[Unified Agenda of Federal Regulatory and Deregulatory Actions]
[Federal Reserve System Semiannual Regulatory Agenda]
[From the U.S. Government Printing Office, www.gpo.gov]



[[Page 22339]]



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Part LIX



Federal Reserve System



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Semiannual Regulatory Agenda

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FEDERAL RESERVE SYSTEM (FRS)                                           




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FEDERAL RESERVE SYSTEM

12 CFR Ch. II

Semiannual Regulatory Flexibility Agenda

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Semiannual regulatory agenda.

_______________________________________________________________________

SUMMARY: The Board is issuing this agenda under the Regulatory 
Flexibility Act and the Board's Statement of Policy Regarding Expanded 
Rulemaking Procedures. The Board anticipates having under consideration 
regulatory matters as indicated below during the period April 1 through 
October 1, 1999. The next agenda will be published in October 1999.

DATES: Comments about the form or content of the agenda may be 
submitted any time during the next 6 months.

ADDRESSES: Comments should be addressed to Jennifer J. Johnson, 
Secretary of the Board, Board of Governors of the Federal Reserve 
System, Washington, DC 20551.

FOR FURTHER INFORMATION CONTACT: A staff contact for each item is 
indicated with the regulatory description below.

SUPPLEMENTARY INFORMATION: The Board is publishing its April 1999 
agenda as part of the April 1999 Unified Agenda of Federal Regulatory 
and Deregulatory Actions, which is coordinated by the Office of 
Management and Budget under Executive Order 12866. The agenda also 
identifies rules the Board has selected for review under section 610(c) 
of the Regulatory Flexibility Act, and public comment is invited on 
those entries. Participation by the Board in the Unified Agenda is on a 
voluntary basis.

    The Board's agenda is divided into three sections. The first, 
Proposed Rule Stage, reports on matters the Board may consider for 
public comment during the next 6 months. The second section, Final 
Rule Stage, reports on matters that have been proposed and are 
under Board consideration. A third section, Completed Actions, 
reports on regulatory matters the Board has completed or is not 
expected to consider further. Matters begun and completed between 
issues of the agenda have not been included.

    A dot () preceding an entry indicates a new matter that 
was not a part of the Board's previous agenda and which the Board 
has not completed.

Barbara R. Lowrey,

Associate Secretary of the Board.

                                               Proposed Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation
 Sequence                                           Title                                            Identifier
  Number                                                                                               Number
----------------------------------------------------------------------------------------------------------------
4292         Regulation: B--Equal Credit Opportunity (Docket Number: R-1008)(Section 610 Review)..    7100-AC54
4293         Regulation: C--Home Mortgage Disclosure (Docket Number: R-1001)......................    7100-AC51
4294         Regulation: T--Credit by Brokers and Dealers; Regulation: U-- Credit by Banks; and       7100-AC45
            Regulation: X--Borrowers of Securities Credit (Docket Number: R-0995).................
4295         Regulation: CC--Availability of Funds and Collection of Checks (Docket Number: R-        7100-AC57
            1031).................................................................................
4296         Section 303 Regulatory Review (Section 610 Review)...................................    7100-AC09
----------------------------------------------------------------------------------------------------------------


                                                Final Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation
 Sequence                                           Title                                            Identifier
  Number                                                                                               Number
----------------------------------------------------------------------------------------------------------------
4297         Regulation: B--Equal Credit Opportunity; and Regulation: Z-- Truth in Lending (Docket    7100-AC46
            Numbers: R-1006 and R-1005)...........................................................
4298         Regulation: D--Reserve Requirements of Depository Institutions (Docket Number: R-        7100-AC11
            0956).................................................................................
4299         Regulation: E--Electronic Fund Transfers (Docket Numbers: R-0919 and R-1002).........    7100-AC06
4300         Regulation: H--Membership of State Banking Institutions in the Federal Reserve System    7100-AC14
            (Docket Number: R-0950)...............................................................
4301         Regulation: H--Membership of State Banking Institutions; Regulation: K--International    7100-AC59
            Banking Operations; and Regulation: Y--Bank Holding Companies (Docket Number: R-1019).
4302         Regulation: H--Membership of State Banking Institutions in the Federal Reserve           7100-AC13
            System; and Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket
            Number: R-0930).......................................................................
4303         Regulation: H--Membership of State Banking Institutions in the Federal Reserve           7100-AC29
            System; and Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket
            No: R-0947 & R-0948)..................................................................
4304         Regulation: H--Membership of State Banking Institutions in the Federal Reserve           7100-AB77
            System; and Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket
            Number: R-0985).......................................................................
4305         Regulation: K--International Banking Operations (Docket Number: R-0994)..............    7100-AC47
4306         Regulation: L--Management Official Interlocks (Docket Number: R-1013)................    7100-AC56
4307         Regulation: M--Consumer Leasing (Docket Number: R-1004)..............................    7100-AC53
4308         Regulation: CC--Availability of Funds and Collection of Checks (Docket Number: R-        7100-AC58
            1027).................................................................................
4309         Regulation: DD--Truth in Savings (Docket Number: R-1003).............................    7100-AC34
4310         Applicability of Sections 23A and 23B of the Federal Reserve Act to Transactions         7100-AC42
            Between a Member Bank and Its Subsidiaries (Docket Number: R-0977)....................

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4311         Applicability of Section 23A to the Purchase of Securities From Certain Affiliates       7100-AC52
            and to Loans and Extensions of Credit Made by a Member Bank to a Third Party (Docket
            Nos: R-1015 & R-1016).................................................................
4312         Rules Regarding Availability of Information (Docket Number: R-0917)..................    7100-AC22
----------------------------------------------------------------------------------------------------------------


                                                Completed Actions
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation
 Sequence                                           Title                                            Identifier
  Number                                                                                               Number
----------------------------------------------------------------------------------------------------------------
4313         Regulation: E--Electronic Fund Transfers (Docket Number: R-1007).....................    7100-AC55
4314         Regulation: H--Membership of State Banking Institutions in the Federal Reserve           7100-AC39
            System; and Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket
            Number: R-0982).......................................................................
4315         Regulation: J--Collection of Checks and Other Items by Federal Reserve Banks; and        7100-AC50
            Regulation: CC--Availability of Funds and Collection of Checks (Docket Number: R-1009)
4316         Regulation: Y--Bank Holding Companies and Change in Bank Control (Docket Number: R-      7100-AC49
            0990).................................................................................
----------------------------------------------------------------------------------------------------------------

