28654 Federal Register / Vol. 66, No. 101 / Thursday, May 24, 2001 / Rules and Regulations

1Pub. L. 99–571, 100 Stat. 3208 (1986).

2See 17 CFR 403.5(a), (d)(1)(vi).

3 15 U.S.C. 78c(a)(42).

4 52 FR 27910 (July 24, 1987).

5 17 CFR 400.3(m).

6 Gramm-Leach-Bliley Act sec. 208; Pub. L. No.

106–102, 113 Stat. 1338 (1999).

provides an acceptable level of safety may be

used if approved by the Manager, Los

Angeles ACO, FAA. Operators shall submit

their requests through an appropriate FAA

Principal Maintenance Inspector, who may

add comments and then send it to the

Manager, Los Angeles ACO.

Note 5: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Los Angeles ACO.

Special Flight Permits

(g) Special flight permits may be issued in

accordance with §§ 21.197 and 21.199 of the

Federal Aviation Regulations (14 CFR 21.197

and 21.199) to operate the airplane to a

location where the requirements of this AD

can be accomplished.

Incorporation by Reference

(h) Except as provided by paragraphs (d)(3)

and (d)(4) of this AD, the actions shall be

done in accordance with Boeing Alert

Service Bulletin MD90–30A023, including

Appendix, dated March 14, 2001. This

incorporation by reference was approved by

the Director of the Federal Register in

accordance with 5 U.S.C. 552(a) and 1 CFR

part 51. Copies may be obtained from Boeing

Commercial Aircraft Group, Long Beach

Division, 3855 Lakewood Boulevard, Long

Beach, California 90846, Attention: Data and

Service Management, Dept. C1–L5A (D800–

0024). Copies may be inspected at the FAA,

Transport Airplane Directorate, 1601 Lind

Avenue, SW., Renton, Washington; or at the

FAA, Los Angeles Aircraft Certification

Office, 3960 Paramount Boulevard,

Lakewood, California; or at the Office of the

Federal Register, 800 North Capitol Street,

NW., suite 700, Washington, DC.

Effective Date

(i) This amendment becomes effective on

June 8, 2001.

Issued in Renton, Washington, on May 16,

2001.

Donald L. Riggin,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 01–12945 Filed 5–23–01; 8:45 am]

BILLING CODE 4910–13–U

DEPARTMENT OF THE TREASURY

Office of the Under Secretary for

Domestic Finance

17 CFR Part 450

RIN 1505–AA82

Government Securities Act

Regulations: Definition of Government

Securities

AGENCY: Office of the Under Secretary

for Domestic Finance, Treasury.

ACTION: Final rule.

SUMMARY: The Department of the

Treasury (‘‘Treasury,’’ ‘‘We,’’ or ‘‘Us’’) is

issuing in final form an amendment to

the regulations issued under the

Government Securities Act of 1986, as

amended (‘‘GSA’’). Section 208 of the

Gramm-Leach-Bliley Act amended the

definition of the term ‘‘government

securities’’ in the Securities Exchange

Act of 1934, as it applies to a bank, to

include qualified Canadian government

obligations. To conform with this

change in definition, we are issuing a

technical amendment to Part 450 of the

GSA regulations governing depository

institutions’ government securities

holdings in custody for customers.

EFFECTIVE DATE: May 24, 2001.

ADDRESSES: You may download the

final rule from Treasury’s Bureau of the

Public Debt website at the following

address: www.publicdebt.treas.gov. It is

also available for public inspection and

copying at the Treasury Department

Library, Room 1428, Main Treasury

Building, 1500 Pennsylvania Avenue,

NW., Washington, DC 20220. To visit

the library, call (202) 622–0990 for an

appointment.

FOR FURTHER INFORMATION CONTACT: Lori

Santamorena (Executive Director), Lee

Grandy (Associate Director), or Deidere

Brewer (Government Securities

Specialist), Bureau of the Public Debt,

Government Securities Regulations

Staff, (202) 691–3632.

