[Federal Register Volume 61, Number 92 (Friday, May 10, 1996)]
[Rules and Regulations]
[Pages 21362-21364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11454]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 25
[Docket No. 96-08]
RIN 1557-AB51
FEDERAL RESERVE SYSTEM
12 CFR Part 228
[Regulation BB; Docket No. R-0822]
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 345
RIN 3064-AB27
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Part 563e
[Docket No. 96-32]
RIN 1550-AA96
Community Reinvestment Act Regulations
AGENCIES: Office of the Comptroller of the Currency, Treasury (OCC);
Board of Governors of the Federal Reserve System (Board); Federal
Deposit Insurance Corporation (FDIC); Office of Thrift Supervision,
Treasury (OTS).
ACTION: Joint final rule; correcting amendment.
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SUMMARY: The OCC, Board, FDIC, and OTS (collectively, the agencies) are
correcting their joint final rule concerning the Community Reinvestment
Act (CRA), which was published on May 4, 1995, and amended by a
subsequent joint final rule published on December 20, 1995. This
document corrects a cross-reference to Small Business Administration
regulations, which were recently amended. This correcting amendment
makes no substantive change in the requirements of the current
regulations.
EFFECTIVE DATE: May 10, 1996.
FOR FURTHER INFORMATION CONTACT:
OCC: Bert A. Otto, Acting Deputy Comptroller for Compliance, (202)
874-5216; or Matthew Roberts, Director, Community and Consumer Law
Division, (202) 874-5750, Office of the Comptroller of the Currency,
250 E Street, SW., Washington, DC 20219.
BOARD: Glenn E. Loney, Associate Director, Division of Consumer and
Community Affairs, (202) 452-3585; Robert deV. Frierson, Assistant
General Counsel, Legal Division, (202) 452-3711; or Leonard N. Chanin,
Managing Counsel, Division of Consumer and Community Affairs, (202)
452-3667, Board of Governors of the Federal Reserve System, 20th Street
and Constitution Avenue, NW., Washington, DC 20551.
FDIC: Bobbie Jean Norris, Chief, Fair Lending Section, Division of
Compliance and Consumer Affairs, (202) 942-3090; Robert W. Mooney, Fair
Lending Specialist, Division of Compliance and Consumer Affairs, (202)
942-3092; or Ann Hume Loikow, Counsel, Regulation and Legislation
Section, Legal Division, (202) 898-3796, Federal Deposit Insurance
Corporation, 550 17th Street, NW., Washington, DC 20429.
OTS: Timothy R. Burniston, Director, Compliance Policy, (202) 906-
5629; Theresa A. Stark, Project Manager, Compliance Policy, (202) 906-
7054; or John Flannery, Attorney, Regulations and Legislation Division,
Chief Counsel's Office, (202) 906-7293, Office of Thrift Supervision,
1700 G Street, NW., Washington, DC 20552.
SUPPLEMENTARY INFORMATION:
Introduction
The agencies jointly are amending their regulations implementing
the CRA (12 U.S.C. 2901 et seq.). This joint final rule makes a
technical correction to the agencies' joint CRA regulations, 12 CFR
parts 25, 228, 345, and 563e. Those regulations establish the framework
and criteria by which the agencies assess an institution's record of
helping to meet the credit needs of its community, including low- and
moderate-income neighborhoods, consistent with safe and sound
operations, and provide that the agencies will take those assessments
into account in reviewing certain applications.
Background
Last year, the agencies revised their CRA regulations. They adopted
a joint final rule, which was published on May 4, 1995 (60 FR 22156).
The agencies published a correction and clarification to the joint
final rule on December 20, 1995 (60 FR 66048).
Need for Correction to the Final Rule
The agencies' joint final rule, as amended, defines ``community
development'' to mean activities that promote economic development by
financing businesses or farms that meet the size eligibility standards
of 13 CFR 121.802(a) (2) and (3). These size eligibility standards
refer to the Small Business Administration's size
[[Page 21363]]
limitations for Development Company and Small Business Investment
Company (SBIC) programs. See 60 FR 22159 (May 4, 1995) and 60 FR 66049
(Dec. 20, 1995).
On January 31, 1996, the Small Business Administration amended its
regulations. See 61 FR 3280. Effective March 1, 1996, the size
limitations for Development Company and SBIC programs are described at
13 CFR 121.301 (b) and (c). 61 FR 3294. Therefore, it is necessary to
amend the agencies' CRA regulations to reflect this change.
The agencies are amending their regulations to mention by name the
SBA's Development Company and SBIC programs, as well as to refer
readers to 13 CFR 121.301. The agencies believe that reference both to
the programs by name and to the SBA's regulation by section will more
clearly describe the size standards to which the agencies are referring
while continuing to direct interested parties to the size standards'
general location in the SBA's regulations.
The agencies find that notice and public procedure concerning this
correcting amendment are impracticable, unnecessary, and contrary to
the public interest under 5 U.S.C. 553(b)(B). The agencies make this
finding because these correcting amendments involve only technical
corrections to the agencies' CRA regulations and make no substantive
changes to the agencies' CRA regulations.
In addition, under 5 U.S.C. 553(d)(3), the agencies have determined
to make this correcting amendment effective with less than 30 days
prior publication. The agencies find that there is good cause for
shortened notice due to the minor nature of the changes. Furthermore,
the SBA's amended regulation became effective March 1, 1996 (61 FR
3280), thereby making the current cross-references in the agencies' CRA
regulations erroneous as of that date.
