[Federal Register Volume 67, Number 246 (Monday, December 23, 2002)]
[Rules and Regulations]
[Pages 78150-78153]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32148]


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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Parts 502, 505, 506, 516, 541, 545, 557, 559, 561, 563, 
563e, 563g, and 575

[No. 2002-65]


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, updated statutory and other 
references, and corrections of typographical errors.

EFFECTIVE DATE: December 23, 2002.

FOR FURTHER INFORMATION CONTACT: Marilyn K. Burton, Senior Paralegal 
(Regulations), (202) 906-6467, or Karen A. Osterloh, Special 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.
    Consistent with section 722 of the Gramm-Leach-Bliley Act, OTS is 
making changes designed to make its regulations easier to understand. 
OTS has revised parts 541 and 561 to clearly state that the definitions 
in these parts apply throughout chapter V, unless another definition is 
specifically provided.
    OTS is also making the following miscellaneous changes:
    [sbull] Part 502--Assessments and Fees. The final rule corrects a 
typographical error in Sec.  502.5.
    [sbull] Part 505--Freedom of Information Act (FOIA). The final rule 
revises Sec. Sec.  505.2 to 505.4, which describe the availability of 
materials under FOIA and the procedures for requests for records and 
administrative appeals. The final rule indicates that materials are 
available through the FOIA Office and the Public Reading Room. The 
final rule also provides that requests for records and administrative 
appeals of initial determinations to deny records must be submitted to 
the FOIA Office.
    [sbull] Part 506--Information Collection Requirements under the 
Paperwork Reduction Act (PRA). The final rule updates the table 
displaying the OMB control numbers assigned to various OTS regulations 
under the PRA by inserting additional references to the control 
numbers. See 12 CFR 506.1(b).
    [sbull] Part 516--Application Processing Guidelines and Procedures. 
The final rule updates Sec.  516.40 to include current addresses for 
OTS Regional Offices.
    [sbull] Part 545--Federal Savings Associations--Operations. The 
final rule corrects a typographical error in Sec.  545.74(b)(2).
    [sbull] Part 557--Deposits. The final rule corrects a typographical 
error in Sec.  557.11(b).
    [sbull] Part 559--Subordinate Organizations. The final rule 
corrects a citation in Sec.  559.3(e)(2)(ii).
    [sbull] Part 563--Savings Associations--Operations. The final rule 
corrects a typographical error in Sec.  563.146.
    [sbull] Part 563e--Community Reinvestment. The final rule corrects 
a citation in Appendix A to part 563e--Ratings.
    [sbull] Parts 563g--Securities Offerings and Part 575--Mutual 
Holding Companies. The final rule updates citations in Sec. Sec.  
563g.19 and 575.7(c)(1) and (c)(2).

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

    OTS finds that there is good cause to dispense with prior notice 
and comment on this final rule and with the 30-day delay of effective 
date mandated by the Administrative Procedure Act.\1\ OTS believes that 
these procedures are unnecessary and contrary to public interest 
because the rule merely corrects and clarifies existing provisions. 
Because the amendments in the rule are not substantive, these changes 
will not detrimentally affect savings associations.
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    \1\ 5 U.S.C. 553.
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    Section 302 of the Riegle Community Development and Regulatory 
Improvement Act of 1994 provides that regulations that impose 
additional reporting, disclosure, or other new requirements may not 
take effect before the first day of the quarter following 
publication.\2\ This section does not apply because this final rule 
imposes no additional requirements and makes only technical changes to 
existing regulations.
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    \2\ Pub. L. 103-325, 12 U.S.C. 4802.
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Regulatory Flexibility Act

    Pursuant to section 605(b) of the Regulatory Flexibility Act,\3\ 
the OTS Director certifies that this technical corrections regulation 
will not have a significant economic impact on a substantial number of 
small entities.
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    \3\ Pub. L. 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 502

    Assessments, Federal home loan banks, Reporting and recordkeeping 
requirements, Savings associations.

12 CFR Part 505

    Freedom of information.

12 CFR Part 506

    Reporting and recordkeeping requirements.

12 CFR Part 516

    Administrative practice and procedure, Reporting and recordkeeping 
requirements, Savings associations.

