10172 Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Rules and Regulations 

Aerospace Defense Command Region 

(CONR).’’ The FAA is taking this action 

in response to a request from the United 

States Air Force (USAF), supported by 

United States Customs and Border 

Protection (legacy United States 

Customs Service), to reflect an 

administrative change of responsibility 

for the restricted area. There are no 

changes to the boundaries; designated 

altitudes; time of designation; or 

activities conducted within the affected 

restricted area. 

DATES: Effective Date: 0901 UTC, May 7, 

2009. 

FOR FURTHER INFORMATION CONTACT: 

Colby Abbott, Airspace and Rules 

Group, Office of System Operations 

Airspace and AIM, Federal Aviation 

Administration, 800 Independence 

Avenue, SW., Washington, DC 20591; 

telephone: (202) 267–8783. 

SUPPLEMENTARY INFORMATION: 

History 

On December 10, 2008, the USAF 

requested that the FAA change the using 

agency for R–6320 from, ‘‘United States 

Customs Service’’ to ‘‘Continental North 

American Aerospace Defense Command 

Region (CONR).’’ The USAF request was 

based on their interest in retaining the 

restricted area and expected funding in 

the future to purchase and house 

another aerostat system within that 

restricted airspace. United States 

Customs and Border Protection (legacy 

United States Customs Service) 

confirmed they have no interest in 

maintaining operational control over R– 

6320 and agreed to relinquish the using 

agency responsibility to CONR. 

Coordination with Houston Air Route 

Traffic Control Center was effected prior 

to this using agency change request 

being submitted by the USAF. 

Section 73.63 of 14 CFR Part 73 was 

republished in FAA Order 7400.8R, 

dated February 5, 2009. 

The Rule 

This action amends Title 14 Code of 

Federal Regulations (14 CFR) part 73 by 

revising the using agency listed for R– 

6320, Matagorda, TX; transferring using 

agency responsibility for R–6320 from 

‘‘United States Customs Service’’ to 

‘‘Continental North American 

Aerospace Defense Command Region 

(CONR).’’ This is an administrative 

change and does not affect the 

boundaries, designated altitudes, or 

activities conducted within the 

restricted area; therefore, notice and 

public procedures under 5 U.S.C. 553(b) 

are unnecessary. 

The FAA has determined that this 

action only involves an established 

body of technical regulations for which 

frequent and routine amendments are 

necessary to keep them operationally 

current. Therefore, this regulation: (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) 

does not warrant preparation of a 

regulatory evaluation as the anticipated 

impact is so minimal. Since this is a 

routine matter that will only affect air 

traffic procedures and air navigation, it 

is certified that this rule, when 

promulgated, will not have a significant 

economic impact on a substantial 

number of small entities under the 

criteria of the Regulatory Flexibility Act. 

Environmental Review 

The FAA has determined that this 

action qualifies for categorical exclusion 

under the National Environmental 

Policy Act in accordance with 311d., 

FAA Order 1050.1E, Environmental 

Impacts: Policies and Procedures. This 

airspace action is not expected to cause 

any potentially significant 

environmental impacts, and no 

extraordinary circumstances exist that 

warrant preparation of an 

environmental assessment. 

List of Subjects in 14 CFR Part 73 

Airspace, Prohibited areas, Restricted 

areas. 

Adoption of the Amendment 

■ In consideration of the foregoing, the 

Federal Aviation Administration 

amends 14 CFR part 73, as follows: 

PART 73—SPECIAL USE AIRSPACE 

■ 1. The authority citation for part 73 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40103, 40113, 

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– 

1963 Comp., p. 389. 

§ 73.63 [Amended] 

■ 2. § 73.63 is amended as follows: 

* * * * * 

R–6320 Matagorda, TX [Amended] 

By removing the words ‘‘Using 

agency. United States Customs Service’’ 

and inserting the words ‘‘Using agency. 

Continental North American Aerospace 

Defense Command Region (CONR).’’ 

* * * * * 

Issued in Washington, DC, March 2, 2009. 

Edith V. Parish, 

Manager, Airspace and Rules Group. 

[FR Doc. E9–4948 Filed 3–9–09; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Part 3500 

[Docket No. FR–5180–F–05] 

RIN 2502–AI61 

Real Estate Settlement Procedures Act 

(RESPA): Rule To Simplify and 

Improve the Process of Obtaining 

Mortgages and Reduce Consumer 

Settlement Costs; Further Deferred 

Applicability Date for the Revised 

Definition of ‘‘Required Use’’ and 

Solicitation of Public Comment on 

Withdrawal of Required Use Provision 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, HUD. 

ACTION: Final rule; request for 

comments. 

