This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

54758 

Vol. 74, No. 204 

Friday, October 23, 2009 

1To view and comment upon the interim rule 

and its supporting documents, go to http:// 

www.regulations.gov/fdmspublic/component/ 

main?main=DocketDetail&d=APHIS-2009-0048. 2See footnote 1. 

DEPARTMENT OF AGRICULTURE 

Animal and Plant Health Inspection 

Service 

7 CFR Part 354 

[Docket No. APHIS–2009–0048] 

RIN 0579–AC99 

User Fees for Agricultural Quarantine 

and Inspection Services; Public 

Meeting 

AGENCY: Animal and Plant Health 

Inspection Service, USDA. 

ACTION: Notice of public meeting. 

SUMMARY: We are informing the public 

of an upcoming meeting to address 

affected stakeholders’ questions and 

concerns regarding the agricultural 

quarantine and inspection user fee 

increases scheduled to go into effect on 

November 1, 2009. The meeting is being 

organized by the Animal and Plant 

Health Inspection Service. 

DATES: The meeting will be held on 

October 27, 2009, from 9 a.m. to 1 p.m. 

Registration will begin at 8:30 a.m. 

ADDRESSES: The public meeting will be 

held in the USDA Center at Riverside, 

4700 River Road, Riverdale, MD. 

FOR FURTHER INFORMATION CONTACT: Mr. 

William E. Thomas, Director, 

Quarantine Policy, Analysis, and 

Support, PPQ, APHIS, 4700 River Road, 

Unit 131, Riverdale, MD 20737; (301) 

734–5214. 

SUPPLEMENTARY INFORMATION: In an 

interim rule 1 published in the Federal 

Register on September 28, 2009 (74 FR 

49311–49315, Docket No. APHIS–2009– 

0048), we amended the user fee 

regulations in 7 CFR part 354 by 

adjusting the fees charged for certain 

agricultural quarantine and inspection 

(AQI) services that are provided in 

connection with certain commercial 

vessels, commercial trucks, commercial 

railroad cars, commercial aircraft, and 

international airline passengers arriving 

at ports in the customs territory of the 

United States. In the interim rule, we 

explained that the recent downturn in 

the U.S. economy has negatively 

impacted travel volumes, and, as a 

result, our user fee collections, which 

fund these services, have diminished. 

Although the volume of international 

travel and trade has decreased, 

inspection and related support services 

continue to be provided at their existing 

levels, so expenses have not decreased. 

As a result, our user fee collections have 

not been sufficient to enable us to 

provide those services and maintain a 

reasonable reserve balance. We therefore 

found it necessary to increase our AQI 

user fees in order to provide adequate 

funds for these purposes. 

The interim rule was scheduled to 

become effective on October 1, 2009. 

However, we subsequently published a 

document in the Federal Register on 

October 2, 2009 (74 FR 50915, Docket 

No. APHIS–2009–0048), in which we 

delayed the effective date of the user fee 

increases until November 1, 2009. This 

delay was intended to provide entities 

affected by the changes in AQI user fees 

additional time to make the necessary 

preparations to comply with the new 

fees. In conjunction with the delay, we 

held a public meeting on October 15, 

2009, in Riverdale, MD. Transcripts of 

that meeting are available for viewing 

on the Regulations.gov Web site.2

APHIS will continue to accept public 

comments on the interim rule until 

November 27, 2009. In order to gather 

additional feedback and to address 

questions and concerns that 

stakeholders potentially affected by the 

AQI user fee increases may have, we 

plan to hold a second public meeting. 

The public meeting will be held on 

Tuesday, October 27, 2009, in the USDA 

Center at Riverside, 4700 River Road, 

Riverdale, MD. Registration will begin at 

8:30 a.m. The public meeting will begin 

at 9 a.m. and is scheduled to end at 1 

p.m. Additional information regarding 

the meeting may be obtained from the 

person listed under FOR FURTHER

INFORMATION CONTACT. 

