This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

52011

Vol. 62, No. 193

Monday, October 6, 1997

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV96–905–2]

Oranges, Grapefruit, Tangerines, and

Tangelos Grown in Florida;

Procedures to Limit the Volume of

Small Florida Red Seedless Grapefruit;

Correction

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Correcting Amendments.

SUMMARY: This document contains two

corrections to final regulations (FV–96–

905–2), which was published in the

Federal Register on Tuesday, December

31, 1996, (61 FR 69011). The final

regulations established procedures for

limiting the volume of small red

seedless grapefruit entering the fresh

market during the first 11 weeks of each

season.

EFFECTIVE DATE: January 30, 1997.

FOR FURTHER INFORMATION CONTACT:

Kathleen M. Finn, telephone: 202–720–

2491.

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the

subject of these corrections established

procedures for limiting the volume of

small red seedless grapefruit entering

the fresh market during the first 11

weeks of each season. When used in the

regulation of red seedless grapefruit, the

regulation period is defined as the 11

weeks beginning the third Monday in

September and ending the first Sunday

in December of each season. The final

rule’s intent was to effectuate the

regulation period for an 11 week period

during seasons of regulation. However,

in some years, the time specified in the

definition of regulation period extends

beyond 11 weeks. For instance, in the

1997–98 season, the third Monday in

September is September 15. The first

Sunday in December falls on December

7. This time period is 12 weeks. To

extend the regulation period beyond the

11 week period is contrary to what the

rule intended. The final rule overlooked

the possibility of this situation

occurring. Therefore, this action

modifies the language to correctly

define the regulation period as the rule

intended. The regulation will state that

the regulation period will begin on the

third Monday in September and

continue for 11 weeks. In addition, the

final rule established that the percentage

on which to base the amount of small

red seedless grapefruit that could be

shipped during a particular week or

weeks during the regulatory period

could not be less than 25 percent of the

calculated shipment base. This

procedure was designed not to eliminate

shipments of small red seedless

grapefruit but to keep them from

saturating the market. The final rule

stated that such set percentage could

vary from week to week, but could not

be less than 25 percent.

Although the final rule set forth these

procedures in the supplementary

information, the regulatory text of the

rule did not specify this information.

This correction adds that information to

the regulatory text to clarify the

intention of the final rule.

Need for Correction

As published, the final regulations

contain errors which may prove to be

misleading and need to be clarified.

List of Subjects in 7 CFR Part 905

Grapefruit, Marketing agreements,

Oranges, Reporting and recordkeeping

requirements, Tangelos, Tangerines.

Accordingly, 7 CFR part 905 is

corrected by making the following

correcting amendments:

PART 905—ORANGES, GRAPEFRUIT,

TANGERINES, AND TANGELOS

GROWN IN FLORIDA

1. The authority citation for 7 CFR

part 905 continues to read as follows:

Authority: 7 U.S.C. 601–674.

§ 905.153 [Corrected]

2. § 905.153, is amended by revising

the last sentence in paragraph (a) and

adding a sentence at the end of

paragraph (b) to read as follows:

§ 905.153 Procedure for determining

handlers’ permitted quantities of red

seedless grapefruit when a portion of sizes

48 and 56 of such variety is restricted.

(a) * * * The term regulation period

means the 11 week period beginning the

third Monday in September of the

current season.

(b) * * * Such set percentage may

vary from week to week but shall not be

less than 25 percent in any week.

* * * * *

Dated: September 30, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–26362 Filed 10–3–97; 8:45 am]

BILLING CODE 3410–02–P

FEDERAL HOUSING FINANCE BOARD

12 CFR Part 935

[No. 97–62]

RIN 3069–AA60

Restrictions on Advances to NonQualified Thrift Lenders

AGENCY: Federal Housing Finance

Board.

ACTION: Final rule.

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
52012 Federal Register / Vol. 62, No. 193 / Monday, October 6, 1997 / Rules and Regulations

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 nonsavings 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 nonQTL 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
Federal Register / Vol. 62, No. 193 / Monday, October 6, 1997 / Rules and Regulations 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 nonsavings 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 nonsavings 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 crossreference 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
52014 Federal Register / Vol. 62, No. 193 / Monday, October 6, 1997 / Rules and Regulations

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 nonsavings association member at any time

other than the mandatory January-toApril 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 § 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.
Federal Register / Vol. 62, No. 193 / Monday, October 6, 1997 / Rules and Regulations 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:

§ 935.13 Restrictions on advances to

members that are not qualified thrift

lenders.

(a) Restrictions on advances to nonQTL members. * * *

* * * * *

(3)(i) A Bank shall calculate each nonsavings 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
52016 Federal Register / Vol. 62, No. 193 / Monday, October 6, 1997 / Rules and Regulations

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

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 210 and 218

RIN 1010–AC38

Designation of Payor Recordkeeping

AGENCY: Minerals Management Service,

Interior.

ACTION: Interim final rulemaking; notice

of extension of public comment period.

SUMMARY: The Minerals Management

Service (MMS) hereby gives notice that

it is extending the public comment

period on an Interim final rulemaking

and information collection, which was

published in the Federal Register on

August 5, 1997, (62 FR 42062). In

response to requests for additional time,

MMS will extend the comment period

from October 6, 1997, to November 6,

1997.

