Federal Register / Vol. 71, No. 250 / Friday, December 29, 2006 / Rules and Regulations 78335 

(3) * * * 

(i) Subtract 16.82 cents from the price 

computed pursuant to paragraph (n)(1) 

of this section and multiply the result 

by 1.572; and * * * 

(o) Other solids price. The other solids 

price per pound, rounded to the nearest 

one-hundredth cent, shall be the U.S. 

average NASS dry whey survey price 

reported by the Department for the 

month minus 19.56 cents, with the 

result multiplied by 1.03. * * * 

(q) * * * 

(3) An advanced butterfat price per 

pound, rounded to the nearest onehundredth cent, shall be calculated by 

computing a weighted average of the 2 

most recent U.S. average NASS AA 

Butter survey prices announced before 

the 24th day of the month, subtracting 

12.02 cents from this average, and 

multiplying the result by 1.20. 

Dated: December 26, 2006. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 06–9943 Filed 12–27–06; 9:53 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Part 25 

[Docket No. 06–18] 

RIN 1557–AD00 

FEDERAL RESERVE SYSTEM 

12 CFR Part 228 

[Regulation BB; Docket No. R–1273] 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 345 

RIN 3064–AD11 

Community Reinvestment Act 

Regulations 

AGENCIES: Office of the Comptroller of 

the Currency, Treasury (OCC); Board of 

Governors of the Federal Reserve 

System (Board); Federal Deposit 

Insurance Corporation (FDIC). 

ACTION: Joint final rule; technical 

correction. 

SUMMARY: The OCC, the Board, and the 

FDIC (collectively, the ‘‘agencies’’) are 

publishing this joint final rule to 

reinsert a provision that was 

inadvertently deleted when the agencies 

revised their Community Reinvestment 

Act (CRA) regulations in August 2005. 

This change is technical only and does 

not make any substantive revisions. The 

agencies are also amending their CRA 

regulations to increase the asset-size 

threshold to be used to define ‘‘small 

bank’’ and ‘‘intermediate small bank.’’

The regulation is amended to state the 

increase in the threshold amount based 

on the annual percentage change in the 

Consumer Price Index. 

DATES: Effective January 1, 2007. 

FOR FURTHER INFORMATION CONTACT: 

OCC: Margaret Hesse, Special 

Counsel, Community and Consumer 

Law Division, (202) 874–5750; or Karen 

Tucker, National Bank Examiner, 

Compliance Division, (202) 874–4428, 

Office of the Comptroller of the 

Currency, 250 E Street, SW., 

Washington, DC 20219. 

Board: Anjanette M. Kichline, Senior 

Supervisory Consumer Financial 

Services Analyst, (202) 785–6054; or 

Elizabeth A. Eurgubian, Attorney, (202) 

452–3667, Division of Consumer and 

Community Affairs, Board of Governors 

of the Federal Reserve System, 20th 

Street and Constitution Avenue, NW., 

Washington, DC 20551. 

FDIC: Faye Murphy, Fair Lending 

Specialist, (202) 898–6613, CRA and 

Fair Lending Policy Section, Division of 

Supervision and Consumer Protection; 

or Susan van den Toorn, Counsel, Legal 

Division, (202) 898–8707, Federal 

Deposit Insurance Corporation, 550 17th 

Street, NW., Washington, DC 20429. 

SUPPLEMENTARY INFORMATION: 

Background 

The agencies jointly are amending 

their regulations at 12 CFR parts 25, 

228, and 345 implementing the CRA (12 

U.S.C. 2901 et seq.) to make a technical 

correction related to regulatory changes 

that became effective on September 1, 

2005 (70 FR 44256) and to publish an 

increase in the asset-size threshold for 

small and intermediate small banks as 

required by the regulations. The 

agencies will publish current and 

historical asset-size thresholds on the 

Web site of the Federal Financial 

Institutions Examination Council at 

http://www.ffiec.gov/cra/. 

