[Federal Register Volume 75, Number 113 (Monday, June 14, 2010)]
[Rules and Regulations]
[Pages 33501-33502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14243]


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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Part 561

[Docket ID OTS-2010-0011]
RIN 1550-AC40


Definitions for Regulations Affecting All Savings Associations; 
Money Market Deposit Accounts

AGENCY: Office of Thrift Supervision, Treasury.

ACTION: Final rule.

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SUMMARY: The Office of Thrift Supervision is amending its regulations 
to eliminate restrictions on certain kinds of transfers from money 
market deposit accounts for savings associations. The Board of 
Governors of the Federal Reserve System (the FRB) has already amended 
its regulations (``Regulation D'') to eliminate these restrictions for 
member banks. Because this change is ministerial, the OTS has 
determined for good cause that public notice and comment is unnecessary 
under the Administrative Procedure Act (APA) and is implementing this 
change by means of a final rule without notice and comment.

DATES: Effective Date: The rule is effective June 14, 2010.

FOR FURTHER INFORMATION CONTACT: Suzanne McQueen, Consumer Regulation 
Analyst, Compliance and Consumer Protection (202) 906-6451, Marvin L. 
Shaw, Senior Attorney, Regulations and Legislation Division, Office of 
the Chief Counsel, (202) 906-6639, Office of Thrift Supervision, 1700 G 
Street, NW., Washington, DC 20552.

SUPPLEMENTARY INFORMATION

I. Background

A. Federal Reserve Board Amendments to Regulation D

    On May 29, 2009, the Board of Governors of the Federal Reserve 
System (FRB) issued final amendments to 12 CFR part 204, ``Reserve 
Requirements of Depository Institutions (Regulation D).'' \1\ Among 
other changes, the amendments eliminate restrictions on certain types 
of transfers that consumers can make from savings deposits. The changes 
became effective on July 2, 2009. In the definition for savings 
deposit, Regulation D lists several types of savings deposit accounts, 
including Money Market Deposit Accounts.
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    \1\ 74 FR 25629.
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    Prior to the FRB amendments, Regulation D limited the number of 
``convenient'' transfers and withdrawals from savings deposits to not 
more than six per month. Within this overall limit of six, not more 
than three transfers or withdrawals could be made by check, debit card, 
or similar order by the depositor and payable to third parties (the 
three transfer sublimit). Under the FRB final amendments to Regulation 
D, the permissible monthly number of transfers or withdrawals from 
savings deposits by check, debit card, or similar order payable to 
third parties has been increased from three to six. In other words, 
while the FRB has decided to retain the overall six-transfer limit for 
savings deposits, it has eliminated the three transfer sublimit within 
the overall limit that applied to transfers or withdrawals from savings 
deposits by check, debit card, or similar order payable to third 
parties. The FRB decided to eliminate the three transfer sublimit 
because distinctions between such transfers and other types of pre-
authorized or automatic transfers subject to the six-per-month limit 
were no longer logical in light of technological advances.

B. OTS Regulations Addressing Savings Accounts

    Pursuant to its authority under the Home Owners' Loan Act 
(HOLA),\2\ OTS issued regulations addressing limits on certain types of 
savings accounts known as Money Market Deposit Accounts (MMDAs) at 12 
CFR 561.28. A second provision--12 CFR 557.10--which addresses OTS's 
authority under HOLA to raise funds through accounts, further specifies 
that ``12 CFR parts 204 [Regulation D] and 230 apply to your deposit 
accounts.''
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    \2\ 12 U.S.C. 1462, 1463, 1464.
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    OTS has received inquiries from savings associations about whether 
the agency is planning to amend its definition of MMDA to make it 
consistent with the FRB and FDIC \3\ regulations. The savings 
associations stated that without such an amendment

[[Page 33502]]

they would be at a competitive disadvantage.
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    \3\ 74 FR 47050 (September 15, 2009).
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C. Amendment to Definition of Money Market Deposit Accounts

    In accord with the FRB amendment to Regulation D and the FDIC's 
amendment to its definition of ``demand deposit,'' OTS is amending its 
definition of Money Market Deposit Accounts in section 561.28 to 
eliminate the three transfer sublimit. This will be done by eliminating 
the proviso in subsection 561.28(a)(2)(i), which currently reads as 
follows: ``Provided, that no more than three of the six transfers 
provided for in this paragraph (a)(2)(i) may be by check, draft, debit 
card, or similar order made by the depositor and payable to a third 
parties.''

