Federal Register / Vol. 62, No. 62 / Tuesday, April 1, 1997 / Notices 15479

Request for Comment

Comments are invited on: (a) whether

the collection of information is

necessary for the proper performance of

the FDIC’s functions, including whether

the information has practical utility; (b)

the accuracy of the estimates of the

burden of the information collection,

including the validity of the

methodology and assumptions used; (c)

ways to enhance the quality, utility, and

clarity of the information to be

collected; and (d) ways to minimize the

burden of the information collection on

respondents, including through the use

of automated collection techniques or

other forms of information technology.

At the end of the comment period, the

comments and recommendations

received will be analyzed to determine

the extent to which the collection

should be modified prior to submission

to OMB for review and approval.

Comments submitted in response to this

notice also will be summarized or

included in the FDIC’s requests to OMB

for renewal of this collection. All

comments will become a matter of

public record.

Dated at Washington, D.C., this 26th day of

March 1997.

Federal Deposit Insurance Corporation

Robert E. Feldman,

Deputy Executive Secretary.

[FR Doc. 97–8179 Filed 3–31–97; 8:45 am]

BILLING CODE 6714–01–M

Agency Information Collection

Activities: Proposed Collection;

Comment Request

AGENCY: Federal Deposit Insurance

Corporation (FDIC).

ACTION: Notice and request for comment.

SUMMARY: The FDIC, as part of its

continuing effort to reduce paperwork

and respondent burden, invites the

general public and other Federal

agencies to take this opportunity to

comment on proposed and/or

continuing information collections, as

required by the Paperwork Reduction

Act of 1995 (44 U.S.C. chapter 35).

Currently, the FDIC is soliciting

comments concerning an information

collection titled ‘‘Application for

Consent to Effect a Merger-Type

Transaction.’’

DATES: Comments must be submitted on

or before June 2, 1997.

ADDRESSES: Interested parties are

invited to submit written comments to

Steven F. Hanft, FDIC Clearance Officer,

(202) 898–3907, Office of the Executive

Secretary, Federal Deposit Insurance

Corporation, 550 17th Street N.W.,

Washington, D.C. 20429. All comments

should refer to ‘‘Application for Consent

to Effect a Merger-Type Transaction.’’

Comments may be hand-delivered to

Room F–400, 1776 F Street, N.W.,

Washington, D.C. 20429, on business

days between 8:30 a.m. and 5:00 p.m.

[FAX number (202) 898–3838; Internet

address: comments@fdic.gov].

A copy of the comments may also be

submitted to the OMB desk officer for

the FDIC: Alexander Hunt, Office of

Information and Regulatory Affairs,

Office of Management and Budget, New

Executive Office Building, Room 3208,

Washington, D.C. 20503.

FOR FURTHER INFORMATION CONTACT:

Steven F. Hanft, at the address

identified above.

SUPPLEMENTARY INFORMATION: Proposal

to renew the following currently

approved collection of information:

Title: Application for Consent to

Effect a Merger-Type Transaction (FDIC

Form 6220/01).

OMB Number: 3064–0016.

Frequency of Response: Occasional.

Affected Public: Any depository

institution that wishes to merge,

consolidate with, acquire the assets of,

or assume liability to pay any deposits

made in any other insured depository

institution or noninsured bank or

institution.

Estimated Number of Respondents:

220.

Estimated Time per Response: 74

hours.

Estimated Total Annual Burden:

16,280 hours.

General Description of Collection: To

fulfill its obligation under Section 18(c)

of the Federal Deposit Insurance Act (12

U.S.C. 1828(c)) the FDIC requests in

FDIC Form 6220/01 information about

the effect of the propose merger on

competition; information about the

financial and managerial resources and

future prospects of the existing and

proposed institutions; and information

about the convenience and needs of the

community to be served.

Request for Comment

Comments are invited on: (a) whether

the collection of information is

necessary for the proper performance of

the FDIC’s functions, including whether

the information has practical utility; (b)

the accuracy of the estimates of the

burden of the information collection,

including the validity of the

methodology and assumptions used; (c)

ways to enhance the quality, utility, and

clarity of the information to be

collected; and (d) ways to minimize the

burden of the information collection on

respondents, including through the use

of automated collection techniques or

other forms of information technology.

