78126 Federal Register / Vol. 76, No. 242 / Friday, December 16, 2011 / Rules and Regulations 

1 12 U.S.C. 1811 et seq. 

2 12 U.S.C. 1831t. 

3 Id. 

4Public Law 111–203,124 Stat. 1376 (2010). 

5 Dodd-Frank section 1029 generally excludes 

from this transfer of authority, subject to certain 

exceptions, any rulemaking authority over a motor 

vehicle dealer that is predominantly engaged in the 

sale and servicing of motor vehicles, the leasing and 

servicing of motor vehicles, or both. 

be furnished to the appropriate state 

official, to the Federal authorities 

responsible for enforcement of the 

requirements of the Act, and to the 

Attorney General of the United States. 

The revocation shall become effective, 

and the class of debt collection practices 

affected within that state shall become 

subject to the requirements of sections 

803 through 812 of the Act, 90 days after 

the date of publication of the notice in 

the Federal Register. 

Subpart B—[Reserved] 

Dated: October 24, 2011. 

Alastair M. Fitzpayne, 

Deputy Chief of Staff and Executive Secretary, 

Department of the Treasury. 

[FR Doc. 2011–31733 Filed 12–15–11; 8:45 am] 

BILLING CODE 4810–AM–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1009 

[Docket No. CFPB–2011–0024] 

RIN 3170–AA06 

Disclosure Requirements for 

Depository Institutions Lacking 

Federal Deposit Insurance 

(Regulation I) 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Interim final rule with request 

for public comment. 

SUMMARY: Title X of the Dodd-Frank 

Wall Street Reform and Consumer 

Protection Act (Dodd-Frank Act) 

transferred rulemaking authority for a 

number of consumer financial 

protection laws from seven Federal 

agencies to the Bureau of Consumer 

Financial Protection (Bureau) as of July 

21, 2011. The Bureau is in the process 

of republishing the regulations 

implementing those laws with technical 

and conforming changes to reflect the 

transfer of authority and certain other 

changes made by the Dodd-Frank Act. 

In light of the transfer of the Federal 

Trade Commission’s (Commission’s) 

rulemaking authority for section 43(b)– 

(f) of the Federal Deposit Insurance Act 

(FDIA) to the Bureau, the Bureau is 

publishing for public comment an 

interim final rule establishing a new 

Regulation I (Disclosure Requirements 

for Depository Institutions Lacking 

Federal Deposit Insurance). This interim 

final rule does not impose any new 

substantive obligations on persons 

subject to the existing regulations, 

previously published by the 

Commission. 

DATES: This interim final rule is 

effective December 30, 2011. Comments 

must be received on or before February 

14, 2012. 

ADDRESSES: You may submit comments, 

identified by Docket No. CFPB–2011– 

0024 or RIN 3170–AA06, by any of the 

following methods: 

• Electronic: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Monica Jackson, Office of the 

Executive Secretary, Consumer 

Financial Protection Bureau, 1500 

Pennsylvania Avenue NW., (Attn: 1801 

L Street), Washington, DC 20220. 

• Hand Delivery/Courier in Lieu of 

Mail: Monica Jackson, Office of the 

Executive Secretary, Bureau of 

Consumer Financial Protection, 1700 G 

Street NW., Washington, DC 20006. 

All submissions must include the 

agency name and docket number or 

Regulatory Information Number (RIN) 

for this rulemaking. In general, all 

comments received will be posted 

without change to http:// 

www.regulations.gov. In addition, 

comments will be available for public 

inspection and copying at 1700 G Street 

NW., Washington, DC 20006, on official 

business days between the hours of 

10 a.m. and 5 p.m. Eastern Time. You 

can make an appointment to inspect the 

documents by telephoning (202) 435– 

7275. 

All comments, including attachments 

and other supporting materials, will 

become part of the public record and 

subject to public disclosure. Sensitive 

personal information, such as account 

numbers or social security numbers, 

should not be included. Comments will 

not be edited to remove any identifying 

or contact information. 

