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

35915

Vol. 61, No. 132

Tuesday, July 9, 1996

FEDERAL DEPOSIT INSURANCE

CORPORATION

5 CFR Part 3201

RIN 3064–AA08, 3209–AA15

Supplemental Standards of Ethical

Conduct for Employees of the Federal

Deposit Insurance Corporation

AGENCY: Federal Deposit Insurance

Corporation (FDIC).

ACTION: Final rule.

SUMMARY: The Federal Deposit

Insurance Corporation, with the

concurrence of the Office of

Government Ethics (OGE), is amending

the Supplemental Standards of Ethical

Conduct for Employees of the Federal

Deposit Insurance Corporation in order

to allow employees’ spouses and minor

children to acquire otherwise prohibited

securities when they are acquired as

part of compensation packages in

connection with their employment. The

amendment is being made retroactively

effective as of the effective date of the

FDIC’s supplemental standards.

EFFECTIVE DATE: May 25, 1995.

FOR FURTHER INFORMATION CONTACT:

Richard M. Handy, Assistant Executive

Secretary (Ethics), (202) 898–7271, in

the Office of the Executive Secretary of

the FDIC.

SUPPLEMENTARY INFORMATION:

I. Background

On April 25, 1995, with the

concurrence of OGE, the FDIC

published as a final rule the

Supplemental Standards of Ethical

Conduct for Employees of the Federal

Deposit Insurance Corporation which

were effective May 25, 1995 (codified at

5 CFR part 3201). The final rule was

issued to supplement OGE’s Standards

of Ethical Conduct for Employees of the

Executive Branch that established

uniform standards of ethical conduct for

executive branch employees (effective

February 3, 1993, and codified at 5 CFR

part 2635).

Upon the determination of the Board

of Directors and with the concurrence of

OGE, part 3201 is being amended to

provide an additional exception to the

prohibitions on the ownership of

securities of FDIC-insured depository

institutions. The amendment allows

spouses and minor children of

employees to acquire otherwise

prohibited securities when they are

acquired as part of compensation

packages in connection with their

employment. The Board of Directors

determined that the provision, without

the revised language, was unnecessarily

restrictive.

This rule is being issued as a final

rule since it reduces the restrictions

placed on employees and their families

by the existing rule. Further, the

amended rule will be made retroactively

effective to May 25, 1995.

II. Matters of Regulatory Procedure

Administrative Procedure Act

Pursuant to 5 U.S.C. 553 (a)(2), (b) and

(d), the Board of Directors has found

that good cause exists for waiving the

regular notice of proposed rulemaking

and 30-day delayed effective date as to

this final rule amendment, and further

making it retroactively effective to May

25, 1995, the effective date of the overall

part 3201. This action is being taken

because it is in the public interest that

this rule, which concerns matters of

agency organization, practice and

procedure and which relieves certain

restrictions placed on FDIC employees

and their families, become effective

retroactively on the effective date of the

original final rule.

Regulatory Flexibility Act

The Board of Directors has concluded

that the amendment to the rule will not

impose a significant economic hardship

on small institutions. Therefore, the

Board of Directors hereby certifies

pursuant to section 605 of the

Regulatory Flexibility Act (5 U.S.C. 605)

that the amended regulation will not

have a significant economic impact on

a substantial number of small business

entities within the meaning of the

Regulatory Flexibility Act (5 U.S.C. 601

et seq.).

Paperwork Reduction Act

The Board of Directors has

determined that the amended regulation

does not contain any information

collection requirements that require the

approval of the Office of Management

and Budget pursuant to the Paperwork

Reduction Act (44 U.S.C. 3501 et seq.).

List of Subjects in 5 CFR Part 3201

Administrative practice and

procedure, Conflict of interests,

Government employees, Reporting and

recordkeeping requirements.

