51006 Federal Register / Vol. 62, No. 189 / Tuesday, September 30, 1997 / Rules and Regulations

document if the employment is for less

than three business days.

* * * * *

(v) * * *

(A) The following documents, so long

as they appear to relate to the individual

presenting the document, are acceptable

to evidence both identity and

employment eligibility:

(1) United States passport (unexpired

or expired);

(2) Alien Registration Receipt Card or

Permanent Resident Card, Form I–551;

(3) An unexpired foreign passport that

contains a temporary I–551 stamp;

(4) An unexpired Employment

Authorization Document issued by the

Immigration And Naturalization Service

which contains a photograph, Form I–

766; Form I–688, Form I–688A, or Form

I–688B;

(5) In the case of a nonimmigrant

alien authorized to work for a specific

employer incident to status, an

unexpired foreign passport with an

Arrival-Departure Record, Form I–94,

bearing the same name as the passport

and containing an endorsement of the

alien’s nonimmigrant status, so long as

the period of endorsement has not yet

expired and the proposed employment

is not in conflict with any restrictions or

limitations identified on the Form I–94.

* * * * *

(vi) Special rules for receipts. Except

as provided in paragraph (b)(1)(iii) of

this section, unless the individual

indicates or the employer or recruiter or

referrer for a fee has actual or

constructive knowledge that the

individual is not authorized to work, an

employer or recruiter or referrer for a fee

must accept a receipt for the application

for a replacement document or a

document described in paragraphs

(b)(1)(vi)(B)((1) and (b)(1)(vi)(C)((1) of

this section in lieu of the required

document in order to comply with any

requirement to examine documentation

imposed by this section, in the

following circumstances:

(A) Application for a replacement

document. The individual:

(1) Is unable to provide the required

document within the time specified in

this section because the document was

lost, stolen, or damaged;

(2) Presents a receipt for the

application for the replacement

document within the time specified in

this section; and

(3) Presents the replacement

document within 90 days of the hire or,

in the case of reverification, the date

employment authorization expires; or

(B) Form I–94 indicating temporary

evidence of permanent resident status.

The individual indicates in section 1 of

the Form I–9 that he or she is a lawful

permanent resident and the individual:

(1) Presents the arrival portion of

Form I–94 containing an unexpired

‘‘Temporary I–551’’ stamp and

photograph of the individual, which is

designated for purposes of this section

as a receipt for Form I–551; and

(2) Presents the Form I–551 within

180 days of the hire or, in the case of

reverification, the date employment

authorization expires; or

(C) Form I–94 indicating refugee

status. The individual indicates in

section 1 of the Form I–9 that he or she

is an alien authorized to work and the

individual:

(1) Presents the departure portion of

Form I–94 containing an unexpired

refugee admission stamp, which is

designated for purposes of this section

as a receipt for either the Form I–766 or

a social security account number card

that contains no employment

restrictions; and

(2) Presents, within 90 days of the

hire or, in the case of reverification, the

date employment authorization expires,

either an unexpired Form I–766; or a

social security account number card that

contains no employment restrictions

together with a document described

under paragraph (b)(1)(v)(B) of this

section.

* * * * *

Dated: September 25, 1997.

Doris Meissner,

Commissioner, Immigration and

Naturalization Service.

[FR Doc. 97–25920 Filed 9–29–97; 8:45 am]

BILLING CODE 4410–10–M

FEDERAL RESERVE SYSTEM

12 CFR Part 213

[Regulation M; Docket No. R–0892]

Consumer Leading; Delay of

Compliance Date

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Final rule; delay of compliance

date.

SUMMARY: Following a review under the

Board’s Regulatory Planning and

Review Program, the Board published a

revised Regulation M, which

implements the Consumer Leasing Act

on October 7, 1996. The final rule

contains a significant number of

substantive revisions to the regulation.

It essentially establishes a new

disclosure scheme that should

substantially improve consumer

understanding of automobile

transactions. The new disclosure

scheme required the preparation of new

forms and the reprogramming of

computer software. Mandatory

compliance with the revised rule was to

begin on October 1, 1997. The Board is

delaying that compliance date until

January 1, 1998, to facilitate compliance

with the regulation and to ensure that

consumers receive accurate and

meaningful disclosures.