FOR FURTHER INFORMATION CONTACT: 

Krista Ayoub or Jane Gao, Office of 

Regulations, at (202) 435–7700. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Federal Deposit Insurance Act 

(FDIA),1 among other things, establishes 

the Federal Deposit Insurance 

Corporation which must insure the 

deposits of banks and savings 

associations entitled to the benefits of 

insurance under the FDIA. Not all 

depository institutions are required to 

maintain Federal deposit insurance. The 

FDIA requires that depository 

institutions lacking Federal deposit 

insurance make certain insurancerelated disclosures in periodic 

statements, account records, locations 

where deposits are normally received, 

and advertising.2 The FDIA also 

requires such depository institutions to 

obtain a written acknowledgment from 

depositors regarding the institution’s 

lack of Federal deposit insurance.3 Prior 

to July 21, 2011, the FDIA required that 

the Federal Trade Commission 

(Commission), by regulation or order, 

prescribe the manner and content of 

these disclosures. 

Historically, the disclosure 

requirements required by the FDIA for 

depository institutions lacking Federal 

deposit insurance have been 

implemented by the Commission in 16 

CFR Part 320. The Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (Dodd-Frank Act) 4 amended a 

number of consumer financial 

protection laws, including the FDIA. In 

addition to various substantive 

amendments, the Dodd-Frank Act 

transferred rulemaking authority for 

implementing the disclosure 

requirements for depository institutions 

lacking Federal deposit insurance, as 

described above, to the Bureau of 

Consumer Financial Protection 

(Bureau), effective July 21, 2011.5 See 

sections 1061 and 1090 of the DoddFrank Act. Pursuant to the Dodd-Frank 

Act and the FDIA, as amended, the 

Bureau is publishing for public 

comment an interim final rule 

establishing a new Regulation I 

(Disclosure Requirements for Depository 

Institutions Lacking Federal Deposit 

Insurance), 12 CFR Part 1009, 

implementing the disclosure 

requirements in the FDIA for depository 

institutions lacking Federal deposit 

insurance. 

II. Summary of the Interim Final Rule 

A. General 

The interim final rule substantially 

duplicates the Commission’s rule in 16 

CFR Part 320 as the Bureau’s new 

Regulation I, 12 CFR Part 1009, making 

only certain non-substantive, technical, 

formatting, and stylistic changes. To 

minimize any potential confusion, other 

than republishing the Commission’s 

existing rule in 16 CFR Part 320 with 

the Bureau’s part number, the Bureau is 

preserving where possible the 

numbering the Commission used in its 

existing rule. Additionally, while this 

interim final rule generally incorporates 

the Commission’s existing regulatory 


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Federal Register / Vol. 76, No. 242 / Friday, December 16, 2011 / Rules and Regulations 78127 

6Public Law 111–203, section 1061(b)(5). 

7 Id. Section 1002(12)(I) (defining ‘‘enumerated 

consumer laws’’ to include section 43(b)–(f) of the 

FDIA). 

8Section 1066 of the Dodd-Frank Act grants the 

Secretary of the Treasury interim authority to 

perform certain functions of the Bureau. Pursuant 

to that authority, Treasury is publishing this interim 

final rule on behalf of the Bureau. Until this and 

other interim final rules take effect, existing 

regulations for which rulemaking authority 

transferred to the Bureau continue to govern 

persons covered by this rule. See 76 FR 43569 (July 

21, 2011). 

9Public Law 111–203, section 1090(2)(A); 12 

U.S.C. 1831t(c). 

10 Id. section 1090(2)(B); 12 U.S.C. 1831t(d). 

11 5 U.S.C. 551 et seq. 

12 5 U.S.C. 553(b), (c). 

13 5 U.S.C. 553(b)(3)(A), (B). 

14This interim final rule is one of 14 companion 

rulemakings that together restate and recodify the 

implementing regulations under 14 existing 

consumer financial laws (part III.C, below, lists the 

14 laws involved). In the interest of proper 

coordination of this overall regulatory framework, 

which includes numerous cross-references among 

some of the regulations, the Bureau is establishing 

the same effective date of December 30, 2011 for 

those rules published on or before that date and 

making those published thereafter (if any) effective 

immediately. 

text, the rule has been edited as 

necessary to reflect nomenclature and 

other technical amendments required by 

the Dodd-Frank Act. Notably, this 

interim final rule does not impose any 

new substantive obligations on 

regulated entities. 

B. Specific Changes 

A paragraph that was not enumerated 

in the Commission’s rule (16 CFR 320.5) 

is enumerated as paragraph (c)(2) in 

§ 1009.5, and other provisions in 

§ 1009.5 are renumbered accordingly. In 

§ 1009.7, the provision specifying 

enforcement authority for the 

requirements set forth in Regulation I is 

revised from that in the Commission’s 

rule (16 CFR 320.7) to reflect changes 

made to the enforcement authority by 

the Dodd-Frank Act. In addition, 

references to the Commission and its 

administrative structure have been 

replaced with references to the Bureau. 