Description of the Joint Final Rule 

The technical correction published 

today adds as paragraph (d) to §§ 25.26, 

228.26, and 345.26 a provision stating, 

‘‘The [agency] rates the performance of 

a bank evaluated under this section as 

provided in appendix A of this part.’’

No change in the evaluation or rating of 

small banks will result from reinserting 

the provision as new paragraph (d). The 

agencies find it important to make this 

technical correction in order to provide 

clarification and consistency with other 

similar provisions in parts 25, 228, and 

345. 

The agencies’ CRA regulations, as 

revised on September 1, 2005, provide 

that banks that, as of December 31 of 

either of the prior two calendar years, 

had assets of less than $1 billion are 

‘‘small banks.’’ Small banks with assets 

of at least $250 million as of 

December 31 of both of the prior two 

calendar years and less than $1 billion 

as of December 31 of either of the prior 

two calendar years are ‘‘intermediate 

small banks.’’ 12 CFR 25.12(u)(1), 

228.12(u)(1), and 345.12(u)(1). The 

regulations further provide that the 

agencies will publish annual 

adjustments to these dollar figures based 

on the year-to-year change in the 

average of the Consumer Price Index for 

Urban Wage Earners and Clerical 

Workers (CPIW), not seasonally 

adjusted, for each twelve-month period 

ending in November, with rounding to 

the nearest million. 12 CFR 25.12(u)(2), 

228.12(u)(2), and 345.12(u)(2). 

During the period ending 

November 2006, the CPIW increased by 

3.32 percent. As a result, the agencies 

are revising §§ 25.12(u)(1), 228.12(u)(1), 

and 345.12(u)(1) to make this annual 

adjustment. Beginning January 1, 2007, 

banks that, as of December 31 of either 

of the prior two calendar years, had 

assets of less than $1.033 billion are 

‘‘small banks.’’ Small banks with assets 

of at least $258 million as of 

December 31 of both of the prior two 

calendar years and less than $1.033 

billion as of December 31 of either of the 

prior two calendar years are 

‘‘intermediate small banks.’’

Administrative Procedure Act and 

Effective Date 

Under 5 U.S.C. 553(b)(B) of the 

Administrative Procedure Act (APA), an 

agency may, for good cause, find (and 

incorporate the finding and a brief 

statement of reasons therefor in the 

rules issued) that notice and public 

procedure thereon are impracticable, 

unnecessary, or contrary to the public 

interest. 

With regard to the revision adding 

back the paragraph referring to 

appendix A: Appendix A to the 

agencies’ regulations describes the CRA 

ratings system for each performance test 

under the regulations and provides 

specific information on what 

institutions must demonstrate in order 

to achieve a particular rating. Prior to 

the regulatory changes adopted in 2005, 

each provision in the agencies’

regulations describing a performance 

test included a paragraph stating that 


rmajette on PROD1PC72 with RULES
78336 Federal Register / Vol. 71, No. 250 / Friday, December 29, 2006 / Rules and Regulations 

the performance of a bank under that 

particular test is rated as provided in 

appendix A. In 2005, the agencies 

revised §§ 25.26, 228.26, and 345.26 and 

appendix A to include a new 

performance test for banks that meet the 

definition of ‘‘intermediate small bank.’’

In adopting the revision, the paragraph 

in §§ 25.26, 228.26, and 345.26 referring 

to appendix A inadvertently was 

deleted. This revision adds that 

paragraph back into the regulations. For 

these reasons, the agencies, for good 

cause, find that the notice and comment 

procedures prescribed by the APA are 

unnecessary because the joint final rule 

is making a technical correction without 

substantive change to the provisions of 

parts 25, 228, and 345. 

With regard to the adjusted asset-size 

thresholds: The amendments to the 

regulations to adjust the asset-size 

thresholds for small and intermediate 

small banks are technical. Sections 

25.12(u)(1), 228.12(u)(1), and 

345.12(u)(1) are amended by adjusting 

the asset threshold as provided for in 

§§ 25.12(u)(2), 228.12(u)(2), and 

345.12(u)(2). This amendment applies 

the formula established by the CRA 

regulations for determining adjustments 

to the small and intermediate small 

bank asset thresholds. 