Security Procedures 

Upon entering the building, visitors 

should inform security personnel that 

they are attending the AQI user fee 

public meeting. State-issued photo 

identification is required and all bags 

will be screened. Security personnel 

will direct visitors to the registration 

tables located outside of the conference 

center on the first floor. Registration 

upon arrival is required for all 

participants. 

Done in Washington, DC, this 20th day of 

October 2009. 

Kevin Shea, 

Acting Administrator, Animal and Plant 

Health Inspection Service. 

[FR Doc. E9–25548 Filed 10–22–09; 8:45 am] 

BILLING CODE 3410–34–P 

FEDERAL HOUSING FINANCE BOARD 

12 CFR Part 918 

FEDERAL HOUSING FINANCE 

AGENCY 

12 CFR Part 1261 

RIN 2590–AA31 

Federal Home Loan Bank Directors’ 

Compensation and Expenses 

AGENCY: Federal Housing Finance 

Agency. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

implement section 1202 of the Housing 

and Economic Recovery Act of 2008 

(HERA), which amended section 7(i) of 

the Federal Home Loan Bank Act (Bank 

Act) by repealing the statutory caps on 

the annual compensation that can be 

paid to Federal Home Loan Bank (Bank) 

directors. The proposed rule would 

allow each Bank to pay its directors 

reasonable compensation and expenses, 

subject to the authority of the Director 

(Director) of the Federal Housing 

Finance Agency (FHFA) to object to, 

and to prohibit prospectively, 

compensation and/or expenses that the 

Director determines are not reasonable. 

DATES: FHFA will accept written 

comments on this proposed rule on or 

before December 7, 2009. 

ADDRESSES: You may submit your 

comments on the proposed rule 

identified by regulatory information 

number (RIN) 2590–AA31 by any one of 

the following methods: 

• U.S. Mail, United Parcel Post, 

Federal Express, or Other Mail Service: 

The mailing address for comments is: 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS
Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Proposed Rules 54759 

Alfred M. Pollard, General Counsel, 

Attention: Comments/RIN 2590–AA31, 

Federal Housing Finance Agency, 

Fourth Floor, 1700 G Street, NW., 

Washington, DC 20552. 

• Hand Delivered/Courier: The hand 

delivery address is: Alfred M. Pollard, 

General Counsel, Attention: Comments/ 

RIN 2590–AA31, Federal Housing 

Finance Agency, Fourth Floor, 1700 G 

Street, NW., Washington DC 20552. The 

package should be logged at the Guard 

Desk, First Floor, on business days 

between 9 a.m. and 5 p.m. 

• E-mail: Comments to Alfred M. 

Pollard, General Counsel, may be sent 

by e-mail to RegComments@fhfa.gov. 

Please include ‘‘RIN 2590–AA31’’ in the 

subject line of the message. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. If 

you submit your comment to the 

Federal eRulemaking Portal, please also 

send it by e-mail to FHFA at 

RegComments@fhfa.gov to ensure 

timely receipt by the agency. Include 

the following information in the subject 

line of your submission: Federal 

Housing Finance Agency. Proposed 

Rule: Federal Home Loan Bank 

Directors’ Compensation and Expenses, 

RIN 2590–AA31. 

FOR FURTHER INFORMATION CONTACT: 

Daniel E. Coates, Associate Director, 

Risk Analysis and Research, (202) 408– 

2959, Daniel.Coates@fhfa.gov; Neil R. 

Crowley, Deputy General Counsel, (202) 

343–1316, Neil.Crowley@fhfa.gov. The 

telephone number for the 

Telecommunications Device for the Deaf 

is 800–877–8339. 

SUPPLEMENTARY INFORMATION: 

I. Comments 

FHFA invites comments on all aspects 

of the proposed rule and will take all 

comments into consideration before 

issuing the final rule. Copies of all 

comments will be posted without 

change, including any personal 

information you provide, such as your 

name and address, on the FHFA Internet 

Web site at http://www.fhfa.gov. In 

addition, copies of all comments 

received will be available for 

examination by the public on business 

days between the hours of 10 a.m. and 

3 p.m., at the Federal Housing Finance 

Agency, Fourth Floor, 1700 G Street, 

NW., Washington, DC 20552. To make 

an appointment to inspect comments, 

please call the Office of General Counsel 

at (202) 414–3751. 

