Federal Register / Vol. 63, No. 21 / Monday, February 2, 1998 / Notices 5381

1998; an April Quarterly Report on

April 15, 1998, with coverage dates from

March 19 through March 31, 1998; a

Pre-Runoff Report on May 21, 1998,

with coverage dates from April 1

through May 13, 1998; and a

consolidated Post-Runoff & July

Quarterly Report on July 15, 1998, with

coverage dates from May 14 through

June 30, 1998.

All principal campaign committees of

candidates in the Special General

Election only and all other political

committees not filing monthly which

support candidates in the Special

General Election shall file a 12-day PreGeneral Report on March 26, with

coverage dates from the close of the last

report filed, or the date of the

committee’s first activity, whichever is

later, through March 18; an April

Quarterly Report on April 15, with

coverage dates from March 19 through

March 31; and a Post-General Report on

May 7, with coverage dates from April

1 through April 27, 1998.

All political committees not filing

monthly which support candidates in

the Special Runoff only shall file a 12-

day Pre-Runoff Report on May 21, with

coverage dates from the last report filed

or the date of the committee’s first

activity, whichever is later, through May

13, and a consolidated Post-Runoff &

July Quarterly Report on July 15, with

coverage dates from May 14 through

June 30, 1998.

CALENDAR OF REPORTING DATES FOR CALIFORNIA SPECIAL ELECTION

Report Close of

books 1

Registered/

Certified mailing date 2Filing date

If only the special general is held (04/07/98), committees must file:

Pre-General ........................................................................................................................... 03/18/98 03/23/98 03/26/98

April Quarterly ....................................................................................................................... 03/31/98 04/15/98 04/15/98

Post-General ......................................................................................................................... 04/27/98 05/07/98 05/07/98

If two elections are held, but a Committee is involved only in the special general (04/07/98):

Pre-General ........................................................................................................................... 03/18/98 03/23/98 03/26/98

April Quarterly ....................................................................................................................... 03/31/98 04/15/98 04/15/98

Committees involved in the special general (04/07/98) and special runoff (06/02/98) must file:

Pre-General ........................................................................................................................... 03/18/98 03/23/98 03/26/98

April Quarterly ....................................................................................................................... 03/31/98 04/15/98 04/15/98

Pre-Runoff ............................................................................................................................. 05/13/98 05/18/98 05/21/98

Post-Runoff & July Quarterly 3 .............................................................................................. 06/30/98 07/15/98 07/15/98

Committees involved in the special runoff (06/02/98) only must file:

Pre-Runoff ............................................................................................................................. 05/13/98 05/18/98 05/21/98

Post-Runoff & July Quarterly 3 .............................................................................................. 06/30/98 07/15/98 07/15/98

1The period begins with the close of books of the last report filed by the committee. If the committee has filed no previous reports, the period

begins with the date of the committee’s first activity. 2 Reports sent by registered or certified mail must be postmarked by the mailing date; otherwise, they must be received by the filing date.

3 Committees should file a consolidated Post-Runoff and July Quarterly Report by the filing date of the July Quarterly Report.

Dated January 28, 1998.

Joan D. Aikens,

Chairman, Federal Election Commission.

[FR Doc. 98–2461 Filed 1–30–98; 8:45 am]

BILLING CODE 6715–01–M

FEDERAL EMERGENCY

MANAGEMENT AGENCY

Open Meeting, Technical Mapping

Advisory Council

AGENCY: Federal Emergency

Management Agency (FEMA).

ACTION: Notice of teleconference

meeting.

SUMMARY: In accordance with § 10(a)(2)

of the Federal Advisory Committee Act,

5 U.S.C. App. 1, the Federal Emergency

Management Agency gives notice that

the following teleconference meeting

will be held:

NAME: Technical Mapping Advisory

Council.

DATE OF MEETING: February 12, 1998.

PLACE: The FEMA Conference Operator

in Washington, DC will arrange the

teleconference. Individuals interested in

participating should fax a request

including their telephone number to

(202) 646–4596 by February 6, 1998.

TIMES: 11:00 a.m. to 1:00 p.m.

