[Federal Register Volume 65, Number 249 (Wednesday, December 27, 2000)]
[Notices]
[Pages 81864-81868]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32911]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

SUMMARY:

Background

    Notice is hereby given of the final approval of proposed 
information collections by the Board of Governors of the Federal 
Reserve System (Board) under OMB delegated authority, as per 5 CFR 
1320.16 (OMB Regulations on Controlling Paperwork Burdens on the 
Public). Board-approved collections of information are incorporated 
into the official OMB inventory of currently approved collections of 
information. Copies of the OMB 83-Is and supporting

[[Page 81865]]

statements and approved collection of information instrument(s) are 
placed into OMB's public docket files. The Federal Reserve may not 
conduct or sponsor, and the respondent is not required to respond to, 
an information collection that has been extended, revised, or 
implemented on or after October 1, 1995, unless it displays a currently 
valid OMB control number.

FOR FURTHER INFORMATION CONTACT:
Federal Reserve Board Clearance Officer--Mary M. West--Division of 
Research and Statistics, Board of Governors of the Federal Reserve 
System, Washington, DC 20551 (202-452-3829).
OMB Desk Officer--Alexander T. Hunt--Office of Information and 
Regulatory Affairs, Office of Management and Budget, New Executive 
Office Building, Room 3208, Washington, DC 20503 (202-395-7860).

    Final approval under OMB delegated authority of the extension of 
three years, with revision, of the following reports:
    1. Report title: Annual Report of Bank Holding Companies (FR Y-6) 
and Changes in Investments and Activities of Top-Tier Financial Holding 
Companies, Bank Holding Companies, and State Member Banks (FR Y-6A).
    Agency form number: FR Y-6 and FR Y-6A.
    OMB control number: 7100-0124.
    Frequency: annual and event-generated.
    Reporters: domestic top-tier bank holding companies (BHCs) and 
unaffiliated state member banks.
    Annual reporting hours: 22,552 hours.
    Estimated average hours per response: 4 hours.
    Number of respondents: 5,638.
    Small businesses are not affected.
    General description of report: This information collection is 
mandatory; Section 5(c) of the Bank Holding Company Act (BHC Act) (12 
U.S.C. 1844(c)); Section 9 of the FRA (12 U.S.C. 321); Section 25 of 
the FRA (12 U.S.C. 601-604a); Section 25A of the FRA (12 U.S.C. 611-
631); and, Regulation Y (12 CFR part 225). Upon request from a 
respondent, certain information may be given confidential treatment 
pursuant to the Freedom of Information Act (5 U.S.C. 552(b)(4) and 
(6)).
    Abstract: All domestic top-tier BHCs file the FR Y-6, which 
collects financial data, an organization chart and information about 
shareholders. The Federal Reserve uses the data to monitor holding 
company operations and determine holding company compliance with the 
provisions of the Bank Holding Company Act (BHC Act) and Regulation Y 
(12 CFR 225). The FR Y-6A is an event-generated report filed by top-
tier BHCs and unaffiliated state member banks to report changes in 
regulated investments and activities made pursuant to the Bank Holding 
Company Act and Regulation Y. The report collects information relating 
to acquisitions, divestitures, changes in activities, and legal 
authority. The number of FR Y-6As submitted varies depending on the 
reportable activities engaged in by each bank holding company.
    Current actions: On September 20, 2000, the Federal Reserve issued 
a Federal Register notice (65 FR 56910) requesting public comment on a 
proposal to extend with revision the FR Y-6 and the FR Y-6A. To reduce 
burden and cost and make the forms easier to use, the Federal Reserve 
proposed to replace the FR Y-6A with the FR Y-10. This new form would 
make the reporting of structure data for domestic and foreign banking 
organizations more similar, reduce the types of investments to be 