DATES: The mandatory compliance date

for the final rule published at 61 FR

52246 (Oct. 7, 1996) is delayed until

January 1, 1998.

FOR FURTHER INFORMATION CONTACT:

Kyung H. Cho-Miller or Obrea O.

Poindexter, Staff Attorneys, Division of

Consumer and Community Affairs,

Board of Governors of the Federal

Reserve System, Washington, DC 20551,

at (202) 452–2412 or 452–3667. For

users of Telecommunications Device for

the Deaf (TDD), please contact Dorothea

Thompson at (202) 452–3544.

SUPPLEMENTARY INFORMATION: The

Consumer Leasing Act (CLA), 15 U.S.C.

1667–1667e, was enacted into law in

1976 as an amendment to the Truth in

Lending Act (TILA), 15 U.S.C. 1601 et

seq. The Board was given rulewriting

authority, and its Regulation M (12 CFR

part 213) implements the CLA.

The CLA generally governs consumer

leases of personal property involving

$25,000 or less and a term of more than

four months. An automobile lease is the

most common type of consumer lease

covered by the CLA. Like the credit

provisions of the TILA, the CLA

requires lessors to provide uniform cost

and other disclosures in consumer lease

transactions and in lease advertising.

Prior to entering into a lease agreement,

lessors must give consumers fifteen to

twenty disclosures, including the

amount of initial charges to be paid, an

identification of leased property, a

payment schedule, the responsibilities

for maintaining the leased property, and

the liability for terminating a lease early.

Following a review under the Board’s

Regulatory Planning and Review

Program, the Board published a revised

Regulation M on October 7, 1996 (61 FR

52246), and a new staff commentary on

April 4, 1997 (62 FR 16053). The final

rule, which contains a significant

number of substantive revisions to the

regulation, essentially establishes a new

disclosure scheme that should

substantially improve consumer

understanding of automobile lease

transactions. The new disclosure

scheme required the preparation of new

forms and the reprogramming of

computer software.
Federal Register / Vol. 62, No. 189 / Tuesday, September 30, 1997 / Rules and Regulations 51007

The Board has been asked by

representatives of the automobile

leasing industry—including leasing

companies, automobile dealerships, and

vendor support services—to delay the

mandatory compliance date of the new

Regulation M rules beyond October 1,

1997. The request is based on the

current state of implementation of the

new leasing software at the 22,500 newcar dealerships that arrange for

automobile leases provided through

approximately 9,000 independent

lessors. Based on the information that

they have shared, less than half of the

dealerships have the necessary software

programs in place that would enable

them to produce computer-generated

disclosure statements by October 1,

1997. In some cases, they would have in

place only one of the five or six lessor

programs that they typically make

available to consumers. The alternative

is to complete the leasing forms

manually, with resultant delays and a

great potential for errors that would

subsequently have to be corrected.

The Board believes that consumers

will not be well served by proceeding

on the October 1 schedule. Accordingly,

to better ensure that consumers receive

accurate and meaningful lease

disclosures, the Board has delayed the

mandatory compliance date to January

1, 1998.

By order of the Board of Governors of the

Federal Reserve System, September 25, 1997.

William W. Wiles,

Secretary of the Board.

[FR Doc. 97–25921 Filed 9–29–97; 8:45 am]

BILLING CODE 6210–01–M

FARM CREDIT ADMINISTRATION

12 CFR Parts 614 and 619

RIN 3052–AB64

Loan Policies and Operations;

Definitions; Loan Underwriting

AGENCY: Farm Credit Administration.

ACTION: Final rule.

SUMMARY: The Farm Credit

Administration (FCA), through the FCA

Board (Board), issues a final rule

amending its regulations relating to loan

underwriting in response to comments

received from the Board’s initiative to

reduce regulatory burden and in an

effort to streamline the regulations and

set clear minimum regulatory standards

where appropriate. The Board’s action

eliminates unnecessary regulations,

requires each Farm Credit System

(System or FCS) institution to adopt

loan underwriting policies and

standards, and makes other changes to

the regulations governing prudent credit

administration.

