6226 Federal Register / Vol. 74, No. 24 / Friday, February 6, 2009 / Rules and Regulations 

Regulatory Flexibility Act provides that 

an agency is not required to prepare and 

publish a regulatory flexibility analysis 

if the agency certifies that the final rule 

will not have a significant economic 

impact on a substantial number of small 

entities. 5 U.S.C. 605(b). 

Pursuant to section 605(b), the Board 

certifies that this final rule will not have 

a significant economic impact on a 

substantial number of small entities. 

The rule reduces regulatory burden on 

large and small insured depository 

institutions by granting an exemption 

from the Federal transactions with 

affiliates regime for insured depository 

institutions that engage in securities 

financing transactions with affiliates. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act (44 U.S.C. 3506; 5 CFR 

1320 Appendix A.1), the Board has 

reviewed the final rule under authority 

delegated to the Board by the Office of 

Management and Budget. The rule 

contains no collections of information 

pursuant to the Paperwork Reduction 

Act. 

Plain Language 

Section 722 of the Gramm-LeachBliley Act requires the Board to use 

‘‘plain language’’ in all proposed and 

final rules. In light of this requirement, 

the Board has sought to present the final 

rule in a simple and straightforward 

manner. The Board invited comment on 

whether the Board could take additional 

steps to make the rule easier to 

understand. The Board received no 

comments on this subject. 

List of Subjects in 12 CFR Part 223 

Banks, Banking, Federal Reserve 

System. 

Authority and Issuance 

■ For the reasons set forth in the 

preamble, Chapter II of Title 12 of the 

Code of Federal Regulations is amended 

as follows: 

PART 223—TRANSACTIONS 

BETWEEN MEMBER BANKS AND 

THEIR AFFILIATES (REGULATION W) 

■ 1. The authority citation for part 223 

continues to read as follows: 

Authority: 12 U.S.C. 371c and 371c–1. 

■ 2. In § 223.42, revise paragraph (n) to 

read as follows: 

§ 223.42 What covered transactions are 

exempt from the quantitative limits, 

collateral requirements, and low-quality 

asset prohibition? 

* * * * * 

(n) Securities financing transactions. 

(1) From September 15, 2008, until 

October 30, 2009 (unless further 

extended by the Board), securities 

financing transactions with an affiliate, 

if: 

(i) The security or other asset financed 

by the member bank in the transaction 

is of a type that the affiliate financed in 

the U.S. tri-party repurchase agreement 

market at any time during the week of 

September 8–12, 2008; 

(ii) The transaction is marked to 

market daily and subject to daily 

margin-maintenance requirements, and 

the member bank is at least as overcollateralized in the transaction as the 

affiliate’s clearing bank was overcollateralized in comparable 

transactions with the affiliate in the U.S. 

tri-party repurchase agreement market 

on September 12, 2008; 

(iii) The aggregate risk profile of the 

securities financing transactions under 

this exemption is no greater than the 

aggregate risk profile of the securities 

financing transactions of the affiliate in 

the U.S. tri-party repurchase agreement 

market on September 12, 2008; 

(iv) The member bank’s top-tier 

holding company guarantees the 

obligations of the affiliate under the 

securities financing transactions (or 

provides other security to the bank that 

is acceptable to the Board); and 

(v) The member bank has not been 

specifically informed by the Board, after 

consultation with the member bank’s 

appropriate Federal banking agency, 

that the member bank may not use this 

exemption. 

(2) For purposes of this exemption: 

(i) Securities financing transaction 

means: 

(A) A purchase by a member bank 

from an affiliate of a security or other 

asset, subject to an agreement by the 

affiliate to repurchase the asset from the 

member bank; 

(B) A borrowing of a security by a 

member bank from an affiliate on a 

collateralized basis; or 

(C) A secured extension of credit by 

a member bank to an affiliate. 

(ii) U.S. tri-party repurchase 

agreement market means the U.S. 

market for securities financing 

transactions in which the counterparties 

use custodial arrangements provided by 

JPMorgan Chase Bank or Bank of New 

York or another financial institution 

approved by the Board. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, January 30, 2009. 

Jennifer J. Johnson, 

Secretary of the Board. 

[FR Doc. E9–2337 Filed 2–5–09; 8:45 am] 

BILLING CODE 6210–01–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 223 

[Regulation W; Docket No. R–1331] 

Transactions Between Member Banks 

and Their Affiliates: Exemption for 

Certain Purchases of Asset-Backed 

Commercial Paper by a Member Bank 

From an Affiliate 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Final rule. 

