2See title XI, section 1118, 12 U.S.C. §3347.

under which the ASC has been operating since its inception. They describe, among other things, the organization of ASC meetings, notice requirements for meetings, quorum requirements, and certain

practices regarding the disclosure of information.

The Subcommittee Resolution delegates authority from the ASC to its Chairman regarding matters of internal administration, including prescribing a system of administrative control of funds and reallocating budgetary resources within certain limits.

The ASC believes that the Rules of Operation and the Resolution should facilitate the ASC's and its staffs efforts in implementing, administering and

enforcing title XI.

EFFECTIVE DATE: June 14, 1991.

Edwin W. Baker, Executive Director, or Marc L. Weinberg, General Counsel; Appraisal Subcommittee, Federal Financial Institutions Examination Council; 1776 G Street, NW; suite 850B, Washington, DC 20006; (202) 357-0133.

Dated: June 14,1991.

Fred D. Finke, Chairman, Appraisal Subcommittee, Federal Financial Institutions Examination Council.

Section 1.01. Appraisal Subcommittee described. The Appraisal Subcommittee, hereinafter referred to as the Subcommittee, is established by title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Pub. L 101-73, 103 Stat. 511 (1989); 12 U.S.C. 3310, 3331-3351), hereinafter referred to as the Act.

Section 1.02. Functions. The functions of the Subcommittee are set forth in section 1103 of the Act (12 U.S.C. 3332).

Section 1.03. Definitions. The words and phrases used herein shall, where applicable, have the definitions set forth in section 1121 of the Act (12 U.S.C. 3350).

Section 1.04. Authority. Except as otherwise provided in the Act, all authority for carrying out the functions of the Subcommittee shall reside in the Subcommittee; however, the Subcommittee may delegate any of its authority as it from time to time deems appropriate to Subcommittee members, officers, or employees or as otherwise authorized by law. As provided in section 1105 of the Act (l2 U.S.C. 3334), the Chairperson of the Subcommittee shall have authority to appoint such officers and staff as may be necessary to carry out the functions of the Subcommittee.

Section 2.01. Assessments. In accordance with section 1109 of the Act (12 U.S.C. 3338), the Subcommittee shall have the authority to receive an annual fee from each State licensed or certified appraiser eligible to do appraisals

in federally related transactions. Any increase in the initial fee, which shall be not more than $25 per annum, is subject to the approval of the Federal Financial Institutions Examination Council (the Council). The statutory maximum fee is $50 per annum.

Section 3.01. Members. The members of the Subcommittee shall be those persons described in section 1102 of the Act (12 U.S.C. 3310) and, pursuant to 12 U.S.C. 1708(e)(2), the Secretary (or designee) of the Department of Housing and Urban Development.

Section 3.02. General Powers. The affairs, business and property of the Subcommittee shall be managed by the Chairperson of the Subcommittee pursuant to the Subcommittee’s direction and the Subcommittee's powers shall include those set forth in section 1106 of the Act (12 U.S.C 3335).

Section 3.03. Compensation and Expenses of Members. Each member shall serve on the Subcommittee without compensation other than that received from their respective employing Federal agency; but each member shall be entitled to an advance or reimbursement for reasonable expenses in carrying out their official duties as a member. Such advance or reimbursement shall be made only upon written request accompanied by adequate documentation of such expenses.

Section 3.04. Chairperson of the Subcommittee. (a) The Council shall elect a Chairperson of the Subcommittee. The term of office of the Chairperson shall be for a two (2) year term. Section 1104(a)(12 U.S.C. 3333(a)). The Chairperson shall carry out all duties required by the Act and these Rules and shall perform such other duties as from time to time may be assigned by the Subcommittee.

(b) The Subcommittee shall designate from time to time one of its members to act on behalf of the Subcommittee in the absence or incapacity of the Chairperson. The Subcommittee expects that the member designated will be the member whose agency follows that of the Chairperson in the listing in section 1121(6) the Act (12 U.S.C. 3350(6)).