EFFECTIVE DATE: These regulations shall

be effective upon the expiration of 30

days during which either or both

Houses of Congress are in session.

Notice of the effective date will be

published in the Federal Register.

FOR FURTHER INFORMATION CONTACT:

John J. Hays, Policy Analyst, Regulation

Development Division, Office of

Policy Development and Risk Control,

703) 883–4498, TDD (703) 883–4444;

or

Joy E. Strickland, Senior Attorney,

Regulatory Enforcement Division,

Office of General Counsel, (703) 883–

4020, TDD (703) 883–4444.

SUPPLEMENTARY INFORMATION: On April

15, 1996, the Board published proposed

amendments to the regulations relating

to loan underwriting, loan sale and

purchase transactions, and the lending

authority of production credit

associations (PCAs). The amendments

were proposed largely in furtherance of

comments received on the Board’s

request for public comment on the

appropriateness of requirements that the

FCA regulations impose on the System.

See 58 FR 34003 (June 23, 1993). The

FCA has addressed many of those

comments in previous rulemakings. The

proposed amendments addressed the

remaining regulatory burden issues that

relate to loan underwriting and the

independent credit judgment rule for

loan sale and purchase transactions

through agents. In addition to

responding to the regulatory burden

comments, the FCA also proposed other

amendments to refocus regulatory

requirements for loan underwriting,

make the regulations more

understandable and useful to the reader,

set minimum regulatory standards, and

make conforming amendments. The FCA received a total of 20

comments on the proposed

amendments. Seventeen (17) Farm

Credit institutions and the Farm Credit

Council (FCC) submitted comments.

The FCA also received comments from

the Appraisal Subcommittee of the

Federal Financial Institutions

Examination Council, and the American

Society of Farm Managers and Rural

Appraisers, Inc. (collectively, appraisal

groups). In general, all of the System

commenters expressed support for the

proposed regulation and its goal of

reducing regulatory burden. Most of the

System commenters also supported

FCA’s proposals to streamline the

regulations governing the bank/

association relationship and place more

decision-making authority and

accountability with direct lender

associations. One association

commented favorably on the entire

proposal and suggested no changes.

Other System commenters stated that

although the proposal is a large step

toward reducing regulatory burden, it

did not reduce enough burden in certain

areas. Also, some banks and

associations requested clarification of

the proposed new responsibilities of

associations and the remaining areas of

bank direction and supervision of

associations. The appraisal groups

commented that although they

understood the FCA’s reasons for the

proposed changes to §§ 614.4245 and

614.4250, the changes were inconsistent

with the Uniform Standards of

Professional Appraisal Practice

(USPAP). The appraisal groups

suggested alternatives for the FCA to

achieve its objectives and ensure that

appraisals remain in compliance with

USPAP.

Specific comments and changes to the

proposed amendments will be

addressed in the section-by-section

analysis of the comments that follows.

Except for changes noted in the sectionby-section analysis, the FCA adopts the

proposed amendments as final. Specific

comments relating to proposed

§ 614.4200(b), which contained

requirements for obtaining borrower

financial statements, will be addressed

in the discussion of Subparts C and D—

Bank/Association Lending Relationship

and General Loan Policies for Banks and

Associations. In order to provide readers

with a guideline for the amended

regulations, the following is a list of

changes this final rule will make to

parts 614 and 619:

Subpart A—Lending Authorities

§§ 614.4000 through 614.4050—Revised.

Subpart C—Bank/Association Lending

Relationship

§§ 614.4100, 614.4110, and 614.4130—No

changes made.

§ 614.4120—Revised.

§§ 614.4135 through 614.4145—Deleted.

Subpart D—General Loan Policies for Banks

and Associations

§ 614.4150—Revised.

§ 614.4160—Deleted.

§ 614.4165—Revised.

Subpart E—Loan Terms and Conditions

§ 614.4200—Revised.

§§ 614.4210 through 614.4230—Deleted.

§ 614.4231—Revised.

§§ 614.4232 and 614.4233—No changes

made.

Subpart F—Collateral Evaluation

Requirements

§ 614.4245—Revised.