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


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Part LV





Federal Reserve System





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Semiannual Regulatory Agenda

[[Page 34172]]



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, 2002. The next agenda will be published in the fall of 2002.

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 spring 2002 
agenda as part of the Spring 2002 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 (z) 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.

 Margaret McCloskey Shanks,

Assistant Secretary of the Board.

                                   Federal Reserve System--Proposed Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
3884        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC73
            System..............................................................................
3885        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC78
            System; and Regulation: Y -- Bank Holding Companies and Change in Bank Control......
3886        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC88
            System; and Regulation: Y -- Bank Holding Companies and Change in Bank Control,
            Capital Appendices (Section 610 Review).............................................
3887        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).........
3888        Regulation: Y -- Bank Holding Companies and Change in Bank Control..................     7100-AC66
3889        Regulation: BB -- Community Reinvestment (Docket Number: R-1112) (Section 610            7100-AC87
            Review).............................................................................
3890        Regulation: DD -- Truth in Savings Act (Section 610 Review).........................     7100-AC86
----------------------------------------------------------------------------------------------------------------


                                    Federal Reserve System--Final Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
3891        Regulation: B -- Equal Credit Opportunity (Docket Number: R-1008) (Section 610           7100-AC54
            Review).............................................................................
3892        Regulation: B -- Equal Credit Opportunity; and Regulation: Z -- Truth in Lending         7100-AC46
            (Docket Numbers: R-1040 and R-1043).................................................
3893        Regulation: C -- Home Mortgage Disclosure (Docket Numbers: R-1001 and R-1120).......     7100-AC51
3894        Regulation: E -- Electronic Fund Transfers (Docket Numbers: R-0919 and R-1041)......     7100-AC06
3895        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC69
            System (Docket Number: R-1064)......................................................
3896        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC84
            System (Docket Number: R-1099)......................................................
3897        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).............................................................
3898        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC75
            System; and Regulation: Y -- Bank Holding Companies and Change in Bank Control
            (Docket Number: R-1087).............................................................
3899        Regulation: M -- Consumer Leasing (Docket Number: R-1042)...........................     7100-AC53
3900        Regulation: V -- Fair Credit Reporting (Docket Number: R-1082)......................     7100-AC68
3901        Regulation: W -- Transactions Between Banks and Their Affiliates (Docket Number: R-      7100-AC63
            1103)...............................................................................
3902        Regulation: Y -- Bank Holding Companies and Change in Bank Control (Docket Number: R-    7100-AC79
            1091)...............................................................................

[[Page 34173]]


3903        Regulation: Y -- Bank Holding Companies and Change in Bank Control (Docket Number: R-    7100-AC81
            1094)...............................................................................
3904        Regulation: Y -- Bank Holding Companies and Change in Bank Control (Docket Number: R-    7100-AC82
            1092)...............................................................................
3905        Regulation: DD -- Truth in Savings (Docket Number: R-1044)..........................     7100-AC34
3906        Misc. Interpretations: Application of Sections 23A and 23B of the Federal Reserve        7100-AC85
            Act to Derivative Transactions with Affiliates and Intraday Extensions of Credit to
            Affiliates (Docket Number: R-1104)..................................................
----------------------------------------------------------------------------------------------------------------


                                    Federal Reserve System--Completed Actions
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
3907        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC76
            System; and Regulation: Y -- Bank Holding Companies and Change in Bank Control
            (Docket Number: R-1085).............................................................
3908        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).............................................................
3909        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC65
            System; and Regulation: Y -- Bank Holding Companies and Change in Bank Control
            (Docket Number: R-1097).............................................................
3910        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC77
            System; and Regulation: Y -- Bank Holding Companies and Change in Bank Control
            (Docket Number: R-1080).............................................................
3911        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC80
            System; and Regulation: Y -- Bank Holding Companies and Change in Bank Control
            (Docket Number: R-1084).............................................................
3912        Regulation: K -- International Banking Operations (Docket Number: R-0994)...........     7100-AC47
3913        Regulation: Z -- Truth in Lending (Docket Number: R-1090)...........................     7100-AC83
----------------------------------------------------------------------------------------------------------------

_______________________________________________________________________


Federal Reserve System (FRS)                        Proposed Rule Stage


  



_______________________________________________________________________




3884. REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM

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

Legal Authority: 12 USC 1828(t)

CFR Citation: 12 CFR 208

Legal Deadline: None

Abstract: Section 204 of the Gramm-Leach-Bliley Act added a new 
subsection (t) to section 18 of the Federal Deposit Insurance Act 
requiring the Board, in consultation with the Securities and Exchange 
Commission, to establish recordkeeping requirements for state member 
banks and branches and agencies of foreign banks that rely on the 
exceptions from the definition of broker or dealer provided in section 
3(a)(4) or (5) of the Securities Exchange Act of 1934.
The Board anticipates issuing for public comment a rule that would 
implement these recordkeeping requirements. The Board notes that the 
Securities and Exchange Commission has, by rule, delayed the effective 
date of the new exemptions for banks contained in section 3(a)(4) and 
(5) of the Securities Exchange Act of 1934, and has requested comment 
on rules that would provide guidance concerning the scope of their 
exemptions. (Release No. 34-44570, July 18, 2001; Release No. 34-44291, 
66 FR 27760, May 18, 2001). It is not anticipated that the Board's 
proposal, when issued, would 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 
comment by                      05/00/02

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-AC73
_______________________________________________________________________




3885. REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y -- BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 24; 12 USC 24a; 12 USC 36; 12 USC 92a; 12 USC 
93a; 12 USC 248(a); 12 USC 248(c); 12 USC 321 to 338a; 12 USC 371d; 12 
USC 481 to 486; 12 USC 601; 12 USC 611; 12 USC 1814; 12 USC 1816; ...