Regulatory Flexibility Act
Pursuant to section 605(b) of the Regulatory Flexibility Act, the
OCC, Board, FDIC, and OTS hereby certify that this joint final rule
will not have a significant economic impact on a substantial number of
small entities. The agencies expect that this joint final rule will not
have significant secondary or incidental effects on a substantial
number of small entities, or create any additional burden on small
entities. This joint final rule merely makes a technical correction to
a cross-reference in the rules already adopted by the agencies and will
not increase burden on institutions. Accordingly, a regulatory
flexibility analysis is not required.
Paperwork Reduction Act of 1995
There are no collection of information requirements in this joint
final rule.
Executive Order 12866
OCC and OTS: The OCC and the OTS have determined that this joint
final rule is not a significant regulatory action as defined in
Executive Order 12866.
Unfunded Mandates Reform Act of 1995
OCC and OTS: Section 202 of the Unfunded Mandates Reform Act of
1995, Pub. L. 104-4, 109 Stat. 48 (1995) (Unfunded Mandates Act),
requires that covered agencies prepare a budgetary impact statement
before promulgating a rule that includes any Federal mandate that may
result in the expenditure by State, local, and tribal governments, in
the aggregate, or by the private sector, of $100 million or more in any
one year. If a budgetary impact statement is required, section 205 of
the Unfunded Mandates Act also requires covered agencies to identify
and consider a reasonable number of regulatory alternatives before
promulgating a rule. As discussed in the preamble, this joint final
rule amends the agencies' CRA regulations by making one technical
correction. Therefore, the OCC and the OTS have determined that this
joint 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, the OCC and the OTS have not prepared a
budgetary impact statement or specifically addressed the regulatory
alternatives considered.
List of Subjects
12 CFR Part 25
Community development, Credit, Investments, National banks,
Reporting and recordkeeping requirements.
12 CFR Part 228
Banks, banking, Community development, Credit, Federal Reserve
System, Investments, Reporting and recordkeeping requirements.
12 CFR Part 345
Banks, banking, Community development, Credit, Investments,
Reporting and recordkeeping requirements.
12 CFR Part 563e
Community development, Credit, Investments, Reporting and
recordkeeping requirements, Savings associations.
Office of the Comptroller of the Currency
12 CFR CHAPTER I
For the reasons discussed in the joint preamble, 12 CFR part 25 is
amended as follows:
PART 25--[AMENDED]
1. The authority citation for part 25 continues to read as follows:
Authority: 12 U.S.C. 21, 22, 26, 27, 30, 36, 93a, 161, 215,
215a, 481, 1814, 1816, 1828(c), and 2901 through 2907.
Sec. 25.12 [Amended]
2. In Sec. 25.12(h)(3), the cross reference ``13 CFR 121.802(a)(2)
and (3)'' is revised to read ``the Small Business Administration's
Development Company or Small Business Investment Company programs (13
CFR 121.301)''.
Dated: April 2, 1996.
Eugene A. Ludwig,
Comptroller of the Currency.
Federal Reserve System
12 CFR CHAPTER II
For the reasons discussed in the joint preamble, 12 CFR part 228 is
amended as follows:
PART 228--[AMENDED]
1. The authority citation for part 228 continues to read as
follows:
Authority: 12 U.S.C. 321, 325, 1828(c), 1842, 1843, 1844, and
2901 et seq.
Sec. 228.12 [Amended]
2. In Sec. 228.12(h)(3), the cross reference ``13 CFR 121.802(a)
(2) and (3)'' is revised to read ``the Small Business Administration's
Development Company or Small Business Investment Company programs (13
CFR 121.301)''.
By order of the Board of Governors of the Federal Reserve
System, March 20, 1996.
William W. Wiles,
Secretary of the Board.
Federal Deposit Insurance Corporation
12 CFR CHAPTER III
For the reasons discussed in the joint preamble, 12 CFR part 345 is
amended as follows:
PART 345--[AMENDED]
1. The authority citation for part 345 continues to read as
follows:
Authority: 12 U.S.C. 1814-1817, 1819-1820, 1828, 1831u and 2901-
2907, 3103-3104, and 3108(a).
[[Page 21364]]
Sec. 345.12 [Amended]
2. In Sec. 345.12(h)(3), the cross reference ``13 CFR 121.802(a)
(2) and (3)'' is revised to read ``the Small Business Administration's
Development Company or Small Business Investment Company programs (13
CFR 121.301)''.
By order of the Board of Directors of the Federal Deposit
Insurance Corporation.
Dated: April 3, 1996.
Jerry L. Langley,
Executive Secretary.
Office of Thrift Supervision
12 CFR CHAPTER V
For the reasons discussed in the joint preamble, 12 CFR part 563e
is amended as follows:
PART 563e--[AMENDED]
1. The authority citation for part 563e continues to read as
follows:
Authority: 12 U.S.C. 1462a, 1463, 1464, 1467a, 1814, 1816,
1828(c), and 2901 through 2907.
Sec. 563e.12 [Amended]
2. In Sec. 563e.12(g)(3), the cross reference ``13 CFR 121.802(a)
(2) and (3)'' is revised to read ``the Small Business Administration's
Development Company or Small Business Investment Company programs (13
CFR 121.301).''
Dated: April 5, 1996.
By the Office of Thrift Supervision.
Jonathan L. Fiechter,
Acting Director.
[FR Doc. 96-11454 Filed 5-9-96; 8:45 am]
BILLING CODE 4810-33-P, 6210-01-P, 6714-01-P, 6720-01-P