12 CFR Parts 541 and 561

    Savings associations.

12 CFR Part 545

    Accounting, Consumer protection, Credit, Electronic funds 
transfers, Investments, Reporting and recordkeeping requirements, 
Savings associations.

12 CFR Part 557

    Consumer protection, Reporting and recordkeeping requirements, 
Savings associations.

12 CFR Part 559

    Reporting and recordkeeping requirements, Savings associations, 
Subsidiaries.

12 CFR Part 563

    Accounting, Advertising, Crime, Currency, Investments, Reporting 
and

[[Page 78151]]

recordkeeping requirements, Savings associations, Securities, Surety 
bonds.

12 CFR Part 563e

    Community development, Credit, Investments, Reporting and 
recordkeeping requirements, Savings associations.

12 CFR Part 563g

    Reporting and recordkeeping requirements, Savings associations, 
Securities.

12 CFR Part 575

    Administrative practice and procedure, Capital, Holding companies, 
Reporting and recordkeeping requirements, Savings associations, 
Securities.

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

PART 502--ASSESSMENTS AND FEES

    1. The authority citation for part 502 continues to read as 
follows:

    Authority: 12 U.S.C. 1462a, 1463, 1467, 1467a.

    2. Revise Sec.  502.5(a) to read as follows:


Sec.  502.5  Who must pay assessments and fees?

    (a) Authority. Section 9 of the HOLA, 12 U.S.C. 1467, authorizes 
the Director to charge assessments to recover the costs of examining 
savings associations and their affiliates, to charge fees to recover 
the costs of processing applications and other filings, and to charge 
fees to cover OTS's direct and indirect expenses in regulating savings 
associations and their affiliates.
* * * * *

PART 505--FREEDOM OF INFORMATION ACT

    3. The authority citation for part 505 continues to read as 
follows:

    Authority: 5 U.S.C. 552; 12 U.S.C. 1462a, 1463, 1464.

    4. Revise the second sentence of Sec.  505.2 to read as follows:


Sec.  505.2  Public Reading Room.

    * * * Contact the FOIA Office, Office of Thrift Supervision, 1700 G 
Street, NW., Washington, DC 20552, or you may visit the Public Reading 
Room at 1700 G Street, NW., by appointment only. * * *

    5. Revise Sec.  505.3 to read as follows:


Sec.  505.3  Requests for records.

    A designated official will make the initial determination under 31 
CFR 1.5(g) whether to grant a request for OTS records. Requests may be 
mailed to: Freedom of Information Act Request, FOIA Office, Office of 
Thrift Supervision, 1700 G Street, NW., Washington, DC 20552, or marked 
``FOIA'' and delivered in person to the FOIA Office, 1700 G Street, 
NW., Washington, DC 20552. Requests may also be sent by e-mail or 
facsimile to the e-mail address and facsimile number in Sec.  505.2 of 
this part.

    6. Revise Sec.  505.4 to read as follows:


Sec.  505.4  Administrative appeal of initial determination to deny 
records.

    A designated official will make appellate determinations under 31 
CFR 1.5(h) with respect to OTS records. Appeals by mail should be 
addressed to: FOIA Appeals, 1700 G Street, NW., Washington, DC 20552. 
Appeals may be delivered personally to FOIA Appeals, Office of Thrift 
Supervision, 1700 G Street, NW., Washington, DC 20552. Appeals may also 
be sent by e-mail or facsimile to the e-mail address and facsimile 
number in Sec.  505.2 of this part.

PART 506--INFORMATION COLLECTION REQUIREMENTS UNDER THE PAPERWORK 
REDUCTION ACT

    7. The authority citation for part 506 continues to read as 
follows:

    Authority: 44 U.S.C. 3501 et seq.

    8. Amend Sec.  506.1(b) by adding new entries for Sec. Sec.  
551.50, 551.70 through 551.100, 551.140, and 551.150, and by removing 
``Sec.  563.1,'' and adding in lieu thereof ``Sec.  563.3'' to read as 
follows:


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.
------------------------------------------------------------------------
 
                                * * * * *
551.50.....................................................    1550-0109
551.70 through 551.100.....................................    1550-0109
551.140....................................................    1550-0109
551.150....................................................    1550-0109
 
                                * * * * *
563.3......................................................    1550-0027
 
                                * * * * *
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PART 516--APPLICATION PROCESSING PROCEDURES

    9. The authority citation for part 516 continues to read as 
follows:

    Authority: 5 U.S.C. 552, 559; 12 U.S.C. 1462a, 1463, 1464, 2901 
et seq.