SUMMARY: To reduce liquidity and other 

strains being experienced by money 

market mutual funds, the Board of 

Governors of the Federal Reserve 

System (Board) adopted on September 

19, 2008, the Asset-Backed Commercial 

Paper Money Market Mutual Fund 

Lending Facility (AMLF), that enables 

depository institutions and bank 

holding companies to borrow from the 

Federal Reserve Bank of Boston on a 

non-recourse basis if they use the 

proceeds of the loan to purchase certain 

types of asset-backed commercial paper 

(ABCP) from money market mutual 

funds. To facilitate use of the AMLF by 

member banks, the Board also has 

adopted regulatory exemptions for 

member banks from certain provisions 

of sections 23A and 23B of the Federal 

Reserve Act and the Board’s Regulation 

W. The exemptions increase the 

capacity of a member bank to purchase 

ABCP from affiliated money market 

mutual funds in connection with the 

AMLF. 

DATES: Effective January 30, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Mark E. Van Der Weide, Assistant 

General Counsel, (202) 452–2263, or 

Andrea R. Tokheim, Counsel, (202) 452– 

2300, Legal Division; or Norah M. 

Barger, Deputy Director, (202) 452– 

2402, Division of Banking Supervision 

and Regulation. For the hearing 

impaired only, Telecommunication 

Device for the Deaf (TDD), (202) 263– 

4869. 

SUPPLEMENTARY INFORMATION: 

In light of the ongoing dislocations in 

the financial markets, and the impact of 

such dislocations on the functioning of 

the ABCP markets and on the operations 

of money market mutual funds, the 

Board adopted the AMLF on September 


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Federal Register / Vol. 74, No. 24 / Friday, February 6, 2009 / Rules and Regulations 6227 

1Board of Governors of the Federal Reserve 

System (2008), ‘‘Federal Reserve announces the 

extension of three liquidity facilities through April 

30, 2009,’’ press release, December 2, 2008. 

2 73 FR 55708. 

19, 2008. Under the facility, depository 

institutions and bank holding 

companies (banking organizations) are 

able to borrow from the Federal Reserve 

Bank of Boston on a non-recourse basis 

on condition that the organizations use 

the proceeds of the Federal Reserve 

credit to purchase, at amortized cost, 

certain highly rated U.S. dollardenominated ABCP from money market 

mutual funds. The ABCP purchased 

must be used to secure the borrowing 

from the Reserve Bank. The purpose of 

the AMLF is to assist money market 

mutual funds to obtain liquidity by 

enabling them to sell some of their highcredit-quality secured assets at 

amortized cost. The AMLF, which was 

initially scheduled to expire on January 

31, 2009, has been extended to April 30, 

2009.1

To facilitate usage of the AMLF, on 

September 19, 2008, the Board adopted 

on an interim basis, and requested 

public comment on, exemptions from 

sections 23A and 23B of the Federal 

Reserve Act (12 U.S.C. 371c, 371c–1) 

and the Board’s Regulation W (12 CFR 

part 223).2 The exemptions were 

designed to increase the capacity of a 

member bank to purchase ABCP from an 

affiliated money market mutual fund in 

connection with the AMLF. Under the 

final rule, a member bank may use the 

exemptions only if the bank has not 

been specifically informed by the Board, 

after consultation with the bank’s 

appropriate Federal banking agency, 

that the bank may not use these 

exemptions. If the Board believes, after 

such consultation, that use of the 

exemptions would not be appropriate 

for the member bank, the Board may 

withdraw the exemptions for the bank 

or may impose supplemental conditions 

on the bank’s use of the exemptions. 

After considering the comments, the 

Board has adopted a final rule that is 

largely identical to the interim final rule 

but includes minor changes to reflect 

the extended duration of the AMLF. The 

interim final rule provided that the 

exemptions applied only to purchases of 

ABCP from an affiliated SEC-registered 

open-end investment company that 

holds itself out as a money market 

mutual fund under SEC Rule 2a–7 (17 

CFR 270.2a–7) between September 19, 

2008, and January 30, 2009. This 

timeframe coincided with the dates of 

the AMLF. In the final rule, the date 

range for eligible ABCP purchases has 

been eliminated, but the rule continues 

to provide that the exemptions are 

available only for purchases of ABCP 

where the ABCP is used to secure 

borrowing from the AMLF. As a result, 

the exemptions effectively will no 

longer be available once the AMLF 

expires. 

The Board has determined that these 

exemptions are in the public interest 

and consistent with the purposes of 

sections 23A and 23B. The substantial 

protections provided to intermediaries 

by the Federal Reserve in connection 

with the AMLF largely mitigate the 

safety-and-soundness concerns that 

sections 23A and 23B were designed to 

address. Because Federal Reserve 

extensions of credit to a member bank 

under the AMLF are on a non-recourse 

basis, the bank should bear no risk of 

loss from purchases of ABCP under the 

facility. Therefore, the Board believes 

that it is appropriate to exempt a 

member bank that serves as an 

intermediary in the AMLF from the 

requirements of sections 23A and 23B 

and Regulation W. 