For these reasons, the agencies have 

determined that publishing a notice of 

proposed rulemaking and providing 

opportunity for public comment are 

unnecessary. 

Under 5 U.S.C. 553(d)(3) of the APA, 

the required publication or service of a 

substantive rule shall be made not less 

than 30 days before its effective date, 

except, among other things, as provided 

by the agency for good cause found and 

published with the rule. The agencies 

find that there is good cause for 

shortened notice because the revisions 

made by this joint final rule are minor, 

nonsubstantive, and technical. This 

joint final rule takes effect January 1, 

2007. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking where a 

general notice of proposed rulemaking 

is not required. 5 U.S.C. 603 and 604. 

As noted previously, the agencies have 

determined that it is unnecessary to 

publish a notice of proposed rulemaking 

for this joint final rule. Accordingly, the 

RFA’s requirements relating to an initial 

and final regulatory flexibility analysis 

do not apply. 

Paperwork Reduction Act of 1995 

There are no collection of information 

requirements in this joint final rule. 

Executive Order 12866 

The OCC has determined that this 

joint final rule is not a significant 

regulatory action as defined in 

Executive Order 12866. 

Unfunded Mandates Reform Act of 

1995 

Section 202 of the Unfunded 

Mandates Reform Act of 1995, 2 U.S.C. 

1532 (Unfunded Mandates Act), 

requires that an agency must prepare a 

budgetary impact statement before 

promulgating any rule likely to result in 

a Federal mandate that may result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector of $100 million or more 

in any one year. If a budgetary impact 

statement is required, section 205 of the 

Unfunded Mandates Act also requires 

an agency to identify and consider a 

reasonable number of regulatory 

alternatives before promulgating a rule. 

The OCC has determined that this joint 

final rule will not result in expenditures 

by State, local, and tribal governments, 

or by the private sector, of $100 million 

or more in any one year. Accordingly, 

this joint final rule is not subject to 

section 202 of the Unfunded Mandates 

Act. 

Executive Order 13132 

The OCC has determined that this 

joint final rule does not have any 

Federalism implications as required by 

Executive Order 13132. 

List of Subjects 

12 CFR Part 25 

Community development, Credit, 

Investments, National banks, Reporting 

and recordkeeping requirements. 

12 CFR Part 228 

Banks, banking, Community 

development, Credit, Investments, 

Reporting and recordkeeping 

requirements. 

12 CFR Part 345 

Banks, banking, Community 

development, Credit, Investments, 

Reporting and recordkeeping 

requirements. 

Department of the Treasury 

Office of the Comptroller of the 

Currency 

12 CFR Chapter I 

■ For the reasons discussed in the joint 

preamble, 12 CFR part 25 is amended as 

follows: 

PART 25—COMMUNITY 

REINVESTMENT ACT AND 

INTERSTATE DEPOSIT PRODUCTION 

REGULATIONS 

■ 1. The authority citation for part 25 

continues to read as follows: 

Authority: 12 U.S.C. 21, 22, 26, 27, 30, 36, 

93a, 161, 215, 215a, 481, 1814, 1816, 1828(c), 

1835a, 2901 through 2907, and 3101 through 

3111. 

■ 2. Revise § 25.12(u)(1) to read as 

follows: 

§ 25.12 Definitions. 

* * * * * 

(u) Small bank—(1) Definition. Small 

bank means a bank that, as of December 

31 of either of the prior two calendar 

years, had assets of less than $1.033 

billion. Intermediate small bank means 

a small bank with assets of at least $258 

million as of December 31 of both of the 

prior two calendar years and less than 

$1.033 billion as of December 31 of 

either of the prior two calendar years. 

* * * * * 

■ 3. Add § 25.26(d) to read as follows: 

§ 25.26 Small bank performance 

standards. 