included, streamline the method of reporting percentage of ownership 
for nonbanking investments, and simplify the reporting of legal 
authority (regulatory) and activity codes. To improve the timeliness of 
the data, the Federal Reserve proposed to vary the reporting schedule 
of the FR Y-10 for different types of transactions. The Federal Reserve 
also proposed to revise the FR Y-6 organization charts to exclude small 
merchant banking investments and to include parallel language from the 
reportable entities sections of the proposed FR Y-10 instructions, as 
appropriate.
    The comment period ended on November 20, 2000, and the Federal 
Reserve received public comments from six domestic banking 
organizations and one attorney. Most commenters favored the format of 
the proposed FR Y-10, stating that this form was easier to understand 
and more user-friendly than the FR Y-6A. Also, commenters strongly 
favored the reduction in the number of reports filed for nonbanking 
investments. Currently, FR Y-6A reporting form requires information on 
virtually all investments in which there was control or an ownership 
interest of greater than 5 percent. However, the proposed FR Y-10 
reporting form does not require reports for nonbanking investments of 
less than 25 percent of a class of voting securities unless the 
reporter otherwise controls the company.
    Several comments were received on the proposed deadlines for these 
reports. The proposed FR Y-10 included a new 3-day deadline for 
openings, closings, mergers, sales and relocations of depository 
institutions, Edge and agreement corporations, and nondepository trusts 
that are members of the Federal Reserve System. Almost all of the 
commenters objected to this new deadline, which was proposed to ensure 
timely receipt of data needed for monetary policy purposes. After 
reviewing the comments, the Federal Reserve determined that there are 
alternative ways to capture the information and decided to make all 
information due thirty days after the transaction. Also, one large 
banking organization suggested providing the reports in batches on the 
same day of each month. Federal Reserve Bank staff have worked with 
banking organizations to establish reporting arrangements to reduce 
burden, especially for complex reports such as these. They will 
continue these efforts on a case-by-case basis, as long as all notices 
are filed in accordance with deadlines specified in the regulations.
    One domestic bank suggested additions to the list of business 
entity types in the Characteristics Schedule of the FR Y-10. The 
Federal Reserve has taken further steps to reduce the overlap between 
types of entities reported on the Characteristics Schedule and the 
types of activities reported on the Investments and Activities 
Schedule. One large domestic banking organization asked for 
clarification on reporting ownership in more than one class of voting 
securities. The Federal Reserve has clarified these issues in the final 
instructions.
    Two large banking organizations objected to including entities on 
the FR Y-6 organizational chart that were not included in the 
reportable entities on the FR Y-10. The Federal Reserve has a 
continuing need for a more complete picture of holding company 
structure on an annual basis and has maintained the annual reporting 
requirement for information about investments between 5 and 25 percent 
on the FR Y-6. In an effort to reduce burden, however, the Federal 
Reserve has dropped the requirement to annotate the exact percentage 
ownership of these investments on the FR Y-6 and will allow some 
flexibility in the manner in which respondents report the additional 
entities. This may involve methods such as annotating the organization 
charts for entities not reportable on the FR Y-10 or providing a 
separate list of these entities.
    The Federal Reserve solicited comment on limiting reporting of 
insurance and securities activities by using materiality thresholds. 
Although

