51582 Federal Register / Vol. 70, No. 168 / Wednesday, August 31, 2005 / Rules and Regulations 

1 68 FR 35589 (June 16, 2003). The June 2003 

notice also addressed powers and activities and 

international operations. The agencies have 

published subsequent notices seeking comment on 

consumer protection provisions in lending-related 

rules at 69 FR 2852 (January 21, 2004); consumer 

protection provisions in other rules at 69 FR 43347 

(July 20, 2004); and money laundering and safety 

and soundness and securities rules at 70 FR 5571 

(February 3, 2005). 

The authorization to grant waivers is 

subject to the Commission’s 

determination that the waiver is in 

accordance with the protection of the 

public health and safety and the 

promotion of the common defense and 

security. The Commission has 

determined that there is no basis on 

which to conclude that these materials 

will not continue to be used in a manner 

that ensures that the public health and 

safety will be protected while this 

waiver is in effect. The Energy Policy 

Act of 2005 also specifically requires the 

Commission to consider, in 

promulgating regulations, the impact on 

the availability of radiopharmaceuticals 

to physicians and to patients the 

medical treatment of which relies on 

radiopharmaceuticals. The Commission 

believes that it is in the best interests of 

the country to allow continued use of 

the newly defined byproduct material in 

radiopharmaceuticals for medical 

purposes, and to allow the States to 

continue to regulate the newly defined 

byproduct material until the 

Commission can codify new regulations 

for these materials. 

In sum, the Commission currently 

does not have in place a specific set of 

regulations to oversee the use of 

byproduct material as defined in 

paragraphs (3) and (4) of section 11 e. 

of the Atomic Energy Act of 1954, as 

added by section 651(e) of the Energy 

Policy Act of 2005. Granting of the 

waiver set forth at the end of this 

document will allow, for the applicable 

waiver period, States to continue with 

their programs, persons engaged in 

activities involving the newly defined 

Atomic Energy Act byproduct material 

to continue their operations in a safe 

manner, and continued access to 

medical radiopharmaceuticals. This will 

also permit the Commission and States 

that currently do not have § 274i 

Agreement State regulatory programs, 

but wish to enter into an agreement with 

the NRC, to appropriately address the 

newly defined byproduct material. The 

Commission has determined that 

issuance of this waiver is in accordance 

with the protection of the public health 

and safety and the promotion of the 

common defense and security. 

Waiver 

Except as required by section 

651(e)(5)(B)(i)(I), the Commission 

hereby grants a waiver from the 

requirements of section 651(e) of the 

Energy Policy Act of 2005, titled, 

‘‘Treatment of Accelerator-Produced 

and Other Radioactive Material as 

Byproduct Material’’, as follows: 

(1) To all persons engaged in export 

from or import into the United States of 

byproduct material as defined in section 

11 e.(3) and (4) of the Atomic Energy 

Act 1954, through August 7, 2006, 

unless terminated sooner if the 

Commission determines that an earlier 

termination is warranted; except that 

the requirements of the Department of 

Commerce relating to export of such 

material will continue to apply to such 

material during the waiver period; 

(2) To all persons that acquire, 

deliver, receive, possess, own, use, or 

transfer byproduct material as defined 

in section 11 e.(3) and (4) of the Atomic 

Energy Act 1954, through August 7, 

2009, unless terminated sooner if the 

Commission determines that an earlier 

termination is warranted; and 

(3) To all States that have entered into 

an agreement with the Commission 

under section 274 b. of the Atomic 

Energy Act of 1954 (42 U.S.C. 2014(e)) 

and to States that have not entered into 

such an Agreement, through August 7, 

2009, unless terminated sooner if the 

Commission determines that an earlier 

termination is warranted; except that 

such a waiver for an Agreement State 

will be terminated by the Commission, 

if the Commission makes the 

determinations required by section 

651(e)(5)(B)(ii) of the Energy Policy Act 

of 2005. 

Dated at Rockville, Maryland, this 25th day 

of August, 2005. 

For the Nuclear Regulatory Commission. 

Annette Vietti-Cook, 

Secretary of the Commission. 

[FR Doc. 05–17293 Filed 8–30–05; 8:45 am] 

BILLING CODE 7590–01–P 

DEPARTMENT OF THE TREASURY 

Office of Thrift Supervision 

12 CFR Parts 506, 516, 528, 543, 544, 

545, 552, 559, 563, 563b, 567, 574, and 

575 

[No. 2005–34] 

RIN 1550–AB93 

EGRPRA Regulatory Review—

Application and Reporting 

Requirements 

AGENCY: Office of Thrift Supervision, 

Treasury (OTS). 

ACTION: Final rule. 

SUMMARY: As a part of its review of 

regulations under section 2222 of the 

Economic Growth and Regulatory 

Paperwork Reduction Act of 1996 (Pub. 

