Federal Register / Vol. 60, No. 68 / Monday, April 10, 1995 / Rules and Regulations 17985

Federal Assistance Program

The title and number of the Federal

Assistance Program, as found in the

catalog of Federal Domestic Assistance,

to which this rule applies are: Cotton

Production Stabilization—10.052.

Executive Order 12778

This final rule has been reviewed in

accordance with Executive Order 12778.

The provisions of the final rule do not

preempt State laws, are not retroactive,

and do not involve administrative

appeals.

Executive Order 12372

This program/activity is not subject to

the provisions of Executive Order

12372, which requires

intergovernmental consultation with

State and local officials. See notice

related to 7 CFR part 3015, subpart V,

published at 48 FR 29115 (June 24,

1983).

Paperwork Reduction Act

The amendments to 7 CFR parts 1413

and 1427 set forth in this final rule do

not contain information collections that

require clearance by the Office of

Management and Budget under the

provisions of 44 U.S.C. 35.

Background

This final rule amends 7 CFR part

1413 to set forth determinations on the

1995 ARP and the PLD Program and 7

CFR part 1427 to set forth the

determinations on the 1995 price

support level. General descriptions of

the statutory basis for the 1995 ELS ARP

percentage determination in this final

rule were set forth in the proposed rule

at 59 FR 55378 (November 7, 1994).

Three comments were received during

the comment period. Two respondents

recommended that an ARP level not

higher than 10-percent would be

sufficient to maintain a stable level of

supplies. One respondent recommended

a 15-percent ARP, but recognized that a

10-percent ARP would be acceptable.

In accordance with statutory

requirements, the Secretary of

Agriculture (Secretary) announced: a 10-

percent ARP; a price support level of

79.65 cents per pound; and a target

price of 95.6 cents per pound, for the

1995 ELS cotton program on December

1, 1994. The Secretary determined that

a 10-percent ARP would maintain U.S.

competitiveness in world markets while

balancing the risks of excessive supplies

and possible shortages. A 10-percent

ARP reflects the current supply

situation while signaling to domestic

and foreign customers that the U.S. will

be a reliable supplier.

Acreage Reduction

In accordance with section 103(h)(5)

of the 1949 Act, an ARP has been

established for the 1995 crop of ELS

cotton at 10 percent. Accordingly,

producers will be required to reduce

their 1995 acreage of ELS cotton for

harvest from the crop acreage base

established for ELS cotton by at least

this established percentage in order to

be eligible for price support loans,

purchase, and payments.

Paid Land Diversion

In accordance with section

103(h)(5)(B) of the 1949 Act, a PLD

Program will not be implemented for

the 1995 crop of ELS cotton.

Price Support Rate

In accordance with section 103(h)(2)

of the 1949 Act, the price support rate

has been established with respect to the

1995 crop of ELS cotton at 79.65 cents

per pound.

Established (Target) Price

In accordance with section

103(h)(3)(B) of the 1949 Act, the

established (target) price has been

established with respect to the 1995

crop of ELS cotton at 95.6 cents per

pound.

List of Subjects

7 CFR Part 1413

Acreage allotments, Cotton, Disaster

assistance, Feed grains, Price support

programs, Reporting and recordkeeping

requirements, Rice, Soil conservation,

Wheat.

7 CFR Part 1427

Cotton, Loan programs/agriculture,

Packaging and containers, Price support

programs, Reporting and recordkeeping

requirements, Surety bonds,

Warehouses.

Accordingly, 7 CFR parts 1413 and

1427 are amended as follows:

PART 1413—FEED GRAIN, RICE,

UPLAND AND EXTRA LONG STAPLE

COTTON, WHEAT AND RELATED

PROGRAMS

1. The authority citation for 7 CFR

part 1413 continues to read as follows:

Authority: 7 U.S.C. 1308, 1308a, 1309,

1441–2, 1444–2, 1444f, 1445b–3a, 1461–

1469; 15 U.S.C. 714b and 714c.

2. Section 1413.54 is amended as

follows by:

A. Revising paragraphs (a)(5)(iii) and

(a)(5)(iv), and

B. Adding paragraphs (a)(5)(v),

C. Adding paragraph (d)(5):

§ 1413.54 Acreage reduction program

provisions.