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FEDERAL RESERVE SYSTEM (FRS)                        Proposed Rule Stage




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4292. REGULATION: B--EQUAL CREDIT OPPORTUNITY (DOCKET NUMBER: R-
1008)(SECTION 610 REVIEW)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1691

CFR Citation:  12 CFR 202

Legal Deadline: None

Abstract: In March 1998, pursuant to requirements of section 303 of the 
Riegle Community Development and Regulatory Improvement Act of 1994, 
section 610(c) of the Regulatory Flexibility Act of 1994 and section 
2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 
1996, the Board approved issuing for public comment an advance notice 
of proposed rulemaking for Regulation B (63 FR 12326, March 12, 1998) 
which implements the Equal Credit Opportunity Act (ECOA). The ECOA 
makes it unlawful for creditors to discriminate against an applicant in 
any aspect of a credit transaction on the basis of race, color, 
religion, national origin, gender, marital status, age, and other 
specified bases. The review will determine whether Regulation B should 
be revised to address technological and other developments; better 
balance consumer protections and industry burden; and delete obsolete 
provisions. To gather information necessary for this review and to 
ensure the participation of interested parties, the Board solicited 
comment on several specific issues, including preapplication marketing 
practices, inquiry versus application data collection for nonmortgage 
credit products, and creditor liability. The Board also solicited 
comment generally on potential revisions to the regulation.
Following review of the public comments, the Board is expected to take 
further action during the second quarter of 1999. Specific proposals 
will take into account the economic impact on small entities subject to 
the Board's regulation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/12/98                    63 FR 12326
Further Board action by         04/00/99

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

Agency Contact: Natalie E. Taylor, Staff Attorney, Federal Reserve 
System, Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC54
_______________________________________________________________________




4293. REGULATION: C--HOME MORTGAGE DISCLOSURE (DOCKET NUMBER: R-1001)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 2801

CFR Citation:  12 CFR 203

Legal Deadline: None

Abstract: In March 1998, pursuant to requirements of section 303 of the 
Riegle Community Development and Regulatory Improvement Act of 1994 and 
section 2222 of the Economic Growth and Regulatory Paperwork Reduction 
Act of 1996, the Board approved issuing for public comment an advance 
notice of proposed rulemaking for Regulation C which implements the 
Home Mortgage Disclosure Act (HMDA) (63 FR 12329, March 12, 1998). 
Regulation C requires most mortgage lenders located in metropolitan 
statistical areas to report annually to Federal agencies and disclose 
to the public information about their home purchase and home 
improvement lending activity. The review will determine whether 
Regulation C should be revised to address technological and other 
developments; better balance consumer protections and industry burden; 
and delete obsolete provisions. To gather information necessary for 
this review and to ensure the participation of interested parties, the 
Board solicited

[[Page 22342]]

comment on several specific issues, while also soliciting comment 
generally on potential revisions to the regulation.
It is not anticipated that any proposed notice of rulemaking would have 
a significant economic impact on a substantial number of small entities 
subject to the Board's regulation. Following review of the public 
comments, the Board is expected to take further action during the 
second quarter of 1999.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/12/98                    63 FR 12329
Further Board action by         04/00/99

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

Agency Contact: Jane Jensen Gell, Senior Attorney, Federal Reserve 
System, Division of Consumer and Community Affairs
Phone: 202 452-3667

RIN: 7100-AC51
_______________________________________________________________________




4294. REGULATION: T--CREDIT BY BROKERS AND DEALERS; REGULATION: U--
CREDIT BY BANKS; AND REGULATION: X--BORROWERS OF SECURITIES CREDIT 
(DOCKET NUMBER: R-0995)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 78G, Securities Exchange Act of 1934, as 
amended

CFR Citation:  12 CFR 220; 12 CFR 221; 12 CFR 224

Legal Deadline: None

Abstract: As part of the regular review of its regulations and in 
accordance with requirements of section 303 of the Riegle Community 
Development and Regulatory Improvement Act of 1994 and section 610(c) 
of the Regulatory Flexibility Act of 1994, the Board is conducting a 
review of its margin regulations. In order to complete this review, the 
Board approved issuing for public comment an advance notice of proposed 
rulemaking and request for comment in December 1997 (63 FR 2840, 
January 16, 1998). The advance notice highlights issues raised by 
commenters in response to previous requests for comment that had not 
been addressed by the Board in the course of its periodic review. It 
also provides an opportunity to further harmonize the treatment of bank 
and nonbank lenders under the revised Regulation U adopted by the Board 
at the same time as the advance notice. The advance notice also invites 
comment on all areas of the regulations.
Following review of the public comments, the Board is expected to take 
further action within the next two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         01/16/98                     63 FR 2840
Further Board action by         04/00/99

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

Agency Contact: Scott Holz, Counsel, Federal Reserve System, Legal 
Division
Phone: 202 452-2966

RIN: 7100-AC45
_______________________________________________________________________




4295.  REGULATION: CC--AVAILABILITY OF FUNDS AND COLLECTION OF 
CHECKS (DOCKET NUMBER: R-1031)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 4001 et seq

CFR Citation:  12 CFR 229

Legal Deadline: None

Abstract: In December 1998, the Board approved issuing for public 
comment an advance notice of proposed rulemaking on the potential 
benefits and drawbacks of a modification to Regulation CC that would 
shorten the maximum hold for many nonlocal checks from five to four 
business days (63 FR 69027, December 15, 1998). This modification would 
allow a depositary bank to retain a five-day schedule for categories on 
nonlocal checks for which it certifies that it does not receive a 
sufficient proportion of returned checks within four business days. 
This proposal is one of several alternative modifications to the 
nonlocal check availability schedule that the Board is considering. The 
objective of such a rule change would be to provide bank customers with 
faster funds availability when appropriate, in accordance with the 
Expedited Funds Availability Act. If adopted, shorter availability 
schedules would affect all depository institutions. The Board does not 
believe that the shorter schedules would be likely to have a 
significant economic impact on small institutions, as a substantial 
number of those institutions already provide availability for nonlocal 
checks faster than the regulatory maximum time frames.
Following review of the public comments, the Board is expected to take 
further action during the first half of 1999.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/15/98                    63 FR 69027
Further Board action by         06/00/99

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

Agency Contact: Jack Walton, Manager, Federal Reserve System, Division 
of Reserve Bank Operations and Payment Systems
Phone: 202 452-2660

RIN: 7100-AC57
_______________________________________________________________________




4296. SECTION 303 REGULATORY REVIEW (SECTION 610 REVIEW)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 4803(a)(1); 5 USC 610

CFR Citation:  12 CFR ch II

Legal Deadline:
Other, Statutory, September 23, 1996, Progress Report due to Congress.

