Federal Register / Vol. 78, No. 157 / Wednesday, August 14, 2013 / Rules and Regulations 49365 

1 77 FR 6194 (February 7, 2012), 77 FR 40459 

(July 10, 2012), and 77 FR 50244 (August 20, 2012). 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1005 

[Docket No. CFPB–2012–0050] 

RIN 3170–AA33 

Electronic Fund Transfers 

(Regulation E); Correction 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Final rule; official 

interpretation; correction. 

SUMMARY: The Bureau of Consumer 

Financial Protection (Bureau) is making 

a clarificatory amendment and technical 

correction to a final rule and official 

interpretation (the 2013 Final Rule) that 

appeared in the Federal Register on 

Wednesday, May 22, 2013. 78 FR 30662. 

The 2013 Final Rule modifies the final 

rules issued by the Bureau in February, 

July, and August 2012 (collectively the 

2012 Final Rule) that implement section 

1073 of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act 

(Dodd-Frank Act) regarding remittance 

transfers. This rule makes a clarificatory 

amendment and a technical correction 

to the 2013 Final Rule, which amends 

Regulation E. 

DATES: The clarificatory amendment and 

technical correction to the 2013 Final 

Rule are effective on October 28, 2013. 

FOR FURTHER INFORMATION CONTACT: Eric 

Goldberg, Ebunoluwa Taiwo, or Lauren 

Weldon, Counsels; Division of Research, 

Markets & Regulations, Bureau of 

Consumer Financial Protection, 1700 G 

Street NW., Washington, DC 20552, at 

(202) 435–7700 or CFPB_

RemittanceRule@consumerfinance.gov. 

Please also visit the following Web site 

for additional information: http:// 

www.consumerfinance.gov/regulations/

final-remittance-rule-amendmentregulation-e/. 

SUPPLEMENTARY INFORMATION:

I. Overview 

On May 22, 2013, the Bureau 

published the 2013 Final Rule, which 

along with three other final rules 1

implements the Electronic Fund 

Transfer Act’s provisions regarding 

remittance transfers and the official 

interpretations to the regulation, which 

interpret the requirements of Regulation 

E. 

The 2013 Final Rule addresses, among 

other things, three specific issues. First, 

the 2013 Final Rule modifies the 2012 

Final Rule to make optional, in certain 

circumstances, the requirement to 

disclose fees imposed by a designated 

recipient’s institution. Second and 

relatedly, the 2013 Final Rule also 

makes optional the requirement to 

disclose taxes collected by a person 

other than the remittance transfer 

provider. In place of these two former 

requirements, the 2013 Final Rule 

requires, where applicable, disclaimers 

to be added to the rule’s disclosures 

indicating that the recipient may receive 

less than the disclosed total due to the 

fees and taxes for which disclosure is 

now optional. Finally, the 2013 Final 

Rule revises the error resolution 

provisions that apply when a remittance 

transfer is not delivered to a designated 

recipient because the sender provided 

incorrect or insufficient information, 

and, in particular, when a sender 

provides an incorrect account number 

or recipient institution identifier that 

results in the transferred funds being 

deposited into the wrong account. 

This rule makes a clarificatory 

amendment and technical correction to 

the 2013 Final Rule. First, this rule 

makes a clarificatory amendment to 

§ 1005.33(c)(2)(iii). That section sets 

forth the remedies for errors that occur 

because a sender provided incorrect or 

insufficient information to the 

remittance transfer provider. 

Specifically, the provision requires 

providers to refund or, at the 

consumer’s request, reapply to a new 

transfer ‘‘the amount of funds provided 

by the sender in connection with the 

remittance transfer that was not 

properly transmitted.’’ This provision 

also permits providers to ‘‘deduct from 

the amount refunded or applied towards 

a new transfer any fees actually imposed 

on or, to the extent not prohibited by 

law, taxes actually collected on the 

remittance transfer as part of the first 

unsuccessful remittance transfer 

attempt.’’ 

