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


Part LVI





Federal Reserve System





_______________________________________________________________________



Semiannual Regulatory Agenda

[[Page 23880]]



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 April 1 through 
October 1, 2000. The next agenda will be published in October 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 April 2000 
agenda as part of the April 2000 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.

                                   Federal Reserve System--Proposed Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4237        Regulation: C -- Home Mortgage Disclosure (Docket Number: R-1001)...................     7100-AC51
4238        Regulation: E -- Electronic Funds Transfer..........................................     7100-AC67
4239        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC69
            System..............................................................................
4240        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).........
4241        Regulation: Y -- Bank Holding Companies and Change in Bank Control..................     7100-AC65
4242        Regulation: Y -- Bank Holding Companies and Change in Bank Control..................     7100-AC66
4243        Regulation: BB -- Community Reinvestment............................................     7100-AC64
4244        Applicability of Sections 23A and 23B of the Federal Reserve Act to Transactions         7100-AC63
            Between Insured Depository Institutions and Their Affiliates........................
4245        Fair Credit Reporting...............................................................     7100-AC68
4246        Insurance Customer Protections......................................................     7100-AC62
4247        Section 303 Regulatory Review (Section 610 Review)..................................     7100-AC09
----------------------------------------------------------------------------------------------------------------


                                    Federal Reserve System--Final Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4248        Regulation: B -- Equal Credit Opportunity (Docket Number: R-1008) (Section 610           7100-AC54
            Review).............................................................................
4249        Regulation: B -- Equal Credit Opportunity; and Regulation: Z -- Truth in Lending         7100-AC46
            (Docket Numbers: R-1040 and R-1043).................................................
4250        Regulation: D -- Reserve Requirements of Depository Institutions (Docket Number: R-      7100-AC11
            0956)...............................................................................
4251        Regulation: E -- Electronic Fund Transfers (Docket Numbers: R-0919 and R-1041)......     7100-AC06
4252        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).............................................................
4253        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-1055).............................................................
4254        Regulation: K -- International Banking Operations (Docket Number: R-0994)...........     7100-AC47
4255        Regulation: M -- Consumer Leasing (Docket Number: R-1042)...........................     7100-AC53
4256        Regulation: P -- Privacy of Consumer Financial Information (Docket Number: R-1058)..     7100-AC61
4257        Regulation: Y -- Bank Holding Companies and Change in Bank Control (Docket Number: R-    7100-AC70
            1057)...............................................................................
4258        Regulation: Y -- Bank Holding Companies and Change in Bank Control (Docket Number: R-    7100-AC71
            1060)...............................................................................

[[Page 23881]]

 
4259        Regulation: DD -- Truth in Savings (Docket Number: R-1044)..........................     7100-AC34
4260        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)..................
4261        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)...............................................................
4262        Rules Regarding Availability of Information (Docket Number: R-0917).................     7100-AC22
----------------------------------------------------------------------------------------------------------------


                                    Federal Reserve System--Completed Actions
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4263        Regulation: L -- Management Official Interlocks (Docket Number: R-1013).............     7100-AC56
4264        Regulation: CC -- Availability of Funds and Collection of Checks (Docket Number: R-      7100-AC60
            1034)...............................................................................
----------------------------------------------------------------------------------------------------------------

_______________________________________________________________________


FEDERAL RESERVE SYSTEM (FRS)                        Proposed Rule Stage


  



_______________________________________________________________________




4237. 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 by mid-year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/12/98                    63 FR 12329
Further Board action by         06/00/00

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
_______________________________________________________________________