Abstract: In response to the requirements of section 303 of the Riegle 
Community Development and Regulatory Improvement Act of 1994, the Board 
is reviewing its regulations for purposes of streamlining, improving 
efficiency, reducing unnecessary costs, and removing inconsistencies 
and outmoded/duplicative requirements. The Board is also working 
jointly with the other banking agencies to make uniform regulations and 
guidelines implementing common statutory and supervisory policies. A 
regulatory review timetable was published in the Federal Register in 
October 1995 (60 FR 53546, October 16, 1995). A progress report was 
sent to the Congress in September 1996. Within the next twelve months, 
it is expected that the Board will seek public comment during the 
course of the reviews of the

[[Page 22343]]

regulations/policy statements/other regulatory guidance listed below. 
Reviews already proposed for public comment appear elsewhere in the 
Agenda.
Items below indicated with an asterisk will also be reviewed by the 
Board in accordance with the periodic review requirements of section 
610 of the Regulatory Flexibility Act:
Regulations H and Y, Appendices, Capital Adequacy Guidelines.
*Regulation Z, Truth in Lending.
*Regulation DD, Truth in Savings.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board action expected during the 
next twelve months              02/00/00

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

Agency Contact: Barbara R. Lowrey, Associate Secretary, Federal Reserve 
System, Office of the Secretary
Phone: 202 452-3742

RIN: 7100-AC09
_______________________________________________________________________


FEDERAL RESERVE SYSTEM (FRS)                           Final Rule Stage




_______________________________________________________________________




4297. REGULATION: B--EQUAL CREDIT OPPORTUNITY; AND REGULATION: Z--TRUTH 
IN LENDING (DOCKET NUMBERS: R-1006 AND R-1005)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1601 et seq; 12 USC 4301 et seq

CFR Citation:  12 CFR 202; 12 CFR 213; 12 CFR 226; 12 CFR 230

Legal Deadline: None

Abstract: In March 1998, the Board issued for public comment proposals 
to amend its consumer regulations, B (Equal Credit Opportunity), and Z 
(Truth in Lending), to permit electronic communications to substitute 
generally for oral or written disclosures documentation, and notices 
required under the individual regulations (63 FR 14548, March 25, 
1998). Comment was also requested on similar amendments to Regulations 
M (Consumer Leasing) and DD (Truth in Savings) described in separate 
entries in the Agenda (see Docket Numbers: R-1004 and R-1003). At the 
same time, similar amendments to Regulation E, proposed as part of the 
Board's overall review of its regulations as required by section 303 of 
the Riegle Community Development and Regulatory Improvement Act of 
1994, were adopted as an interim rule (Docket Number: R-0919; RIN: 
7100-AC06). The Board identified the use of electronic communication 
between consumers and financial institutions as an area that offered an 
opportunity to reduce regulatory compliance burden without adversely 
affecting consumer protections.
It is not anticipated that the proposals would have a significant 
economic impact on small institutions. Based on comments received in 
response to the March proposals, it is expected that the Board will 
consider publishing for comment additional proposals within the next 
two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/25/98                    63 FR 14548
Further Board action by         04/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Michael Hentrel, Attorney, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC46
_______________________________________________________________________




4298. REGULATION: D--RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 
(DOCKET NUMBER: R-0956)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 248(a); 12 USC 248(c); 12 USC 371a; 12 USC 
461; 12 USC 601; 12 USC 611; 12 USC 3105

CFR Citation:  12 CFR 204

Legal Deadline: None

Abstract: In December 1996, the Board issued for public comment a 
proposed rule that would revise and clarify the definition of ``savings 
deposit'' consistent with comments received in connection with the 
Board's June 1996 proposal to simplify Regulation D. The proposal would 
also make conforming changes to the definition of ``transaction 
account'' (61 FR 96054, December 31, 1996). No substantive change in 
the regulation is intended. It is not expected that the proposal will 
have a significant adverse impact upon a substantial number of small 
entities. Following review of the public comments, the Board is 
expected to take further action by mid-year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/31/96                    61 FR 69054
Further Board action by         07/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Rick Heyke, Staff Attorney, Federal Reserve System, 
Legal Division
Phone: 202 452-3688

RIN: 7100-AC11
_______________________________________________________________________




4299. REGULATION: E--ELECTRONIC FUND TRANSFERS (DOCKET NUMBERS: R-0919 
AND R-1002)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1693 et seq

CFR Citation:  12 CFR 205

Legal Deadline: None

Abstract: In May 1996, the Board issued for public comment proposed 
amendments to Regulation E imposing modified requirements on stored-
value products in systems that track individual transactions, cards, or 
consumers and providing an exemption for cards on which a maximum value 
of $100 can be stored (Docket Number: R-0919; 61 FR 19696, May 2, 
1996).
The Board also proposed extending the error resolution time limits for 
new accounts and permitting electronic communications to substitute 
generally for oral or written disclosures documentation, and notices 
required under Regulation E.

