20008 Federal Register / Vol. 60, No. 78 / Monday, April 24, 1995 / Rules and Regulations

$.01 par common

$2.625 convertible exchangeable

preferred

Krug International Corp.

Warrants (expire 01–27–98)

LSB Financial Corporation

$.01 par common

Medpartners, Inc.

$.001 par common

Monterey Bay Bancorp, Inc.

$.01 par common

Mountbatten, Inc.

$.001 par common

Mustang Software, Inc.

No par common

Nastech Pharmaceutical Company Inc.

$.006 par common

National Instruments Corporation

$.01 par common

Neopath, Inc.

$.01 par common

NTN Canada, Inc.

$.07 par common

Oak Technology, Inc.

$.001 par common

Open Environment Corporation

No par common

Ostex International Inc.

$.01 par common

P–COM, Inc.

$.0001 par common

Pacific Basin Bulk Shipping Ltd.

$.7327 par common

Warrants (expire 09–30–99)

Palmer Wireless, Inc.

Class A, $.01 par common

Periphonics Corporation

$.01 par common

Premisys Communications, Inc.

$.01 par common

QCF Bancorp, Inc. (Minnesota)

$.01 par common

Remedy Corporation

$.00005 par common

Renaissance Solutions, Inc.

$.001 par common

Renters Choice Inc.

$.01 par common

Riviana Foods Inc.

$1.00 par common

SDL, Inc.

$.001 par common

Select Media Communications, Inc.

$.001 par common

Semitool, Inc.

No par common

Semtech Corporation

$.01 par common

Sirrom Capital Corporation

No par common

Software Artistry, Inc.

No par common

South Carolina Community Bancshares,

Inc.

$.01 par common

Springfield Institution for Savings

$1.00 par common

STB Systems, Inc.

$.01 par common

Strattec Security Corporation

$.01 par common

Sure Shot International, Inc.

$.01 par common

TGV Software, Inc.

$.001 par common

Third Financial Corporation

$.01 par common

Thrustmaster, Inc.

No par common

Tivoli Systems Inc.

$.01 par common

Transaction Systems Architects Inc.

Class A, $.005 par common

Tylan General Inc.

$.001 par common

Uniholding Corporation

$.01 par common

Uniroyal Chemical Corporation

$.01 par common

US Office Products Company

$.001 par common

Vari-L Company, Inc.

$.01 par common

Viasoft, Inc.

$.001 par common

Video Sentry Corporation

$.01 par common

Videotron Holdings, PLC

American Depositary Receipts

Webster City Federal Savings Bank

(Iowa)

$.10 par common

Wells Financial Corporation

$.10 par common

Deletion From the List of Foreign

Margin Stocks

Hitachi Sales Corporation

¥ 50 par common

Additions to the List of Foreign Margin

Stocks

Allianz Holdings AG

Registered, par DM 50

Basf AG Holding

Ordinary, par DM 50

Bayer AG

Ordinary, par DM 50

Bayerische Motoren Werke AG

Ordinary, par DM 50

Beiersdorf AG

Ordinary, par DM 50

Commerzbank AG

Bearer, par DM 50

Deutsche Bank AG

Ordinary, par DM 50

Gehe AG

Ordinary, par DM 50

Henkel KGAA-VORZUG

Preference, par DM 50

Hoechst AG

Ordinary, par DM 50

Mannesmann AG

Ordinary, par DM 50

Muenchener Rueckversicherungs

Registered, par DM 100

S.A.P. AG

Preference, par DM 50

Schering AG

Ordinary, par DM 50

Volkswagen AG

Ordinary, par DM 50

By order of the Board of Governors of

the Federal Reserve System, acting by

its Director of the Division of Banking

Supervision and Regulation pursuant to

delegated authority (12 CFR

265.7(f)(10)), April 18, 1995.

William W. Wiles,

Secretary of the Board.

[FR Doc. 95–10018 Filed 4–21–95; 8:45 am]

BILLING CODE 6210–01–P

FARM CREDIT ADMINISTRATION

12 CFR Parts 614, 615, 618

RIN 3052–AB53

Loan Policies and Operations; Funding

and Fiscal Affairs, Loan Policies and

Operations, and Funding Operations;

General Provisions

AGENCY: Farm Credit Administration.

ACTION: Final rule.