DATES: Comments must be submitted on

or before November 6, 1997.

ADDRESSES: Comments should be sent

to: David S. Guzy, Chief, Rules and

Publications Staff, Royalty Management

Program, Minerals Management Service,

P.O. Box 25165, MS 3021, Denver,

Colorado 80225–0165; courier delivery

to Building 85, Denver Federal Center,

Denver, Colorado 80225; or

e-Mail DavidlGuzy.mms.gov.

FOR FURTHER INFORMATION CONTACT:

David S. Guzy, Chief, Rules and

Publications Staff, Royalty Management

Program, Minerals Management Service,

telephone (303) 231–3432, Fax (303)

231–3385, e-Mail

DavidlGuzy@mms.gov.

SUPPLEMENTARY INFORMATION: MMS

received requests to extend the

comment period in order to provide

commenters with adequate time to

provide detailed comments to MMS.

After this comment period closes, MMS

will submit an information collection

request to the Office of Management and

Budget (OMB) to extend the authority to

use the information collection in this

Interim Final Rule, titled Designation of

Royalty Payment Responsibility (OMB

Control Number 1010–0107, expiration

date January 31, 1998). We will publish

a Federal Register notice and respond to

any comments received and we will

again invite comment on our request to

OMB to extend this information

collection.

Dated: September 29, 1997.

Lucy Querques Denett,

Associate Director for Royalty Management.

[FR Doc. 97–26355 Filed 10–3–97; 8:45 am]

BILLING CODE 4310–MR–U

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[FRL–5901–7]

Approval and Promulgation of Air

Quality Implementation Plans;

Connecticut; Reasonably Available

Control Technology for Nitrogen

Oxides

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Direct final rule.

SUMMARY: EPA is approving a State

Implementation Plan (SIP) revision

submitted by the State of Connecticut.

This revision establishes and requires

Reasonably Available Control

Technology (RACT) at stationary

sources of nitrogen oxides (NOX). The

intended effect of this action is to

approve regulatory provisions and

source specific orders which require

major stationary sources of NOX to

reduce their emissions statewide in

accordance with requirements of the

Clean Air Act.

DATES: This action is effective December

5, 1997, unless adverse or critical

comments are received by November 5,

1997. If the effective date is delayed,

timely notice will be published in the

Federal Register.

ADDRESSES: Comments may be mailed to

Susan Studlien, Deputy Director, Office

of Ecosystem Protection (mail code

CAA), U.S. Environmental Protection

Agency, Region I, JFK Federal Building,

Boston, MA 02203–2211. Copies of the

documents relevant to this action are

available for public inspection during

normal business hours, by appointment,

at the Office Ecosystem Protection, U.S.

Environmental Protection Agency,

Region I, One Congress Street, 11th

floor, Boston, MA; as well as the Bureau

of Air Management, Department of

Environmental Protection, State Office

Building, 79 Elm Street, Hartford, CT

06106–1630.

FOR FURTHER INFORMATION CONTACT:

Steven A. Rapp, Environmental

Engineer, Air Quality Planning Unit

(CAQ), U.S. EPA, Region I, JFK Federal

Building, Boston, MA 02203–2211;

(617) 565–2773;

Rapp.Steve@EPAMAIL.EPA.GOV.

SUPPLEMENTARY INFORMATION:

I. Background

The Clean Air Act (CAA) requires that

States develop Reasonably Available

Control Technology (RACT) regulations

for all major stationary sources of

nitrogen oxides (NOX) in areas which

have been classified as ‘‘moderate,’’

‘‘serious,’’ ‘‘severe,’’ and ‘‘extreme’’

ozone nonattainment areas, and in all

areas of the Ozone Transport Region

(OTR). EPA has defined RACT as the

lowest emission limitation that a

particular source is capable of meeting

by the application of control technology

that is reasonably available considering

technological and economic feasibility

(44 FR 53762; September 17, 1979). This

requirement is established by sections

182(b)(2), 182(f), and 184(b) of the CAA.

Major sources in moderate areas are

subject to section 182(b)(2), which

requires States to adopt RACT for all

major sources of VOC. This requirement

also applies to all major sources in areas

with higher classifications.

Additionally, section 182(f) of the CAA

states that ‘‘The plan provisions

required under this subpart for major

stationary sources of volatile organic

compounds shall also apply to major

stationary sources (as defined in section

302 and subsections (c), (d), and (e) of

the section) of oxides of nitrogen.’’ For

serious nonattainment areas, a major

source is defined by section 182(c) as a

source that has the potential to emit 50

tons per year. For severe nonattainment

areas, a major source is defined by

section 182(d) as a source that has the

potential to emit 25 tons per year. The

entire State of Connecticut is classified

as nonattainment for ozone, with the

Connecticut portion of the New YorkNew Jersey-Long Island CMSA being

classified as severe, and with the rest of

the State being classified as serious.

These CAA NOX requirements are

further described by EPA in a notice

entitled, ‘‘State Implementation Plans;

Nitrogen Oxides Supplement to the

General Preamble; Clean Air Act

Amendments of 1990 Implementation of

Title I; Proposed Rule,’’ published

November 25, 1992 (57 FR 55620). The

November 25, 1992 notice, also known

as the ‘‘NOX Supplement,’’ should be