[[Page 22344]]


The proposals were part of the Board's overall review of its 
regulations as required by section 303 of the Riegle Community 
Development and Regulatory Improvement Act of 1994 and section 610(c) 
of the Regulatory Flexibility Act of 1994. It is not expected that the 
proposals would have a significant economic impact on small 
institutions.
In March 1998, following review of the public comments, the Board 
issued an interim rule, with request for comments, to permit electronic 
communications to substitute for disclosures, documentation, and 
notices under Regulation E (Docket Number: R-1002; 63 FR 14528, March 
25, 1998). In September 1998, the Board adopted the proposal extending 
the time periods resolving errors on new accounts substantially as 
proposed (63 FR 52115, September 29, 1998). Based on public comments 
received, it is anticipated that the Board will consider publishing 
additional proposals for comment on the electronic communications rule 
within the next two months. Action on the stored-value card amendment 
is expected by year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         05/02/96                    61 FR 19696
Board adopted interim rule on 
electronic communications       03/25/98                    63 FR 14528
Board adopted final rule on new 
accounts                        09/29/98                    63 FR 52115
Further Board action on 
electronic communications by    04/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: John C. Wood, Senior Attorney, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC06
_______________________________________________________________________




4300. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM (DOCKET NUMBER: R-0950)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 36; 12 USC 248(a); 12 USC 248(c); 12 USC 321 
to 338a; 12 USC 371d; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC 
611; 12 USC 1814; 12 USC 1818; 12 USC 1823(j); 12 USC 1828(o); 12 USC 
1831o; 12 USC 1831p-1; ...

CFR Citation:  12 CFR 208

Legal Deadline: None

Abstract: In December 1996, the Board, the Federal Deposit Insurance 
Corporation, and the Office of the Comptroller of the Currency jointly 
published for comment a proposed regulation establishing a professional 
qualification program for banks that engage in retail recommendations 
and sales of certain securities using their own employees (61 FR 68824, 
December 30, 1996). The proposed regulation will establish 
qualification testing registration and continuing education 
requirements for bank employees that act in the capacity of bank 
securities representatives. The proposed requirements will be based on 
the professional qualification rules of the securities self-regulatory 
organizations. It is not anticipated that the proposal will have a 
significant economic impact on a substantial number of small banks.
Following review of the public comments and coordination with the other 
agencies, the Board is expected to take further action within the next 
two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/30/96                    61 FR 68824
Further Board action by         04/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Angela Desmond, Senior Counsel, Federal Reserve System, 
Division of Banking Supervision and Regulation
Phone: 202 452-3497

RIN: 7100-AC14
_______________________________________________________________________




4301.  REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS; 
REGULATION: K--INTERNATIONAL BANKING OPERATIONS; AND REGULATION: Y--BANK 
HOLDING COMPANIES (DOCKET NUMBER: R-1019)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 1818(s)(1); 12 USC 1831p-1(a)(2)

CFR Citation:  12 CFR 208; 12 CFR 211; 12 CFR 225

Legal Deadline: None

Abstract: In December 1998, the Board approved issuing for public 
comment a proposal to require domestic and foreign banking 
organizations supervised by the Board to develop and maintain ``Know 
Your Customer'' programs (63 FR 67516, December 7, 1998). As proposed, 
the regulations would require each banking organization to develop a 
program designed to determine the identity of its customers; determine 
its customers' sources of funds; determine, understand, and monitor the 
normal and expected transactions of its customers; and report 
appropriately any transactions of its customers that are determined to 
be suspicious, in accordance with the Board's existing suspicious 
activity reporting regulations. The proposal is intended to protect the 
reputation of the bank, facilitate the bank's compliance with all 
applicable statues and regulations (including the Bank Secrecy Act and 
the suspicious activity reporting requirements of 12 CFR 208.20) and 
with safe and sound banking practices, and protect the bank from 
becoming a vehicle for or a victim of illegal activities perpetrated by 
its customers. By requiring banking organizations to determine the 
identity of their customers, as well as to obtain knowledge regarding 
the legitimate activities of their customers, it is believed that the 
proposed regulation will reduce the likelihood that banking 
organizations will become unwitting participants in illicit activities 
conducted or attempted by their customers.
It is not expected that the proposal will have a significant economic 
impact on a substantial number of small entities subject to the Board's 
regulation. Board staff has been meeting with staffs of the Office of 
the Comptroller of the Currency, the Federal Deposit

[[Page 22345]]

Insurance Corporation, and the Office of Thrift Supervision, all of 
whom issued similar regulations, to review the unprecedented number of 
public comments and consider options for further action. The ``Know 
Your Customer'' proposal is expected to be considered by the Board on 
March 23, while action on technical amendments to Regulations K and Y 
in R-1019 is expected within the next two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/07/98                    63 FR 67516
Board consideration of ``Know 
Your Customer'' on              03/23/99
Board action on technical 
amendments                      04/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Richard Small, Assistant Director, Federal Reserve 
System, Division of Banking Supervision and Regulation
Phone: 202 452-5235

RIN: 7100-AC59
_______________________________________________________________________




4302. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0930)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 36; 12 USC 248(a); 12 USC 248(c); 12 USC 321 
to 338a; 12 USC 371d; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC 
611; 12 USC 1814; 12 USC 1823(j); 12 USC 1828(o); 12 USC 1831(o); 12 
USC 1831p-1; 12 USC 3105; ...

CFR Citation:  12 CFR 208 app A

Legal Deadline: None

Abstract: In August 1996, the Board issued for public comment a 
proposal to revise the risk-based capital treatment for certain 
collateralized transactions (61 FR 42565, August 16, 1996). Under the 
Board's existing risk-based capital treatment, the portion of a 
transaction that is supported by qualifying collateral (that is, cash 
or OECD government securities) is risk-weighted at 20 percent. 
Transactions that are fully supported by collateral with a positive 
margin may be eligible for a zero percent risk weight. Generally, the 
proposal would permit a portion of a transaction that is fully 
supported with a positive margin of collateral to be eligible for a 
zero percent risk weight. The portion that is to be continuously 
collateralized must be specified by the parties.
This proposal was developed on an interagency basis and, if adopted, 
would eliminate one of the substantive differences among the agencies 
with regard to the risk-based capital treatment for collateralized 
transactions. It would implement part of the Riegle Community 
Development and Regulatory Improvement Act of 1994, which requires the 
agencies to make uniform regulations and guidelines implementing common 
supervisory policies. The effect of the proposal would be to allow 
institutions to hold less capital for certain collateralized 
transactions. It is not expected to have a significant economic impact 
on a substantial number of small entities.
Following review of the public comments and development of an inter-
agency final rule, the Board is expected to take further action by mid-
year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/16/96                    61 FR 42565
Further Board action by         06/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: John Connolly, Supervisory Financial Analyst, Federal 
Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-3621

RIN: 7100-AC13
_______________________________________________________________________




4303. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NO: R-0947 & R-0948)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 36; 12 USC 248(a); 12 USC 248(c); 12 USC 321 
to 338a; 12 USC 371d; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC 
611; 12 USC 1814; 12 USC 1816; 12 USC 1818; 12 USC 1823(j); 12 USC 
1828(o); 12 USC 1831o; ...

