Federal Register / Vol. 62, No. 44 / Thursday, March 6, 1997 / Rules and Regulations 10199

coverage whether or not the coverage is

considered insurance. Creditors may use the

model credit insurance disclosures only if

the debt cancellation coverage constitutes

insurance under state law.

* * * * *

15. In Supplement I to Part 226, under

Appendix H—Closed-End Model Forms

and Clauses, a new sentence is added to

the end of paragraph 11. to read as

follows:

* * * * *

Appendix H—Closed-End Model Forms and

Clauses

* * * * *

11. Models H–8 and H–9. * * * The prior

version of model form H–9 is substantially

similar to the current version and creditors

may continue to use it, as appropriate.

Creditors are encouraged, however, to use the

current version when reordering or reprinting

forms.

* * * * *

By order of the Board of Governors of the

Federal Reserve System, acting through the

Secretary of the Board under delegated

authority, February 28, 1997.

Jennifer J. Johnson,

Deputy Secretary of the Board.

[FR Doc. 97–5447 Filed 3–5–97; 8:45 am]

BILLING CODE 6210–01–P

FEDERAL DEPOSIT INSURANCE

CORPORATION

12 CFR Part 350

RIN 3064–AB98

Disclosure of Financial and Other

Information by FDIC-Insured State

Nonmember Banks

AGENCY: Federal Deposit Insurance

Corporation (FDIC or Corporation).

ACTION: Final rule.

SUMMARY: As part of the FDIC’s

systematic review of its regulations and

written policies under section 303(a) of

the Riegle Community Development and

Regulatory Improvement Act of 1994

(CDRI), the FDIC is revising its

regulation entitled ‘‘Disclosure of

Financial and Other Information by

FDIC-Insured State Nonmember Banks’’

(the Rule). The revision removes

references to the obsolete savings bank

Call Report. It also permits the annual

report required by the Corporation’s

regulation on annual independent

audits and reporting requirements to be

used as the annual disclosure statement

in certain circumstances, and updates

and clarifies certain other references in

the Rule.

EFFECTIVE DATE: April 7, 1997.

FOR FURTHER INFORMATION CONTACT:

Doris L. Marsh, Examination Specialist,

Division of Supervision, (202) 898–

8905; or Sandra Comenetz, Counsel,

Legal Division, (202) 898–3582, FDIC,

550 17th Street N.W., Washington, DC

20429.

SUPPLEMENTARY INFORMATION:

Background

The FDIC is conducting a systematic

review of its regulations and written

policies. Section 303(a) of the CDRI (12

U.S.C. 4803(a)) requires each federal

banking agency to streamline and

modify its regulations and written

policies in order to improve efficiency,

reduce unnecessary costs, and eliminate

unwarranted constraints on credit

availability. Section 303(a) also requires

each federal agency to remove

inconsistencies and outmoded and

duplicative requirements from its

regulations and written policies. Part

350 contains outdated and unnecessary

language that needs to be revised or

removed.

Part 350 was adopted by the FDIC

Board of Directors on December 17,

1987, and published on December 31,

1987, 52 FR 49379, effective February 1,

1988. The Rule requires FDICsupervised banks and branches of

foreign banks to prepare, and make

available on request, annual disclosure

statements consisting of: (1) Required

financial data comparable to specified

schedules in Call Reports filed for the

previous two year-ends; (2) information

that the FDIC may require of particular

organizations; and (3) other optional

information. The annual disclosure

statement must be prepared by March

31 of the following year, or the fifth day

after an organization’s annual report

covering the year is sent to

shareholders, whichever occurs first. In

place of Call Report data, a bank may

use audited financial statements or

reports prepared pursuant to other

regulations by the bank or a parent onebank holding company.

Discussion

The contents of the annual disclosure

statement listed in § 350.4(a)(1)(iv) and

(v) refer in part to schedules in the Call

Report for FDIC-supervised savings

banks. The FDIC eliminated the separate

savings bank Call Report in 1989.

Therefore, these outdated references are

being deleted.

The FDIC has proposed amending 12

CFR part 335 by incorporating by

reference the rules and regulations

promulgated by the Securities and

Exchange Commission under the

Securities Exchange Act of 1934 rather

than having its own detailed rules and

regulations. (61 FR 33696) Therefore,

§ 350.5(a) is revised to refer simply to

part 335 rather than to specific

subsections of this regulation.

The Federal Deposit Insurance

Corporation Improvement Act of 1991

added section 36 to the Federal Deposit

Insurance Act. Section 36 and its

implementing regulation, 12 CFR part

363, require all insured depository

institutions with $500 million or more

in total assets at the beginning of their

fiscal year to have an annual audit of

their financial statements performed by

an independent public accountant. The

audited financial statements are part of

an annual report that institutions

subject to section 36 must prepare and

submit to the FDIC. A new paragraph (d)

is added to § 350.5 permitting the use of

these annual reports as annual

disclosure statements in certain

situations.