At the end of the comment period, the

comments and recommendations

received will be analyzed to determine

the extent to which the collection

should be modified prior to submission

to OMB for review and approval.

Comments submitted in response to this

notice also will be summarize or

included in the FDIC’s requests to OMB

for renewal of this collection. All

comments will become a matter of

public record.

Dated at Washington, D.C., this 26th day of

March 1997.

Federal Deposit Insurance Corporation

Robert E. Feldman,

Deputy Executive Secretary.

[FR Doc. 97–8180 Filed 3–31–97; 8:45 am]

BILLING CODE 6714–01–M

Applications, Legal Fees, and Other

Expenses

AGENCY: Federal Deposit Insurance

Corporation (FDIC).

ACTION: Rescission of statement of

policy.

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 rescinding its

statement of policy concerning

applications, legal fees, and other

expenses (Statement of Policy). The

Statement of Policy addresses

unreasonable or excessive fees, insider

fees, and contingency fee arrangements

incidental to certain applications filed

with the FDIC. The FDIC is rescinding

the Statement of Policy because portions

are now considered outmoded and

similar information is duplicated or

cross-referenced in other Statements of

Policy. Remaining information that is

relevant will be placed, in condensed

form, into Statements of Policy

regarding Applications for Deposit

Insurance, and Bank Merger

Transactions. The rescission does not

reflect any substantive change in the

FDIC’s supervisory attitude toward

excessive or unwarranted fees incident

to an application.

EFFECTIVE DATE: This Statement of

Policy is rescinded effective April 1,

1997.

FOR FURTHER INFORMATION CONTACT:

Jesse G. Snyder, Assistant Director,

(202/ 898–6915), Division of

Supervision; Susan van den Toorn,

Counsel, (202/898–8707), Legal
15480 Federal Register / Vol. 62, No. 62 / Tuesday, April 1, 1997 / Notices

Division, FDIC, 550 17th Street, N.W.,

Washington, DC 20429.

SUPPLEMENTARY INFORMATION: 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 the FDIC, the Office of the

Comptroller of the Currency, the Board

of Governors of the Federal Reserve

System, and the Office of Thrift

Supervision (Federal banking agencies)

to each 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 of the Federal banking agencies to

remove inconsistencies and outmoded

and duplicative requirements from its

regulations and written policies.

As a part of this review, the FDIC has

determined that the Statement of Policy

contains a substantial amount of

information that is outmoded, and

duplicated or cross-referenced

elsewhere. The FDIC’s written policies

can be streamlined by eliminating the

Statement of Policy. The relevant

information contained in the Policy

Statement will be condensed and placed

into Statements of Policy regarding

Applications for Deposit Insurance, and

Bank Merger Transactions.

On September 8, 1980, the Statement

of Policy was adopted by the Board of

the FDIC and was published on

September 15, 1980 (45 FR 61025). The

Statement of Policy addresses

unreasonable or excessive fees, insider

fees, and contingency fee arrangements

incidental to applications filed with the

FDIC. Some of the information

contained in the Statement of Policy is

now also in other Statements of Policy

addressing specific applications and, as

a result, it is no longer necessary to have

a Statement of Policy dealing

specifically with legal fees and other

expenses.

Issues formerly dealt with in the

Statement of Policy have now been

condensed and placed into other

application specific ‘‘Statements of

Policy’’. The following specific

statements are now included in relevant

‘‘Statements of Policy’’ published

concurrently herein.

‘‘The commitment to or payment of

unreasonable or excessive fees and other

expenses incident to an application reflects

adversely upon the management of the

applicant institution. Fees and other

organizational expenses incurred or

committed to should be fully supported.

Expenses for professional or other services

rendered by organizers, present or

prospective board members, major

shareholders or executive officers will

receive special review for any indication of

self-dealing to the detriment of the bank and

its other shareholders. As a matter of

practice, the FDIC expects full disclosure to

all directors and shareholders of any material

arrangement with an insider.