4238.  REGULATION: E -- ELECTRONIC FUNDS TRANSFER

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 1693 et seq

CFR Citation: 12 CFR 205

Legal Deadline: None

Abstract: In November 1999, the Congress amended the Electronic Funds 
Transfer Act as a part of the Gramm-Leach-Bliley Act. The purpose of 
the amendments is to require disclosure of automatic transfer machine 
(ATM) fees imposed by ATM operators on consumers who hold accounts at 
other institutions.
Within the next two months, the Board is expected to consider issuing 
for public comment proposed amendments to Regulation E implementing the 
statutory provisions. It is undetermined at this time whether the 
proposals will have a significant economic impact on a substantial 
number of small entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board will consider requesting 
comments by                     04/00/00

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

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

RIN: 7100-AC67

[[Page 23882]]

_______________________________________________________________________




4239.  REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS 
IN THE FEDERAL RESERVE SYSTEM

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 335; 12 USC 1835a

CFR Citation: 12 CFR 208

Legal Deadline: None

Abstract: During the next two months, the Board will consider issuing 
for public comment proposed amendments to Regulation H to implement 
section 121 of the Gramm-Leach-Bliley Act for state member banks. 
Section 121 in part authorizes state member banks to control, or hold 
an interest in, subsidiaries (financial subsidiaries) so as to conduct 
certain activities that are financial in nature or incidental thereto, 
if the Comptroller of the Currency has approved such activities to be 
conducted in the financial subsidiary of a national bank, and subject 
to the same conditions and limitations as authorized by the 
Comptroller.
The Board will also consider amending section 208.7 of Regulation H 
(deposit production offices) to conform its definitional provisions to 
section 106 of the Gramm-Leach-Bliley Act. In addition, the Board will 
consider amending an existing Miscellaneous Interpretation (12 CFR 
250.141) (relating to member bank purchases of stock in operations 
subsidiaries) to update its provisions and conform to section 121.
It is not anticipated that the proposals 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 will consider proposals by04/00/00

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Michael J. O'Rourke, Counsel, Federal Reserve System, 
Legal Division
Phone: 202 452-3288

RIN: 7100-AC69
_______________________________________________________________________




4240. 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 by mid-year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         01/16/98                     63 FR 2840
Further Board action by         06/00/00

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
_______________________________________________________________________




4241.  REGULATION: Y -- BANK HOLDING COMPANIES AND CHANGE IN 
BANK CONTROL

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1844(b); 12 USC 1843(k)(4)(H); 12 USC 
1843(k)(7)

CFR Citation: 12 CFR 225

Legal Deadline: None

Abstract: Section 103 of the Gramm-Leach-Bliley Act (``GLB Act'') 
authorizes bank holding companies that qualify as financial holding 
companies to engage in merchant banking activities as described and 
subject to the conditions set forth in section 4(k)(4)(H) of the Bank 
Holding Company Act, as amended. Section 103 also authorizes the Board 
and the Secretary of the Treasury to jointly issue regulations 
implementing section 4(k)(4)(H). The GLB Act provides that these 
regulations may include limitations on transactions between depository 
institutions and companies controlled pursuant to the merchant banking 
authority and other restrictions or provisions that the Board and the 
Secretary of the Treasury deem appropriate to protect depository 
institutions and to assure compliance with, and prevent evasions of, 
the GLB Act and the Bank Holding Company Act.
In the next two months, the Board, with the Secretary of the Treasury, 
will consider whether to seek public comment on a proposed amendment to 
Regulation Y to implement the merchant banking provisions of the GLB 
Act. 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.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board will consider requesting 
comments by                     04/00/00

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

Agency Contact: Kieran Fallon, Senior Counsel, Federal Reserve System, 
Legal Division
Phone: 202 452-5270

RIN: 7100-AC65

[[Page 23883]]

_______________________________________________________________________




4242.  REGULATION: Y -- BANK HOLDING COMPANIES AND CHANGE IN 
BANK CONTROL

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1844(b)

