proxy (such as the call report data on

[[Page 52013]]

commercial loans to small businesses) in addition to, or in lieu of, 
the SBA definition of small business loans.

III. Description of the Final Rule

    One commenter questioned whether the interim rule was intended to 
allow the Banks to rely on certifications from their members as an 
alternative, rather than as a supplement, to the information obtained 
from the call report. The intention of the Finance Board is that the 
members' call reports, as that term is defined, are to be the principal 
source of the financial information used to calculate the QTL status of 
the members. The Finance Board recognizes that certain items that are 
included as ``qualified thrift investments'' or ``portfolio assets'' 
under the QTL test are not separately identified on the call report. It 
is with respect to those items that the Banks may accept a 
certification from the member.
    The Finance Board also recognizes that some Banks may, as a matter 
of practice, first obtain uncertified information from their members 
regarding their QTL assets and subsequently confirm the accuracy of 
that information against the members' call report. The final rule would 
not affect that practice, provided that the Bank uses the available 
call report data when making the final QTL calculation. Any information 
that is not derived from the call report may be used in the QTL 
calculation only if a member provides the appropriate certification. 
The intent in creating the certification provision is to provide a 
means by which non-savings association members may include within the 
QTL calculation any eligible assets that are not available from the 
call report, at the option of the member; such certifications are not 
mandated.
    The Finance Board believes that the commenters' contention that the 
CEO need not be the only officer authorized to certify the accuracy of 
a member's non-call report financial data presents a legitimate issue. 
Accordingly, the final rule allows the CEO to delegate his or her 
authority to sign the certification to the chief financial officer, 
chief operating officer, or controller of a non-savings association 
member. As noted in the interim rule, in requiring a certification the 
Finance Board has attempted to strike a balance between its need to 
ensure that the Banks base their QTL calculations on accurate financial 
information and the desire of the Banks to manage their affairs with 
their members.
    The Finance Board does not believe that it would be prudent to 
allow more junior officers to execute the QTL certifications because 
the Banks, and the Finance Board, have no independent means of 
verifying that information. The Finance Board does not examine the 
members of the Banks; such examinations are conducted by the principal 
federal or state regulators. With respect to the non-savings 
association members, the principal regulators do not examine their 
subjects for compliance with the QTL test. Without an independent 
examination of QTL status, the Finance Board needs some other means of 
ensuring that the information used by the Banks is accurate. By 
requiring the formality of a written certification from a senior 
officer, the Finance Board believes that the Banks will have sufficient 
assurance that the matter has received careful consideration by the 
member. Allowing the CEO to delegate signature authority to additional 
senior officers should address the commenters' concerns that CEO not be 
burdened with this task, while maintaining accountability at the CEO 
level. As a point of clarification, the certification provision does 
not require, as some commenters apparently believe, that the senior 
officers must personally determine the amount and composition of QTL 
assets that do not appear separately on the call report. The 
certification provisions require only that the CEO or, if the CEO 
delegates that authority, one of the senior officers specified by the 
rule, sign and date the certification. As with other corporate matters, 
it is assumed that senior management will assign to the appropriate 
employees the task of compiling the information.
    As was noted in the interim rule, the use of the SBA definition of 
small business loans for QTL purposes was problematic because it would 
exclude from the QTL calculation of ``qualified thrift investments'' 
any small business loans that did not meet the detailed requirements 
for SBA loans. Under the SBA regulations, a ``small business'' is an 
entity the gross receipts of which (or the number of its employees) 
fall below certain thresholds specified by SBA, which may vary 
depending on the type of business in which the entity is engaged. 
Unless a member had made a loan in connection with a SBA program, it 
would be unlikely to have obtained such information for its loan files. 
OTS addressed this issue in its final rule by including a ``safe 
harbor'' provision, which defines ``small business loans'' and ``loans 
to small businesses'' to include any other business loan in the 
original amount of $1,000,000 or less and any farm loan in the original 
amount of $500,000 or less.
    The Finance Board endorses the concept of a safe harbor for loans 
to small businesses and small farms and is adopting the same approach 
for its advances regulation. The Finance Board, however, is defining 
the term ``loans to small businesses'' expressly, rather than by 
incorporating by reference the OTS regulations. The OTS regulation 
defines ``loans to small business'' by reference to the term ``loans to 
small businesses and small farms,'' which, in turn, is located within 
the definitions portion of the instructions for the OTS ``Thrift 
Financial Report.'' Because the non-savings association members of the 
Banks do not submit the Thrift Financial Report, and may not be 
familiar with its instructions, the Finance Board believes that a bare 
cross-reference to the OTS regulation or to the Thrift Financial Report 
instructions would not provide the specificity that the Banks and their 
non-savings association members require. Accordingly, the final rule 
provides that for QTL purposes the term ``loans to small businesses'' 
shall include any business or commercial loans (including a series of 
loans to the same borrower) in an original amount of $1,000,000 or 
less, and any farm loans (including a series of loans to the same 
borrower) of $500,000 or less, as well as any loan to an entity that 
satisfies the SBA definition of a ``small business.''
    One reason why OTS adopted, and why the commenters suggested that 
the Finance Board adopt, the $1,000,000 and $500,000 thresholds for 
loans to small businesses and small farms is that the information is 
readily available from existing sources. The federal banking agencies 
require the depository institutions that they supervise to submit 
periodic information about the composition of their loan portfolios as 
part of their quarterly call reports. The call report that is to be 
filed as of June 30 includes a schedule for loans to small businesses 
and small farms, on which the institutions must report the number and 
amount currently outstanding as of June 30 of business loans with 
original amounts of $1,000,000 or less and farm loans of $500,000 or 
less. Using that information to determine the amount of the ``loans to 
small businesses'' for purposes of the QTL calculation, as OTS has 
done, also is consistent with the provisions of the Finance Board's 
interim rule that require the Banks to use the call report as the 
principal source of financial information for the QTL test. Moreover, 
the use of existing call report data would not entail any additional