SUMMARY: This final rule delays the 

effective date of the definition of 

‘‘required use’’ as revised by HUD’s 

November 17, 2008, final rule amending 

its RESPA regulations, until July 16, 

2009. The November 17, 2008, final rule 

revised HUD’s RESPA regulations to 

further the purposes of RESPA by 

requiring more timely and effective 

disclosures related to mortgage 

settlement costs for federally related 

mortgage loans to consumers. The final 

rule revised the existing definition of 

‘‘required use,’’ which revision was 

directed to enhancing protections for 

consumers from certain practices 

conducted by affiliated business 

arrangements. The revised definition of 

‘‘required use’’ would have become 

effective on January 16, 2009. However, 

on January 15, 2009, HUD published a 

final rule that delayed the effective date 

of the definition of ‘‘required use’’ from 

January 16, 2009, to April 16, 2009, due 

to litigation by the National Association 

of Home Builders, et al., around the 

time of issuance of the final rule. For 

this same reason, HUD is further 

delaying the effective date of required 

use until July 16, 2009. 

In this rule, HUD also solicits 

comment on withdrawing the revised 

definition of ‘‘required use’’ from the 

November 17, 2008, final rule. HUD will 

consider these comments before 

pursuing new rulemaking process on 

this definition. Since promulgating the 

rule on November 17, 2008, HUD has 

determined to reevaluate the scope and 

operation of the required use provision. 

New rulemaking would give HUD the 

opportunity to present for public 

consideration a new proposal based 

upon HUD’s reevaluation of the 

required use provision to help ensure 

better consumer protections. 

Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Rules and Regulations 10173 

DATES: The amendment to § 3500.1 is 

effective March 10, 2009. The effective 

date of the definition of ‘‘required use’’ 

in § 3500.2, as revised by HUD’s final 

rule published on November 17, 2008, 

at 73 FR 68204, and further delayed by 

final rule published on January 15, 

2009, at 74 FR 2369, is further delayed 

to July 16, 2009. 

Comment Due Date: April 9, 2009. 

ADDRESSES: Interested persons are 

invited to submit comments regarding 

this rule to the Regulations Division, 

Office of General Counsel, 451 7th 

Street, SW., Room 10276, Department of 

Housing and Urban Development, 

Washington, DC 20410–0500. 

Communications must refer to the above 

docket number and title. There are two 

methods for submitting public 

comments. All submissions must refer 

to the above docket number and title. 

1. Submission of Comments by Mail. 

Comments may be submitted by mail to 

the Regulations Division, Office of 

General Counsel, Department of 

Housing and Urban Development, 451 

7th Street, SW., Room 10276, 

Washington, DC 20410–0500. 

2. Electronic Submission of 

Comments. Interested persons may 

submit comments electronically through 

the Federal eRulemaking Portal at 

www.regulations.gov. HUD strongly 

encourages commenters to submit 

comments electronically. Electronic 

submission of comments allows the 

commenter maximum time to prepare 

and submit a comment, ensures timely 

receipt by HUD, and enables HUD to 

make them immediately available to the 

public. Comments submitted 

electronically through the http:// 

www.regulations.gov Web site can be 

viewed by other commenters and 

interested members of the public. 

Commenters should follow the 

instructions provided on that site to 

submit comments electronically. 

Note: To receive consideration as public 

comments, comments must be submitted 

through one of the two methods specified 

above. Again, all submissions must refer to 

the docket number and title of the rule. 

No Facsimile Comments. Facsimile 

(FAX) comments are not acceptable. 

Public Inspection of Public 

Comments. All properly submitted 

comments and communications 

submitted to HUD will be available for 

public inspection and copying between 

8 a.m. and 5 p.m. weekdays at the above 

address. Due to security measures at the 

HUD Headquarters building, an advance 

appointment to review the public 

comments must be scheduled by calling 

the Regulations Division at 202–708– 

3055 (this is not a toll-free number). 

Individuals with speech or hearing 

impairments may access this number 

through TTY by calling the Federal 

Information Relay Service at 800–877– 

8339. Copies of all comments submitted 

are available for inspection and 

downloading at www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: Ivy 

Jackson, Director, or Barton Shapiro, 

Deputy Director, Office of RESPA and 

Interstate Land Sales, Office of Housing, 

Department of Housing and Urban 

Development, 451 7th Street, SW., 

Room 9158, Washington, DC 20410– 

8000; telephone 202–708–0502 (this is 

not a toll-free telephone number). 

Persons with hearing or speech 

impairments may access this number 

through TTY by calling the toll-free 

Federal Information Relay Service at 

800–877–8339. 