In no case will an FDIC application be

approved where the payment of a fee, in

whole or in part, is contingent upon any act

or forbearance by the FDIC or by any other

federal or state agency or official.’’

The rescission does not reflect any

substantive change in the FDIC’s

supervisory attitude toward excessive,

unwarranted, or otherwise

inappropriate fees incident to an

application, and the relevant issues will

continue to be addressed.

For the above reasons, the Statement

of Policy is hereby rescinded.

By order of the Board of Directors.

Dated at Washington, DC, this 25th day of

March, 1997.

Federal Deposit Insurance Corporation

Robert E. Feldman,

Deputy Executive Secretary.

[FR Doc. 97–8171 Filed 3–31–97; 8:45 am]

BILLING CODE 6714–01–P

Statement of Policy Regarding Liability

of Commonly Controlled Depository

Institutions

AGENCY: Federal Deposit Insurance

Corporation (FDIC).

ACTION: Policy statement.

SUMMARY: The FDIC is revising the

statement of policy which sets forth the

procedures and guidelines the FDIC

uses in assessing liability against

commonly controlled depository

institutions under section 5(e) of the

Federal Deposit Insurance Act. The

revised policy statement provides

guidance based on the FDIC’s

experience in administering the

provisions of section 5(e) of the Act and

clarifies the authority granted to the

FDIC to issue assessments of liability or

grant conditional waivers of liability,

the manner in which the FDIC will

assess the amount of loss incurred by

the FDIC, and the manner in which each

liable institution’s share of that loss will

be determined. The revised policy

statement also addresses the potential

liability of depository institutions

acquired by unaffiliated parties prior to

any occurrence establishing liability

under section 5(e) of the Act.

EFFECTIVE DATE: April 1, 1997.

FOR FURTHER INFORMATION CONTACT:

Cheryl Steffen, Special Situations and

Application Section, Division of

Supervision, (202) 898–8768; Michael J.

Fanaroff, Division of Resolution and

Receiverships, (202) 898–7122; or

Grovetta N. Gardineer, Counsel, Legal

Division, (202) 736–0665, Federal

Deposit Insurance Corporation, 550 17th

Street, NW., Washington, DC 20429.

SUPPLEMENTARY INFORMATION: On May

22, 1990, the Board of Directors of the

FDIC adopted a Statement of Policy

Regarding Liability of Commonly

Controlled Depository Institutions. Such

liability is a consequence of section 5(e)

of the Federal Deposit Insurance Act

(Act), 12 U.S.C. 1815(e), which was

added by the passage of section

206(a)(7) of the Financial Institutions

Reform, Recovery, and Enforcement Act

of 1989. Section 5(e) created liability for

commonly controlled insured

depository institutions for losses

incurred or anticipated by the FDIC in

connection with (i) the default of a

commonly controlled insured

depository institution; or (ii) any

assistance provided by the FDIC to any

commonly controlled insured

depository institution in danger of

default. The purpose of section 5(e) is to

ensure that the assets of healthy

depository institution subsidiaries

within the same holding company

structure, or of a healthy institution

which controls a failing institution, will

be available to the FDIC to help offset

the cost of resolving the failed

subsidiary. While the FDIC seeks to

recover its losses associated with failing

institutions, it also seeks to encourage

the acquisition of troubled institutions

by those capable of rehabilitating them

and to avoid instances in which the

assessment of liability against an

otherwise healthy institution will cause

its failure, thus exposing the FDIC and

the insurance funds to greater loss.

The FDIC has brought a number of

actions since the enactment of section

5(e). While the original statement of

policy provided guidance to the

industry regarding the application of the

statute at the time it was published, the

FDIC had not initiated any actions

under the statute. The revised policy

statement attempts to provide guidance

to the industry based on actual practice

with administering the statute. The

proposed policy statement contains

information regarding the content of

requests for conditional waiver.

Depending on decisions affecting part

303 of the FDIC Rules and Regulations

(Rules), this information may also be

addressed in the revised part 303 of the

FDIC’s Rules regarding applications.

Any changes in part 303 of the FDIC’s

Rules may also necessitate further

revisions to the policy statement.

The policy statement provides for the

issuance of a Notice of Assessment of