SUPPLEMENTARY INFORMATION: This final

rule deals with the recent change in

definition of ‘‘government securities’’ in

the Securities Exchange Act of 1934

(‘‘the Exchange Act’’) to include certain

Canadian government obligations, as

applied to banks. On February 26, 2001

(66 FR 11548), we published a proposed

amendment to Part 450 of the GSA

regulations. No comment letters were

received. Therefore, we have decided to

adopt the amendment unchanged from

its proposed form. This statutory change

affects two groups of GSA regulations—

Subchapter A (17 CFR Parts 400–449),

issued under Title I of the GSA, and

Subchapter B (17 CFR Part 450), issued

under Title II of the GSA—which we

discuss separately. Because the statutory

change is picked up automatically in

Subchapter A, we are not making any

regulatory change to Subchapter A. We

are making a technical and clarifying

change to Subchapter B.

Subchapter A

Title I of the Government Securities

Act of 1986 1 (Section 15C of the

Exchange Act) requires ‘‘government

securities brokers’’ and ‘‘government

securities dealers’’ (which may include

banks) to provide notice to their

regulators and comply with the

requirements prescribed by Treasury in

17 CFR, subchapter A, parts 400–449.

Among those requirements is

compliance with rules in subchapter B

(part 450).2

Part 401 provides a series of

exemptions for financial institutions.

These exemptions include limited

government securities brokerage and

government securities dealer activities

and certain repurchase transactions

with customers. Thus, even if a

financial institution does not provide

notice as a government securities broker

or dealer, it may be subject to

Subchapter A by virtue of its reliance on

the exemptions in Subchapter A. One of

the conditions of these exemptions is

that a financial institution must comply

with the requirements in Subchapter B

(Part 450).

The GSA amended the Exchange Act

by adding a definition of the term

‘‘government securities’’ at section

3(a)(42) of the Exchange Act.3 In

Subchapter A of the implementing

regulations for the GSA,4 we defined

‘‘government securities’’ at § 400.3(m) 5

as having the meaning set out in section

3(a)(42) of the Exchange Act.

Section 208 of Title II, Subtitle A of

the Gramm-Leach-Bliley Act 6 (the ‘‘G–

L–B Act’’) amended the definition of

‘‘government securities’’ in the

Exchange Act by adding a new

subparagraph (E) at section 3(a)(42). The

amendment provides that ‘‘government

securities’’ means ‘‘for purposes of

sections 15, 15C and 17A as applied to

a bank, a qualified Canadian

government obligation as defined in

section 5136 of the Revised Statutes of

the United States.’’

Because § 400.3(m) of the regulations

currently defines ‘‘government

securities’’ to have the meaning set out

at section 3(a)(42) of the Exchange Act,

the statutory change to include certain

Canadian government obligations will

now be automatically incorporated

without requiring a technical change.

Any U.S. banks that transact business in

qualified Canadian government

obligations, but not U.S. government

securities, may now be subject to the

GSA regulations (including the

exemptions). U.S. banks currently

transacting business in U.S. government

securities are already subject to the GSA

regulations.

Federal Register / Vol. 66, No. 101 / Thursday, May 24, 2001 / Rules and Regulations 28655

Subchapter B

As noted above, Subchapter A of the

regulations requires institutions subject

to Subchapter A (i.e., government

securities brokers and dealers and

exempt institutions) to also comply with

the rules in Subchapter B. In addition,

under Title II of the GSA (31 U.S.C.

3121(h), 9110) depository institutions

that are not government securities

brokers or dealers and that hold

government securities for the account of

customers must comply with the rules

prescribed by Treasury in 17 CFR,

subchapter B, part 450. Thus, there are

three categories of institutions that must

follow the rules in subchapter B—(a)

financial institution government

securities brokers and dealers (as

required by the rules in Subchapter A),

and (b) exempt financial institutions

(also as required by the rules in

Subchapter A), and (c) depository

institutions that are not government

securities brokers or dealers and that

hold government securities for the

account of customers.

Because two of these categories of

institutions ((a) and (b)) are based on

one statutory authority (Title I of the

GSA), and the third category ((c)) is

based on another statutory authority

(Title II of the GSA), we are changing

the definition of ‘‘government

securities’’ in § 450.2(e) to take this into

account. Section 450.2(e)(1), the

definition applicable to institutions that

are required under the rules in

subchapter A to follow the subchapter B

rules, will now include qualified

Canadian government obligations.

Section 450.2(e)(2) of the definition is

narrower and does not include qualified

Canadian government obligations. It is

applicable to institutions that are

required to follow the Subchapter B

rules solely because of the requirements

of Title II of the GSA.