SUPPLEMENTARY INFORMATION: On 

November 17, 2008 (73 FR 68204), HUD 

published a final rule amending its 

regulations to further the purposes of 

the Real Estate Settlement Procedures 

Act of 1974 (12 U.S.C. 2601–2617) by 

requiring more timely and effective 

disclosures related to mortgage 

settlement costs for federally related 

mortgage loans to consumers. The final 

rule followed publication of a March 14, 

2008, proposed rule (73 FR 14030) and 

made changes in response to public 

comment and in further consideration of 

certain issues by HUD. Additional 

information regarding the regulatory 

amendments, and the changes made by 

HUD at the final rule stage, is provided 

in the preamble to the November 17, 

2008, final rule. 

The November 17, 2008, final rule 

became effective on January 16, 2009, 

but provided a longer transition period 

for the majority of the new 

requirements. Other provisions, 

however, were scheduled to take effect 

on January 16, 2009. Among regulatory 

changes identified as being applicable 

upon the effective date of January 16, 

2009, is the revised definition of the 

term ‘‘required use.’’ The revision of 

that definition became the subject of 

litigation, following issuance of the final 

rule. (National Association of Home 

Builders, et al. v. Steve Preston, et al., 

Civ. Action No. 08–CV–1324, United 

States District Court for the Eastern 

District of Virginia, Alexandria 

Division.) 

For reasons related to the proper 

litigation of this case, HUD issued a 

final rule on January 15, 2009 (74 FR 

2369) that deferred the effective date of 

the revised definition of ‘‘required use’’ 

for an additional 90 days until April 16, 

2009. The litigation continues and HUD 

finds again that for reasons including 

the pending litigation, the applicability 

date of the definition of ‘‘required use’’ 

should be further delayed until July 16, 

2009. The effective and implementation 

dates of the remaining provisions of the 

November 17, 2008, final rule are not 

affected by the action taken in this rule. 

The further delay is consistent with 

the direction to federal agencies, 

provided in a January 21, 2009, 

memorandum from the Director of the 

Office of Management and Budget to 

consider extending the effective date for 

rules published under the prior 

Administration, which have not yet 

taken effect. Additionally, the 

memorandum notes that the 

Administrative Procedure Act provides 

for agencies to postpone the effective 

date of an agency action pending 

judicial review (see 5 U.S.C. 705). 

Accordingly, this further extension is 

consistent with law and the new 

Administration’s procedural directions. 

With the further delay of the effective 

date, HUD seeks to use this time to 

solicit public comment on withdrawing 

the ‘‘required use’’ definition, as 

promulgated in the November 17, 2008, 

final rule and commencing new 

rulemaking on this definition, which 

would similarly strive to ensure 

consumers are protected from certain 

practices conducted by affiliated 

business arrangements. Since issuance 

of the final rule, HUD has determined to 

reevaluate the scope and operation of 

the required use provision. This issue is 

one of importance in the RESPA 

context, and HUD, regulated industries, 

consumers and the public generally 

would be better served by new 

rulemaking. New rulemaking would 

offer HUD with the opportunity to 

present a new proposal based upon 

HUD’s reevaluation of the required use 

provision. New rulemaking would 

provide consumers, industry, and other 

interested members of the public with 

the opportunity to comment on a 

definition of ‘‘required use,’’ developed 

as part of HUD’s evaluation process, and 

for HUD to make informed decisions 

based on this new commentary. HUD 

therefore specifically seeks public 

comment on withdrawing the required 

use provision from the November 17, 

2008, final rule and commencing new 

rulemaking on this subject. 

In general, HUD publishes a rule for 

public comment before issuing a rule for 

effect, in accordance with its own 

regulations on rulemaking at 24 CFR 

part 10. Part 10, however, does provide 

in § 10.1 for exceptions from that 

general rule where HUD finds good 

cause to omit advance notice and public 

participation. The Department finds that 

good cause exists to publish this final 

10174 Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Rules and Regulations 

rule for effect without first soliciting 

public comment as requiring public 

comment before extending the effective 

date would be contrary to the interest of 

justice and the public interest. 

List of Subjects in 24 CFR Part 3500 

Consumer protection, Condominiums, 

Housing, Mortgagees, Mortgage 

servicing, Reporting and recordkeeping 

requirements. 

■ Accordingly, 24 CFR part 3500 is 

corrected by making the following 

amendments: 

PART 3500—REAL ESTATE 

SETTLEMENT PROCEDURES ACT 

■ 1. The authority citation for part 3500 

continues to read as follows: 

Authority: 12 U.S.C. 2601 et seq: 42 U.S.C. 

3535(d). 

■ 2. Section 3500.1(b)(1) is revised to 

read as follows: 

§ 3500.1 Designation and applicability. 