II. Background 

A. Establishment of FHFA 

Effective July 30, 2008, Division A of 

HERA, Public Law 110–289, 122 Stat. 

2654 (2008), titled the Federal Housing 

Finance Regulatory Reform Act of 2008, 

created FHFA as an independent agency 

of the Federal Government. 

HERA transferred to FHFA the 

supervisory, mission, and oversight 

responsibilities over the Federal 

National Mortgage Association and the 

Federal Home Loan Mortgage 

Corporation (the Enterprises), and the 

Banks (collectively, regulated entities) 

from the U.S. Department of Housing 

and Urban Development (HUD), 

including the Office of Federal Housing 

Enterprise Oversight (OFHEO), and from 

the Federal Housing Finance Board 

(FHFB). HERA abolished OFHEO and 

the FHFB one year after the date of its 

enactment. 

FHFA is responsible for ensuring that 

the Enterprises and the Banks operate in 

a safe and sound manner, including 

their maintenance of adequate capital, 

internal controls, that their operations 

and activities foster liquid, efficient, 

competitive, and resilient national 

housing finance markets, and that they 

carry out their public policy missions 

through authorized activities. See § 1102 

of HERA, amending section 1313 of the 

Federal Housing Enterprises Financial 

Safety and Soundness Act of 1992 

(Safety and Soundness Act) (12 U.S.C. 

4513). The regulated entities continue to 

operate under regulations promulgated 

by OFHEO and FHFB until such 

regulations are superseded by 

regulations promulgated by FHFA. See 

id. section 1302 and 1312 of HERA; 122 

Stat. 2795, 2798. 

B. Statutory and Regulatory Background 

Until 1999, section 7(i) of the Bank 

Act authorized the Banks to pay 

reasonable compensation and expenses 

to their directors, subject to the approval 

of the FHFB. In 1999, Congress 

amended section 7(i) to impose 

statutory caps on the amount of annual 

compensation that a Bank could pay to 

its Chairperson, Vice Chairperson and 

other directors. See Public Law 106– 

102, 113 Stat. 1338, 1453 (November 12, 

1999). As part of HERA, Congress 

repealed the statutory caps on director 

compensation, the effect of which was 

to reinstate the prior statutory structure, 

which authorized the Banks to pay 

reasonable compensation and expenses 

to their directors, subject to the approval 

of FHFA. See § 1202 of HERA, 

amending section 7(i) of the Bank Act at 

12 U.S.C. 1427(i). HERA also enhanced 

the authority of the Director to oversee 

the compensation practices of the 

regulated entities more generally. See 

id. § 1202 of HERA and §§ 1113 and 

1114 of HERA (the latter sections amend 

section 1318 of the Safety and 

Soundness Act, 12 U.S.C. 4518). The 

proposed rule would implement the 

provisions of section 7(i) of the Bank 

Act in a manner that is consistent with 

the other authorities that the Director 

has over the compensation practices of 

the regulated entities. 

C. HERA Section 1201 

Section 1201 of HERA (section 1313(f) 

of the Safety and Soundness Act) 

requires the FHFA Director to consider 

the differences between the Banks and 

the Enterprises in rulemakings that 

affect the Banks with respect to the 

Banks’ cooperative ownership structure, 

mission of providing liquidity to 

members, affordable housing and 

community development mission, 

capital structure and joint and several 

liability. 12 U.S.C. 4513(f). In preparing 

this proposed rule, the Director 

considered these factors and determined 

that the rule is appropriate, particularly 

because the proposed amendments 

would implement statutory provisions 

of the Bank Act that apply only to the 

Banks. Nonetheless, FHFA requests 

comments about whether these factors 

should result in a revision of the 

proposed amendment as it relates to the 

Banks. 