Conforming edits have been made to 

internal cross-references. Conforming 

edits have also been made to reflect the 

scope of the Bureau’s authority pursuant 

to the FDIA to issue implementing 

regulations for disclosures required of 

depository institutions lacking Federal 

deposit insurance, as amended by the 

Dodd-Frank Act. 

III. Legal Authority 

A. Rulemaking Authority 

The Bureau is issuing this interim 

final rule pursuant to its authority under 

the FDIA and the Dodd-Frank Act. 

Effective July 21, 2011, section 1061 of 

the Dodd-Frank Act transferred to the 

Bureau all of the Commission’s 

authority under an enumerated 

consumer law to prescribe rules, issues 

guidelines, conduct studies, or issue 

reports.6 Section 43(b)–(f) of the FDIA is 

an enumerated consumer law.7

Accordingly, effective July 21, 2011, the 

authority of the Commission to issue 

regulations pursuant to section 43(b)–(f) 

of the FDIA transferred to the Bureau.8

Section 43(c) of the FDIA, as 

amended, provides that the Bureau, by 

regulation or order, must prescribe the 

manner and content of disclosures 

required under section 43 of the FDIA 

that must be given by depository 

institutions lacking Federal depository 

insurance.9 In addition, section 43(d) of 

the FDIA, as amended, authorizes the 

Bureau, by regulation or order, to make 

exceptions to certain disclosure 

requirements set forth in section 43(b) of 

the FDIA for any depository institution 

that, within the United States, does not 

receive initial deposits of less than an 

amount equal to the standard maximum 

deposit insurance amount from 

individuals who are citizens or 

residents of the United States, other 

than money received in connection with 

any draft or similar instrument issued to 

transmit money.10

B. Authority To Issue an Interim Final 

Rule Without Prior Notice and Comment 

The Administrative Procedure Act 

(APA) 11 generally requires public 

notice and an opportunity to comment 

before promulgation of substantive 

regulations.12 The APA provides 

exceptions to notice-and-comment 

procedures, however, where an agency 

for good cause finds that such 

procedures are impracticable, 

unnecessary, or contrary to the public 

interest or when a rulemaking relates to 

agency organization, procedure, and 

practice.13 The Bureau finds that there 

is good cause to conclude that providing 

notice and opportunity for comment 

would be unnecessary and contrary to 

the public interest under these 

circumstances. In addition, substantially 

all the changes made by this interim 

final rule, which were necessitated by 

the Dodd-Frank Act’s transfer of FDIA 

authority under section 43(c) and (d) 

from the Commission to the Bureau, 

relate to agency organization, procedure, 

and practice and are thus exempt from 

the APA’s notice-and-comment 

requirements. 

The Bureau’s good cause findings are 

based on the following considerations. 

As an initial matter, the Commission’s 

existing regulation was a result of 

notice-and-comment rulemaking to the 

extent required. Moreover, the interim 

final rule published today does not 

impose any new, substantive obligations 

on regulated entities. Rather, the interim 

final rule only makes non-substantive, 

technical changes to the existing text of 

the regulation, such as renumbering, 

changing internal cross-references, and 

replacing appropriate nomenclature to 

reflect the transfer of authority to the 

Bureau. Given the technical nature of 

these changes, and the fact that the 

interim final rule does not impose any 

additional substantive requirements on 

covered entities, an opportunity for 

prior public comment is unnecessary. In 

addition, recodifying the Commission’s 

regulation to reflect the transfer of 

authority to the Bureau will help 

facilitate compliance with FDIA and its 

implementing regulations, and the new 

regulations will help reduce uncertainty 

regarding the applicable regulatory 

framework. Using notice-and-comment 

procedures would delay this process 

and thus be contrary to the public 

interest. 

The APA generally requires that rules 

be published not less than 30 days 

before their effective dates. See 5 U.S.C. 

553(d). As with the notice and comment 

requirement, however, the APA allows 

an exception when ‘‘otherwise provided 

by the agency for good cause found and 

published with the rule.’’ 5 U.S.C. 

