Unknown. Interim final rule with request for comments

4,070 words·~19 min read·/register/2003/03/28/03-7387

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--- schema: federal-register doc_type: fedreg source_file: FR-2003-03-28.xml --- 68 60 Friday, March 28, 2003 Contents Agriculture Agriculture Department See Animal and Plant Health Inspection Service See Food and Nutrition Service See Forest Service See Rural Housing Service See Rural Utilities Service Alcohol Alcohol and Tobacco Tax and Trade Bureau PROPOSED RULES Alcoholic beverages: Flavored malt beverages Correction, 15119 03-7624 Animal Animal and Plant Health Inspection Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 15146 03-7493 Army Army Department See Engineers Corps NOTICES Agency information collection activities; proposals, submissions, and approvals, 15156 03-7496 Patent licenses; non-exclusive, exclusive, or partially exclusive:

Infectious JEV cDNA clones that produce highly attenuated recombinant JEV, and vaccines, 15156-15157 03-7497 Blind Blind or Severely Disabled, Committee for Purchase From People Who Are See Committee for Purchase From People Who Are Blind or Severely Disabled Centers Centers for Disease Control and Prevention NOTICES Agency information collection activities; proposals, submissions, and approvals, 15190-15191 03-7457 Grant and cooperative agreement awards: World Health Organization, 15191 03-7456 Grants and cooperative agreements; availability, etc.:

Communication and Negotiation About Barrier Contraceptive Use Among Young Adults At Risk, 15191-15196 03-7452 Centers Centers for Medicare & Medicaid Services RULES Medicare: Ambulatory surgical centers; ratesetting methodology, payment rates and policies, and covered surgical procedures list, 15267-15312 03-7236 PROPOSED RULES Medicare: Prosthetics and Certain Custom-Fabricated Orthotics; Special Payment Provisions and Requirements; Negotiated Rulemaking Committee; meetings, 15139-15140 03-7494 NOTICES Medicare and medicaid:

Program issuances; quarterly listing, 15196-15206 03-7063 Meetings: Medicare— Inpatient rehabilitation facility prospective payment system; town hall meeting, 15206-15207 03-7495 New durable medical equipment coding and payment determinations, 15207-15209 03-7060 Civil Civil Rights Commission NOTICES Meetings; State advisory committees: Rhode Island, 15151 03-7477 Coast Guard Coast Guard RULES Drawbridge operations: Florida, 15051 03-7383 Ports and waterways safety: Chesapeake Bay, Calvert County, MD;

Calvert Cliffs Nuclear Power Plant; security zone, 15051-15053 03-7385 Willamette River, Portland, OR; safety zones, 15053-15055 03-7386 Regattas and marine parades: U.S. Naval Academy Crew Races, 15050-15051 03-7384 Commerce Commerce Department See Industry and Security Bureau See International Trade Administration See National Oceanic and Atmospheric Administration See National Telecommunications and Information Administration See Patent and Trademark Office Committee for Purchase Committee for Purchase From People Who Are Blind or Severely Disabled NOTICES Procurement list; additions and deletions, 03-7491 15150-15151 03-7492 CITA Committee for the Implementation of Textile Agreements NOTICES African Growth and Opportunity Act; determinations:

Light- and medium-weight dyed warp pile cotton velvet for use in apparel articles; commercial availabilty; comment request, 15154-15155 03-7621 Defense Defense Department See Army Department See Engineers Corps NOTICES Federal Acquisition Regulation (FAR): Agency information collection activities; proposals, submissions, and approvals, 15155-15156 03-7473 Drug Drug Enforcement Administration NOTICES *Applications, hearings, determinations, etc.:* Genesis 1:29 Corp., 15225-15226 03-7389 Guerra, Lazaro, M.D., 15226-15227 03-7388 Leslie, Robert A., M.D., 15227-15231 03-7390 Education Education Department NOTICES Meetings:

Institutional Quality and Integrity National Advisory Committee, 15159-15161 03-7479 Employment Employment and Training Administration NOTICES Federal-State unemployment compensation program: Workforce Security Programs; unemployment insurance program letters— Federal unemployment insurance law; interpretation, 15241-15243 03-7450 Employment Employment Standards Administration NOTICES Minimum wages for Federal and federally-assisted construction; general wage determination decisions, 15243-15244 03-7084 Energy Energy Department See Energy Efficiency and Renewable Energy Office See Federal Energy Regulatory Commission NOTICES Grants and cooperative agreements; availability, etc.:

Renewable energy and energy efficiency on tribal lands; strategic and energy resource planning, capacity building, and organizational development, 15161 03-7518 Energy Energy Efficiency and Renewable Energy Office NOTICES Reports and guidance documents; availability, etc.: Alternative fuel vehicle acquisition, 15161-15162 03-7478 Engineers Engineers Corps NOTICES Base realignment and closure: Surplus Federal property— Honey Lake, Sierra Army Depot, Herlong, CA, 15157 03-7499 Environmental statements; notice of intent:

Hendry County, FL; Caloosahatchee River Aquifer Storage and Recovery Project, 15157-15158 03-7501 Hendry, Glades, Charlotte, or Lee Counties, FL; C-43 Basin Storage Reservoir Project, 15158 03-7498 Palm Beach County, FL— Palm Beach Harbor Lake Worth Access Channel Expansion, Section 107 Small Navigation Project; correction, 15159 03-7500 EPA Environmental Protection Agency RULES Air quality implementation plans; approval and promulgation; various States: Pennsylvania, 15059-15061 03-7510 Toxic substances:

Significant new uses— Alkoxylated alkylpolyol acrylates, etc., 15061-15089 03-7373 PROPOSED RULES Air quality implementation plans; approval and promulgation; various States: Pennsylvania, 15138-15139 03-7511 NOTICES Environmental statements; availability, etc.: Agency statements— Comment availability, 15166-15167 03-7503 Weekly receipts, 15165 03-7502 Grants and cooperative agreements; availability, etc.: Environmental Compliance Program, 15167-15170 03-7509 Reports and guidance documents; availability, etc.:

Onsite and Clustered (Decentralized) Wastewater Treatment Systems— Management Guidelines, 15172-15173 03-7506 Management Handbook, 15170-15172 03-7505 Superfund; response and remedial actions, proposed settlements, etc.: Sealand Restoration Site, NY, 15173 03-7508 Shenandoah Road Groundwater Contamination Site, NY, 15173-15174 03-7507 Executive Executive Office of the President See Presidential Documents Farm Farm Credit Administration RULES Farm credit system: Funding and fiscal affairs, loan policies and operations, and funding operations— Asset-backed and mortgage-backed securities investments; capital adequacy, 15045-15047 03-7387 FAA Federal Aviation Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 15259-15260 03-7380 Meetings:

RTCA, Inc., 15260 03-7379 Passenger facility charges; applications, etc.: Palm Beach County, FL, et al., 15260-15263 03-7381 FCC Federal Communications Commission RULES Practice and procedure: Truthful statements, 15096-15098 03-7462 Radio stations; table of assignments: Georgia, 15099-15100 03-7470 Louisiana, 15099 03-7463 Texas, 15099 03-7464 Wisconsin, 15100 03-7472 PROPOSED RULES Radio stations; table of assignments: California, 15142-15143 03-7467 Oklahoma and Texas, 15143-15144 03-7471 Texas, 03-7465 15140-15142 03-7468 03-7469 Various States, 15140-15141 03-7466 NOTICES Common carrier services:

Wireless telecommunications services— Narrowband PCS spectrum auction; notice and filing requirements, etc., 15174-15188 03-7459 Meetings: Technological Advisory Council, 15188 03-7523 Privacy Act: Systems of records, 15188-15190 03-7554 Federal Energy Federal Energy Regulatory Commission NOTICES Electric rate and corporate regulation filings: New England Power Pool et al., 15162-15163 03-7416 Environmental statements; availability, etc.: FPL Energy Maine Hydro, LLC, 15163 03-7418 Hydroelectric applications, 15163-15165 03-7417 03-7419 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies:

Change in bank control, 15190 03-7376 Formations, acquisitions, and mergers, 15190 03-7375 Financial Financial Management Service See Fiscal Service Fiscal Fiscal Service NOTICES Surety companies acceptable on Federal bonds: Navigators Insurance Co., 15264 03-7391 Fish Fish and Wildlife Service RULES Endangered Species Act: Evaluation of conservation efforts when making listing decisions; policy, 15100-15115 03-7364 NOTICES Comprehensive conservation plans; availability, etc.:

Alamosa and Monte Vista National Wildlife Refuge Complex, CO, 15221-15224 03-7453 Environmental statements; availability, etc.: Double-crested cormorant management, 15224-15225 03-7474 Food Food and Drug Administration PROPOSED RULES Food for human consumption: Current good manufacturing practice— Dietary supplements and dietary supplement ingredients; meetings, 15117-15118 03-7377 NOTICES Agency information collection activities; proposals, submissions, and approvals, 15209 03-7476 Food Food and Nutrition Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 15146 03-7414 Forest Forest Service NOTICES Environmental statements; notice of intent:

Sequoia National Forest, CA, 15147-15148 03-6685 Meetings: Resource Advisory Committees— Mineral County, 15148 03-7455 GSA General Services Administration RULES Federal Management Regulation: Internet GOV Domain, 15089-15092 03-7413 NOTICES Federal Acquisition Regulation (FAR): Agency information collection activities; proposals, submissions, and approvals, 15155-15156 03-7473 Health Health and Human Services Department See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Food and Drug Administration See National Institutes of Health See Substance Abuse and Mental Health Services Administration RULES Federal claims collection:

Administrative wage garnishment, 15092-15096 03-7394 Homeland Homeland Security Department See Coast Guard Housing Housing and Urban Development Department NOTICES Grants and cooperative agreements; availability, etc.: Facilities to assist homeless— Excess and surplus Federal property, 15216-15217 03-7109 Privacy Act: Systems of records, 15217-15220 03-7415 Industry Industry and Security Bureau NOTICES Export transactions: List of unverified persons in foreign countries, guidance to exporters as to “red flags” (Supplement No. 3 to 15 CFR 732); revisions, 15151-15152 03-7484 Interior Interior Department See Fish and Wildlife Service NOTICES Reports and guidance documents; availability, etc.:

Klamath River Basin; Federal agency work plans and reports, 15220-15221 03-7513 IRS Internal Revenue Service PROPOSED RULES Employment taxes and collectionof income taxes at source: Payment card transactions; information reporting and backup withholding; cross-reference to Taxpayer Identification Number Matching Program rule Correction, 15119 03-7267 Income taxes: Partnership; noncompensatory options Correction, 15118-15119 03-7525 NOTICES Meetings: Taxpayer Advocacy Panels, 03-7526 15264-15265 03-7527 03-7528 International International Trade Administration NOTICES Antidumping:

Preserved mushrooms from— China, 15152-15153 03-7520 Justice Justice Department See Drug Enforcement Administration Labor Labor Department See Employment and Training Administration See Employment Standards Administration See Mine Safety and Health Administration NOTICES Grants and cooperative agreements; availability, etc.: Morocco, Uganda, Dominican Republic, and Philippines; combating child labor through education, 15231-15241 03-7482 Mine Mine Safety and Health Administration NOTICES Safety standard petitions:

Snyder Coal Co. et al., 15244-15246 03-7395 NASA National Aeronautics and Space Administration NOTICES Federal Acquisition Regulation (FAR): Agency information collection activities; proposals, submissions, and approvals, 15155-15156 03-7473 NIH National Institutes of Health NOTICES Environmental statements; notice of intent: Fort Detrick, Frederick, MD; Integrated Research Facility, 15210 03-7404 Meetings: Director's Council of Public Representatives, 15210-15211 03-7407 National Center for Research Resources, 15211 03-7410 National Institute of Allergy and Infectious Diseases, 15212 03-7409 National Institute of Mental Health, 15211-15212 03-7405 03-7406 National Institute of Nursing Research, 15212 03-7411 Scientific Review Center, 15212-15215 03-7408 03-7412 NOAA National Oceanic and Atmospheric Administration RULES Endangered Species Act:

Evaluation of conservation efforts when making listing decisions; policy, 15100-15115 03-7364 Fishery conservation and management: Alaska; fisheries of Exclusive Economic Zone— Pollock, 15115-15116 03-7514 PROPOSED RULES Fishery conservation and management: Alaska; fisheries of Exclusive Economic Zone— Rock sole and yellowfin sole, 15144-15145 03-7516 NOTICES Coastal zone management programs and estuarine sancturaries: Consistency appeals— Islander East Pipeline Co.; correction, 15266 C3-7016 Endangered and threatened species:

Anadromous fish take— Marion County, OR; Routine Road Maintenance Program submission; salmon and steelhead, 15153-15154 03-7515 National Science National Science Foundation NOTICES Meetings: Biological Sciences Advisory Committee, 15246 03-7512 National Telecommunications National Telecommunications and Information Administration NOTICES Grants and cooperative agreements; availability, etc.: Public Telecommunications Facilities Program, 15154 03-7522 Nuclear Nuclear Regulatory Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 15246 03-7487 Environmental statements; availability, etc.:

Novartis Pharmaceuticals Corp., 15247-15249 03-7488 *Applications, hearings, determinations, etc.:* Virginia Electric & Power Co., 15246-15247 03-7486 Patent Patent and Trademark Office PROPOSED RULES Trademarks: Madrid Protocol Implementation Act; rules of practice— International applications and registrations; trademark-related filings, 15119-15138 03-7392 Postal Postal Service RULES Domestic Mail Manual: Bound printed matter; flat-size mail co-packaging and co-sacking, 15055-15059 03-7337 Presidential Presidential Documents EXECUTIVE ORDERS Government agencies and employees:

Classified national security information; further amendment (EO 13292), 15313-15334 03-7736 ADMINISTRATIVE ORDERS Migration and Refugee Assistance Act of 1962; availability of funds (Presidential Determination No. 2003-17 of March 20, 2003), 15043 03-7650 Public Public Debt Bureau See Fiscal Service Rural Rural Housing Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 15148 03-7393 RUS Rural Utilities Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 15148-15150 03-7402 03-7403 SEC Securities and Exchange Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 15249 03-7396 Meetings;

Sunshine Act, 15249-15250 03-7569 Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC, 15250-15252 03-7401 Chicago Board Options Exchange, Inc., 15252-15256 03-7398 03-7399 International Securities Exchange, Inc., 15256-15257 03-7397 Pacific Exchange, Inc., 15257-15258 03-7400 SBA Small Business Administration RULES Small business size standards: Petroleum refiners, 15047-15050 03-7677 NOTICES Disaster loan areas: Ohio, 15258-15259 03-7461 Tennessee, 15259 03-7460 State State Department NOTICES Art objects; importation for exhibition:

Whistler, Women, and Fashion, 15259 03-7490 Substance Substance Abuse and Mental Health Services Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 15215-15216 03-7458 Surface Surface Transportation Board NOTICES Rail carriers: Non-Class I railroads; calculation of variable costs in rate complaint proceedings, 15263 03-7334 Railroad operation, acquisition, construction, etc.: Burlington Northern & Santa Fe Railway Co., 15263 03-7521 Sunflower Rail Co., LLC, 15263-15264 03-7519 Textile Textile Agreements Implementation Committee See Committee for the Implementation of Textile Agreements Transportation Transportation Department See Federal Aviation Administration See Surface Transportation Board Treasury Treasury Department See Alcohol and Tobacco Tax and Trade Bureau See Fiscal Service See Internal Revenue Service Separate Parts In This Issue Part II Health and Human Services Department, Centers for Medicare & Medicaid Services, 15267-15312 03-7236 Part III Executive Office of the President, Presidential Documents, 15313-15334 03-7736 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 68 60 Friday, March 28, 2003 Rules and Regulations FARM CREDIT ADMINISTRATION 12 CFR Part 615 RIN 3052-AC14 Funding and Fiscal Affairs, Loan Policies and Operations, and Funding Operations; Capital Adequacy—ABS and MBS Investments AGENCY:

Farm Credit Administration. ACTION: Interim final rule with request for comments. SUMMARY: The Farm Credit Administration (FCA or agency) is issuing an interim final rule to amend our regulatory capital standards to allow Farm Credit System (FCS or System) institutions to use a lower risk weighting for highly rated investments in non-agency asset-backed securities

(ABS)and mortgage-backed securities

(MBS)that have reduced exposure to credit risk. We are adopting this rule so that the capital requirements for risk weighting of highly rated non-agency ABS and MBS investments will more closely reflect an institution's relative exposure to credit risk and help achieve a more consistent regulatory capital treatment with the other financial regulatory agencies. This interim rule will be effective until we take final action on planned further amendments to our capital regulations. DATES: This regulation will become effective 30 days after publication in the **Federal Register** during which either or both houses of Congress are in session. We will publish notice of the effective date in the **Federal Register** . Please send your comments to the FCA by April 28, 2003. ADDRESSES: Please send comments by electronic mail to “reg-comm@fca.gov” or through the Pending Regulations section of FCA's Web site, *http://www.fca.gov.* You may also send comments to Thomas G. McKenzie, Director, Regulation and Policy Division, Office of Policy and Analysis, Farm Credit Administration, 1501 Farm Credit Drive, McLean, Virginia 22102-5090 or by fax to

(703)734-5784. You may review copies of all comments at our office in McLean, Virginia. FOR FURTHER INFORMATION CONTACT: Laurie A. Rea, Senior Policy Analyst, Office of Policy and Analysis, Farm Credit Administration, McLean, VA 22102-5090,