L. 104–208, Sept. 30, 1996) (EGRPRA), 

the Office of Thrift Supervision (OTS) is 

issuing a final rule, which reduces 

regulatory burden on savings 

associations by updating and revising 

various application and reporting 

requirements. Specifically, the final 

rule: modifies the branch office and 

agency office application and notice 

requirements, harmonizes publication 

and public comment procedures for 

various applications and notices, and 

revises the meeting procedures. The 

final rule also eliminates various 

obsolete rules. 

DATES: This rule is effective on October 

1, 2005. 

FOR FURTHER INFORMATION CONTACT: 

Josephine Battle, Program Analyst, 

Thrift Policy, (202) 906–6870; Donald 

Dwyer, Director, Applications, 

Examinations and Supervision 

Operations, (202) 906–6414; Karen 

Osterloh, Special Counsel, Regulations 

and Legislation Division, (202) 906–

6639; or Gary Jeffers, Senior Attorney, 

Business Transactions Division, (202) 

906–6457, Office of Thrift Supervision, 

1700 G Street, NW., Washington, DC 

20552. 

SUPPLEMENTARY INFORMATION: 

I. Introduction 

In 2003, OTS and the other federal 

banking agencies began a joint effort to 

review their rules and identify outdated 

or otherwise unnecessary regulatory 

requirements. This review is required by 

section 2222 of EGRPRA, which directs 

the banking agencies to jointly or 

individually categorize their regulations 

by type, provide notice and solicit 

public comment on the categories, 

request commenters to identify areas of 

the regulations that are outdated, 

unnecessary, or unduly burdensome, 

and eliminate unnecessary regulations 

to the extent that such action is 

appropriate. 12 U.S.C. 3311. As part of 

this EGRPRA process, OTS, the Board of 

Governors of the Federal Reserve 

System, the Federal Deposit Insurance 

Corporation (FDIC), and the Office of 

the Comptroller of the Currency 

published a notice seeking comment on 

unnecessary regulatory burden in their 

rules governing application and 

reporting requirements.1

Based on the comments submitted in 

response to the notice and additional 

comments voiced at EGRPRA outreach 

meetings, OTS issued an interim final 

Federal Register / Vol. 70, No. 168 / Wednesday, August 31, 2005 / Rules and Regulations 51583 

2See e.g., 69 FR 51155 (August 18, 2004); 69 FR 

68257 (November 24, 2004); and 70 FR 10023 

(March 2, 2005). 

3Section 5(m)(1) of the Home Owners’ Loan Act 

(HOLA) states: 

(A) No savings association incorporated under the 

laws of the District of Columbia or organized in the 

District or doing business in the District shall 

establish any branch or move its principal office or 

any branch without the Director’s prior written 

approval. 

(B) No savings association shall establish any 

branch in the District of Columbia or move its 

principal office or any branch in the District 

without the Director’s prior written approval. 12 

U.S.C. 1464(m)(1). 

In the interim final rule, the Director granted his 

prior written approval for savings associations 

subject to section 5(m)(1) of the HOLA to establish 

and move branch and principal offices, providing 

they comply with the same application processes as 

other savings associations. 

4Specifically, the savings association: must 

receive a composite rating of 1 or 2, a CRA rating 

of satisfactory or outstanding, and a compliance 

rating of 1 or 2 during its most recent examination; 

must satisfy its capital requirements under 12 CFR 

part 567 before and after the establishment or 

relocation of the office; and must not be in troubled 

condition. 

5The final rule makes one revision to the 

exemption for highly-rated federal savings 

associations. When an existing office is relocated, 

the prior OTS rule required the savings association 

to prominently post a notice of this fact in the 

existing office. See 12 CFR 545.95(b)(1)(ii)(2004). 

The interim final rule inadvertently eliminated the 

posting requirement for highly-rated federal savings 

associations. It has been restored in the final rule. 

6OTS regulations limit the amount of a federal 

savings association’s investment in real estate used 

for office and related facilities to the amount of its 

total capital. 12 CFR 560.37(2005). 

rule on November 24, 2004 making 

various changes to its application and 

reporting requirements. 69 FR 68257. 

The interim final rule: (1) Modified the 

branch office and agency office 

application and notice requirements, (2) 

harmonized publication and public 

comment procedures for various 

applications and notices, and (3) revised 

the informal and formal meeting 

procedures used in application 

processing. The interim final rule also 

eliminated various obsolete rules. These 

changes were designed to reduce burden 

to the extent consistent with the safe 

and sound supervision of the industry. 