CFR Citation:  12 CFR 208 app A; 12 CFR 208 app B; 12 CFR 225 app A; 12 
CFR 225 app D

Legal Deadline: None

Abstract: In October 1997, the Board issued for public comment 
proposals to revise the Federal Reserve's risk-based capital treatment 
for junior liens on 1- to 4-family residential properties and for 
investments in mutual funds (62 FR 55686, October 27, 1997). The 
proposals also simplify the Federal Reserve's leverage capital 
guidelines for banks and make the leverage capital guidelines for bank 
holding companies consistent with the definition of a well-capitalized 
bank holding company for expedited applications purposes.
The proposals were issued on an interagency basis as part of the 
efforts under section 303 of the Riegle Community Development and 
Regulatory Improvement Act of 1994 to make interagency guidelines 
uniform. In June 1998, following review of the public comments, the 
Board adopted the proposed revisions to the bank holding company 
leverage ratio (63 FR 30369, June 4, 1998). Action by the Board and 
other agencies on the proposals for banks and thrifts is expected 
within the next two months. The proposed changes will not have a 
significant economic impact on a substantial number of small entities 
subject to the Board's regulation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         10/27/97                    62 FR 55686
Board adopted bank holding 
company proposal                06/04/98                    63 FR 30369
Further Board action by         04/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Kirk Odegard, Senior Financial Analyst, Federal Reserve 
System, Division of Banking Supervision and Regulation
Phone: 202 530-6225

RIN: 7100-AC29


_______________________________________________________________________



[[Page 22346]]

4304. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0985)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 36; 12 USC 248(a); 12 USC 248(c); 12 USC 321 
to 338; 12 USC 371d; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC 
611; 12 USC 1814; 12 USC 1817(j)(13); 12 USC 1818; 12 USC 1823(j); 12 
USC 1828(o); 12 USC 1831i

CFR Citation:  12 CFR 208 app A; 12 CFR 225 app A

Legal Deadline: None

Abstract: In May 1994, the Board issued for public comment two 
proposals on the capital treatment of recourse arrangements and direct 
credit substitutes. The first proposal: (1) formally defines recourse 
and direct credit substitutes; (2) reduces the risk-based capital 
charge for low-level recourse arrangements to the maximum amount of 
possible loss under the recourse obligation up to the effective capital 
charge; and (3) requires the same risk-based capital charge for first-
loss direct credit substitutes as is currently applied to recourse 
transactions (59 FR 27115, May 25 1994). The second proposal, an 
advance notice of proposed rulemaking, sought public comment on an 
approach to assessing risk-based capital on banking organizations' risk 
exposures associated with certain asset securitizations. Under this 
approach, the capital charge would be based upon the relative risk of 
loss.
Subsequent to the issuance of this proposal, the Board issued a 
regulation limiting the amount of risk-based capital an insured 
depository institution is required to hold for assets transferred with 
recourse to the maximum amount of recourse for which the institution is 
contractually liable (60 FR 8177, February 13 1995).
In November 1997, the Board requested public comment on a revised 
proposal that sets forth the definitions and capital treatments 
discussed above (62 FR 59944, November 5, 1997). In addition, the 
proposal requests comment on several alternative approaches to 
assessing capital against asset securitizations including the use of 
internal bank information.
Small entities would be affected by the final rule and the two 
proposals only to the extent that they engage in extending recourse 
arrangements and direct credit substitutes or purchasing asset-backed 
securities. It is not expected that the proposals will have a 
significant economic impact on small institutions. Following review of 
the public comments, the Board is expected to take further action by 
mid-year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         05/25/94                    59 FR 27115
Board adopted one aspect of the 
proposal                        02/13/95                     60 FR 8177
Board requested comment on a 
revised proposal                11/05/97                    62 FR 59944
Further Board action by         06/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Thomas R. Boemio, Senior Supervisory Financial Analyst, 
Federal Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-2982

RIN: 7100-AB77
_______________________________________________________________________




4305. REGULATION: K--INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: R-
0994)

Priority:  Substantive, Nonsignificant. Major under 5 USC 801.

Legal Authority:  12 USC 221 et seq; 12 USC 248(i); 12 USC 248(k); 12 
USC 1818; 12 USC 1835a; 12 USC 1841 et seq; 12 USC 3101 et seq; 12 USC 
3109 et seq

CFR Citation:  12 CFR 211

Legal Deadline: None

Abstract: In December 1997, consistent with section 303 of the Riegle 
Community Development and Regulatory Improvement Act of 1994, the 
International Banking Act of 1978, and section 2222 of the Economic 
Growth and Regulatory Paperwork Reduction Act of 1996 the Board 
reviewed and proposed for public comment a number of changes to 
Regulation K which governs international banking operations (62 FR 
68424, December 31, 1997). Subpart A of Regulation K governs the 
foreign investments and activities of all member banks. The proposed 
amendments include streamlined foreign branching procedures for U.S. 
banking organizations, authorization of expanded activities in foreign 
branches of U.S. banks, and expansion of the authority of U.S. banking 
organizations to engage in equity dealing and underwriting and to make 
venture capital investments outside the United States. Subpart B of 
Regulation K governs the U.S. activities of foreign banking 
organizations. The proposed amendments include revisions aimed at 
streamlining the applications procedures applicable to foreign banks 
seeking to expand operations in the United States, changes to 
provisions regarding the qualification of certain foreign banking 
organizations for exemption from the nonbanking prohibitions of section 
4 of the Bank Holding Company Act, and implementation of provisions of 
the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 
that affect foreign banks. In addition, a number of technical and 
clarifying amendments to subparts A and B, as well as to subpart C 
which governs export trading companies, and certain amendments to the 
Board's Rules Regarding Delegation of Authority have been proposed.
The proposed amendments are not expected to have a significant economic 
impact on a substantial number of small entities. Following review of 
the public comments, the Board is expected to take further action 
within the next six months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/31/97                    62 FR 68424
Further Board action by         07/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Kathleen M. O'Day, Associate General Counsel, Federal 
Reserve System, Legal Division
Phone: 202 452-3786

