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

48399

Vol. 61, No. 179

Friday, September 13, 1996

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 27

Cotton Classification Under Cotton

Futures Legislation

CFR Correction

In Title 7 of the Code of Federal

Regulations, parts 27 to 45, revised as of

January 1, 1996, §§ 27.62 through 27.67,

27.69, 27.72, 27.73, 27.80, 27.81, 27.83,

27.85, 27.87, and 27.89 through 27.98

were inadvertently omitted. The omitted

sections should immediately preceed

§ 27.99 on page 15, and should read as

follows:

§ 27.62 Conditions for review of

classification and for incidental Micronaire

determination for original applicant.

The person for whom the

classification of cotton has been or is to

be performed under this subpart may

have a review of such classification by

filing a written application therefor

before the delivery of such cotton on a

basis grade contract and not later than

the expiration of the seventh business

day following the date of the first

certification of the cotton involved.

Such written application may be made

at the same time as the request for initial

classification. The written application

may also include a request for

Micronaire determination of the cotton

if this service has not been previously

performed.

[22 FR 10926, Dec. 28, 1957, as amended at

42 FR 40677, Aug. 11, 1977]

§ 27.63 Conditions for review of

classification and for Micronaire

determination for receiver.

Any receiver of cotton upon a basis

grade contract who has not redelivered

such cotton on a basis grade contract

may have a review of the classification

of any cotton of which the classification

has not been previously reviewed by

filing a written application within 7

business days following the date of the

delivery of cotton class certificates in

accordance with this subpart. When

more than 5,000 bales of cotton shall

have been delivered to the same receiver

on the same date of delivery, the

receiver may, upon proper showing of

the facts, be allowed 5 additional

business days for filing the application

for review of the classification of any

such cotton, provided written request

for such extension is filed within 7

business days following the date of such

delivery. In the event of the reissue of

certificates to replace any certificates

delivered, the receiver may have a

review of the classification of the cotton

covered by such reissued certificates,

provided such review is requested

within the time herein prescribed,

calculated from the date of delivery of

such reissued certificates. Any such

receiver may also have a Micronaire

determination, with or without review

of classification, under these same

conditions on cotton on which this

service has not been previously

performed under this subpart.

[48 FR 49212, Oct. 25, 1983]

§ 27.64 Application for review of

classification and for Micronaire

determination; filing.

(a) Every application review of

classification or for Micronaire

determination under § 27.62 or § 27.63

shall be filed with the Marketing

Services Office serving the location at

which the cotton is stored. The

application shall in each case be in the

hands of such Marketing Services Office

within the time specified in § 27.62 or

§ 27.63 for applying for review:

Provided, That any Marketing Services

Office may designate any officer of the

Cotton Division or a representative of an

exchange inspection agency located at

another point to receive applications,

and in such cases the applications shall

be in the hands of the persons so

designated within the time specified.

Any person making such application

shall, upon call of the Marketing

Services Office or person with whom

such application was filed under this

section, surrender the cotton class

certificates covering the cotton

involved.

(b) Such applications shall be made

on a form furnished or approved by the

Cotton Division and shall contain (1) the

name and address of the party, if any,

from whom the cotton was received on

a basis grade contract; (2) the lot

numbers of the cotton; and (3) the

warehouse bale numbers.

[22 FR 10928, Dec. 28, 1957, as amended at

26 FR 1657, Feb. 25, 1961; 42 FR 40677, Aug.

11, 1977; 48 FR 49213, Oct. 25, 1983]

§ 27.65 Completion of review of

classification.

In any case where an application for

review of classification or an

application for Micronaire

determination has been filed with

respect to cotton previously designated

as tenderable, such review or

determination may be completed

notwithstanding the subsequent tender

of such cotton on a basis grade contract.

[22 FR 10926, Dec. 28, 1957, as amended at

42 FR 40677, Aug. 11, 1977]

§ 27.66 Dismissal of application for review.

Any application for review may be

dismissed whenever it shall be found by

the Area Director or the Director that it

was filed without good cause or for

dilatory purposes.