(a) * * *

(5) * * *

(iii) 1993 ELS cotton, 20 percent;

(iv) 1994 ELS cotton, 15 percent; and

(v) 1995 ELS cotton, 10 percent.

* * * * *

(d) * * *

(5) For the 1995 crop:

(i)–(iii) [Reserved]

(iv) Shall not be made available to

producers of ELS cotton.

* * * * *

3. Section 1413.103 is amended by

adding paragraph (a)(8)(v) and revising

paragraph (b) to read as follows:

§ 1413.103 Established (target) prices.

(a) * * *

(8) * * *

(v) 1995 ELS cotton—$.95.6/lb.

(b) ELS cotton target price for the

1996 crop will be established as 120

percent of the loan rate for ELS cotton.

PART 1427—COTTON

4. The authority citation for 7 CFR

part 1427 continues to read as follows:

Authority: 7 U.S.C. 1421, 1423, 1425, and

1444–2; 15 U.S.C. 7114b and 714c.

5. Section 1427.8 is amended as

follows by:

A. Revising paragraphs (a)(2)(iii) and

(a)(2)(iv), and

B. Adding paragraph (a)(2)(v):

§ 1427.8 Amount of loan.

(a) * * *

(2) * * *

(iii) 1993 ELS cotton, 88.12 cents per

pound;

(iv) 1994 ELS cotton, 85.03 cents per

pound; and

(v) 1995 ELS cotton, 79.65 cents per

pound.

* * * * *

Signed at Washington, DC on March 31,

1995.

Grant Buntrock,

Acting Executive Vice President, Commodity

Credit Corporation.

[FR Doc. 95–8743 Filed 4–7–95; 8:45 am]

BILLING CODE 3410–05–P

DEPARTMENT OF ENERGY

10 CFR Part 600

Deviations for the Technology

Reinvestment Project

AGENCY: Department of Energy.

ACTION: Rules; class deviations.

SUMMARY: The Department of Energy

(DOE), pursuant to 10 CFR 600.4, hereby
17986 Federal Register / Vol. 60, No. 68 / Monday, April 10, 1995 / Rules and Regulations

announces two deviations from its

Financial Assistance Rules for the

Technology Reinvestment Project (TRP).

The approval of these deviations

ensures that the program goals and

objectives are achieved and that public

funds are conserved.

The TRP is a joint agency effort which

implements the provisions of Defense

Conversion, Reinvestment, and

Transition Act of 1992. The Advanced

Research Projects Agency, Department

of Energy, National Aeronautics and

Space Administration, Department of

Commerce through the National

Institutes of Standards and Technology,

the Department of Transportation and

the National Science Foundation are the

six agencies collaborating in the TRP.

The mission of TRP is to stimulate the

transition to a growing, integrated,

national industrial capability which

provides the most advanced, affordable,

military systems and the most

competitive commercial production.

The TRP seeks to harness the best

talents available to focus on technology

innovation, extension, infrastructure,

and education and training for product

and process technologies of critical

importance to both national security

and the national economy.

The two deviations have been

approved because they are required to

achieve program objectives. The first

deviation will permit budget periods in

excess of 12 months consistent with the

solicitation and the second deviation

permits DOE to withhold payments with

30 days verbal advance notification.

EFFECTIVE DATE: April 25, 1995.

FOR FURTHER INFORMATION CONTACT:

Cynthia Yee, Office of Clearance and

Support, [HR–522.2], U.S. Department

of Energy, 1000 Independence Avenue,

SW., Washington, DC 20585, (202) 586–

1140.

SUPPLEMENTARY INFORMATION: In this

notice, the DOE announces that,

pursuant to 10 CFR Part 600, the Deputy

Assistant Secretary for Procurement and

Assistance Management has made a

determination of the need for two

deviations to the DOE Financial

Assistance Rules. The determination

document, dated March 13, 1995

provides for deviations for TRP

recipients as explained below [i.e., a

‘‘class deviation’’].

Deviation Number 1 deviates from the 12-

month budget period limitation contained in

600.31(b). This deviation is necessary to

permit projects with budget periods in excess

of 12 months to be awarded. The solicitation

allows for budgets with a base term of 12 to

24 months with options for additional 12 to

24 months. Therefore, deviation is required

to execute those financial assistance

agreements for projects with performance

periods greater than 12 months.