    10. Revise Sec.  516.40(a)(2) to read as follows:


Sec.  516.40  Where do I file my application?

    (a) * * *
    (2) The addresses of each Regional Office and the states covered by 
each office are:

----------------------------------------------------------------------------------------------------------------
                    Region                              Office address                    States served
----------------------------------------------------------------------------------------------------------------
Northeast....................................  Office of Thrift Supervision, 10  Connecticut, Delaware, Maine,
                                                Exchange Place, 18th Floor,       Massachusetts, New Hampshire,
                                                Jersey City, New Jersey 07302.    New Jersey, New York, Ohio,
                                                                                  Pennsylvania, Rhode Island,
                                                                                  Vermont, West Virginia
Southeast....................................  Office of Thrift Supervision,     Alabama, District of Columnbia,
                                                1475 Peachtree Street, N.E.,      Florida, Georgia, Illinois,
                                                Atlanta, Georgia 30309 (Mail      Indiana, Kentucky, Maryland,
                                                to: P.O. Box 105217, Atlanta,     Michigan, North Carolina,
                                                Georgia 30348-5217).              Puerto Rico, South Carolina,
                                                                                  Virginia, the Virgin Islands.
Midwest......................................  Office of Thrift Supervision,     Arkansas, Iowa, Kansas,
                                                225 E. John Carpenter Freeway,    Louisiana, Mississippi,
                                                Suite 500, Irving, Texas 75062-   Missouri, Nebraska, Oklahoma,
                                                2326 (Mail to: P.O. Box 619027)   Tennessee, Texas, Wisconsin.
                                                Dallas/Ft. Worth, Texas 75261-
                                                9027).
West.........................................  Office of Thrift Supervision,     Alaska, Arizona, California,
                                                Pacific Plaza, 2001 Junipero      Colorado, Guam, Hawaii, Idaho,
                                                Serra Boulevard, Suite 650,       Montana, Nevada, New Mexico,
                                                Daly City, California 94014-      North Dakota, Northern Mariana
                                                1976 (Mail to: P.O. Box 7165      Islands, Oregon, South Dakota,
                                                San Francisco, California 94120-  Utah, Washington, Wyoming.
                                                7165).
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[[Page 78152]]

* * * * *

PART 541--DEFINITIONS FOR REGULATIONS AFFECTING FEDERAL SAVINGS 
ASSOCIATIONS

    11. The authority citation for part 541 continues to read as 
follows:

    Authority: 12 U.S.C. 1462a, 1463, 1464.

    12. Revise Sec.  541.1 to read as follows:


Sec.  541.1  When do the definitions in this part apply?

    The definitions in this part and in 12 CFR part 561 apply 
throughout this chapter, unless another definition is specifically 
provided.

PART 545--FEDERAL SAVINGS ASSOCIATIONS--OPERATIONS

    13. The authority citation for part 545 continues to read as 
follows:

    Authority: 12 U.S.C. 1462a, 1463, 1464, 1828.


    14. Revise Sec.  545.74(b)(2) to read as follows:


Sec.  545.74  Securities brokerage.

* * * * *
    (b) * * *
    (2) Payment to any employee of the association of a referral fee, 
bonus, or any incentive compensation, in cash or in kind, for referring 
any customer to the service corporation except as may be consistent 
with a ``no-action'' letter received by the association from the U.S. 
Securities and Exchange Commission (``SEC''), stating that the SEC will 
not recommend enforcement action if association employees receive the 
planned referral fee but do not register with a broker-dealer and the 
association does not register as a broker-dealer;
* * * * *

PART 557--DEPOSITS

    15. The authority citation for part 557 continues to read as 
follows:

    Authority: 12 U.S.C. 1462a, 1463, 1464.