For the reasons set forth in the

preamble, the Federal Deposit Insurance

Corporation, with the concurrence of

the Office of Government Ethics, is

amending 5 CFR part 3201 as follows:

PART 3201—SUPPLEMENTAL

STANDARDS OF ETHICAL CONDUCT

FOR EMPLOYEES OF THE FEDERAL

DEPOSIT INSURANCE CORPORATION

1. The authority citation for part 3201

continues to read as follows:

Authority: 5 U.S.C. 7301; 5 U.S.C. App.

(Ethics in Government Act of 1978); 12

U.S.C. 1819(a), 1822; 26 U.S.C. 1043; E.O.

12674, 54 FR 15159, 3 CFR, 1989 Comp., p.

215, as modified by E.O. 12731, 55 FR 42547,

3 CFR, 1990 Comp., p. 306; 5 CFR 2635.105,

2635.403, 2635.502, and 2635.803.

2. In § 3201.103, paragraph (b)(4) is

amended by revising the first sentence

to read as follows:

§ 3201.103 Prohibitions on ownership of

securities of FDIC-insured depository

institutions.

* * * * *

(b) * * *

(4) Acquiring, owning, or controlling

a security of an FDIC-insured depository

institution or the affiliate of an FDICinsured depository institution where the

security was acquired by inheritance,

gift, stock split, involuntary stock

dividend, merger, acquisition, or other

change in corporate ownership, exercise

of preemptive right, or otherwise

without specific intent to acquire the

security, or, by an employee’s spouse or

minor child as part of a compensation

package in connection with his or her

employment. * * *

* * * * *

Dated at Washington, D.C. this 17th day of

June 1996.

By Order of the Board of Directors.
35916 Federal Register / Vol. 61, No. 132 / Tuesday, July 9, 1996 / Rules and Regulations

Federal Deposit Insurance Corporation.

Robert E. Feldman,

Deputy Executive Secretary.

Concurred in this 1st day of July 1996.

Stephen D. Potts,

Director, Office of Government Ethics.

[FR Doc. 96–17304 Filed 7–8–96; 8:45 am]

BILLING CODE 6714–01–P

DEPARTMENT OF AGRICULTURE

Rural Housing Service

Rural Business-Cooperative Service

Rural Utilities Service

Farm Service Agency

7 CFR Parts 1910, 1924, 1941, 1943,

1945, 1951, 1955, 1962, 1965, and 1980

RIN 0575–AB45

Loan Assessment, Market Placement,

and Graduation of Direct Loan

Borrowers

AGENCIES: Rural Housing Service, Rural

Business-Cooperative Service, Rural

Utilities Service, and Farm Service

Agency, USDA.

ACTION: Interim rule with request for

comments.

SUMMARY: The issuing USDA agencies

are amending the direct and guaranteed

farm loan regulations to implement

changes to the Consolidated Farm and

Rural Development Act (CONACT) as a

result of the Food, Agriculture,

Conservation, and Trade Act of 1990

(1990 Act) and the Agricultural Credit

Improvement Act of 1992 (1992 Act).

These amendments implement and

coordinate ‘‘loan assessment,’’ ‘‘market

placement,’’ and the ‘‘graduation of

seasoned direct loan borrowers to the

loan guarantee program.’’ The intended

outcome is to improve the success rate

of borrowers receiving Farm Service

Agency (FSA) assistance and to

facilitate their transitions to commercial

credit.

DATES: Effective July 9, 1996. Comments

must be submitted by October 7, 1996.

ADDRESSES: Submit written comments

to Steven R. Bazzell, Senior Loan

Officer, Farm Credit Programs Loan

Making Division, Farm Service Agency

(FSA) United States Department of

Agriculture (USDA), Ag Box Code 0522,

Room 5438 South Building, 14th Street

and Independence Avenue, SW.,

Washington, DC. 20250–0522. Written

comments made pursuant to this rule

will be available for public inspection at

the above address between 8:15 am and

4:45 pm, Monday through Friday,

except holidays.

FOR FURTHER INFORMATION CONTACT: Mr.

