Authority to Approve Federal Home Loan Bank Bylaws

FEDERAL HOUSING FINANCE BOARD

12 CFR Part 934

[No. 98-32]

RIN 3069-AA70

Authority to Approve Federal Home Loan Bank Bylaws

AGENCY: Federal Housing Finance Board.

ACTION: Final rule.

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SUMMARY: The Federal Housing Finance Board (Finance Board) is adopting

the interim final rule that added a new provision to its regulation on

Federal Home Loan Bank (FHLBank) operations to devolve responsibility

for approving FHLBank bylaws or amendments thereto from the Finance

Board to the boards of directors of the FHLBanks as a final rule

without change. The rule is part of the Finance Board's continuing

effort to devolve management and governance responsibilities to the

FHLBanks and is consistent with the goals of the Regulatory Reinvention

Initiative of the National Performance Review.

EFFECTIVE DATE: The final rule will become effective on August 24,

1998.

FOR FURTHER INFORMATION CONTACT: Amy R. Maxwell, Compliance Assistance

Division, Office of Policy, 202/408-2882, or Janice A. Kaye, Attorney-

Advisor, Office of General Counsel, 202/408-2505, Federal Housing

Finance Board, 1777 F Street, N.W., Washington, DC 20006.

SUPPLEMENTARY INFORMATION:

I. Statutory and Regulatory Background

Subject to the approval of the Finance Board, section 12(a) of the

Federal Home Loan Bank Act authorizes the board of directors of each

FHLBank to ``prescribe, amend, and repeal by-laws, rules, and

regulations governing the manner in which its affairs may be

administered.'' 12 U.S.C. 1432(a). In December 1997, the Finance Board

published an interim final rule with request for comments that added a

new section, designated as Sec. 934.16, to its regulation on FHLBank

operations. See 62 FR 65197 (Dec. 11, 1997), codified at 12 CFR 934.16.

The 30-day public comment period closed on January 12, 1998. See id.

This new provision authorizes the board of directors of each FHLBank to

prescribe, amend, or repeal bylaws or bylaws amendments governing the

manner in which the FHLBank administers its affairs without the prior

approval of the Finance Board provided that the bylaws or bylaws

amendments are consistent with applicable statutes, regulations, and

Finance Board policies.

II. Analysis of Public Comments and the Final Rule

The Finance Board received one comment in response to the interim

final rule. The commenter supports the rule because it promotes more

efficient operations that benefit the FHLBanks, their members, and

homebuyers. Accordingly, for the reasons set forth in detail in the

interim final rulemaking, the Finance Board is adopting the interim

final rule that devolves responsibility for approving FHLBank bylaws

and amendments thereto from the Finance Board to the boards of

directors of the FHLBanks without change.

III. Regulatory Flexibility Act

The Finance Board adopted this amendment to part 934 in the form of

an interim final rule and not as a proposed rule. Therefore, the

provisions of the Regulatory Flexibility Act do not apply. See 5 U.S.C.

601(2), 603(a).

IV. Paperwork Reduction Act

This final rule does not contain any collections of information

pursuant to the Paperwork Reduction Act of 1995. See 44 U.S.C. 3501 et

seq. Consequently, the Finance Board has not submitted any information

to the Office of Management and Budget for review.

List of Subjects in 12 CFR Part 934

Federal home loan banks, Securities, Surety bonds.

Accordingly, the Federal Housing Finance Board hereby adopts the

interim final rule amending 12 CFR part 934 that was published at 62 FR

65197 on December 11, 1997, as a final rule without any change.

Dated: July 8, 1998.

By the Board of Directors of the Federal Housing Finance Board.

Bruce A. Morrison,

Chairperson.

[FR Doc. 98-19811 Filed 7-23-98; 8:45 am]

BILLING CODE 6725-01-P