Federal Register / Vol. 63, No. 74 / Friday, April 17, 1998 / Notices 19259

5See 126 Cong. Rec. 6900 (1980) (statement of

Sen. Proxmire); 126 Cong. Rec. 6907 (1980)

(statement of Sen. Bumpers).

6 The statutory language contained in section 4(g)

of HOLA was enacted in section 522 of DIDMCA

and was originally codified as section 414 of the

National Housing Act (NHA)(12 U.S.C. 1730g (a)).

The language was later transferred from the NHA

to section 4(g) of HOLA by section 301 of the

Financial Institutions Reform, Recovery and

Enforcement Act of 1989 (FIRREA), Pub. L. No.

101–73, 103 Stat. 183, 282 (1989).

7See, OCC Interpretive Letter No. 670, February

17, 1995, reprinted in [1994–1995 Decisions] Fed.

Banking L. Rep. (CCH) P 83618.

521 of the Depository Institutions

Deregulation and Monetary Control Act

of 1980 (DIDMCA), Pub. L. 96–221, 94

Stat. 132 (1980). Section 27 was

intended to give state-chartered banks

the benefit of section 85 and

purposefully engrafted, at several

points, language from the NBA. 5

Greenwood Trust Co. v. Commonwealth

of Massachusetts, 971 F.2d 818, 826 (1st

Cir.), cert. denied, 506 U.S. 1052 (1993).

Because similar language and

concepts appear in both statutes they

frequently have been cited and

discussed together in court opinions

and construed in pari materia. See e.g.,

Greenwood Trust, 971 F.2d at 827; Hill

v. Chemical Bank, 799 F. Supp. 948, 953

(D. Minn. 1992); Stoorman v.

Greenwood Trust Co., 908 P.2d 133, 135

(Colo.), cert. denied, 116 S.Ct. 2498

(1996); Copeland v. MBNA America

Bank, N.A., 907 P.2d 87, 93 (Colo.), cert.

denied, 116 S.Ct. 2498 (1996); Hunter v.

Greenwood Trust Co., 272 N.J. Super.

526, 532–38, 640 A.2d 855 (N.J. Super.

1994), reinstated, 146 N.J. 65, 679 A.2d

652 (N.J. 1996). The FDIC’s practice also

has been to construe the two provisions

similarly. See FDIC Advisory Opinion

No. 81–3, February 3, 1981, reprinted in

[1988–1989 Transfer Binder] Fed.

Banking L. Rep. (CCH) P 81,006 (statechartered banks have the same ‘‘most

favored lender’’ status under section 27

as national banks have under section 85

of the NBA); FDIC Advisory Opinion

No. 81–7, March 17, 1981, reprinted in

[1988–1989 Transfer Binder] Fed.

Banking L. Rep. (CCH) P 81,008 (statechartered banks have the same right to

export interest rates under section 27 as

national banks have under section 85 of

the NBA).

II. Charges Constituting Interest

While neither section 85 nor section

27 defines what charges constitute

‘‘interest,’’ court decisions have not

limited the scope of the term solely to

a state’s numerical percentage rate, but

have broadly construed the term to

include various other types of credit

charges. See e.g., Smiley v. Citibank

(South Dakota), N.A., 116 S.Ct. 1730,

1734 (1996) (deferring to the Office of

the Comptroller of the Currency’s (OCC)

regulation interpreting ‘‘interest,’’ for

purposes of section 85, as including

payments compensating a creditor for

making a loan, extending a line of

credit, or any default or breach by a

borrower of a condition upon which

credit was extended, but excluding

other types of payments, such as,

payments to reimburse a creditor for

loan processing fees, collateral

insurance, or appraisal fees); Greenwood

Trust, 971 F.2d at 824 (late payment fees

and kindred charges may constitute

‘‘interest’’ under section 27); Fisher v.

First Nat’l Bank of Omaha, 548 F.2d

255, 258–61 (8th Cir. 1977) (cash

advance fees); Watson v. First Union

Nat’l Bank, 837 F. Supp. 146, 150

(D.S.C. 1993) (overlimit fees); Tikkanen

v. Citibank (South Dakota) N.A., 801 F.

Supp. 270, 278–79 (D. Minn. 1992) (late

payment, over the limit fees, and similar

charges); Hill, 799 F. Supp. at 954 (over

the limit fees); Stoorman, 908 P.2d at

136 (late payment fees); Copeland, 907

P.2d at 94 (late payment fees); Sherman

v. Citibank (South Dakota), N.A., 272

N.J. Super. 435, 640 A.2d 325 (N.J.

