Organization and Functions; Privacy Act Regulations; Organization; Loan Policies and Operations; Funding and Fiscal Affairs, Loan Policies and Operations, and Funding Operations; General Provisions; Definitions

FARM CREDIT ADMINISTRATION

12 CFR Parts 600, 603, 611, 614, 615, 618, and 619

RIN 3052-AB61

Organization and Functions; Privacy Act Regulations;

Organization; Loan Policies and Operations; Funding and Fiscal Affairs,

Loan Policies and Operations, and Funding Operations; General

Provisions; Definitions

AGENCY: Farm Credit Administration.

ACTION: Final rule and notice of effective date.

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SUMMARY: The Farm Credit Administration (FCA or Agency) through the

Farm Credit Administration Board adopts as final without change an

interim rule that updates the regulations in parts 600, 603, 611, 614,

615, 618, and 619. This rule eliminates unnecessary, outdated,

duplicative, or burdensome regulatory requirements, replaces outdated

regulatory language with more current terminology, and clarifies the

intended meaning of certain regulatory provisions.

EFFECTIVE DATE: March 4, 1997.

FOR FURTHER INFORMATION CONTACT:

Linda C. Sherman, Policy Analyst, Regulation Development Division,

Office of Policy Development and Risk Control, Farm Credit

Administration, McLean, VA 22102-5090, (703) 883-4498, TDD (703) 883-

4444.

or

Wendy R. Laguarda, Senior Attorney, Legal Counsel Division, Office of

General Counsel, Farm Credit Administration, McLean, VA 22102-5090,

(703) 883-4020, TDD (703) 883-4444.

SUPPLEMENTARY INFORMATION: On December 20, 1996, the FCA published an

interim rule with request for public comments (61 FR 67181). The

interim rule is part of the FCA's ongoing efforts to streamline the

regulatory process and reduce regulatory burden. The regulatory changes

made in parts 600, 603, 611, 614, 615, 618, and 619 update the

regulatory language with more current terminology, remove

contradictions between the regulations and the Farm Credit Act of 1971,

as amended (Act), clarify certain regulations, and eliminate

regulations or sections of regulations that are burdensome or

unnecessary. These changes cover a wide variety of technical issues,

such as bylaw amendments, Federal records retention, liquidation of

associations and banks, interest rate programs, loan servicing

requirements, purchasing automobiles through the General Services

Administration, retirement of eligible borrower stock, the definition

of banks for cooperatives, disclosure of data regarding borrowers to

credit bureaus, disposal of obsolete records, Farm Credit System

(System) institution employees being summoned as witnesses, and issues

on borrower rights and agricultural credit banks.

The public comment period closed on January 31, 1997. The FCA

received two comments on the interim rule, both from System

institutions. One commenter thanked the FCA for clarifying an issue

regarding release of borrower information to consumer reporting

agencies at Sec. 618.8320. The comment letter stated that the change

would eliminate uncertainty in a sensitive area of lending operations

and result in benefits to borrowers and the System.

The other comment received responded to the FCA's request that

institutions inform the Agency of any Federal records still in their

possession. The commenter stated that they do not have any of the

records referred to in the previous FCA regulation at Sec. 618.8390. As

noted in the preamble to the interim rule, the FCA's goal is to

identify all Federal records still retained by System institutions so

that they can either be destroyed (at the institution's discretion) or

archived, as appropriate. Additional guidance on the maintenance and

disposition of Federal records will be provided by the Agency in the

near future.

The FCA Board adopts the interim rule amending 12 CFR parts 600,

603, 611, 614, 615, 618, and 619, which was published at 61 FR 67181 on

December 20, 1996, as final without change.

[[Page 18038]]

List of Subjects

12 CFR Part 600

Organization and functions (Government agencies).

12 CFR Part 603

Privacy.

12 CFR Part 611

Agriculture, Banks, Banking, Rural areas.

12 CFR Part 614

Agriculture, Banks, Banking, Flood insurance, Foreign trade,

Reporting and recordkeeping requirements, Rural areas.

12 CFR Part 615

Accounting, Agriculture, Banks, Banking, Government securities,

Investments, Rural areas.

12 CFR Part 618

Agriculture, Archives and records, Banks, Banking, Insurance,

Reporting and recordkeeping requirements, Rural areas, Technical

assistance.

12 CFR Part 619

Agriculture, Banks, Banking, Rural areas.

Dated: April 8, 1997.

Floyd Fithian,

Secretary, Farm Credit Administration Board.

[FR Doc. 97-9473 Filed 4-11-97; 8:45 am]

BILLING CODE 6705-01-P