CFR Citation: 12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: The Board will consider issuing for public comment proposed 
amendments to Regulations H and Y that will take into account the

[[Page 34174]]

implications of the Gramm-Leach-Bliley Act (GLB Act) relating to the 
ability of state member banks to control operations subsidiaries. The 
proposed amendments will also include a series of technical changes to 
Regulation Y necessitated by the GLB Act, as well as a general 
reorganization of Regulation Y. The proposal should not have a 
substantive economic impact on small entities, as its substantive 
portions are expected to liberalize the Board's present rules.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board will consider requesting 
comment by                      06/00/02

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC78
_______________________________________________________________________




3886.  REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y -- BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL, CAPITAL APPENDICES (SECTION 610 REVIEW)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 24; 12 USC 24a; 12 USC 36; 12 USC 92a; 12 USC 
93a; 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; ...

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

Legal Deadline: None

Abstract: The capital appendices to Regulations H and Y set forth 
guidelines for institutions in calculating their regulatory capital 
requirements, both risk-based and leverage.
While the guidelines are continuously monitored and updated as required 
to reflect market innovations, accounting changes, or modifications to 
supervisory policy, the Board is undertaking a more comprehensive 
review of the guidelines to minimize regulatory burden, clarify issues 
arising from the Gramm-Leach-Bliley Act, enhance the overall risk 
sensitivity, and to comply with provisions of section 610(c) of the 
Regulatory Flexibility Act of 1994. Following the review, the Board 
will publish a notice of proposed rulemaking.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board will consider requesting 
comment by                      06/00/02

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

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

RIN: 7100-AC88
_______________________________________________________________________




3887. 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 in December 1997 (63 FR 2840, January 16, 1998). The advance 
notice highlights issues raised by interested persons 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.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         01/16/98                     63 FR 2840
Further Board action by         09/00/02

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

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

RIN: 7100-AC45
_______________________________________________________________________




3888. 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 
companies that control ``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.
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

[[Page 34175]]

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 
comment by                      05/00/02

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
_______________________________________________________________________




3889. REGULATION: BB -- COMMUNITY REINVESTMENT (DOCKET NUMBER: R-1112) 
(SECTION 610 REVIEW)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 2901

CFR Citation: 12 CFR 228

Legal Deadline: None

Abstract: In 1995, the Board issued Regulation BB which implements the 
Community Reinvestment Act (CRA). Substantially similar regulations 
were issued by the Office of the Comptroller of the Currency (OCC), the 
Federal Deposit Insurance Corporation (FDIC), and the Office of Thrift 
Supervision (OTS). The goal of these regulations was to achieve more 
objective performance-based CRA examinations and to minimize burden. At 
the time these regulations were issued, the agencies committed to 
conducting a 2002 comprehensive review of the regulations' 
effectiveness in achieving this goal.
In July 2001, the Board, the OCC, FDIC, and OTS issued an advance 
notice of proposed rulemaking (ANPR) (66 FR 37602, July 19, 2001). The 
notice identifies key issues in addition to requesting comment 
generally on potential revisions to the regulation. The Board is also 
reviewing the regulation in accordance with requirements of section 
610(c) of the Regulatory Flexibility Act of 1994.
The first issue presented in the ANPR is whether any change to the 
regulation is necessary and warranted, in light of the burden that 
change would entail. Other issues include: the effectiveness of the 
evaluation methods set forth in the regulations; the effectiveness of 
the requirement that large financial institutions collect and report 
data on small business, small farm, and community development lending; 
and whether the regulations have provided a reasonable and sufficient 
standard for designating the communities within which a financial 
institution's activities will be evaluated during a CRA examination.
It is not anticipated that any rule proposed for public comment 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.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         07/19/01                    66 FR 37602
Further Board action by         06/00/02

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

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

RIN: 7100-AC87
_______________________________________________________________________




3890. REGULATION: DD -- TRUTH IN SAVINGS ACT (SECTION 610 REVIEW)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 4301

CFR Citation: 12 CFR 230

Legal Deadline: None

Abstract: Regulation DD, which implements the Truth in Savings Act, 
requires that depository institutions uniformly disclose to customers 
information about the terms and conditions on which interest is paid 
and fees are assessed on deposit accounts.
The Board has targeted Regulation DD for review to update it and to 
comply with provisions of section 610(c) of the Regulatory Flexibility 
Act of 1994. The review is expected to commence with publication of an 
advance notice of proposed rulemaking in 2002 and be completed in the 
same year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board will consider requesting 
comment by                      05/00/02

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

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

RIN: 7100-AC86
_______________________________________________________________________


Federal Reserve System (FRS)                           Final Rule Stage


  



_______________________________________________________________________




3891. 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 1998, the Board targeted Regulation B, which implements 
the Equal Credit Opportunity Act (ECOA), for a review to update the 
regulation. 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 March 1998, the Board issued 
for public comment an advance notice of proposed rulemaking for 
Regulation B that identified specific issues, in addition to requesting 
general comment on revisions to the regulation (63 FR 12326, March 12, 
1998).

[[Page 34176]]

In August 1999, following review of the public comments on the advance 
notice, the Board issued for public comment a proposed rule amending 
Regulation B (64 FR 44582, August 16, 1999). Major revisions in the 
proposed rule 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.