SUMMARY: The Farm Credit

Administration (FCA), by order of the

FCA Board (Board), adopts a final rule

that repeals several regulations

concerning loan policies and operations,

funding, and miscellaneous items as

well as two Agency prior-approval

requirements. These repeals are part of

an ongoing effort by the FCA to reduce

unnecessary regulatory burdens on

Farm Credit System (FCS or System)

institutions.

EFFECTIVE DATE: This rule shall become

effective upon the expiration of 30 days

after publication in the Federal

Register, during which either or both

Houses of Congress are in session.

Notice of the effective date will be

published in the Federal Register.

FOR FURTHER INFORMATION CONTACT:

W. Eric Howard, Policy Analyst,

Regulation Development, Office of

Examination, Farm Credit

Administration, McLean, VA 22102–

5090, (703) 883–4498, TDD (703) 883–

4444,

or

Richard A. Katz, Senior Attorney,

Regulatory Operations Division,

Office of General Counsel, Farm

Credit Administration, McLean, VA

22102–5090, (703) 883–4020, TDD

(703) 883–4444.

SUPPLEMENTARY INFORMATION:

I. Background

On June 10, 1993, the FCA Board

approved a Statement on Regulatory
Federal Register / Vol. 60, No. 78 / Monday, April 24, 1995 / Rules and Regulations 20009

1 Pub. L. 100–399, section 409(d), 102 Stat. 989,

1003, (August 17, 1988).

Burden seeking public comment on the

appropriateness of requirements that the

FCA regulations impose on the FCS.

More specifically, the FCA asked the

public to identify regulations that either

duplicate other governmental

requirements, are not effective, or

impose a burden that is greater than the

benefit derived. The notice of intent was

published in the Federal Register (58

FR 34003) on June 23, 1993. After

reviewing all responses to the notice of

intent, the FCA proposed on January 10,

1995, to delete the following regulatory

provisions: §§ 615.5104; 615.5105(c);

615.5170 (b) through (e); 615.5190;

615.5498; 615.5500; 615.5520; 615.5530;

and 618.8220. Additionally, the FCA

proposed the repeal of the Agency priorapproval requirements in § 614.4470

(b)(1) and (b)(3). See 60 FR 2552

(January 10, 1995).

The Farm Credit Council (Council),

on behalf of its members, and a

production credit association (PCA)

submitted comments concerning the

proposed deletions. The Council

strongly supported the repeal of the

above-cited regulations and Agency

prior-approval requirements, and

encouraged the FCA to adopt the entire

proposal as a final rule. Although the

PCA lauded the FCA’s effort to reduce

regulatory burdens on System

institutions, it offered no comments

about the FCA’s proposal to repeal the

above-cited regulations and priorapproval requirements. Instead, the PCA

petitioned the FCA to address three

regulatory burden issues that were not

included in the proposed rule.

In response, the FCA emphasizes that

its proposal of January 10, 1995,

represents the first phase in an ongoing

process to reduce regulatory burdens on

FCS institutions. As the FCA explained

in the preamble to the proposed rule,

the FCA is in the process of evaluating

all recommendations for reducing

regulatory burdens that System

commenters submitted to the Agency in

response to the notice of intent. The

FCA will address all remaining

regulatory burden issues, including

those raised by the PCA, either in (1)

Regulatory projects that the FCA Board

identifies in the Unified Agenda of

Federal Regulations, which is routinely

published in the Federal Register, or (2)

subsequent phases of this project.

The FCA now adopts its January 10,

1995 proposal as a final rule without

amendment. The regulations that the

FCA now repeals are not necessary to

implement or interpret the Farm Credit

Act of 1971, as amended (Act), or to

promote the safe and sound operations

of FCS institutions. For this reason, the

repeal of these regulations and Agency

prior-approval requirements will relieve

unnecessary regulatory burdens on the

FCS. The following is a brief

explanation of the rationale for

repealing each of these regulatory

requirements.

II. Analysis of Changes and Comments

by Section

A. Loans Subject to Bank Approval

The FCA now eliminates from both

§§ 614.4470 (b)(1) and (b)(3) the

requirement that the Agency preapprove

certain insider loan transactions at

System associations. Section

614.4470(a) requires funding banks to

preapprove loans that their affiliated

associations make to: (1) Their own

directors or employees; (2) directors or

employees of a jointly managed

association; or (3) bank employees.