[48 FR 49213, Oct. 25, 1983]

§ 27.67 Use of new samples in reviews and

Micronaire determinations.

Unless the use of new samples shall

be necessary in the judgment of the Area

Director, a review classification

pursuant to §§ 27.61 to 27.72, or a

Micronaire determination pursuant to

§ 27.14, § 27.62 or § 27.63, shall be made

by reference to the samples, if any, of

the cotton involved in the possession of

the Marketing Services Office; but if the

use of new samples is deemed necessary

by the Area Director, or if there are no

samples of the cotton in the possession

of the Marketing Services Office, or if

the samples of the cotton have been in

the possession of the Marketing Services

Office for more than one year, the

person requesting the review

classsification or Micronaire

determination shall cause new samples

to be drawn for the purpose and

submitted to the Marketing Services

Office in accordance with this subpart.

[48 FR 49213, Oct. 25, 1983]

§ 27.69 Classification review; notations on

certificate.

When a review of classification is

made after the issuance of a cotton class

certificate, the results of the review

classification, the date of issuance of the
48400 Federal Register / Vol. 61, No. 179 / Friday, September 13, 1996 / Rules and Regulations

review classification results, and the

signature of the Head, Grading Section

shall be entered on the cotton class

certificate. Thereupon the certificate

shall be returned to the person who

requested the review.

[48 FR 49213, Oct. 25, 1983]

§ 27.72 Withdrawal of application for

review.

Any application for review may be

withdrawn by the applicant at any time

before the review classification of the

cotton covered thereby has been

completed, subject to the payment of

such fees, if any, as may be assessed

pursuant to §§ 27.80 through 27.92.

Transfers of Cotton

§ 27.73 Supervision of transfers of cotton.

Whenever the owner of any cotton

inspected and sampled for classification

pursuant to this subpart and for which

the owner holds valid cotton class

certificates desires to transfer such

cotton to a different delivery point, or to

a different warehouse at the same

delivery point, for the purpose of having

it made available for delivery upon a

basis grade contract, such transfer shall

be effected under the supervision of an

exchange inspection agency or a

supervisor of cotton inspection.

[48 FR 49213, Oct. 25, 1983]

Costs of Classification and Micronaire

§ 27.80 Fees; classification, micronaire,

and supervision.

For services rendered by the Cotton

Division pursuant to this subpart,

whether the cotton involved is

tenderable or not, the person requesting

the services shall pay fees as follows:

(a) Initial classification and

certification—$2.00 per bale.

(b) Review classification and

certification—$2.00 per bale.

(c) Micronaire determination and

certification—30 cents per bale.

(d) Combination service—$3.50 per

bale. (Initial classification, review

classification, and Micronaire

determination covered by the same

request and only the review

classification and Micronaire

determination results certified on cotton

class certificates.)

(e) Supervision, by a supervisor of

cotton inspection, of the inspection,

weighing, or sampling of cotton when

any two or more of these operations are

performed together—$1.60 per bale.

(f) Supervision, by a supervisor of

cotton inspection, of the inspection,

weighing, or sampling of cotton when

any one of these operations is performed

individually—$1.60 per bale.

(g) Supervision, by a supervisor of

cotton inspection, of transfers of cotton

to a different delivery point, including

issuance of new cotton class certificates

in substitution for prior certificates—

$2.75 per bale.

(h) Supervision, by a supervisor of

cotton inspection, of transfers of cotton

to a different warehouse at the same

delivery point, including issuance of

new cotton class certificates in

substitution for prior certificates—$2.00

per bale.

[51 FR 22061, June 18, 1986, as amended at

55 FR 20440, May 17, 1990]

§ 27.81 Fees; certificates.

For each new certificate issued in

substitution for a prior certificate at the

request of the holder thereof, for the

purpose of business convenience, or

when made necessary by the transfer of

cotton under the supervision of any

exchange inspection agency as provided

in § 27.73, the person making the

request shall pay a fee of $.70 cents for

each certificate issued.

