56968 Federal Register / Vol. 69, No. 184 / Thursday, September 23, 2004 / Proposed Rules 

1Pub. L. 99–571, 100 Stat. 3208 (1986).

2 31 U.S.C. 3121(h)(4) & 9110(d).

3The GSA implementing regulations were 

published as a final rule on July 24, 1987 (52 FR 

27901). The regulations, as amended, are codified 

at 17 CFR Chapter IV. The requirements for 

depository institutions that hold government 

securities as a fiduciary, custodian, or otherwise are 

set out in Subchapter B (17 CFR Part 450).

4See 17 CFR 450.2(a).

5 52 FR 5677 (February 25, 1987).

6See 17 CFR 450.2(c). The GSA regulations at 

§ 450.2(c) define ‘‘depository institution’’ as having 

the meaning stated in clauses (i) through (vi) of 

§ 19(b)(1)(A) of the Federal Reserve Act (12 U.S.C. 

461(b)(1)(A) (i)–(vi)). Savings associations are 

included in the definition of depository institutions 

at 12 U.S.C. 461(b)(1)(A)(vi).

7See 17 CFR 403.5(a)(2) & 401.4(b)(1)(ii).

PART 71—DESIGNATION OF CLASS A, 

CLASS B, CLASS C, CLASS D, AND 

CLASS E AIRSPACE AREAS; 

AIRWAYS; ROUTES; AND REPORTING 

POINTS 

1. The authority citation for part 71 

continues to read as follows:

Authority: 49 U.S.C. 106(g), 40103, 40113, 

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–

1963 Comp., p. 389.

§ 71. [Amended] 

2. The incorporation by reference in 

14 CFR 71.1 of the Federal Aviation 

Administration Order 7400.9L, Airspace 

Designations and Reporting Points, 

dated September 2, 2003, and effective 

September 16, 2003, is amended as 

follows:

* * * * *

Paragraph 6002 Class E airspace designated 

as surface areas.

* * * * *

AGL OH E2 Findlay, OH [Revoked]

* * * * *

Issued in Des Plaines, Illinois, On 

September 9, 2004. 

Keith A. Thompson, 

Area Staff Manager, Central Terminal 

Operations. 

[FR Doc. 04–21394 Filed 9–22–04; 8:45 am]

BILLING CODE 4910–13–M

DEPARTMENT OF THE TREASURY

17 CFR Part 450 

RIN 1505–AB06 

[Docket No. BPD GSRS 04–02] 

Government Securities Act 

Regulations: Custodial Holdings of 

Government Securities

AGENCY: Office of the Assistant 

Secretary for Financial Markets, 

Treasury.

ACTION: Proposed rule.

SUMMARY: The Department of the 

Treasury (‘‘Treasury,’’ ‘‘We,’’ or ‘‘Us’’) is 

issuing this proposed rule to solicit 

comments on a proposed amendment to 

the regulations issued under the 

Government Securities Act of 1986, as 

amended (‘‘GSA’’), that are applicable to 

depository institutions that hold 

government securities as fiduciary, 

custodian, or otherwise for the account 

of customers. The provisions of the GSA 

regulations for custodial holding of 

government securities held by 

depository institutions generally 

provide an exemption from these rules 

for a depository institution’s holdings of 

such government securities that are 

subject to fiduciary standards of the 

Board of Governors of the Federal 

Reserve System (‘‘the Board’’), the 

Federal Deposit Insurance Corporation 

(‘‘FDIC’’), or the Office of the 

Comptroller of the Currency (‘‘OCC’’). 

This proposed amendment would 

modify the exemption to include 

savings associations subject to the 

fiduciary standards of the Office of 

Thrift Supervision (‘‘OTS’’).

DATES: Submit comments on or before 

October 25, 2004.

ADDRESSES: You may send comments to: 

Bureau of the Public Debt, Government 

Securities Regulations Staff, 799 9th 

Street NW., Washington, DC 20239–

0001. You also may e-mail us comments 

at either govsecreg@bpd.treas.gov, or 

through the Federal eRulemaking portal 

at http://www.regulations.gov and 

follow the instructions for submitting 

comments. When sending comments by 

e-mail, please provide your full name, 

mailing address, and docket number 

BPD GSRS 04–02 or RIN 1505–AB06. 