Until now, § 614.4470(b) required FCA

approval of loans to any borrower

whenever certain institution-affiliated

parties: (1) Received proceeds of a loan

in excess of an amount established by

the funding bank; or (2) endorsed,

guaranteed, or co-made a loan in excess

of the amount established by the

funding bank.

These Agency prior-approval

requirements in § 614.4470 (b)(1) and

(b)(3) are inconsistent with the FCA’s

status as an arm’s-length regulator.

Furthermore, these insider activities can

be adequately evaluated and controlled

through means other than prior

approval by the FCA. Sections 612.2140

and 612.2150 establish adequate

safeguards to prevent directors, officers,

and employees of System institutions

from using their positions for personal

gain. In addition, § 620.5 requires

System institutions to disclose insider

loan transactions in their annual reports

to shareholders. The FCA has sufficient

examination and enforcement powers to

ensure that loans to institution-affiliated

parties do not undermine the solvency

of any FCS bank or association. Once

the repeal of the Agency prior-approval

requirements in § 614.4470(b) becomes

effective, the FCA shall rely upon its

examination authority to determine

whether: (1) Bank policy adequately

deters insider abuses at System

institutions; and (2) associations are

complying with bank policy. The FCA

is currently reviewing whether other

prior-approval requirements that are not

mandated by the Act should be retained.

B. Debt Policy and Consolidated

Systemwide Notes

The FCA now repeals §§ 615.5104 and

615.5105(c) because they have been

superseded by a new regulation,

§ 615.5135. Section 615.5104 requires

each bank to adopt a policy for the

management of its debt, while

§ 615.5105(c) requires the debt

management policy of each bank to

identify the maximum amount of

discount notes that can be outstanding

at any one time. Each FCS bank is now

required by § 615.5135 to adopt an

asset/liability management policy.

Furthermore, § 615.5135 requires the

policies of System banks to address the

management of both assets and

liabilities in a more comprehensive

manner than §§ 615.5104 and

615.5105(c). Because § 615.5135 has

rendered §§ 615.5104 and 615.5105(c)

obsolete, the Agency is deleting these

two regulations. In the FCA’s opinion,

the new investment regulations in

subpart E of part 615 enhance the ability

of Farm Credit banks to control liquidity

and solvency risks in their portfolios.

C. Real and Personal Property

The FCA now repeals §§ 615.5170 (b)

through (e). These regulations are not

needed to: (1) Implement or interpret

provisions in the Act that govern the

acquisition of real or personal property

by FCS banks and associations; or (2)

promote safety and soundness. In FCA’s

opinion, these provisions impose

burdens on System institutions that are

no longer justified by the benefits

derived. These regulatory provisions

prescribe detailed operational

standards, rather than performance

criteria, for ensuring the safe and sound

operation of System banks and

associations. The FCA also believes that

§ 615.5170 (d) and (e) are no longer

necessary because the safety and

soundness concerns posed by

information system processing

technology are now adequately

addressed in FCA Information Systems

Bulletins. Additionally, Information

Systems Bulletin 92–1 addresses

information system risks in mergers and

acquisitions. The FCA also observes that

paragraphs (b), (c), and (d) of § 615.5170

contain obsolete references to the

‘‘district boards’’ that were abolished by

section 409(d) of the Agricultural Credit

Technical Corrections Act of 1988.1

The FCA will, however, retain

§ 615.5170(a) because this provision

implements sections 1.5(5) and 3.1(5) of

the Act. These sections authorize each

bank, subject to regulation by the FCA,

to acquire, hold, dispose, and otherwise

exercise all the usual incidents of

ownership of real and personal property

necessary or convenient to its business.

Sections 2.2(5) and 2.12(5) of the Act

provide associations with similar
20010 Federal Register / Vol. 60, No. 78 / Monday, April 24, 1995 / Rules and Regulations

authorities subject to the supervision by

their funding bank and regulation by the

FCA. Section 615.5170(a) implements

these sections of the Act by specifically

stating that the ownership of real estate

for office quarters of any bank or

association ‘‘shall be limited to facilities

reasonable and necessary to meet the

foreseeable requirements of the

institution.’’ Furthermore, § 615.5170(a)

expressly prohibits any FCS institution

from acquiring real property ‘‘if it

involves, or appears to involve, a bank

or association in the real estate or other

unrelated business.’’ This restriction

also serves a safety and soundness

purpose because such extraneous

business activities may increase the

exposure of System institutions to loss.