Super. 1994), reinstated, 146 N.J. 65,

679 A.2d 652 (N.J. 1996) (late payment

fees); Hunter, 272 N.J. Super. at 537 (late

payment fees).

III. Other Agency Interpretations

The OCC has defined ‘‘interest’’ for

purposes of the NBA by interpretive

ruling as follows: ‘‘The term ‘interest’ as

used in 12 U.S.C. 85 includes any

payment compensating a creditor or

prospective creditor for an extension of

credit, making available of a line of

credit, or any default or breach by a

borrower of a condition upon which

credit was extended. It includes, among

other things, the following fees

connected with credit extension or

availability: numerical periodic rates,

late fees, not sufficient funds (NSF) fees,

overlimit fees, annual fees, cash

advance fees, and membership fees. It

does not ordinarily include appraisal

fees, premiums and commissions

attributable to insurance guaranteeing

repayment of any extension of credit,

finders’ fees, fees for document

preparation or notarization, or fees

incurred to obtain credit reports.’’ 12

CFR 7.4001(a) (1997). Virtually the same

definition also has been adopted by the

Office of Thrift Supervision in

connection with section 4(g) of the

HOLA for savings associations. 6 See 12

CFR 560.110 (1997).

Although the OCC’s interpretive

ruling was only recently published in

the Code of Federal Regulations, the

ruling is consistent with the OCC’s

earlier legal interpretation of the term 7

and the United States Supreme Court

has determined that it constitutes a

reasonable interpretation of the statute.

Smiley, 116 S.Ct. at 1736.

Conclusion

Section 27 and section 85 of the NBA

have been and should be, in the Legal

Division’s opinion, construed in pari

materia because section 27 is patterned

after section 85 and the provisions

embody similar terms and concepts.

Congress also clearly intended to

establish competitive equality between

state-chartered lending institutions and

national banks with regard to interest

rates by enacting section 27. In addition,

the OCC and OTS have adopted similar

regulatory definitions of ‘‘interest’’ for

purposes of section 85 of the NBA and

section 4(g) of HOLA, respectively.

Therefore, it is the Legal Division’s

opinion that the term ‘‘interest’’, for

purposes of section 27, includes those

charges that a national bank is

authorized to charge under section 85 of

the NBA. See 12 CFR 7.4001(a) (1997).

Authorized to be published in the Federal

Register by Order of the Board of Directors,

dated at Washington, D.C., this 24th day of

March, 1998.

Federal Deposit Insurance Corporation.

James D. LaPierre,

Deputy Executive Secretary.

[FR Doc. 98–10181 Filed 4–16–98; 8:45 am]

BILLING CODE 6714–01–P

FEDERAL DEPOSIT INSURANCE

CORPORATION

Sunshine Act

Pursuant to the provisions of the

‘‘Government in the Sunshine Act’’ (5

U.S.C. 552b), notice is hereby given that

at 10:07 a.m. on Tuesday, April 14,

1998, the Board of Directors of the

Federal Deposit Insurance Corporation

met in closed session to consider

matters relating to the Corporation’s

corporate and supervisory activities.

In calling the meeting, the Board

determined, on motion of Director

Joseph H. Neely (Appointive), seconded

by Director Julie Williams (Acting

Comptroller of the Currency), concurred

by Director Ellen S. Seidman (Director,

Office of Thrift Supervision), and Acting

Chairman Andrew C. Hove, Jr., that

Corporation business required its

consideration of the matters on less than

seven days’ notice to the public; that no

earlier notice of the meeting was

practicable; that the public interest did
19260 Federal Register / Vol. 63, No. 74 / Friday, April 17, 1998 / Notices

not require consideration of the matters

in a meeting open to public observation;

and that the matters could be

considered in a closed meeting by

authority of subsections (c)(4), (c)(6),

(c)(8), (c)(9)(A)(ii), and (c)(10) of the

‘‘Government in the Sunshine Act’’ (5

U.S.C. 552b(c)(4), (c)(6), (c)(8),

(c)(9)(A)(ii), and (c)(10)).

The meeting was held in the Board

Room of the FDIC Building located at

550 17th Street, N.W., Washington, D.C.

Dated: April 14, 1998.

Federal Deposit Insurance Corporation.

Valerie J. Best,

Assistant Executive Secretary.

[FR Doc. 98–10321 Filed 4–15–98; 12:05 pm]

BILLING CODE 6714–01–M

FEDERAL ELECTION COMMISSION

[Notice 1998–9]

Filing Dates for the New Mexico

Special Election

AGENCY: Federal Election Commission.

ACTION: Notice of filing dates for special

elections.

SUMMARY: New Mexico has scheduled a

special election on June 23, 1998, to fill

the U.S. House seat in the First

Congressional District held by the late

Congressman Steve Schiff.