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         10/00/02

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

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

RIN: 7100-AC54
_______________________________________________________________________




3892. 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 and September 1999, the Board issued for public 
comment proposed rules to permit the electronic delivery of Regulation 
B and Regulation Z disclosures, if the consumer agrees (63 FR 14548, 
March 25, 1998, and 64 FR 46988, September 14, 1999). The Board also 
issued similar proposed rules under other consumer financial services 
laws administered by the Board.
The Electronic Signatures in Global and National Commerce Act (E-Sign 
Act), which became effective October 1, 2000, generally governs the 
validity of records and signatures in electronic form. The E-Sign Act 
incorporated some elements of the Board's regulatory proposals 
governing electronic disclosures. Some provisions in the Board's 
proposals, however, were modified or preempted by the Act, while other 
provisions were not addressed by the E-Sign Act but were consistent 
with that Act and could be issued as final rules.
In March 2001, the Board issued interim final rules on the electronic 
delivery of disclosures (66 FR 17329, March 30, 2001, and 66 FR 17779, 
April 4, 2001). The scheduled mandatory compliance date was later 
lifted (66 FR 41439, August 8, 2001). Under the interim final rules, 
consistent with the requirements of the E-Sign Act, creditors generally 
must obtain consumers' affirmative consent to provide disclosures 
electronically. There are exceptions for certain disclosures. The 
interim final rules also establish uniform requirements for the timing 
and delivery of electronic disclosures. The March 2001 rulemakings were 
published as interim final rules to allow interested persons to present 
new information or views not considered in previous rulemakings. The 
rules are not expected to have a significant economic impact on a 
substantial number of small business entities. Following review of the 
public comments, the Board will take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board issued proposed rules     03/25/98                    63 FR 14548
Board issued revised proposed 
rules                           09/14/99                    64 FR 46988
Board issued interim final rule 
(Regulation Z)                  03/30/01                    66 FR 17329
Board issued interim final rule 
(Regulation B)                  04/04/01                    66 FR 17779
Board lifted mandatory 
compliance date                 08/08/01                    66 FR 41439
Further Board action by         05/00/02

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC46
_______________________________________________________________________




3893. REGULATION: C -- HOME MORTGAGE DISCLOSURE (DOCKET NUMBERS: R-1001 
AND R-1120)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 2801

CFR Citation: 12 CFR 203

Legal Deadline: None

Abstract: In 1998, Regulation C, which implements the Home Mortgage 
Disclosure Act (HMDA) was targeted for review to update the regulation. 
HMDA requires most mortgage lenders located in metropolitan areas to 
report annually to Federal agencies and disclose to the public 
information about their home purchase and home improvement lending 
activities. In March 1998, the Board issued an advance notice of 
proposed rulemaking, and in December 2000 issued for public comment a 
proposed rule amending Regulation C (65 FR 78656, December 15, 2000).
In January 2002, following review of the public comments, the Board 
approved a final rule amending Regulation C (67 FR 7221, February 15, 
2002). Among other things, the amendments, which are effective January 
1, 2003, do the following: (1) revise definitions of certain reportable 
loans and the definition of application

[[Page 34177]]

to include ``preapprovals'' as defined in the 
regulation; (2) require lenders to report loans with APRs that exceed 
the yield on a Treasury security of comparable maturity, if the rate 
spread above the Treasury rate is 3 percentage points for first lien 
loans and 5 percentage points for subordinate lien loans--lenders must 
report the rate spread above the appropriate Treasury security; (3) 
report whether a loan is subject to HOEPA and whether a loan is for 
manufactured housing; and (4) expand the coverage of nondepository 
lenders.
The final rule would affect all institutions currently within the scope 
of the regulation, including covered small institutions. No newly 
covered institution would be a small mortgage lender. It is not 
anticipated that the final rule would have a significant economic 
impact on a substantial number of small entities subject to the Board's 
regulation.
At the time of adoption of the final rule, the Board requested comment 
on three additional issues: (1) whether the rate spreads of three and 
four percent are appropriate; (2) whether lien status should be 
reported; and (3) whether lenders should be required to ask about race 
and national origin, for example, in connection with telephone 
applications (67 FR 7251, February 15, 2002). Following review of the 
public comments, the Board will take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment on 
advance notice                  03/12/98                    63 FR 12329
Board requested comment on 
proposed rule                   12/15/00                    65 FR 78656
Board adopted proposals         02/15/02                     67 FR 7221
Board requested comment         02/15/02                     67 FR 7251
Further Board action by         07/00/02

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Kathleen Ryan, Senior Attorney, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC51
_______________________________________________________________________