D. Deposits of Funds

The FCA is repealing § 615.5190

because sections 1.5(14), 2.2(10),

2.12(18) and 3.1(12) of the Act provide

the requisite authority for FCS

institutions to deposit current funds in

commercial banks that are either

members of the Federal Reserve System

or are insured by the Federal Deposit

Insurance Corporation (FDIC).

The FCA is also repealing

§ 615.5190(b) because there is no

statutory basis for requiring CoBank to

make foreign deposits for the other

banks for cooperatives (BCs). The FCA

originally adopted this provision in

1981 because, at that time, only the

former Central Bank for Cooperatives

(CBC) had expertise to reduce the safety

and soundness risks that derive from

currency exchange transactions. See 46

FR 51881 (October 22, 1981). After the

CBC and most district BCs merged to

form CoBank, the FCA amended

§ 615.5190(b) to require CoBank to

assume the CBC’s function. See 56 FR

2671 (January 24, 1991). The rationale

for § 615.5190(b) no longer exists

because: (1) Individual BCs have

acquired greater international lending

experience since 1981; and (2) most BCs

have consolidated into CoBank. In this

context, § 615.5190(b) unnecessarily

restricts BCs, other than CoBank, from

becoming active in the international

arena. The FCA has determined that the

safety and soundness risks inherent in

currency exchange transactions should

not be controlled by a regulation that

unduly restricts the business flexibility

of BCs and ACBs to offer a full range of

high-quality, low-cost international

financial and credit services to their

customers independently of CoBank.

Rather, the FCA will rely upon its

examination and enforcement powers to

ensure that all BCs and ACBs conduct

their currency exchange transactions in

a safe and sound manner. Another FCA

regulation, § 614.4900 establishes safety

and soundness standards for currency

exchange transactions by BCs and ACBs.

Another provision in § 615.5190(b)

prohibits FCS banks from holding

certificates of deposit that are

denominated in foreign currencies as

investments under § 615.5140. This

provision predates the recent revision of

§ 615.5140, which now requires System

banks to acquire investments that are

denominated only in United States

dollars. Hence, § 615.5190(b) is

unnecessary.

E. Farm Credit Securities as Illustrations

The FCA also repeals § 615.5498,

which regulates the illustration of Farm

Credit securities that are used for

educational or illustrative purposes. The

purpose of this regulation is to deter

counterfeiting of definitive FCS

securities. Since virtually all FCS

securities are now issued in book-entry

form, § 615.5498 is obsolete. The

Federal Farm Credit Banks Funding

Corporation and individual System

banks can implement adequate

safeguards to minimize the risk of

counterfeiting of the few securities that

are still issued in definitive form.

F. Open Registered Mail and Express

Policy

The FCA now repeals subpart P of

part 615, which consists of §§ 615.5500,

615.5520, and 615.5530. These three

regulations govern the shipment of

negotiable securities through the United

States Postal Service. The regulations of

subpart P of part 615 were designed to

eliminate the System’s exposure to loss

at a time when FCS negotiable securities

were routinely shipped by mail between

the Bureau of Printing and Engraving

and the Federal Reserve Bank of New

York. The practice of shipping

negotiable securities through the mail

was discontinued several years ago. The

advent of electronic and computer

technology for transferring negotiable

securities through the book-entry system

has rendered subpart P of part 615

obsolete.

G. Contributions and Membership in

Other Organizations

The FCA is repealing § 618.8220,

which requires the boards of directors of

FCS banks and associations to approve:

(1) Charitable contributions; and (2) the

payment of membership dues in any

voluntary association, club, or society.

The regulation further requires boards of

directors, during the approval process,

to consider the business benefits and tax

consequences of such contributions and

memberships for the bank or

association.

In the FCA’s opinion, § 618.8220

unnecessarily interferes in the internal

operations of System institutions and

imposes a regulatory burden that is not

commensurate with the safety and

soundness risks posed by System

charitable and social activities. The

FCA’s examination and enforcement

powers can adequately deter System

institutions from conducting these

activities in an unsafe and unsound

manner.

List of Subjects

12 CFR Part 614

Agriculture, Banks, banking, Foreign

trade, Reporting and recordkeeping

requirements, Rural areas.

12 CFR Part 615

Accounting, Agriculture, Banks,

banking, Government securities,

Investments, Rural areas.