In addition, several other wording

changes have been made to improve the

clarity of the regulations.

Public Comment Waiver and Effective

Date

This regulation is being issued as a

final rule. The Administrative

Procedure Act, 5 U.S.C. 551 et seq.

(APA) requires that general notice of a

proposed rulemaking be published in

the Federal Register. 5 U.S.C. 553(b).

However, the revision of part 350 is

exempt from the Federal Register

publication requirement pursuant to

subsection 553(b)(B). This section of the

APA creates a publication exemption

‘‘when the agency for good cause finds

* * * that notice and public procedure

thereon are impracticable, unnecessary,

or contrary to the public interest.’’ 5

U.S.C. 553(b)(B). The revisions to part

350 are minor and technical; therefore

the notice and public comment

requirements of section 553(b) are

unnecessary. Id. In addition, the APA

provides that the required publication of

a substantive rule in the Federal

Register shall be made not less than 30

days before its effective date. 5 U.S.C.

553(d). Part 350 would be exempt from

this requirement also for good cause.

The amendments are of such a nature

that the public does not need a delayed

period of time to conform or adjust to

them. 5 U.S.C. 553(d)(3).

Paperwork Reduction Act

No collection of information pursuant

to section 3504(h) of the Paperwork

Reduction Act (44 U.S.C. 3501 et seq.)

is required by the amendments.

Therefore, no information has been

submitted to the Office of Management

and Budget for review.
10200 Federal Register / Vol. 62, No. 44 / Thursday, March 6, 1997 / Rules and Regulations

Regulatory Flexibility Act

Because the revisions to part 350 are

published in final form without a notice

of proposed rulemaking, no regulatory

flexibility analysis is required.

Small Business Regulatory Enforcement

Fairness Act

The Small Business Regulatory

Enforcement Fairness Act of 1996

(SBREFA) (Pub. L. 104–121) provides

generally for Congressional review of

final agency rules. The reporting

requirement is triggered when agencies

issue a final rule as defined by the

Administrative Procedure Act (APA) at

5 U.S.C. 551. Because the FDIC is

issuing a final rule as defined by the

APA, the FDIC will file the reports

required by SBREFA.

The Office of Management and Budget

has determined that the revision of part

350 does not constitute a ‘‘major rule’’

as defined by SBREFA.

List of Subjects in 12 CFR Part 350

Accounting, Banks, banking,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, the Board of Directors of the

FDIC hereby amends part 350 of chapter

III of title 12 of the Code of Federal

Regulations as follows:

PART 350—DISCLOSURE OF

FINANCIAL AND OTHER

INFORMATION BY FDIC-INSURED

STATE NONMEMBER BANKS

1. The authority citation for part 350

continues to read as follows:

Authority: 12 U.S.C. 1817(a)(1), 1819

‘‘Seventh’’ and ‘‘Tenth’’.

2. Section 350.3 is revised to read as

follows:

§ 350.3 Requirement for annual disclosure

statement.

(a) Contents. Each bank shall prepare

as of December 31 and make available

on request an annual disclosure

statement. The statement shall contain

information required by § 350.4(a) and

(b) and may include other information

that bank management believes

appropriate, as provided in § 350.4(c).

(b) Availability. A bank shall make its

annual disclosure statement available to

the public beginning not later than the

following March 31 or, if the bank mails

an annual report to its shareholders,

beginning not later than five days after

the mailing of such reports, whichever

occurs first. A bank shall make a

disclosure statement available

continuously until the disclosure

statement for the succeeding year

becomes available.

3. Section 350.4 is revised to read as

follows:

§ 350.4 Contents of annual disclosure

statement.

(a) Financial reports. The annual

disclosure statement for any year shall

reflect a fair presentation of the bank’s

financial condition at the end of that

year and the preceding year and, except

for state-licensed branches of foreign

banks, the results of operations for each

such year. The annual disclosure

statement may, at the option of bank

management, consist of the bank’s entire

Call Report, or applicable portions

thereof, for the relevant dates and

periods. At a minimum, the statement

must contain information comparable to

that provided in the following Call

Report schedules:

(1) For insured state-chartered

organizations that are not members of

the Federal Reserve System:

(i) Schedule RC (Balance Sheet);

(ii) Schedule RC-N (Past Due and

Nonaccrual, Loans, Leases, and Other

Assets—column A covering financial

instruments past due 30 through 89

days and still accruing and

Memorandum item 1 need not be

included);

(iii) Schedule RI (Income Statement);

(iv) Schedule RI-A (Changes in Equity

Capital); and

(v) Schedule RI-B, Part II (Changes in

Allowance for Loan and Lease Losses).