[[Page 52014]]

recordkeeping by the Banks or their non-savings association members.
    The one complicating factor associated with using the commercial 
loan schedule to the call reports as the source for information on 
loans to small businesses is that the depository institutions submit 
the detailed data on their commercial loan portfolios only with their 
June 30 call report. That arrangement conflicts with the existing time 
period within which the Banks conduct their annual QTL determinations, 
which must be done between January 1 and April 15 and must be based on 
information as of December 31 of the prior calendar year. Because the 
category of loans to small businesses is apt to be a significant 
portion of the ``qualified thrift investments'' of the non-savings 
association members, most of which are commercial banks, the Finance 
Board believes that it would be a better practice for the annual QTL 
determination to be performed soon after that information on loans to 
small businesses becomes available. Accordingly, the final rule shifts 
the QTL calculation period forward by six months. The Finance Board 
informally solicited the views of the Banks on the use of the June 30 
call reports, and all but two of the Banks favored using that source. 
Because the Banks may obtain the call report data from commercial 
providers, some of which may not become available in final form until 
early October, the Finance Board has extended the end of the period to 
October 31, which should give all Banks ample time to conduct their QTL 
calculations.
    The Finance Board considered retaining the current January-to-April 
QTL period and allowing the Banks to use the December 31 data for all 
items but for loans to small businesses, for which the source would be 
the prior June 30 call report. Using financial data derived from 
reports that are six months apart, however, could lead to inaccurate 
QTL calculations and would prevent the Finance Board, and the Banks, 
from having an accurate QTL determination as of a particular date. The 
Finance Board believes that it is important for all of the Banks to 
conduct their required annual QTL determinations as of the same date so 
that there be some uniformity within the System and the Finance Board 
will have accurate System-wide QTL data should the 30 percent cap on 
the aggregate amount of advances to non-QTL members become an issue.
    The use of the June 30 call report data should enable a 
substantially greater number of non-savings association members to 
increase their ATIP and come into compliance with the QTL requirement. 
Because the final rule would ease compliance with the QTL test, the 
Finance Board has decided to make the portion of the rule allowing the 
use of the June 30 call report data effective on publication in the 
Federal Register. In that way the Banks will be able immediately to 
recalculate the QTL status of its non-savings association members based 
on the June 30, 1997 commercial loan data. Under the existing Finance 
Board regulations regarding the annual QTL determination, which would 
remain in effect until year-end, the Banks may calculate the QTL status 
of any non-savings association member at any time other than the 
mandatory January-to-April annual calculation period, provided that 
when doing so they use the data from the most recent call report. 12 
CFR 935.13(a)(3)(i).
    Because the Banks have completed the required 1997 annual QTL 
determinations earlier this year, the Finance Board has decided not to 
impose the mandatory July-to-October annual QTL calculation on the 
Banks for 1997. Accordingly, that provision of the final rule will not 
take effect until December 30, 1997, which means that the annual 
mandatory QTL calculation for 1998 will occur between July and October 
1998, and will be based on call report data as of June 30, 1998. The 
combination of the different effective dates is intended to allow the 
Banks the flexibility to determine when to apply the revised QTL 
provisions to their members. Thus, the Banks may take advantage of the 
new safe harbor provision for loans to small business immediately, 
should they choose to do so, but the final rule does not mandate that 
they do so again for this year. If a Bank has determined earlier this 
year that a non-savings association member met the QTL test, it need 
not recalculate that member's QTL status until the 1998 annual 
calculation.
    As noted above, the Banks have the option of recalculating the QTL 
status of their non-savings association at any time, should they choose 
to do so. That provision is in the current rule and is retained in this 
final rule, with one revision. When making QTL calculations at any time 
other than the required annual calculation, the Banks still must use 
the most recent call report available for the member, except for 
information that is not included in any call report and is certified by 
a senior officer. For purposes of determining a member's outstanding 
commercial loans of $1,000,000 or less or its farm loans of $500,000 or 
less, the ``most recent call report'' will always be the prior June 30 
call report. Thus, it is permissible for a Bank that is making a QTL 
determination at some time other than during the annual QTL 
determination, to use data from two separate call reports. That would 
be the case whether the QTL determination is being done for an existing 
member, such as in response to a change in the composition of the 
member's assets, or for a new member, for which the QTL test is being 
done for the first time. For example, if a commercial bank were to 
become a member of the System in December, the Bank could use the 
financial information from the September 30 call report for all items 
except for commercial loans of $1 million or less and farm loans of 
$500,000 or less. The information about those commercial and farm loans 
would be obtained from the June 30 call report. Any additional 
information that is required for the QTL test, but that is not on 
either of the call reports, could be submitted by certification, but 
only if the member were to choose to do so.

