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The Federal Home Loan Bank Directors regulation (12 CFR part 1261) requires that each Federal Home Loan Bank: (1) hold at least six in-person” board meetings each year; and (2) establish a compensation policy for its directors which, among other things, must require that the compensation of individual directors be reduced as necessary to reflect lesser attendance or performance at board or committee meetings by those directors during the course of the year.  The regulation governing the Office of Finance (12 CFR part 1273) includes similar requirements for the Office of Finance and its board of directors. This proposed rule would amend both regulations to clarify what constitutes an in-person” board meeting and possibly revise or clarify the related requirements to reflect the greater prevalence of remote work in the wake of the COVID-19 pandemic.  The proposed rule would also make various other minor technical and clarifying changes to the regulations.

The Agency's inclusion of this rule is based partially on requests from the Federal Home Loan Banks and their boards of directors.