3894. 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 March 1998 and September 1999, the Board issued for public 
comment an interim final rule and proposed rules under Regulation E to 
permit the electronic delivery of disclosures, if the consumer agrees 
(Docket Number: R-1002; 63 FR 14528, March 25, 1998 (interim rule), and 
Docket Number: R-1041; 64 FR 49699, September 14, 1999). The Board also 
issued similar proposed rules under other consumer financial services 
laws administered by the Board.
The Electronic Signatures in Global and National Commerce Act (E-Sign 
Act), which became effective October 1, 2000, generally provides that 
records and signatures may not be denied legal effect solely because 
they are in electronic form. The E-Sign Act incorporated some elements 
of the Board's regulatory proposal governing electronic disclosures. 
Certain provisions in the Board's proposal, however, were modified or 
preempted by the Act, while other provisions were not addressed by the 
E-Sign Act but were consistent with the Act and could be issued as 
final rules.
In March 2001, the Board issued an interim final rule on the electronic 
delivery of disclosures (66 FR 17786, April 4, 2001). The scheduled 
mandatory compliance date was later lifted (66 FR 41439, August 8, 
2001). Under the interim final rule, consistent with the requirements 
of the E-Sign Act, financial institutions generally must obtain 
consumers' affirmative consent to provide disclosures electronically. 
The interim final rule also establishes uniform requirements for the 
timing and delivery of electronic disclosures. The March 1998 interim 
rule was withdrawn under the interim final rule.
The March 2001 rulemaking was published as an interim final rule to 
allow interested persons to present new information or views not 
considered in previous rulemakings. The rule 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.
A May 1996 Regulation E proposal to permit financial institutions to 
provide disclosures electronically also included proposed amendments 
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 latter proposal 
remains pending.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board issued proposed rule on 
coverage of stored-value 
products                        05/02/96                    61 FR 19696
Board issued interim rule 
permitting electronic delivery 
of disclosures                  03/25/98                    63 FR 14528
Board issued proposed rule 
imposing additional requirements 
re: electronic delivery of 
disclosures                     09/14/99                    64 FR 49699
Board issued interim final rules04/04/01                    66 FR 17786
Board lifted mandatory 
compliance date of interim final 
rule                            08/08/01                    66 FR 41439
Further Board action by         05/00/02

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
_______________________________________________________________________




3895. REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM (DOCKET NUMBER: R-1064)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 335; 12 USC 1835a

CFR Citation: 12 CFR 208

Legal Deadline: None

Abstract: In March 2000, the Board approved an interim rule with 
request

[[Page 34178]]

for public comment amending Regulation H to implement section 121 of 
the Gramm-Leach-Bliley Act for state member banks (65 FR 14810, March 
20, 2000). Section 121 in part authorizes state member banks to 
control, or hold an interest in, financial subsidiaries so as to 
conduct certain activities that are financial in nature or incidental 
to a financial activity. In August 2001, following review of the public 
comments, the Board adopted the final rule substantially as proposed 
(66 FR 42929, August 16, 2001).
The Board will also consider issuing for public comment a proposed rule 
in place of 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 proposal will have a significant economic impact 
on a substantial number of small entities subject to the Board's 
regulation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment on 
interim rule                    03/20/00                    65 FR 14810
Board adopted interim rule      08/16/01                    66 FR 42929
Board will consider requesting 
comment on replacement rule for 
Miscellaneous Interpretation by 06/00/02

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
_______________________________________________________________________




3896. REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM (DOCKET NUMBER: R-1099)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1835a

CFR Citation: 12 CFR 208

Legal Deadline: None

Abstract: In April 2001, the Board, along with the other banking 
agencies, issued for public comment a proposed rule that would amend 
uniform regulations implementing section 109 of the Riegle-Neal 
Interstate Banking and Branching Efficiency Act of 1994 (Interstate 
Act) to effectuate the amendment of section 109 contained in section 
106 of the Gramm-Leach-Bliley Act (66 FR 18411, April 9, 2001). Section 
109 prohibits a bank from establishing or acquiring a branch or 
branches outside of its home state for the purpose of deposit 
production. Additionally, section 109 contains guidelines for 
determining whether a bank is reasonably helping to meet the credit 
needs of communities served by an out-of-state branch or branches. 
Section 106 expanded the coverage of section 109 of the Interstate Act 
to include any branch of a bank controlled by an out-of-state bank 
holding company. The proposed rule amends the regulatory deposit 
production prohibition to include any bank or branch controlled by an 
out-of-state bank holding company, including a bank consisting only of 
a main office.
It is not anticipated that the rule will have a significant economic 
impact on a substantial number of small entities subject to the 
regulation. Following review of the public comments, the Board is 
expected to take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         04/09/01                    66 FR 18411
Further Board action by         06/00/02

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-AC84
_______________________________________________________________________




3897. 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 identified 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 provisions in 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.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/16/96                    61 FR 42565
Further Board action by         07/00/02

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: John Connolly, Supervisory Financial Analyst, Federal

[[Page 34179]]

Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-3621

RIN: 7100-AC13
_______________________________________________________________________




3898. 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-1087)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 24; 12 USC 36; 12 USC 92a; 12 USC 93a; 12 USC 
248(a); 12 USC 248(c); 12 USC 321 to 338a; 12 USC 371d; 12 USC 461; 12 
USC 1817(j)(13); 12 USC 1818; 12 USC 1818(o); 12 USC 1831i; 12 USC 
1831p-1; 12 USC 1843(c)(8); ...

CFR Citation: 12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: In December 2000, the Board issued an interim rule, with 
request for public comment, amending Regulations H and Y to effectively 
reduce the capital requirement for certain securities borrowing 
transactions (65 FR 75856, December 5, 2000). The proposed amendments 
would recognize the historically low risk of these transactions and 
bring the capital requirements for U.S. banking organizations into 
better alignment with the capital requirements of other U.S. and non-
U.S. regulators of financial institutions. The proposed amendments 
would have little or no effect on small banking organizations subject 
to the Board's regulation, as securities borrowing activities are 
concentrated in a relatively small number of very large banking 
organizations. Following review of the public comments, the Board will 
take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/05/00                    65 FR 75856
Further Board action by         10/00/02

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: David Adkins, Supervisory Financial Analyst, Federal 
Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-5259