* * * * * 

(d) Small bank performance rating. 

The OCC rates the performance of a 

bank evaluated under this section as 

provided in appendix A of this part. 

Federal Reserve System 

12 CFR Chapter II 

■ For the reasons set forth in the joint 

preamble, the Board of Governors of the 

Federal Reserve System amends part 

228 of chapter II of title 12 of the Code 

of Federal Regulations as follows: 

PART 228—COMMUNITY 

REINVESTMENT (REGULATION BB) 

■ 1. The authority citation for part 228 

continues to read as follows: 

Authority: 12 U.S.C. 321, 325, 1828(c), 

1842, 1843, 1844, and 2901 et seq. 

■ 2. Revise § 228.12(u)(1) to read as 

follows: 

§ 228.12 Definitions. 

* * * * * 

(u) Small bank—(1) Definition. Small 

bank means a bank that, as of December 

31 of either of the prior two calendar 

years, had assets of less than $1.033 

billion. Intermediate small bank means 

a small bank with assets of at least $258 

million as of December 31 of both of the 

prior two calendar years and less than 

$1.033 billion as of December 31 of 

either of the prior two calendar years. 

* * * * * 


rmajette on PROD1PC72 with RULES
Federal Register / Vol. 71, No. 250 / Friday, December 29, 2006 / Rules and Regulations 78337 

■ 3. Add § 228.26(d) to read as follows: 

§ 228.26 Small bank performance 

standards. 

* * * * * 

(d) Small bank performance rating. 

The Board rates the performance of a 

bank evaluated under this section as 

provided in appendix A of this part. 

Federal Deposit Insurance Corporation 

12 CFR Chapter III 

Authority and Issuance 

■ For the reasons set forth in the joint 

preamble, the Board of Directors of the 

Federal Deposit Insurance Corporation 

amends part 345 of chapter III of title 12 

of the Code of Federal Regulations to 

read as follows: 

PART 345—COMMUNITY 

REINVESTMENT 

■ 1. The authority citation for part 345 

continues to read as follows: 

Authority: 12 U.S.C. 1814–1817, 1819–

1820, 1828, 1831u and 2901–2907, 3103–

3104, and 3108(a). 

■ 2. Revise § 345.12(u)(1) to read as 

follows: 

§ 345.12 Definitions. 

* * * * * 

(u) Small bank—(1) Definition. Small 

bank means a bank that, as of December 

31 of either of the prior two calendar 

years, had assets of less than $1.033 

billion. Intermediate small bank means 

a small bank with assets of at least $258 

million as of December 31 of both of the 

prior two calendar years and less than 

$1.033 billion as of December 31 of 

either of the prior two calendar years. 

* * * * * 

■ 3. Add § 345.26(d) to read as follows: 

§ 345.26 Small bank performance 

standards. 

* * * * * 

(d) Small bank performance rating. 

The FDIC rates the performance of a 

bank evaluated under this section as 

provided in appendix A of this part. 

Dated: December 15, 2006. 

Julie L. Williams, 

First Senior Deputy Comptroller and Chief 

Counsel. 

By order of the Board of Governors of the 

Federal Reserve System, December 19, 2006. 

Jennifer J. Johnson, 

Secretary of the Board. 

Dated at Washington, DC, this 18th day of 

December, 2006. 

By order of the Board of Directors. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. 06–9944 Filed 12–28–06; 8:45 am] 

BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 349 

RIN 3064–AD14 

Repeal of Reports and Public 

Disclosure of Indebtedness of 

Executive Officers and Principal 

Shareholders to a State Nonmember 

Bank and Its Correspondent Banks 

AGENCY: Federal Deposit Insurance 

Corporation. 

ACTION: Final rule. 