553(d)(3). The Bureau finds that there is 

good cause for providing less than 30 

days notice here. A delayed effective 

date would harm consumers and 

regulated entities by needlessly 

perpetuating discrepancies between the 

amended statutory text and the 

implementing regulation, thereby 

hindering compliance and prolonging 

uncertainty regarding the applicable 

regulatory framework.14

In addition, delaying the effective 

date of the interim final rule for 30 days 

would provide no practical benefit to 

regulated entities in this context and in 

fact could operate to their detriment. As 

discussed above, the interim final rule 

published today does not impose any 

new, substantive obligations on 

regulated entities. Instead, the rule 

makes only non-substantive, technical 

changes to the existing text of the 

regulation. Thus, regulated entities that 

are already in compliance with the 

existing rules will not need to modify 

business practices as a result of this 

rule. 

C. Section 1022(b)(2) of the Dodd-Frank 

Act 

In developing the interim final rule, 

the Bureau has conducted an analysis of 


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78128 Federal Register / Vol. 76, No. 242 / Friday, December 16, 2011 / Rules and Regulations 

15Section 1022(b)(2)(A) of the Dodd-Frank Act 

addresses the consideration of the potential benefits 

and costs of regulation to consumers and covered 

persons, including the potential reduction of access 

by consumers to consumer financial products or 

services; the impact on depository institutions and 

credit unions with $10 billion or less in total assets 

as described in section 1026 of the Dodd-Frank Act; 

and the impact on consumers in rural areas. Section 

1022(b)(2)(B) requires that the Bureau ‘‘consult with 

the appropriate prudential regulators or other 

Federal agencies prior to proposing a rule and 

during the comment process regarding consistency 

with prudential, market, or systemic objectives 

administered by such agencies.’’ The manner and 

extent to which these provisions apply to interim 

final rules and to costs, benefits, and impacts that 

are compelled by statutory changes rather than 

discretionary Bureau action is unclear. 

Nevertheless, to inform this rulemaking more fully, 

the Bureau performed the described analyses and 

consultations. 

16The fourteen laws implemented by this and its 

companion rulemakings are: the Consumer Leasing 

Act, the Electronic Fund Transfer Act (except with 

respect to section 920 of that Act), the Equal Credit 

Opportunity Act, the Fair Credit Reporting Act 

(except with respect to sections 615(e) and 628 of 

that act), the Fair Debt Collection Practices Act, 

Subsections (b) through (f) of section 43 of the 

Federal Deposit Insurance Act, sections 502 through 

509 of the Gramm-Leach-Bliley Act (except for 

section 505 as it applies to section 501(b)), the 

Home Mortgage Disclosure Act, the Real Estate 

Settlement Procedures Act, the S.A.F.E. Mortgage 

Licensing Act, the Truth in Lending Act, the Truth 

in Savings Act, section 626 of the Omnibus 

Appropriations Act, 2009, and the Interstate Land 

Sales Full Disclosure Act. 

17 In light of the technical but voluminous nature 

of this recodification project, the Bureau focused 

the consultation process on a representative sample 

of the recodified regulations, while making 

information on the other regulations available. The 

Bureau expects to conduct differently its future 

consultations regarding substantive rulemakings. 

18 5 U.S.C. 601 et seq. 

19 5 U.S.C. 603, 604. 

20 5 U.S.C. 609. 

21 5 U.S.C. 603(a), 604(a); 5 U.S.C. 553(b)(B). 

22 5 U.S.C. 609(b). 

23 5 CFR 1320.3(c)(2); see Disclosures for NonFederally Insured Depository Institutions Under the 

Federal Deposit Insurance Corporation 

Improvement Act (FDICIA), 75 FR 31682, 31686 

(June 4, 2010). 

potential benefits, costs, and impacts.15

The Bureau believes that the interim 

final rule will benefit consumers and 

covered persons by updating and 

recodifying the Commission’s rules in 

16 CFR Part 320 to reflect the transfer 

of authority to the Bureau and certain 

other changes mandated by the DoddFrank Act. This will help facilitate 

compliance with section 43(b)–(f) of the 

FDIA and its implementing regulations 

and help reduce any uncertainty 

regarding the applicable regulatory 

framework. The interim final rule will 

not impose any new substantive 

obligations on consumers or covered 

persons and is not expected to have any 

impact on consumers’ access to 

consumer financial products and 

services. 

