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Federal Register / Vol. 86, No. 174 / Monday, September 13, 2021 / Rules and Regulations adding headings to main paragraphs and breaking out longer sentences into subparagraphs. No change to the current meaning of the rule text is intended by these formatting actions.
The final rule also adds a new paragraph d to capture a legal change in FCAs authority over institutionaffiliated parties. As is discussed earlier in this preamble at III.B.1a, FCAs enforcement authorities were enhanced to give FCA enforcement jurisdiction over institution-affiliated parties, which definition includes both agents and independent contractors of System institutions as well as any other person, as determined by the Farm Credit Administration by regulation or on a case-by-case basis who participates in the conduct of the affairs of a System institution. The final rule adds this statutory language to the regulations without elaboration or interpretation.
IV. Regulatory Flexibility Act and Major Rule Conclusion Pursuant to section 605b of the Regulatory Flexibility Act 5 U.S.C. 601
et seq., FCA hereby certifies that the final 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.
Under the provisions of the Congressional Review Act 5 U.S.C. 801
et seq., the Office of Management and Budgets Office of Information and Regulatory Affairs has determined that this final rule is not a major rule, as the term is defined at 5 U.S.C. 8042.
List of Subjects in 12 CFR Part 612
Agriculture, Banks, banking, Conflict of interests, Crime, Investigations, Rural areas.
For the reasons stated in the preamble, part 612 of chapter VI, title 12
of the Code of Federal Regulations is amended as follows:

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PART 612STANDARDS OF
CONDUCT AND REFERRAL OF
KNOWN OR SUSPECTED CRIMINAL
VIOLATIONS
1. The authority citation for part 612
is revised to read as follows:

Authority: Secs. 5.9, 5.17, 5.19, 5.31A of the Farm Credit Act of 1971, as amended, Act 12 U.S.C. 2243, 2252, 2254, 2267a;
Sec. 514 of Pub. L. 102552, 106 Stat. 4102.

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2. Subpart A, consisting of 661.2130 through 612.2270, is revised to read as follows:

Subpart AStandards of Conduct Sec.
612.2130 Definitions.
612.2135 Standards of conductcore principles.
612.2137 Elements of a Standards of Conduct Program.
612.2140 Reserved 612.2145 Disclosing and reporting conflicts of interest.
612.2150 Prohibited conduct.
612.2155612.2165 Reserved 612.2170 Standards of Conduct Official.
612.2180 Standards of conduct for agents.
612.2260612.2270 Reserved
Subpart AStandards of Conduct 612.2130

Definitions.

For purposes of this subpart, the following terms and definitions apply excepting that words like document, record, certify, report, sign, and write generally should be interpreted to permit their electronic equivalents:
Agent means any person, other than a director or employee of the institution, with the power to act for the institution either by contract or apparent authority and who currently either represents the System institution in contacts with third parties or provides professional or fiduciary services to the institution.
Code of Ethics means a written statement of the principles and values the System institution follows to establish a culture of ethical conduct for directors and employees, including, at a minimum, the core principles established under this subpart.
Conflicts of interest means a set of circumstances or appearance thereof where a person has a financial interest in a transaction, relationship, or activity that could or does actually affect or has the appearance of affecting that persons ability to perform official duties and responsibilities in a totally impartial manner and in the best interest of the institution when viewed from the perspective of a reasonable person with knowledge of the relevant facts.
Employee means any individual working on a part-time, full-time, or temporary basis by the System institution, including those identified as officers of the institution. Persons not maintained on the institutions payroll i.e., independent contractors are not employees for purposes of this subpart.
Entity means a corporation, company, association, firm, joint venture, partnership general or limited, trust business or otherwise or other business operation whether or not incorporated.

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Family means parents, spouses or civil union partners, children, siblings, uncles, aunts, nephews, nieces, grandparents, grandchildren, and the spouses of the foregoing, whether arising from biological, adoptive, marital, or other legal means e.g., stepparents, stepchildren, half-siblings, in-laws. The term also includes anyone residing in the household or who is a legal or financial dependent, regardless of any familial relationship.
Financial interest means an interest in an activity, transaction, property, or relationship with a person that involves receiving or providing something of monetary value or other present or deferred compensation.
Financially obligated with means having a legally enforceable joint obligation with, being financially obligated on behalf of contingently or otherwise, having an enforceable legal obligation secured by property owned by another person, or owning property that secures an enforceable legal obligation of another.
Material, when applied to a financial interest or transaction including a series of transactions viewed in the aggregate, means that the interest or transaction is of sufficient magnitude that a reasonable person with knowledge of the relevant facts would question the ability of the person who has the interest or is party to such transactions to perform the persons official duties objectively and impartially and in the best interest of the institution and its statutory purpose.
Mineral interest means any interest in minerals, oil, or gas, including but not limited to, any right derived directly or indirectly from a mineral, oil, or gas lease, deed, or royalty conveyance.
Officer means the chief executive officer, president, chief operating officer, vice president, secretary, treasurer, general counsel, chief financial officer, and chief credit officer of the System institution, and any person not so designated but who holds a similar position of authority.
Ordinary course of business, when applied to a transaction, means:
1 A transaction that is usual and customary in the business in question on terms that are not preferential; or 2 A transaction with a person who is in the business of offering the goods or services that are the subject of the transaction on terms that are not preferential.
Person means individual or entity including sole proprietorships.
Preferential means that the transaction is not on the same terms as those prevailing at the same time for comparable transactions for other
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