* * * * * 

(b) * * * 

(1) The definition of Required use in 

§ 3500.2 is applicable commencing on 

July 16, 2009; §§ 3500.8(b), 3500.17, 

3500.21, 3500.22 and 3500.23, and 

Appendices E and MS–1 are applicable 

commencing January 16, 2009. 

* * * * * 

Dated: March 6, 2009. 

Brian D. Montgomery, 

Assistant Secretary for Housing—Federal 

Housing Commissioner. 

[FR Doc. E9–5221 Filed 3–9–09; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9444] 

RIN 1545–BI42 

Application of Section 367 to a Section 

351 Exchange Resulting From a 

Transaction Described in Section 

304(a)(1); Treatment of Gain 

Recognized Under Section 301(c)(3) for 

Purposes of Section 1248; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correction to final and 

temporary regulations. 

SUMMARY: This document contains a 

correction to final and temporary 

regulations (TD 9444) that were 

published in the Federal Register on 

Wednesday, February 11, 2009, under 

sections 367(a), 367(b) and 1248(a) of 

the Internal Revenue Code. The final 

regulations under section 367 revise 

existing final regulations and add crossreferences. The final regulations under 

section 1248 update an effective/ 

applicability date. The temporary 

regulations under section 367(a) and (b) 

revise existing final regulations 

concerning transfers of stock to a foreign 

corporation that are described in section 

351 by reason of section 304(a)(1). The 

temporary regulations under section 

1248(a) provide that, for purposes of 

section 1248(a), gain recognized by a 

shareholder under section 301(c)(3) in 

connection with the receipt of a 

distribution of property from a foreign 

corporation with respect to its stock 

shall be treated as gain from the sale or 

exchange of the stock of such foreign 

corporation. The temporary regulations 

affect certain persons that transfer stock 

to a foreign corporation in a transaction 

described in section 304(a)(1), or certain 

persons that recognize gain under 

section 301(c)(3) in connection with the 

receipt of a distribution of property from 

a foreign corporation with respect to its 

stock. 

DATES: This correction is effective 

March 10, 2009, and is applicable on 

February 11, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Sean W. Mullaney, (202) 622–3860 (not 

a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

The final and temporary regulations 

that are the subject of this document are 

under sections 367 and 1248 of the 

Internal Revenue Code. 

Need for Correction 

As published Wednesday, February 

11, 2009 (74 FR 6824), final and 

temporary regulations (TD 9444) 

contains an error that may prove to be 

misleading and is in need of 

clarification. 

Correction of Publication 

Accordingly, the publication of the 

final and temporary regulations (TD 

9444), which was the subject of FR Doc. 

E9–2835, is corrected as follows: 

On page 6825, column 2, in the 

preamble, under the paragraph heading 

‘‘A. Modified Application of Section 

367(a) to Deemed Section 351 

Exchanges’’, first paragraph of the 

column, fourth line from the bottom of 

the paragraph, the language ‘‘recognized 

$100x gain under section’’ is corrected 

to read ‘‘recognize $100x gain under 

section’’. 

Guy Traynor, 

Acting Chief, Publications and Regulations 

Branch, Legal Processing Division, Associate 

Chief Counsel, (Procedure and 

Administration). 

[FR Doc. E9–4997 Filed 3–9–09; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9444] 

RIN 1545–BI42 

Application of Section 367 to a Section 

351 Exchange Resulting From a 

Transaction Described in Section 

304(a)(1); Treatment of Gain 

Recognized Under Section 301(c)(3) for 

Purposes of Section 1248; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correcting amendment. 

SUMMARY: This document contains a 

correction to final and temporary 

regulations (TD 9444) that were 

published in the Federal Register on 

Wednesday, February 11, 2009, under 

sections 367(a), 367(b) and 1248(a) of 

the Internal Revenue Code. The final 

regulations under section 367 revise 

existing final regulations and add crossreferences. 

The final regulations under section 

1248 update an effective/applicability 

date. The temporary regulations under 

section 367(a) and (b) revise existing 

final regulations concerning transfers of 

stock to a foreign corporation that are 

described in section 351 by reason of 

section 304(a)(1). The temporary 

regulations under section 1248(a) 

provide that, for purposes of section 

1248(a), gain recognized by a 

shareholder under section 301(c)(3) in 

connection with the receipt of a 

distribution of property from a foreign 

corporation with respect to its stock 

shall be treated as gain from the sale or 

exchange of the stock of such foreign 

corporation. The temporary regulations 

affect certain persons that transfer stock 

to a foreign corporation in a transaction 

described in section 304(a)(1), or certain 

persons that recognize gain under 

section 301(c)(3) in connection with the 

receipt of a distribution of property from 

a foreign corporation with respect to its 

stock.