    16. Revise the third sentence of Sec.  557.11(b) to read as 
follows:


Sec.  557.11  To what extent does Federal law preempt deposit-related 
State laws?

* * * * *
    (b) * * * Federal savings associations may exercise deposit-related 
powers as authorized under federal law, including this part, without 
regard to state laws purporting to regulate or otherwise affect deposit 
activities, except to the extent provided in Sec.  557.13. * * *

PART 559--SUBORDINATE ORGANIZATIONS

    17. The authority citation for part 559 continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1828.

    18. Revise the chart in the final sentence of Sec.  559.3(e)(2)(ii) 
to read as follows:


Sec.  559.3  What are the characteristics of, and what requirements 
apply to, subordinate organizations of Federal savings associations?

* * * * *

------------------------------------------------------------------------
                                    Operating
                                    subsidiary      Service corporation
------------------------------------------------------------------------
 
                              * * * * * * *
(e) * * *.....................  (1) * * *........   (2)(i) * * *
                                                   (ii) * * * You may
                                                    request OTS approval
                                                    for your service
                                                    corporation to
                                                    engage in any other
                                                    activity reasonably
                                                    related to the
                                                    activities of
                                                    financial
                                                    institutions,
                                                    including the
                                                    activities set forth
                                                    in Sec.   559.4(b)-
                                                    (j), by filing an
                                                    application in
                                                    accordance with
                                                    standard treatment
                                                    processing
                                                    procedures at part
                                                    516, subparts A and
                                                    E of this chapter.
 
                              * * * * * * *
------------------------------------------------------------------------

PART 561--DEFINITIONS FOR REGULATIONS AFFECTING ALL SAVINGS 
ASSOCIATIONS

    19. The authority citation for part 561 continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a.

    20. Revise Sec.  561.1 to read as follows:


Sec.  561.1  When do the definitions in this part apply?

    The definitions in this part and in 12 CFR part 541 apply 
throughout this chapter, unless another definition is specifically 
provided.

PART 563--SAVINGS ASSOCIATIONS--OPERATIONS

    21. The authority citation for part 563 continues to read as 
follows:

    Authority: 12 U.S.C. 375b, 1462, 1462a, 1463, 1464, 1467a, 1468, 
1817, 1820, 1828, 1831o, 3806; 42 U.S.C. 4106.

    22. Revise the first sentence of Sec.  563.146 to read as follows:


Sec.  563.146  Will the OTS permit my capital distribution?

    The OTS will review your notice or application under the review 
procedures in 12 CFR part 516, subpart E. * * *
* * * * *

PART 563e--COMMUNITY REINVESTMENT

    23. 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.

    24. Amend appendix A of part 563e by revising paragraph (e)(3)(iii) 
to read as follows:

Appendix A to Part 563E--Ratings

* * * * *
    (e) * * *
    (3) * * *
    (iii) If the savings association fails to meet substantially its 
plan goals for a satisfactory rating, OTS will rate the savings 
association as either ``needs to improve'' or ``substantial 
noncompliance,'' depending on the extent to which it falls short of 
its plan goals, unless the savings association elected in its plan 
to be rated otherwise, as provided in Sec.  563e.27(f)(4).

PART 563g--SECURITIES OFFERINGS

    25. The authority citation for part 563g continues to read as 
follows:

    Authority: 12 U.S.C. 1462a, 1463, 1464; 15 U.S.C. 78c(b), 78l, 
78m, 78n, 78p, 78w.

[[Page 78153]]

Sec.  563g.19  [Amended]

    26. Amend Sec.  563g.19 by removing ``Sec.  563.1,'' and by adding 
in lieu thereof ``Sec.  563.3.''

PART 575--MUTUAL HOLDING COMPANIES

    27. The authority citation for part 575 continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 1828, 2901.


Sec.  575.7  [Amended]

    28. Amend Sec.  575.7 by removing ``Sec.  563.1'' in paragraph 
(c)(1) and (c)(2) and by adding in lieu thereof ``Sec.  563.3.''

    Dated: December 17, 2002.

    By the Office of Thrift Supervision
James E. Gilleran,
Director.
[FR Doc. 02-32148 Filed 12-20-02; 8:45 am]
BILLING CODE 6720-01-P