RIN: 7100-AC47


_______________________________________________________________________



[[Page 22347]]

4306. REGULATION: L--MANAGEMENT OFFICIAL INTERLOCKS (DOCKET NUMBER: R-
1013)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 3201 et seq

CFR Citation:  12 CFR 212

Legal Deadline: None

Abstract: In August 1998, the Board, along with the other Federal 
depository institution regulatory agencies, approved issuing for public 
comment a proposal to amend regulations, including the Board's 
Regulation L, governing depository institution management interlocks to 
reflect certain statutory changes (63 FR 43051, August 11, 1998). In 
addition to implementing these statutory changes, the agencies also 
proposed a small market share exemption for institutions that, on a 
combined basis, control less than 20 percent of the deposits in a 
community or relevant metropolitan statistical area. The exemption is 
intended to enlarge the pool of management talent upon which depository 
institutions may draw and thereby enhance the competitiveness of these 
institutions.
It is not anticipated that the proposal will have a significant impact 
on a substantial number of small entities subject to the Board's 
regulation. Following review of the public comments, the Board is 
expected to take further action within the next six months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/11/98                    63 FR 43051
Further Board action by         08/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Thomas Corsi, Senior Counsel, Federal Reserve System, 
Legal Division
Phone: 202 452-3275

RIN: 7100-AC56
_______________________________________________________________________




4307. REGULATION: M--CONSUMER LEASING (DOCKET NUMBER: R-1004)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1667

CFR Citation:  12 CFR 213

Legal Deadline: None

Abstract: As part of the Board's overall review of its regulations 
under section 610(c) of the Regulatory Flexibility Act of 1994 and 
section 303 of the Riegle Community Development and Regulatory 
Improvement Act of 1994, the Board determined that the use of 
electronic communications to deliver information to consumers that is 
required by Federal consumer financial services and fair lending laws 
could effectively reduce regulatory compliance burden without adversely 
affecting consumer protections. In March 1998, the Board approved 
issuing for public comment a proposal to amend Regulation M that would 
allow lessors to deliver by electronic communication the disclosures 
required by the Consumer Leasing Act and the Board's regulation, if the 
consumer agrees to such delivery (63 FR 14538, March 25, 1998). In 
addition, the proposal contains several technical amendments that would 
be made to the regulation and commentary.
In September 1998, the Board adopted several technical amendments, and 
provided guidance on the treatment of taxes and on rounding issues 
related to the payment calculation disclosure (63 FR 52107, September 
29, 1998). Based on public comments, it is anticipated that the Board 
will consider publishing additional proposals for comment within the 
next two months to permit lessors to deliver by electronic 
communication disclosures required by the act and the Board's 
regulation.
It is not anticipated that the rule will have any significant impact on 
small entities. The rule relieves compliance burden and gives lessors 
flexibility in providing disclosures.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/25/98                    63 FR 14538
Board adopted technical 
amendments                      09/29/98                    63 FR 52107
Further Board action on 
electronic communications by    04/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Obrea O. Poindexter, Staff Attorney, Federal Reserve 
System, Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC53
_______________________________________________________________________




4308.  REGULATION: CC--AVAILABILITY OF FUNDS AND COLLECTION OF 
CHECKS (DOCKET NUMBER: R-1027)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 4001 et seq

CFR Citation:  12 CFR 229

Legal Deadline: None

Abstract: In December 1998, the Board issued for public comment 
proposed amendments to Regulation CC to allow banks that consummate a 
merger on or after July 1, 1998, and before June 1, 1999, greater time 
to implement software changes related to the merger (63 FR 66499, 
December 2, 1998). Comment is requested on the need for this amendment 
and whether the proposed liberalization of the regulation's merger 
transaction provisions is adequate to avoid contention for programming 
and testing resources necessary to manage banks' Year 2000 readiness 
efforts that otherwise would be created by these requirements.
The proposed amendments are intended to provide relief to banks 
involved in mergers, including small institutions, by reducing required 
changes to their automation environment during the period surrounding 
the century rollover, and should not have a negative economic impact on 
small institutions. Following review of the public comments, the Board 
is expected to take further action within the next two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/02/98                    63 FR 66499
Further Board action by         04/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Jean Anderson, Staff Attorney, Federal Reserve System, 
Legal Division
Phone: 202 452-3707

RIN: 7100-AC58


_______________________________________________________________________



[[Page 22348]]

4309. REGULATION: DD--TRUTH IN SAVINGS (DOCKET NUMBER: R-1003)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 4301 et seq

CFR Citation:  12 CFR 230

Legal Deadline: None

Abstract: Sections 261 to 275 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 require depository institutions to 
provide a schedule of terms, rates, and fees for deposit accounts 
offered by the institution. The law also sets forth rules for 
advertisements for deposit accounts.
In September 1996, the Congress amended the Truth in Savings Act (TISA) 
as a part of the Economic Growth and Regulatory Paperwork Reduction Act 
of 1996. The amendments repeal the definition of ``indoor lobby sign,'' 
eliminate any disclosure requirements for nonrenewing time accounts 
with terms less than 30 days, and exempt certain credit unions from 
coverage. In March 1998, the Board issued for public comment a proposal 
that would implement the statutory changes (63 FR 14533, March 25, 
1998). The proposal would also allow depository institutions to deliver 
by electronic communication disclosures required by TISA and the 
Board's regulation, if the consumer agrees to such delivery.
In September 1998 following review of the public comments, the Board 
adopted final amendments implementing the statutory changes 
substantially as proposed (63 FR 52106, September 29, 1998). It is not 
expected that there will be a significant economic impact on small 
institutions. Based on public comments received on the electronic 
communications proposal, it is expected that the Board will consider 
publishing additional proposals for comment within the next two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/25/98                    63 FR 14533
Board adopted statutory changes 09/29/98                    63 FR 52106
Further Board action on 
electronic communications by    04/00/99

Regulatory Flexibility Analysis Required: No
Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Obrea O. Poindexter, Staff Attorney, Federal Reserve 
System, Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC34
_______________________________________________________________________




4310. APPLICABILITY OF SECTIONS 23A AND 23B OF THE FEDERAL RESERVE ACT 
TO TRANSACTIONS BETWEEN A MEMBER BANK AND ITS SUBSIDIARIES (DOCKET 
NUMBER: R-0977)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 371c(b)(1)(E)