Committees required to file reports in

connection with the Special General

Election on June 23 should file a 12-day

Pre-General Election Report on June 11

and a 30-day Post-General Report on

July 23, 1998.

FOR FURTHER INFORMATION CONTACT: Ms.

Bobby Werfel, Information Division, 999

E Street, N.W., Washington, DC 20463,

Telephone: (202) 694–1100; Toll Free

(800) 424–9530.

SUPPLEMENTARY INFORMATION: All

principal campaign committees of

candidates who participate in the New

Mexico Special General Election and all

other political committees not filing

monthly which support candidates in

the Special Election shall file a 12-day

Pre-General Report on June 11, 1998,

with coverage dates from the close of

the last report filed, or the day of the

committee’s first activity, whichever is

later, through June 3, 1998; and a PostGeneral Report on July 23, 1998, with

coverage dates from June 4 through July

13, 1998.

CALENDAR OF REPORTING DATES FOR NEW MEXICO SPECIAL ELECTION FOR COMMITTEES INVOLVED IN THE SPECIAL

GENERAL (6/23/98)

Report Close of

books *

Reg./cert.

mailing date ** Filing date

Pre-General .................................................................................................................................. 06/03/98 06/08/98 06/11/98

July Quarterly ............................................................................................................................... (1) (1) (1)

Post-General ................................................................................................................................ 07/13/98 07/23/98 07/23/98

1Waived.

* The period begins with the close of books of the last report filed by the committee. If the committee has filed no previous reports, the period

begins with the date of the committee’s first activity.

** Reports sent by registered or certified mail must be postmarked by the mailing date; otherwise, they must be received by the filing date.

Dated: April 13, 1998.

Joan D. Aikens,

Chairman, Federal Election Commission.

[FR Doc. 98–10198 Filed 4–15–98; 8:45 am]

BILLING CODE 6715–01–M

FEDERAL EMERGENCY

MANAGEMENT AGENCY

[FEMA–1209–DR]

Georgia; Amendment to Notice of a

Major Disaster Declaration

AGENCY: Federal Emergency

Management Agency (FEMA).

ACTION: Notice.

SUMMARY: This notice amends the notice

of a major disaster for the State of

Georgia, (FEMA–1209–DR), dated

March 11, 1998, and related

determinations.

EFFECTIVE DATE: April 6, 1998.

FOR FURTHER INFORMATION CONTACT:

Madge Dale, Response and Recovery

Directorate, Federal Emergency

Management Agency, Washington, DC

20472, (202) 646–3260.

SUPPLEMENTARY INFORMATION: The notice

of a major disaster for the State of

Georgia, is hereby amended to include

the following area among those areas

determined to have been adversely

affected by the catastrophe declared a

major disaster by the President in his

declaration of March 11, 1998:

Gordon County for Individual Assistance

(The following Catalog of Federal Domestic

Assistance Numbers (CFDA) are to be used

for reporting and drawing funds: 83.537,

Community Disaster Loans; 83.538, Cora

Brown Fund Program; 83.539, Crisis

Counseling; 83.540, Disaster Legal Services

Program; 83.541, Disaster Unemployment

Assistance (DUA); 83.542, Fire Suppression

Assistance; 83.543, Individual and Family

Grant (IFG) Program; 83.544, Public

Assistance Grants; 83.545, Disaster Housing

Program; 83.548, Hazard Mitigation Grant

Program)

Lacy E. Suiter,

Executive Associate Director, Response and

Recovery Directorate.

[FR Doc. 98–10214 Filed 4–16–98; 8:45 am]

BILLING CODE 6718–02–P

FEDERAL EMERGENCY

MANAGEMENT AGENCY

[FEMA–1209–DR]

Georgia; Amendment to Notice of a

Major Disaster Declaration

AGENCY: Federal Emergency

Management Agency (FEMA).

ACTION: Notice.

SUMMARY: This notice amends the notice

of a major disaster for the State of

Georgia, (FEMA–1209–DR), dated

March 11, 1998, and related

determinations.

EFFECTIVE DATE: April 2, 1998.

FOR FURTHER INFORMATION CONTACT:

Madge Dale, Response and Recovery

Directorate, Federal Emergency

Management Agency, Washington, DC

20472, (202) 646–3260.

SUPPLEMENTARY INFORMATION: The notice

of a major disaster for the State of

Georgia, is hereby amended to include

the following areas among those areas

determined to have been adversely

affected by the catastrophe declared a

major disaster by the President in his

declaration of March 11, 1998:

Butts, Chatham, Muscogee and Richmond

Counties for Individual Assistance.