Deviation Number 2 permits the

withholding of payment for failure to meet

established milestone schedules with 30 days

verbal notice of failure to make progress,

thereby providing adequate advance notice of

non-compliance. This is a deviation to

600.122(h) and 600.28 and furthers the

program objective of reducing the

administrative burden.

Issued in Washington, DC, March 13, 1995.

Richard H. Hopf,

Deputy Assistant Secretary for Procurement

and Assistance Management.

[FR Doc. 95–8630 Filed 4–7–95; 8:45 am]

BILLING CODE 6450–01–P

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the

Currency

12 CFR Part 3

[Docket No. 95–07]

RIN 1557–AB14

Risk-Based Capital Requirements—

Low Level Recourse

AGENCY: Office of the Comptroller of the

Currency, Treasury.

ACTION: Final rule.

SUMMARY: The Office of the Comptroller

of the Currency (OCC) is revising its

risk-based capital standards as required

by section 350 of the Riegle Community

Development and Regulatory

Improvement Act of 1994. This final

rule modifies the risk-based capital

treatment of recourse obligations to

ensure that the amount of capital that a

bank must hold against a recourse

obligation does not exceed the bank’s

maximum contractual exposure. This

corrects an anomaly in the existing riskbased capital standards under which the

capital requirement could exceed a

bank’s maximum exposure.

EFFECTIVE DATE: May 10, 1995.

FOR FURTHER INFORMATION CONTACT:

David Thede, Senior Attorney,

Securities and Corporate Practices

Division (202/874–5210), Stephen

Jackson, National Bank Examiner, (202)

874–5070, Office of the Comptroller of

the Currency, 250 E Street, SW.,

Washington, DC 20219.

SUPPLEMENTARY INFORMATION: The Office

of the Comptroller of the Currency

(OCC) is revising its risk-based capital

standards as required by section 350 of

the Riegle Community Development and

Regulatory Improvement Act of 1994,

Pub. L. 103–325, 108 Stat. 2160 (the

‘‘CDRI Act’’). Under the OCC’s current

risk-based capital standards, assets

transferred with recourse are reported

on the balance sheet in regulatory

reports. These amounts are thus

included in the calculation of banks’

risk-based capital and leverage capital

ratios. Where a bank holds a low level

of recourse, the amount of capital

required could exceed the bank’s

maximum contractual liability under

the recourse agreement. This can occur

in transactions in which a bank

contractually limits its recourse

exposure to less than the full effective

risk-based capital requirement for the

assets transferred—generally, 4 percent

for mortgage assets and 8 percent for

other assets.

The OCC and the other Federal

banking agencies (the Office of Thrift

Supervision, Federal Reserve Board, and

Federal Deposit Insurance Corporation)

have long recognized this anomaly in

the risk-based capital standards. On

May 25, 1994, the Federal banking

agencies, under the auspices of the

Federal Financial Institutions

Examination Council (FFIEC), issued a

notice of proposed rulemaking and

advance notice of proposed rulemaking

(59 FR 27116) covering the capital

treatment of recourse obligations and

direct credit substitutes. The notice

proposed, among other things, to amend

the agencies’ risk-based capital

guidelines to limit the capital charge in

low level recourse transactions to an

institution’s maximum contractual

recourse liability. For these types of

transactions the proposal would

effectively result in a dollar capital

charge for each dollar of low level

recourse exposure, up to the full

effective risk-based capital requirement

on the underlying assets.

Of the 38 commenters that sent

comments to the OCC in response to the

May 25 proposal, 13 commenters

specifically addressed limiting the

capital requirement for low level

recourse transactions to a bank’s

maximum contractual exposure. All 13

supported the limit, although many

advocated additional changes to the

OCC’s capital standards for recourse

obligations.

On September 23, 1994, the CDRI Act

was signed into law. The OCC is issuing

this final rule now in order to

implement section 350. Consequently,

this final rule covers only the limitation

of the capital requirement to a bank’s

maximum contractual exposure and

does not address any of the other issues

raised in the May 25, 1994, proposal.

The OCC and the other Federal banking

agencies will continue to consider those

other issues.