[The Regulatory Plan and 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 65445]]

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Part LVIII





Federal Reserve System





_______________________________________________________________________



Semiannual Regulatory Agenda

[[Page 65446]]



Federal Reserve System (FRS)                                           


  



_______________________________________________________________________

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 October 1, 
1999, through April 1, 2000. The next agenda will be published in April 
2000.

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 October 1999 
agenda as part of the October 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                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4485         Regulation: C -- Home Mortgage Disclosure (Docket Number: R-1001)..................     7100-AC51
4486         Regulation: T -- Credit by Brokers and Dealers; Regulation: U -- Credit by Banks;       7100-AC45
            and Regulation: X -- Borrowers of Securities Credit (Docket Number: R-0995).........
4487         Section 303 Regulatory Review (Section 610 Review).................................     7100-AC09
----------------------------------------------------------------------------------------------------------------


                                                Final Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4488         Regulation: B -- Equal Credit Opportunity (Docket Number: R-1008) (Section 610          7100-AC54
            Review).............................................................................
4489         Regulation: B -- Equal Credit Opportunity; and Regulation: Z -- Truth in Lending        7100-AC46
            (Docket Numbers: R-1040 and R-1043).................................................
4490         Regulation: D -- Reserve Requirements of Depository Institutions (Docket Number: R-     7100-AC11
            0956)...............................................................................
4491         Regulation: E -- Electronic Fund Transfers (Docket Numbers: R-0919 and R-1041).....     7100-AC06
4492         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).............................................................
4493         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).............................................................
4494         Regulation: K -- International Banking Operations (Docket Number: R-0994)..........     7100-AC47
4495         Regulation: L -- Management Official Interlocks (Docket Number: R-1013)............     7100-AC56
4496         Regulation: M -- Consumer Leasing (Docket Number: R-1042)..........................     7100-AC53
4497         Regulation: CC -- Availability of Funds and Collection of Checks (Docket Number: R-     7100-AC60
            1034)...............................................................................
4498         Regulation: DD -- Truth in Savings (Docket Number: R-1044).........................     7100-AC34
4499         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)..................
4500         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)...............................................................
4501         Rules Regarding Availability of Information (Docket Number: R-0917)................     7100-AC22
----------------------------------------------------------------------------------------------------------------


[[Page 65447]]


                                                Completed Actions
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4502         Regulation: H -- Membership of State Banking Institutions in the Federal Reserve        7100-AC14
            System (Docket Number: R-0950)......................................................
4503         Regulation: H -- Membership of State Banking Institutions; Regulation: K --             7100-AC59
            International Banking Operations; and Regulation: Y -- Bank Holding Companies
            (Docket Number: R-1019).............................................................
4504         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)........................................................
4505         Regulation: CC -- Availability of Funds and Collection of Checks (Docket Number: R-     7100-AC58
            1027)...............................................................................
4506         Regulation: CC -- Availability of Funds and Collection of Checks (Docket Number: R-     7100-AC57
            1031)...............................................................................
----------------------------------------------------------------------------------------------------------------

_______________________________________________________________________


Federal Reserve System (FRS)                        Proposed Rule Stage


  



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4485. 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 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 
fourth quarter of 1999.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/12/98                    63 FR 12329
Further Board action by         11/00/99

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
_______________________________________________________________________




4486. 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 six months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         01/16/98                     63 FR 2840
Further Board action by         02/00/00

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


_______________________________________________________________________



[[Page 65448]]

4487. 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, as 
modified by section 402 of the Credit Union Membership Access Act of 
1998, 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). 
Progress reports were sent to the Congress in September 1996 and August 
1999. Within the next twelve months, it is expected that the Board will 
seek public comment during the course of the reviews of the 
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              08/00/00

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


  



_______________________________________________________________________




4488. 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.

In June 1999, following review of the public comments on the advance 
notice, the Board approved for public comment a proposed rule amending 
Regulation B (64 FR 44582, August 16, 1999). Major revisions in the 
proposal include removing the general prohibition against obtaining 
information about applicant characteristics such as national origin or 
gender, although such information still generally may not be considered 
in extending credit; adding a disclosure requirement for creditors that 
voluntarily collect data on applicant characteristics; requiring 
creditors to retain certain records for preapproved credit 
solicitations; and extending the record retention period for most 
business credit applications.

