Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Proposed Rules 451

normal business days between the hours

of 8:30 a.m. and 5:00 p.m. at the Public

Reference Room, Room 130, Federal

Trade Commission, 6th St. &

Pennsylvania Ave., NW, Washington,

D.C. 20580.

IV. Regulatory Flexibility Act

The provisions of the Regulatory

Flexibility Act relating to an initial

regulatory analysis (5 U.S.C. 603–604)

are not applicable to this proposal

because the Commission believes that

the amendment, if promulgated, will not

have a significant economic impact on

a substantial number of small entities.

The Commission has tentatively reached

this conclusion with respect to the

proposed amendment because the

amendment would impose no

additional obligations, penalties or

costs. The amendment simply would

allow covered companies to use a new

generic name for a new fiber that may

not appropriately fit within current

generic names and definitions. The

amendment would impose no

additional labeling requirements.

To ensure that no substantial

economic impact is being overlooked,

however, the Commission requests

public comment on the effect of the

proposed amendment on costs, profits,

and competitiveness of, and

employment in, small entities. After

receiving public comment, the

Commission will decide whether

preparation of a final regulatory

flexibility analysis is warranted.

Accordingly, based on available

information, the Commission certifies,

pursuant to the Regulatory Flexibility

Act (5 U.S.C. 605(b)), that the proposed

amendment, if promulgated, would not

have a significant economic impact on

a substantial number of small entities.

V. Paperwork Reduction Act

This proposed amendment does not

constitute a ‘‘collection of information’’

under the Paperwork Reduction Act of

1995 (Pub. L. 104–13, 109 Stat. 163) and

its implementing regulations. (5 CFR

1320 et seq.) The collection of

information imposed by the procedures

for establishing generic names (16 CFR

303.8) has been submitted to OMB and

has been assigned control number 3084–

0101.

List of Subjects in 16 CFR Part 303

Labeling, Textile, Trade practices.

VI. Proposed Amendments

Accordingly, the Commission

proposed that 16 CFR Part 303 be

amended as follows:

PART 303—RULES AND

REGULATIONS UNDER THE TEXTILE

FIBER PRODUCTS IDENTIFICATION

ACT

1. The authority citation for part 303

continues to read as follows:

Authority: 15 U.S.C. 70e(c) et seq.

2. It is proposed that a new paragraph

(w) be added to § 303.7, to read as

follows:

§ 303.7 Generic names and definitions for

manufactured fibers.

* * * * *

(w) Melamine. A manufactured fiber

in which the fiber-forming substance is

a synthetic polymer composed of at

least 50% by weight of a cross-linked

melamine polymer.

By direction of the Commission.

Benjamin I. Berman,

Acting Secretary.

[FR Doc. 98–100 Filed 2–5–98; 8:45 am]

BILLING CODE 6750–01–M

SECURITIES AND EXCHANGE

COMMISSION

17 CFR Chapter II

[Release Nos. 33–7491, 34–39496, 35–26806,

39–2360, IC–22978, IA–1690; File No. S7–

34–97]

List of Rules To Be Reviewed Pursuant

to the Regulatory Flexibility Act

AGENCY: Securities and Exchange

Commission.

ACTION: Publication of list of rules

scheduled for review.

SUMMARY: The Securities and Exchange

Commission is today publishing a list of

rules to be reviewed pursuant to Section

610 of the Regulatory Flexibility Act.

The list is published to provide the

public with notice that these rules are

scheduled for review by the agency and

to invite public comment on them.

DATES: Public comments are due by

January 31, 1998.

ADDRESSES: Persons wishing to submit

written comments should file three

copies with Jonathan G. Katz, Secretary,

Securities and Exchange Commission,

450 Fifth Street, N.W., Room 6184, Stop

6–9, Washington, D.C. 20549. All

submissions should refer to File No. S7–

34–97, and will be available for public

inspection and copying at the

Commission’s Public Reference Room,

Room 1026, at the same address.

FOR FURTHER INFORMATION CONTACT:

Anne H. Sullivan, Office of the General

Counsel, Securities and Exchange

Commission 202–942–0954.