Although not required by the interim 

final rule, covered entities may incur 

some costs in updating compliance 

manuals and related materials to reflect 

the new numbering and other technical 

changes reflected in the new Regulation 

I. The Bureau has worked to reduce any 

such burden by preserving the existing 

numbering to the extent possible and 

believes that such costs will likely be 

minimal. These changes could be 

handled in the short term by providing 

a short, standalone summary alerting 

users to the changes and in the long 

term could be combined with other 

updates at the firm’s convenience. The 

Bureau intends to continue investigating 

the possible costs to affected entities of 

updating manuals and related materials 

to reflect these changes and solicits 

comments on this and other issues 

discussed in this section. 

The interim final rule will have no 

unique impact on depository 

institutions or credit unions with $10 

billion or less in assets as described in 

section 1026(a) of the Dodd-Frank Act. 

Also, the interim final rule will have no 

unique impact on rural consumers. 

In undertaking the process of 

recodifying the Commission’s rules in 

16 CFR Part 320, as well as regulations 

implementing thirteen other existing 

consumer financial laws,16 the Bureau 

consulted the Federal Deposit Insurance 

Corporation, the Office of the 

Comptroller of the Currency, the 

National Credit Union Administration, 

the Board of Governors of the Federal 

Reserve System, the Federal Trade 

Commission, and the Department of 

Housing and Urban Development, 

including with respect to consistency 

with any prudential, market, or systemic 

objectives that may be administered by 

such agencies.17 The Bureau also has 

consulted with the Office of 

Management and Budget for technical 

assistance. The Bureau expects to have 

further consultations with the 

appropriate Federal agencies during the 

comment period. 

IV. Request for Comment 

Although notice and comment 

rulemaking procedures are not required, 

the Bureau invites comments on this 

notice. Commenters are specifically 

encouraged to identify any technical 

issues raised by the rule. The Bureau is 

also seeking comment in response to a 

notice published at 76 FR 75825 (Dec. 

5, 2011) concerning its efforts to identify 

priorities for streamlining regulations 

that it has inherited from other Federal 

agencies to address provisions that are 

outdated, unduly burdensome, or 

unnecessary. 

V. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA), 

as amended by the Small Business 

Regulatory Enforcement Fairness Act of 

1996, requires each agency to consider 

the potential impact of its regulations on 

small entities, including small 

businesses, small governmental units, 

and small not-for-profit organizations.18

The RFA generally requires an agency to 

conduct an initial regulatory flexibility 

analysis (IRFA) and a final regulatory 

flexibility analysis (FRFA) of any rule 

subject to notice-and-comment 

rulemaking requirements, unless the 

agency certifies that the rule will not 

have a significant economic impact on 

a substantial number of small entities.19

The Bureau also is subject to certain 

additional procedures under the RFA 

involving the convening of a panel to 

consult with small business 

representatives prior to proposing a rule 

for which an IRFA is required.20

The IRFA and FRFA requirements 

described above apply only where a 

notice of proposed rulemaking is 

required,21 and the panel requirement 

applies only when a rulemaking 

requires an IRFA.22 As discussed above 

in part III, a notice of proposed 

rulemaking is not required for this 

rulemaking. 

In addition, as discussed above, this 

interim final rule has only a minor 

impact on entities subject to Regulation 

I. The rule imposes no new, substantive 

obligations on covered entities. 

Accordingly, the undersigned certifies 

that this interim final rule will not have 

a significant economic impact on a 

substantial number of small entities. 

VI. Paperwork Reduction Act 

At the time it adopted its existing 

regulation (16 CFR Part 320), the 

Commission determined that the rule’s 

disclosures and written 

acknowledgement statements were a 

‘‘public disclosure of information 

originally supplied by the Federal 

Government to the recipient for the 

purpose of disclosure to the public,’’ 

and thus did not constitute a collection 

of information for purposes of the 

Paperwork Reduction Act, 44 U.S.C. 

3501, et seq., as set forth in the Office 

of Management and Budget 

regulations.23 The Bureau has 

determined that this interim final rule 

does not impose any new recordkeeping 

or reporting requirements on covered 

institutions or members of the public 

beyond those already imposed by the 

Commission’s existing regulation. 

Accordingly, this interim final rule 

contains no collections of information 


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Federal Register / Vol. 76, No. 242 / Friday, December 16, 2011 / Rules and Regulations 78129 

requiring approval under 44 U.S.C. 

3501, et seq. 

List of Subjects in 12 CFR Part 1009 

Credit unions, Depository institutions, 

Federal Deposit Insurance Act, Federal 

Trade Commission Act, and Federal 

deposit insurance. 