Based on the regulatory flexibility analysis, it is not expected that 
the proposal will have a significant impact on small entities. Although 
there would be a new disclosure requirement for creditors that 
voluntarily request information about applicant characteristics, a 
model form is proposed to ease compliance. Also, there is a new 
requirement to retain certain records for preapproved credit 
solicitations. For business reasons, many institutions already retain 
some of the preapproved credit solicitation information being sought. 
In addition, compliance burdens should be minimized by the fact that 
creditors may use a variety of methods, such as electronic storage, to 
retain records.

Following review of the public comments, the Board is expected to take 
further action in the first quarter of 2000.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment on 
advance notice                  03/12/98                    63 FR 12326
Board requested comment on 
proposed rule                   08/16/99                    64 FR 44582
Further Board action by         03/00/00

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

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


_______________________________________________________________________



[[Page 65449]]

4489. REGULATION: B -- EQUAL CREDIT OPPORTUNITY; AND REGULATION: Z -- 
TRUTH IN LENDING (DOCKET NUMBERS: R-1040 AND R-1043)

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-1042 and R-1044). 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-1002; 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.

In August 1999, based on comments received in response to the March 
proposals, the Board approved publishing for comment additional 
proposals on electronic communications to provide more detailed 
guidance on using electronic communications to deliver disclosures to 
consumers and others. Following review of the public comments, the 
Board is expected to take further action within the next six months. It 
is not anticipated that the proposals would have a significant economic 
impact on small institutions.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/25/98                    63 FR 14548
Board approved publishing 
additional proposal on 
electronic communications       09/14/99                    64 FR 46988
Further Board action by         02/00/00

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
_______________________________________________________________________




4490. 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 within the next year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/31/96                    61 FR 69054
Further Board action by         08/00/00

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC11
_______________________________________________________________________




4491. REGULATION: E -- ELECTRONIC FUND TRANSFERS (DOCKET NUMBERS: R-0919 
AND R-1041)

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, and subsequently adopted in September 1998, an 
extension of the error resolution time limits for new accounts. The 
proposal also included permitting electronic communications to 
substitute generally for oral or written disclosures, documentation, 
and notices required under Regulation E.

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 August 1999, based on public comments received, the Board approved 
publishing an additional proposal for comment on the electronic 
communications rule to provide more detailed guidance on the use of 
electronic communications to deliver disclosures to consumers. The 
interim rule remains in effect until Board consideration of a final 
rule. Following

[[Page 65450]]

review of the public comments, the Board is expected to take further 
action within the next six 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
Board approved publishing 
additional proposal on 
electronic communications       09/14/99                    64 FR 49699
Further Board action by         12/00/99

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
_______________________________________________________________________




4492. 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 
year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/16/96                    61 FR 42565
Further Board action by         12/00/99

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
_______________________________________________________________________




4493. 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

[[Page 65451]]

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 in 
the fall of 1999.

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         11/00/99

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
_______________________________________________________________________




4494. 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 by 
year-end.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

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

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
_______________________________________________________________________




4495. 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 two months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

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

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
_______________________________________________________________________




4496. REGULATION: M -- CONSUMER LEASING (DOCKET NUMBER: R-1042)

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 1667

CFR Citation: 12 CFR 213

[[Page 65452]]

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 contained several technical amendments that were 
subsequently adopted in September 1998. In August 1999, based on public 
comments received in response to the March proposal, the Board approved 
publishing an additional proposal for comment to provide more detailed 
guidance on the use of electronic communications to deliver disclosures 
to consumers.

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. 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         03/25/98                    63 FR 14538
Board adopted technical 
amendments                      09/29/98                    63 FR 52107
Board approved publishing 
additional proposal on 
electronic communications       09/14/99                    64 FR 49713
Further Board action by         02/00/00

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Kyung Cho-Miller, Staff Attorney, Federal Reserve 
System, Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC53
_______________________________________________________________________




4497.  REGULATION: CC -- AVAILABILITY OF FUNDS AND COLLECTION OF 
CHECKS (DOCKET NUMBER: R-1034)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 4001 et seq

CFR Citation: 12 CFR 229

Legal Deadline: None

Abstract: In February 1999, the Board requested public comment on 
options for amending provisions in Regulation CC governing when paying 
or returning banks may send notices in lieu of returning the original 
checks (64 FR 9105, February 24, 1999). The proposal is intended to 
provide more flexibility to check system participants to experiment 
with methods to return checks electronically without causing 
significant burden to depository institutions. The proposal would 
affect all depository institutions, regardless of size, who participate 
in the check collection system, and public comment has specifically 
been requested on the burdens associated with certain aspects of the 
proposal.