[[Page 81866]]

no comments were received, the Federal Reserve decided to limit 
reporting of insurance companies in each line of insurance business (1) 
to those in the line of ownership down to, but not beyond, a 
functionally regulated firm or (2), in the case of investments that are 
not functionally regulated, to those above a threshold level based on 
the relative size and importance of various tiers of insurance 
companies. The Federal Reserve also decided to use a materiality 
threshold to limit reporting of securities investments. The Federal 
Reserve solicits comment on whether such materiality test would be 
helpful, and, if so, how these test should be defined. Comments must be 
submitted on or before January 26, 2001. Comments, which should refer 
to the OMB control number or agency form number, should be addressed to 
Jennifer J. Johnson, Secretary, Board of Governors of the Federal 
Reserve System, 20th and C Streets, NW., Washington, DC 20551, or 
mailed electronically to [email protected]. Comments 
addressed to Ms. Johnson also may be delivered to the Board's mailroom 
between 8:45 a.m. and 5:15 p.m., and to the security control room 
outside of those hours. Both the mailroom and the security control room 
are accessible from the courtyard entrance on 20th Street between 
Constitution Avenue and C Street, NW. Comments received may be 
inspected in room M-P-500 between 9:00 a.m. and 5:00 p.m., except as 
provided in section 261.14 of the Board's Rules Regarding Availability 
of Information, 12 CFR 261.14(a). A copy of the comments may also be 
submitted to the OMB desk officer for the Board: Alexander T. Hunt, 
Office of Information and Regulatory Affairs, Office of Management and 
Budget, New Executive Office Building, Room 3208, Washington, DC 20503.
    One large banking organization thought the burden estimates were 
understated. The Federal Reserve has been developing an Internet-based 
collection tool for the FR Y-10 and plans to begin implementation in 
June 2001. The option of filing the FR Y-10 electronically and the new 
materiality thresholds for insurance and securities investments should 
significantly reduce the burden of filing these reports. As described 
above, the Federal Reserve has taken further steps to streamline and 
clarify the reporting requirements and believes that the burden 
estimates for the FR Y-10 and FR Y-6 should remain the same as those in 
the initial proposal. Also, the hourly burden estimates represent the 
average amount of the time required for all reporters to complete the 
reporting requirements; the actual amount of time required will vary 
based on an institution's size.
    One large banking organization asked for additional time to 
implement the proposed changes. The Federal Reserve will replace the FR 
Y-6A with the FR Y-10 on June 1, 2001, and will implement the revised 
FR Y-6 on December 31, 2001. Please see the section below describing 
the FR Y-10. The Federal Reserve will distribute the final reporting 
forms and instructions early in 2001 to allow respondent to make system 
changes necessary to accommodate the new reporting requirements.