SUPPLEMENTARY INFORMATION: The

Regulatory Flexibility Act (‘‘RFA’’)

codified at 5 U.S.C. 600–611 requires

agencies to review rules which have a

significant economic impact upon a

substantial number of small entities

every ten years. The purpose of the

review is ‘‘to determine whether such

rules should be continued without

change, or should be amended or

rescinded * * * to minimize any

significant economic impact of the rules

upon a substantial number of such small

entities’’ (5 U.S.C. 610(a)).

The RFA sets forth specific

considerations that must be addressed

in the review of each rule:

• the continued need for the rule;

• the nature of complaints or

comments received concerning the rule

from the public;

• the complexity of the rule;

• the extent to which the rule

overlaps, duplicates or conflicts with

other Federal rules, and, to the extent

feasible, with State and local

governmental rules; and

• the length of time since the rule has

been evaluated or the degree to which

technology, economic conditions, or

other factors have changed in the area

affected by the rule (5 U.S.C. 610(c)).

The Securities and Exchange

Commission, as a matter of policy,

reviews all rules which it publishes

notice and comment for compliance

with the RFA. Pursuant to the RFA, the

rules and forms listed below are

scheduled for review by staff of the

Commission during the next twelve

months. The rules are grouped

according to which Division or Office of

the Commission will review each rule:

Rule To Be Reviewed by the Office of

the Chief Accountant

Title: Article 10 of Regulation S–X

(Interim Financial Statements).

Citation: 17 CFR 210.10.

Authority: 15 U.S.C. 77f, 77g, 77s(a),

77aa(25), 77a(26), 78l, 78m, 78o(d),

78w(a), 79e(b), 79n, 79t(a), 80a–8, and

80a–29.

Rule To Be Reviewed by the Division of

Corporation Finance

Title: Rule 701 (Exemption for offers

and sales of securities pursuant to

certain compensatory benefit plans and

contracts relating to compensation).

Citation: 17 CFR 230.701.

Authority: 15 U.S.C. 77a et seq.

Rule To Be Reviewed by the Division of

Market Regulation

Title: Rule 10b–21(T) (Short sales in

connection with a public offering).

Citation: 17 CFR 240.10b–21(T).

Authority: 15 U.S.C. 77c, 77d, 77g,

77j, 77s, 77eee, 77ggg, 77nnn, 77sss,
452 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Proposed Rules

77tt, 78c, 78d, 78i, 78l, 78m, 78n, 78o,

78p, 78s, 78w, 78x, 78l(d), 79q, 80e–20,

80e–23, 80e–29, 80b–3, 80b–4 and 80b–

11.

Rules and Forms to be Reviewed by the

Division of Investment Management

Title: Rule 482 (Advertising by an

investment company as satisfying

requirements of section 10).

Citation: 17 CFR 230.482.

Authority: 15 U.S.C. 77j(b) and 77s(a).

Title: Rule 601 (Definitions of terms

used in §§ 230.601 to 230.610a).

Citation: 17 CFR 230.601.

Authority: 15 U.S.C. 77c(c) and 77s(a).

Title: Rule 602 (Securities exempted).

Citation: 17 CFR 230.602.

Authority: 15 U.S.C. 77c(c) and 77s(a).

Title: Rule 603 (Amount of securities

exempted).

Citation: 17 CFR 230.603.

Authority: 15 U.S.C. 77c(c) and 77s(a).

Title: Rule 604 (Filing of notification

on Form 1–E).

Citation: 17 CFR 230.604.

Authority: 15 U.S.C. 77c(c) and 77s(a).

Title: Rule 605 (Filing and use of the

offering circular).

Citation: 17 CFR 230.605.

Authority: 15 U.S.C. 77c(c) and 77s(a).

Title: Rule 606 (Offering not in excess

of $100,000).

Citation: 17 CFR 230.606.

Authority: 15 U.S.C. 77c(c) and 77s(a).

Title: Rule 607 (Sales material to be

filed).

Citation: 17 CFR 230.607.

Authority: 15 U.S.C. 77c(c) and 77s(a).

Title: Rule 608 (Prohibition of certain

statements).

Citation: 17 CFR 230.608.

Authority: 15 U.S.C. 77c(c) and 77s(a).

