64146 Federal Register / Vol. 62, No. 233 / Thursday, December 4, 1997 / Rules and Regulations

process the filing as an application

under § 516.3(a)(3) of this chapter. If the

OTS suspends the applicable processing

time frames, the savings association may

not open a branch until the OTS

provides a notification of its approval.

* * * * *

11. In § 545.95, paragraph (a) and

paragraph (b)(1)(ii) are revised to read as

follows:

§ 545.95 Change of office location and

redesignation of offices.

(a) Eligibility. A Federal savings

association may change the permanent

location of its home office or any

approved branch office, or redesignate a

home or branch office subject to the

appropriate expedited or standard

treatment procedures for establishing a

branch office set forth in § 545.92 of this

part.

(b) * * *

(1) * * *

(ii) The applicant shall post notice of

the application for 25 days from the date

of first publication in a prominent

location in the office to be closed or

redesignated.

* * * * *

PART 552—INCORPORATION,

ORGANIZATION, AND CONVERSION

OF FEDERAL STOCK ASSOCIATIONS

12. The authority citation for part 552

continues to read as follows:

Authority: 12 U.S.C. 1462, 1462a, 1463,

1464, 1467a.

13. Section 552.2–1 is amended by

revising paragraph (a) to read as follows:

§ 552.2–1 Procedure for organization of

Federal stock association.

(a) Application for permission to

organize. Applications for permission to

organize a Federal stock association are

subject to this section and to § 543.3 of

this chapter. Recommendations by

employees of the OTS regarding

applications for permission to organize

are privileged, confidential, and subject

to § 510.5 (b) and (c) of this chapter. The

processing of an application under this

section shall be subject to the following

procedures:

(1) Publication. (i) The applicant shall

publish a public notice of the

application to organize in accordance

with the procedures specified in subpart

B of part 516 of this chapter.

(ii) Promptly after publication of the

public notice, the applicant shall

transmit copies of the public notice and

publisher’s affidavit of publication to

the OTS in the same manner as the

original filing.

(iii) Any person may inspect the

application and all related

communications at the Regional Office

during regular business hours, unless

such information is exempt from public

disclosure.

(2) Notification to interested parties.

The OTS shall give notice of the

application to the State official who

supervises savings associations in the

State in which the new association is to

be located.

(3) Submission of comments.

Commenters may submit comments on

the application in accordance with the

procedures specified in subpart C of

part 516 of this chapter.

(4) Meetings. The OTS may arrange

informal or formal meetings in

accordance with the procedures

specified in subpart D of part 516 of this

chapter.

* * * * *

14. Section 552.2–2 is amended by

revising paragraph (a) to read as follows:

§ 552.2–2 Procedures for organization of

interim Federal stock association.

(a) Applications for permission to

organize an interim Federal savings

association are not subject to subparts B,

C and D of part 516 of this chapter or

§ 552.2–1(b)(3) of this part.

* * * * *

PART 556—STATEMENTS OF POLICY

15. The authority citation for part 556

continues to read as follows:

Authority: 5 U.S.C. 552, 559; 12 U.S.C.

1464, 1701j–3; 15 U.S.C. 1693–1693r.

16. Section 556.5 is amended by

revising paragraph (c)(4) to read as

follows:

§ 556.5 Branching by Federal savings

associations.

* * * * *

(c) * * *

(4) Comment procedures. Comments

on applications for branches must be

submitted in writing and factually

documented. Comment procedures are

set forth in subpart C of part 516 of this

chapter, § 563e.29 (c) and (d) of this

chapter, the OTS Application

Processing Handbook, and other

supervisory guidance issued by the

OTS.

* * * * *

PART 563—OPERATIONS

17. The authority citation for part 563

continues to read as follows:

Authority: 12 U.S.C. 375b, 1462, 1462a,

1463, 1464, 1467a, 1468, 1817, 1828, 3806;

42 U.S.C. 4012a, 4104a, 4104b, 4106, 4128.

18. Section 563.22 is amended by

revising paragraphs (e)(1), (e)(4) and

(f)(3) to read as follows:

§ 563.22 Merger, consolidation, purchase

or sale of assets, or assumption of

liabilities.

* * * * *

(e)(1) Unless the OTS finds that it

must act immediately in order to

prevent the probable default of one of

the savings associations involved, the

applicant must publish a public notice

of the application in accordance with

the procedures specified in subpart B of

part 516 of this chapter. In addition to

initial publication, the applicant must

publish on a weekly basis during the

period allowed for furnishing reports

under paragraph (e)(2) of this section.