    2. Report title: Annual Report of Foreign Banking Organizations (FR 
Y-7) and Foreign Banking Organization Structure Report on U.S. Banking 
and Nonbanking Activities (FR Y-7A)
    Agency form number: FR Y-7 and FR Y-7A.
    OMB control number: 7100-0125.
    Frequency: annual, event-generated.
    Reporters: foreign banking organizations (FBOs).
    Annual reporting hours: 3,761.
    Estimated average hours per response: 11.5 hours.
    Number of respondents: 327.
    Small businesses are not affected.
    General description of report: This information collection is 
mandatory; Section 5(c) of the BHC Act (12 U.S.C. 1844(c)); Section 7 
and 13(a) of the international Banking Act of 1978 (12 U.S.C. 3106 and 
3108 (a)); Section 25 of the FRA (12 U.S.C. 601-604a); Section 25A of 
the FRA (12 U.S.C. 611-631); and, Regulation Y (12 CFR part 225). Upon 
request from a respondent, certain information may be given 
confidential treatment pursuant to the Freedom of Information Act (5 
U.S.C. 552(b)(4) and (6)).
    Abstract: The FR Y-7 is a report filed by all FBOs that engage in 
banking in the United States, either directly or indirectly, to update 
their financial and organizational information. The Federal Reserve 
uses information to assess an FBO's ability to be a continuing source 
of strength to its U.S. banking operations and to determine compliance 
with U.S. laws and regulations. The FR Y-7A is a structural report 
completed by FBOs that engage in banking in the United States, either 
indirectly through a subsidiary bank, Edge or agreement corporation, or 
commercial lending company, or directly through a branch or agency. The 
information contained in this report is used by the Federal Reserve 
System to assess the foreign banking organization's ability to be a 
continuing source of strength to its U.S. banking operations and to 
determine compliance with U.S. laws and regulations.
    Current actions: On September 20, 2000, the Federal Reserve is 
issued a Federal Register notice (65 FR 56910) requesting public 
comment on a proposal to extend with revision the FR Y-7 and the FR Y-
7A. To reduce burden and cost and make the forms easier to use, the 
Federal Reserve proposed to replace the FR Y-7A with the FR Y-10F. This 
new form would make the reporting of structure data for domestic and 
foreign banking organizations more similar, reduce the types of 
investments to be included, streamline the method of reporting 
percentage of ownership for nonbanking investments, and simplify the 
reporting of legal authority (regulatory) and activity codes. To 
improve the timeliness of the data, the Federal Reserve proposed to 
vary the reporting schedule of the FR Y-10F report for different types 
of transactions. For consistency purposes, the Federal Reserve proposed 
that FBOs, which currently file on an annual basis, would report the 
required structure information on an event-generated basis. The FR Y-
10F report would also include data on managed non-U.S. branches, not 
included on the FR Y-7A report.
    The Federal Reserve proposed to change the due date for the FR Y-7 
to 90 calendar days after the respondent's fiscal year end to be 
consistent with the FR Y-6, revise the FR Y-7 organization chart to 
exclude small merchant banking investments and debts previously 
contracted (DPC), and include parallel language on reportable entities 
from the FR Y-10F instructions, as appropriate. Finally, the Federal 
Reserve proposed to revise the FR Y-7 to include information on 
business measurement tests currently included on the FR Y-7A.
    The comment period ended on November 20, 2000. The Federal Reserve 
received comments from three FBOs and three foreign banking trade 
groups regarding the proposed revisions. Most commenters favored the 
format of the proposed FR Y--10F, stating this form was easier to 
understand and more user-friendly than the FR Y-7A. Also, commenters 
strongly favored the reduction in the number of reports filed for 
nonbanking investments. Currently, FR Y-7A reporting form requires 
information on virtually all investments in which there was control or 
ownership interest of greater than 5 percent. However, the proposed FR 
Y-10F reporting form does