(703)883-4498; TTY

(703)883-4434; or Jennifer A. Cohn, Senior Attorney, Office of General Counsel, Farm Credit Administration, McLean, VA 22102-5090,

(703)883-4020, TTY

(703)883-2020. SUPPLEMENTARY INFORMATION: I. Objectives The objectives of our interim final rule are to: • Ensure FCS institutions maintain capital levels commensurate with their relative exposure to credit risk by allowing them to use a lower risk weighting for highly rated non-agency 1 ABS and MBS investments that have reduced exposure to credit risk; 1 Non-agency securities are securities not issued or guaranteed by the United States Government, a Government agency (as defined in § 615.5201(f)), or a Government-sponsored agency (as defined in § 615.5201(g)). • Help achieve a more consistent regulatory capital treatment with the other financial regulatory agencies; 2 2 We refer collectively to the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision as the “other financial regulatory agencies.” • Allow FCS institutions' capital to be used more efficiently in serving agriculture and rural America and support of other System mission activities; and • Reduce regulatory burden on FCS institutions. II. Background Section 615.5210 specifies the risk weightings that FCS institutions must use to calculate capital ratios for meeting our minimum risk-based capital standards. This regulation requires institutions to risk-weight their investments in non-agency ABS and MBS (including commercial MBS) as follows: Investment type Current risk weighting (Percent) Non-agency ABS and MBS with maturities under 1 year 50 Non-agency ABS and MBS with maturities of 1 year or more 100 Section 615.5140 permits System institutions to invest in non-agency ABS and MBS only if these securities are rated in the highest credit rating by a nationally recognized statistical rating organization (NRSRO), 3 are marketable, 4 and satisfy certain other requirements. 3 Section 615.5131 defines NRSRO as a rating organization that the Securities and Exchange Commission recognizes as an NRSRO. 4 Section 615.5140(c) provides that an investment is marketable if you can sell it quickly at a price that closely reflects its fair value in an active and universally recognized secondary market. In November 2001, the other financial regulatory agencies adopted amendments to their regulatory capital standards that, among other changes, allow banking organizations 5 to apply a lower risk weighting to certain transactions that have reduced exposure to credit risk (including highly rated non-agency ABS and MBS investments). 6 These changes were implemented so that the capital requirements would more closely reflect a banking organization's relative exposure to credit risk and help achieve a consistent regulatory capital treatment among the financial regulatory agencies for transactions involving similar risk. The changes were effective for banking organization transactions settled after January 1, 2002. 5 We refer collectively to commercial banks, bank holding companies, and thrifts as “banking organizations.” 6 *See* 66 FR 59614, November 29, 2001. In a letter dated August 26, 2002, the Farm Credit Council (Council), on behalf of the FCS banks, asked the FCA to allow FCS banks to apply a lower risk weighting for capital computation purposes to investments in non-agency ABS and MBS that satisfy our criteria for eligible investments. The Council specifically asked the FCA to allow the banks to apply a 20-percent risk weighting to these investments. Since fiscal year 2001, the FCA Board's regulatory plan has included a rulemaking project that would address many of the changes implemented by the other financial regulatory agencies, to the extent appropriate for System institutions. In the interim, the FCA Board has decided to allow FCS institutions to apply the risk-based capital treatment adopted by the other financial regulatory agencies to non-agency ABS and MBS investments the institutions are authorized to purchase and hold under § 615.5140. Accordingly, upon the effective date of this interim final rule, FCS institutions will be authorized to apply a 20-percent risk-weight to highly rated non-agency ABS and MBS investments. In formulating regulations, we strive continually to maintain approaches consistent with the other financial regulatory agencies. We have indicated in previous rulemakings that we intend to make our risk-based capital requirements generally consistent with the requirements of the other financial regulatory agencies, to the extent appropriate to the System institutions. Lowering the capital requirements on high quality investments would increase the lending capacity of FCS institutions by freeing up capital. The additional lending capacity could be used to serve agriculture and rural America and support other mission activities of the System. In general, the FCA believes that allowing FCS institutions to apply a 20-percent risk weighting for non-agency ABS and MBS in which the institutions are authorized to invest would not adversely affect the risk-absorbing capacity or overall capitalization of the institutions. To apply the 20-percent risk-weighting treatment, the non-agency ABS and MBS investments must be eligible investments in accordance with § 615.5140. Under § 615.5140, a non-agency ABS or MBS investment is eligible only if it satisfies the following requirements, among others. It must: • Satisfy the criteria specified for its asset class; • Be marketable ( *i.e.* , it must be able to be sold quickly at a price that closely reflects its fair value in an active and universally recognized secondary market); and • Be rated at the highest credit rating by an NRSRO. Investments that become “ineligible” investments under § 615.5140 must be immediately assigned to the 100-percent risk-weight category and disposed of in accordance with § 615.5143. Lastly, FCS institutions' application of the 20-percent risk weighting to eligible non-agency ABS and MBS will be subject to the FCA Board's further consideration and approval of a final rule that would amend the current risk-weighting requirements of our capital regulations or other action. III. Section Analysis In the section analysis below, we explain our amendments to the current capital regulations. Section 615.5210(f)(2)(ii)(L)—New Item Added to the 20-Percent Risk-weight Category We add a new paragraph