Administrative Procedure Act 

Pursuant to sections 553(d) of the 

Administrative Procedure Act (5 U.S.C. 

553(d)), the Board finds that there is 

good cause for making the rule effective 

immediately on January 30, 2009. The 

Board has adopted the rule in light of, 

and to help address, the continuing 

unusual and exigent circumstances in 

the financial markets. The rule will 

provide immediate relief to depository 

institutions that elect to participate in 

the ABCP Lending Facility. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

requires an agency that is issuing a final 

rule to prepare and make available a 

regulatory flexibility analysis that 

describes the impact of the final rule on 

small entities. 5 U.S.C. 603(a). The 

Regulatory Flexibility Act provides that 

an agency is not required to prepare and 

publish a regulatory flexibility analysis 

if the agency certifies that the final rule 

will not have a significant economic 

impact on a substantial number of small 

entities. 5 U.S.C. 605(b). 

Pursuant to section 605(b), the Board 

certifies that this final rule will not have 

a significant economic impact on a 

substantial number of small entities. 

The rule reduces regulatory burden on 

large and small insured depository 

institutions by granting exemptions 

from the Federal transactions with 

affiliates regime for insured depository 

institutions that purchase ABCP from 

affiliated money market mutual funds 

pursuant to the AMLF. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act (44 U.S.C. 3506; 5 CFR 

1320 Appendix A.1), the Board has 

reviewed the final rule under authority 

delegated to the Board by the Office of 

Management and Budget. The rule 

contains no collections of information 

pursuant to the Paperwork Reduction 

Act. 

Plain Language 

Section 722 of the Gramm-LeachBliley Act requires the Board to use 

‘‘plain language’’ in all proposed and 

final rules. In light of this requirement, 

the Board has sought to present the final 

rule in a simple and straightforward 

manner. The Board invited comment on 

whether it could take additional steps to 

make the rule easier to understand. The 

Board received no comments on this 

subject. 

List of Subjects in 12 CFR Part 223 

Banks, Banking, Federal Reserve 

System. 

Authority and Issuance 

■ For the reasons set forth in the 

preamble, the Board amends Chapter II 

of Title 12 of the Code of Federal 

Regulations as follows: 

PART 223—TRANSACTIONS 

BETWEEN MEMBER BANKS AND 

THEIR AFFILIATES (REGULATION W) 

■ 1. The authority citation for part 223 

continues to read as follows: 

Authority: 12 U.S.C. 371c and 371c–1. 

■ 2. In § 223.42, revise paragraph (o) to 

read as follows: 

§ 223.42 What covered transactions are 

exempt from the quantitative limits, 

collateral requirements, and low-quality 

asset prohibition? 

* * * * * 

(o) Purchases of certain asset-backed 

commercial paper. Purchases of assetbacked commercial paper from an 

affiliated SEC-registered open-end 

investment company that holds itself 

out as a money market mutual fund 

under SEC Rule 2a–7 (17 CFR 270.2a– 

7), if the member bank: 

(1) Purchases the asset-backed 

commercial paper on or after September 

19, 2008; 

(2) Pledges the asset-backed 

commercial paper to a Federal Reserve 

Bank to secure financing from the assetbacked commercial paper lending 

facility (AMLF) established by the Board 

on September 19, 2008; and 

(3) Has not been specifically informed 

by the Board, after consultation with the 

member bank’s appropriate Federal 


dwashington3 on PROD1PC60 with RULES
6228 Federal Register / Vol. 74, No. 24 / Friday, February 6, 2009 / Rules and Regulations 

banking agency, that the member bank 

may not use this exemption. 

■ 3. Revise § 223.56 to read as follows: 

§ 223.56 What transactions are exempt 

from the market-terms requirement of 

section 23B? 

The following transactions are exempt 

from the market-terms requirement of 

§ 223.51. 

(a) Purchases of certain asset-backed 

commercial paper. Purchases of assetbacked commercial paper from an 

affiliated SEC-registered open-end 

investment company that holds itself 

out as a money market mutual fund 

under SEC Rule 2a–7 (17 CFR 270.2a– 

7), if the member bank: 

(1) Purchases the asset-backed 

commercial paper on or after September 

19, 2008; 

(2) Pledges the asset-backed 

commercial paper to a Federal Reserve 

Bank to secure financing from the assetbacked commercial paper lending 

facility (AMLF) established by the Board 

on September 19, 2008; and 

(3) Has not been specifically informed 

by the Board, after consultation with the 

member bank’s appropriate Federal 

banking agency, that the member bank 

may not use this exemption. 

(b) [Reserved]. 

By order of the Board of Governors of the 

Federal Reserve System, January 30, 2009. 

Jennifer J. Johnson, 

Secretary of the Board. 