IV. Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required for this rule, 
the provisions of the Regulatory Flexibility Act (RFA), 5 U.S.C. 601, 
et seq., do not apply. The final rule implements statutory changes to 
the QTL test and conforms the Finance Board regulations to EGRPRA. 
Moreover, the final rule would not impose any additional regulatory 
requirements on small entities of the type contemplated by the RFA, and 
reduces the regulatory burdens on all non-savings association members.

V. Paperwork Reduction Act

    As part of the interim final rulemaking, the Finance Board 
published a request for comments concerning the collection of 
information contained in Sec. 935.13 of the interim final rule. See 62 
FR 8870 (Feb. 27, 1997). The Finance Board did not receive any 
comments. The Finance Board submitted an analysis of the information 
collection to the Office of Management and Budget (OMB) for review in 
accordance with section 2507 of the Paperwork Reduction Act of 1995. 
See 44 U.S.C. 3507. OMB assigned a control number, 3069-0057, and 
approved the information collection without conditions with an 
expiration date of April 30, 2000. Potential respondents are not 
required to respond to the collection of information unless the 
regulation collecting the information displays a currently valid 
control number assigned by OMB. See id.

[[Page 52015]]

3512(a). Although the final rule does not substantively or materially 
modify the approved information collection, it reduces the reporting 
and recordkeeping burden imposed on many respondents by permitting use 
of ``loans to small businesses,'' as reported on June 30 call reports, 
as a proxy for small business loans as defined by the SBA. The title, 
description of need and use, and a description of the information 
collection requirements in the final rule are discussed in parts I 
through III of the Supplementary Information.
    The following table discloses the estimated annual reporting and 
recordkeeping burden approved by OMB:
    The estimated annual reporting and recordkeeping hour burden is:

a. Number of respondents--4272
b. Total annual responses--4272
Percentage of these responses collected electronically--0%
c. Total annual hours requested--3930
d. Current OMB inventory--0
e. Difference--3930

    The estimated annual reporting and recordkeeping cost burden is:

a. Total annualized capital/startup costs--0
b. Total annual costs (O&M)--0
c. Total annualized cost requested--$126,660
d. Current OMB inventory--0
e. Difference--$126,660

Any comments concerning the information collection should be submitted 
to Elaine L. Baker, Executive Secretary, Federal Housing Finance Board, 
1777 F Street, N.W., Washington, D.C. 20006, and the Office of 
Information and Regulatory Affairs of the Office of Management and 
Budget, Attention: Desk Officer for Federal Housing Finance Board, 
Washington, D.C. 20503.