Therefore, for institutions required to

follow the rules in Subchapter B as a

result of the requirements of subchapter

A, § 450.2(e)(1)(i) and (e)(1)(ii) will

extend the requirements of subchapter B

to institutions holding qualified

Canadian government obligations for

customer accounts.

The G–L–B Act was enacted on

November 12, 1999. The effective date

of Subtitle A of Title II of the G–L–B Act

is 18 months after enactment, or May

12, 2001. To minimize the period during

which the amended regulation is not in

effect and to encourage timely

compliance by entities that may now be

subject to our regulations, Treasury

finds good cause exists as required

under the Administrative Procedures

Act (5 U.S.C. 553(d)) to make this final

amendment to the GSA regulations

effective on May 24, 2001.

Special Analysis

The final rule only makes a technical

amendment to the GSA regulations to

conform to a change in definition of the

term ‘‘government securities’’ made by

the G–L–B Act. Therefore, the final rule

is not a ‘‘significant regulatory action’’

for the purposes of Executive Order

12866.

For the same reason it is hereby

certified pursuant to the Regulatory

Flexibility Act (5 U.S.C. 601, et. seq)

that this final rule will not have a

significant economic impact on a

substantial number of small entities.

Accordingly, a regulatory flexibility

analysis is not required.

List of Subjects in 17 CFR Part 450

Banks, banking, Government

securities, Reporting and recordkeeping

requirements.

For the reasons stated in the

preamble, we amend 17 CFR part 450 as

follows:

PART 450—CUSTODIAL HOLDINGS

OF GOVERNMENT SECURITIES BY

DEPOSITORY INSTITUTIONS

1. The authority citation for Part 450

is revised to read as follows:

Authority: Sec. 201, Pub. L. 99–571, 100

Stat. 3222–23 (31 U.S.C. 3121, 9110); Sec.

101, Pub. L. 99–571, 100 Stat. 3208 (15 U.S.C.

78o-5(b)(1)(A), (b)(4), (b)(5)(B)).

2. Section 450.2 is amended by

revising paragraph (e) to read as follows:

§ 450.2 Definitions

* * * * *

(e) Government securities means:

If . . . Then . . .

(1)(i) A depository institution is a government securities broker and

dealer as defined in sections 3(a)(43) and 3(a)(44) of the Securities

Exchange Act of 1934 (15 U.S.C. 78c(a)(43)–(44)).

‘‘Government securities’’ means those obligations described in subparagraphs (A), (B), (C), or (E) of section 3(a)(42) of the Securities

Exchange Act of 1934 (15 U.S.C. 78c(a)(42)(A)–(C), (E))

(ii) A depository institution is exempt under Part 401 of this chapter

from the requirements of Subchapter A.

‘‘Government securities’’ means those obligations described in subparagraphs (A), (B), (C), or (E) of section 3(a)(42) of the Securities

Exchange Act of 1934 (15 U.S.C. 78c(a)(42)(A)–(C), (E))

(2) A depository institution is not a government securities broker or

dealer as defined in sections 3(a)(43) and 3(a)(44) of the Securities

Exchange Act of 1934 (15 U.S.C. 78c(a)(43)–(44)).

‘‘Government securities’’ means those obligations described in subparagraphs (A), (B), or (C) of section 3(a)(42) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(42)(A)–(C))

* * * * *

Dated: May 18, 2001.

Donald V. Hammond,

Acting Under Secretary, Domestic Finance.

[FR Doc. 01–13138 Filed 5–23–01; 8:45 am]

BILLING CODE 4810–39–P

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 208

RIN 1010–AC70

Small Refiner Administrative Fee

AGENCY: Minerals Management Service,

Interior.

ACTION: Final rule.

SUMMARY: The Minerals Management

Service (MMS) is eliminating the cost

recovery fees it charges small refiners to

participate in the Small Refiner Royaltyin-Kind (RIK) Program. MMS believes

these fees are no longer justified under

the requirements of the Office of

Management and Budget (OMB)

Circular No. A–25.

EFFECTIVE DATE: This rule is effective

June 25, 2001.

FOR FURTHER INFORMATION CONTACT: Paul

A. Knueven, Chief, Regulations and

FOIA Team, Minerals Management

Service, Minerals Revenue Management,

P.O. Box 25165, MS 320B2, Denver,

Colorado 80225–0165; telephone (303)