31392 Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Rules and Regulations

1Pub. L. 104–105 (Feb. 10, 1996), 110 Stat. 163–

64. 12 U.S.C. 2279aa–3(d)–(e).

We solicited comments concerning

our proposal for 60 days ending May 13,

1996. We did not receive any comments.

The facts presented in the proposed rule

still provide the basis for this final rule.

Therefore, based on the rationale set

forth in the proposed rule, we are

adopting the provisions of the proposal

as a final rule without change.

Executive Order 12866 and Regulatory

Flexibility Act

This rule has been reviewed under

Executive Order 12866. The rule has

been determined to be not significant for

the purposes of Executive Order 12866

and, therefore, has not been reviewed by

the Office of Management and Budget.

Our economic analysis indicates that

the amendments will have little

economic impact on privately owned

bird quarantine facilities. Metal and

nylon mesh are comparably priced. In

addition, the rule adds nylon mesh as a

screening option; it does not require

quarantine facilities to be re-screened.

We anticipate that the clarification

concerning double screening will have

no effect on facilities.

Under these circumstances, the

Administrator of the Animal and Plant

Health Inspection Service has

determined that this action will not

have a significant economic impact on

a substantial number of small entities.

Executive Order 12372

This program/activity is listed in the

Catalog of Federal Domestic Assistance

under No. 10.025 and is subject to

Executive Order 12372, which requires

intergovernmental consultation with

State and local officials. (See 7 CFR part

3015, subpart V.)

Executive Order 12778

This rule has been reviewed under

Executive Order 12778, Civil Justice

Reform. This rule: (1) Preempts all State

and local laws and regulations that are

inconsistent with this rule; (2) has no

retroactive effect; and (3) does not

require administrative proceedings

before parties may file suit in court

challenging this rule.

Paperwork Reduction Act

This rule contains no information

collection or recordkeeping

requirements under the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501

et seq.).

List of Subjects in 9 CFR Part 92

Animal diseases, Imports, Livestock,

Poultry and poultry products,

Quarantine, Reporting and

recordkeeping requirements.

Accordingly, 9 CFR part 92 is

amended as follows:

PART 92—IMPORTATION OF CERTAIN

ANIMALS AND POULTRY AND

CERTAIN ANIMAL AND POULTRY

PRODUCTS; INSPECTION AND OTHER

REQUIREMENTS FOR CERTAIN

MEANS OF CONVEYANCE AND

SHIPPING CONTAINERS THEREON

1. The authority citation for part 92

continues to read as follows:

Authority: 7 U.S.C. 1662; 19 U.S.C. 1306;

21 U.S.C. 102–105, 111, 114a, 134a, 134b,

134c, 134d, 134f, 135, 136, and 136a; 31

U.S.C. 9701; 7 CFR 2.22, 2.80, and 371.2(d).

2. In § 92.106, paragraphs (c)(2)(ii)(A)

and (c)(2)(ii)(P)(1) are revised to read as

follows:

§ 92.106 Quarantine requirements.

* * * * *

(c) * * *

(2) * * *

(ii) * * *

(A) Be constructed only with material

that can withstand continued cleaning

and disinfection. All solid walls, floors,

and ceilings must be constructed of

impervious material. All openings to the

outside must be double-screened, with

an interior screen of metal or nylon

mesh that is impervious to biting insects

such as gnats or mosquitos, and an

exterior metal screen that is rodentproof and is made of wire, such as rabbit

wire, hardware cloth, or smooth welded

wire, with mesh size no larger than 1

inch x 1.5 inches (2.54 cm x 3.81 cm).

The interior and exterior screens must

be separated by at least 3 inches (7.62

cm);

* * * * *

(P) * * *

(1) Any of the exterior walls may be

replaced by a double-screened wall set

in a concrete or concrete-block curb.

The double screening shall be of wire

mesh or wire mesh and nylon mesh, as

provided in paragraph (c)(2)(ii)(A) of

this section, with the interior and

exterior screens of the sun room wall

separated by at least 3 inches (7.62 cm);

the concrete or concrete block curb must

be at least 12 inches high, impermeable

to water, and able to prevent the escape

of water, manure, and debris.