III. Analysis of Proposed Rule 

A. Scope of the Proposed Rule 

This proposed rule would relocate the 

FHFB regulations relating to director 

compensation in their entirety from part 

918 of the FHFB regulations to part 1261 

of the FHFA regulations. In addition, 

the proposed rule would amend certain 

provisions of those regulations to reflect 

the changes made by HERA. Although 

each of the individual amendments to 

the FHFB regulations may not be 

evident from the regulatory text of the 

proposed rule because the provisions 

are being relocated in their entirety, any 

material substantive revisions are 

discussed in this preamble. 

B. Definitions—Section 1261.20 

For the sake of consistency, the 

proposed rule would replace the earlier 

rule’s definition of ‘‘compensation’’ 

with a simplified version of the 

definition currently proposed in FHFA’s 

executive compensation rule, which is 

based on the definition of 

‘‘compensation’’ in the Safety and 

Soundness Act. The new definition is in 

substance the same as the old; it would 

encompass any kind of payment or 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS
54760 Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Proposed Rules 

other provision of value for a director’s 

services, and would include, but not be 

limited to, such things as meeting fees, 

incentive payments, and perquisites or 

fringe benefits. 

C. General—Section 1261.21 

The proposed rule would add a new 

§ 1261.21, which is intended to 

articulate the general standard under 

which the Banks may compensate their 

directors and to establish reporting 

requirements with respect to how Banks 

compensate their directors. The general 

standard is derived from section 7(i) of 

the Bank Act and closely parallels the 

statutory provisions, i.e., it authorizes 

the Banks to pay reasonable 

compensation and expenses to their 

directors, but also makes clear that the 

director compensation practices of the 

Banks remain subject to FHFA oversight 

and possible disapproval. The new 

reporting requirements are intended to 

provide FHFA with a basis to assess the 

reasonableness of the compensation and 

expenses paid to a Bank’s directors, as 

well as to provide FHFA with the 

information necessary to prepare its 

annual report to Congress regarding the 

compensation and expenses paid to 

Bank directors, as required by section 

1202 of HERA, which amended the 

Bank Act at 12 U.S.C. 1427(i)(2). (See 

also section 1319B of the Safety and 

Soundness Act, 12 U.S.C. 4521, for the 

content of the Director’s annual report.) 

D. Directors’ Compensation Policy— 

Section 1261.22 

Section 1261.22 of the proposed rule 

addresses the requirement that each 

Bank must adopt annually a written 

policy relating to the compensation and 

expenses to be paid to its directors. This 

provision includes elements from 

§ 918.2 and § 918.3 of the FHFB’s 

regulations governing this topic, as well 

as new provisions relating to the HERA 

amendments. In addition, this section 

would delete the Gramm-Leach-Bliley 

(GLB) salary caps, as required by 

HERA’s amendment of section 7(i) of 

the Bank Act, and which currently are 

codified at § 918.3(a). 

Paragraph (a) of this section would 

require each Bank’s board of directors 

annually to adopt a written policy to 

provide for the payment of reasonable 

compensation and expenses to the 

directors of the Bank. This provision 

would also state that such payments 

may be based on any factors that the 

board of directors determines to be 

appropriate, subject to the other 

requirements of the regulation. Both of 

those requirements exist under the 

FHFB regulations and are carried 

forward into the FHFA regulations 

without substantive change. 

Paragraph (b) of this section would 

specify the minimum contents of a 

Bank’s director compensation policy, 

much of which already is included in 

§ 918.2 and § 918.3 of the FHFB 

regulations. Specifically, the 

compensation policy must: (a) Identify 

the activities or functions for which 

director attendance or participation is 

necessary and which may be 

compensated; (b) explain and justify the 

methodology used to determine the 

amount of compensation to be paid to 

the Bank directors; (c) include 

provisions requiring that compensation 

paid must reflect the amount of time a 

director has spent on official business, 

and that compensation be reduced, as 

necessary, to reflect lesser attendance at 

board or committee meetings. 