Authority and Issuance 

■ For the reasons set forth above, the 

Bureau of Consumer Financial 

Protection adds part 1009 to Chapter X 

in Title 12 of the Code of Federal 

Regulations to read as follows: 

PART 1009—DISCLOSURE 

REQUIREMENTS FOR DEPOSITORY 

INSTITUTIONS LACKING FEDERAL 

DEPOSIT INSURANCE 

(REGULATION I) 

Sec. 

1009.1 Scope. 

1009.2 Definitions. 

1009.3 Disclosures in periodic statements 

and account records. 

1009.4 Disclosures in advertising and on 

the premises. 

1009.5 Disclosure acknowledgment. 

1009.6 Exception for certain depository 

institutions. 

1009.7 Enforcement. 

Authority: 12 U.S.C. 1831t, 5512, 5581. 

§ 1009.1 Scope. 

This part, known as Regulation I, is 

issued by the Bureau of Consumer 

Financial Protection. This part applies 

to all depository institutions lacking 

Federal deposit insurance. It requires 

the disclosure of certain insurancerelated information in periodic 

statements, account records, locations 

where deposits are normally received, 

and advertising. This part also requires 

such depository institutions to obtain a 

written acknowledgment from 

depositors regarding the institution’s 

lack of Federal deposit insurance. 

§ 1009.2 Definitions. 

For purposes of this part: 

Depository institution means any bank 

or savings association as defined under 

12 U.S.C. 1813, or any credit union 

organized and operated according to the 

laws of any state, the District of 

Columbia, the several territories and 

possessions of the United States, the 

Panama Canal Zone, or the 

Commonwealth of Puerto Rico, which 

laws provide for the organization of 

credit unions similar in principle and 

objectives to Federal credit unions. 

Lacking Federal deposit insurance 

means the depository institution is 

neither an insured depository 

institution as defined in 12 U.S.C. 

1813(c)(2), nor an insured credit union 

as defined in section 101 of the Federal 

Credit Union Act, 12 U.S.C. 1752. 

Standard maximum deposit 

insurance amount means the maximum 

amount of deposit insurance as 

determined under section 11(a)(1) of the 

Federal Deposit Insurance Act (12 

U.S.C. 1821(a)(1)). 

§ 1009.3 Disclosures in periodic 

statements and account records. 

Depository institutions lacking 

Federal deposit insurance must include 

a notice disclosing clearly and 

conspicuously that the institution is not 

federally insured, and that if the 

institution fails, the Federal 

Government does not guarantee that 

depositors will get back their money, in 

all periodic statements of account, on 

each signature card, and on each 

passbook, certificate of deposit, or share 

certificate. For example, a notice would 

comply with the requirement if it 

conspicuously stated: ‘‘[Institution’s 

name] is not federally insured. If it fails, 

the Federal Government does not 

guarantee that you will get your money 

back.’’ The disclosures required by this 

section must be clear and conspicuous 

and presented in a simple and easy to 

understand format, type size, and 

manner. 

§ 1009.4 Disclosures in advertising and on 

the premises. 

(a) Required disclosures. Each 

depository institution lacking Federal 

deposit insurance must include a clear 

and conspicuous notice disclosing that 

the institution is not federally insured: 

(1) At each station or window where 

deposits are normally received, its 

principal place of business and all its 

branches where it accepts deposits or 

opens accounts (excluding automated 

teller machines or point of sale 

terminals), and on its main internet 

page; and 

(2) In all advertisements except as 

provided in paragraph (c) of this 

section. 

(b) Format and type size. The 

disclosures required by this section 

must be clear and conspicuous and 

presented in a simple and easy to 

understand format, type size, and 

manner. 

(c) Exceptions. The following need 

not include a notice that the institution 

is not federally insured: 

(1) Any sign, document, or other item 

that contains the name of the depository 

institution, its logo, or its contact 

information, but only if the sign, 

document, or item does not include any 

information about the institution’s 

products or services or information 

otherwise promoting the institution; and 

(2) Small utilitarian items that do not 

mention deposit products or insurance, 

if inclusion of the notice would be 

impractical. 

§ 1009.5 Disclosure acknowledgment. 

(a) New depositors obtained other 

than through a conversion or merger. 