RIN: 7100-AC75
_______________________________________________________________________




3899. 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: In March 1998 and September 1999, the Board issued for public 
comment proposed rules under Regulation M, which implements the 
Consumer Leasing Act, to permit the electronic delivery of disclosures, 
if the consumer agrees (63 FR 14538, March 25, 1998 and 64 FR 49713, 
September 14, 1999). The Board also issued similar proposed rules under 
other consumer financial services regulations administered by the 
Board.
The Electronic Signatures in Global and National Commerce Act (E-Sign 
Act), which became effective October 1, 2000, generally governs the 
validity of records and signatures in electronic form. The E-Sign Act 
incorporated some elements of the Board's regulatory proposal governing 
electronic disclosures. Some provisions in the Board's proposal, 
however, were modified or preempted by the Act, while other provisions 
were not addressed by the E-Sign Act but were consistent with that Act 
and could be issued as final rules.
In March 2001, the Board issued an interim final rule on the electronic 
delivery of disclosures (66 FR 17322, March 30, 2001). The scheduled 
mandatory compliance date was later lifted (66 FR 41439, August 8, 
2001). Under the interim final rule, consistent with the requirements 
of the E-Sign Act, lessors generally must obtain consumers' affirmative 
consent to provide disclosures electronically. There are exceptions for 
disclosures not deemed to relate to ``transactions,'' 
such as disclosures in advertising. The interim final rule also 
establishes uniform requirements for the timing and delivery of 
electronic disclosures.
The March 2001 rulemaking was published as an interim final rule to 
allow interested persons to present new information or views not 
considered in previous rulemakings. The rule 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 will take 
further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board issued proposed rule      03/25/98                    63 FR 14538
Board issued revised proposed 
rule                            09/14/99                    64 FR 49713
Board issued interim final rule 03/30/01                    66 FR 17322
Board lifted mandatory 
compliance date                 08/08/01                    66 FR 41439
Further Board action by         05/00/02

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Jane Ahrens, Senior Counsel, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC53
_______________________________________________________________________




3900. REGULATION: V -- FAIR CREDIT REPORTING (DOCKET NUMBER: R-1082)

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 1681 et seq

CFR Citation: 12 CFR 222

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, among other things, prohibited the federal regulatory 
agencies from issuing implementing regulations. In November 1999, the 
Congress once again amended 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.
In October 2000, the agencies issued proposed regulations for public 
comment (65 FR 63120, October 20, 2000). The proposal is not expected 
to have a significant economic impact on a substantial number of small 
entities. Following review of the public comments, the agencies will 
take further action.

[[Page 34180]]

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         10/20/00                    65 FR 63120
Further Board action by         09/00/02

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC68
_______________________________________________________________________




3901. REGULATION: W -- TRANSACTIONS BETWEEN BANKS AND THEIR AFFILIATES 
(DOCKET NUMBER: R-1103)

Priority: Substantive, Nonsignificant

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

CFR Citation: 12 CFR 223

Legal Deadline: None

Abstract: In May 2001, in response to passage of the Gramm-Leach-Bliley 
Act, the Board issued for public comment a new regulation (Regulation 
W) to implement sections 23A and 23B of the Federal Reserve Act (66 FR 
24186, May 11, 2001). Sections 23A and 23B regulate transactions 
between insured depository institutions and their affiliates. The 
proposed regulation codifies existing interpretations and asks for 
comment on new interpretations and exemptions. The proposal also 
requests comment on the treatment of derivatives and intra-day credit 
exposures between insured depository institutions and their affiliates. 
The Board has requested comment on the likely burden the rule will 
impose on small institutions. Following review of the public comments, 
the Board is expected to take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         05/11/01                    66 FR 24186
Further Board action by         06/00/02

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

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

RIN: 7100-AC63
_______________________________________________________________________




3902. REGULATION: Y -- BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL 
(DOCKET NUMBER: R-1091)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1843

CFR Citation: 12 CFR 225.86

Legal Deadline: None

Abstract: In January 2001, the Board issued for public comment a 
proposed rule amending Regulation Y that would define real estate 
brokerage and real estate management activities as financial in nature 
or incidental to a financial activity and therefore permissible for 
financial holding companies under the Board's Regulation Y (66 FR 307, 
January 3, 2001). The proposal would facilitate the creation of 
diversified financial companies that can offer ``one-stop 
shopping'' to consumers contemplating the purchase or 
management of real estate. The proposal 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 will take 
further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         01/03/01                      66 FR 307
Further Board action by         06/00/02

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC79
_______________________________________________________________________




3903. REGULATION: Y -- BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL 
(DOCKET NUMBER: R-1094)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1843

CFR Citation: 12 CFR 225.86(e)

Legal Deadline: None

Abstract: In December 2000, the Board, jointly with the Department of 
the Treasury, issued interim rules with request for public comment that 
implement section 4(k)(5) of the Bank Holding Company Act and section 
5136A(b)(3) of the Revised Statutes, which were added by the Gramm-
Leach-Bliley Act (66 FR 257, January 3, 2001). The interim rules 
specify three general types of activities to be financial in nature or 
incidental to a financial activity, and create a mechanism by which 
financial holding companies, financial subsidiaries of national banks, 
or others may request that the Board or the Secretary of the Treasury, 
respectively, define particular activities within one of the three 
categories. Such activities would therefore be permissible for 
financial holding companies and financial subsidiaries of national 
banks. The rules are not expected to have a significant economic impact 
on a substantial number of small entities. Following review of the 
public comments, the Board will take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         01/03/01                      66 FR 257
Further Board action by         06/00/02

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 7100-AC81
_______________________________________________________________________




3904. REGULATION: Y -- BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL 
(DOCKET NUMBER: R-1092)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1843(k)