CFR Citation: 12 CFR 225

Legal Deadline: None

Abstract: Title I of the Gramm-Leach-Bliley Act (``GLB Act'') makes a 
number of miscellaneous amendments to sections 3, 4, and 5 of the Bank 
Holding Company Act of 1956 (``BHC Act'') and adds a new section 10A to 
the BHC Act. These amendments, among other things, prohibit the Board 
from determining that new activities are closely related to banking 
under section 4(c)(8) of the BHC Act; streamline the Board's reporting, 
examination, and other supervisory authority over bank holding 
companies and their subsidiaries; reduce the restrictions applicable to 
``nonbank banks'' that are exempt from the nonbanking restrictions of 
the BHC Act under section 4(f) of that Act; and repeal the savings bank 
life insurance provisions currently set forth in section 3(g) of the 
BHC Act.
Within the next six months, the Board will consider issuing for public 
comment amendments to Regulation Y to implement the provisions of the 
GLB Act affecting the BHC Act that are not addressed in proposed rules 
described elsewhere in the Board's agenda. It is not anticipated that 
the proposals 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 will consider requesting 
comments by                     09/00/00

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Kieran Fallon, Senior Counsel, Federal Reserve System, 
Legal Division
Phone: 202 452-5270

RIN: 7100-AC66
_______________________________________________________________________




4243.  REGULATION: BB -- COMMUNITY REINVESTMENT

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is 
undetermined.

Legal Authority: 12 USC 1831y

CFR Citation: 12 CFR 228

Legal Deadline: None

Abstract: Section 711 of the Gramm-Leach-Bliley Act added a new section 
48 to the Federal Deposit Insurance Act. Section 711 requires insured 
depository institutions (and their affiliates) and nongovernmental 
entities or persons that enter into agreements that relate to the 
Community Reinvestment Act of 1977 and that meet other criteria to (i) 
make the agreements available to the public and the appropriate federal 
banking agency and (ii) file annual reports concerning the agreements 
with the appropriate federal banking agency. Section 711 requires each 
federal banking agency to adopt regulations designed to ensure and 
monitor compliance with the requirements of the section. The Board is 
expected to issue for public comment a proposed amendment to Regulation 
BB to implement section 711 within the next six months. Any proposal 
would attempt to minimize the economic impact on small entities subject 
to the Board's regulation, and comment will be requested on any burden 
imposed by the rule on small entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board will consider proposal by 07/00/00

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

Agency Contact: Kieran Fallon, Senior Counsel, Federal Reserve System, 
Legal Division
Phone: 202 452-5270

RIN: 7100-AC64
_______________________________________________________________________




4244.  APPLICABILITY OF SECTIONS 23A AND 23B OF THE FEDERAL 
RESERVE ACT TO TRANSACTIONS BETWEEN INSURED DEPOSITORY INSTITUTIONS AND 
THEIR AFFILIATES

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is 
undetermined.

Legal Authority: 12 USC 371c; 12 USC 371c-1

CFR Citation: 12 CFR 223

Legal Deadline: None

Abstract: During the next two months, in response to passage of the 
Gramm-Leach-Bliley Act, the Board will consider issuing for public 
comment a new regulation to implement sections 23A and 23B of the 
Federal Reserve Act. Sections 23A and 23B regulate transactions between 
insured depository institutions and their affiliates. The regulation 
will codify existing interpretations and implement several pending 
proposals. (See Docket Numbers: R-0977, R-1015, and R-1016). It is not 
expected that any new proposal will have a significant economic impact 
on a substantial number of small entities that are subject to the 
Board's regulation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board will consider proposals by04/00/00

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC63
_______________________________________________________________________




4245.  FAIR CREDIT REPORTING

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 1681 et seq

CFR Citation: Not Yet Determined

Legal Deadline: None

Abstract: In 1996, the Congress amended the Fair Credit Reporting Act 
(FCRA) as part of the Consumer Credit Reporting Reform Act. The 
amendments prohibited the federal regulatory agencies from issuing 
implementing regulations. In November 1999, the Congress once again 
amended