You may download this proposed 

amendment from http://

www.regulations.gov or the Bureau of 

the Public Debt’s Web site at http://

www.publicdebt.treas.gov. The 

comments we receive will be available 

on Public Debt’s web site. The proposed 

amendment and comments received 

will also be available for public 

inspection and copying at the Treasury 

Department Library, Room 1428, Main 

Treasury Building, 1500 Pennsylvania 

Avenue, NW., Washington, DC 20220. 

To visit the library, call (202) 622–0990 

for an appointment.

FOR FURTHER INFORMATION CONTACT: Lori 

Santamorena (Executive Director), Lee 

Grandy (Associate Director), or Deidere 

Brewer (Government Securities 

Specialist), Bureau of the Public Debt, 

Government Securities Regulations 

Staff, (202) 504–3632 or e-mail us at 

govsecreg@bpd.treas.gov. 

I. Background 

A. GSA Regulations 

Title II of the GSA 1 requires Treasury 

to prescribe, by regulation, standards for 

the safeguarding and use of government 

securities. The standards apply to 

depository institutions that hold 

government securities as fiduciary, 

custodian, or otherwise for the account 

of a customer. The regulations are to 

provide for the adequate segregation of 

government securities, including 

government securities subject to 

repurchase transactions. Prior to the 

adoption of regulations, Treasury is 

required to determine with respect to 

each appropriate regulatory agency, 

whether its ‘‘rules and standards 

adequately meet the purposes of the 

regulations’’ 2 to be issued, and if 

Treasury so determines, it must exempt 

any depository institution subject to 

those rules or standards from the 

regulations.

Treasury issued regulations under 

Title II of the GSA in l987 at 17 CFR Part 

450.3 Based on the information 

provided by the appropriate regulatory 

agencies 4 and Treasury’s own analysis, 

Treasury determined in 1987 that the 

rules and standards of the OCC, the 

FDIC, and the Board adequately met the 

purposes of the regulations.5

Consequently, Treasury provided an 

exemption in § 450.3 for depository 

institutions 6 subject to these standards 

with respect to their holdings in a 

fiduciary capacity. The exemption also 

extends to government securities held in 

a custodial capacity, provided the 

institutions have adopted policies and 

procedures that would apply to such 

custodial holdings all of the 

requirements imposed by their 

appropriate regulatory agency on 

government securities held in a 

fiduciary capacity, and the custodial 

holdings are subject to examination by 

the appropriate regulatory agency for 

compliance with such fiduciary 

requirements.

Whether or not they are exempt under 

450.3, however, depository institutions 

that retain custody of government 

securities subject to a repurchase 

agreement are required to comply with 

the confirmation requirements for holdin-custody repurchase agreements in the 

regulations under Title I of the GSA at 

403.5(d).7 Although Treasury initially 

provided an exception from the hold-incustody repurchase agreement 

requirements for financial institutions 

that held customer securities in 

safekeeping and that did not retain the 

right to substitute securities, Treasury 

Federal Register / Vol. 69, No. 184 / Thursday, September 23, 2004 / Proposed Rules 56969

8 53 FR 28981 (August 1, 1988). Treasury stated 

that securities transactions should be confirmed 

promptly and that such treatment is particularly 

appropriate for hold-in-custody repurchase 

transactions, even when the subject securities are 

delivered to a separate safekeeping department 

within the financial institution.

9See Letter from Scott M. Albinson, Managing 

Director, Office of Thrift Supervision, Department 

of the Treasury, to Van Zeck, Commissioner of the 

Public Debt, Bureau of the Public Debt, Department 

of the Treasury (October 6, 2003).

10See § 5(n) of Home Owners’ Loan Act (HOLA) 

12 U.S.C. 1464(n) for thrifts and 12 U.S.C. 92a for 

banks.

11See 12 U.S.C. 1464(n)(2), also 12 CFR part 550.

12 67 FR 76293 (December 12, 2002).

13 5 U.S.C. 601, et seq.