With respect to any depositor who was 

not a depositor at the depository 

institution on or before October 13, 

2006, and who is not a depositor as 

described in paragraph (b) of this 

section, a depository institution lacking 

Federal deposit insurance may receive a 

deposit for the account of such 

depositor only if the institution has 

obtained the depositor’s signed written 

acknowledgement that: 

(1) The institution is not federally 

insured; and 

(2) If the institution fails, the Federal 

Government does not guarantee that the 

depositor will get back the depositor’s 

money. 

(b) New depositors obtained through a 

conversion or merger. With respect to a 

depositor at a federally insured 

depository institution that converts to, 

or merges into, a depository institution 

lacking Federal insurance after October 

13, 2006, a depository institution 

lacking Federal deposit insurance may 

receive a deposit for the account of such 

depositor only if: 

(1) The institution has obtained the 

depositor’s signed written 

acknowledgement described in 

paragraph (a) of this section; or 

(2) The institution makes an attempt, 

sent by mail no later than 45 days after 

the effective date of the conversion or 

merger, to obtain the acknowledgment. 

In making such an attempt, the 

institution must transmit to each 

depositor who has not signed and 

returned a written acknowledgement 

described in paragraph (a) of this 

section: 

(i) A conspicuous card containing the 

information described in paragraphs 

(a)(1) and (2) of this section, and a line 

for the signature of the depositor; and 

(ii) Accompanying materials 

requesting the depositor to sign the 

card, and return the signed card to the 

institution. 

(c) Depositors obtained on or before 

October 13, 2006. (1) Any depository 

institution lacking Federal deposit 

insurance may receive any deposit after 

October 13, 2006, for the account of a 

depositor who was a depositor on or 

before that date only if: 

(i) The depositor has signed a written 

acknowledgement described in 

paragraph (a) of this section; or 

(ii) The institution has transmitted to 

the depositor: 


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78130 Federal Register / Vol. 76, No. 242 / Friday, December 16, 2011 / Rules and Regulations 

1Public L. 111–8, 123 Stat. 524 (2009). The 

Omnibus Appropriations Act also directed the FTC 

to use notice and comment procedures under 

section 553 of the Administrative Procedure Act 

(APA), 5 U.S.C. 553, to promulgate rules pursuant 

to the Omnibus Appropriations Act in lieu of the 

procedures set forth in section 18 of the FTC Act, 

15 U.S.C. 57a. The FTC noted in its Advance Notice 

of Proposed Rulemaking: Mortgage Acts and 

Practices, 74 FR 26118 (June 1, 2009), that because 

Omnibus Appropriations Act rulemaking is not 

undertaken pursuant to section 18, 15 U.S.C. 57a(f), 

Federal banking agencies are not required to 

promulgate substantially similar regulations for 

entities within their jurisdiction. Id. at 26119, note 

2. 

2Public Law 111–24, 123 Stat. 1734 (2009). 

3 Id. Section 511(a)(1)(B). 

(A) A conspicuous card containing 

the information described in paragraphs 

(a)(1) and (2) of this section, and a line 

for the signature of the depositor; and 

(B) Accompanying materials 

requesting that the depositor sign the 

card, and return the signed card to the 

institution. 

(2) An institution described in 

paragraph (c)(1) of this section must 

have made the transmission described 

in paragraph (c)(1)(ii) of this section via 

mail not later than three months after 

October 13, 2006. The institution must 

have made a second identical 

transmission via mail not less than 30 

days, and not more than three months, 

after the first transmission to the 

depositor in accordance with paragraph 

(c)(1)(ii) of this section, if the institution 

has not, by the date of such mailing, 

received from the depositor a card 

referred to in paragraph (c)(1)(i) of this 

section which has been signed by the 

depositor. 

(d) Format and type size. The 

disclosures required by this section 

must be clear and conspicuous and 

presented in a simple and easy to 

understand format, type size, and 

manner. 

§ 1009.6 Exception for certain depository 

institutions. 

The requirements of this part do not 

apply to any depository institution 

lacking Federal deposit insurance and 

located within the United States that 

does not receive initial deposits of less 

than an amount equal to the standard 

maximum deposit insurance amount 

from individuals who are citizens or 

residents of the United States, other 

than money received in connection with 

any draft or similar instrument issued to 

transmit money. 

§ 1009.7 Enforcement. 

Compliance with the requirements of 

this part shall be enforced under the 

Consumer Financial Protection Act of 

2010, Public Law 111–203, Title X, 124 

Stat. 1955, by the Bureau of Consumer 

Financial Protection, subject to subtitle 

B of the Consumer Financial Protection 

Act of 2010, and under the Federal 

Trade Commission Act, 15 U.S.C. 41 et 

seq, by the Federal Trade Commission. 