[FR Doc. E9–2338 Filed 2–5–09; 8:45 am] 

BILLING CODE 6210–01–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

32 CFR Part 199 

[DOD–2007–HA–0048] 

RIN 0720–AB19 

TRICARE; Hospital Outpatient 

Prospective Payment System (OPPS): 

Delay of Effective Date and Additional 

Opportunity for Public Comment 

AGENCY: Office of the Secretary, 

Department of Defense. 

ACTION: Final rule; delay of effective 

date and opportunity for public 

comment. 

SUMMARY: On December 10, 2008, DoD 

published a final rule implementing the 

TRICARE Hospital Outpatient 

Prospective Payment System (OPPS), 

with an effective date of February 9, 

2009 (73 FR 74945). Since that date, 

DoD has determined that in order for 

administrative claims processing 

procedures to be fully in place to 

implement effectively the new OPPS 

payments, TRICARE’s OPPS will begin 

to apply to health care services provided 

on or after May 1, 2009. In the 

meantime, a memorandum of January 

20, 2009, from the Assistant to the 

President and Chief of Staff, entitled 

‘‘Regulatory Review,’’ published in the 

Federal Register on January 26, 2009, 

calls for agencies to consider delaying 

effective dates of rules not yet effective 

and inviting new public comment. In 

view of both of these developments, the 

Department is delaying the effective 

date of TRICARE’s OPPS until May 1, 

2009, and is inviting additional public 

comment on the final rule. Any timely 

public comments received will be 

considered and any changes to the final 

rule will be published in the Federal 

Register. 

DATES: The effective date of the OPPS 

final rule published December 10, 2008 

(73 FR 74945) is delayed until May 1, 

2009. Comments must be received on or 

before March 9, 2009. 

ADDRESSES: You may submit comments, 

identified by docket number and/or 

Regulatory Information Number (RIN) 

and title, by either of the following 

methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Federal Docket Management 

System Office, 1160 Defense Pentagon, 

Washington, DC 20301–1160. 

Instructions: All submissions received 

must include the agency name and 

docket number or RIN for this Federal 

Register document. The general policy 

for comments and other submissions 

from members of the public is to make 

these submissions available for public 

viewing on the Internet at http:// 

regulations.gov as they are received 

without change, including any personal 

identifiers or contact information. 

FOR FURTHER INFORMATION CONTACT: 

David E. Bennett or Martha M. Maxey, 

TRICARE Management Activity, 

Medical Benefits and Reimbursement 

Branch, telephone (303) 676–3494 or 

(303) 676–3627. 

Dated: February 3, 2009. 

Patricia L. Toppings, 

OSD Federal Register Liaison Officer, 

Department of Defense. 

[FR Doc. E9–2562 Filed 2–5–09; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[Docket No. USCG–2008–1263] 

Drawbridge Operation Regulation; 

Bayou Lacarpe, Mile 7.5, at Houma, 

Lafourche Parish, LA 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of temporary deviation 

from regulations. 

SUMMARY: The Commander, Eighth 

Coast Guard District, has issued a 

temporary deviation from the regulation 

governing the operation of the SR 661 

Vertical Lift Bridge across Bayou 

Lacarpe, mile 7.5, at Houma, Lafourche 

Parish, Louisiana. The deviation is 

necessary to replace all the wire ropes 

used to lift the movable span of the 

bridge. This deviation allows the bridge 

to remain closed during daytime hours 

and requires an advance notice for 

openings during the nighttime. 

DATES: This deviation is effective from 

9 a.m. on January 31, 2009 through 5 

p.m. on February 14, 2009. 

ADDRESSES: Documents indicated in this 

preamble as being available in the 

docket are part of docket USCG–2008– 

1263 and are available online at 

www.regulations.gov. They are also 

available for inspection or copying at 

two locations: the Docket Management 

Facility (M–30), U.S. Department of 

Transportation, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590, 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays, 

and the Eighth Coast Guard District, 

Bridge Administration Branch, Hale 

Boggs Federal Building, Room 1313, 500 

Poydras Street, New Orleans, Louisiana 

70130–3310 between 7 a.m. and 3 p.m., 

Monday through Friday, except Federal 

holidays. 

FOR FURTHER INFORMATION CONTACT: Bart 

Marcules, Bridge Administration 

Branch, telephone (504) 671–2128. 

SUPPLEMENTARY INFORMATION: Louisiana 

Department of Transportation and 

Development has requested a temporary 

deviation from the operating schedule of 

the State Route 661 Vertical Lift Bridge 

across Bayou Lacarpe, mile 7.5, at 

Houma, Lafourche Parish, Louisiana. 

The vertical clearance in the closed 

position is 3 feet, thus most vessels will 

not be able to pass underneath this 

bridge in the closed-to-navigation 

position. There may be times, during the 

closure period, when the draw will not 


dwashington3 on PROD1PC60 with RULES