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         02/24/99                     64 FR 9105
Further Board action by         11/00/99

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

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

RIN: 7100-AC60
_______________________________________________________________________




4498. REGULATION: DD -- TRUTH IN SAVINGS (DOCKET NUMBER: R-1044)

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), and the changes were subsequently adopted in September 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. It is not expected 
that there will be a significant economic impact on small institutions.

In August 1999, based on public comments received on the electronic 
communications proposal, the Board approved publishing an additional 
proposal for comment to provide more detailed guidance on the use of 
electronic communications to deliver disclosures to consumers. The 
Board also approved publishing an interim rule permitting the 
electronic delivery of Regulation DD disclosures on periodic 
statements. 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         03/25/98                    63 FR 14533
Board adopted statutory changes 09/29/98                    63 FR 52106
Board approved publishing 
additional proposal on 
electronic communications       09/14/99                    64 FR 49740
Further Board action by         02/00/00

[[Page 65453]]

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Kyung Cho-Miller, Staff Attorney, Federal Reserve 
System, Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC34
_______________________________________________________________________




4499. 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 during the next 
six months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         07/15/97                    62 FR 37744
Further Board action by         02/00/00

Regulatory Flexibility Analysis Required: No

Government Levels Affected: State, Federal

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

RIN: 7100-AC42
_______________________________________________________________________




4500. 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 impede 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 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 year-end. 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         12/00/99

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
_______________________________________________________________________




4501. 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

[[Page 65454]]

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 within the next six months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

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

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC22
_______________________________________________________________________


Federal Reserve System (FRS)                          Completed Actions


  



_______________________________________________________________________




4502. REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM (DOCKET NUMBER: R-0950)

Priority: Substantive, Nonsignificant

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

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 would have a 
significant economic impact on a substantial number of small banks.

Further consideration of the proposal by the Board is not expected 
during the next six months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/30/96                    61 FR 68824
Board action not expected during 
the next six months             09/03/99

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
_______________________________________________________________________




4503. 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 have required 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 were 
determined to be suspicious, in accordance with the Board's existing 
suspicious activity reporting regulations. The proposal was 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 would reduce the likelihood that 
banking organizations would become unwitting participants in illicit 
activities conducted or attempted by their customers.

In March 1999, after considering the issues raised by the public 
comments, and in view of the strong opposition to the proposed 
regulation, the Board, along with the Comptroller of the

[[Page 65455]]

Currency, the Federal Deposit Insurance Corporation, and the Office of 
Thrift Supervision, all of whom issued similar regulations, withdrew 
the notice of proposed rulemaking (64 FR 15310, March 31, 1999).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/07/98                    63 FR 67516
Board withdrew the proposal     03/31/99                    64 FR 15310

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
_______________________________________________________________________




4504. 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). In February 1999, the Board 
approved final rules amending the risk-based and leverage capital 
standards for state member banks (Regulation H) and the risk-based 
capital standards for bank holding companies (Regulation Y) (64 FR 
10194, March 2, 1999). The amendments 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
Board adopted remaining 
proposals                       03/02/99                    64 FR 10194

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
_______________________________________________________________________




4505. 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 was requested on the need for this amendment 
and whether the proposed liberalization of the regulation's merger 
transaction provisions was 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. In March 1999, following review of the public 
comments, the Board adopted the amendments substantially as proposed 
(64 FR 14577, March 26, 1999).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/02/98                    63 FR 66499
Board adopted amendments        03/26/99                    64 FR 14577

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
_______________________________________________________________________




4506. 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 issued 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 proposed modification would have allowed a 
depositary bank to retain a five-day schedule for categories of 
nonlocal checks for which it certifies that it does not receive a 
sufficient proportion of returned checks within four business days. The 
objective of the proposal was to provide bank customers with faster 
funds availability when appropriate, in accordance with the Expedited 
Funds Availability Act.


[[Page 65456]]


In July 1999, following review of the public comments, the Board 
concluded that return times for nonlocal checks do not support a 
reduced availability schedule for nonlocal checks in the aggregate at 
this time. The Board also determined that, currently, the costs and 
potential risks would outweigh the likely benefits of establishing 
subcategories of nonlocal checks for availability purposes. Therefore, 
the Board decided not to propose any specific regulatory changes at 
this time to reduce the nonlocal check availability schedule (64 FR 
37708, July 13, 1999).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/15/98                    63 FR 69027
Board terminated proposed 
rulemaking                      07/13/99                    64 FR 37708

Regulatory Flexibility Analysis Required: No

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
[FR Doc. 99-23655 Filed 11-19-99; 8:45 am]
BILLING CODE 6210-01-F