The Bureau believes that properly 

understood this provision requires a 

provider to refund or, at the consumer’s 

request, reapply to a new transfer, the 

total amount that the sender paid to the 

provider but to permit the provider to 

deduct from this amount fees actually 

imposed and, where not otherwise 

prohibited by law, taxes actually 

collected as part of the first 

unsuccessful remittance transfer 

attempt. The Bureau further explained 

this provision in comment 33(c)–12, 

which sets forth several examples 

regarding how to apply 

§ 1005.33(c)(2)(iii) in situations where 

an error occurred because the sender 

provided incorrect or insufficient 

information. The Bureau is concerned, 

however, that the rule might be 

misinterpreted as authorizing providers 

to deduct such fees and taxes from just 

the principal amount provided by the 

sender to the provider. 

To clarify the meaning of this 

provision, this rule revises the first 

sentence of § 1005.33(c)(2)(iii) so that it 

now states: ‘‘In the case of an error 

under paragraph (a)(1)(iv) of this section 

that occurred because the sender 

provided incorrect or insufficient 

information in connection with the 

remittance transfer, the remittance 

transfer provider shall provide the 

remedies required by paragraphs 

(c)(2)(ii)(A)(1) and (B) within three 

business days of providing the report 

required by paragraph (c)(1) or (d)(1) of 

this section except that the provider 

may agree to the sender’s request, upon 

receiving the results of the error 

investigation, that the funds be applied 

towards a new remittance transfer, 

rather than be refunded, if the provider 

has not yet processed a refund.’’ 

(Emphasis added.) 

Second, the 2013 Final Rule 

incorrectly numbered comment 33(c)–6, 

Form of refund, in the 2013 Final Rule 

as comment 33(c)–5. As a result, the 

Bureau inadvertently deleted from the 

2013 Final Rule what was, in the 2012 

Final Rule, comment 33(c)–5, Amount 

appropriate to resolve the error. In this 

rule, the Bureau is correcting this 

numbering error and, as a result, 

restoring in the rule what was 

previously comment 33(c)–5. 

II. Basis for the Clarificatory 

Amendment and Technical Correction 

The Bureau is publishing the 

clarificatory amendment and technical 

correction as a final rule. The 

clarificatory amendment and technical 

correction to the 2013 Final Rule will be 

effective on October 28, 2013, which is 

the same effective date as the 2013 Final 

Rule. Notice and comment are not 

necessary for the clarificatory 

amendment to § 1005.33(c)(2)(iii), 

which merely makes explicit in the 

regulation the Bureau’s continuing 

interpretation that in the event of an 

error under § 1005.33(a)(1)(iv) that 

occurred because the sender provided 

incorrect or insufficient information, the 

provider may deduct from the total 

amount that the sender paid to the 

provider the fees actually imposed and 

taxes actually collected as part of the 

first unsuccessful remittance transfer 

attempt. See, e.g., comment 33(c)–12. 

Moreover, the Bureau finds that there 

is good cause to publish this final rule 

without notice and comment. See 5 

U.S.C. 553(b)(B). Notice and comment 

are unnecessary because the rule makes 

a merely technical change to clarify that 

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49366 Federal Register / Vol. 78, No. 157 / Wednesday, August 14, 2013 / Rules and Regulations 

the 2013 Final Rule operates in a way 

that should already have been apparent 

to many market participants and 

because the rule corrects an inadvertent, 

technical error. The Bureau believes that 

there is minimal, if any, basis for 

substantive disagreement with the 

clarificatory amendment or the 

technical correction. 

III. Corrections to FR Doc. 2013–10604 

In FR Doc. 2013–10604 appearing on 

page 30661 in the Federal Register on 

Wednesday May 22, 2013, the following 

corrections are made: 

§ 1005.33 [Corrected] 

■ 1. On page 30705, in the first column, 

§ 1005.33 is corrected by revising 

paragraph (c)(2)(iii) to read as follows: 

(iii) In the case of an error under 

paragraph (a)(1)(iv) of this section that 

occurred because the sender provided 

incorrect or insufficient information in 

connection with the remittance transfer, 

the remittance transfer provider shall 

provide the remedies required by 

paragraphs (c)(2)(ii)(A)(1) and (B) within 

three business days of providing the 

report required by paragraph (c)(1) or 

(d)(1) of this section except that the 

provider may agree to the sender’s 

request, upon receiving the results of 

the error investigation, that the funds be 

applied towards a new remittance 

transfer, rather than be refunded, if the 

provider has not yet processed a refund. 

The provider may deduct from the 

amount refunded or applied towards a 

new transfer any fees actually imposed 

on or, to the extent not prohibited by 

law, taxes actually collected on the 

remittance transfer as part of the first 

unsuccessful remittance transfer 

attempt. 