Title: Rule 609 (Reports of sales

hereunder).

Citation: 17 CFR 230.609.

Authority: 15 U.S.C. 77c(c) and 77s(a).

Title: Rule 610 (Suspension of

exemption).

Citation: 17 CFR 230.610.

Authority: 15 U.S.C. 77c(c) and 77s(a).

Title: Rule 610a (Schedule A:

Contents of offering circular for small

business investment companies;

Schedule B: Contents of offering circular

for business development companies).

Citation: 17 CFR 230.610a.

Authority: 15 U.S.C. 77c(c) and 77s(a).

Title: Form 1–E (Notification under

Regulation E).

Citation: 17 CFR 239.200.

Authority: 15 U.S.C. 77c(b) and 77c(c)

and 15 U.S.C. 80a–37.

Title: Form 2–E (Report of sales

pursuant to rule 609 of Regulation E).

Citation: 17 CFR 239.201.

Authority: 15 U.S.C. 77c(c) and 77s(a).

Title: Rule 34b–1 (Sales literature

deemed to be misleading).

Citation: 17 CFR 270.34b–1.

Authority: 15 U.S.C. 80a–24(b).

Title: Rule 0–5 (Procedure with

respect to applications and other

matters) Formerly designated rule N–5;

renamed rule 0–5 on August 29, 1973.

Citation: 17 CFR 270.0–5.

Authority: 15 U.S.C. 80a–6(c) and

80a–37(a).

Title: Rule 2a41–1 (Valuation of

standby commitments by registered

investment companies).

Citation: 17 CFR 270.2a41–1.

Authority: 15 U.S.C. 80a–6(c), 80a–

22(c), and 80a–37(a).

Title: Form N–23C–1 (Statement by

registered closed-end investment

company with respect to purchases of

its own securities pursuant to Rule 23c–

1 during the last calendar month).

Citation: 17 CFR 274.201.

Authority: 15 U.S.C. 80a–23(c)(3) and

80a–37(a).

Title: Form N–18F–1 (Notification of

election pursuant to Rule 18f–1 under

the Investment Company Act).

Citation: 17 CFR 274.51.

Authority: 15 U.S.C. 80a–6(c) and

80a–37(a).

Title: Form N–17D–1 (Report filed by

small business investment company

(SBIC) registered under the Investment

Company Act of 1940 and an affiliated

bank, with respect to investments by the

SBIC and the bank, submitted pursuant

to paragraph (d)(3) of § 270.17d–1 of this

chapter).

Citation: 17 CFR 274.200.

Authority: 15 U.S.C. 80a–17(d) and

80a–37(a).

Title: Form N–27D–1 (Accounting of

segregated trust account).

Citation: 17 CFR 274.127d–1.

Authority: 15 U.S.C. 80a–27(d), 80a–

27(f), 80a–38(a) and 15 U.S.C. 6(c).

Title: U–3A–2 (Annual reports

pursuant to Rule 2 for exempt holding

companies which are intrastate or

predominantly operating companies).

Citation: 17 CFR 259.402.

Authority: 15 U.S.C. 79e, 79f, 79g, 79j,

79l, 79m, 79n and 79t.

Title: U–5–S (Annual reports filed

under section 5(c) of the Act).

Citation: 17 CFR 259.5s.

Authority: 15 U.S.C. 79e, 79f, 79g, 79j,

79l, 79m, 79n and 79t.

Title: U–5–A (Notification or

registration filed under section 5(a) of

the Act).

Citation: 17 CFR 259.5a.

Authority: 15 U.S.C. 79e, 79f, 79g, 79j,

79l, 79m, 79n and 79t.

Title: U–5–B (Registration statement

filed under section 5(b) of the Act).

Citation: 17 CFR 259.5b.

Authority: 15 U.S.C. 79e, 79f, 79g, 79j,

79l, 79m, 79n and 79t.

Title: U–1 (Application or declaration

under the Public Utility Holding

Company Act of 1935).

Citation: 17 CFR 259.101.

Authority: 15 U.S.C. 79f and 79g.

Title: Rule 1 (Registration).

Citation: 17 CFR 250.1.

Authority: 15 U.S.C. 79c, 79f(b),

79i(c)(3) and 79t.

