Federal Register: RULES [12 CFR Parts 506, 550, 560, 563, 563g, and 575]

DEPARTMENT OF THE TREASURY

CFR Citation: 12 CFR Parts 506, 550, 560, 563, 563g, and 575

DOCUMENT ID: [No. 2003-68]

NOTICE: RULES

DOCUMENT ACTION: Final rule.

SUBJECT CATEGORY: Technical Amendments

EFFECTIVE DATES: December 30, 2003.

DOCUMENT SUMMARY: The Office of Thrift Supervision (OTS) is amending its regulations to incorporate a number of technical and conforming amendments. They include clarifications, updated statutory and other references, and corrections of typographical errors.

SUMMARY: Technical amendments,

SUPPLEMENTAL INFORMATION

OTS is amending its regulations to incorporate a number of technical and conforming amendments. OTS is making the following miscellaneous changes:
[sbull] Part 506Information Collection Requirements under the Paperwork Reduction Act (PRA). The final rule updates the table displaying the OMB control numbers assigned to various OTS regulations under the PRA by adding and amending references to a control number. See 12 CFR 506.1(b).
[sbull] Part 550Fiduciary Powers of Savings Associations. The final rule corrects typographical errors in the chart in Sec. 550.70. [sbull] Part 560Lending and Investment. The final rule corrects a typographical error in Sec. 560.30.
[sbull] Part 563Savings AssociationsOperations. The final rule adds a regulatory reference to Sec. 563.41(b) and deletes a citation to an outdated regulation in Sec. 563.180(c).
[sbull] Parts 563gSecurities Offerings. The final rule updates a reference to an OTS Office and revises citations in Sec. Sec. 563g.1(a)(6), (a)(9) and (a)(10), and 563g.5.
[sbull] Part 575Mutual Holding Companies. The final rule corrects a typographical error in Sec. 575.7.
Administrative Procedure Act; Riegle Community Development and Regulatory Improvement Act of 1994

OTS finds that there is good cause to dispense with prior notice and comment on this final rule and with the 30day delay of effective date mandated by the Administrative Procedure Act.\1\ OTS believes that these procedures are unnecessary and contrary to public interest because the rule merely corrects and clarifies existing provisions. Because the amendments in the rule are not substantive, these changes will not detrimentally affect savings associations.

\1\ 5 U.S.C. 553.

Section 302 of the Riegle Community Development and Regulatory Improvement Act of 1994 provides that regulations that impose additional reporting, disclosure, or other new requirements may not take effect before the first day of the quarter following
publication.\2\ This section does not apply because this final rule imposes no additional requirements and makes only technical changes to existing regulations.
\2\ Pub. L. No. 103325, 12 U.S.C. 4802.

Regulatory Flexibility Act

Pursuant to section 605(b) of the Regulatory Flexibility Act,\3\ the OTS Director certifies that this technical corrections regulation will not have a significant economic impact on a substantial number of small entities.
\3\ Pub. L. No. 96354, 5 U.S.C. 601.

Executive Order 12866

OTS has determined that this rule is not a ``significant regulatory action'' for purposes of Executive Order 12866.

Unfunded Mandates Reform Act of 1995

OTS has determined that the requirements of this final rule will not result in expenditures by State, local, and tribal governments, or by the private sector, of $100 million or more in any one year. Accordingly, a budgetary impact statement is not required under section 202 of the Unfunded Mandates Reform Act of 1995.
List of Subjects
12 CFR Part 506

Reporting and recordkeeping requirements.
12 CFR Part 550

Savings associations, Trusts and trustees.

12 CFR Part 560

Consumer protection, Investments, Manufactured homes, Mortgages, Reporting and recordkeeping requirements, Savings associations, Securities.
[[Page 75109]]

12 CFR Part 563

Accounting, Advertising, Crime, Currency, Investments, Reporting and recordkeeping requirements, Savings associations, Securities, Surety bonds.

12 CFR Part 563g

Reporting and recordkeeping requirements, Savings associations, Securities.

12 CFR Part 575

Administrative practice and procedure, Capital, Holding companies, Reporting and recordkeeping requirements, Savings associations, Securities.
Accordingly, the Office of Thrift Supervision amends title 12, chapter V of the Code of Federal Regulations, as set forth below.
PART 506INFORMATION COLLECTION REQUIREMENTS UNDER THE PAPERWORK REDUCTION ACT
1. The authority citation for part 506 continues to read as follows:

Authority: 44 U.S.C. 3501 et seq.
2. Amend the table in Sec. 506.1(b) by:
a. Revising the entries for Sec. Sec. 563.22 and 563.81; and b. Removing the entries for Sec. Sec. 552.6, 552.7, 563.80, 563b.4, and 563b.20 through 563b.32.
Sec. 506.1 OMB control numbers assigned pursuant to the Paperwork Reduction Act.
* * * * *
(b) Display.
12 CFR part or section where
identified and described Current OMB control No. * * * * * * *
563.22........................... 15500016, 15500025
* * * * * * *
563.81........................... 15500030
* * * * * * *
PART 550FIDUCIARY POWERS OF SAVINGS ASSOCIATIONS
3. The authority citation for part 550 continues to read as follows:

Authority: 12 U.S.C. 1462a, 1463, 1464.
4. Revise the table in Sec. 550.70 at paragraphs (b) and (d) to read as follows:
Sec. 550.70 Must I obtain OTS approval or file a notice before I exercise fiduciary powers?
* * * * *
If you will conduct . . . Then . . . * * * * * * *
(b) Fiduciary activities that are You must obtain prior approval materially different from the from OTS under Sec. Sec. activities that OTS has previously 550.80 through 550.120 before approved for you, including fiduciary you conduct the activities activities that OTS has previously
approved for you that you have not
exercised for at least five years.
* * * * * * *
(d) Activities that are ancillary to You do not have to obtain prior your fiduciary business. OTS approval or file a notice with OTS.
PART 560LENDING AND INVESTMENT
5. The authority citation for part 560 continues to read as follows:

Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 1701j3, 1828, 3803, 3806; 42 U.S.C. 4106.
6. Revise the fifth entry in the table in Sec. 560.30 to read as follows:
Sec. 560.30 General lending and investment powers of Federal savings associations.
* * * * *
Lending and Investment Powers Chart
Statutory investment limitations Category Statutory (Endnotes contain authorization \1\ applicable regulatory limitations) * * * * * * *
Community development loans and 5(c)(3)(A)........ 5% of total equity investments. assets, provided equity investments do not exceed 2% of total assets.\4\ * * * * * * *
Endnotes:
1. All references are to section 5 of the Home Owners' Loan Act (12 U.S.C. 1464) unless otherwise indicated.
* * * * * * *
4. The 2% of assets limitation is a sublimit for investments within the overall 5% of assets limitation on community development loans and investments. The qualitative standards for such loans and investments are set forth in HOLA section 5(c)(3)(A) (formerly 5(c)(3)(B), as explained in an opinion of the OTS Chief Counsel dated May 10, 1995 (available at http://www.ots.treas.gov)). [[Page 75110]]
* * * * *
PART 563SAVINGS ASSOCIATIONSOPERATIONS
7. The authority citation for part 563 continues to read as follows:

Authority: 12 U.S.C. 375b, 1462, 1462a, 1463, 1464, 1467a, 1468, 1817, 1820, 1828, 1831o, 3806; 42 U.S.C. 4106.
8. Revise the last sentence of the introductory paragraph of Sec. 563.41(b) to read as follows:
Sec. 563.41 Transactions with affiliates.
* * * * *
(b) * * * In addition, a savings association should read all references to ``the Board'' or ``appropriate federal banking agency'' to refer only to ``OTS,'' except for references at 12 CFR
223.2(a)(9)(iv), 223.3(h), 223.3(z), 223.14(c)(4), 223.43, and 223.55. * * * * *
Sec. 563.180 [Amended]
9. Amend Sec. 563.180(c) by removing the last sentence.
PART 563gSECURITIES OFFERINGS
10. The authority citation for part 563g continues to read as follows:

Authority: 12 U.S.C. 1462a, 1463, 1464; 15 U.S.C. 78c(b), 78l, 78m, 78n, 78p, 78w.
Sec. 563g.1 [Amended]
11. In Sec. 563g.1, amend paragraph (a)(6) by removing ``Corporate and Securities Division'' and by adding in lieu thereof ``Business Transactions Division'; amend paragraph (a)(9) by removing ``Sec. 563b.2(a)(27)'' and adding in lieu thereof ``Sec. 563b.25''; and amend paragraph (a)(10) by removing ``Sec. 563b.2(a)(29)'' and adding in lieu thereof ``Sec. 563b.25''.
Sec. 563g.5 [Amended]
12. Amend Sec. 563g.5(a) by removing the phrase ``Sec. 563b.8(e)(1), (e)(3), and (e)(4), (f) through (q), and (s)'' and adding in lieu thereof ``Sec. Sec. 563b.115(a), 563b.150(a)(6), 563b.155, 563b.180(b), and Form AC, General Instruction B''.
PART 575MUTUAL HOLDING COMPANIES
13. The authority citation for part 575 continues to read as follows:

Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 1828, 2901. Sec. 575.7 [Amended]
14. Amend Sec. 575.7 by removing ``12 CFR Form OC'' in paragraph (d)(6)(i) and by adding in lieu thereof ``Form OC''.

Dated: December 17, 2003.

By the Office of Thrift Supervision.
Richard M. Riccobono,
Deputy Director.
[FR Doc. 0331692 Filed 122903; 8:45 am]
BILLING CODE 672001P

FOR FURTHER INFORMATION CONTACT Marilyn K. Burton, Senior Paralegal (Regulations), (202) 9066467, or Karen A. Osterloh, Special Counsel, (202) 9066639, Regulations and Legislation Division, Chief Counsel's Office, Office of Thrift Supervision, 1700 G Street, NW., Washington, DC 20552.