* * * * *

Done in Washington, DC, this 14th day of

June 1996.

Lonnie J. King,

Administrator, Animal and Plant Health

Inspection Service.

[FR Doc. 96–15759 Filed 6–19–96; 8:45 am]

BILLING CODE 3410–34–P

FARM CREDIT ADMINISTRATION

12 CFR Part 615

RIN 3052–AB70

Book-entry Procedures for Federal

Agricultural Mortgage Corporation

Securities

AGENCY: Farm Credit Administration.

ACTION: Final rule.

SUMMARY: The Farm Credit System

Reform Act of 1996 (1996 act) provides

that the Federal Agricultural Mortgage

Corporation (Farmer Mac) shall have

access to the Federal Reserve Banks’

book-entry system (Fed book-entry

system). The Farm Credit

Administration (FCA) is issuing a final

rule authorizing the issuance of Farmer

Mac securities in book-entry format.

Farmer Mac will use the Fed book-entry

system in connection with the issuance

and settlement of its unsecured debt

securities and its guaranteed securities

using substantially the same procedures

used by all other Government-sponsored

enterprises (GSEs).

EFFECTIVE DATE: June 13, 1996.

FOR FURTHER INFORMATION CONTACT:

Larry W. Edwards, Director, Office of

Secondary Market Oversight, Farm

Credit Administration, McLean, VA

22102–5090, (703) 883–4051.

SUPPLEMENTARY INFORMATION:

I. Background

Section 105 of the 1996 act amends

sections 8.3(d) and (e) of the Farm

Credit Act of 1971, as amended (act), to

require that Farmer Mac have access to

the Fed book-entry system and that the

Federal Reserve Banks Act as

depositories for, and as fiscal agents of,

Farmer Mac.1 Congress mandated

Farmer Mac’s access to the Fed bookentry system as part of a broad-based

reform of Farmer Mac’s charter and

statutory authority. Among other reform

measures, the 1996 Act liberalized

Farmer Mac’s charter to allow it to pool

loans in a fashion similar to such other

GSEs as the Federal National Mortgage

Association (Fannie Mae) and the

Federal Home Loan Mortgage

Corporation (Freddie Mac), which

operate in the secondary market for

mortgage-backed securities. To facilitate

Farmer Mac’s use of its new authority

and to help it meet its new

responsibilities, Congress amended the

act to ‘‘streamline Farmer Mac’s

business operations,’’ including

‘‘providing for Farmer Mac’s access to
Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Rules and Regulations 31393

2H.R. Rep. No. 446, 104th Cong., 2d Sess., pt. 1,

at 8 (1996).

3All other GSEs that utilize the Fed book-entry

system, including the Farm Credit System, have

regulations in place that govern their book-entry

securities. See, e.g., 24 CFR part 81 (Fannie Mae);

1 CFR part 462 (Freddie Mac); 31 CFR part 354

(Student Loan Marketing Association (Sallie Mae)).

4H.R. Rep. No. 446, supra note 2, at 9.

5 Id. at 8.

6Pub. L. 104–105, supra note 1, § 117.

the book-entry system of the Federal

Reserve System.’’ 2

Currently, all Farmer Mac securities

(both debt and guaranteed) are issued,

settled, and traded through the facilities

of the Depository Trust Company (DTC),

one of the private depositories available

to issuers whose securities are not

tradable on the Fed book-entry system.

DTC’s costs (and the costs of other

private depositories) are higher than

those of the Federal Reserve Banks,

which results in higher costs for Farmer

Mac and its investors. Furthermore, it

appears that investors may differentiate

adversely between Farmer Mac’s

securities and all other GSEs’ securities

because Farmer Mac securities are not

issued through the Fed book-entry

system. Access to the Fed book-entry

system, therefore, is viewed as an

important element in the

Congressionally mandated effort to

reform and revitalize Farmer Mac.