CFR Citation: 12 CFR 225.28; 12 CFR 225.89

Legal Deadline: None

Abstract: In December 2000, the Board issued for public comment a 
proposed rule that would allow all bank holding companies to conduct a 
greater amount of nonfinancial data processing than

[[Page 34181]]

previously authorized (65 FR 80384, December 21, 2000). The proposed 
rule also would allow financial holding companies, as a complementary 
activity, to own companies engaged in certain data processing-related 
activities, such as data storage and Internet and portal hosting. The 
Board anticipates that the proposal would allow bank holding companies 
to provide a wider range of financial products and services to 
customers and would not have a significant economic impact on a 
substantial number of small entities. Following review of the public 
comments, the Board will take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/21/00                    65 FR 80384
Further Board action by         07/00/02

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

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

RIN: 7100-AC82
_______________________________________________________________________




3905. 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: In March 1998 and September 1999, the Board issued for public 
comment proposed rules and an interim rule under Regulation DD, which 
implements the Truth in Savings Act (TISA), to permit the electronic 
delivery of disclosures, if the consumer agrees (63 FR 14533, March 25, 
1998, and 64 FR 49740, September 14, 1999). The interim rule permits 
the electronic delivery of TISA disclosures provided on periodic 
statements. The Board also issued similar proposed rules under other 
consumer financial services laws administered by the Board.
The Electronic Signatures in Global and National Commerce Act (E-Sign 
Act), which became effective October 1, 2000, generally governs the 
validity of records and signatures in electronic form. The E-Sign Act 
incorporated some elements of the Board's regulatory proposal governing 
electronic disclosures. Certain provisions in the Board's proposal, 
however, were modified or preempted by the Act, while other provisions 
were not addressed by the E-Sign Act but were consistent with that Act 
and could be issued as final rules.
In March 2001, the Board issued an interim final rule on the electronic 
delivery of disclosures (66 FR 17795, April 4, 2001). The scheduled 
mandatory compliance date was later lifted (66 FR 41439, August 8, 
2001). Under the interim final rule, consistent with the requirements 
of the E-Sign Act, depository institutions generally must obtain 
consumers' affirmative consent to provide disclosures electronically. 
There are exceptions for disclosures not deemed to relate to 
``transactions,'' such as disclosures in advertising. 
The interim final rule also establishes uniform requirements for the 
timing and delivery of electronic disclosures. The 1999 interim rule 
permitting electronic delivery of Regulation DD disclosures on periodic 
statements was withdrawn under the interim final rule.
The March 2001 rulemaking was published as an interim final rule to 
allow interested persons to present new information or views not 
considered in previous rulemakings. The rule 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 will take 
further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board issued proposed rule      03/25/98                    63 FR 14533
Board issued revised proposed 
rule and interim rule           09/14/99                    64 FR 49740
Board issued interim final rule 04/04/01                    66 FR 17795
Board lifted mandatory 
compliance date                 08/08/01                    66 FR 41439
Further Board action by         05/00/02

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Jane Ahrens, Senior Counsel, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC34
_______________________________________________________________________




3906. MISC. INTERPRETATIONS: APPLICATION OF SECTIONS 23A AND 23B OF THE 
FEDERAL RESERVE ACT TO DERIVATIVE TRANSACTIONS WITH AFFILIATES AND 
INTRADAY EXTENSIONS OF CREDIT TO AFFILIATES (DOCKET NUMBER: R-1104)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 371c(f); 12 USC 371c-1(e)

CFR Citation: 12 CFR 250.247

Legal Deadline: None

Abstract: The Gramm-Leach-Bliley Act (GLB Act) required the Board to 
adopt, by May 12, 2001, final rules under section 23A to address credit 
exposures arising out of derivative transactions between insured 
depository institutions and their affiliates and intraday extensions of 
credit by insured depository institutions to their affiliates as 
covered transactions. In May 2001, the Board adopted interim final 
rules pursuant to the amendments to section 23A contained in the GLB 
Act and requested public comment on the rules (66 FR 24229, May 11, 
2001).
The interim rule requires that an institution establish and maintain 
policies and procedures reasonably designed to manage the credit 
exposure arising from the institution's derivative transactions with 
affiliates and clarifies that institution-affiliate derivative 
transactions are subject to the market terms requirement of section 
23B. The policies and procedures must at a minimum provide for 
monitoring and controlling the credit exposure arising from the 
institution's derivative transactions with each affiliate and all 
affiliates in the aggregate, and ensure that the institution's 
derivative transactions with affiliates comply with section 23B. The 
intraday credit rule also requires insured depository institutions to 
have policies and procedures in place and clarifies that the 
transactions are subject to section 23B.
Although the proposal is not expected to have a significant economic 
impact on small institutions, the Board has specifically requested 
comment on the likely burden the rule will impose. Following review of 
the public comments, the Board will take further

[[Page 34182]]

action on this matter in connection with its review of the proposed 
Regulation W (Docket Number: R-1103; RIN 7100-AC63).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         05/11/01                    66 FR 24229
Further Board action by         06/00/02

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

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

RIN: 7100-AC85
_______________________________________________________________________


Federal Reserve System (FRS)                          Completed Actions


  



_______________________________________________________________________




3907. 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-1085)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 24; 12 USC 36; 12 USC 92a; 12 USC 93a; 12 USC 
248(a); 12 USC 248(c); 12 USC 321 to 338a; 12 USC 371d; 12 USC 461; 12 
USC 1817(j)(13); 12 USC 1818; 12 USC 1818(o); 12 USC 1831i; 12 USC 
1831p-1; 12 USC 1843(c)(8); ...

