Federal Register / Vol. 66, No. 80 / Wednesday, April 25, 2001 / Rules and Regulations 20745

(ii) Elects not to have its funds

separately accounted for and segregated

in accordance with the provisions of

section 4d of the Act and §§ 1.20–1.30,

1.32 and 1.36 with respect to

agreements, contracts or transactions

traded on or subject to the rules of any

registered derivatives transaction

execution facility that has authorized

such treatment in accordance with

§ 37.7 of this chapter;

(iii) Acknowledges that it has been

informed, and by making this election

agrees that:

(A) The customer’s funds, related to

agreements, contracts or transactions on

any registered derivatives transaction

execution facility that authorizes the

opting out of segregation will not be

segregated from the funds of the futures

commission merchant in accordance

with the provisions of section 4d of the

Act and §§ 1.20–1.30, 1.32 and 1.36;

(B) The futures commission merchant

may use such funds in the course of the

futures commission merchant’s business

without the prior consent of the

customer or any third party;

(C) In the event the futures

commission merchant files, or has a

petition filed against it, for bankruptcy,

the customer, as to those funds that the

customer has elected not to have

separately accounted for and segregated

by the futures commission merchant in

accordance with the provisions of

section 4d of the Act and §§ 1.20–1.30,

1.32 and 1.36, will not be entitled to the

priority for customer claims provided

for under the Bankruptcy Code and part

190 of this chapter;

(D) The customer may not retain a

security interest in assets excluded from

segregation in accordance with this

section;

(E) The customer may not enter into

any agreement or other understanding

with the futures commission merchant

relating to the manner in which the

customer’s assets will be held at the

futures commission merchant, that

directly or indirectly gives the customer

a priority in bankruptcy that is equal or

superior to the priority afforded public

customers under the Bankruptcy Code

and part 190 of this chapter; and

(iv) Acknowledges that the agreement

shall remain in effect unless and until

the customer abrogates the agreement in

accordance with paragraph (c) of this

section.

(b) In no event may money, securities

or property representing those funds

that customers have elected not to have

separately accounted for and segregated

by the futures commission merchant, in

accordance with this section, be held or

commingled and deposited with

customer funds in the same account or

accounts required to be separately

accounted for and segregated pursuant

to section 4d of the Act and §§ 1.20–

1.30, 1.32 and 1.36.

(c)(1) A customer that has entered into

an agreement in accordance with

paragraph (a)(4) of this section may

abrogate that agreement by so informing

the futures commission merchant in

writing, signed by a person with the

authority to bind the customer. The

effective date of the abrogation shall not

exceed five business days from the

futures commission merchant’s receipt

of the customer’s abrogation. The

abrogation shall not become effective if

the futures commission merchant files,

or has had filed against it, a petition for

bankruptcy prior to the effective date of

the abrogation.

(2) Upon the effective date of the

abrogation, permitted under paragraph

(c)(1) of this section, provided that the

customer’s positions in the nonsegregated account are fully margined

and the customer is not in default with

respect to any of its obligations to the

futures commission merchant arising

out of agreements, contracts or

transactions entered on, or subject to the

rules of, a registered entity, as defined

in section 1a(29) of the Act, the futures

commission merchant shall transfer to a

customer segregated account:

(i) All trades or positions of the

customer with respect to which the

customer had previously elected to opt

out of segregation; and

(ii) All money, securities, or property

held in such account to margin,

guarantee or secure such trades or

positions.

(d) Each futures commission

merchant shall maintain any agreements

entered into with customers pursuant to

paragraph (a) of this section and any

abrogations of such agreements, made

pursuant to paragraph (c) of this section,

in accordance with § 1.31.

PART 190—BANKRUPTCY RULES

7. The authority citation for Part 190

continues to read as follows:

Authority: 7 U.S.C. 1a, 2, 4a, 6c, 6d, 6g, 7,

7a, 12, 19, 23, and 24, and 11 U.S.C. 362, 546,

548, 556 and 761–766, unless otherwise

noted.

8. Section 190.01 is amended by

revising paragraph (bb) to read as

follows:

§ 190.01 Definitions.