Paragraph (c) of this section prohibits 

a Bank from paying compensation to a 

director who regularly fails to attend 

board or committee meetings, and 

prohibits the payment of fees to a 

director that do not reflect the director’s 

performance of official Bank business 

conducted prior to the payment of such 

fees (e.g., retainer fees). This provision 

largely reiterates similar prohibitions 

contained in § 918.3(b) of the FHFB 

regulations. 

Paragraph (d) of this section is a new 

provision that requires each Bank to 

submit to the Director a copy of its 

directors’ compensation policy, along 

with all studies or other supporting 

materials upon which the Bank relied in 

determining the level of compensation 

and expenses to pay its directors. The 

Bank must submit the information no 

later than 10 business days after 

adopting the policy, and no fewer than 

30 calendar days prior to the first 

payment to directors being made under 

the policy. The Director intends to use 

this information in assessing the 

reasonableness of the compensation and 

expenses paid to directors each year, as 

well as to develop the provisions for its 

annual report to Congress that address 

the amount of compensation and 

expenses paid by each of the Banks to 

its directors. 

E. Director Disapproval—Section 

1261.23 

Section 918.5 of the FHFB regulations 

deemed any payments made by the 

Banks in accordance with the provisions 

of part 918 to be approved by the FHFB 

for purposes of section 7(i) of the Bank 

Act. The proposed rule includes a new 

provision, § 1261.23, which addresses 

the Director’s authority to disapprove 

compensation arrangements that do not 

conform to the reasonableness standard 

imposed by section 7(i) of the Bank Act. 

This section provides that the Director 

may determine that a Bank’s 

compensation arrangements are not 

reasonable after reviewing the Bank’s 

director compensation policy, the 

methodology employed in establishing 

the amount of compensation and/or 

expenses to be paid, or any other 

materials submitted by the Bank in 

support of its policy. In such an event, 

the Director may order a Bank to refrain 

from making any further payments 

based upon that compensation policy, 

although the proposal also provides that 

any such order will be applied 

prospectively and will not affect 

payments made prior to the Director’s 

order. 

F. Other Amendments—Sections 

1261.24, 1261.25, 1261.26 and 1261.27 

The proposed rule includes several 

other provisions that are carried over 

from the regulations of the FHFB 

without material substantive changes. 

Sections 1261.24 and 1261.27 of the 

proposed rule, which relate to directors’ 

expenses and the location of board and 

committee meetings, respectively, are 

identical to the corresponding 

provisions within the FHFB regulations. 

Section 1261.25, which relates to items 

that must be disclosed in a Bank’s 

annual report to its members, adds four 

elements to those that were required by 

the FHFB regulations. The additional 

items relate to the amount of 

compensation and expenses paid to 

each director during the year, the 

number of board and committee 

meetings held each year, and the 

number of board and committee 

meetings that each board member 

attended during the year. 

Section 1261.26 of the proposed rule, 

relating to the number of in-person 

board meetings each Bank must hold 

annually, is much the same as § 918.7 of 

the FHFB regulations, except that the 

proposal does not include any 

references to the statutory compensation 

caps and introduces a new provision 

requiring the board of directors of each 

Bank to hold as many meetings as is 

appropriate for the board to carry out its 

fiduciary responsibilities to the Bank. 

That provision is intended to recognize 

that changing circumstances may 

require the board of directors of a Bank 

to meet more frequently than the 

minimum of six in-person meetings 

each year, if such additional meetings 

are needed to address adverse financial 

or supervisory issues, or for other 

reasons. 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS
Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Proposed Rules 54761 

IV. Paperwork Reduction Act 

The proposed rule does not contain 

any information collection requirements 

that require the approval of the Office of 

Management and Budget under the 

Paperwork Reduction Act (44 U.S.C. 

3501 et seq.). 

V. Regulatory Flexibility Act 

The proposed rule, if adopted as a 

final rule, will apply only to the Banks, 

which do not come within the meaning 

of ‘‘small entities,’’ as defined in the 

Regulatory Flexibility Act (RFA). See 5 

U.S.C. 601(6). Therefore, in accordance 

with section 605(b) of the RFA, 5 U.S.C. 