Section 3.05. Member Vacating Position in Respective Federal Financial Institutions Regulatory Agency. A person shall remain a member of the Subcommittee until (a) that person resigns, (b) is no longer employed by the

designating agency, or (c) the agency head designates a replacement. If the vacating member is Chairperson of the Subcommittee, a succeeding Chairperson shall be selected by the Council under section 1104(a) of the Act (12 U.S.C. 3333(a)).

Section 3.06. Organization of Subcommittee Meetings. (a) The Chairperson of the Subcommittee shall preside at Subcommittee meetings. In his or her absence, whether or not he or she has designated another to attend the meeting pursuant to section 3.11 of these Rules, the member designated under section 3.04(b) shall preside at such Subcommittee meeting.

(b) The Secretary, or in the absence of the Secretary, any person designated by the Chairperson, shall draft and transmit the minutes of the meeting to each member. The Executive Director is appointed to serve as Secretary, and shall be responsible for recording the minutes, including the full text of each resolution voted on by the Subcommittee and the substance of each action voted on by the Subcommittee as well as the vote. The Secretary will also be responsible for certifying or attesting to true copies, minutes, or other documents stating that actions were in fact taken by the Subcommittee. The Secretary will also be responsible for maintaining and preserving at a single place, available for inspection at reasonable times by any member of the Subcommittee or any person designated by any member, the complete minutes of the proceedings of the Subcommittee. The Executive Director may delegate the ministerial duties of Secretary to Subcommittee staff.

(c) Regular meetings of the Subcommittee shall be held in Washington, DC, at a location designated by the Chairperson, or in such other place as the Subcommittee may designate. Special meetings shall be held in such place and at such location as designated by the calling party or parties.

(d) Regular meetings of the Subcommittee shall be held at least monthly at the call of the Chairperson. Special meetings shall be held as provided in section 3.07(b) below.

Section 3.07. Notice of Meetings. (a) The Secretary shall send a notice of each regular meeting to each Subcommittee member at least five (5) days prior to the date the regular meeting is to be held, or shall cause such notice to be delivered by hand at least five (5) days prior to the date of the regular meeting is to be held. Delivery by facsimile will be considered the equivalent of hand delivery. Every regular meeting notice shall specify at least the place, date, and hour of the meeting.

(b) The Chairperson or any four (4) or more members may call a special meeting by giving one business day oral, written or facsimile notice to each member and the Secretary. Said notice shall inform the members at least of the place, date and hour of the meeting and of the nature of the business to be conducted at the meeting.

(c) A waiver of any meeting notice signed by a member shall be the equivalent of timely giving to and receipt by that member of notice. A member's attendance at any meeting shall constitute waiver of notice of that meeting unless the member attends solely for the purpose of objecting to the transaction of any business because the meeting was not lawfully called or convened.

Section 3.08. Quorum, Manner of Acting and Adjournment.(a) At any regular or special meeting, the presence of a majority of the members of the Subcommittee shall constitute a quorum for the transaction of business. For the purpose of the preceding sentence. an alternate will count only if he/she has been so designated in writing by the head of the respective agency. The acts voted by a majority of its members present at such meeting shall be the acts of the Subcommittee. A member who is present at a meeting but who abstains from voting on any matter shall be counted for purposes of determining whether a quorum is present, whether that member withdraws from or remains in the meeting during such vote. A majority of the members present at any meeting, whether or not there is a quorum present, may adjourn the meeting. In transacting the business of the Subcommittee, each member be entitled to only one vote.

(b) No item shall be voted upon by the Subcommittee except (1) where notice that the item will be on the agenda of a regular meeting has been given pursuant to section 3.09(a) of these Rules, (2) where written notice that the item will

be on the agenda of any meeting is delivered to each member at least two (2) full business days prior to the date of such meeting, or (3) upon the unanimous consent of all members of the Subcommittee.

Section 3.09. Agenda of Subcommittee Meetings. (a) The agenda for meetings shall be determined by the Chairperson in consultation with the Secretary, or where appropriate by the four (4) or more members calling the meeting; provided that the Chairperson shall include any item on the agenda when he/she receives a request in writing from any single member at least three (3) full business days prior to the date of the meeting.

(b) Any member may request during any regular or special meeting that an item be placed on the agenda of that meeting. The item shall be placed on the agenda for discussion but only if a majority of those present approve the request.