[55 FR 20440, May 17, 1990]

§ 27.83 No fees for certain certificates.

No fee shall be collected for a new

cotton class certificate issued in lieu of

a prior certificate solely for the purpose

of correcting clerical errors therein or

for the purpose of substituting a new

form applicable to outstanding

certificates, or without an application

therefor.

§ 27.85 Fees; withdrawn requests or

applications.

When the request for classification, or

the application for review or

classification, of any cotton or the

request for Micronaire determination for

any cotton shall be withdrawn after the

service requested has been started

pursuant to such request or application,

the person making such request or

application shall pay the fee prescribed

by § 27.80 as to any service completed

prior to such withdrawal.

§ 27.87 Fees; classification and Micronaire

determination information.

Whenever the person who requests

the classification of, or Micronaire

determination for, any cotton, or the

person on whose behalf such request is

made, also requests the transmission by

telegraph or telephone of information

concerning such classification or

Micronaire determination, the person

making the request for such

classification or determination shall

pay, in addition to the applicable costs

prescribed in this subpart, the cost of

tolls incurred in such transmission.

§ 27.89 Expenses; inspection; sampling.

Expense of inspection and sampling,

the preparation of the samples and the

delivery of such samples in accordance

with § 27.24, shall be borne by the party

requesting the classification of the

cotton involved. When a review of

classification or a Micronaire

determination is requested and samples

of the cotton involved are not in

possession of a Marketing Services

Office, the expense of inspection,

sampling, preparation of samples, and

delivery of the samples to the Marketing

Services Office shall be borne by the

party requesting the service.

[48 FR 49213, Oct. 25, 1983]

§ 27.90 Bills for payment of fees and

expenses.

The Cotton Division shall deliver bills

to all persons from whom payment for

fees or expenses on account of services

under this subpart shall be due. Such

bills shall be rendered as soon as

practicable after the last day of each

month for the amounts due and unpaid

on such day. When necessary, in the

discretion of the Area Director or the

Director, any bill may be rendered at an

earlier date for any fees and expenses

then due by the person to whom such

bill shall be rendered. Payment of any

such bill shall be made as soon as

possible after the rendition thereof, but

in any event not later than 2 weeks after

such rendition.

[48 FR 49213, Oct. 25, 1983]

§ 27.91 Advance deposit may be required.

If requested by the Area Director with

whom the classification request is

required to be filed or by the Director,

the person from whom any payment

under this subpart may become due

shall make an advance deposit to cover

such payment in such amount as may be

necessary in the judgment of the official

requesting the same.

[48 FR 49213, Oct. 25, 1983]

§ 27.92 Method of payment; advance

deposit.

Any payment or advance deposit

under this subpart shall be by check,

draft, or money order, payable to the

order of ‘‘Agricultural Marketing

Service, USDA,’’ and may not be made

in cash except in cases where the total

payment or deposit does not exceed $1.

Spot Markets

§ 27.93 Bona fide spot markets.

The following markets have been

determined, after investigation, and are

hereby designated to be bona fide spot

markets within the meaning of the act:
Federal Register / Vol. 61, No. 179 / Friday, September 13, 1996 / Rules and Regulations 48401

Southeastern, North Delta, South Delta,

East Texas and Oklahoma, West Texas,

Desert Southwest and San Joaquin Valley.

Such markets will comprise the following

areas:

Southeastern

All counties in the states of Alabama,

Florida, Georgia, North Carolina and South

Carolina and all counties in the state of

Tennessee east of and including Stewart,

Houston, Humphreys, Perry, Wayne and

Hardin counties.

North Delta

All counties in the states of Arkansas and

Missouri and all counties in Tennessee west

of and including the counties of Henry,

Benton, Henderson, Decatur, Chester and

McNairy counties and the Mississippi

counties of Alcorn, Benton, Calhoun,

Chickasaw, DeSoto, Grenada, Itawamba,

Lafayette, Lee, Marshall, Monroe, Panola,

Pontotoc, Prentiss, Tate, Tippah,

Tishomingo, Union and Yalobusha.