II. Exemption From Public Notice and Comment

    To issue a final rule without public notice and comment, an agency 
must find good cause that notice and comment are impracticable, 
unnecessary, or contrary to the public interest. 5 U.S.C. 553(b) 
Similarly, to issue a rule that is immediately effective, the agency 
must find good cause for dispensing with the 30-day delay required by 
the Administrative Procedure Act (APA).
    OTS regulations require that the FRB's Regulation D apply to OTS's 
definition of various savings accounts. To achieve consistency among 
the agencies and to further the intent of OTS's regulation at 12 CFR 
557.10, OTS has decided to eliminate the three transfer sublimit for 
savings associations in the same way that the FRB has done for member 
banks and that the FDIC has done for banks under its jurisdiction. For 
this reason, OTS has determined for good cause that public notice and 
comment is unnecessary under the APA, and that the rule should be 
published in the Federal Register as a final rule.

III. Effective Date

    For the same reasons OTS has determined that public notice and 
comment is unnecessary for good cause, OTS also finds good cause to 
adopt an effective date that would be less than 30 days after the 
publication in the Federal Register pursuant to the APA. 5 U.S.C. 
553(d) Accordingly, the amendment to section 561.28 will be effective 
as of the date of publication in the Federal Register.

IV. Regulatory Flexibility Act

    An initial regulatory flexibility analysis under the Regulatory 
Flexibility Act (RFA) is required only when an agency must publish a 
general notice of proposed rulemaking. 5 U.S.C. 603. As already noted, 
OTS has determined that publication of a notice of proposed rulemaking 
is not necessary for this final rule. Accordingly, the RFA does not 
require an initial regulatory flexibility analysis. Nevertheless, OTS 
has considered the likely impact of the rule on small entities and 
believes that the rule will not have a significant impact on a 
substantial number of small entities.

V. Executive Order 12866

    OTS has determined that this final rule does not constitute a 
``significant regulatory action'' for purposes of Executive Order 
12866.

VI. Unfunded Mandates Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995, Public Law 
104-4 (UMRA) requires that an agency prepare a budgetary impact 
statement before promulgating a rule that includes a Federal mandate 
that may result in the expenditure by state, local, and tribal 
governments, in the aggregate, or by the private sector of $100 million 
or more (adjusted annually for inflation) in any one year. If a 
budgetary impact statement is required, section 205 of the UMRA also 
requires an agency to identify and consider a reasonable number of 
regulatory alternatives before promulgating a rule. The OTS has 
determined that the rule will not result in expenditures by state, 
local, and tribal governments, or by the private sector, of $100 
million or more. Accordingly, OTS has not prepared a budgetary impact 
statement or specifically addressed the regulatory alternatives 
considered.

VII. Paperwork Reduction Act

    No collection of information pursuant to section 3504(h) of the 
Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.) is contained 
in this final rule. Consequently, no information has been submitted to 
the Office of Management and Budget for review.

List of Subjects in 12 CFR Part 561

    Administrative practice and procedure, Savings associations.

0
Accordingly, OTS amends chapter V, title 12, Code of Federal 
Regulations as set forth below.

PART 561--DEFINITIONS FOR REGULATIONS AFFECTING ALL SAVINGS 
ASSOCIATIONS

0
1. The authority citation for part 509 continues to read as follows:

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

    2. Section 561.28 is amended by revising paragraph (a)(2)(i) to 
read as follows:


Sec.  561.28  Money Market Deposit Accounts.

    (a) * * *

0
(2)(i) The depositor is authorized by the savings association to make 
no more than six transfers per calendar month or statement cycle (or 
similar period) of at least four weeks by means of preauthorized, 
automatic, telephonic, or data transmission agreement, order, or 
instruction to another account of the depositor at the same savings 
association to the savings association itself, or to a third party.
* * * * *

    Dated: June 3, 2010.

    By the Office of Thrift Supervision.
John E. Bowman,
Acting Director.
[FR Doc. 2010-14243 Filed 6-11-10; 8:45 am]
BILLING CODE 6720-01-P