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


[[Page 75597]]

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Part LVII






Federal Reserve System





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Semiannual Regulatory Agenda

[[Page 75598]]



FEDERAL RESERVE SYSTEM (FRS)






_______________________________________________________________________

FEDERAL RESERVE SYSTEM

12 CFR Ch. II

Semiannual Regulatory Flexibility Agenda

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Semiannual regulatory agenda.

_______________________________________________________________________

SUMMARY: The Board is issuing this agenda under the Regulatory 
Flexibility Act and the Board's Statement of Policy Regarding Expanded 
Rulemaking Procedures. The Board anticipates having under consideration 
regulatory matters as indicated below during the period October 1, 
2002, through April 1, 2003. The next agenda will be published in the 
spring of 2003.

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 fall 2002 agenda 
as part of the Fall 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 ([sbull]) 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
----------------------------------------------------------------------------------------------------------------
4169        Regulation: A -- Extensions of Credit by Federal Reserve Banks (Docket Number: R-        7100-AC89
            1123)...............................................................................
4170        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC73
            System..............................................................................
4171        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).............................................
4172        Regulation: DD -- Truth in Savings Act (Section 610 Review).........................     7100-AC86
----------------------------------------------------------------------------------------------------------------


                                    Federal Reserve System--Final Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4173        Regulation: B -- Equal Credit Opportunity (Docket Number: R-1008) (Section 610           7100-AC54
            Review).............................................................................
4174        Regulation: B -- Equal Credit Opportunity; and Regulation: Z -- Truth in Lending         7100-AC46
            (Docket Numbers: R-1040 and R-1043).................................................
4175        Regulation: E -- Electronic Fund Transfers (Docket Numbers: R-0919 and R-1041)......     7100-AC06
4176        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC69
            System (Docket Number: R-1064)......................................................
4177        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).............................................................
4178        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).............................................................
4179        Regulation: M -- Consumer Leasing (Docket Number: R-1042)...........................     7100-AC53
4180        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).........
4181        Regulation: V -- Fair Credit Reporting (Docket Number: R-1082)......................     7100-AC68
4182        Regulation: W -- Transactions Between Banks and Their Affiliates (Docket Number: R-      7100-AC63
            1103)...............................................................................
4183        Regulation: Y -- Bank Holding Companies and Change in Bank Control..................     7100-AC66
4184        Regulation: Y -- Bank Holding Companies and Change in Bank Control..................     7100-AC78
4185        Regulation: Y -- Bank Holding Companies and Change in Bank Control (Docket Number: R-    7100-AC79
            1091)...............................................................................
4186        Regulation: Y -- Bank Holding Companies and Change in Bank Control (Docket Number: R-    7100-AC81
            1094)...............................................................................
4187        Regulation: Y -- Bank Holding Companies and Change in Bank Control (Docket Number: R-    7100-AC82
            1092)...............................................................................
4188        Regulation: BB -- Community Reinvestment (Docket Number: R-1112) (Section 610            7100-AC87
            Review).............................................................................
4189        Regulation: DD -- Truth in Savings (Docket Number: R-1044)..........................     7100-AC34

[[Page 75599]]

 
4190        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
----------------------------------------------------------------------------------------------------------------
4191        Regulation: C -- Home Mortgage Disclosure (Docket Numbers: R-1001 and R-1120).......     7100-AC51
4192        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC84
            System (Docket Number: R-1099)......................................................
----------------------------------------------------------------------------------------------------------------

_______________________________________________________________________


Federal Reserve System (FRS)                        Proposed Rule Stage






_______________________________________________________________________




4169. [bull] REGULATION: A -- EXTENSIONS OF CREDIT BY FEDERAL RESERVE 
BANKS (DOCKET NUMBER: R-1123)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 248(i)-(j); 12 USC 343 et seq; 12 USC 347; 12 
USC 347a; 12 USC 347c; 12 USC 348 et seq; 12 USC 357; 12 USC 374; 12 
USC 374a; 12 USC 461; ...