South Delta

All counties in the state of Louisiana and

all counties in the state of Mississippi not

included in the North Delta market.

East Texas and Oklahoma

All counties in the state of Oklahoma and

the Texas counties east of and including

Montague, Wise, Parker, Erath, Comanche,

Mills, San Saba, Mason, Sutton, Edwards,

Kinney, Maverick, Webb, Zapata, Star and

Hidalgo counties.

West Texas

All Texas counties not included in the East

Texas, Oklahoma and Desert Southwest

Markets and the New Mexico counties of

Union, Quay, Curry, Roosevelt and Lea.

Desert Southwest

The Texas counties of Val Verde, Crockett,

Terrell, Pecos, Brewster, Presidio, Jeff Davis,

Culberson, Hudspeth and El Paso, all New

Mexico counties except those included in the

West Texas market, all counties in the state

of Arizona and the California counties south

of and including Riverside and Orange

counties.

San Joaquin Valley

All California counties except those

included in the Desert Southwest market.

[53 FR 29326, Aug. 4, 1988]

§ 27.94 Spot markets for contract

settlement purposes.

The following are designated as spot

markets for the purpose of determining

as provided in paragraph 15b(f)(3) of the

act, the differences above or below the

contract price which the receiver shall

pay for grades tendered or deliverable in

settlement of a basis grade contract:

(a) For cotton delivered in settlement

of any No. 2 contract on the New York

Cotton Exchange:

Southeastern, North Delta, South Delta,

Eastern Texas and Oklahoma, and Desert

Southwest.

(b) [Reserved]

[53 FR 29327, Aug. 4, 1988]

Price Quotations and Differences

§ 27.95 Spot markets to conform to Act

and regulations.

Every bona fide spot market shall, as

a condition of its designation and of the

retention thereof, conform to the act and

any applicable regulations.

[53 FR 29327, Aug. 4, 1988]

§ 27.96 Quotations in bona fide spot

markets.

The price or value and differences

between the price or value of grades and

staple lengths of cotton shall be based

solely upon the official cotton standards

of the United States and shall be the

actual commercial value or price and

differences as determined by the sale of

spot cotton in such spot market.

Quotations shall be determined and

maintained in each designated spot

market by the Cotton Division,

Agricultural Marketing Service, USDA,

as follows:

(a) In spot markets designated to

determine differences for the settlement

of futures contracts, the Cotton Division

will on each business day determine

and quote by bale volume the prices or

values of base qualities which are

deliverable on any active futures

contracts, as well as the differences for

all other qualities deliverable on such

contracts. The prices or differences for

non-deliverable qualities will be

determined and quoted by bale volume

in each such spot market for those

qualities normally produced or traded

in that particular market.

(b) In spot markets not designated to

determine differences for the settlement

of futures contracts, the Cotton Division

will on each business day determine

and quote by bale volume the prices or

differences for all qualities of cotton

normally produced or traded in each

such spot market.

[53 FR 29327, Aug. 4, 1988]

§ 27.97 Ascertaining the accuracy of price

quotations.

The buyers and sellers of cotton in

each spot market shall be responsible

for providing accurate and timely price,

quality, and volume of purchases data

by growth area to the Cotton Division.

The Cotton Division is responsible for

ascertaining the accuracy of the price

quotations in each designated spot

market. The Cotton Division will carry

out this responsibility by performing the

following duties and functions:

(a) The Cotton Division will collect

and analyze pertinent information on

the prices and values of spot cotton

from each spot market.

(b) In the process of determining price

quotations, the Cotton Division will

contact a minimum of three buyers and

sellers of cotton in each bona fide

market at least two times per week

during the active trading season and one

time per week during the remainder of

the year to obtain information on prices,

qualities, volume, and terms of sales in

sufficient detail to determine

quotations.

(c) The Cotton Division will

summarize the price and quality data

and, based on analysis of this summary,

make determinations regarding

quotations of price, value and

differences.