605(b), the General Counsel of FHFA 

hereby certifies that the proposed rule, 

if promulgated as a final rule, will not 

have a significant economic impact on 

a substantial number of small entities. 

List of Subjects in 12 CFR Parts 918 and 

1261 

Banks, Banking, Community 

development, Conflicts of interest, 

Credit, Elections, Ethical conduct, 

Federal home loan banks, Financial 

disclosure, Housing, Reporting and 

recordkeeping requirements, Wages. 

Authority and Issuance 

For the reasons stated in the 

preamble, under the authority of 12 

U.S.C. 1427, 4511, 4526, FHFA proposes 

to amend chapters IX and XII, of title 12 

of the Code of Federal Regulations as 

follows: 

CHAPTER IX—FEDERAL HOUSING 

FINANCE BOARD 

PART 918—[REMOVED] 

1. Remove part 918. 

CHAPTER XII—FEDERAL HOUSING 

FINANCE AGENCY 

PART 1261—FEDERAL HOME LOAN 

BANK DIRECTORS 

2. The authority citation for part 1261 

continues to read as follows: 

Authority: 12 U.S.C. 1426, 1427, 1432, 

4511 and 4526. 

3. Add Subpart B to read as follows: 

Subpart B—Federal Home Loan Bank 

Directors’ Compensation and Expenses 

Sec. 

1261.20 Definitions. 

1261.21 General. 

1261.22 Directors’ compensation policy. 

1261.23 Director disapproval. 

1261.24 Directors’ expenses. 

1261.25 Disclosure. 

1261.26 Board meetings. 

1261.27 Site of board of directors and 

committee meetings. 

Subpart B—Federal Home Loan Bank 

Directors’ Compensation and 

Expenses 

§ 1261.20 Definitions. 

As used in this subpart: 

Compensation means any payment of 

money or the provision of any other 

thing of current or potential value in 

connection with service as a director. 

Compensation includes all direct and 

indirect payments of benefits, both cash 

and non-cash, granted to or for the 

benefit of any director. 

§ 1261.21 General. 

(a) Standard. Each Bank may pay its 

directors reasonable compensation for 

the time required of them, and their 

necessary expenses, in the performance 

of their duties, as determined by a 

resolution adopted by the board of 

directors of the Bank and subject to the 

provisions of this subpart. 

(b) Reporting. No later than December 

1 of each calendar year, each Bank shall 

report to the Director the compensation 

anticipated to be paid to its directors for 

the following calendar year. By no later 

than the tenth business day of each 

calendar year, each Bank shall report to 

the Director the amount of 

compensation and expenses paid to 

each director for the immediately 

preceding calendar year. 

§ 1261.22 Directors’ compensation policy. 

(a) General. Each Bank’s board of 

directors annually shall adopt a written 

compensation policy to provide for the 

payment of reasonable compensation 

and expenses to the directors for the 

time required of them in performing 

their duties as directors. Payments 

under the directors’ compensation 

policy may be based on any factors that 

the board of directors determines 

reasonably to be appropriate, subject to 

the requirements set forth in this 

subpart. 

(b) Minimum contents. The 

compensation policy shall address the 

activities or functions for which director 

attendance or participation is necessary 

and which may be compensated, and 

shall explain and justify the 

methodology used to determine the 

amount of compensation to be paid to 

the Bank directors. The compensation 

policy shall require that any 

compensation paid to a director reflect 

the amount of time the director has 

spent on official Bank business, and 

shall require that compensation be 

reduced, as necessary to reflect lesser 

attendance or performance at board or 

committee meetings during a given year. 

(c) Prohibited payments. A Bank shall 

not pay a director who regularly fails to 

attend board or committee meetings, 

and shall not pay fees to a director that 

do not reflect the director’s performance 

of official Bank business conducted 

prior to the payment of such fees. 