SUMMARY: The Federal Deposit 

Insurance Corporation (FDIC) is 

repealing its regulations governing 

reporting on lending by a State 

nonmember bank and its correspondent 

banks to executive officers and principal 

shareholders. The FDIC is taking this 

action in accordance with the Financial 

Services Regulatory Relief Act of 2006, 

section 601, which repealed the 

provision under which the FDIC 

promulgated these regulations. 

DATES: This rule becomes effective on 

December 22, 2006. 

FOR FURTHER INFORMATION CONTACT: 

Karen Jones Currie Examination 

Specialist, FDIC, 550 17th Street, NW., 

Washington, DC 20429; telephone: (202) 

898–3981; or electronic mail: 

kcurrie@fdic.gov; or Michelle Borzillo, 

Counsel, FDIC, 550 17th Street, NW., 

Washington, DC 20230; telephone: (202) 

898–7400; facsimile: (202) 898–8815; or 

electronic mail: mborzillo@fdic.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On December 28, 1983, the FDIC 

issued a final rule entitled ‘‘Reports and 

Public Disclosure of Indebtedness of 

Executive Officers and Principal 

Shareholders to a State Nonmember 

Bank and Its Correspondent Banks.’’

This rule implemented section 7(k) of 

the Federal Deposit Insurance Act (‘‘FDI 

Act’’) and section 106(b)(2)(G) of the 

Bank Holding Company Act 

Amendments of 1970 (‘‘BHCA 

Amendments’’) contained in sections 

428 and 429 of the Garn-St. Germain 

Depository Institutions Act of 1982 

(‘‘Garn-St. Germain Act’’). It restated the 

existing statutory requirement which 

required insiders to report to the board 

of directors of their bank any 

indebtedness to the correspondent 

banks of that bank. The statute also 

provided that the bank or the agency 

shall make the information available, 

upon request, to the public. The 

appropriate Federal banking agencies 

were authorized to issue rules and 

regulations to require the reporting and 

public disclosure of information 

concerning insider indebtedness. 

II. Repeal of the Reports and Public 

Disclosure of Indebtedness of Executive 

Officers and Principal Shareholders 

On October 13, 2006, the President 

signed into law Public Law No. 109–

351, the Financial Services Regulatory 

Relief Act of 2006 (the Act). Section 601 

of the Act struck the following statutory 

provisions: 

• Requirement that a bank must 

include a separate report with its 

quarterly Reports of Condition and 

Income (‘‘Call Report’’) on any 

extensions of credit the bank has made 

to its executive officers since its last Call 

Report (section 22(g)(9) of the Federal 

Reserve Act, codified at 12 U.S.C. 

375a(9)); 

• Requirement that an executive 

officer of a bank file a report with the 

bank’s board of directors whenever the 

executive officer obtains an extension of 

credit from another bank in an amount 

that exceeds the amount the executive 

officer could obtain from the bank 

(section 22(g)(6) of the Federal Reserve 

Act, codified at 12 U.S.C. 375a(6)); 

• Requirement that an executive 

officer or principal shareholder of a 

bank must file an annual report with the 

bank’s board of directors during any 

year in which the officer or shareholder 

has an outstanding extension of credit 

from a correspondent bank of the bank 

(section 106(b)(2)(G)(i) of the BHCA, 

codified at 12 U.S.C. 1972(2)(G)(i)); and 

• The authorization of the Federal 

banking agencies to issue regulations 

that require the reporting and public 

disclosure of information related to 

extensions of credit received by an 

executive officer or principal 

shareholder of a bank from a 

correspondent bank of the bank (section 

106(b)(2)(G)(ii) of the BHCA, codified at 

12 U.S.C. 1972(2)(G)(ii)). 

Neither the repeal of Section 106 

(b)(2)(G) of the BHCA Amendments nor 

part 349 changes the substantive 

restrictions on loans by depository 

institutions to their executive officers 

and principal shareholders or loans to 

executive officers and principal 

shareholders of depository institutions 

by their correspondent banks. 

Because the new law strikes the 

specific requirement underpinning the 

rule on Reports and Public Disclosure of 


rmajette on PROD1PC72 with RULES