CFR Citation: 12 CFR part 201

Legal Deadline: None

Abstract: This proposal would restructure the credit programs that 
Reserve Banks make available to depository institutions. Primary and 
secondary credit, which would be available at above-market rates with 
minimal administrative burden, would replace the existing adjustment 
and extended credit programs. These two new programs should eliminate 
the concerns that currently prevent depository institutions from going 
to the discount window during tight money markets when obtaining 
Federal Reserve credit is appropriate, and also should allow the 
Federal Reserve to respond more quickly to liquidity strains during 
national emergencies. The Board has not proposed changes to the 
seasonal credit program but has solicited comment on whether that 
program is still necessary and what the applicable interest rate should 
be. The Board also has solicited comment on the specific economic 
impact of the proposed changes on small depository institutions. 
Following the review of the public comments, the Board is expected to 
take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         05/24/02                    67 FR 36544
Further Board action by         12/00/02

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

Agency Contact: Adrianne G. Threatt, Senior Attorney, Federal Reserve 
System, Legal Division
Phone: 202 452-3554

RIN: 7100-AC89
_______________________________________________________________________




4170. 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. 34-44291, reprinted in 66 FR 27760, May 18, 
2001; Release No. 34-45897, May 8, 2002). 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                      11/00/02

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

[[Page 75600]]

_______________________________________________________________________




4171. 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                      01/00/03

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
_______________________________________________________________________




4172. 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 first quarter 2003 and be 
completed in the same year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board will consider requesting 
comment by                      02/00/03

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






_______________________________________________________________________




4173. 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).
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

[[Page 75601]]

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         11/00/02

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
_______________________________________________________________________




4174. 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         11/00/02

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
_______________________________________________________________________




4175. 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

[[Page 75602]]

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 & electronic delivery 
of disclosures                  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         11/00/02

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
_______________________________________________________________________




4176. 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 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 banks' 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 12/00/02

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
_______________________________________________________________________




4177. 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 
interagency 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         12/00/02

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

[[Page 75603]]

_______________________________________________________________________




4178. 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         12/00/02

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
_______________________________________________________________________




4179. 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         11/00/02

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
_______________________________________________________________________




4180. 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

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.

[[Page 75604]]

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         12/00/02

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

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

RIN: 7100-AC45
_______________________________________________________________________




4181. 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.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         10/20/00                    65 FR 63120
Further Board action by         11/00/02

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
_______________________________________________________________________




4182. 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         11/00/02

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
_______________________________________________________________________




4183. 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 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                      11/00/02

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

[[Page 75605]]

_______________________________________________________________________




4184. 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 225

Legal Deadline: None

Abstract: The Board will consider issuing for public comment proposed 
amendments to Regulation Y that will include a series of technical 
changes to Regulation Y necessitated by the Gramm-Leach-Bliley Act, as 
well as a general reorganization of Regulation Y. The proposal should 
not have a substantive economic impact on small entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board will consider requesting 
comment by                      12/00/02

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
_______________________________________________________________________




4185. 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         06/00/03

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
_______________________________________________________________________




4186. 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         12/00/02

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
_______________________________________________________________________




4187. 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 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         11/00/02

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

[[Page 75606]]

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

RIN: 7100-AC82
_______________________________________________________________________




4188. 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         11/00/02

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
_______________________________________________________________________




4189. 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         11/00/02

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

[[Page 75607]]

_______________________________________________________________________




4190. 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 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         11/00/02

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






_______________________________________________________________________




4191. 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 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 Home 
Ownership and Equity Protection Act and whether a loan is for 
manufactured housing; and (4) expand the coverage of nondepository 
lenders.
On May 2, 2002, the Board delayed the effective date of the final 
revisions to January 1, 2004, with limited exceptions relating to the 
use of 2000 census data.
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).
On June 3, 2002, after review of the public comments, the Board adopted 
additional final revisions to Regulation C. These revisions (1) 
establish the thresholds for determining the loans for which financial 
institutions must report loan pricing data (the spread between the 
annual percentage rate (APR) on a loan and the yield on comparable 
Treasury securities) as required under the final rule approved January 
2002; (2) require lenders to report the lien status of applications and 
loan originations; and (3) effective January 1, 2003, require lenders 
to ask

[[Page 75608]]

applicants their ethnicity, race, and sex, in applications taken by 
telephone.
The final rule would affect all institutions currently within the scope 
of the regulation, including covered small institutions. No newly 
covered institutions 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.
Except for the rule regarding telephone applications, the final rules 
adopted in June 2002 are effective January 1, 2004.

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
Board delayed effective date    05/08/02                    67 FR 30771
Board adopted proposals         06/27/02                    67 FR 43218

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-AC51
_______________________________________________________________________




4192. 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.
The rule is not expected to have a significant economic impact on a 
substantial number of small entities subject to the regulation. 
Following review of the public comments, the Board approved the joint 
final rule substantially as proposed on May 20, 2002.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         04/09/01                    66 FR 18411
Board approved final rule       05/20/02                    67 FR 38844

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
[FR Doc. 02-24268 Filed 12-06-02; 8:45 am]
BILLING CODE 6210-01-S