Section 3.10. Certain Interest of the Members. No person serving as an officer or employee of the Subcommittee shall be deemed to have an interest adverse to the interest of the Subcommittee solely because that person is employed by a Federal agency and assigned to the Subcommittee. No Subcommittee member shall be required to abstain from voting on any matter solely because the Federal agency employing that member is or will be affected. No act of the Subcommittee shall be subject to challenge nor in any way be affected by participation of said member in such vote.

Section 3.11. Proxies. A Subcommittee member may from time to time designate an alternate from his or her agency to carry out the member's duties on the Subcommittee. Such alternate may act in all matters as member of the Subcommittee, except that he/she may not act as the presiding officer of a Subcommittee meeting or vote unless so authorized in writing by the agency head.

Section 3.12. Use of Conference Call Communications Equipment. Any or all members of the Subcommittee may participate in a meeting through the use of conference call telephone or similar communications equipment, by means of which all persons participating in the meeting can simultaneously speak and hear each other. Any member so participating in the meeting shall be deemed to be present for all purposes. Actions taken by the Subcommittee at meetings where one or more members participate through the use of such equipment, including the votes of each member, shall be recorded in the minutes of the meeting.

Section 3.13. Transaction of Business by Circulation of Written Items. Any other provision of these Rules to the contrary notwithstanding, business may be conducted by the Subcommittee by the circulation of written items to all members where all members participate in consideration of each written item - and where all members approve the action proposed. The refusal by any member to vote on any written item within a reasonable time, or in the alternative, a set time agreed to by a majority of all of the members, shall be considered a negative vote by that refusing member. The disposition of each written item circulated for vote, including the vote of each member, shall be recorded in the minutes of the Subcommittee.

Section 4.01. Permanent Officers and Employees. (a) Except as otherwise specifically directed by the Subcommittee, its Chairperson shall have power to appoint and terminate such officers and employees as from time to time deemed necessary to carry out the Subcommittee's mission. Position descriptions will be written for all permanent personnel employed by the Subcommittee. Procedures relative to the appointment, termination, and compensation practices of the

Subcommittee shall be consistent with the appointment and compensation practices of the Council or in accord with the policies set forth in Title 5, United States Code and applicable OPM rules and regulations.

(b) The Subcommittee may adopt from time to time such rules or regulations governing the conduct of officers and employees as it deems appropriate.

Section 4.02. Officers and Employees Detailed From Federal Agencies. Any person in the employ of any Federal agency detailed to the Subcommittee shall be considered an officer or employee of the Subcommittee. Such persons shall be assigned to and serve the Subcommittee for a designated, but renewable, period of time and salaries and benefits received by such officers or employees shall be paid to them by the agency from which that officer or employee is assigned. All salaries and benefits received by such officers and employees shall be reimbursed by the Subcommittee to detailee's home agency. Each Federal agency will apply its own rules, regulations, and policies to the circumstances under which officers or employees assigned to the Subcommittee may resume their duties at that agency upon termination of assignment to the Subcommittee.

Section 5.01. Fiscal Year. The Subcommittee budget shall be prepared on the basis of a fiscal year ending on September 30th.

Section 6.01. Amendments. Unless specifically stated herein, any of these Rules may be altered, amended or repealed, or new Rules may be adopted at any meeting, regular or special, of the Subcommittee by the affirmative act of a majority of all members of the Subcommittee, so long as such action is consistent with the requirements of applicable law. Amendments to these Rules shall not be given retroactive effect.

Section 7.01. Disclosure of Information. All matters pertaining to the disclosure of information by the Subcommittee shall be governed by applicable law and such resolutions, orders, rules and regulations that may be adopted by the Subcommittee.

Section 7.02. Public Statements and Statements to the Press. No written statements shall be made to the press expressing the Subcommittee's policy or descriptive of its action except as authorized pursuant to the procedures to be adopted by the Subcommittee. Such statements shall be issued, when authorized and approved, through the office of the Executive Director as delegated by the Chairperson. Where an individual member is responding on issues before the Subcommittee, that member should use best efforts to alert other members and the Secretary concerning the substance of the response as soon as possible.