(d) Quotations for each spot market

shall be reviewed and approved by the

Cotton Division’s Market News Branch

Chief or Assistant Branch Chief prior to

publication.

(e) The Cotton Division will publish

the appropriate quotations by bale

volume for grades, staple lengths,

micronaire determinations, and other

quality factors for each spot market on

a daily basis.

(The information collection requirements

contained in this section were approved by

the Office of Management and Budget under

OMB control number 0581–0029.)

[53 FR 29327, Aug. 4, 1988]

§ 27.98 Value of grade where no sale;

determination.

As provided in § 27.96, whenever no

sale of a particular grade of cotton shall

have been made on a given day in a

particular spot market, the value of such

grade in the market on that day will be

determined as follows:

(a) If on such given day there shall

have been in such market both a sale of

any higher grade and a sale of any lower

grade, the average of the declines, or

advances, or decline and advance, as the

case may be, of the next higher grade

and the next lower grade so sold shall

be deducted from, or added to, as the

case may be, the value, on the last

preceding business day, of the grade the

value of which on such given day is

sought to be ascertained.

(b) If on such given day there shall

have been in such market a sale of either

a higher or a lower grade, but not sales

of both, the decline or advance of the

next higher or the next lower grade so

sold shall be deducted from, or added

to, as the case may be, the value on the

last preceding business day of the grade

the value of which on such given day

is sought to be ascertained.

(c) If on such given day there shall

have been in such market no sale of spot

cotton of any grade, the value of each
48402 Federal Register / Vol. 61, No. 179 / Friday, September 13, 1996 / Rules and Regulations

grade shall be deemed to be the same as

its value therein on the last preceding

business day, unless in the meantime

there shall have been bona fide bids and

offers, or sales of hedged cotton, or other

sales of cotton, or changes in prices of

futures contracts made subject to the

act, which in the usual course of

business would clearly establish a rise

or fall in the value of spot cotton in such

market, in which case such rise or fall

may be calculated and added to or

deducted from the value on the

preceding business day of cotton of all

grades affected thereby.

[53 FR 29327, Aug. 4, 1988]

BILLING CODE 1505–01–D

FEDERAL DEPOSIT INSURANCE

CORPORATION

12 CFR Parts 308 and 342

RIN 3064–AB81

Rules of Practice and Procedure;

Applications for a Stay or Review of

Actions of Bank Clearing Agencies

AGENCY: Federal Deposit Insurance

Corporation (FDIC).

ACTION: Final rule.

SUMMARY: The Federal Deposit

Insurance Corporation (FDIC) has

conducted a review of its regulations

pursuant to Section 303 of the Riegle

Community Development and

Regulatory Improvement Act of 1994.

As a result, the FDIC is deleting its rules

and regulations which pertain to

Applications for a Stay or Review of

Actions of Bank Clearing Agencies, and

replacing them with new, more concise

provisions. At the same time, the FDIC

is moving those shorter provisions to a

new subpart, which contains the FDIC’s

Rules of Practice and Procedure. The

changes are intended to streamline the

FDIC’s regulations and to remove

duplicative provisions, while

maintaining uniformity in approach

among the other banking agencies and

the Securities and Exchange

Commission (SEC).

EFFECTIVE DATE: October 15, 1996.

FOR FURTHER INFORMATION CONTACT: John

F. Harvey, Trust Review Examiner, (202)

898–6762, or Andrea Winkler, Counsel,

(202) 736–0762, Federal Deposit

Insurance Corporation, 550 17th Street,

N.W., Washington, D.C. 20429.

