[Federal Register Volume 70, Number 248 (Wednesday, December 28, 2005)]
[Rules and Regulations]
[Pages 76674-76676]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-24499]


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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Parts 510, 546, 559, 560, 561, and 567

[No. 2005-57]


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 and corrections of 
typographical errors.

EFFECTIVE DATE: December 28, 2005.

FOR FURTHER INFORMATION CONTACT: Sandra E. Evans, Legal Information 
Assistant (Regulations), (202) 906-6076, 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. OTS is 
making the following miscellaneous changes:
     Part 510--Miscellaneous Organizational Regulations. The 
final rule revises OTS' regulation on waiver or relaxation of 
regulatory provisions with respect to disaster or emergency areas in 
Sec.  510.2(b). The revision indicates that OTS will make such waivers 
by ``order,'' rather than by ``resolution.'' This update in terminology 
better reflects the usual method of operation of OTS, as compared to 
that of its predecessor, the Federal Home Loan Bank Board.
     Part 546--Federal Mutual Savings Associations--Merger, 
Dissolution, Reorganization, and Conversion. The final rule removes the 
name of an office that is no longer in existence and corrects a 
grammatical error.
     Part 559--Subordinate Organizations. The final rule adds 
investments in rural business investment companies (RBICs) to the list 
of preapproved activities for federal savings association service 
corporations. This addition reflects the statutory authority of savings 
associations to make such investments under 7 U.S.C. 2009cc-9. It is 
consistent with the inclusion of investments in small business 
investment companies and new market venture capital companies on the 
list of preapproved activities under the current rule.
     Part 560--Lending and Investment. The final rule adds 
investments in RBICs to the lending and investment powers chart. This 
addition reflects the statutory authority of savings associations to 
establish and invest in such entities, or any entity established to 
invest solely in RBICs, up to five percent of total capital and surplus 
under 7 U.S.C. 2009cc-9.
     Part 561--Definitions for Regulations Affecting All 
Savings Associations. The final rule revises the definition of ``demand 
accounts'' in Sec.  561.16 to delete paragraph (b), remove the 
designation for paragraph (a), and make a grammatical change to the 
text that was formerly designated as

[[Page 76675]]

paragraph (a). OTS is deleting paragraph (b) for consistency with a 
November 28, 2005, Chief Counsel opinion. That opinion concluded that 
the payment of a certain type of finders' fee would not violate the 
prohibition against the payment of interest on demand deposits in 
section 5(b)(1)(B)(i) of the Home Owners' Loan Act, 12 U.S.C. 
1464(b)(1)(B)(i), even though the fees in question would not 
specifically fit the exceptions indicated in paragraph (b). Savings 
associations may, however, continue to rely on the language in 
paragraph (b) as two examples of permissible types of finders' fees.
     Part 567--Capital. The final rule corrects a typographical 
error in Sec.  567.6(b)(5)(v)(B).

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 makes technical changes to existing provisions. 
Because the amendments in the rule are not substantive, these changes 
will not 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\ Public Law 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\ Public Law 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 510

    Administrative practice and procedure.

12 CFR Part 546

    Reporting and recordkeeping requirements, Savings associations.

12 CFR Part 559

    Reporting and recordkeeping requirements, Savings associations, 
Subsidiaries.

12 CFR Part 560

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

12 CFR Part 561

    Savings associations.

12 CFR Part 567

    Savings associations.


0
Accordingly, the Office of Thrift Supervision amends title 12, chapter 
V of the Code of Federal Regulations, as set forth below.

PART 510--MISCELLANEOUS ORGANIZATIONAL REGULATIONS

0
1. The authority citation for part 510 continues to read as follows:

    Authority: 12 U.S.C. 1462a, 1463, 1464; Pub. L. 101-410, 104 
Stat. 890; Pub. L. 104-134, 110 Stat. 1321-358.


Sec.  510.2  [Amended]

0
2. Amend Sec.  510.2(b) by removing the word ``resolution'' and by 
adding the word ``order'' in its place.

PART 546--FEDERAL MUTUAL SAVINGS ASSOCIATIONS--MERGER, DISSOLUTION, 
REORGANIZATION, AND CONVERSION

0
3. The authority citation for part 546 continues to read as follows:

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


Sec.  546.4  [Amended]

0
4-5. Section 546.4 is amended in paragraph (a) by removing the phrase 
``or the Resolution Trust Corporation'', and in paragraph (b) by 
removing the phrase ``and home-financing institutions'' and adding the 
phrase ``or home-financing institutions'' in its place.

PART 559--SUBORDINATE ORGANIZATIONS

0
6. The authority citation for part 559 continues to read as follows:

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

0
7. Revise Sec.  559.4(g) to read as follows:


Sec.  559.4  What activities are preapproved for service corporations?

* * * * *
    (g) Investments. (1) Tax-exempt bonds used to finance residential 
real property for family units;
    (2) Tax-exempt obligations of public housing agencies used to 
finance housing projects with rental assistance subsidies;
    (3) Small business investment companies and new markets venture 
capital companies licensed by the U.S. Small Business Administration;
    (4) Rural business investment companies; and
    (5) Investing in savings accounts of an investing thrift.
* * * * *

PART 560--LENDING AND INVESTMENT

0
8. 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.

0
9. Amend the table in Sec.  560.30 by adding an entry in alphabetical 
order to read as follows:


Sec.  560.30  General lending and investment powers of Federal savings 
associations.

* * * * *

[[Page 76676]]



                                                           Lending and Investment Powers Chart
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                                                                                        Statutory investment limitations (Endnotes  contain applicable
                Category                         Statutory authorization \1\                                regulatory limitations)
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                                                                      * * * * * * *
Rural business investment companies....  7 U.S.C. 2009cc-9..........................  Five percent of total capital.
 
                                                                      * * * * * * *
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Endnotes

    1. All references are to section 5 of the Home Owners' Loan Act 
(12 U.S.C. 1464) unless otherwise indicated.
* * * * *

PART 561--DEFINITIONS FOR REGULATIONS AFFECTING ALL SAVINGS 
ASSOCIATIONS

0
10. The authority citation for part 561 continues to read as follows:

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


0
11. Revise Sec.  561.16 by removing paragraph (b), removing the 
designation for paragraph (a), and revising ``which'' to read ``that'' 
in both instances that it appears.

PART 567--CAPITAL

0
12. The authority citation for part 567 continues to read as follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 1828 
(note).


0
13. Amend 567.6(b)(5)(v)(B) by revising ``1381o(g)'' to read 
``1831o(g)''.

    Dated: December 21, 2005.

    By the Office of Thrift Supervision.
Scott M. Polakoff,
Deputy Director.
[FR Doc. 05-24499 Filed 12-27-05; 8:45 am]
BILLING CODE 6720-01-P