14 44 U.S.C. 3507(d).

rescinded that exception in August 

1988.8

B. OTS Request 

On October 6, 2003, the OTS 

submitted a written request that the 

exemption at § 450.3 be extended to 

include OTS-regulated savings 

associations that meet its conditions.9 In 

1987, when Treasury developed the 

GSA regulations, savings associations 

were not eligible for the exemption 

because the Federal Home Loan Bank 

Board, OTS’ predecessor, had not 

completed its examination procedures 

or guidance related to the GSA 

regulations. Savings associations are not 

included in the exemption, therefore 

they must comply with the 

requirements contained in Part 450 with 

respect to all government securities held 

for the account of customers in a 

capacity as a fiduciary or a custodian, as 

well as the requirements under 

applicable fiduciary law, including OTS 

fiduciary regulations at 12 CFR part 550.

The OTS request states that when 

Congress gave federal savings 

associations trust powers in 1980, the 

intent was to provide them with the 

ability to offer trust services on the same 

basis as national banks.10 Without this 

same ability, the OTS states that savings 

associations are at a competitive 

disadvantage and subject to duplicative 

rules.

The OTS further states in its request 

that it now has examination procedures 

for the GSA regulations in place, and 

that OTS’ regulation of fiduciary, 

custodial and other holdings of 

government securities adequately 

protects customer accounts. Further, the 

OTS states that the regulatory oversight 

of fiduciary activities of savings 

associations is the same as other federal 

banking agencies, and its trust 

regulations, policies and procedures are 

similarly aligned with those of the OCC. 

II. Analysis 

Based on the information provided by 

the OTS and our analysis, we are 

proposing to amend the GSA regulations 

to add savings associations regulated by 

the OTS to the exemption in § 450.3 

under the same conditions that 

currently apply to depository 

institutions regulated by the OCC, the 

FDIC and the Board. We are not 

proposing any other changes to the 

current rule. 

The OTS is responsible for ensuring 

that fiduciary powers are exercised by 

savings associations in a manner 

consistent with the best interests of 

fiduciary beneficiaries and other parties 

at interest through conformity with 

applicable federal and state law and 

sound fiduciary principles. The OTS 

also is responsible for ensuring that the 

safekeeping of fiduciary assets are kept 

separate from the savings association’s 

assets.11 Savings associations regulated 

by the OTS are also subject to 

examination procedures that require a 

review of the institution’s systems and 

procedures to ensure that assets are 

adequately protected; review of 

applicable laws, regulations and 

fiduciary principles governing the 

safekeeping of assets; review of the 

institution’s accounting system to insure 

that records are accurate and reliable; 

and review of the adequacy of the 

institution’s audit program. 

Additionally, the OTS has confirmation 

requirements that are consistent with 

those of the other bank regulators. All 

savings associations must comply with 

12 CFR part 551, subpart A, which 

established recordkeeping and 

confirmation requirements for securities 

transactions.12 Accordingly, based on 

the information provided by the OTS 

and Treasury’s own analysis, we have 

determined that the rules and standards 

of the OTS adequately meet the 

purposes of part 450.

We welcome comments on this 

proposed rule amendment and in 

particular whether it meets the intent of 

protecting custodial holdings of 

government securities for customers by 

depository institutions. We believe the 

proposed change would ensure that 

savings associations subject to the 

jurisdiction of the OTS are not subject 

to duplicative requirements. In 

developing this proposed amendment, 

we have consulted with the staffs of the 

bank regulatory agencies and also the 

staff of the Securities and Exchange 

Commission. 

While the Treasury does not 

anticipate that subsequent modifications 

of the applicable OTS rules and 

standards will make this exemption 

inappropriate, we expect (as provided in 

§ 450.3(b)) that the OTS would inform 

us of any material revisions to such 

rules and standards. 

III. Special Analysis 

This proposed rule would make a 

technical amendment to the GSA 

regulations that would expand the 

exemption from the part 450 

requirements, thus making OTS 

regulated savings associations eligible 

for the exemption. This proposed rule 

amendment does not meet the criteria 

for a ‘‘significant regulatory action’’ for 

the purposes of Executive Order 12866. 

In addition, pursuant to the 

Regulatory Flexibility Act,13 we certify 

that the proposed regulations, if 

adopted, will not have a significant 

economic impact on a substantial 

number of small entities. The proposed 

rule is deregulatory in that it provides 

a basis for exempting OTS regulated 

savings associations from the 

requirements of part 450. Accordingly, a 

regulatory flexibility analysis is not 

required.