II. Implementing Regulations

To implement Farmer Mac’s new

statutory authority to access the Fed

book-entry system, regulations are

necessary to establish a framework for

issuance and subsequent disposition of

Farmer Mac securities issued through

the Fed book-entry system. Without

such regulations, investors would not

know what law governs the holding,

transferring, and pledging of the Farmer

Mac securities in which they have

invested. This uncertainty could create

a perception of market risk that could

detrimentally affect investment in

Farmer Mac securities and possibly

could place Farmer Mac securities at a

marketing disadvantage compared to the

securities of other GSEs.3

FCA regulations governing book-entry

procedures with respect to Farm Credit

System (FCS) securities were adopted in

1977 and are located at 12 CFR part 615,

subpart O. The FCA’s book-entry

regulations are based on the Department

of the Treasury’s book-entry regulations

at 31 CFR part 357, subpart O. The

regulations establish procedures that

permit FCS banks to utilize the Fed

book-entry system in the same way as

do other GSEs. The FCA extended its

book-entry regulations in 1988 by

adding a new subpart R to 12 CFR part

615 to cover securities issued by the

FCS Financial Assistance Corporation.

Rather than duplicating the basic bookentry regulations found in subpart O,

subpart R incorporates by reference the

pertinent book-entry provisions from

subpart O and applies them to the

Financial Assistance Corporation.

The FCA is adopting the same

abbreviated approach to applying bookentry regulations to Farmer Mac in this

rulemaking. The final rule creates a new

subpart S in part 615 that authorizes the

issuance of Farmer Mac securities in

book-entry format pursuant to pertinent

provisions of subpart O of part 615,

which are incorporated by reference.

The incorporated provisions of subpart

O include: §§ 615.5460 (definitions),

615.5465 (authority of Reserve Banks),

615.5470 (scope and effect of book-entry

procedure), 615.5475 (transfer or

pledge), 615.5480 (withdrawal of

securities), 615.5485 (delivery of

securities), 615.5490 (classes of

accounts), 615.5492 (identification of

accounts), and 615.5494 (servicing

book-entry securities, including

payment of interest and payment at

maturity or upon call).

III. Necessity for Immediate Regulatory

Action

In passing the 1996 act, Congress

recognized the difficulties Farmer Mac

has had in meeting its statutory mandate

and the resulting deterioration in its

core capital.4 In what the House

Committee on Agriculture termed ‘‘the

most extensive attempt yet to make

Farmer Mac a viable secondary market

for agricultural real estate and moderate

rural housing loans,’’ 5 the 1996 act

eases prior statutory operating

requirements and expands the activities

in which Farmer Mac can engage. It is

clear that Congress also expects Farmer

Mac to act quickly to stabilize its

financial position and rebuild its core

capital. Section 117 of the 1996 act

requires that, if Farmer Mac does not

complete mandatory recapitalization of

its core capital within 2 years, its

activities will be critically restricted. If

the 2-year goal is not met, Farmer Mac

will not be allowed to purchase a new

qualified loan or issue or guarantee a

new loan-backed security.6

In the very near future, Farmer Mac

plans to issue debt securities backed by

mortgages purchased by Farmer Mac

pursuant to its new authority under the

1996 act. Farmer Mac intends to utilize

the Fed book-entry system to issue the

securities, as sanctioned by the 1996 act.

To avoid creating any ambiguities

regarding Farmer Mac’s authority to

obtain access to the Fed book-entry

system and to ensure that the book-entry

treatment of Farmer Mac’s securities

will be the same as that of other GSEs,

the FCA is taking expedited action to

adopt book-entry regulations covering

Farmer Mac.

In view of the clear Congressional

mandate expressed in the 1996 act that

Farmer Mac have access to the Fed

book-entry system and the equally clear

Congressional intent that Farmer Mac

utilize its new authorities to rebuild its

core capital and meet its other statutory

mandates as soon as possible, the FCA

believes that expedited rulemaking

action is warranted for book-entry

regulations covering Farmer Mac.

Moreover, the regulations adopted are

minor, technical, and noncontroversial.