[[Page 23884]]

the FCRA as part of the Gramm-Leach-Bliley Act. The amendments lifted 
the prohibition and directed the Board, the Office of the Comptroller 
of the Currency, the Federal Deposit Insurance Corporation, and the 
Office of Thrift Supervision to issue implementing regulations jointly.
Within the next two months, the agencies are expected to issue proposed 
regulations for public comment. It is undetermined at this time whether 
the proposals will have a significant economic impact on a substantial 
number of small entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board will consider requesting 
comment by                      04/00/00

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

Agency Contact: James H. Mann, Attorney, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-3667

RIN: 7100-AC68
_______________________________________________________________________




4246.  INSURANCE CUSTOMER PROTECTIONS

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is 
undetermined.

Legal Authority: 12 USC 1831x

CFR Citation: Not Yet Determined

Legal Deadline: Final, Statutory, November 12, 2000.

Abstract: Within the next six months the Board is expected to consider 
issuing for public comment proposals to implement section 305 of the 
Gramm-Leach-Bliley Act which requires the federal banking agencies to 
adopt customer protection regulations that apply to the retail sales 
practices, solicitations, advertising, or offers of any insurance 
product by any depository institution or any person engaged in such 
activities at an office of a depository institution or on behalf of the 
institution. The regulations must address: tying and coercive sales 
practices, disclosures and advertising, separation of routine deposit 
taking from insurance product activity, licensing and qualifications, 
non-discrimination against victims of domestic violence, and consumer 
grievance procedures. Section 305 provides that the federal banking 
agencies may in certain circumstances determine that state laws are 
preempted by the agencies' regulations. It is undetermined at this time 
whether the proposals will have a significant economic impact on a 
substantial number of small entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board will request comment by   08/00/00

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: State

Agency Contact: Richard M. Ashton, Associate General Counsel, Federal 
Reserve System, Legal Division
Phone: 202 452-3750

RIN: 7100-AC62
_______________________________________________________________________




4247. 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. It is expected that the Board will seek public comment during the 
course of the reviews of the regulations listed below. Review of 
Regulations Z and DD is expected during the next twelve months, and 
review of Regulations H and Y, Appendices, is expected in 2002. 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 D, T,h in,Savings.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board action expected during the 
next twelve months on           02/00/01
Regulations Z and DD

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

[[Page 23885]]

_______________________________________________________________________


FEDERAL RESERVE SYSTEM (FRS)                           Final Rule Stage


  



_______________________________________________________________________




4248. 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 by mid-year.

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         06/00/00

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
_______________________________________________________________________




4249. 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 (see 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 (64 FR 46988, September 14, 1999). The Board 
extended the period for providing comments on the proposal to March 3, 
2000. Following review of the public comments, the Board is expected to 
take further action within the next two 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
Board extended comment period   12/08/99                    64 FR 69963
Further Board action by         04/00/00

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
_______________________________________________________________________




4250. 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

[[Page 23886]]

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 six months.

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: Heatherun Allison, Counsel, Federal Reserve System, 
Legal Division
Phone: 202 452-3565

RIN: 7100-AC11
_______________________________________________________________________




4251. 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 (64 FR 
49699, September 14, 1999). The interim rule remains in effect until 
Board consideration of a final rule. The Board extended the period for 
providing comments on the proposal to March 3, 2000. Following review 
of the public comments, the Board is expected to take further action 
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
Board approved publishing 
additional proposal on 
electronic communications       09/14/99                    64 FR 49699
Board extended comment period   12/08/99                    64 FR 69963
Further Board action by         04/00/00

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC06
_______________________________________________________________________




4252. 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

[[Page 23887]]

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 during 
the first half of 2000.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/16/96                    61 FR 42565
Further Board action by         04/00/00

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
_______________________________________________________________________




4253. 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-1055)