12 CFR Part 618

Agriculture, Archives and records,

Banks, banking, Insurance, Reporting

and recordkeeping requirements, Rural

areas, Technical assistance.

For the reasons stated in the

preamble, parts 614, 615, and 618 of

chapter VI, title 12 of the Code of

Federal Regulations are hereby amended

to read as follows:

PART 614—LOAN POLICIES AND

OPERATIONS

1. The authority citation for part 614

continues to read as follows:

Authority: Secs. 1.3, 1.5, 1.6, 1.7, 1.9, 1.10,

2.0, 2.2, 2.3, 2.4, 2.10, 2.12, 2.13, 2.15, 3.0,

3.1, 3.3, 3.7, 3.8, 3.10, 3.20, 3.28, 4.12, 4.12A,

4.13, 4.13B, 4.14, 4.14A, 4.14C, 4.14D, 4.14E,

4.18, 4.19, 4.36, 4.37, 5.9, 5.10, 5.17, 7.0, 7.2,

7.6, 7.7, 7.8, 7.12, 7.13, 8.0, 8.5, of the Farm

Credit Act (12 U.S.C. 2011, 2013, 2014, 2015,

2017, 2018, 2071, 2073, 2074, 2075, 2091,

2093, 2094, 2096, 2121, 2122, 2124, 2128,

2129, 2131, 2141, 2149, 2183, 2184, 2199,

2201, 2202, 2202a, 2202c, 2202d, 2202e,

2206, 2207, 2219a, 2219b, 2243, 2244, 2252,

2279a, 2279a–2, 2279b, 2279b–1, 2279b–2,

2279f, 2279f–1, 2279aa, 2279aa–5); sec. 413

of Pub. L. 100–233, 101 Stat. 1568, 1639.

Subpart M—Loan Approval

Requirements

§ 614.4470 [Amended]

2. Section 614.4470 is amended by

removing the words ‘‘and approved by

the Farm Credit Administration’’ from

paragraphs (b)(1) and (b)(3).
Federal Register / Vol. 60, No. 78 / Monday, April 24, 1995 / Rules and Regulations 20011

PART 615—FUNDING AND FISCAL

AFFAIRS, LOAN POLICIES AND

OPERATIONS, AND FUNDING

OPERATIONS

3. The authority citation for part 615

continues to read as follows:

Authority: Secs. 1.5, 1.7, 1.10, 1.11, 1.12,

2.2, 2.3, 2.4, 2.5, 2.12, 3.1, 3.7, 3.11, 3.25, 4.3,

4.9, 4.14B, 4.25, 5.9, 5.17, 6.20, 6.26, 8.0, 8.4,

8.6, 8.7, 8.8, 8.10, 8.12 of the Farm Credit Act

(12 U.S.C. 2013, 2015, 2018, 2019, 2020,

2073, 2074, 2075, 2076, 2093, 2122, 2128,

2132, 2146, 2154, 2160, 2202b, 2211, 2243,

2252, 2278b, 2278b–6, 2279aa, 2279aa–4,

2279aa–6, 2279aa–7, 2279aa–8, 2279aa–10,

2279aa–12); sec. 301(a) of Pub. L. 100–233,

101 Stat. 1568, 1608.

Subpart C—Issuance of Bonds, Notes,

Debentures and Similar Obligations

§ 615.5104 [Removed]

4. Section 615.5104 is removed.

§ 615.5105 [Amended]

5. Section 615.5105 is amended by

removing paragraph (c).

Subpart F—Property and Other

Investments

§ 615.5170 [Amended]

6. Section 615.5170 is amended by

removing paragraphs (b), (c), (d), (e) and

the designation for paragraph (a).

Subpart G—[Removed and reserved]

7. Subpart G, consisting of § 615.5190,

is removed and reserved.

Subpart O—Issuance of Farm Credit

Securities

§ 615.5498 [Removed and reserved]

8. Section 615.5498 is removed and

reserved.

Subpart P—[Removed and reserved]

9. Subpart P, consisting of

§§ 615.5500, 615.5520, and 615.5530 is

removed and reserved.

PART 618—GENERAL PROVISIONS

10. The authority citation for part 618

continues to read as follows:

Authority: Secs. 1.5, 1.11, 1.12, 2.2, 2.4,

2.5, 2.12, 3.1, 3.7, 4.12, 4.13A, 4.25, 4.29, 5.9,

5.10, 5.17 of the Farm Credit Act (12 U.S.C.