The Paperwork Reduction Act of 1995 

requires that collections of information 

prescribed in proposed rules be 

submitted to the Office of Management 

and Budget for review and approval.14

Collections of information contained in 

the GSA regulations have been 

previously reviewed and approved by 

the Office of Management and Budget 

under Control Number 1535–0089. 

Under the Act, an agency may not 

conduct or sponsor, and a person is not 

required to respond to, a collection of 

information unless it displays a valid 

OMB control number.

The collections of information related 

to this proposed rule are contained in 

part 450 of the GSA regulations. This 

proposed rule would expand the 

exemption at § 450.3 to include savings 

associations regulated by the OTS that 

meet the conditions of the exemption. 

The OTS estimates that 132 savings 

associations would qualify for the 

exemption, thus making them no longer 

subject to part 450.

List of Subjects in 17 CFR Part 450 

Banks, banking, Depository 

institutions, Government securities, 

Reporting and recordkeeping 

requirements.

For the reasons set out in the 

preamble, we propose that 17 CFR part 

450.3 be amended as follows:

PART 450—CUSTODIAL HOLDINGS 

OF GOVERNMENT SECURITIES BY 

DEPOSITORY INSTITUTIONS 

1. The authority citation for part 450 

continues to read as follows:

56970 Federal Register / Vol. 69, No. 184 / Thursday, September 23, 2004 / Proposed Rules 

Authority: Sec. 201, Pub. L. 99–571, 100 

Stat. 3222–23 (31 U.S.C. 3121, 9110); Sec. 

101, Pub. L. 99–571, 100 Stat. 3208 (15 U.S.C. 

78o–5(b)(1)(A), (b)(4), (b)(5)(B)).

2. Section 450.3 is amended by 

revising paragraph (a) to read as follows:

§ 450.3 Exemption for holdings subject to 

fiduciary standards. 

(a) The Secretary has determined that 

the rules and standards of the 

Comptroller of the Currency, the Board 

of Governors of the Federal Reserve 

System, the Federal Deposit Insurance 

Corporation, and the Office of Thrift 

Supervision governing the holding of 

government securities in a fiduciary 

capacity by depository institutions 

subject thereto are adequate. 

Accordingly, such depository 

institutions are exempt from this Part 

with respect to their holdings of 

government securities in a fiduciary 

capacity and their holdings of 

government securities in a custodial 

capacity provided that: 

(1) Such institution has adopted 

policies and procedures that would 

apply to such custodial holdings all the 

requirements imposed by its appropriate 

regulatory agency that are applicable to 

government securities held in a 

fiduciary capacity, and 

(2) Such custodial holdings are 

subject to examination by the 

appropriate regulatory agency for 

compliance with such fiduciary 

requirements.

* * * * *

Dated: September 8, 2004. 

Timothy S. Bitsberger, 

Acting Assistant Secretary for Financial 

Markets.

[FR Doc. 04–21334 Filed 9–22–04; 8:45 am] 

BILLING CODE 4810–39–P

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 300 

[FRL–7817–7] 

National Priorities List for Uncontrolled 

Hazardous Waste Sites, Proposed Rule 

No. 41

AGENCY: Environmental Protection 

Agency.

ACTION: Proposed rule.

SUMMARY: The Comprehensive 

Environmental Response, 

Compensation, and Liability Act 

(‘‘CERCLA’’ or ‘‘the Act’’), as amended, 

requires that the National Oil and 

Hazardous Substances Pollution 

Contingency Plan (‘‘NCP’’) include a list 

of national priorities among the known 

releases or threatened releases of 

hazardous substances, pollutants, or 

contaminants throughout the United 

States. The National Priorities List 

(‘‘NPL’’) constitutes this list. The NPL is 

intended primarily to guide the 

Environmental Protection Agency 

(‘‘EPA’’ or ‘‘the Agency’’) in determining 

which sites warrant further 

investigation. These further 

investigations will allow EPA to assess 

the nature and extent of public health 

and environmental risks associated with 

the site and to determine what CERCLAfinanced remedial action(s), if any, may 

be appropriate. This rule proposes 14 

new sites to the NPL; all to the General 

Superfund Section of the NPL.

DATES: Comments regarding any of these 

proposed listings must be submitted 

(postmarked) on or before November 22, 

2004.

