[Federal Register Volume 65, Number 243 (Monday, December 18, 2000)]
[Rules and Regulations]
[Pages 78900-78902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31871]


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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Parts 506, 509, and 560

[No. 2000-102]


Technical Amendments

AGENCY: Office of Thrift Supervision, Treasury.

ACTION: Final rule.

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SUMMARY: The Office of Thrift Supervision (OTS) is amending its 
regulations to incorporate a number of technical and conforming 
amendments. They include clarifications to reflect existing practices 
and to provide consistency among the Federal banking agencies, updated 
statutory and other references, and a correction of a typographical 
error.

EFFECTIVE DATE: December 18, 2000.

FOR FURTHER INFORMATION CONTACT: Mary H. Gottlieb, Senior Paralegal 
(Regulations), (202) 906-7135, or Karen A. Osterloh, Assistant Chief 
Counsel, (202) 906-6639, Regulations and Legislation Division, Chief 
Counsel's Office, Office of Thrift Supervision, 1700 G Street, NW., 
Washington DC 20552.

SUPPLEMENTARY INFORMATION: OTS is amending its regulations to 
incorporate a number of technical and conforming amendments. These 
changes are outlined below:

Part 506--Information Collection Requirements under the Paperwork 
Reduction Act

    OTS is updating its table displaying the OMB control numbers 
assigned to various OTS regulations under the Paperwork Reduction Act. 
See 12 CFR 506.1(b). OTS is revising the table to add and correct the 
references to the control numbers.

Part 509--Rules of Practice and Procedure in Adjudicatory 
Proceedings

    OTS is making two technical amendments to the Uniform Rules of 
Practice and Procedure. First, OTS is amending Sec. 509.19(c) to 
conform its default provisions to the rules of the other banking 
agencies. Under the current OTS rule, if a respondent fails to file a 
timely answer to a notice of charges in an administrative proceeding, 
the Administrative Law Judge (ALJ), upon motion of Enforcement Counsel, 
``shall . . . file a recommended decision with the Director containing 
the findings and the relief sought in the complaint.'' The other 
banking agencies' rules are similar, but require the ALJ to make the 
additional determination that ``no good cause exists for a respondent's 
failure to file a timely answer.'' \1\The ALJs in OTS administrative 
proceedings have generally given the respondents an opportunity to 
explain a failure to respond through this good cause process. OTS 
believes that this technical amendment is necessary to update the rule 
to reflect existing practices, to provide greater consistency with the 
other federal banking agencies, and to be more explicit in the 
requirements of the administrative law judge before recommending a 
decision based on a default.
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    \1\ See e.g., 12 CFR 19.19(c)(OCC).
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    OTS is also correcting a typographical error in Sec. 509.31, which 
governs scheduling and prehearing conferences. The rule currently 
refers to the ALJ's authority to direct counsel to the parties to meet 
to address ``matters of which office notice may be taken (emphasis 
added).'' This reference is replaced with term ``official notice.''

Part 560--Lending and Investment

    Finally, OTS is revising the lending and investment powers chart at 
Sec. 560.30 to provide corrected statutory citations. The Economic 
Growth and Regulatory Paperwork Reduction Act of 1996, Public Law No. 
104-208, removed section 5(c)(3)(A) of the Home Owners' Loan Act and 
redesignated sections 5(c)(3)(B) through (D) as 5(c)(3)(A) through (C). 
OTS has made corresponding changes to the powers chart.

Administrative Procedure Act; Riegle Community Development and 
Regulatory Improvement Act of 1994

    The OTS has found good cause to dispense with both prior notice and 
comment on this final rule and a 30-day delay of its effective date 
mandated by the Administrative Procedure Act.\2\ OTS believes that it 
is contrary to public interest to delay the effective date of the rule, 
as it corrects and clarifies provisions that have caused confusion. 
Because the amendments in the rule are not substantive, making them 
effective immediately will not detrimentally affect savings 
associations.
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    \2\ 5 U.S.C. 553.
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    In addition, this document is exempt from the requirement found in 
section 302 of the Riegle Community Development and Regulatory 
Improvement Act of 1994\3\ that regulations must not take effect before 
the first day of the quarter following publication, as it imposes no 
new requirements.
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    \3\ Pub. L. No. 103-325, 12 U.S.C. 4802.
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Regulatory Flexibility Act

    Pursuant to section 605(b) of the Regulatory Flexibility Act,\4\ it 
is certified that this technical corrections regulation will not have a 
significant economic impact on a substantial number of small entities.
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    \4\ Pub. L. No. 96-354, 5 U.S.C. 601.
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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 509

    Administrative practice and procedure, Penalties.