CFR Citation: 12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: In December 2000, the Board issued for public comment 
proposed amendments to the Board's regulatory capital guidelines for 
banks and bank holding companies that would apply a 20 percent risk 
weight to claims on, and claims guaranteed by, qualifying securities 
firms (65 FR 76180, December 6, 2000). The proposed rule is consistent 
with an amendment to the Basel Accord adopted by the Basel Committee on 
Banking Supervision in April 1998. It would reduce the risk weight from 
100 percent to 20 percent applied to claims on, and claims guaranteed 
by, certain securities firms incorporated in countries that are members 
of the Organization for Economic Cooperation and Development, subject 
to certain prudential requirements. It is not anticipated that the 
proposal will have a significant economic impact on a substantial 
number of small institutions.
In February 2002, following review of the public comments, the Board 
adopted the rule with revisions (67 FR 16971, April 9, 2002). The final 
rule also gives a 20 percent risk weight to certain collateralized 
claims (i.e., repurchase/reverse repurchase agreements and securities 
borrowing/lending transactions) on qualifying securities firms if the 
claims satisfy designated prudential criteria.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested public comment  12/06/00                    65 FR 76180
Board adopted proposal          04/09/02                    67 FR 16971

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-AC76
_______________________________________________________________________




3908. 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 issued 
for further comment a proposal to clarify and revise the regulatory 
capital treatment of securitized transactions (65 FR 12320, March 8, 
2000). The proposal would treat recourse obligations and direct credit 
substitutes more consistently than the agencies' current risk-based 
capital standards. It is not expected that the proposals will have a 
significant economic impact on small institutions.
In November 2001, following review of the public comments, the Board 
and the other agencies adopted the proposed treatment for recourse and 
direct credit substitutes substantially as proposed in March 2000, 
except that the managed asset capital charge was not included in the 
final rule (66 FR 59614, November 29, 2001). Thus, banks and bank 
holding companies will be able to use the external credit ratings from 
nationally recognized statistical rating organizations to determine the 
capital treatment for recourse obligations, direct credit substitutes, 
and asset- and mortgage-backed securities. The Board also adopted final 
amendments to Regulations H and Y to revise its risk-based and leverage 
capital guidelines to address the treatment of residual interests for 
all state member banks and bank holding companies (Docket Number: R-
1080; RIN 7100-AC77). The final rule combined the capital treatment for 
residual interests into a single final rule on the Capital Treatment of 
Recourse,

[[Page 34183]]

Direct Credit Substitutes and Residual Interests in Asset 
Securitizations.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         11/05/97                    62 FR 59944
Board requested additional 
comment                         03/08/00                    65 FR 12320
Board adopted proposals         11/29/01                    66 FR 59614

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
_______________________________________________________________________




3909. 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-1097)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1844(b); 12 USC 329; 12 USC 1843(k)(7); 12 USC 
3906 to 3909

CFR Citation: 12 CFR 225

Legal Deadline: None

Abstract: In January 2002, following review of the public comments, the 
Board, jointly with the Comptroller of the Currency and the Federal 
Deposit Insurance Corporation, adopted a final rule governing the 
regulatory capital treatment of equity investments in nonfinancial 
companies. The amendments apply symmetrically to bank holding companies 
and banks, and apply to equity investments in nonfinancial companies 
made under the merchant banking authority of the Gramm-Leach-Bliley 
Act, section 4(c)(6) or 4(c)(7) of the Bank Holding Company Act, 
section 211.8(c)(3) of the Board's Regulation K, section 302(b) of the 
Small Business Investment Act of 1958, or section 24 of the Federal 
Deposit Insurance Act (other than section 24(f)) (67 FR 3784, January 
25, 2002). The final rule applies to a series of marginal capital 
charges on covered equity investments that increase with the level of a 
banking organization's overall exposure to equity investments relative 
to the organization's Tier 1 capital. The new marginal charges do not 
apply to covered investments made prior to March 13, 2000. The new 
charges also do not apply to investments made in or through small 
business investment companies to the extent such investments, in the 
aggregate, represent less than 15 percent of the banking organization's 
Tier 1 capital.
The final rule is substantially similar to the proposal issued in 
February 2001 (66 FR 10212, February 14, 2001). For the reasons 
discussed in the final rule, the Board does not believe the final rule 
will have a significant economic impact on small entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment on 
proposed rules                  03/28/00                    65 FR 16460
Board requested comment on new 
capital proposal                02/14/01                    66 FR 10212
Board adopted proposal          01/25/02                     67 FR 3784

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

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

RIN: 7100-AC65
_______________________________________________________________________




3910. 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-1080)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 24; 12 USC 36; 12 USC 92a; 12 USC 93a; 12 USC 
248(a); 12 USC 248(c); 15 USC 78b; 15 USC 781(b); 15 USC 781(g); 15 USC 
781(i); 31 USC 5318; 42 USC 4012a; 42 USC 4104a; ...