Title: Rule 2 (Exemption of holding

companies which are intrastate or

predominantly operating companies).

Citation: 17 CFR 250.2.

Authority: 15 U.S.C. 79i.

Title: Rule 3 (Exemption of certain

banks).

Citation: 17 CFR 250.3.

Authority: 15 U.S.C. 79i.

Title: Rule 4 (Exemption of certain

brokers, dealers and underwriters).

Citation: 17 CFR 250.4.

Authority: 15 U.S.C. 79i.

Title: Rule 5 (Exemption of certain

foreign holding companies).

Citation: 17 CFR 250.5

Authority: 15 U.S.C. 79c.

Title: Rule 6 (Termination of

exemptions).

Citation: 17 CFR 250.6.

Authority: 15 U.S.C. 79c.

Title: Rule 8 (Exemption of

subsidiaries subject to jurisdiction of

Interstate Commerce Commission).

Citation: 17 CFR 250.8.

Authority: 15 U.S.C. 79i.

Title: Rule 10 (Effect of certain

exemptions).

Citation: 17 CFR 250.10.

Authority: 15 U.S.C. 79b, 79d, 79e and

79c.

Title: Rule 11 (Certain acquisitions by

affiliates exempted from section 9(a)(2)).

Citation: 17 CFR 250.11.

Authority: 15 U.S.C. 79d, 79e, 79i and

77b.

Title: Rule 12 (Exemption of certain

public utility companies from the

definition of subsidiary companies of

holding companies).

Citation: 17 CFR 250.12.

Authority: 15 U.S.C. 79i.

Title: Rule 23 (Procedure applicable to

certain applications and declarations).

Citation: 17 CFR 250.23.

Authority: 15 U.S.C. 79f, 79i, 79j, 79g

and 79l.

Title: Rule 24 (Terms and conditions

applicable to declaration and orders

granting applications).

Citation: 17 CFR 250.24.

Authority: 15 U.S.C. 79f and 79i.

Title: Rule 25 (Answers).

Citation: 17 CFR 250.25.
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Proposed Rules 453

Authority: 15 U.S.C. 79t.

Title: Rule 26 (Financial statement

and recordkeeping requirements for

registered holding companies and

subsidiaries).

Citation: 17 CFR 250.26.

Authority: 15 U.S.C. 79e, 79f, 79j, 79l,

79m, 79n, 79q and 79t.

Title: Rule 27 (Classification accounts

prescribed for utility companies not

already subject thereto).

Citation: 17 CFR 250.27.

Authority: 15 U.S.C. 79e, 79f, 79j, 79l,

79m, 79n, 79q and 79t.

Title: Rule 28 (Inconsistent financial

statements).

Citation: 17 CFR 250.28.

Authority: 15 U.S.C. 79n.

Title: Rule 47 (Exemption of public

utility subsidiaries as to certain

securities issued to the Rural

Electrification Administration).

Citation: 17 CFR 250.47.

Authority: 15 U.S.C. 79m.

Title: Rule 48 (Certain exemptions in

connection with appliance sales and

loans to officers or employees).

Citation: 17 CFR 250.48.

Authority: 15 U.S.C. 79i, 79f, 79e(b),

79i(c) and 79m.

Title: Rule 49 (Certain exemptions

granted to non-utility subsidiaries).

Citation: 17 CFR 250.49.

Authority: 15 U.S.C. 79f, 79b and 79i.

Title: Rule 51 (Acquisitions pursuant

to preliminary agreements and

invitation for tenders).

Citation: 17 CFR 250.51.

Authority: 15 U.S.C. 79i.

Title: Rule 60 (Meaning of word

‘‘authorization’’).

Citation: 17 CFR 250.60.

Authority: 15 U.S.C. 79k and 791.

Title: Rule 61 (Solicitations other than

in connection with a reorganization or

transaction which is the subject of an

application or declaration).

Citation: 17 CFR 250.61.

Authority: 15 U.S.C. 78n.

Title: Rule 62 (Solicitations in

connection with reorganization of

transaction which is the subject of an

application or declaration).

Citation: 17 CFR 250.62.

Authority: 15 U.S.C. 79b.