(2) For insured state-licensed

branches of foreign banks:

(i) Schedule RAL (Assets and

Liabilities);

(ii) Schedule E (Deposit Liabilities

and Credit Balances); and

(iii) Schedule P (Other Borrowed

Money).

(b) Other required information. The

annual disclosure statement shall

include such other information as the

FDIC may require of a particular bank.

This could include disclosure of

enforcement actions where the FDIC

deems it in the public interest to do so.

(c) Optional information. A bank may,

at its option, provide additional

information that bank management

considers important to an evaluation of

the overall condition of the bank. This

information could include, but is not

limited to, a discussion of the financial

data; information relating to mergers

and acquisitions; the existence of and

facts relating to regulatory enforcement

actions; business plans; and material

changes in balance sheet and income

statement items.

(d) Disclaimer. The following legend

shall be included in every annual

disclosure statement to advise the

public that the FDIC has not reviewed

the information contained therein:

‘‘This statement has not been reviewed,

or confirmed for accuracy or relevance,

by the Federal Deposit Insurance

Corporation.’’

4. Section 350.5 is revised to read as

follows:

§ 350.5 Alternative annual disclosure

statements.

The requirements of § 350.4(a) may be

satisfied:

(a) In the case of a bank having a

class of securities registered pursuant to

section 12 of the Securities Exchange

Act of 1934, by the bank’s annual report

to security holders for meetings at

which directors are to be elected or the

bank’s annual report (see 12 CFR part

335);

(b) In the case of a bank with

independently audited financial

statements, by copies of the audited

financial statements and the certificate

or report of the independent accountant

to the extent that such statements

contain information comparable to that

specified in § 350.4(a); and

(c) In the case of a bank subsidiary of

a one-bank holding company, by an

annual report of the one-bank holding

company prepared in conformity with

the regulations of the Securities and

Exchange Commission or by sections in

the holding company’s consolidated

financial statements on Form FR Y–9C

pursuant to Regulation Y of the Federal

Reserve Board (12 CFR part 225) that are

comparable to the Call Report schedules

enumerated in § 350.4(a)(1), provided

that in either case not less than 95

percent of the holding company’s

consolidated total assets and total

liabilities are assets and liabilities of the

bank and the bank’s consolidated

subsidiaries.

(d) In the case of a bank covered by

12 CFR part 363, by an annual report

prepared pursuant to 12 CFR 363.4.

However, if the annual report is for a

bank subsidiary of a holding company

which provides only the consolidated

financial statements of the holding

company, this annual report may be

used to satisfy the requirements of this

part only if it is the report of a one-bank

holding company and provided that not

less than 95 percent of the holding

company’s consolidated total assets and

total liabilities are assets and liabilities

of the bank and the bank’s consolidated

subsidiaries.

5. Section 350.6 is revised to read as

follows:

§ 350.6 Signature and attestation.

An authorized officer of the bank

shall sign the annual disclosure

statement. The officer shall also attest to
Federal Register / Vol. 62, No. 44 / Thursday, March 6, 1997 / Rules and Regulations 10201

the correctness of the information

contained in the statement if the

financial reports are not accompanied

by a certificate or report of an

independent accountant.

6. Section 350.12 is revised to read as

follows:

§ 350.12 Disclosure required by applicable

banking or securities law or regulations.

The requirements of this part are not

intended to replace or waive any

disclosure required to be made under

applicable banking or securities law or

regulations.

By order of the Board of Directors.

Dated at Washington, D. C. this 4th day of

February, 1997.

Federal Deposit Insurance Corporation.

Robert E. Feldman,

Deputy Executive Secretary.

[FR Doc. 97–5510 Filed 3–5–97; 8:45 am]

BILLING CODE 6714–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 96–ANE–08; Amendment 39–

9926; AD 97–04–03]

RIN 2120–AA64

Airworthiness Directives; AlliedSignal

Inc. TFE731 Series Turbofan Engines

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD),

applicable to AlliedSignal Inc. TFE731

series turbofan engines, that requires

removal from service of certain first

stage low pressure turbine (LPT) seal

plates prior to accumulating the new,

reduced cyclic life limit, and

replacement with serviceable LPT seal

plates. This amendment is prompted by

a report that the machined LPT seal

plate geometry did not meet the design

intent due to drawing ambiguity. The

actions specified by this AD are

intended to prevent fatigue cracking and

subsequent uncontained failure of an

LPT seal plate.