* * * * *

(4) Commenters may submit

comments on the application in

accordance with the procedures set

forth in subpart C of part 516 of this

chapter, except that comments may be

submitted at any time during the period

described in paragraph (e)(2) of this

section. The OTS may arrange informal

or formal meetings in accordance with

the procedures set forth in subpart D of

part 516 of this chapter.

* * * * *

(f) * * *

(3) The OTS suspends the applicable

processing time frames under § 516.190

of this chapter;

* * * * *

Dated: November 26, 1997.

By the Office of Thrift Supervision.

Ellen Seidman,

Director.

[FR Doc. 97–31612 Filed 12–3–97; 8:45 am]

BILLING CODE 6720–01–M

NATIONAL CREDIT UNION

ADMINISTRATION

12 CFR Part 703

Investment and Deposit Activities

AGENCY: National Credit Union

Administration (NCUA).

ACTION: Interim final rule with request

for comments.

SUMMARY: On June 12, 1997, the NCUA

Board issued comprehensive final

amendments to the NCUA Rules and

Regulations on investment and deposit

activities. Two new provisions will

result in a number of credit unions

having to significantly change the way

they do business with broker-dealers,

which was not NCUA’s intention. In

addition, there are a few minor errors in

the regulatory language. This document

revises the two broker-dealer provisions

to make them consistent with NCUA’s

intent and corrects the minor errors.
Federal Register / Vol. 62, No. 233 / Thursday, December 4, 1997 / Rules and Regulations 64147

DATES: The interim rule is effective

January 1, 1998. Comments must be

received on or before February 2, 1998.

ADDRESSES: Comments should be

directed to Becky Baker, Secretary of the

Board. Mail or hand-deliver comments

to: National Credit Union

Administration, 1775 Duke Street,

Alexandria, Virginia 22314–3428. Fax

comments to (703) 518–6319. E-mail

comments to boardmail@ncua.gov.

Please send comments by one method

only.

FOR FURTHER INFORMATION CONTACT:

David M. Marquis, Director, Office of

Examination and Insurance, (703) 518–

6360, or Daniel Gordon, Senior

Investment Officer, Office of Investment

Services, (703) 518–6620, or at the

above address.

SUPPLEMENTARY INFORMATION: The

comprehensive final rule amendments

to 12 CFR part 703 were published on

June 18, 1997 (62 FR 32989).

Broker-Dealers

Section 703.50(a) of the final rule

requires that any broker-dealer used by

a federal credit union be either a

federally regulated depository

institution or registered with the

Securities and Exchange Commission

(SEC). NCUA particularly was

concerned about credit unions doing

business with entities that sell only

certificates of deposit (CDs), as these

entities are not subject to

comprehensive regulatory oversight.

NCUA does not wish to force credit

unions to stop doing business with

legitimate CD brokers, however, and has

determined that a credit union has

sufficient control over the transaction

when it purchases a CD or share

certificate directly from the issuing

bank, credit union, or other depository

institution. Under the rule, as amended

by this document, a federal credit union

can use a CD broker to find an

institution offering high rates, and may

compensate the broker for that service,

but it must send the funds directly to

the institution and not through the

broker or other third party.

Safekeeping

Section 703.60(c) provides that a

federal credit union may not allow a

selling broker-dealer to safekeep its

securities. NCUA’s intent was to ensure

that the credit union was the beneficial

owner of securities it purchased. NCUA

did not intend to change the way most

federal credit unions do business.

NCUA believes that the regulations and

oversight of the SEC and depository

institution regulators provide adequate

protection for credit unions and is

amending the rule to require only that

safekeepers be entities regulated by such

agencies.

Corrections

Section 703.80(a) of the final rule

provides that before a federal credit

union purchases or sells a security,

except for new issues it purchases at

par, it must obtain a price quotation on

the security from at least two brokerdealers or from an industry-recognized

information provider. NCUA added the

requirement to ensure that federal credit

unions are aware of the market prices of

securities they buy and sell. The

exception recognizes that the selling

price of a new issue is, by definition, the

market price.

Although NCUA intended to exempt

all new issues of securities from the

pricing requirement, new issues of some

securities are sold at a discount from

their face value, not at par. NCUA is

correcting this oversight by adding that

a federal credit union need not obtain

two prices, or a price from an industryrecognized information provider, for a

new issue of a security purchased at

original issue discount.