* * * * *

(bb) Non-public customer means any

person enumerated in § 1.3(y), § 1.3(uu)

or § 31.4(e) of this chapter, who is

defined as a customer under paragraph

(k) of this section.

* * * * *

Issued in Washington, DC on April 19,

2001, by the Commission.

Catherine D. Dixon,

Assistant Secretary of the Commission.

[FR Doc. 01–10222 Filed 4–24–01; 8:45 am]

BILLING CODE 6351–01–P

POSTAL SERVICE

39 CFR Part 501

Authorization to Manufacture and

Distribute Postage Meters

AGENCY: Postal Service.

ACTION: Final rule.

SUMMARY: This final rule clarifies and

strengthens requirements for

manufacturers of postage meters to

control meters used for demonstration

and loaner purposes.

DATES: This rule is effective April 25,

2001.

FOR FURTHER INFORMATION CONTACT:

James Luff, 703–292–3693.

SUPPLEMENTARY INFORMATION: When

manufacturers do not follow established

policies and procedures for postage

meters loaned to customers for

temporary use (‘‘loaner meters’’) and

those used for demonstration purposes,

there are potential revenue protection

problems as well as costly data entry

errors. The potential for postage meter

misuse and fraud must be eliminated.

To accomplish this objective, the Postal

Service must publish procedures for

handling loaned and demonstration

meters, and manufacturers’ employees,

dealers, and representatives must follow

them.

List of Subjects in 39 CFR Part 501

Administrative practice and

procedure, Postal Service.

For the reasons set out in this

document, the Postal Service is

amending 39 CFR part 501 as follows:

PART 501—AUTHORIZATION TO

MANUFACTURE AND DISTRIBUTE

POSTAGE METERS

1. The authority citation for part 501

continues to read as follows:

Authority: 5 U.S.C. 552(a); 39 U.S.C. 101,

401, 403, 404, 410, 2601, 2605; Inspector

General Act of 1978, as amended (Pub. L. 95–

452, as amended), 5 U.S.C. App. 3.

2. Section 501.22 is amended by

adding new paragraphs (s) and (t) to

read as follows:

20746 Federal Register / Vol. 66, No. 80 / Wednesday, April 25, 2001 / Rules and Regulations

§ 501.22 Distribution controls.

* * * * *

(s) A demonstration meter is typically

used to acquaint a potential user with

the features of a meter as part of the

sales effort. The following procedures

must be followed to implement controls

over demonstration meters:

(1) A demonstration meter may print

only specimen indicia and must not be

used to meter live mail.

(2) A demonstration meter must be

recorded as such on internal

manufacturer inventory records and

must be tracked by model number,

serial number, and physical location. If

the meter’s status as a demonstration

meter changes, the meter must be

administered according to the

procedures that apply to its new status.

(3) A demonstration meter may be

used only for demonstrations by a

manufacturer’s dealer or branch

representative and must remain under

the dealer’s or representative’s direct

control. A demonstration meter may not

be left in the possession of the potential

customer under any circumstance.

(t) A postage meter loaned to a

customer for temporary use (a ‘‘loaner

meter’’) is typically used to acquaint a

potential user with the features of a

meter as part of the sales effort, or serves

as a temporary placement while the

customer awaits delivery of a new

meter. The following procedures must

be followed to implement controls over

loaner meters:

(1) A loaner meter prints valid indicia

and may be used to apply postage to a

mailpiece. Only electronic, remote-set

meters may be used as loaner meters.

The city/state designation in the loaner

meter indicia must show the location

where the user’s mail will be deposited.

(2) A customer may have possession

of a loaner meter for a maximum of five

consecutive business days. When the

customer chooses to continue the use of

a postage meter, the loaner meter must

be retrieved and a new meter must be

installed under the customer’s license.

(3) The manufacturer’s dealer or

branch representative (‘‘representative’’)

must have a USPS-issued meter user

license to place a loaner meter. A single

license per USPS district can be used to

issue loaner meters to customers in any

of the different Post Office service areas

within that district.