CFR Citation: 12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: In September 2000, the Board issued for public comment 
proposed amendments to Regulations H and Y to amend the Tier 1 leverage 
and risk-based capital guidelines for residual interests for all state 
member banks and bank holding companies (65 FR 57993, September 27, 
2000). The proposal would better align the capital requirements with 
the risks associated with such assets. It is not expected that the 
amendments will have a significant economic impact on a substantial 
number of small institutions.
In November 2001, following review of the public comments, the Board 
adopted the proposed amendments to its risk-based and leverage capital 
guidelines to address the treatment of residual interests for all state 
member banks and bank holding companies (66 FR 59614, November 29, 
2001). The final rule combined the capital treatment for residual 
interests into a single final rule on the Capital Treatment of 
Recourse, Direct Credit Substitutes and Residual Interests in Asset 
Securitizations (Docket Number: R-1055; RIN 7100-AB77). The amendments 
were adopted substantially as proposed, except that the Tier 1 
concentration limit in the final rule is imposed on a subset of 
residual interests. The final rule also limits the inclusion of 
interest-only strips that serve in a credit-enhancing capacity, whether 
retained or purchased. Any amounts of such credit-enhancing interest-
only strips that exceed the 25 percent of the Tier 1 capital limitation 
must be deducted from the bank or bank holding company's Tier 1 
capital.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         09/27/00                    65 FR 57993
Board adopted proposal          11/29/01                    66 FR 59614

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Arleen Lustig, Supervisory Financial Analyst, Federal 
Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-2987

RIN: 7100-AC77

[[Page 34184]]

_______________________________________________________________________




3911. 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-1084)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 24; 12 USC 36; 12 USC 92(a); 12 USC 93(a); 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; ...

CFR Citation: 12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: In November 2000, the Board issued for public comment an 
advance notice of proposed rulemaking on the possible development of a 
simplified capital framework for non-complex banking organizations (65 
FR 66193, November 3, 2000). The options outlined in the proposal 
include a simplified risk-based framework, a leverage ratio-only 
approach, or a modified leverage ratio approach. Such a framework could 
relieve the regulatory burden associated with the existing capital 
rules for many non-complex domestic banking institutions. The main 
objective of this proposal was to obtain preliminary views from the 
industry and the public regarding such a framework. Further Board 
action on this proposal is not expected.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         11/03/00                    65 FR 66193
Further Board action not 
expected                        02/28/02

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: David Adkins, Supervisory Financial Analyst, Federal 
Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-5259

RIN: 7100-AC80
_______________________________________________________________________




3912. REGULATION: K -- INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: 
R-0994)

Priority: Substantive, Nonsignificant

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). In October 2001, following review of the 
public comments, the Board adopted final revisions to Regulation K (66 
FR 54345, October 26, 2001). In acting on the proposals, the Board took 
into account changes to the statutory framework governing banks and 
bank holding companies enacted in 1999 in the Gramm-Leach-Bliley Act 
(GLB Act). The final rule is not expected to have a significant 
economic impact on a substantial number of small entities.
Subpart A of Regulation K governs the foreign investments and 
activities of member banks, bank holding companies and Edge 
corporations. As adopted, the final rule streamlined foreign branching 
procedures and expanded the range of permissible activities for 
branches. The final rule also adopted, in part, the proposed 
liberalization of equity underwriting and dealing operations, and the 
general consent authority for bank holding companies was substantially 
increased. In light of enactment of the GLB Act, which grants financial 
holding companies merchant banking authority, the final rule did not 
include significant expansion of the ability to make venture capital 
investments outside of the United States under Regulation K.
Subpart B of Regulation K governs U.S. activities of foreign banking 
organizations. The final rule adopted the proposals to streamline 
certain application procedures applicable to foreign banks seeking to 
expand their operations in the United States and to implement 
interstate banking legislation. The Board adopted, in part, the 
proposed changes to the provisions regarding the qualifications of 
foreign banking organizations for certain exemptions in the Bank 
Holding Company Act. The Board also amended Regulation K to implement 
provisions of the GLB Act regarding representative offices and 
upgrading interstate agencies to branches. The final rule also 
incorporates a number of technical and clarifying amendments to 
Subparts A and B.
Subpart C governs export trading companies. The amendments to Subpart C 
streamlining the notice process for investment in export trading 
companies were adopted as proposed. The Board also proposed for public 
comment technical changes to Subpart D, International Lending 
Supervision (Docket Number: R-1114; 66 FR 54399, October 26, 2001)

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/31/97                    62 FR 68424
Board adopted proposals         10/26/01                    66 FR 54346

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
_______________________________________________________________________




3913. REGULATION: Z -- TRUTH IN LENDING (DOCKET NUMBER: R-1090)

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 1601 et seq

CFR Citation: 12 CFR 226

Legal Deadline: None

Abstract: In December 2000, the Board issued for public comment 
proposed amendments to the provisions of Regulation Z that implement 
the Home Ownership and Equity Protection Act (HOEPA) (65 FR 81438, 
December 26, 2000). HOEPA was enacted in response to evidence of 
abusive lending practices in the home-equity lending market. In 
December 2001, following review of the public comments, the Board 
adopted

[[Page 34185]]

final amendments that are expected to benefit the public by furthering 
HOEPA's protections against abusive lending practices (66 FR 65604, 
December 20, 2001). The amendments (1) broaden the scope of mortgage 
loans subject to HOEPA; (2) prohibit certain acts and practices in 
connection with home-secured loans, including rules to restrict 
creditors from engaging in repeated refinancings of their own HOEPA 
loans over a short period of time; (3) strengthen HOEPA's prohibition 
against extending credit without regard to consumers' repayment 
ability; and (4) enhance disclosures for HOEPA-covered loans that 
consumers receive before closing. Based on available data at the time 
the amendments were adopted, the Board was unable to determine whether 
the final rule will have a significant impact on a substantial number 
of small entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/26/00                    65 FR 81438
Board adopted proposal          12/20/01                    66 FR 65604

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Jane Ahrens, Senior Counsel, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC83
[FR Doc. 02-7699 Filed 05-10-02; 8:45 am]
BILLING CODE 6210-01-S
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