12 CFR Part 560

    Consumer protection, Investments, Manufactured homes, Mortgages, 
Reporting and recordkeeping requirements, Savings associations, 
Securities.

    Accordingly, the Office of Thrift Supervision hereby amends title 
12, chapter V of the Code of Federal Regulations as set forth below.

PART 506--INFORMATION 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. Section 506.1 is amended in paragraph (b) by removing the entry 
for Sec. 563.134 and adding three new entries in numerical order to 
read as follows:

[[Page 78901]]

Sec. 506.1  OMB control numbers assigned pursuant to the Paperwork 
Reduction Act.

* * * * *
    (b) Display.

------------------------------------------------------------------------
                                                            Current OMB
  12 CFR part or section where identified and described     control No.
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      *         *         *         *         *         *         *
536.40..................................................       1550-0106
 
      *         *         *         *         *         *         *
563.143 through 563.146.................................       1550-0059
 
      *         *         *         *         *         *         *
Part 573................................................       1550-0103
 
      *         *         *         *         *         *         *
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PART 509--RULES OF PRACTICE AND PROCEDURE IN ADJUDICATORY 
PROCEEDINGS

    3. The authority citation for part 509 continues to read as 
follows:

    Authority: 5 U.S.C. 504, 554-557; 12 U.S.C. 1464, 1467, 1467a, 
1468, 1817(j), 1818, 3349, 4717; 15 U.S.C. 78(l), 78o-5, 78u-2; 31 
U.S.C. 5321; 42 U.S.C. 4012a.

    4. Section 509.19 is amended by revising the second sentence of 
paragraph (c)(1) and by adding a new sentence following it to read as 
follows:


Sec. 509.19  Answer.

* * * * *
    (c) Default--(1) Effect of failure to answer. * * * If no timely 
answer is filed, Enforcement Counsel may file a motion for entry of an 
order of default. Upon a finding that no good cause has been shown for 
the failure to file a timely answer, the administrative law judge shall 
file with the Director a recommended decision containing the findings 
and the relief sought in the notice. * * *
* * * * *

    5. Section 509.31(b)(3) is revised to read as follows:


Sec. 509.31  Scheduling and prehearing conferences.

* * * * *
    (b) Prehearing conferences. * * *
    (3) Matters of which official notice may be taken;
* * * * *

PART 560--LENDING AND INVESTMENT

    6. The authority citation for part 560 continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 1701j-3, 
1828, 3803, 3806; 42 U.S.C. 4106.

    7. Section 560.30 is amended by revising the following three 
entries in the Lending and Investment Powers Chart and Note 3 following 
the chart 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                    HOLA          (Endnotes contain
                                  authorization    applicable regulatory
                                                        limitations)
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      *         *         *         *         *         *         *
Community development loans     5(c)(3)(A).......  5% of total assets,
 and equity investments.                            provided equity
                                                    investments do not
                                                    exceed 2% of total
                                                    assets.\3\
Construction loans without      5(c)(3)(C).......  In the aggregate, the
 security.                                          greater of total
                                                    capital or 5% of
                                                    total assets.
 
      *         *         *         *         *         *         *
Nonconforming loans...........  5(c)(3)(B).......  5% of total assets.
 
      *         *         *         *         *         *         *
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    Notes:   

* * * * *
    \3\ 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 www.ots.treas.gov).

[[Page 78902]]

* * * * *

    By the Office of Thrift Supervision.
    Dated: December 8, 2000.
Ellen Seidman,
Director.
[FR Doc. 00-31871 Filed 12-15-00; 8:45 am]
BILLING CODE 6720-01-P