SUPPLEMENTARY INFORMATION:

I. Background

The Securities Exchange Act of 1934

(Exchange Act) (15 U.S.C. 78 et seq.)

requires the registration of clearing

agencies and implements a system of

self-regulation by registered clearing

agencies. Registered clearing agencies

have the authority to impose certain

disciplinary sanctions upon

participants, to deny participation in the

clearing agency, or to prohibit or limit

a participant’s access to services

provided by clearing agencies. (15

U.S.C. 78q–1 (b)(3)(g), (b)(5)(C)). Persons

aggrieved by such adverse actions by

clearing agencies may request a stay of

such action or may appeal the action to

the appropriate regulatory agency. The

FDIC is the appropriate regulatory

agency with regard to FDIC-insured

banks (other than members of the

Federal Reserve System), when the

appropriate regulatory agency for the

clearing agency is not the SEC. The

Office of the Comptroller of the

Currency (OCC) and the Board of

Governors of the Federal Reserve

System (FRB) have similar regulatory

responsibilities with regard to banks

under their jurisdiction.

The FDIC’s current regulations are

contained in Part 342 of its Rules and

Regulations. (12 CFR Part 342) Those

regulations are identical in substance to

the regulations of the SEC. (17 CFR

240.19d–2 to 240.19d–3) Therefore, the

FDIC is shortening its regulatory

provisions by deleting those provisions

contained in Part 342 which are the

same as those contained in the

regulations of the SEC. Instead, the FDIC

is including a cross-reference to the SEC

regulations in new Subpart S to Part 308

of its Rules and Regulations.

II. Section-by-Section Summary

Part 308—Rules of Practice and

Procedure

Subpart S—Applications for a Stay or

Review of Actions of Bank Clearing

Agencies

Section 308.400 Scope

This section is identical to current

section 342.1 of the FDIC’s regulations

and sets forth the authority for the

regulations and the entities to which the

regulations apply.

Section 308.401 Applications for Stays

of Disciplinary Sanctions or Summary

Suspensions by a Bank Clearing Agency

This section has been shortened to

reflect that applications for a stay of a

disciplinary action pursuant to section

17(b)(3)(G) of the Exchange Act, or

summary suspension or limitation or

prohibition of access to services under

section 17(b)(5)(C) of the Exchange Act,

may be filed with the Corporation

according to the procedures set forth in

the regulations of the SEC (17 CFR

240.19d–2), which are identical in

substance to those currently contained

in § 342.2 of the FDIC’s regulations.

References to the Commission in the

regulations of the SEC will be deemed

to be references to the Corporation for

purposes of this section.

Section 308.402 Applications for

Review of Final Disciplinary Sanctions,

Denials of Participation, or Prohibitions

or Limitations of Access to Services

Imposed by Bank Clearing Agencies

This section has been shortened to

reflect that an application to the

Corporation under section 19(d)(2) of

the Exchange Act for review of any final

disciplinary sanctions, denials of

participation, or prohibitions or

limitations of access to services imposed

by bank clearing agencies shall be

conducted according to the procedures

set forth in the regulations of the SEC

(17 CFR 240.19d–3), which are identical

in substance to those currently

contained in § 342.3 of the FDIC’s

regulations. References to the

Commission in the regulations of the

SEC will be deemed references to the

Corporation for purposes of this section.

III. Regulatory Flexibility Act

Chapter 6 of Title 5 of the United

States Code which pertains to ‘‘The

Analysis of Regulatory Functions’’ does

not apply to the final rule regarding Part

342. The revision to Part 342 is not a

‘‘rule’’ for purposes of that statute (see

5 U.S.C. 601(2)) as it is not a rule for

which the FDIC is required to publish

a general notice of proposed rulemaking

under section 553(b) of Title 5 of the

United States Code. This is because the

final rule contains only technical

changes and makes no substantive or

procedural changes to existing rules,

and therefore, the FDIC has determined

for good cause that public notice and

comment is unnecessary, and that the

rule should be published in final form.

IV. Small Business Regulatory

Enforcement Fairness Act

The Small Business Regulatory

Enforcement Fairness Act of 1996 (Pub.

L. 104–121, 104th Cong., 2d Sess.

(1996)) provides generally for agencies

to report rules to Congress and for

Congress to review the rules. The

reporting requirement is triggered in

instances where the FDIC issues a final

rule as defined by the Administrative

Procedure Act at 5 U.S.C. 551. The FDIC

will file the appropriate reports

pursuant to the statute.

The Office of Management and Budget

has determined that this final revision