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 November 1997, the Board, the Comptroller of the Currency, 
the Federal Deposit Insurance Corporation, and the Office of Thrift 
Supervision (``the agencies'') issued for public comment proposals to 
use credit ratings from nationally recognized statistical rating 
organizations to determine the capital treatment for recourse 
obligations, direct credit substitutes, and senior asset-backed 
securities (62 FR 59944, November 5, 1997). In February 2000, based on 
the public comments, the Board and the other agencies approved issuing 
for further comment a proposal to clarify and revise the regulatory 
capital treatment of securitized transactions. The proposal would treat 
recourse obligations and direct credit substitutes more consistently 
than the agencies' current risk-based capital standards.
Small entities would be affected by the 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 within the next six months.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         11/05/97                    62 FR 59944
Board approved requesting 
additional comment              03/08/00                    65 FR 12320
Further Board action by         08/00/00

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
_______________________________________________________________________




4254. 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. 
Aspects of the proposed rule may have to be reconsidered in light of 
the enactment of the Gramm-Leach-Bliley Act.
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 
mid-year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/31/97                    62 FR 68424
Further Board action by         06/00/00

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Kathleen M. O'Day, Associate General Counsel, Federal 
Reserve System, Legal Division

[[Page 23888]]

Phone: 202 452-3786

RIN: 7100-AC47
_______________________________________________________________________




4255. REGULATION: M -- CONSUMER LEASING (DOCKET NUMBER: R-1042)

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 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 (64 FR 49713, September 14, 1999).
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. The Board extended the period for 
providing comments on the proposal to March 3, 2000. 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         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
Board extended comment period   12/08/99                    64 FR 69963
Further Board action by         04/00/00

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC53
_______________________________________________________________________




4256.  REGULATION: P -- PRIVACY OF CONSUMER FINANCIAL 
INFORMATION (DOCKET NUMBER: R-1058)

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 6801 et seq

CFR Citation: 12 CFR 216

Legal Deadline: Final, Statutory, May 12, 2000.

Abstract: In February 2000, the Board issued for public comment a 
proposed rule that would require financial institutions to protect the 
confidentiality and security of nonpublic personal information about 
consumers (65 FR 8770, February 22, 2000). The proposed rule would 
implement Title V, Subtitle A, of the Gramm-Leach-Bliley Act. Under the 
proposal, financial institutions must provide notice to consumers about 
their privacy policies and practices, describe the conditions under 
which they may disclose nonpublic personal information about consumers 
to nonaffiliated third parties, and provide a method for consumers to 
``opt out'' of such disclosures. The proposed rule would apply to 
financial institutions over which the Board has primary supervisory 
authority, regardless of size. (Other federal regulatory agencies 
requested comment on similar rules that would apply to other financial 
institutions.) The requirements of the rule may have a significant 
economic impact on a substantial number of small institutions, 
particularly if those institutions disclose nonpublic personal 
information about consumers to nonaffiliated third parties. Following 
review of the public comments, the Board is expected to take final 
action by May 12, 2000.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         02/22/00                     65 FR 8770
Further Board action by         05/12/00

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

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

RIN: 7100-AC61
_______________________________________________________________________




4257.  REGULATION: Y -- BANK HOLDING COMPANIES AND CHANGE IN 
BANK CONTROL (DOCKET NUMBER: R-1057)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1843

CFR Citation: 12 CFR 225

Legal Deadline: Final, Statutory, March 11, 2000.

Abstract: In January 2000, the Board approved an interim rule with 
request for public comment amending Regulation Y to implement certain 
provisions of the Gramm-Leach-Bliley Act that amend the Bank Holding 
Company Act of 1956 (65 FR 3785, January 25, 2000). The interim 
regulation adds to Regulation Y a new Subpart I, which sets forth the 
procedures that bank holding companies and foreign banks must follow in 
order to qualify as financial holding companies and thereby engage in 
the expanded range of financial activities authorized by the Gramm-
Leach-Bliley Act. The new procedures may affect existing bank holding 
companies and foreign banks that seek to engage in the newly authorized 
activities, as well as other companies that seek to become bank holding 
companies. 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.