PROPOSED AGENDA: Council members

will provide progress reports on

subgroup assignments and action items

from the last meeting.

STATUS: This teleconference meeting is

open to the public.

FOR FURTHER INFORMATION CONTACT:

Michael K. Buckley, P.E., Federal

Emergency Management Agency, 500 C

Street SW., room 421, Washington, D.C.

20472; telephone (202) 646–2756 or by

fax as noted above.

Michael J. Armstrong,

Associate Director for Mitigation.

[FR Doc. 98–2462 Filed 1–30–98; 8:45 am]

BILLING CODE 6718–04–P]

FEDERAL HOUSING FINANCE BOARD

[No. 98–01]

Statement of Policy: Disclosures in the

Combined Annual and Quarterly

Financial Reports of the Federal Home

Loan Bank System

AGENCY: Federal Housing Finance

Board.

ACTION: Proposed policy statement.

SUMMARY: The Board of Directors of the

Federal Housing Finance Board

(Finance Board) is proposing to adopt a

statement of policy entitled

‘‘Disclosures in the Combined Annual

and Quarterly Financial Reports of the

Federal Home Loan Bank System.’’ The

policy statement will generally require

that the combined annual and quarterly

financial reports of the Federal Home

Loan Bank (FHLBank) System be

prepared in accordance with the

disclosure rules applicable to Securities

and Exchange Commission (SEC)

registrants.

DATES: The Finance Board will accept

comments through March 19, 1998.
5382 Federal Register / Vol. 63, No. 21 / Monday, February 2, 1998 / Notices

1At September 30, 1997, consolidated obligations

outstanding were $284.5 billion, and the amount of

consolidated obligations issued in the first nine

months of 1997 was $1.572 trillion.

ADDRESSES: Mail comments to Elaine L.

Baker, Executive Secretary, Federal

Housing Finance Board, 1777 F Street,

N.W., Washington, D.C. 20006.

Comments will be available for public

inspection at this address.

FOR FURTHER INFORMATION CONTACT:

Joseph A. McKenzie, Director, Financial

Analysis and Reporting Division, Office

of Policy, 202–408–2845, or Deborah F.

Silberman, Acting General Counsel,

Office of General Counsel, 202–408–

2570, Federal Housing Finance Board,

1777 F Street, N.W., Washington, D.C.

20006.

SUPPLEMENTARY INFORMATION: The

FHLBank Act (12 U.S.C. 1431(c))

authorizes the Finance Board to issue

FHLBank consolidated obligations. As

issuer of the FHLBank System debt, the

Finance Board prepares the combined

annual and quarterly financial reports

that are used as principal disclosure

documents in conjunction with the

offering of this debt.

Until now, the Board of Directors of

the Finance Board has established no

formal policies as to the scope and

content of the combined annual and

quarterly financial reports of the

FHLBank System. Since the

establishment of the Finance Board in

1989, the combined annual report has

grown in length as the disclosures have

become more detailed and more

comprehensive. Current practices

represent an evolving consensus

reached among Finance Board staff,

FHLBank staff, the independent outside

accountant for the combined financial

report, and outside bond counsel. As

generally accepted accounting

principles and industry disclosure

standards have changed, so have the

combined annual and quarterly reports

keep up with industry disclosure

standards.

In most but not all respects, the

combined annual and quarterly

financial reports are similar in scope

and content to reports that registrants

must file with the Securities and

Exchange Commission (SEC) under the

Securities Exchange Act of 1934, 15

U.S.C. 78a et seq., (1934 Act). The

Finance Board staff prepares the

combined financial reports using

financial and other information

provided by the FHLBanks and the

Office of Finance. Office of Finance staff

and outside bond counsel review these

combined reports. The independent

outside accountant audits the financial

statements that appear in the combined

annual financial report. In addition, the

independent outside accountant reviews

but does not issue an opinion on the

combined quarterly financial

statements.

The Finance Board’s proposed policy

statement would require that the

combined annual and quarterly

financial reports of the FHLBank System

follow existing SEC disclosure rules

with certain specific exceptions. For

three reasons, the Finance Board is

proposing the adoption of this policy

statement concerning financial and

other disclosures in the combined

annual and quarterly financial reports.