(d) Submission requirements. By no 

later than the tenth business day after 

adopting its annual policy for director 

compensation and expenses, and at least 

30 days prior to the first payment being 

made to its directors, each Bank shall 

submit to the Director a copy of the 

policy, along with all studies or other 

supporting materials upon which the 

board relied in determining the level of 

compensation and expenses to pay to its 

directors. 

§ 1261.23 Director disapproval. 

The Director may determine, based 

upon his or her review of a Bank’s 

director compensation policy, 

methodology and/or other related 

materials, that the compensation and/or 

expenses to be paid to the directors are 

not reasonable. In such case, the 

Director may order the Bank to refrain 

from making any further payments 

under that compensation policy. Any 

such Director determination and order 

shall be applied prospectively only and 

shall not affect any compensation or 

expense payments made prior to the 

date of the Director’s determination and 

order. 

§ 1261.24 Directors’ expenses. 

Each Bank may pay its directors for 

such necessary and reasonable travel, 

subsistence and other related expenses 

incurred in connection with the 

performance of their official duties as 

are payable to senior officers of the Bank 

under the Bank’s travel policy, except 

that directors may not be paid for gift or 

entertainment expenses. 

§ 1261.25 Disclosure. 

Each Bank shall, in its annual report: 

(a) State the sum of the total 

compensation paid to its directors in 

that year; 

(b) State the sum of the total expenses 

paid to its directors in that year; 

(c) State the total compensation paid 

to each director in that year; 

(d) State the total expenses paid to 

each director in that year; 

(e) State the total number of board 

meetings and meetings of its designated 

committees held in that year; 

(f) State the number of board and 

designated committee meetings that 

each director attended; and 

(g) Summarize its policy on director 

compensation. 

§ 1261.26 Board meetings. 

The board of directors of each Bank 

shall hold as many meetings as 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS
54762 Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Proposed Rules 

necessary and appropriate to carry out 

its fiduciary responsibilities with 

respect to the effective oversight of the 

management of the Bank and such other 

duties and obligations as may be 

imposed by applicable laws, provided 

the board of directors of a Bank shall 

hold a minimum of six in-person 

meetings in any year. 

§ 1261.27 Site of board of directors and 

committee meetings. 

Meetings of a Bank’s board of 

directors and committees thereof 

usually should be held within the 

district served by the Bank. No meetings 

of a Bank’s board of directors and 

committees thereof may be held in any 

location that is not within the United 

States, including its possessions and 

territories. 

Dated: October 18, 2009. 

Edward J. DeMarco, 

Acting Director, Federal Housing Finance 

Agency. 

[FR Doc. E9–25577 Filed 10–22–09; 8:45 am] 

BILLING CODE 8070–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 25 

[Docket No. NM417; Notice No. 25–09–12– 

SC] 

Special Conditions: Model C–27J 

Airplane; Class E Cargo Compartment 

Lavatory 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed special 

conditions. 

SUMMARY: This action proposes special 

conditions for the Alenia Model C–27J 

airplane. This airplane has novel or 

unusual design features when compared 

to the state of technology described in 

the airworthiness standards for 

transport-category airplanes. These 

design features include a lavatory in the 

Class E cargo compartment. The 

applicable airworthiness regulations do 

not contain adequate or appropriate 

safety standards for these design 

features. These proposed special 

conditions contain the additional safety 

standards that the Administrator 

considers necessary to establish a level 

of safety equivalent to that established 

by the existing airworthiness standards. 

We have issued additional special 

conditions for other novel or unusual 

design features of the C–27J. 

DATES: We must receive your comments 

by November 23, 2009. 

ADDRESSES: You must mail two copies 

of your comments to: Federal Aviation 

Administration, Transport Airplane 

Directorate, Attn: Rules Docket (ANM– 

113), Docket No. NM417, 1601 Lind 

Avenue, SW., Renton, Washington 

98057–3356. You may deliver two 

copies to the Transport Airplane 

Directorate at the above address. You 

must mark your comments: Docket No. 