For these reasons, the FCA finds good

cause to omit notice and comment as

impracticable, unnecessary, and

contrary to the public interest pursuant

to section 553(b)(B) of the

Administrative Procedure Act, 5 U.S.C.

553–59 (APA). The same reasons and, in

particular, the time limit Congress has

imposed on Farmer Mac to recapitalize

its core capital base, provide good cause

to adopt an effective date for the

regulations that is less than 30 days after

publication in the Federal Register. 5

U.S.C. 553(d). The FCA’s finding of

good cause for expedited rulemaking

action also supports specifying an

effective date for the regulations that is

prior to the date of filing of the report

to Congress required by the Small

Business Regulatory Enforcement

Fairness Act, 5 U.S.C. 801–808. See 5

U.S.C. 808. Finally, consistent with the

reasons for its expedited actions under

the APA, the FCA finds that, pursuant

to section 5.17(c)(2) of the act, an

emergency exists that requires that these

regulations take effect prior to the

expiration of the 30-day Congressional

notice and waiting period for final

agency regulatory action.

The FCA notes that the U. S. Treasury

Department recently proposed TRADES

(Treasury/Reserve Automated Debt

Entry System) regulations (61 FR 8420,

March 4, 1996), which will govern bookentry treatment of Treasury securities.

Since FCA’s book-entry regulations are

based on the Treasury’s book-entry

regulations, the FCA expects to revise

all of its book-entry regulations,

including those covering Farmer Mac, to

conform with the Treasury’s TRADE

regulations when they are finalized.

Accordingly, there will be opportunity

for public comment on FCA book-entry

regulations at that time.
31394 Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Rules and Regulations

List of Subjects in 12 CFR Part 615

Accounting, Agriculture, Banks,

banking, Government securities,

Investments, Rural areas.

For the reasons stated in the

preamble, part 615 of chapter VI, title 12

of the Code of Federal Regulations is

amended to read as follows:

PART 615—FUNDING AND FISCAL

AFFAIRS, LOAN POLICIES AND

OPERATIONS, AND FUNDING

OPERATIONS

1. The authority citation for part 615

is revised 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,

4.3A, 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, 2154a, 2160, 2202b,

2211, 2243, 2252, 2278b, 2278b-6, 2279aa,

2279aa-3, 2279aa-4, 2279aa-6, 2279aa-7,

2279aa-8, 2279aa-10, 2279aa-12); sec. 301(a)

of Pub. L. 100–233, 101 Stat. 1568, 1608; sec.

105 of Pub. L. 104–105, 110 Stat. 162, 163–

64.

2. Subpart S is added to read as

follows:

Subpart S—Federal Agricultural Mortgage

Corporation Securities

Sec.

615.5570 Book-entry procedures for Federal

Agricultural Mortgage Corporation

securities.

Subpart S—Federal Agricultural

Mortgage Corporation Securities

§ 615.5570 Book-entry procedures for

Federal Agricultural Mortgage Corporation

Securities.

(a) The Federal Agricultural Mortgage

Corporation (Farmer Mac) is a Federally

chartered instrumentality of the United

States and an institution of the Farm

Credit System, subject to the

examination and regulation of the Farm

Credit Administration.

(b) Farmer Mac, either in its own

name or through an affiliate controlled

or owned by Farmer Mac, is authorized

by section 8.6 of the Act:

(1) To issue and/or guarantee the

timely payment of principal and interest

on securities representing interests in or

obligations backed by pools of

agricultural real estate loans (guaranteed

securities); and

(2) to issue debt obligations (which,

together with the guaranteed securities

described in paragraph (b)(1) of this

section, are referred to as Farmer Mac

securities). Farmer Mac may prescribe

the forms, the denominations, the rates

of interest, the conditions, the manner

of issuance, and the prices of Farmer

Mac securities.