NCUA also is correcting three other

minor errors with this document.

Interim Final Rule

The new amendments to Part 703 take

effect January 1, 1998. If the provisions

discussed above are not revised before

then, credit unions will have to

unnecessarily change the way they do

business. NCUA has determined that, in

this case, the Administrative Procedure

Act notice and comment procedures are

impracticable and contrary to the public

interest. 5 U.S.C. 553(b)(3)(B).

Accordingly, NCUA is issuing this

document as an interim final rule, with

an effective date of January 1, 1998.

NCUA is requesting comments,

however, to determine whether further

changes to the provisions are warranted.

Regulatory Procedures

Regulatory Flexibility Act

The Regulatory Flexibility Act

requires NCUA to prepare an analysis to

describe any significant economic

impact any final regulation may have on

a substantial number of small credit

unions, defined as those having less

than $1 million in assets. NCUA has

determined and certifies that the final

rule will not have a significant

economic impact on a substantial

number of small credit unions.

Paperwork Reduction Act

This interim final rule does not

change the paperwork requirements of

Part 703.

Executive Order 12612

Executive Order 12612 requires

NCUA to consider the effect of its

actions on state interests. This interim

final rule applies only to federal credit

unions, and as such, has no direct effect

on states, on the relationship between

the states, or on the distribution of

power and responsibilities among the

various levels of government.

List of Subjects in 12 CFR Part 703

Credit unions, Investments, Reporting

and recordkeeping requirements.

By the National Credit Union

Administration Board on November 24, 1997.

Becky Baker,

Secretary of the Board.

Accordingly, NCUA amends 12 CFR

part 703 as follows:

PART 703—INVESTMENT AND

DEPOSIT ACTIVITIES

1. The authority citation for part 703

continues to read as follows:

Authority: 12 U.S.C. 1757(7), 1757(8),

1757(15).

2. Amend § 703.50 as follows:

§ 703.50 [Amended]

a. In paragraph (a), by removing

‘‘You’’ at the beginning of the paragraph

and adding the phrase ‘‘Except as

provided in paragraph (c) of this

section, you’’ in its place; and

b. Add paragraph (c) to read as

follows:

§ 703.50 What rules govern my dealings

with entities I use to purchase and sell

investments (‘‘broker-dealers’’)?

* * * * *

(c) The requirements of paragraph (a)

of this section do not apply when you

purchase a certificate of deposit or share

certificate directly from a bank, credit

union, or other depository institution.

3. Amend § 703.60 by revising

paragraph (c) to read as follows:

§ 703.60 What rules govern my

safekeeping of investments?

* * * * *

(c) Any safekeeper you use must be

regulated and supervised by either the

Securities and Exchange Commission or

a federal or state depository institution

regulatory agency.

* * * * *

§ 703.80 [Amended]

4. Amend § 703.80 by adding the

phrase ‘‘or at original issue discount’’

after the word ‘‘par’’ and before the

comma in paragraph (a) introductory

text.
64148 Federal Register / Vol. 62, No. 233 / Thursday, December 4, 1997 / Rules and Regulations

§ 703.100 [Amended]

5. Amend § 703.100 by adding the

word ‘‘security’’ between the words

‘‘priority’’ and ‘‘interest’’ in paragraph

(k)(2).

§ 703.150 [Amended]

6. Amend § 703.150 by adding the

word ‘‘investment’’ in place of the word

‘‘security’’ each time it appears in the

definitions of ‘‘Adjusted trading’’ and

‘‘Pair-off transaction.’’

[FR Doc. 97–31504 Filed 12–3–97; 8:45 am]

BILLING CODE 7535–01–P

NATIONAL CREDIT UNION

ADMINISTRATION

12 CFR Part 704

Corporate Credit Unions

AGENCY: National Credit Union

Administration (NCUA).

ACTION: Final rule; delay of compliance.

SUMMARY: On March 7, 1997, the NCUA

Board issued final amendments to part

704 of the NCUA Rules and Regulations,

which governs corporate credit unions.

The effective date of the final

amendments is January 1, 1998. While

the effective date remains the same, this

document delays mandatory compliance

with the final amendments until May 1,

1998. The delay gives corporate credit

unions more time to meet the capital,

staff, and infrastructure requirements of

the new regulation.

DATES: Mandatory compliance with part

704, as published at 62 FR 12929

(March 19, 1997), is delayed until May

1, 1998.