Title: Rule 70 (Exemptions from

section 17(c) of the Public Utility

Holding Company Act).

Citation: 17 CFR 250.70.

Authority: 15 U.S.C. 79q(c), 79t(a),

79f(c), 79g, 79d and 79t.

Title: Rule 0–2 (Consent to service of

process to be furnished by non-resident

investment advisers and by non-resident

investment general partners or

managing agents of investment

advisers).

Citation: 17 CFR 275.0–2.

Authority: 15 U.S.C. 80b–11.

Title: Form 4–R (Irrevocable

appointment of agent for service of

process, pleadings and other papers by

individual non-resident investment

adviser).

Citation: 17 CFR 279.4.

Authority: 15 U.S.C. 80b–11.

Title: Form 5–R (Irrevocable

appointment of agent for service of

process, pleadings and other papers by

corporation non-resident investment

adviser).

Citation: 17 CFR 279.5.

Authority: 15 U.S.C. 80b–11.

Title: Form 6–R (Irrevocable

appointment of agent for service of

process, pleadings and other papers by

partnership non-resident investment

adviser).

Citation: 17 CFR 279.6.

Authority: 15 U.S.C. 80b–11.

Title: Form 7–R (Irrevocable

appointment of agent for service of

process, pleadings and other papers by

non-resident general partner of an

investment adviser).

Citation 17 CFR 279.7.

Authority: 15 U.S.C. 80b–11.

The Commission invites public

comment on both the list and the rules

to be reviewed.

Dated: December 29, 1997.

By the Commission.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–157 Filed 1–5–98; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG–121755–97]

RIN 1545–AV86

Reorganizations; Nonqualified

Preferred Stock

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking

by cross-reference to temporary

regulations and notice of public hearing.

SUMMARY: In the Rules and Regulations

section of this issue of the Federal

Register, the IRS and Treasury

Department are issuing a temporary

regulation under section 356(e) of the

Internal Revenue Code (Code) relating to

the receipt of nonqualified preferred

stock in certain exchanges. The

temporary regulation provides guidance

on when nonqualified preferred stock

(as defined in section 351(g)(2)) will not

be treated as stock or securities for

purposes of sections 354, 355, and 356.

The guidance also addresses the

treatment of the receipt of a right to

acquire nonqualified preferred stock.

The temporary regulation provides that

in certain circumstances the terms stock

and securities will not include

nonqualified preferred stock, or a right

to acquire such stock, when received in

exchange for stock or rights to acquire

stock. The text of the temporary

regulation also serves as the text of this

proposed regulation. This document

also provides notice of a public hearing

on this proposed regulation.

DATES: Written comments must be

received by April 6, 1998. Requests to

appear and outlines of topics to be

discussed at the public hearing

scheduled for May 5, 1998, at 10 a.m.

must be received by April 14, 1998.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R [REG–121755–97],

room 5226, Internal Revenue Service,

POB 7604, Ben Franklin Station,

Washington, DC 20044. Submissions

may be hand delivered between the

hours of 8 a.m. and 5 p.m. to:

CC:DOM:CORP:R [REG–121755–97],

Courier’s Desk, Internal Revenue

Service, 1111 Constitution Avenue NW,

Washington, DC. Alternatively,

taxapayers may submit comments

electronically via the Internet by

selecting the ‘‘Tax Regs’’ option on the

IRS Home Page or by submitting

comments directly to the IRS Internet

site at: http://www.irs.ustreas.gov/prod/

taxlregs/comments.html. The public

hearing will be held in room 2615,

Internal Revenue Building, 1111

Constitution Avenue NW, Washington,

DC 20224.

FOR FURTHER INFORMATION CONTACT:

Concerning the proposed regulation,

Michael J. Danbury, (202) 622–7750;

concerning submissions and the public

hearing, LaNita Van Dyke, (202) 622–

7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

A temporary regulation in the Rules

and Regulations section of this issue of

the Federal Register amends the Income

Tax Regulations (26 CFR part 1) relating

to section 356 by adding § 1.356–6T.

The text of that temporary regulation

also serves as the text of this proposed

regulation. The preamble to the

temporary regulation explains the

reason for the addition.