(c) Farmer Mac securities shall be

governed by §§ 615.5460, 615.5465,

615.5470, 615.5475, 615.5480, 615.5485,

615.5490, 615.5492, and 615.5494. In

interpreting those sections for purposes

of this section, the term ‘‘Farmer Mac

securities’’ shall be read for ‘‘Farm

Credit securities,’’ and ‘‘Farmer Mac’’

shall be read for ‘‘banks of the Farm

Credit System’’ and ‘‘Farm Credit bank.’’

Dated: June 14, 1996.

Floyd Fithian,

Secretary, Farm Credit Administration.

[FR Doc. 96–15733 Filed 6–19–96; 8:45 am]

BILLING CODE 6705–01–P

DEPARTMENT OF ENERGY

Federal Energy Regulatory

Commission

18 CFR Parts 35 and 385

[Docket Nos. RM95–8–002 and RM94–7–

003]

Promoting Wholesale Competition

Through Open Access Nondiscriminatory Transmission Services

by Public Utilities; Recovery of

Stranded Costs by Public Utilities and

Transmitting Utilities

Issued: June 14, 1996.

AGENCY: Federal; Energy Regulatory

Commission.

ACTION: Final rule; notice of filing of

motion for extension of time.

SUMMARY: On June 12, 1996, the

American Public Power Association, the

Electricity Consumers Resource

Council, the National Rural Electric

Cooperative Association and the Ohio

Consumers’ Counsel (Joint Movants)

filed a joint request to extend the

comment period for compliance filings

made under this final rule (Order No.

888, 61 FR 21540, May 10, 1996) from

the 15-day comment period established

in the final rule to a 45-day comment

period. Joint Movants also asked that

the Commission require that the

compliance tariff filings, as well as

redline versions of those filings, be

made in electronic format and posted on

the FERC Bulletin Board. Copies of the

motion are on file with the Commission

and are available for public inspection.

DATES: Any person desiring to respond

to the motion should file an answer on

or before June 21, 1996.

ADDRESSES: Send answers to: Office of

the Secretary, Federal Energy Regulatory

Commission, 888 First St., NE.,

Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT:

David D. Withnell, Federal Energy

Regulatory Commission, Office of the

General Counsel, 888 First St., NE.,

Washington, DC 20426, Telephone:

(202) 208–2063.

Lois D. Cashell,

Secretary.

[FR Doc. 96–15760 Filed 6–19–96; 8:45 am]

BILLING CODE 6717–01–M

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR PART 10

[T.D. 96–51]

Replacement of CF 7506 by CF 7501

AGENCY: U.S. Customs Service,

Department of the Treasury.

ACTION: Final rule.

SUMMARY: This document amends the

Customs Regulations to replace a

reference to Customs Form (CF) 7506 in

§ 10.62(c)(2), Customs Regulations, with

a reference to CF 7501. This change was

inadvertently omitted from a final rule

document published in the Federal

Register on October 6, 1995 (60 FR

52294) which replaced all other

references to CF 7506 in the Customs

Regulations with references to CF 7501.

EFFECTIVE DATE: June 20, 1996.

FOR FURTHER INFORMATION CONTACT:

Raymond Janiszewski, Office of Trade

Compliance, (202)927–0380.

SUPPLEMENTARY INFORMATION:

Background

Previously, CF 7506, Warehouse

Withdrawal Conditionally Free of Duty

and Permit, was the form used to make

warehouse withdrawals for merchandise

conditionally free of duty. The CF 7506

has now been eliminated, and the CF

7501 is to be used instead.

In a final rule document published in

the Federal Register (60 FR 52294) on

October 6, 1995, references to CF 7506

were deleted and replaced by reference

to CF 7501. Inadvertently, the reference

to CF 7506 in § 10.62(c)(2), Customs

Regulations (19 CFR 10.62 (c)(2)), was

not deleted in that document and

replaced with a reference to CF 7501.

This document corrects that omission.

Regulatory Flexibility Act, Executive

Order 12866, Inapplicability of Public

Notice and Comment Requirements,

and Delayed Effective Date

Requirements

Inasmuch as this amendment merely

substitutes one Customs Form for

another, pursuant to 5 U.S.C. 553 (a)(2)

and (b)(B), good cause exists for