CFR Citation:  12 CFR 250.243

Legal Deadline: None

Abstract: Sections 23A and 23B of the Federal Reserve Act restrict the 
ability of a member bank to fund an affiliate through direct 
investment, loans, or other transactions. In July 1997, the Board 
issued for public comment a proposal to apply sections 23A and 23B to 
transactions between a member bank and any subsidiary that engages in 
activities that are impermissible for the bank itself and that Congress 
has not previously exempted from coverage by section 23A (62 FR 37744, 
July 15, 1997). The proposed treatment is largely consistent with the 
existing treatment of these subsidiaries by the other banking agencies, 
which have applied sections 23A and 23B in some form to transactions 
between a bank and such subsidiaries. The issuance of the proposals 
will avoid the application of sections 23A and 23B on an ad hoc basis 
by different agencies, which could result in confusion and 
inconsistencies.
The proposal is not expected to have a significant economic impact on a 
substantial number of small businesses. Following review of the public 
comments, the Board is expected to take further action by mid-year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         07/15/97                    62 FR 37744
Further Board action by         06/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: State, Federal

Agency Contact: Pamela G. Nardolilli, Senior Attorney, Federal Reserve 
System, Legal Division
Phone: 202 452-3289

RIN: 7100-AC42
_______________________________________________________________________




4311. APPLICABILITY OF SECTION 23A TO THE PURCHASE OF SECURITIES FROM 
CERTAIN AFFILIATES AND TO LOANS AND EXTENSIONS OF CREDIT MADE BY A 
MEMBER BANK TO A THIRD PARTY (DOCKET NOS: R-1015 & R-1016)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 371c

CFR Citation:  12 CFR 250

Legal Deadline: None

Abstract: In June 1998, the Board issued for public comment two 
proposed rules to exempt certain transactions from the restrictions of 
section 23A of the Federal Reserve Act (63 FR 32766, June 16, 1998). 
Section 23A restricts the ability of a member bank to fund its 
affiliates through direct investment, loans, or certain other 
transactions (covered transactions). These proposals are in response to 
concerns raised by organizations when the Board earlier proposed 
removal of certain firewalls between insured depository institutions 
and their section 20 securities affiliates. Several petitioners stated 
then that although the removal of the firewalls was welcomed, section 
23A continued to limit certain transactions with their section 20 
subsidiaries that do not raise significant safety and soundness issues 
and impeded the efficient operation of the insured depository 
institutions.
In Docket Number: R-1015, the Board is proposing to expand the kind of 
assets that may be eligible for the (d)(6) exemption to include 
securities that, although not so widely traded as to warrant 
publication of their activity in publications of general circulation, 
are actively traded and whose price can be obtained from independent 
reliable sources, if the securities are purchased from a registered 
broker-dealer.
In Docket Number: R-1016, the Board is proposing to grant two 
exemptions from section 23A for certain loans and extension of credit 
made by an insured depository institution to customers that use the 
proceeds to purchase certain securities from or through the depository 
institution's registered broker-dealer affiliate. The first

[[Page 22349]]

exemption would apply when the affiliate is acting solely as a broker 
or riskless principal in the securities transaction. The second 
exemption would apply when the extension of credit is made pursuant to 
a pre-existing line of credit that was not established for the purposes 
of buying securities from or through an affiliate.
Following review of the public comments, the Board is expected to take 
further action by mid-year. It is not anticipated that the proposals 
will have a significant economic impact on a substantial number of 
small entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         06/16/98                    63 FR 32766
Further Board action by         06/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Pamela Nardolilli, Senior Counsel, Federal Reserve 
System, Legal Division
Phone: 202 452-3289

RIN: 7100-AC52
_______________________________________________________________________




4312. RULES REGARDING AVAILABILITY OF INFORMATION (DOCKET NUMBER: R-
0917)

Priority:  Substantive, Nonsignificant

Legal Authority:  5 USC 552; 12 USC 248(i); 12 USC 248(k); 12 USC 321 
et seq; 12 USC 611 et seq; 12 USC 1442; 12 USC 1817(a)(2)(A); 12 USC 
1817(a)(8); 12 USC 1818(u); 12 USC 1818(v); 12 USC 1821(o); 12 USC 
1821(t); 12 USC 1830; 12 USC 1844; 12 USC 1951 et seq; ...

CFR Citation:  12 CFR 261

Legal Deadline: None

Abstract: In February 1996, the Board issued for public comment 
proposed amendments to its Rules Regarding Availability of Information 
(61 FR 7436, February 28, 1996). The proposed amendments, although 
primarily technical in nature, are intended to improve the Board's 
efficiency in processing requests for the disclosure of publicly 
available information as well as confidential supervisory information. 
It is not anticipated that the proposed amendments will have a 
significant economic impact on a substantial number of small entities 
subject to the regulation.
In light of the passage of time since the Board's February 1996 
proposal was issued for public comment, the Board will make changes in 
that proposal based on the comments received and will reissue revised 
proposed amendments for further comment. The February 1996 proposal 
deals primarily with the discretionary authority of the Board's General 
Counsel to produce information. These amendments are part of the 
Board's overall review of its regulations as required by section 303 of 
the Riegle Community Development and Regulatory Improvement Act of 
1994. Further Board action on the remainder of the regulation is 
expected by year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         02/28/96                     61 FR 7436
Further Board action by         12/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Karen Appelbaum, Attorney, Federal Reserve System, 
Legal Division
Phone: 202 452-3389

RIN: 7100-AC22
_______________________________________________________________________


FEDERAL RESERVE SYSTEM (FRS)                          Completed Actions




_______________________________________________________________________




4313. REGULATION: E--ELECTRONIC FUND TRANSFERS (DOCKET NUMBER: R-1007)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 1693 et seq