* * * * * 

Supplement I to Part 1005 [Corrected] 

■ 2. On page 30715, in the first column, 

amendatory instruction 7.D.ii. is 

corrected to read ‘‘Under comment 

33(c), paragraphs 2, 3, 4, 5 and 6 are 

revised, and paragraphs 11 and 12 are 

added.’’ 

■ 3. On page 30719, in the second 

column, comment 33(c)–5 is 

redesignated as comment 33(c)–6 and 

republished, and comment 33(c)–(5) is 

added. These corrections read as 

follows: 

5. Amount appropriate to resolve the 

error. For purposes of the remedies set 

forth in § 1005.33(c)(2)(i)(A), (c)(2)(i)(B), 

(c)(2)(ii)(A)(1), and (c)(2)(i)(A)(2) the 

amount appropriate to resolve the error 

is the specific amount of transferred 

funds that should have been received if 

the remittance transfer had been 

effected without error. The amount 

appropriate to resolve the error does not 

include consequential damages. 

6. Form of refund. For a refund 

provided under § 1005.33(c)(2)(i)(A), 

(c)(2)(ii)(A)(1), (c)(2)(ii)(B), or (c)(2)(iii), 

a remittance transfer provider may 

generally, at its discretion, issue a 

refund either in cash or in the same 

form of payment that was initially 

provided by the sender for the 

remittance transfer. For example, if the 

sender originally provided a credit card 

as payment for the transfer, the 

remittance transfer provider may issue a 

credit to the sender’s credit card 

account in the appropriate amount. 

However, if a sender initially provided 

cash for the remittance transfer, a 

provider may issue a refund by check. 

For example, if the sender originally 

provided cash as payment for the 

transfer, the provider may mail a check 

to the sender in the amount of the 

payment. 

Dated: August 7, 2013. 

Richard Cordray, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2013–19503 Filed 8–13–13; 8:45 am] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9623] 

RIN 1545–BI99 

Application of Section 108(i) to 

Partnerships and S Corporations; 

Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correcting amendments. 

SUMMARY: This document contains 

corrections to final regulations and 

removal of temporary regulations (TD 

9623) that were published in the 

Federal Register on Wednesday, July 3, 

2013 (78 FR 39973). The final 

regulations are relating to the 

application of section 108(i) of the 

Internal Revenue Code to partnerships 

and S corporations and provides rules 

regarding the deferral of discharge of 

indebtedness income and original issue 

discount deductions by a partnership or 

an S corporation with respect to 

reacquisitions of applicable debt 

instruments after December 31, 2008, 

and before January 1, 2011. 

DATES: This correction is effective on 

August 14, 2013 and applicable on or 

after July 2, 2013. 

FOR FURTHER INFORMATION CONTACT: 

Joseph R. Worst, at (202) 622–3070 (not 

a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations and removal of 

temporary regulations (TD 9623) that are 

the subject of this correction are under 

section 108(i) of the Internal Revenue 

Code. 

Need for Correction 

As published, the final regulations 

and removal of temporary regulations 

(TD 9623) contains errors that may 

prove to be misleading and are in need 

of clarification. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Correction of Publication 

Accordingly, 26 CFR Part 1 is 

corrected by making the following 

correcting amendments: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

■ Par. 2. Section 1.108(i)–2 is amended 

by revising paragraphs (b)(6)(i)(A)(4), 

(c)(3)(i)(A)(5), and (d)(2)(iii) Example 2. 

(ii) to read as follows: 

§ 1.108(i)–2 Application of section 108(i) to 

partnerships and S Corporations. 

* * * * * 

(b) * * * 

(6) * * * 

(i) * * * 

(A) * * * 

(4) In the taxable year that includes 

the day before the day on which the 

electing partnership files a petition in a 

title 11 or similar case. 

* * * * * 

(c) * * * 

(3) * * * 

(i) * * * 

(A) * * * 

(5) In the taxable year that includes 

the day before the day on which the 

electing S corporation files a petition in 

a title 11 or similar case. 

* * * * * 

(d) * * * 

(2) * * * 

(iii) * * * 

Example 2. * * * 

(ii) Under paragraph (d)(2) of this section, 

ABC partnership’s deferred OID deduction 

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