The first reason is that Finance Board,

as one of the largest issuers of debt

securities in the U.S. capital markets,

believes it has an obligation to provide

adequate disclosures that generally

agree with industry standards.1 In

addition, one of the statutory

responsibilities of the Finance Board is

to ensure that the FHLBanks remain

able to raise funds in the capital markets

(see 12 U.S.C. 1422a(a)(3)(b)(iii)). By

adopting the proposed statement of

policy, the Finance Board will address

a significant policy matter on how the

FHLBank System disclosure is provided

to maintain the ability of the FHLBanks

to raise funds in the capital markets.

The second reason is that SEC

disclosure rules represent ‘‘best

practice,’’ and the financial and other

disclosures provided by the FHLBank

System should follow this standard.

Thirdly, the proposed policy

statement will address recent

Congressional actions that could have

subjected the FHLBanks and the

Finance Board to the registration and

reporting requirements of the Securities

Act of 1993, 15 U.S.C. 77c(a)(2)), (1933

Act), and the 1934 Act.

The proposed policy affirms existing

practice generally to provide disclosure

that complies with SEC requirements.

The Finance Board solicits comments

on the scope, adequacy, and usefulness

of the existing and proposed disclosures

and whether the Finance Board should

provide any additional disclosures.

Disclosure Standards

Section 3(a)(2) of the 1933 Act

exempts the Finance Board and the

FHLBanks from all SEC registration

requirements under the 1933 Act. In

addition, publicly traded commercial

banks and savings associations that are

not part of holding companies are

exempt from SEC registration under the

1933 Act, but must register and file

reports with their primary Federal

regulators pursuant to 1934 Act.

Further, the Office of the Comptroller of

the Currency (OCC) has adopted

securities offering disclosure policies for

non-affiliated commercial banks that are

almost identical to SEC disclosure

requirements. The Office of Thrift

Supervision (OTS) also has securities

offering disclosure rules for its regulated

institutions that mirror SEC disclosure

requirements. The OCC, OTS, and

Federal Deposit Insurance Corporation

(FDIC) all require their regulated

institutions to file reports under the

1934 Act in conformance with the forms

and requirements promulgated by the

SEC under the 1934 Act or in

accordance with forms and

requirements adopted by the agencies

but modeled after SEC requirements and

forms. The SEC disclosure rules

represent the industry standard, and the

bank and thrift regulators have largely

adopted these standards.

The proposed policy statement would

require as a general matter that the

combined annual and quarterly

financial reports of the FHLBank System

meet the SEC disclosure standards, with

noted exceptions. The combined annual

financial reports already generally

comply with SEC disclosure

requirements, with several exceptions.

These current exceptions include

biographical information about

FHLBank directors, executive

compensation, capital stock holdings,

and related-party transactions. In

addition, the 1996 combined annual

report did not provide disclosures about

derivatives as comprehensive as that

required by new SEC derivative

disclosure rules adopted in 1997. In

following the SEC disclosure rules, the

combined annual financial report

would, under the proposed policy

statement, include new disclosures on

compensation, capital stock holdings,

related-party transactions, and property

and premises.

The SEC rules were broadly written,

and thus contain disclosures that were

not intended for wholesale financial

institutions such as the FHLBanks.

Furthermore, the FHLBanks are

cooperatives where officers of members

serve on the boards of directors of the

FHLBanks. As such, related-party

transactions are to be expected.

Exceptions to Following SEC Rules

The FHLBank System presents a

number of unique institutional factors.

These include the cooperative nature of

the System, the fact that the FHLBanks

are wholesale financial institutions, and

the unusual role of the Finance Board as

issuing the debt and preparing the

financial report for combined 12

regulated entities. For these reasons,
Federal Register / Vol. 63, No. 21 / Monday, February 2, 1998 / Notices 5383

some of the SEC disclosure rules are

either inapplicable or inappropriate for

the FHLBank System.