CFR Citation:  12 CFR 205

Legal Deadline: None

Abstract: In March 1998, the Board issued for public comment proposed 
amendments to Regulation E to eliminate the extended time periods for 
investigating error claims involving point-of-sale (POS) debit card and 
foreign-initiated electronic fund transfers (63 FR 14555, March 25, 
1998). Under Regulation E, financial institutions generally have 10 
business days to provisionally credit an account and up to 45 calendar 
days to complete an investigation of a claimed error involving an 
electronic fund transfer to or from a consumer account. For POS and 
foreign transactions, institutions have up to 20 business days to 
provisionally credit an account and up to 90 calendar days to complete 
the investigation. The proposed rule also contained a technical 
amendment to a model form.
In September 1998, following review of the public comments, the Board 
adopted the amendments substantially as proposed, except that the Board 
did not reduce the 90 calendar days to complete an investigation (63 FR 
52115, September 29, 1998). The rule also included final action on the 
proposal extending the time periods resolving errors on new accounts, 
published for comment in May 1996 (Docket Number: R-0919; RIN: 7100-
AC06). That amendment was also adopted substantially as proposed.
It is not expected that the final rule will have a significant economic 
impact on a substantial number of small institutions.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/25/98                    63 FR 14555
Board adopted proposal          09/29/98                    63 FR 52115

Regulatory Flexibility Analysis Required: No
Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: John C. Wood, Senior Attorney, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC55


_______________________________________________________________________



[[Page 22350]]

4314. REGULATION: H--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y--BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0982)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 36; 12 USC 248(a); 12 USC 248(c); 12 USC 321 
to 338a; 12 USC 371d; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC 
611; 12 USC 1814; 12 USC 1816; 12 USC 1818; 12 USC 1823(j); 12 USC 
1828(o); 12 USC 1831o; ...

CFR Citation:  12 CFR 208 app A; 12 CFR 225 app A

Legal Deadline: None

Abstract: In October 1997, as part of a joint interagency proposal, the 
Board requested public comment on revisions to the Federal Reserve's 
risk-based capital guidelines to permit certain revaluation gains on 
equity securities in Tier 2 capital (62 FR 55682, October 27, 1997). 
Under the proposal an institution would be permitted to include in Tier 
2 capital up to 45 percent of its unrealized revaluation gains on 
prudently valued equity securities. This treatment is consistent with 
the Basel Accord.
In September 1998, following review of the public comments, the Board 
adopted the revisions substantially as proposed (63 FR 46518, September 
1, 1998). It is not expected that the proposal will have a significant 
economic impact on a substantial number of small entities subject to 
the Board's regulation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         10/27/97                    62 FR 55682
Board adopted proposal          09/01/98                    63 FR 46518

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Barbara Bouchard, Manager, Federal Reserve System, 
Division of Banking Supervision and Regulation
Phone: 202 452-3072

RIN: 7100-AC39
_______________________________________________________________________




4315. REGULATION: J--COLLECTION OF CHECKS AND OTHER ITEMS BY FEDERAL 
RESERVE BANKS; AND REGULATION: CC--AVAILABILITY OF FUNDS AND COLLECTION 
OF CHECKS (DOCKET NUMBER: R-1009)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 248(i); 12 USC 248(j); 12 USC 248(o); 12 USC 
342; 12 USC 360; 12 USC 464; 12 USC 4001 et seq

CFR Citation:  12 CFR 210; 12 CFR 229

Legal Deadline: None

Abstract: In March 1998, the Board approved issuing for public comment 
an advance notice of proposed rulemaking regarding the benefits and 
drawbacks associated with the provisions of Regulation CC that require 
a paying bank to settle with a presenting bank for checks on the same 
day the checks are presented, as long as the checks are presented by 
8:00 a.m. local time at specified locations (63 FR 12700, March 16, 
1998). The Board also requested comment on the effects of additional 
changes to Regulations J and CC to reduce the legal disparities between 
the Federal Reserve Banks and private-sector banks in the presentment 
and settlement of checks. The objective of such rule changes would be 
to promote competition in check collection services, which should 
promote efficiencies and spur innovation.
In December 1998, based on its analysis of the comments received, the 
Board concluded that the costs associated with reducing the remaining 
legal disparities would outweigh any payments system efficiency gains. 
Therefore, the Board decided not to propose any specific regulatory 
changes for the time being (63 FR 68701, December 14, 1998).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/16/98                    63 FR 12700
Termination of proposed 
rulemaking                      12/14/98                    63 FR 68701

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Stephanie Martin, Senior Counsel, Federal Reserve 
System, Legal Division
Phone: 202 452-3198

RIN: 7100-AC50
_______________________________________________________________________




4316. REGULATION: Y--BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL 
(DOCKET NUMBER: R-0990)

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 1817(j)(13); 12 USC 1818; 12 USC 1828o; 12 USC 
1831i; 12 USC 1831p-1; 12 USC 1843(c)(8); 12 USC 1844(b); 12 USC 
1972(1); 12 USC 3106; 12 USC 3108; 12 USC 3310; 12 USC 3331 to 3351; 12 
USC 3907; 12 USC 3909

CFR Citation:  12 CFR 225

Legal Deadline: None

Abstract: In December 1997, the Board approved issuing for public 
comment a proposal to exempt any transaction involving the underwriting 
or dealing of mortgage-backed securities from the Board's appraisal 
requirements (62 FR 64997, December 9, 1997). This amendment would 
permit a nonbank subsidiary of a bank holding company engaged in 
underwriting and dealing in securities (a so-called section 20 
subsidiary) to underwrite and deal in mortgage-backed securities 
without demonstrating that the loans underlying the securities are 
supported by appraisals that meet the Board's appraisal requirements. 
As the proposal notes, the Board believes the public rating or due 
diligence that the market requires for mortgage-backed securities 
provides information that is at least as sufficient for assessing risks 
as new appraisals for the underlying loans. The Board proposed this 
amendment to address concerns raised by bank holding companies 
regarding the inability of section 20 subsidiaries to actively 
participate in the commercial mortgage-backed securities market due to 
the appraisal restrictions of subpart G.
It is not anticipated that the proposal will have a significant 
economic impact on a substantial number of small entities subject to 
the Board's regulation. In December 1998, following review of the 
public comments, the Board adopted the final rule substantially as 
proposed (63 FR 65530, November 27, 1998).

[[Page 22351]]



Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/09/97                    62 FR 64997
Board adopted proposal          11/27/98                    63 FR 65530

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Mark E. Van Der Weide, Attorney, Federal Reserve 
System, Legal Division
Phone: 202 452-2263

RIN: 7100-AC49
[FR Doc. 99-4918 Filed 04-23-99; 8:45 am]
BILLING CODE 6210-01-F