(L)to the 20-percent risk-weighting category in § 615.5210(f)(2)(ii) for non-agency ABS and MBS investments. We emphasize that the investment must meet the eligibility requirements of § 615.5140 of our investment regulations to be included in the 20-percent risk-weighting category. As mentioned previously, under § 615.5140, a non-agency ABS or MBS investment must receive the highest credit rating by an NRSRO and must be marketable ( *i.e.* , may be able to be quickly sold at a price that closely reflects its fair value in an active and universally recognized secondary market). IV. Administrative Procedure Act Pursuant to 5 U.S.C. 553(b), we find good cause exists for waiving the notice of proposed rulemaking as to this interim final rule because the notice is impracticable, unnecessary, and contrary to the public interest. The other financial regulatory agencies recently adopted extensive amendments to their regulatory capital standards governing banking organizations so these standards would more closely reflect a banking organization's relative exposure to credit risk. Those amendments, among others, include lowering to 20 percent the risk weighting for highly rated non-agency ABS and MBS investments, which have reduced exposure to credit risk. The changes were effective for transactions settled after January 1, 2002. In addition, as discussed previously, since fiscal year 2001 the FCA Board's regulatory plan has included a rulemaking project that would address many of the changes implemented by the other financial regulatory agencies and, to the extent appropriate for System institutions, make our risk-based capital requirements generally consistent with the other agencies' requirements. In the interim, we believe good cause exists to allow FCS institutions to risk-weight non-agency ABS and MBS investments at 20 percent. As the other financial regulatory agencies have concluded, these investments have reduced exposure to credit risk. It is appropriate to have consistent regulatory capital treatment for transactions involving similar risk among lenders. Finally, lowering the capital requirements on high quality investments would increase the lending capacity of FCS institutions by freeing up capital. The additional lending capacity can be used to serve agriculture and rural America and support other mission activities. Accordingly, because this change is narrow and non-controversial, will relieve a regulatory burden, and will immediately further the mission of the System, we find that pre-promulgation comment is impracticable, unnecessary, and contrary to the public interest. We are issuing these regulations with a request for comments and will consider all comments received (in response to both this request and to our future notice of proposed rulemaking) when adopting the regulations in final form. V. Regulatory Flexibility Act Pursuant to section 605(b) of the Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ), the FCA hereby certifies that the proposed rule will not have a significant economic impact on a substantial number of small entities. Each of the banks in the System, considered together with its affiliated associations, has assets and annual income in excess of the amounts that would qualify them as small entities. Therefore, System institutions are not “small entities” as defined in the Regulatory Flexibility Act. List of Subjects in 12 CFR Part 615 Accounting, Agriculture, Banks, banking, Government securities, Investments, Rural areas. For the reasons stated in the preamble, we propose to amend part 615 of chapter VI, title 12 of the Code of Federal Regulations as follows: PART 615—FUNDING AND FISCAL AFFAIRS, LOAN POLICIES AND OPERATIONS, AND FUNDING OPERATIONS 1. The authority citation for part 615 continues 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, 8.3, 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. Subpart H—Capital Adequacy 2. Add new paragraph (f)(2)(ii)(L) to § 615.5210 to read as follows: § 615.5210 Computation of the permanent capital ratio.

(f)* * *

(2)* * *

(ii)* * *

(L)Asset- or mortgage-backed securities (not issued or guaranteed by the United States Government, a Government agency, or a Government-sponsored agency). Dated: March 24, 2003. Jeanette C. Brinkley, Secretary, Farm Credit Administration Board. [FR Doc. 03-7387 Filed 3-27-03; 8:45 am]

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