The combined annual and quarterly

financial reports would, under the

proposed policy statement, not follow

the SEC rule in the following areas:

Derivatives. On February 10, 1997, the

SEC published a final rule that

established new required disclosures for

derivative transactions and holdings

(Item 305, Regulation S–K, 17 CFR

229.305) (SEC rule). The SEC rule

applies to all filings made with the SEC

after June 15, 1997, and encompasses all

types of derivatives—commodity,

currency, equity, and financial. The

Finance Board believes that the only

facet of the FHLBanks’ operations that

meets the threshold test for disclosure

in the SEC rule is the interest-rate risk

associated with financial derivatives.

The rule presents only one issue

unique to the FHLBank System. The

System combined financial report rolls

up the financial information of 12

independent portfolios. Many complex

financial organizations fall within the

scope of the rule, but these complex

organizations ultimately report to a

single board of directors. The FHLBanks

report to 12 separate boards of directors,

and each has differing investment

strategies, yet each FHLBank is jointly

and severally liable for the consolidated

obligations of the FHLBank system

issued by the Finance Board.

Information for the System’s

quantitative disclosures would come

from simulation of interest-rate shocks

in the asset-liability management

models of the FHLBanks. The FHLBanks

use different modeling software and

assumptions. Any analysis that would

roll up the results from 12 separate

models should first ensure some

uniformity of assumptions and

methodology to make sure the results

will be meaningful.

In light of these complexities, the

Finance Board proposes that the

FHLBanks provide the Finance Board

the information required to make the

required qualitative disclosures about

derivatives in the 1997 combined

financial report, but proposes a one-year

delay in providing the quantitative

disclosures in the combined annual

financial report. Finance Board staff will

work with FHLBanks’ staff in

developing a methodology for arriving

at a common set of assumptions for the

quantitative analysis that would appear

in the 1998 combined financial report.

Related-Party Transactions. SEC

disclosure rules require the disclosure

of any transaction greater than $60,000

between a director and a related party.

Due to the cooperative nature of the

System, it is expected that the

FHLBanks will have business dealings

with members whose officers also serve

as directors of the FHLBank. It would be

unwieldy to present full disclosures of

all credit relationships between the

FHLBanks and the members their

directors represent in the combined

annual report. The FHLBanks may wish

to consider making this disclosure in

their individual annual reports.

However, the Finance Board proposes

that the combined annual report present

an aggregate disclosure about the

percentage of advances to members

whose officers serve as directors of an

FHLBank. In addition, it proposes that

the combined annual report disclose the

amount of advances to individual

members if those advances amounted $1

billion or more and indicate which of

these members had an officer that also

served as an FHLBank director. The

Finance Board specifically solicits

comments on whether the $1 billion

threshold is appropriate or whether the

threshold should be higher, lower, or a

different type of threshold.

Information about Directors and

Officers. The SEC disclosure rules

require information about all directors

and executive officers of the registrant.

The required information includes

name, age, current and previous

positions with the registrant, terms of

office, family relationships with the

registrant, business experience, and

other directorships. Presenting

biographical information on all

FHLBank directors and all FHLBank

executive officers in the combined

annual report would be unwieldy. The

FHLBanks may wish to consider making

this disclosure in their individual

annual reports. The Finance Board

proposes that the existing biographical

information about members of the Board

of Directors of the Finance Board and

FHLBank presidents be expanded to

include the age of those persons. In

addition, the Finance Board proposes to

provide similar biographical

information about the managing director

of the Office of Finance and the chairs

and vice chairs of the FHLBanks.

Submission of Matters to a Vote of

Stockholders. The SEC disclosure rule

requires registrants to provide certain

information about matters submitted to

stockholders for a vote. The only item

that FHLBank stockholders vote upon is

the annual election of directors. For two

reasons, the Finance Board has

determined to exclude election-ofdirector information from the combined

annual financial statements. First,

matters concerning election of directors

can be handled more expeditiously and

efficiently by separate mailings to an

FHLBank’s stockholders as a part of the

election process. Second, election of

directors occurs in the fall, but the

annual combined financial report is

published in late spring, making it

impossible to provide timely

information about the election of

directors in the combined annual report.

Exhibits. The exhibits specified in the

SEC disclosure rules are generally not

applicable.

