[Federal Register Volume 63, Number 142 (Friday, July 24, 1998)]
[Rules and Regulations]
[Page 39702]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-19811]


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FEDERAL HOUSING FINANCE BOARD

12 CFR Part 934

[No. 98-32]
RIN 3069-AA70


Authority to Approve Federal Home Loan Bank Bylaws

AGENCY: Federal Housing Finance Board.

ACTION: Final rule.

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SUMMARY: The Federal Housing Finance Board (Finance Board) is adopting 
the interim final rule that added a new provision to its regulation on 
Federal Home Loan Bank (FHLBank) operations to devolve responsibility 
for approving FHLBank bylaws or amendments thereto from the Finance 
Board to the boards of directors of the FHLBanks as a final rule 
without change. The rule is part of the Finance Board's continuing 
effort to devolve management and governance responsibilities to the 
FHLBanks and is consistent with the goals of the Regulatory Reinvention 
Initiative of the National Performance Review.

EFFECTIVE DATE: The final rule will become effective on August 24, 
1998.

FOR FURTHER INFORMATION CONTACT: Amy R. Maxwell, Compliance Assistance 
Division, Office of Policy, 202/408-2882, or Janice A. Kaye, Attorney-
Advisor, Office of General Counsel, 202/408-2505, Federal Housing 
Finance Board, 1777 F Street, N.W., Washington, DC 20006.

SUPPLEMENTARY INFORMATION:

I. Statutory and Regulatory Background

    Subject to the approval of the Finance Board, section 12(a) of the 
Federal Home Loan Bank Act authorizes the board of directors of each 
FHLBank to ``prescribe, amend, and repeal by-laws, rules, and 
regulations governing the manner in which its affairs may be 
administered.'' 12 U.S.C. 1432(a). In December 1997, the Finance Board 
published an interim final rule with request for comments that added a 
new section, designated as Sec. 934.16, to its regulation on FHLBank 
operations. See 62 FR 65197 (Dec. 11, 1997), codified at 12 CFR 934.16. 
The 30-day public comment period closed on January 12, 1998. See id. 
This new provision authorizes the board of directors of each FHLBank to 
prescribe, amend, or repeal bylaws or bylaws amendments governing the 
manner in which the FHLBank administers its affairs without the prior 
approval of the Finance Board provided that the bylaws or bylaws 
amendments are consistent with applicable statutes, regulations, and 
Finance Board policies.

II. Analysis of Public Comments and the Final Rule

    The Finance Board received one comment in response to the interim 
final rule. The commenter supports the rule because it promotes more 
efficient operations that benefit the FHLBanks, their members, and 
homebuyers. Accordingly, for the reasons set forth in detail in the 
interim final rulemaking, the Finance Board is adopting the interim 
final rule that devolves responsibility for approving FHLBank bylaws 
and amendments thereto from the Finance Board to the boards of 
directors of the FHLBanks without change.

III. Regulatory Flexibility Act

    The Finance Board adopted this amendment to part 934 in the form of 
an interim final rule and not as a proposed rule. Therefore, the 
provisions of the Regulatory Flexibility Act do not apply. See 5 U.S.C. 
601(2), 603(a).

IV. Paperwork Reduction Act

    This final rule does not contain any collections of information 
pursuant to the Paperwork Reduction Act of 1995. See 44 U.S.C. 3501 et 
seq. Consequently, the Finance Board has not submitted any information 
to the Office of Management and Budget for review.

List of Subjects in 12 CFR Part 934

    Federal home loan banks, Securities, Surety bonds.

    Accordingly, the Federal Housing Finance Board hereby adopts the 
interim final rule amending 12 CFR part 934 that was published at 62 FR 
65197 on December 11, 1997, as a final rule without any change.

    Dated: July 8, 1998.

    By the Board of Directors of the Federal Housing Finance Board.
Bruce A. Morrison,
Chairperson.

[FR Doc. 98-19811 Filed 7-23-98; 8:45 am]
BILLING CODE 6725-01-P