[[Page 23889]]

Following review of the public comments, the Board will make changes to 
the rule, as appropriate, by mid-year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board approved an interim rule  01/25/00                     65 FR 3785
Further Board consideration by  06/00/00

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

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

RIN: 7100-AC70
_______________________________________________________________________




4258.  REGULATION: Y -- BANK HOLDING COMPANIES AND CHANGE IN 
BANK CONTROL (DOCKET NUMBER: R-1060)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1972

CFR Citation: 12 CFR 225.7

Legal Deadline: None

Abstract: In February 2000, the Board approved issuing for public 
comment a proposed exception to the anti-tying restrictions of section 
106 of the Bank Holding Company Act Amendments of 1970 and the Board's 
Regulation Y (65 FR 6924, February, 11, 2000). The proposed amendment 
would establish a ``safe harbor'' permitting a bank to offer a credit 
card that can be used to make purchases from a retailer affiliated with 
the bank. It is expected that the proposed rule would benefit the 
public by providing consumers with alternative sources of consumer 
credit, and is not expected to have a significant economic impact on a 
substantial number of small business 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         02/11/00                     65 FR 6924
Further Board action by         06/00/00

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Andrew S. Baer, Attorney, Federal Reserve System, Legal 
Division
Phone: 202 452-2246

RIN: 7100-AC71
_______________________________________________________________________




4259. 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 (64 FR 
49740, September 14, 1999). The Board subsequently extended the comment 
period to March 3, 2000. The Board also approved publishing an interim 
rule permitting the electronic delivery of Regulation DD disclosures on 
periodic statements (Docket Number: R-1003). 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         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
Board extended comment period   12/08/99                    64 FR 69963
Futher Board action by          04/00/00

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

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

RIN: 7100-AC34
_______________________________________________________________________




4260. 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

[[Page 23890]]

basis by different agencies, which could result in confusion and 
consistencies.
The proposal is not expected to have a significant economic impact on a 
substantial number of small businesses. In light of the passage of the 
Gramm-Leach-Bliley Act, staff is reviewing the status of this proposal. 
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         08/00/00

Regulatory Flexibility Analysis Required: No

Government Levels Affected: Federal

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

RIN: 7100-AC42
_______________________________________________________________________




4261. 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.
In light of the passage of the Gramm-Leach-Bliley Act, staff is 
reviewing the status of the proposals. Further action is expected 
during the next six months. 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         08/00/00

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
_______________________________________________________________________




4262. 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 February 1996 proposal was 
issued, 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         08/00/00

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

[[Page 23891]]

_______________________________________________________________________


FEDERAL RESERVE SYSTEM (FRS)                          Completed Actions


  



_______________________________________________________________________




4263. 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. In September 1999, following review of the public comments, 
the Board and other agencies adopted the proposal substantially as 
proposed (64 FR 51673, September 24, 1999).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/11/98                    63 FR 43051
Board adopted proposal          09/24/99                    64 FR 51673

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
_______________________________________________________________________




4264. 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 was intended to 
provide more flexibility to check system participants to experiment 
with methods to return checks electronically without causing 
significant burden to depository institutions. In October 1999, 
following review of the public comments, the Board adopted revisions to 
the Commentary to Regulation CC to add examples of interbank agreements 
on electronic presentment and return of checks (64 FR 59607, November 
3, 1999). This revision does not affect the rights of any parties to 
the checks under Regulation CC. The revisions are applicable to all 
depository institutions, regardless of size, who participate in the 
check collection system, but do not impose any burdens on any 
depository institutions.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         02/24/99                     64 FR 9105
Board adopted final rule        11/03/99                    64 FR 59607

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC60
[FR Doc. 00-5323 Filed 04-21-00; 8:45 am]
BILLING CODE 6210-01-F