The text of the proposed policy

follows:

Federal Housing Finance Board—

Statement of Policy

Disclosures in the Combined Annual

and Quarterly Financial Reports of the

Federal Home Loan Bank System

1. Policy Objective

The Federal Housing Finance Board

(Finance Board) policy on Disclosures

in the Combined Annual and Quarterly

Financial Reports of the Federal Home

Loan Bank System provides that

purchasers of Federal Home Loan Bank

(FHLBank) System consolidated

obligations receive the same types of

disclosures that Securities and

Exchange (SEC) registrants must

provide. As issuer of the debt for the

FHLBank System, the Finance Board

provides many of the disclosures

normally made in conjunction with the

offering of FHLBank System debt in the

combined annual and quarterly

financial reports of the FHLBank

System. The Finance Board has the

explicit statutory responsibility to

ensure that the FHLBanks are able to

raise funds in the capital markets, and

the provision of industry-standard

disclosures facilitates the issuance of

this debt.

2. General Policy

To the extent they are applicable to

the FHLBank System, it is the policy of

the Finance Board that the combined

annual and quarterly financial reports of

the FHLBank System present the

disclosures required by Regulations S–

K and S–X of the SEC (see 17 CFR parts

229 and 210).

3. Exceptions to the General Policy

a. Derivatives. Item 305, Regulation S–

K, 17 CFR 229.305, requires certain

registrants to present information about

their derivatives holdings and activities.

The requirement includes a discussion

of accounting policy for derivatives, a

qualitative discussion about derivatives

by management, and an analysis that

presents quantitative information about

derivatives. The presentation of the

required quantitative information will
5384 Federal Register / Vol. 63, No. 21 / Monday, February 2, 1998 / Notices

be deferred until the 1998 combined

annual report of the FHLBank System.

b. Related-Party Transactions. Item

404 of Regulation S–K, 17 CFR 229.404,

requires the disclosure of certain

relationships and related transactions.

In light of the cooperative nature of the

FHLBank System, related-party

transactions are to be expected, and a

disclosure of all related-party

transactions that meet the threshold

would not be meaningful. Instead, the

combined annual report will provide

disclosures on (1) the percent of

advances to members an officer of

which serves and an FHLBank director,

(2) a listing of all members that hold $1

billion or more of advances, with a

further disclosure that indicates which

of these members has an officer that

serves as an FHLBank director, and (3)

a general disclosure about equitable

advances pricing.

c. Biographical Information. The

biographical information required by

Items 401 and 405 of Regulation S–K, 17

CFR 229.401, 229.405, will be provided

only for the members of the Board of

Directors of the Finance Board,

FHLBank presidents, the managing

director of the Office of Finance, and

FHLBank chairs and vice chairs.

d. Compensation. The information on

compensation required by Item 402 of

Regulation S–K, 17 CFR 229.402, will be

provided only for members of the Board

of Directors of the Finance Board,

FHLBank presidents, and the managing

director of the Office of Finance.

e. Submission of Matters to a Vote of

Stockholders. No information will be

presented on matters submitted to

shareholders for a vote, as otherwise

required by Item 4 of the SEC’s form 10–

K, 17 CFR 249.310. The only item

shareholders vote upon is the annual

election directors.

f. Exhibits. The exhibits required by

Item 601 of Regulation S–K, 17 CFR

229.601, are not applicable and will not

be provided.

By the Board of Directors of the Federal

Housing Finance Board.

Dated: January 21, 1998.

Bruce A. Morrison,

Chairperson.

[FR Doc. 98–1968 Filed 1–30–98; 8:45 am]

BILLING CODE 6725–01–U

FEDERAL MARITIME COMMISSION

Notice of Agreement(s) Filed

The Commission hereby gives notice

of the filing of the following

agreement(s) under the Shipping Act of

1984.

Interested parties can review or obtain

copies of agreements at the Washington,

DC offices of the Commission, 800

North Capitol Street, N.W., Room 962.

Interested parties may submit comments

on an agreement to the Secretary,

Federal Maritime Commission,

Washington, DC 20573, within 10 days

of the date this notice appears in the

Federal Register.

Agreement No.: 202–010689–070.