Section 7.03. Disclaimer. Except when otherwise authorized by the Subcommittee, individual members, officers and employees shall include in written statements and oral presentations the following disclaimer of responsibility:

The Appraisal Subcommittee, as a matter of policy, disclaims responsibility for any private publication or statement by any of its members, officers, or employees. The views expressed herein are those of the author and do not necessarily reflect the views of the Subcommittee.

The wording of the disclaimer may vary with the circumstances so long as its substance is clearly communicated.

Any written statement or oral presentation which reflects Subcommittee positions must set forth those positions accurately and, if it contains differences with Subcommittee positions, it should clearly state that such positions are solely those of the author.

Section 8.01. Appointment of an Advisory Group. Subject to the Federal Advisory Committee Act (5 U.S.C. App. 1-14) and to such procedures as it may from time to time adopt, the Subcommittee may establish nonvoting advisory group(s). Such advisory group(s) shall meet with the Subcommittee on a schedule determined by the Subcommittee. Members of the advisory group(s)may receive from the Subcommittee an allowance, in an amount to be determined by the Subcommittee, for necessary expenses incurred in attending such meetings.

Section 9.01. Service of Administrative Support. (a) To insure that the orderly administration of the affairs of the Subcommittee is accomplished, administrative support functions shall be provided by the permanent staff of the Subcommittee with assistance, when needed, from staff of the Federal agencies that are members of the Subcommittee.

(b) The Chairperson shall have the authority to negotiate and execute agreements regarding personnel, payroll, grant administration, procurement, and other services, consistent with directives of the Subcommittee. In executing this authority, the Chairperson shall be authorized to obtain such administrative support services as he/she deems necessary.

Section 10.01. Annual Report to Congress. In accordance with section 1103 of the Act (12 U.S.C. 3332). the Subcommittee shall prepare an annual report to the Congress not later than January 31 of each year. The report will cover the activities of the Subcommittee during the preceding year.

Section 10.02. Preparation of Reports. The Executive Director or other party as designated by the Subcommittee is authorized and directed to cause to be prepared in a timely fashion, for review and approval by the Subcommittee, the annual report and such other documents concerning the activities or decisions or recommendations of the Subcommittee as is required by law or requested by the Congress or any other party.

Section 11.01. Ethics Provision. The members of the Subcommittee and its officers and employees shall be required to abide by a code of ethics, consistent with applicable law, that will be formulated and adopted by the

Subcommittee.

Whereas, The responsibilities of the Chairperson of the Appraisal Subcommittee of the Federal Financial Institutions Examination Council include the internal administration of the Appraisal Subcommittee:

Now, therefore, be it resolved, That the Chairperson is hereby delegated the administrative responsibilities set forth below.

The Chairperson.

(1) Prescribes a system of administrative control of funds.

(2) Approves and/or delegates the approval of the distribution of budgetary resources in the form of a Budget Execution Plan and may reallocate resources among object classes so long as: (a) Aggregate obligations do not exceed the annual budget approved by the Subcommittee; (b) no single reallocation action exceeds $100,000 without the consent of the Subcommittee; and (c) every reallocation action of $100,000 or less shall be reported to the Subcommittee at the Subcommittee meeting following the reallocation action.

(3) Delegates authority for the issuance of allotments and the incurrence of obligations.

The Chairperson is delegated authority, subject to the Rules of Operation, concerning personnel actions, including the appointment, promotion, and removal of personnel, other than officers, employed by the Subcommittee.

The Chairperson is delegated authority over all other matters of internal administration not listed above unless such authority is specifically retained by the Subcommittee or specifically delegated to another party.

Finally, the Chairperson is authorized to delegate to members, officers, or employees of the Subcommittee, as the Chairperson may deem necessary, any of the above authorities delegated to the Chairperson with the exception of the authority to supervise the position of Executive Director.

Be it further resolved, That the Chairperson shall perform duties under this authority only when serving as the Subcommittee's Chairperson. In other instances, (i.e., serving as the Subcommittee's member) the interest of his/her home agency is represented. The Subcommittee may act in any matter delegated herein upon its own motion or at the request of the Chairperson.

[FR Doc. 91-14860 Filed 6-20-91; 8:45 am]

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