[Federal Register Volume 59, Number 142 (Tuesday, July 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18063]
[[Page Unknown]]
[Federal Register: July 26, 1994]
=======================================================================
-----------------------------------------------------------------------
RESOLUTION TRUST CORPORATION
12 CFR Part 1630
RIN 3205-AA21
Definition of Predominantly Minority Neighborhood
agency: Resolution Trust Corporation.
action: Final rule.
-----------------------------------------------------------------------
summary: The Resolution Trust Corporation (RTC) is adopting a rule
which defines ``predominantly minority neighborhood'' as used in
section 21A(s) of the Federal Home Loan Bank Act (FHLBA) and section
21A(w)(17) of the FHLBA, as amended by the Resolution Trust Corporation
Completion Act. Section 21A(w)(17) of the FHLBA requires, among other
things, that in considering offers to acquire any insured depository
institution, or any branch of an insured depository institution,
located in a predominantly minority neighborhood (as defined in
regulations prescribed under subsection 21A(s)), the Corporation shall
give preference to an offer from any minority individual, minority-
owned business, or a minority depository institution, over any other
offer that results in the same cost to the Corporation, as determined
under section 13(c)(4) of the Federal Depository Insurance Act. Section
21A(s) of the FHLBA permits the RTC to lease to a minority acquiror, on
a rent-free basis, subject to certain conditions, any branch of a
failed institution which is located in a ``predominantly minority
neighborhood.'' Section 21A(w)(17) of the FHLBA also generally provides
that the RTC may provide to such minority individual, minority-owned
business, or minority depository institution additional preferences in
the form of capital assistance and performing assets. The rule
generally defines ``predominantly minority neighborhood'' as any U.S.
Postal Zip Code geographical area in which 50% or more of the persons
residing therein are minorities based upon the most recent Census data,
unless the RTC has determined, in its sole discretion, that other
reasonably reliable, readily accessible data indicates different
neighborhood boundaries.
effective date: August 25, 1994.
for further information contact: Robert C. Fick, Counsel, RTC Legal
Division, (202) 736-3069; Gregory B. Smith, Senior Counsel, RTC Legal
Division, (202) 736-3013; Mark G. Flanigan, Senior Attorney, RTC Legal
Division, (202) 736-3085; Edward Thomas, Resolutions Analyst, (202)
416-7179; Sherry Chen, Field Resolutions Specialist, (202) 416-7209.
These are not toll-free numbers.
supplementary information: The Resolution Trust Corporation published
in the Federal Register of February 24, 1994 (59 FR 8842-8845) an
interim rule defining ``predominantly minority neighborhood'' as used
in sections 21A(s) and 21A(w)(17) of the FHLBA as a geographic area
constituting a United States Postal Service 5-digit Zip Code (Zip Code)
in which 50% or more of the persons residing therein are minorities,
based upon the most recent census data, unless the RTC determines, in
its sole discretion, that other reasonably reliable, readily accessible
data indicates that different neighborhood boundaries are more
appropriate. The population data and the minority composition of these
Zip Codes are determined using the most recent (currently 1990 data)
Census of Population data (Census Data) collected and published by the
U.S. Department of Commerce, Economics and Statistics Administration,
Bureau of the Census (Census Bureau).
If the institution or a branch thereof is located in a Zip Code
area for which no significant Census Data is available (e.g., a
business district or office building) the Zip Code of a nearby
geographic area served by the institution or branch, for which such
Census Data is available, will be used as its Zip Code for purposes of
this rule. If the RTC determines, in its sole discretion, based upon
other reasonably reliable and readily accessible data, and subject to
RTC's Cost Constraints, that a different delineation would more
accurately reflect the area served by the financial institution or
branch to be marketed, the RTC will use such delineation as the
boundaries for the relevant neighborhood.
Interested persons were invited to submit written comments on or
before March 28, 1994. Although comments were received by various RTC
officials on related minority resolution programs, no comments were
received on the interim rule itself. Since no comments were received on
the interim rule, the final rule is adopted without change from the
interim rule for the reasons set forth in support of the interim rule
by the RTC when it was published in the Federal Register of February
24, 1994 (59 FR 8842-45).
Final Regulatory Flexibility Analysis
As required by the Regulatory Flexibility Act, 5 U.S.C. 601, et
seq., the following final regulatory flexibility analysis is provided:
1. A succinct statement of the need for, and the objectives of, the
rule. The objective of the rule is to provide a definition of the term
``predominantly minority neighborhood,'' as used in Sections 21A(s),
(w)(17) of the FHLBA. The rule is needed in order to implement the
minority benefits and preferences contained in those sections.
2. A summary of the issues raised by the public comments in
response to the initial regulatory flexibility analysis, a summary of
the assessment of the agency of such issues, and a statement of any
changes made in the proposed rule as a result of such comments. No
public comments were received, and therefore, no changes were made to
the interim rule.
3. A description of each of the significant alternatives to the
rule consistent with the stated objectives of applicable statutes and
designed to minimize any significant economic impact of the rule on
small entities which was considered by the agency, and a statement of
the reasons why each one of such alternatives was rejected. The rule
has no significant economic impact on small entities, and therefore, no
alternatives to the rule were identified or considered.
Authority: 12 U.S.C. 1441a (b)(11), (s) and (w)(17).
List of Subjects in 12 CFR Part 1630
Savings associations.
Accordingly, the interim rule adding 12 CFR part 1630 which was
published in the Federal Register at 59 FR 8842-8845 on February 24,
1994, is adopted as a final rule without change.
By order of the Deputy and Acting Chief Executive Officer.
Dated at Washington, DC this 20th day of July, 1994.
Resolution Trust Corporation.
William J. Tricarico,
Assistant Secretary.
[FR Doc. 94-18063 Filed 7-25-94; 8:45 am]
BILLING CODE 6714-01-M