NM417. You can inspect comments in 

the Rules Docket weekdays, except 

Federal holidays, between 7:30 a.m. and 

4 p.m. 

FOR FURTHER INFORMATION CONTACT: Tom 

Groves, FAA, International Branch, 

ANM–116, Transport Airplane 

Directorate, Aircraft Certification 

Service, 1601 Lind Avenue, SW., 

Renton, Washington 98057–3356; 

telephone (425) 227–1503, facsimile 

(425) 227–1149. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite interested people to take 

part in this rulemaking by sending 

written comments, data, or views. The 

most helpful comments reference a 

specific portion of the special 

conditions, explain the reason for any 

recommended change, and include 

supporting data. We ask that you send 

us two copies of written comments. 

We will file in the docket all 

comments we receive, as well as a 

report summarizing each substantive 

public contact with FAA personnel 

concerning these special conditions. 

You can inspect the docket before and 

after the comment closing date. If you 

wish to review the docket in person, go 

to the address in the ADDRESSES section 

of this preamble between 7:30 a.m. and 

4 p.m., Monday through Friday, except 

Federal holidays. 

We will consider all comments we 

receive on or before the closing date for 

comments. We will consider comments 

filed late if it is possible to do so 

without incurring expense or delay. We 

may change these special conditions 

based on the comments we receive. 

If you want the FAA to acknowledge 

receipt of your comments on this 

proposal, include with your comments 

a self-addressed, stamped postcard on 

which the docket number appears. We 

will stamp the date on the postcard and 

mail it back to you. 

Background 

On March 27, 2006, the European 

Aviation Safety Agency (EASA) 

forwarded to the FAA an application 

from Alenia Aeronautica of Torino, 

Italy, for U.S. type certification of a 

twin-engine, commercial transport 

designated as the Model C–27J. The 

C–27J is a twin-turbopropeller, cargotransport aircraft with a maximum 

takeoff weight of 30,500 kilograms. 

Type Certification Basis 

Under the provisions of Section 21.17 

of Title 14 Code of Federal Regulation 

(14 CFR) and the bilateral agreement 

between the U.S. and Italy, Alenia 

Aeronautica must show that the C–27J 

meets the applicable provisions of 14 

CFR part 25, as amended by 

Amendments 25–1 through 25–87. 

Alenia also elects to comply with 

Amendment 25–122, effective 

September 5, 2007, for 14 CFR 25.1317. 

If the Administrator finds that 

existing airworthiness regulations do 

not adequately or appropriately address 

safety standards for the C–27J due to a 

novel or unusual design feature, we 

prescribe special conditions under 

provisions of 14 CFR 21.16. 

In addition to the applicable 

airworthiness regulations and special 

conditions, the C–27J must comply with 

the fuel-vent and exhaust-emission 

requirements of 14 CFR part 34 and the 

noise-certification requirements of 14 

CFR part 36, and the FAA must issue a 

finding of regulatory adequacy under 

§ 611 of Public Law 92–574, the ‘‘Noise 

Control Act of 1972.’’ 

The FAA issues special conditions, as 

defined in 14 CFR 11.19, in accordance 

with § 11.38, and they become part of 

the type-certification basis under 

§ 21.17(a)(2). 

Special conditions are initially 

applicable to the model for which they 

are issued. Should the type certificate 

for that model be amended later to 

include any other model that 

incorporates the same or similar novel 

or unusual design feature, the special 

conditions also apply to the other model 

under § 21.101. 

Novel or Unusual Design Features 

The C–27J incorporates a lavatory into 

the Class E cargo compartment, which is 

considered a novel or unusual design 

feature in a cargo compartment. In 

developing the airworthiness 

requirements for cargo compartments, 

the FAA did not envision that a lavatory 

would be installed inside a Class E 

cargo compartment. Lavatories, 

including the one proposed for the C– 

27J, typically contain electrical systems, 

which could serve as ignition sources 

for a fire, and an oxygen supply system, 

which could intensify the growth and 

size of a fire. Therefore, consideration 

must be given to a means to control the 

possibility of the: 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS