23198 Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Proposed Rules

1 12 U.S.C. 1815(d).

2 12 CFR 543.14 (2000).

3See 12 CFR 552.13(l) (2000).

established for conducting business in

the commercial marketplace to the

extent that the systems comply with

Generally Accepted Accounting

Practices (GAAP) and certain minimum

standards (i.e., effective control of

funds, accurate records that document

the source and application of the

Federal funds and the recipient’s

required cost share, and a system to

support charges to Federal awards for

salaries and wages);

b. Establishing a preference for the

reimbursement method of payment; and

c. Requiring recipients that expend

$300,000 or more in a year under

Federal awards to have an audit for that

year by an independent auditor. The

audit generally would be made a part of

the regularly scheduled, annual audit of

the recipient’s financial statements.

6. Clarify and simplify the property

standards. The revised property

standards would encourage recipients to

use existing property management

systems to the extent that the systems

meet certain minimum requirements.

7. Significantly reduce requirements

imposed on recipient procurement

activities in favor of best commercial

practices. DOE is considering

establishing minimum procurement

requirements, such as:

a. Requiring recipients’ procurement

procedures to use effective competition

techniques or other means that ensure

reasonable cost for procured goods and

services;

b. Requiring pre-award review of

procurements only when the contracting

officer judges that there is a compelling

need to do so and then only if a

provision in the award states the

requirement; and

c. Encourage the use of best

commercial practices in the

procurement of commercial items.

Issued in Washington, D.C. on April 30,

2001.

Richard H. Hopf,

Acting Director, Office of Management and

Administration, U.S. Department of Energy.

[FR Doc. 01–11519 Filed 5–7–01; 8:45 am]

BILLING CODE 6450–01–P

DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Part 552

[No. 2001–35]

RIN 1550–AB46

Conversion From Stock Form

Depository Institution to Federal Stock

Association

AGENCY: Office of Thrift Supervision,

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Office of Thrift

Supervision (OTS) is proposing to

amend its regulation on conversions

from stock form depository institutions

to federal stock savings associations.

This proposed rule would clarify that

the resulting federal stock savings

association in such transactions

succeeds to all the rights, property, and

obligations of the converting institution.

This amendment merely codifies OTS’s

interpretation of its existing regulation.

DATES: Comments must be received on

or before June 7, 2001.

ADDRESSES: Mail: Send comments to

Regulation Comments, Chief Counsel’s

Office, Office of Thrift Supervision,

1700 G Street, NW., Washington, DC

20552, Attention Docket No. 2001–35.

Delivery: Hand deliver comments to

the Guard’s Desk, East Lobby Entrance,

1700 G Street, NW., from 9:00 a.m. to

4:00 p.m. on business days, Attention

Regulation Comments, Chief Counsel’s

Office, Docket No. 2001–35.

Facsimiles: Send facsimile

transmissions to FAX Number (202)

906–6518, Attention Docket No. 2001–

35.

E–Mail: Send e-mails to

regs.comments@ots.treas.gov, Attention

Docket No. 2001–35, and include your

name and telephone number.

Public Inspection: Comments and the

related index will be posted on the OTS

Internet Site at www.ots.treas.gov. In

addition, you may inspect comments at

the Public Reading Room, 1700 G St.

N.W., by appointment. To make an

appointment for access, call (202) 906–

5922, send an e-mail to

public.info@ots.treas.gov, or send a

facsimile transmission to (202) 906–

7755. (Prior notice identifying the

materials you will be requesting will

assist us in serving you.) Appointments

will be scheduled on business days

between 10:00 a.m. and 4:00 p.m. In

most cases, appointments will be

available the next business day

following the date a request is received.

FOR FURTHER INFORMATION CONTACT:

Aaron B. Kahn, (202) 906–6263, Special

Counsel, or Kevin A. Corcoran, (202)

906–6962, Assistant Chief Counsel,

Business Transactions Division, Chief

Counsel’s Office, Office of Thrift

Supervision, 1700 G Street, NW,

Washington DC 20552.

SUPPLEMENTARY INFORMATION:

Background

OTS regulations at 12 CFR 552.2–6

provides that, with OTS approval, any

stock depository institution that is, or is

eligible to become, a member of a

Federal Home Loan Bank may convert

to a federal stock savings association if

the converting institution has deposits

insured by the Federal Deposit

Insurance Corporation (FDIC) at the

time of conversion, and complies with

all applicable statutes and regulations,

including section 5(d) of the Federal

Deposit Insurance Act.1 This regulation

does not explicitly address the

succession of the federal association

resulting from such a conversion to the

rights, obligations and property of the

converting institution. However, as a

matter of practice OTS treats federal

stock associations that have resulted

from direct conversions pursuant to 12

CFR 552.2–6 as the corporate successors

of the converting institutions.

OTS regulations addressing similar

transactions explicitly provide that the

resulting federal association succeeds to

the rights, obligations, and property of

a converted or disappearing entity. This

is true, for example, for conversions of

mutual depository institutions to federal

mutual savings associations 2 and the

merger or consolidation of stock

institutions that result in a federal stock

association.3

To clarify the legal consequences of

direct conversions under 12 CFR 552.2–

6, OTS is proposing to amend that

regulation to provide explicitly that a

converted federal stock association

succeeds to all the rights, obligations

and property of its corporate

predecessor.

This action will not change the

existing treatment accorded federal

stock associations that have converted

from a stock depository institution.

Rather, the amendment merely codifies

the agency’s existing interpretation of its

regulation. The text of the amendment

has been derived from a comparable

provision pertaining to the merger and

consolidation of federal stock

associations that appears at 12 CFR

552.13(l).

Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Proposed Rules 23199

4Pub. L. No. 96–354, 5 U.S.C. 601.

Comments; Accompanying Direct Final

Rule

If no significant adverse comments are

timely received, no further activity is

contemplated relative to this proposed

rule. Rather, the related direct final rule

published elsewhere in this issue of the

Federal Register will automatically go

into effect on the date specified in that

rule. If significant adverse comments are

timely received, the direct final rule will

be withdrawn and all public comments

received will be addressed in a

subsequent final rule. Because OTS will

not institute a second comment period

for this proposed rule, any parties

interested in commenting should do so

during this comment period.

Regulatory Flexibility Act

Pursuant to section 605(b) of the

Regulatory Flexibility Act,4 the Director

certifies that this proposed rule will not

have a significant economic impact on

a substantial number of small entities.

The rule would merely codifies an

existing OTS interpretation.

Executive Order 12866

OTS has determined that this

proposed rule is not a ‘‘significant

regulatory action’’ for purposes of

Executive Order 12866.

Unfunded Mandates Reform Act of

1995

OTS has determined that the

requirements of this proposed rule will

not result in expenditures by State,

local, and tribal governments or by the

private sector of $100 million or more

in any one year. Accordingly, a

budgetary impact statement is not

required under section 202 of the

Unfunded Mandates Reform Act of

1995.

Federalism

Executive Order 13132 imposes

certain requirements on an agency when

formulating and implementing polices

that have federalism implications or

taking actions that preempt state law.

OTS has determined that this proposed

rule will not have substantial direct

effects on the States, on the relationship

between the national government and

the States, or on the distribution of

power and responsibilities among the

various levels of government, and will

not preempt State law.

List of Subjects in 12 CFR Part 552

Reporting and recordkeeping

requirements, Savings associations,

Securities.

Accordingly, the Office of Thrift

Supervision hereby proposes to amend

title 12, chapter V of the Code of Federal

Regulations as set forth below.

PART 552—INCORPORATION,

ORGANIZATION, AND CONVERSION

OF FEDERAL STOCK ASSOCIATIONS

1. The authority citation for Part 552

continues to read as follows:

Authority: 12 U.S.C. 1462, 1462a, 1463,

1464, 1467a.

2. Section 552.2–6 is amended by

designating the text of the section as

paragraph (a) and adding paragraph (b)

to read as follows:

§ 552.2–6 Conversion from stock form

depository institution to Federal stock

association.

(a) * * *

(b) Any and all of the assets and other

property (whether real, personal, mixed,

tangible or intangible, including choses

in action, rights, and credits) of the

former stock form depository institution

become assets and property of the

Federal stock association when the

conversion occurs. Similarly, any and

all of the obligations and debts of or

claims against the former stock form

depository institution become

obligations and debts of and claims

against the Federal stock association

when the conversion occurs. In effect,

the Federal stock association is the same

as the former stock form depository

institution with respect to any and all

assets, property, claims and debts of or

claims against the former stock form

depository institution.

Dated: May 2, 2001.

By the Office of Thrift Supervision.

Ellen Seidman,

Director.

[FR Doc. 01–11544 Filed 5–7–01; 8:45 am]

BILLING CODE 6720–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 23

[Docket No. CE165; Notice No. 23–01–02–

SC]

Special Conditions: Ayres

Corporation; Model LM 200,

‘‘Loadmaster’’; Flight

AGENCY: Federal Aviation

Administration (FAA), DOT.

ACTION: Notice of proposed special

conditions.

SUMMARY: This action proposes special

conditions for the Ayres Corporation,

Model LM 200 airplane. This airplane

will have novel or unusual design

features associated with centerline

thrust. The applicable airworthiness

regulations do not contain adequate or

appropriate safety standards for this

design feature. These proposed special

conditions contain the additional safety

standards that the Administrator

considers necessary to establish a level

of safety equivalent to that established

by the existing airworthiness standards.

DATES: Comments must be received on

or before June 7, 2001.

ADDRESSES: Comments on this proposal

may be mailed in duplicate to: Federal

Aviation Administration, Regional

Counsel, ACE–7, Attention: Rules

Docket, Docket No. CE165, 901 Locust,

Room 506, Kansas City, Missouri 64106,

or delivered in duplicate to the Regional

Counsel at the above address.

Comments must be marked: CE165.

Comments may be inspected in the

Rules Docket weekdays, except Federal

holidays, between 7:30 a.m. and 4:00

p.m.

FOR FURTHER INFORMATION CONTACT:

Lowell Foster, Federal Aviation

Administration, Aircraft Certification

Service, Small Airplane Directorate,

ACE–111, 901 Locust, Room 301,

Kansas City, Missouri, 816–329–4125,

fax 816–329–4090.

SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited to

participate in the making of these

proposed special conditions by

submitting such written data, views, or

arguments as they may desire.

Communications should identify the

regulatory docket or notice number and

be submitted in duplicate to the address

specified above. All communications

received on or before the closing date

for comments will be considered by the

Administrator. The proposals described

in this action may be changed in light

of the comments received. All

comments received will be available in

the Rules Docket for examination by

interested persons, both before and after

the closing date for comments. A report

summarizing each substantive public

contact with FAA personnel concerning

this rulemaking will be filed in the

docket. Persons wishing the FAA to

acknowledge receipt of their comments

submitted in response to this action

must include with those comments a

self-addressed, stamped postcard on

which the following statement is made:

‘‘Comments to CE165.’’ The postcard

will be date stamped and returned to the

commenter.