(4) Loaner meters must be reported

electronically to the USPS meter

tracking system when activated. A Form

3601–C, Postage Meter Activity Report,

must be initiated to activate a loaner

meter under the representative’s meter

license. The licensee and meter location

information on the form will show the

representative rather than the temporary

user. However, loaner meters may only

be placed with customers who have

been issued a USPS meter license.

(5) Representatives must record and

verify the accuracy of the ascending and

descending register readings when a

loaner meter is placed with the

customer. Any discrepancies detected

during the verification process must be

reported immediately to the meter

manufacturer, who will then notify

Postage Technology Management.

(6) The representative is responsible

for resetting the loaner meter with

postage and must arrange for

reimbursement directly with the

customer.

(7) The representative maintains full

responsibility for the loaner meter. As

both a manufacturer’s representative

and a meter licensee, the representative

is subject to the provision of Domestic

Mail Manual part P030 and Code of

Federal Regulations part 501. As a

licensee, the representative assumes all

licensee responsibilities under USPS

meter regulations and must ensure that

loaner meters are available for

examination by the Postal Service on

demand and are examined in

accordance with Postal Service policy.

Any losses incurred by the Postal

Service as a result of fraudulent use of

the loaner meter by the customer are the

responsibility of the meter licensee, the

customer, and the manufacturer.

(8) When the customer returns the

meter, the dealer or branch

representative must record and verify

the accuracy of the ascending and

descending register readings and inspect

the meter. Any discrepancies or

indication of tampering or fraudulent

use must be reported immediately to the

meter manufacturer, who will then

notify Postage Technology Management.

In such circumstance, the meter must

not be used and must be returned to the

manufacturer’s QAR department via

Registered Mail.

(9) Loaner meters must be reported

electronically to the USPS meter

tracking system when withdrawn from

service. The dealer or branch

representative must prepare Form 3601–

C, Postage Meter Activity Report, for

each loaner meter withdrawn.

Stanley F. Mires,

Chief Counsel, Legislative.

[FR Doc. 01–10148 Filed 4–24–01; 8:45 am]

BILLING CODE 7710–12–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[TX–101–1–7394a; FRL–6969–3]

Approval and Promulgation of

Implementation Plans; Texas; Post 96

Rate of Progress Plan, Motor Vehicle

Emissions Budgets (MVEB) and

Contingency Measures for the

Houston/Galveston (HGA) Ozone

Nonattainment Area

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Direct final rule.

SUMMARY: The EPA is taking direct final

action on portions of the Texas Ozone

State Implementation Plan (SIP)

revision submitted by the Governor of

Texas on May 19, 1998, to meet the

reasonable further progress

requirements of the Federal Clean Air

Act (the Act). We are approving the

Post-1996 Rate-of-Progress (ROP) Plan,

the Motor Vehicle Emissions Budgets

(MVEB) established by the ROP Plan,

revisions to the contingency measures,

and revisions to the 1990 base year

emissions inventory for the Houston/

Galveston (HGA) 1-hour ozone

nonattainment area.

DATES: This direct final rule is effective

June 25, 2001 unless adverse or critical

comments are received by May 25, 2001.

If adverse comments are received, EPA

will publish timely withdrawal of the

rule in the Federal Register.

ADDRESSES: Written comments on this

action should be addressed to Mr.

Thomas Diggs, Chief, Air Planning

Section (6PD–L), at the EPA Region 6

Office listed below.

Copies of the documents, including

the Technical Support Document,

relevant to this action are available for

public inspection during normal

business hours at the following

locations. Interested persons wanting to

examine these documents should make

an appointment with the appropriate

office at least two working days in

advance.

Environmental Protection Agency,

Region 6, Air Planning Section (6PD–

L), Multimedia Planning and

Permitting Division, Dallas, 1445 Ross

Avenue, Texas 75202–2733,

telephone: (214) 665–7214.

Texas Natural Resource Conservation

Commission, Office of Air Quality,

12124 Park 35 Circle, Austin, Texas

78753.

FOR FURTHER INFORMATION CONTACT: Mr.

Guy R. Donaldson, Air Planning Section

(6PD–L), Multimedia Planning and