Bazzell of the Farm Credit Programs

Loan Making Division at telephone

(202) 720–3889, fax (202) 690–1117, or

e-mail sbazzell@wdc.fsa.usda.gov.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This rule has been determined ‘‘not

significant’’ for the purpose of

complying with Executive Order 12866,

and therefore, it has not been reviewed

by the Office of Management and

Budget (OMB).

Executive Order 12372

1. For the reasons set forth in the

Notice related to 7 CFR part 3015,

subpart V (48 FR 29115, June 24, 1983),

Farm Ownership Loans, Farm Operating

Loans, and Emergency Loans are

excluded from the scope of Executive

Order 12372, which requires

intergovernmental consultation with

State and local officials.

2. The Soil and Water Loan Program

is subject to and has complied with the

provisions of Executive Order 12372

and FmHA Instruction 1940–J.

Federal Assistance Programs

These changes affect the following

FSA Farm Credit programs as listed in

the Catalog of Federal Domestic

Assistance:

10.404—Emergency Loans

10.406—Farm Operating Loans

10.407—Farm Ownership Loans

10.416—Soil and Water Loans

Environmental Impact Statement

This document has been reviewed in

accordance with 7 CFR part 1940,

subpart G, ‘‘Environmental Program.’’

The issuing agencies have determined

that this action does not significantly

affect the quality of the human

environment, and in accordance with

the National Environmental Policy Act

of 1969, Public Law 91–190, an

Environmental Impact Statement is not

required.

Executive Order 12778

This interim rule has been reviewed

under Executive Order 12778, Civil

Justice Reform. In accordance with this

rule: (1) All State and local laws and

regulations that are in conflict with this

rule will be preempted; (2) no

retroactive effect will be given to this

rule; and (3) administrative proceedings

in accordance with the National

Appeals Division appeal regulations at 7

CFR part 11 must be exhausted before

bringing suit in court challenging action

taken under this rule unless those

regulations specifically allow bringing

suit at an earlier time.

Paperwork Reduction Act

The information collection or

recordkeeping requirements contained

in these regulations have been approved

by the Office of Management and

Budget (OMB) under the provisions of

44 U.S.C. Chapter 35 and have been

assigned OMB control numbers 0575–

0134, 0575–0061, 0575–0141, 0575–

0085, 0575–0083, 0575–0090, 0575–

0093, 0575–0079 and 0575–0111 in

accordance with the Paperwork

Reduction Act of 1995. This interim rule

does not revise or impose any new

information collection or recordkeeping

requirement from those approved by

OMB.

This regulatory action is being taken

as part of the National Performance

Review program to eliminate

unnecessary regulations and improve

those that remain in force.

Discussion of the Interim Rule

On December 30, 1993, the Farmers

Home Administration (FmHA)

published a proposed rule in the

Federal Register (58 FR 69274–69298)

with a comment period that ended

February 28, 1994. The purpose of this

interim rule is to implement statutory

provisions on loan assessment, market

placement, and graduation of seasoned

direct loan borrowers to the guaranteed

loan program. These provisions were

contained in the 1990 Act and the 1992

Act and affect former FmHA Farmer

Programs. Due to the reorganization of

USDA, responsibility for administering

FmHA Farmer Programs has been

transferred to FSA. Other loan programs

formerly administered by FmHA will

only be affected by general, conforming

administrative revisions made to the

regulations on receiving and processing

applications and analyzing credit needs

and graduation of borrowers. These

programs include: Rural Housing loans

now administered by the Rural Housing

Service (RHS), Water and Waste Facility

loans now administered by the Rural

Utilities Service (RUS), and Business

and Industrial loans and Intermediary

Relending Program loans now

administered by the Rural BusinessCooperative Service (RBS). FSA, RHS,

RUS, and RBS are jointly issuing this

interim rule since substantial

administrative revisions have been

made to regulations affecting their

programs in an effort to reduce Agency

regulations.

The issuing agencies are publishing

these regulations as an interim rule and

providing a 90-day comment period.

The comment period will provide the

public, including Agency field staff, the

opportunity to use and evaluate the new