[[Page 81867]]

not require reports for nonbanking investments of less than 25 percent 
of a class of voting securities unless the reporter otherwise controls 
the company.
    Several comments were received on the proposed deadlines for these 
reports. The proposed FR Y-10F included a new 3-day deadline for 
openings, closings, mergers, sales and relocations of depository 
institutions, Edge and agreement corporations, and nondepository trusts 
that are members of the Federal Reserve System. Almost all of the 
commenters objected to this new deadline, which was proposed to ensure 
timely receipt of data needed for monetary policy purposes. After 
reviewing the comments, the Federal Reserve determined that there are 
alternative ways to capture the information and decided to make all 
information due thirty days after the transaction.
    The three foreign banking trade groups objected to event-generated 
filing of all reportable transactions by FBOs on the FR Y-10F. Based on 
their comments, these institutions may have interpreted that the 
Federal Reserve proposed to collect information on FBO's worldwide 
holdings on an event-generated basis; however, this was never the 
intent of the Federal Reserve's proposal. Currently, FBOs file most of 
their structure information annually on the FR Y-7A; however, FBOs that 
are financial holding companies file information about new activities 
permissible under the Gramm-Leach-Bliley Act of 1999 (GLB Act) on an 
event-generated basis. The Federal Reserve retained the requirement for 
event-generated filing by FBOs for entities that are held directly in 
the United States to make reporting of structure data for domestic and 
foreign banking organizations more similar and to ensure compliance 
with the GLB Act. The Federal Reserve clarified the instructions to 
limit FBO reporting to their holdings in the United States.
    For the FR Y-7, all of the commenters objected to shortening the 
deadline from 120 days after the respondent's fiscal year end to 90 
days after their fiscal year end. They stated that FBOs are not allowed 
to release this type of information prior to distributing it to their 
shareholders and meeting certain regulatory requirements in their home 
country. As a result of these comments, the Federal Reserve decided to 
retain the 120-day deadline.
    One foreign banking trade group objected to including entities on 
the FR Y-7 organizational chart that were not included in the 
reportable entities on the FR Y-10F. The Federal Reserve has a 
continuing need for a more complete picture of FBO structure on an 
annual basis and has maintained the requirement for information about 
investments between 5 and 25 percent on the FR Y-7. In an effort to 
reduce burden, however, the Federal Reserve has dropped the requirement 
to annotate the exact percentage ownership of these investments on the 
FR Y-7 and will allow some flexibility in the manner in which 
respondents report the additional entities. This may involve methods 
such as annotating the organization charts for entities not reportable 
on the FR Y-10F or providing a separate list of these entities.
    Two foreign banking trade organizations suggested conforming the 
provisions of Section 211.23(h) to the revised FR Y-7 and FR Y-10F and 
discontinuing the Notification pursuant to Section 211.23(h) of 
Regulation K on Acquisitions by Foreign Banking Organizations (FR 4002; 
OMB No. 71100-0110) to avoid unnecessary duplication of effort. The 
Federal Reserve has already approved discontinuance of the FR 4002 as 
soon as revisions to Regulation K are finalized; these revisions are 
anticipated in 2001.
    The Federal Reserve solicited comment on limiting reporting of 
insurance and securities activities by using materially thresholds. 
Although no comments were received, the Federal Reserve decided to 
limit reporting of insurance companies in each line of insurance 
business (1) to those in the line of ownership down to, but not beyond, 
a functionally regulated firm or (2), in the case of investments that 
are not functionally regulated, to those above a threshold level based 
on the relative size and importance of various tiers of insurance 
companies. The Federal Reserve also decided to use a materiality 
threshold to limit reporting of securities investments. The Federal 
Reserve solicits comment on whether such materiality tests would be 
helpful, and, if so, how these should be defined. Comments must be 
submitted on or before January 26, 2001. Comments, which should refer 
to the OMB control number or agency form number, should be addressed to 
Jennifer J. Johnson, Secretary, Board of Governors of the Federal 
Reserve System, 20th and C Streets, NW., Washington, DC 20551, or 
mailed electronically to [email protected]. Comments 
addressed to Ms. Johnson also may be delivered to the Board's mailroom 
between 8:45 a.m. and 5:15 p.m., and to the security control room 
outside of those hours. Both the mailroom and the security control room 
are accessible from the courtyard entrance on 20th Street between 
Constitution Avenue and C Street, NW. Comments received may be 
inspected in room M-P-500 between 9 a.m. and 5 p.m., except as provided 
in section 261.14 of the Board's Rules Regarding Availability of 
Information, 12 CFR 261.14(a). A copy of the comments may also be 
submitted to the OMB desk officer for the Board: Alexander T. Hunt, 
Office of Information and Regulatory Affairs, Office of Management and 
Budget, New Executive Office Building, Room 3208, Washington, DC 20503.
    Two foreign banking trade groups thought the burden estimates were 
understated. One foreign banking trade group asked for the option of 
filing the information electronically. The Federal Reserve has been 
developing an Internet-based collection tool for the FR Y-10F and plans 
to begin implementation in 2001. The option of filing the FR Y-10F 
electronically and the new materiality thresholds for insurance and 
securities investments should significantly reduce the burden of filing 
these reports. As described above, the Federal Reserve has taken 
further steps to streamline and clarify the reporting requirements and 
believes that the burden estimates for the FR Y-10F and FR Y-7 should 
remain the same as those in the initial proposal. Also, the hourly 
burden estimates represent the average amount of the time required for 
all reporters to complete the reporting requirements; the actual amount 
of time required will vary based on an institution's size. Finally, the 
Federal Reserve clarified that FBOs should limit their reporting to 
their holdings in the United States.
    Two foreign banking trade groups asked for additional time for FBOs 
to implement the proposed changes. The Federal Reserve will replace the 
FR Y-7A with the FR Y-10F on June 1, 2001, and will implement the 
revised FR Y-7 on December 31, 2001. Please see the section below 
describing the FR Y-10. The Federal Reserve will distribute the final 
reporting forms and instructions early in 2001 to allow respondent to 
make system changes necessary to accommodate the new reporting 
requirements.