DATES: Effective May 5, 1997.

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of May 5,

1997.

ADDRESSES: The service information

referenced in this AD may be obtained

from AlliedSignal Aerospace, Attn: Data

Distribution, M/S 64–3/2101–201, P.O.

Box 29003, Phoenix, AZ 85038–9003;

telephone (602) 365–2493, fax (602)

365–5577. This information may be

examined at the Federal Aviation

Administration (FAA), New England

Region, Office of the Assistant Chief

Counsel, 12 New England Executive

Park, Burlington, MA; or at the Office of

the Federal Register, 800 North Capitol

Street, NW., suite 700, Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Joseph Costa, Aerospace Engineer, Los

Angeles Aircraft Certification Office,

FAA, Transport Airplane Directorate,

3960 Paramount Blvd., Lakewood, CA

90712–4137; telephone (310) 627–5246;

fax (310) 627–5210.

SUPPLEMENTARY INFORMATION: A

proposal to amend part 39 of the Federal

Aviation Regulations (14 CFR part 39) to

include an airworthiness directive (AD)

that is applicable to AlliedSignal Inc.

TFE731 series turbofan engines was

published in the Federal Register on

July 10, 1996 (61 FR 36310). That action

proposed to require removing from

service first stage LPT seal plates, Part

Number (P/N) 3073552–2 and P/N

3074053–1, prior to accumulating the

new, reduced cyclic life limit of 3,700

cycles since new (CSN), and

replacement with serviceable parts. The

actions would be required to be

accomplished in accordance with

AlliedSignal Inc. Service Bulletin (SB)

No. TFE731–72–3573, dated August 15,

1995. AlliedSignal Inc. SB No. TFE731–

72–3001, Service Life Limits of Critical

Life Limited Components, Revision 42,

dated July 17, 1995, incorporates the

new cyclic life limit of 3,700 CSN.

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. No

comments were received on the

proposal or the FAA’s determination of

the cost to the public. The FAA has

added a new paragraph (c) to clarify that

operators may seek FAA-approval of

modifications to the new life limits only

through the alternative method of

compliance procedure described in the

AD. The FAA has determined that air

safety and the public interest require the

adoption of the rule with this

change.The FAA has determined that

this change will neither increase the

economic burden on any operator nor

increase the scope of the AD.

The FAA estimates that 268 engines

installed on aircraft of U.S. registry will

be affected by this AD, that it will take

approximately 1 work hour per engine

to accomplish the required actions, and

that the average labor rate is $60 per

work hour. Required parts will cost

approximately $5,000 per engine. Based

on these figures, the total cost impact of

the AD on U.S. operators is estimated to

be $1,356,080.

The regulations adopted herein will

not have substantial direct effects on the

States, on the relationship between the

national government and the States, or

on the distribution of power and

responsibilities among the various

levels of government. Therefore, in

accordance with Executive Order 12612,

it is determined that this final rule does

not have sufficient federalism

implications to warrant the preparation

of a Federalism Assessment.

For the reasons discussed above, I

certify that this action (1) is not a

‘‘significant regulatory action’’ under

Executive Order 12866; (2) is not a

‘‘significant rule’’ under DOT

Regulatory Policies and Procedures (44

FR 11034, February 26, 1979); and (3)

will not have a significant economic

impact, positive or negative, on a

substantial number of small entities

under the criteria of the Regulatory

Flexibility Act. A final evaluation has

been prepared for this action and it is

contained in the Rules Docket. A copy

of it may be obtained from the Rules

Docket at the location provided under

the caption ADDRESSES.

List of Subjects in 14 CFR Part 39

Air Transportation, Aircraft, Aviation

safety, Incorporation by reference,

Safety.

Adoption of the Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration amends part 39 of the

Federal Aviation Regulations (14 CFR

part 39) as follows:

PART 39—AIRWORTHINESS

DIRECTIVES

1. The authority citation for part 39

continues to read as follows:

Authority: 49 USC 106(g), 40113, 44701.

§ 39.13 [AMENDED]

2. Section 39.13 is amended by

adding the following new airworthiness

directive:

97–04–03 AlliedSignal Inc.: Amendment 39–

9926. Docket 96–ANE–08.

Applicability: AlliedSignal Inc. Models

TFE731–2A, –3C and –3CR series turbofan

engines, with first stage low pressure turbine

(LPT) seal plates, Part Number (P/N)

3073552–2 and P/N 3074053–1, installed on

but not limited to the following aircraft:

Cessna Model 650 Citation III and Israel

Aircraft Industries Model 1125 Westwind

Astra aircraft.

Note 1: This airworthiness directive (AD)

applies to each engine identified in the

preceding applicability provision, regardless