2013, 2019, 2020, 2073, 2075, 2076, 2093,

2122, 2128, 2183, 2200, 2211, 2218, 2243,

2244, 2252).

Subpart F—Miscellaneous Provisions

§ 618.8220 [Removed and reserved]

11. Section 618.8220 is removed and

reserved.

Dated: March 13, 1995.

Floyd Fithian,

Secretary, Farm Credit Administration Board.

[FR Doc. 95–10007 Filed 4–21–95; 8:45 am]

BILLING CODE 6705–01–P

12 CFR Part 620

RIN 3052–AB37

Disclosure to Shareholders

AGENCY: Farm Credit Administration.

ACTION: Final rule.

SUMMARY: The Farm Credit

Administration (FCA), by the Farm

Credit Administration Board, issues a

final regulation amending its disclosure

requirements for association annual

meeting information statements

including required disclosures for

director candidates nominated from the

floor. The amendments provide

associations more flexibility in

accepting floor nominations for director

positions, clarify disclosure

requirements when annual meetings are

held in more than one session and

shareholders vote by mail, and make

other technical changes.

EFFECTIVE DATE: The regulations shall

become effective upon expiration of 30

days after publication in the Federal

Register during which either or both

Houses of Congress are in session.

Notice of the effective date will be

published in the Federal Register.

FOR FURTHER INFORMATION CONTACT:

Laurie A. Rea, Policy Analyst, Office of

Examination, Farm Credit

Administration, McLean, VA 22102–

5090, (703) 883–4498, or

James M. Morris, Senior Attorney,

Office of General Counsel, Farm

Credit Administration, McLean, VA

22102–5090, (703) 883–4020, TDD

(703) 883–4444.

SUPPLEMENTARY INFORMATION:

Background

On September 13, 1993, the FCA

issued a proposed regulation (58 FR

47836) that would amend certain

aspects of § 620.21(d) pertaining to

required disclosures in the association

annual meeting information statement

(Statement) concerning the nominating

and balloting process for association

directors. The FCA proposed changes to

§ 620.21(d) after learning that the

regulation may have inadvertently

placed an undue burden on certain

members. Section 620.21(d)(3) required

the Statement to ‘‘contain a notice that

nominations from the floor must be

made at the first sectional meeting’’

when the association’s annual meeting

was held in consecutive sectional

sessions. Consequently, certain

members that would have otherwise

attended a different session were

required to travel to the first sectional

session if they wished to participate in

the floor nominating process. Sections

620.21(d)(5) and (d)(6) also required that

persons nominated from the floor

provide the necessary written

disclosures ‘‘in writing at the meeting(s)

at which the nomination is considered.’’

The FCA proposed regulatory

amendments to make it less burdensome

for members to participate in the floor

nominating process. If the association’s

members are voting by mail ballot at the

conclusion of all sessions of the annual

meeting, the proposed rule allowed

floor nominations at any sectional

session. The proposed rule also relaxed

the disclosure requirement for floor

nominees by allowing them to provide

the mandated disclosures ‘‘within 10

days of nominations’’ instead of ‘‘at the

meeting(s) at which the nomination is

considered.’’ The FCA believed that

these regulatory changes would afford

members more opportunity to nominate

candidates from the floor when voting

by mail ballot after the annual meeting

is concluded and make it easier for floor

nominees to provide the required

disclosures without any significant

inconvenience to management or other

nominees.

The FCA received four comment

letters on the proposed rule during the

comment period that expired on

October 13, 1993. One letter was

submitted by a Farm Credit bank, two

letters by associations, and one by the

Farm Credit Council (Council) on behalf

of its membership. Commenters were

generally supportive of the proposed

changes. The Council commented that

its membership applauded the FCA’s

responsiveness to Farm Credit System

institutions’ concerns.

The final regulation allows persons to

be nominated from the floor at any

sectional session when the director

election is conducted by mail balloting

following the final session of the annual

meeting. However, in response to a

comment from the Council, the FCA has

changed the regulation so that

associations can specify in their bylaws

that nominations from the floor will be

accepted only at the first session. The

final rule requires persons nominated

from the floor to provide associations

with the written disclosure information

for mailing with the ballot. The final

rule also allows associations using mail

balloting after the last session the

latitude to prescribe in their bylaws the

time period for floor nominees to submit

the required disclosures.