Title: Transpacific Westbound Rate

Agreement (‘‘TWRA’’).

Parties:

American President Lines, Ltd.

(‘‘APL’’)

Hapag-Lloyd Container Linie GmbH

Kawasaki Kisen Kaisha, Ltd.

A.P. Moller-Maersk Line

Mitsui O.S.K. Lines, Ltd.

Neptune Orient Container Line, Ltd.

(‘‘NOL’’)

Nippon Yusen Kaisha Ltd.

Orient Overseas Container Line, Inc.

P&O Nedlloyd Limited

P&O Nedlloyd B.V.

Sea-Land Service, Inc.

Synopsis: The proposed modification

revises TWRA’s voting provisions

applicable to APL, to accommodate

APL’s sale to NOL. The parties have

requested short review.

Agreement No.: 202–010689–071.

Title: Transpacific Westbound Rate

Agreement.

Parties:

American President Lines, Ltd.

APL Co. PTE Ltd.

Hapag-Lloyd Container Linie GmbH

Kawasaki Kisen Kaisha, Ltd.

A.P. Moller-Maersk Line

Mitsui O.S.K. Lines, Ltd.

Neptune Orient Container Line, Ltd.

Nippon Yusen Kaisha Ltd.

Orient Overseas Container Line, Inc.

P&O Nedlloyd Limited

P&O Nedlloyd B.V.

Sea-Land Service, Inc.

Synopsis: The proposed modification

reflects the withdrawal of Neptune

Orient Container Line, Inc. as of April

8, 1998. It also adds APL Co. PTE Ltd.

as a party, although American President

Lines, Ltd. and APL Co. PTE Ltd. will

operate and hold out as a single carrier.

Agreement No.: 202–010776–108.

Title: Asia North America Eastbound

Rate Agreement (‘‘ANERA’’).

Parties:

American President Lines, Ltd.

(‘‘APL’’)

Hapag-Lloyd Container Linie GmbH

Kawasaki Kisen Kaisha, Ltd.

A.P. Moller-Maersk Line

Mitsui O.S.K. Lines, Ltd.

Neptune Orient Container Line, Ltd.

(‘‘NOL’’)

Nippon Yusen Kaisha Line

Orient Overseas Container Line, Inc.

P&O Nedlloyd Limited

P&O Nedlloyd B.V.

Sea-Land Service, Inc.

Synopsis: The proposed modification

revises ANERA’s voting and expense

sharing provisions applicable to APL, to

accommodate APL’s sale to NOL.

Agreement No.: 232–011607.

Title: Columbus/Blue Star/ANZDL

Space Charter and Sailing Agreement

Parties:

Columbus Line

Blue Star Line (North America)

Limited

Australia-New Zealand Direct Line

Synopsis: The proposed Agreement

would permit the parties to charter

space to one another, to coordinate their

vessel operations, and to cooperate with

respect to terminal and related shore

side activities in the trade between

United States Pacific Coast ports, and

inland U.S. points via such ports, and

ports and points in Australia, New

Zealand, and various South Pacific

islands. The parties have requested a

shortened review period.

Agreement No.: 217–011608.

Title: Blue Star/BHP IMT Space

Charter Agreement.

Parties:

Blue Star (North America) Limited

BHP International Marine Transport

Synopsis: The proposed Agreement

will permit the parties to charter space

to each other in the trade between the

U.S. Atlantic, Gulf and Pacific Coasts

and ports in Australia and New

Zealand. The parties have requested a

shortened review period.

By order of the Federal Maritime

Commission.

Dated: January 27, 1998.

Joseph C. Polking,

Secretary.

[FR Doc. 98–2412 Filed 1–30–98; 8:45 am]

BILLING CODE 6730–01–M

GENERAL SERVICES

ADMINISTRATION

Proposed Collection; Comment

Request Entitled Placement of Orders

and Ordering Information

AGENCY: Office of Acquisition Policy,

GSA.

ACTION: Notice of request for public

comments regarding an extension to an

existing OMB clearance (3090–0248).

SUMMARY: The GSA hereby gives notice

under the Paperwork Reduction Act of

1995 (44 U.S.C. Chapter 35), that it is