Dated: October 24, 2011. 

Alastair M. Fitzpayne, 

Deputy Chief of Staff and Executive Secretary, 

Department of the Treasury. 

[FR Doc. 2011–31732 Filed 12–15–11; 8:45 am] 

BILLING CODE 4810–AM–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Parts 1014 and 1015 

[Docket No. CFPB–2011–0027] 

RIN 3170–AA06 

Mortgage Acts and Practices— 

Advertising (Regulation N); Mortgage 

Assistance Relief Services (Regulation 

O) 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Interim final rule with request 

for public comment. 

SUMMARY: Title X of the Dodd-Frank 

Wall Street Reform and Consumer 

Protection Act (Dodd-Frank Act) 

transferred rulemaking authority for a 

number of consumer financial 

protection laws from seven Federal 

agencies to the Bureau of Consumer 

Financial Protection (Bureau) as of July 

21, 2011. The Bureau is in the process 

of republishing the regulations 

implementing those laws with technical 

and conforming changes to reflect the 

transfer of authority and certain other 

changes made by the Dodd-Frank Act. 

In light of the transfer of the Federal 

Trade Commission’s (FTC’s) rulemaking 

authority for section 626 of the Omnibus 

Appropriations Act, 2009 (Omnibus 

Appropriations Act) to the Bureau, the 

Bureau is publishing for public 

comment an interim final rule 

establishing a new Regulation N 

(Mortgage Acts and Practices— 

Advertising Rule) and a new Regulation 

O (Mortgage Assistance Relief Services 

Rule). This interim final rule does not 

impose any new substantive obligations 

on persons subject to the existing 

Mortgages Acts and Practices— 

Advertising Rule or the existing 

Mortgage Assistance Relief Services 

Rule, previously published by the FTC. 

DATES: This interim final rule is 

effective December 30, 2011. Comments 

must be received on or before February 

14, 2012. 

ADDRESSES: You may submit comments, 

identified by Docket No. CFPB–2011– 

0027 or RIN 3170–AA06, by any of the 

following methods: 

• Electronic: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Monica Jackson, Office of the 

Executive Secretary, Bureau of 

Consumer Financial Protection, 1500 

Pennsylvania Ave. NW., (Attn: 1801 L 

Street), Washington, DC 20220. 

• Hand Delivery/Courier in Lieu of 

Mail: Monica Jackson, Office of the 

Executive Secretary, Bureau of 

Consumer Financial Protection, 1700 G 

Street NW., Washington, DC 20006. 

All submissions must include the 

agency name and docket number or 

Regulatory Information Number (RIN) 

for this rulemaking. In general, all 

comments received will be posted 

without change to http:// 

www.regulations.gov. In addition, 

comments will be available for public 

inspection and copying at 1700 G Street 

NW., Washington DC 20006, on official 

business days between the hours of 

10 a.m. and 5 p.m. Eastern Time. You 

can make an appointment to inspect the 

documents by telephoning (202) 435– 

7275. 

All comments, including attachments 

and other supporting materials, will 

become part of the public record and 

subject to public disclosure. Sensitive 

personal information, such as account 

numbers or social security numbers, 

should not be included. Comments will 

not be edited to remove any identifying 

or contact information. 

FOR FURTHER INFORMATION CONTACT: Jane 

Gao or Krista Ayoub, Office of 

Regulations, at (202) 435–7700. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Congress enacted section 626 of the 

Omnibus Appropriations Act, 2009 

(Omnibus Appropriations Act) on 

March 11, 2009 and directed the Federal 

Trade Commission (FTC) to commence 

a rulemaking proceeding within 90 days 

of enactment with respect to mortgage 

loans.1 On May 22, 2009, the enactment 

of the Credit Card Accountability 

Responsibility and Disclosure Act of 

2009 2 clarified the FTC’s rulemaking 

authority under the Omnibus 

Appropriations Act to specify that the 

FTC’s rulemaking based on its authority 

pursuant to the Omnibus 

Appropriations Act ‘‘shall relate to 

unfair or deceptive acts or practices 

regarding mortgage loans,’’ which may 

involve loan modification and 

foreclosure rescue services.3


jlentini on DSK4TPTVN1PROD with RULES