64996 Federal Register / Vol. 62, No. 236 / Tuesday, December 9, 1997 / Rules and Regulations

FEDERAL RESERVE SYSTEM

12 CFR Part 265

[Docket No. R–0991]

Rules Regarding Delegation of

Authority

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Final rule.

SUMMARY: The Board of Governors of the

Federal Reserve System (Board) is

delegating to the Director of the Division

of Banking Supervision and Regulation

the Board’s authority to determine in

individual cases that the services of an

appraiser are not necessary in order to

protect Federal financial and public

policy interests in real estate-related

financial transactions or to protect the

safety and soundness of the institution.

This delegation of authority is intended

to aid in the efficient processing of

requests for individual exemptions from

the Board’s appraisal regulation.

EFFECTIVE DATE: December 9, 1997.

FOR FURTHER INFORMATION CONTACT:

Deneen L. Donnley-Evans, Staff

Attorney (202/736–5567), Legal

Division; or Virginia M. Gibbs, Senior

Supervisory Financial Analyst, (202/

452–2521), Division of Banking

Supervision and Regulation; Board of

Governors of the Federal Reserve

System, 20th Street and Constitution

Avenue, N.W., Washington, DC 20551.

SUPPLEMENTARY INFORMATION: In 1990, in

accordance with the mandates of Title

XI of the Financial Institutions Reform,

Recovery, and Enforcement Act of 1989

(FIRREA), 12 USC 3331 et seq., the

federal banking agencies adopted

appraisal regulations for federally

related transactions within their

jurisdiction, and exempted certain real

estate-related transactions from the

appraisal requirements of Title XI. In

June 1994, several existing exemptions

to the appraisal regulation were

modified and new exemptions were

added, including an exemption for

individual transactions for which the

Board determines that the services of an

appraiser are not necessary in order to

protect Federal financial and public

policy interests in real estate-related

financial transactions or to protect the

safety and soundness of the institution.

See 12 CFR 265.7. The Board is

delegating the authority to determine

that an appraisal is not necessary to

protect Federal financial and public

policy interest or the safety and

soundness of a financial institution to

the Director of the Division of Banking

Supervision and Regulation or the

Director’s delegee.

Administrative Procedure Act

The Administrative Procedure Act (5

USC 553(b)(A)) exempts ‘‘rules of

agency organization, procedure, or

practice’’ from the notice of proposed

rulemaking and public comment

requirements. As the Board’s delegation

rules fall under this exemption, the

Board is adopting these amendments

without notice-and-comment

procedures.

Regulatory Flexibility Act Analysis

Pursuant to the Regulatory Flexibility

Act (5 USC 601 et seq.), the Board

hereby certifies that this rule will not

have a significant economic impact on

a substantial number of small entities.

Paperwork Reduction Act of 1995

In accordance with section 3506 of

the Paperwork Reduction Act of 1995

(44 USC Ch. 35; 5 CFR part 1320

Appendix A.1), the Board reviewed the

rule under the authority delegated to the

Board by the Office of Management and

Budget. No collection of information

pursuant to section 3504(h) of the

Paperwork Reduction Act (44 USC 3501

et seq.) is contained in this notice.

List of Subjects in 12 CFR Part 265

Authority delegations (Government

agencies) Banks, banking, Federal

Reserve System.

For the reasons set forth in the

preamble, the Board amends 12 CFR

part 265 as set forth below:

PART 265—RULES REGARDING

DELEGATION OF AUTHORITY

1. The authority citation for part 265

continues to read as follows:

Authority: 12 U.S.C. 248 (i) and (k).

2. Section 265.7 is amended by

adding paragraph (c)(6) to read as

follows:

§ 265.7 Functions delegated to Director of

Division of Banking Supervision and

Regulation.

* * * * *

(c) * * *

(6) Appraisal not required. To

determine pursuant to 12 CFR

225.63(b)(12) that the services of an

appraiser are not necessary in order to

protect Federal financial and public

policy interests in real estate-related

financial transactions or to protect the

safety and soundness of an institution.

* * * * *

By order of the Board of Governors of the

Federal Reserve System, December 3, 1997.

William W. Wiles,

Secretary of the Board.

[FR Doc. 97–32159 Filed 12–8–97; 8:45 am]

BILLING CODE 6210–01–P