[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]


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RESOLUTION TRUST CORPORATION

12 CFR Part 1630

RIN 3205-AA21

 

Definition of Predominantly Minority Neighborhood

agency: Resolution Trust Corporation.

action: Final rule.

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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