ADDRESSES: By electronic access: Go 

directly to EPA Dockets at http://

www.epa.gov/edocket and follow the 

online instructions for submitting 

comments. Once in the system, select 

‘‘search’’, and then key Docket ID No. 

SFUND–2004–0012. The system is an 

‘‘anonymous access’’ system, which 

means EPA will not know your identity, 

e-mail address, or other contact 

information unless you provide it in the 

body of your comment. 

By Postal Mail: Mail original and 

three copies of comments (no facsimiles 

or tapes) to Docket Coordinator, 

Headquarters; U.S. Environmental 

Protection Agency; CERCLA Docket 

Office (Mail Code 5305T); 1200 

Pennsylvania Avenue NW., Washington, 

DC 20460, Attention Docket ID No. 

SFUND–2004–0012. 

By Express Mail or Courier: Send 

original and three copies of comments 

(no facsimiles or tapes) to Docket 

Coordinator, Headquarters; U.S. 

Environmental Protection Agency; 

CERCLA Docket Office; 1301 

Constitution Avenue; EPA West, Room 

B102, Washington, DC 20004, Attention 

Docket ID No. SFUND–2004–0012. Such 

deliveries are only accepted during the 

Docket’s normal hours of operation 

(8:30 a.m. to 4:30 p.m., Monday through 

Friday excluding Federal holidays). 

By e-Mail: Comments in ASCII format 

only may be mailed directly to 

superfund.docket@epa.gov. Cite the 

Docket ID No. SFUND–2004–0012 in 

your electronic file. Please note that 

EPA’s e-mail system automatically 

captures your e-mail address and is 

included as part of the comment that is 

placed in the public dockets and made 

available in EPA’s electronic public 

docket. 

For additional Docket addresses and 

further details on their contents, see 

section II, ‘‘Public Review/Public 

Comment,’’ of the Supplementary 

Information portion of this preamble.

FOR FURTHER INFORMATION CONTACT:

Yolanda Singer, phone (703) 603–8835, 

State, Tribal and Site Identification 

Branch; Assessment and Remediation 

Division; Office of Superfund 

Remediation and Technology 

Innovation (Mail Code 5204G); U.S. 

Environmental Protection Agency; 1200 

Pennsylvania Avenue NW., Washington, 

DC 20460; or the Superfund Hotline, 

Phone (800) 424–9346 or (703) 412–

9810 in the Washington, DC, 

metropolitan area.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Background 

A. What Are CERCLA and SARA? 

B. What Is the NCP? 

C. What Is the National Priorities List 

(NPL)? 

D. How Are Sites Listed on the NPL? 

E. What Happens to Sites on the NPL? 

F. Does the NPL Define the Boundaries of 

Sites? 

G. How Are Sites Removed From the NPL? 

H. May EPA Delete Portions of Sites From 

the NPL as They Are Cleaned Up? 

I. What Is the Construction Completion List 

(CCL)? 

II. Public Review/Public Comment 

A. May I Review the Documents Relevant 

to This Proposed Rule? 

B. How Do I Access the Documents? 

C. What Documents Are Available for 

Public Review at the Headquarters 

Docket? 

D. What Documents Are Available for 

Public Review at the Regional Dockets? 

E. How Do I Submit My Comments? 

F. What Happens to My Comments? 

G. What Should I Consider When 

Preparing My Comments? 

H. May I Submit Comments After the 

Public Comment Period Is Over? 

I. May I View Public Comments Submitted 

by Others? 

J. May I Submit Comments Regarding Sites 

Not Currently Proposed to the NPL? 

III. Contents of This Proposed Rule 

A. Proposed Additions to the NPL 

B. Status of NPL 

C. Withdrawal of Site From Proposal to the 

NPL 

IV. Statutory and Executive Order Reviews 

A. Executive Order 12866: Regulatory 

Planning and Review 

1. What Is Executive Order 12866? 

2. Is This Proposed Rule Subject to 

Executive Order 12866 Review? 

B. Paperwork Reduction Act 

1. What Is the Paperwork Reduction Act? 

2. Does the Paperwork Reduction Act 

Apply to This Proposed Rule?

C. Regulatory Flexibility Act 

1. What is the Regulatory Flexibility Act? 

2. How Has EPA Complied with the 

Regulatory Flexibility Act?