[Federal Register Volume 60, Number 100 (Wednesday, May 24, 1995)]
[Rules and Regulations]
[Page 27401]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12648]



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Rules and Regulations
                                                Federal Register
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Federal Register / Vol. 60, No. 100 / Wednesday, May 24, 1995 / Rules 
and Regulations

[[Page 27401]]

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 35

[Docket No. 95-08]
RIN 1557-AB44


Agricultural Loan Loss Amortization

AGENCY: Office of the Comptroller of the Currency, Treasury.

ACTION: Final rule.

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SUMMARY: The Office of the Comptroller of the Currency (OCC) is 
removing its rule governing agricultural loan loss amortization, 
effective January 1, 1999. This action is another component of the 
OCC's Regulation Review Program, which is intended to update and 
streamline OCC regulations and to reduce unnecessary regulatory costs 
and other burdens. This action is needed to eliminate the rule when it 
becomes obsolete.

EFFECTIVE DATE: January 1, 1999.

FOR FURTHER INFORMATION CONTACT: Andrew T. Gutierrez, Attorney, 
Legislative and Regulatory Activities Division, Office of the 
Comptroller of the Currency, 250 E Street, SW., Washington, DC 20219, 
(202) 874-5090.

SUPPLEMENTARY INFORMATION:

Background

    The OCC is removing 12 CFR part 35, effective January 1, 1999, as a 
component of its Regulation Review Program. The goal of the Regulation 
Review Program is to review all of the OCC's rules to revise, 
streamline, and simplify them, and to eliminate provisions that do not 
contribute significantly to maintaining the safety and soundness of 
national banks or to accomplishing the OCC's other statutory 
responsibilities.
    Title VIII of the Competitive Equality Banking Act of 1987, Pub. L. 
100-86, 101 Stat. 635 (1987), added 12 U.S.C. 1823(j) in an attempt to 
alleviate some of the financial pressures then facing agricultural 
banks. In particular, 12 U.S.C. 1823(j) permits an agricultural bank to 
amortize over a period not to exceed seven years: (1) any loss on a 
qualified agricultural loan that the bank would otherwise be required 
to show on its annual financial statement for any year between December 
31, 1983, and January 1, 1992; and (2) any loss resulting from the 
reappraisal of property that the bank owned or acquired between January 
1, 1983, and January 1, 1992, in connection with a qualified 
agricultural loan. The OCC implemented this statutory provision by 
promulgating 12 CFR part 35 with a temporary rule published on November 
2, 1987 (52 FR 41959), and a final rule published on July 28, 1988 (53 
FR 28373).
    Because the statute requires that a loss occur on or before 
December 31, 1991, to qualify, and that the amortization period may not 
exceed seven years, the program becomes obsolete on January 1, 1999. 
Reflecting this fact, 12 CFR 35.3(b) requires that loans under the 
program must be fully amortized by December 31, 1998.
    On February 8, 1995, the OCC proposed to remove 12 CFR part 35, 
effective January 1, 1999, in order to obviate the need for regulatory 
action in the future (60 FR 7467). The OCC received two comment letters 
on the proposed rule, both of which supported the proposed action. 
Consequently, the OCC is issuing this final rule to remove 12 CFR part 
35, effective January 1, 1999. Prior to that date, an annotation to 12 
CFR part 35 will indicate the effective date for removal of the part.

Regulatory Flexibility Act

    It is hereby certified that this final rule will not have a 
significant economic impact on a substantial number of small entities. 
Accordingly, a regulatory flexibility analysis is not required. This 
final rule has no material impact on national banks, regardless of 
size.

Executive Order 12866

    The OCC has determined that this final rule is not a significant 
regulatory action under Executive Order 12866.

Paperwork Reduction Act

    The collection of information contained in 12 CFR 35.7 has been 
approved by the Office of Management and Budget (OMB) under OMB Control 
Number 1557-0186. This final rule will remove as unnecessary, for the 
reasons set forth in the preamble, that collection of information 
effective January 1, 1999.

Unfunded Mandates Act of 1995

    The OCC has determined that this final rule will not result in 
expenditures by state, local, and tribal governments, or by the private 
sector, of more than $100 million in any one year. Accordingly, a 
budgetary impact statement is not required under section 202 of the 
Unfunded Mandates Act of 1995.

List of Subjects in 12 CFR Part 35

    Accounting, Agriculture, National banks, Reporting and 
recordkeeping requirements.

Authority and Issuance

    For the reasons set out in the preamble, and under the authority of 
12 U.S.C. 93a and 1823(j), chapter I of title 12 of the Code of Federal 
Regulations is amended as follows:

PART 35--[REMOVED]

    1. Part 35 is removed effective January 1, 1999.

    Dated: May 18, 1995.
Eugene A. Ludwig,
Comptroller of the Currency.
[FR Doc. 95-12648 Filed 5-23-95; 8:45 am]
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