    Final approval under OMB delegated authority of revision, without 
extension, of the following report:
    Report title: Changes in Foreign Investments Made Pursuant to 
Regulation K.
    Agency form number: FR 2064.
    OMB control number: 7100-0109.
    Frequency: event-generated.
    Recordkeepers: BHCs, member banks, and Edge and agreement 
corporations.

[[Page 81868]]

    Annual recordkeeping hours: 320.
    Estimated average hours per response: 2 hours.
    Number of respondents: 40.
    Small businesses are not affected.
    General description of report: This information collection is 
considered mandatory; Section 5(c) of the BHC Act (12 U.S.C. 1844(c)); 
Section 7 and 13(a) of the international Banking Act of 1978 (12 U.S.C. 
3106 and 3108 (a)); Section 25 of the FRA (12 U.S.C. 601-604a); Section 
25A of the FRA (12 U.S.C. 611-631); and, Regulation K (12 CFR part 
211.7(c)); and was given confidential treatment (5 U.S.C. 552(b)(4) and 
(b)(6)).
    Abstract: Changes in Foreign Investments Made Pursuant to 
Regulation K currently is an event-generated report filed by BHCs, 
member banks, and Edge and agreement corporations to record changes in 
their international investments. The Federal Reserve uses the 
information to monitor investments in the international operations of 
U.S. banking organizations and to fulfill its supervisory 
responsibilities under Regulation K.
    Current Actions: On September 20, 2000, the Federal Reserve issued 
a Federal Register notice (65 FR 56910) requesting public comment on a 
proposal to revise without extension the FR 2064. The Federal Reserve 
proposed to revise the FR 2064 to include only the information on 
historical cost of investments, as required by Regulation K, move 
structure information to the FR Y-10, raise the threshold for reporting 
these foreign investments, and change the reporting frequency of the FR 
2064 from event-generated to quarterly. The comment period ended 
November 20, 2000.
    One large domestic banking organization criticized the 
inconsistencies in the reporting thresholds for the FR 2064 and the 
FRY-10 and the bifurcation of Regulation K reporting between these two 
reports. Another large domestic banking organization suggested further 
deletions to the items listed on the FR 2064. After further 
consideration, the Federal Reserve decided to eliminate the collection 
of the FR 2064 report. However, Federal Reserve examiners have a 
continuing need to monitor compliance with the Federal Reserve Act and 
relevant sections of Regulation K. The Federal Reserve will replace 
this reporting requirement with a requirement to maintain records of 
comparable information, effective June 1, 2001, and will issue 
instructions for this recordkeeping requirement in the near future.

    Final approval under OMB delegated authority the implementation of 
the following reports:
    Report title: Report of Changes in Organizational Structure (FRY-
10) and Report of Changes in FBO Organizational Structure (FR Y-10F).
    Agency form number: FR Y-10 and FR Y-10F.
    OMB control number: 71-0297.
    Frequency: event-generated.
    Reporters: FR Y-10: bank holding companies, member banks not 
affiliated with a bank holding company, Edge and agreement 
corporations; FR Y-10F: foreign banking organizations.
    Annual reporting hours: FR Y-10: 12,240 hours; FR Y-10F: 2,044 
hours.
    Estimated average hours per response: 1.25 hours.
    Number of respondents: FR Y-10: 2,448; FR Y-10F:327.
    Small businesses are not affected.
    General description of report: These information collections are 
mandatory; Section 5(c) of the Bank Holding Company Act (BHC Act) 12 
U.S.C. 1844(c)); Section 4 of the BHC Act (12 U.S.C. 1843(k)); Section 
25 of the FRA (12 U.S.C. 601-604a); Section 25A of the FRA (12 U.S.C. 
611-631); and, Regulation Y (12 CFR part 225); FR Y-10 only--Section 9 
of the FRA (12 U.S.C. 321); FR Y-10F only--Section 7 and 13(a) of the 
international Banking Act of 1978 (12 U.S.C. 3106 and 3108 (a)). Upon 
request from a respondent, certain information may be given 
confidential treatment pursuant to the Freedom of Information Act (5 
U.S.C. 552(b)(4) and (6)).
    Current actions: On September 20, 2000, the Federal Reserve issued 
a Federal Register notice (65 FR 56910) requesting public comment on a 
proposal to implement the FR Y-10 and the FR Y-10F. To reduce burden 
and cost and make the forms easier to use, the Federal Reserve proposed 
to reformat the FR Y-6A and FR Y-7A into two forms, the FR Y-10 and FR 
Y-10F, respectively. These proposed forms would make the reporting of 
structure data for domestic and foreign banking organizations more 
similar, reduce the types of investments to be included, streamline the 
method of reporting percentage of ownership for nonbanking investments, 
and simplify the reporting of legal authority (regulatory) and activity 
codes. To improve the timeliness of the data, the Federal Reserve 
proposed to vary the reporting schedule of the FR Y-10 and FR Y-10F 
reports for different types of transactions. For consistency purposes, 
the Federal Reserve proposed that FBOs, which currently file on an 
annual basis, would report the required structure information on an 
event-generated basis. The FR Y-10F report would also include data on 
managed non-U.S. branches, not included on the FR Y-7A report. In 
addition structure information would be moved from the FR 2064 to the 
FR Y-10. The comment period ended on November 20, 2000. Comments 
received on these two forms have been addressed in the Current Actions 
section of the FR Y-6A, FR Y-7A, and FR 2064.

    Board of Governors of the Federal Reserve System, December 20, 
2000.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 00-32911 Filed 12-26-00; 8:45 am]
BILLING CODE 6210-01-P