ADDRESSES: National Credit Union

Administration, 1775 Duke Street,

Alexandria, Virginia 22314–3428.

FOR FURTHER INFORMATION CONTACT:

Robert F. Schafer, Director, Office of

Corporate Credit Unions, at the above

address or telephone (703) 518–6640; or

Edward Dupcak, Director, Office of

Investment Services, at the above

address or telephone (703) 518–6620.

By the National Credit Union

Administration Board on November 24, 1997.

Becky Baker,

Secretary of the Board.

[FR Doc. 97–31503 Filed 12–3–97; 8:45 am]

BILLING CODE 7535–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. 97–ACE–05]

Removal of Class D Airspace, Marshall

Army Airfield, Ft. Riley, KS

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Direct final rule; confirmation of

effective date.

SUMMARY: This action confirms the

effective date of a direct final rule which

removed the Class D airspace area at

Marshall Army Airfield, Ft. Riley,

Kansas. The control tower at Marshall

Army Airfield is not in operation and

will not be operational in the

foreseeable future.

EFFECTIVE DATE: The direct final rule

published at 62 FR 17052 became

effective 0901 UTC July 17, 1997.

FOR FURTHER INFORMATION CONTACT:

Kathy Randolph, Air Traffic Division,

Airspace Branch, ACE–520C, Federal

Aviation Administration, 601 East 12th

Street, Kansas City, Missouri 64106;

telephone (816) 426–3408.

SUPPLEMENTARY INFORMATION: The FAA

published this direct final rule with a

request for comments in the Federal

Register on April 9, 1997 (62 FR 17052).

The FAA uses the direct final

rulemaking procedure for a noncontroversial rule where the FAA

believes that there will be no adverse

public comment. This direct final rule

advised the public that no adverse

comments were anticipated, and that

unless a written adverse comment, or a

written notice of intent to submit such

an adverse comment, was received

within the comment period, the

regulation would become effective on

July 17, 1997. No adverse comments

were received, and thus this document

confirms that the direct final rule

became effective on that date.

Issued in Kansas City, MO, on October 23,

1997.

Christopher R. Blum,

Acting Manager, Air Traffic Division, Central

Region.

[FR Doc. 97–31706 Filed 12–3–97; 8:45 am]

BILLING CODE 4910–13–M

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. 97–ACE–22]

Amendment to Class E Airspace; St.

Louis, MO

AGENCY: Federal Aviation

Administration (FAA), DOT.

ACTION: Direct final rule; request for

comments.

SUMMARY: This action amends the Class

E airspace area at Lambert-St. Louis

International Airport, St. Louis, MO.

The FAA has developed an Instrument

Landing System (ILS) Runway (RWY) 6

Standard Instrument Approach

Procedure (SIAP) and a VHF

Omnidirectional Range/Distance

Measuring Equipment (VOR/DME) RWY

17 SIAP to serve the Lambert-St. Louis

International Airport. Additional

controlled airspace extending upward

from 700 feet Above Ground Level

(AGL) is needed to accommodate these

SIAPs. The Class E airspace for St. Louis

Regional, St. Charles County Smartt,

and Spirit of St. Louis Airports are

enlarged to conform to requirements of

FAA Order 7400.2D. The intended effect

of this rule is to provide Class E airspace

for aircraft executing ILS RWY 6 and

VOR/DME RWY 17 SIAPs, and to

conform with the requirements of FAA

Order 7400.2D.

DATES: Effective date: 0901 UTC April

23, 1998.

Comment date: Comments must be

received on or before January 15, 1998.

ADDRESSES: Send comments regarding

the rule in triplicate to: Manager,

Airspace Branch, Air Traffic Division,

ACE–520, Federal Aviation

Administration, Docket Number 97–

ACE–22, 601 East 12th St., Kansas City,

MO 64106.

The official docket may be examined

in the Office of the Regional Counsel for

the Central Region at the same address

between 9:00 a.m. and 3:00 p.m.,

Monday through Friday, except Federal

holidays.

An informal docket may also be

examined during normal business hours

in the Air Traffic Division at the same

address listed above.

FOR FURTHER INFORMATION CONTACT:

Kathy Randolph, Air Traffic Division,

Airspace Branch, ACE–520C, Federal

Aviation Administration, 601 East 12th

Street, Kansas City, Missouri 64106;

telephone (816) 426–3408.

SUPPLEMENTARY INFORMATION: The FAA

has developed ILS RWY 6 and VOR/