VI. Other Procedural Requirements

    The Finance Board has determined that the notice and comment 
procedure ordinarily required by the Administrative Procedure Act (APA) 
is not required in this instance. The APA authorizes agencies to waive 
the notice and comment procedures when the agency ``for good cause 
finds * * * that notice and public procedure thereon are impracticable, 
unnecessary, or contrary to the public interest.'' 5 U.S.C. 
553(b)(3)(B). The Finance Board made such a determination with respect 
to the interim rule, finding that a delay would deny the Banks the 
opportunity to incorporate the newly expanded QTL provisions into the 
required annual QTL determinations of their members. The final rule 
does not differ substantially from the interim rule, except by 
conforming the definition of loans to small businesses to the OTS rule 
and by otherwise incorporating revisions suggested by the public 
commenters.
    The Finance Board also has determined that the 30-day delay of the 
effectiveness provisions of the APA may be waived in these 
circumstances. Section 553(d) of the APA permits waiver of the 30-day 
delayed effective date requirement, among other things, where a 
substantive rule relieves a restriction, or otherwise for good cause 
found by the agency. The Finance Board finds that there is good cause 
for making the final rule, with the exception of the amendments to 12 
CFR 935.13(a)(3)(i), effective on October 3, 1997 because it will allow 
the Banks to take advantage of the June 30 call report data as soon as 
it becomes available, thereby relieving a regulatory burden on members 
that will come into compliance with the QTL test as a result of these 
amendments. The amendments to 12 CFR 935.13(a)(3)(i) will take effect 
on December 30, 1997.

List of Subjects in 12 CFR Part 935

    Credit, Federal home loan banks.

    Accordingly, the Federal Housing Finance Board hereby amends title 
12, chapter IX, part 935 of the Code of Federal Regulations, to read as 
follows:

PART 935--ADVANCES

    1. The authority citation for part 935 continues to read as 
follows:

    Authority: 12 U.S.C. 1422b(a)(1), 1426, 1429, 1430, 1430b, and 
1431.

    2. Section 935.13 is amended by revising paragraph (a)(3) and by 
adding an OMB parenthetical sentence following the section to read as 
follows:


Sec. 935.13  Restrictions on advances to members that are not qualified 
thrift lenders.

    (a) Restrictions on advances to non-QTL members. * * *
* * * * *
    (3)(i) A Bank shall calculate each non-savings association member's 
ATIP at least annually, between July 1 and October 31, based upon 
financial data as of June 30 of that calendar year. The Bank may, in 
its discretion, calculate a member's ATIP more frequently than 
annually.
    (ii) In determining a non-savings association member's annual ATIP, 
a Bank shall use the financial information from the member's June 30 
call report as the primary source of information. A Bank making ATIP 
determinations other than as part of the annual QTL determination 
(whether for existing members or new members) shall use the member's 
most recent call report, except that in determining the amount of a 
member's loans to small businesses a Bank may use the information for 
such loans on the member's most recent June 30 call report. If any 
information necessary for determining the member's ATIP is not 
separately identified on a member's call report, the Bank may rely on a 
written certification provided by the member that attests to the dollar 
amount and composition of those other assets that meet the definitions 
of ``qualified thrift investments'' or ``portfolio assets'' as of the 
date of the call report. Notwithstanding the preceding two sentences, a 
Bank may, at its option, accept from a non-savings association member 
preliminary information as to the dollar amount and composition of 
assets that meet the definitions of ``qualified thrift investments'' or 
``portfolio assets,'' provided that the Bank thereafter verifies 
against the most recent call report the accuracy of any items that also 
are available from the call report. In any case in which a Bank relies 
on a certification from a non-savings association member as to its 
level of ``qualified thrift investments'' or ``portfolio assets,'' the 
certification must recite that the information is accurate as of the 
date specified, must be in writing and be signed and dated by the chief 
executive officer of the member. The chief executive officer may 
delegate authority to sign and date the certification to the chief 
financial officer, chief operating officer, or controller of the 
member.
    (iii) For purposes of this section, the term ``call report'' shall 
include:
    (A) With respect to a commercial bank, the annual or quarterly 
``Report of Condition and Income'' submitted to its appropriate Federal 
banking agency;
    (B) With respect to a credit union, the quarterly or semi-annual 
call report submitted to the National Credit Union Administration; and
    (C) With respect to an insurance company, its National Association 
of Insurance Commissioners annual regulatory filing.
    (iv) For purposes of this section, the amount of a member's ``loans 
to small businesses'' shall include any commercial or business loan (or 
series of loans to the same borrower) in the original amount of $1 
million or less, any farm loan (or series of loans to the same 
borrower) in the original amount of $500,000 or less, and any loan to a 
``small business'' as that term is defined by section 3(a) of the Small 
Business Act, 15 U.S.C. 632(a), and implemented by the Small Business 
Administration at

[[Page 52016]]

13 CFR part 121, or any successor provisions.
* * * * *
(The Office of Management and Budget approved the information 
collection requirements contained in this section and assigned 
control number 3069-0057 with an expiration date of April 30, 2000)

    Dated: September 10, 1997.

    By the Board of Directors of the Federal Housing Finance Board
Bruce A. Morrison,
Chairperson.
[FR Doc. 97-26290 Filed 10-3-97; 8:45 am]
BILLING CODE 6725-01-U