The changes furthered the burden 

reduction efforts in various recent OTS 

rulemakings.2

II. Discussion of Comments 

OTS received numerous comments on 

the interim final rule from savings 

associations, trade associations, 

community organizations, and 

individuals. Many commenters filed 

joint comments on this interim final 

rule and a simultaneously published 

proposed rule on CRA. 

Commenters were divided regarding 

the changes to the informal and formal 

meeting procedures used in application 

processing. Otherwise, commenters 

generally supported the interim final 

rule. Commenters noted that the 

changes simplified and streamlined 

regulatory requirements and processes 

without compromising the safe and 

sound regulation of the industry. They 

commended the rule as a serious effort 

at regulatory burden reduction that was 

responsive to comments made in 

connection with the EGRPRA initiative. 

Commenters also observed that the 

changes in the interim final rule permit 

savings associations to conduct their 

business more flexibly, to compete more 

efficiently, and to focus their resources 

more effectively. Comments on specific 

aspects of the rule are discussed below. 

A. Branch and Home Offices 

As part of the EGRPRA initiative, OTS 

reviewed the application requirements 

that apply to branch and home offices 

operated by federal savings associations. 

The interim final rule made various 

changes to OTS rules to ease the 

regulatory burden of these applications 

and notices. Specifically, the interim 

final rule: 

• Eliminated application and notice 

requirements for re-designations of 

home and branch offices. 

• Eliminated application and notice 

requirements for certain highly-rated 

federal savings associations. 

• Eliminated notice requirements for 

short-distance relocations of branches of 

federal savings associations. 

• Permitted federal savings 

associations incorporated under the 

laws of, organized in, or doing business 

in the District of Columbia to relocate 

home or branch offices and to establish 

branch offices under the same 

application and notice procedures 

applicable to other federal savings 

associations.3

• Eliminated the requirement that a 

federal savings association must file an 

application before it may open a drivein or pedestrian office near an existing 

branch or home office where a public 

entrance of another SAIF-insured 

institution is located closer to the drivein or pedestrian office than the public 

entrance to the thrift’s branch or home 

office. 

Commenters addressed various 

aspects of the interim final rule, but 

generally supported OTS changes. 

These comments are discussed below. 

1. Elimination of branch and home 

office applications and notices for 

highly-rated federal savings 

associations. 

Several commenters addressed the 

elimination of the application and 

notice requirements for highly-rated 

federal savings associations. To qualify 

for this treatment, a federal savings 

association must meet certain standards 

designed to ensure that it is operated in 

a safe and sound manner and fulfills the 

CRA and other compliance 

requirements.4 In addition, the 

association must solicit comment by 

publishing a newspaper notice 

indicating that it intends to re-locate its 

home or branch office or establish a new 

branch office. If a comment opposing 

the application is filed, the association 

is required to file an application or 

notice unless OTS determines that the 

comment raises issues that are not 

relevant to the branch and home office 

approval standards or determines that 

OTS action in response to the comment 

is not required. 

One commenter highlighted the 

importance of the newspaper notice 

requirement and the requirement for 

filing an application upon receipt of 

public comment in response to the 

newspaper notice. The commenter 

urged OTS to retain these requirements 

of the interim final rule. These 

requirements are retained in the final 

rule.5

The preamble to the interim final rule 

observed that branch offices can be 

costly to build and operate and that 

excessive growth can present 

supervisory issues. Accordingly, OTS 

specifically requested comment on 

whether it should require a highly-rated 

federal savings association to file an 

application or notice where its 

investment in branch and home offices 

exceeds a specified limit, or where the 

association is engaged in multiple 

branch expansions. Commenters 

generally opposed such a requirement. 

OTS has not included this limit in the 

final rule. Upon review, OTS has 

concluded that the proposed limitation 

is inconsistent with its objective of 

enhancing the flexibility and 

competitiveness of savings associations 

and the goal of focusing regulatory 

resources where they have the greatest 

impact on safety and soundness. OTS 

believes that the supervisory process, in 

conjunction with the existing 

investment limits in real estate, are 

sufficient to address safety and 

soundness issues raised by business 

expansion.6

2. Additional suggested requirements 

for federal thrifts that make branch or 

home office changes for which an 

application or notice is not required. 

One commenter was concerned that 

OTS might not be fully aware of new 

51584 Federal Register / Vol. 70, No. 168 / Wednesday, August 31, 2005 / Rules and Regulations 

7One commenter asked whether an association 

could finalize an opening or relocation of a branch 

if it initiated a consultation, but the regional office 

indicated that it opposed the change. Under the 

new procedures, OTS does not have the ability to 

disapprove certain branch changes as a part of its 

application process. This, however, in no way 

impacts OTS’s supervisory responsibilities. Thus, if 

a regional office informs a savings association that 

a proposed branch change would raise significant 

safety and soundness concerns and the savings 

association ignores these concerns, OTS may take 

appropriate supervisory action. Of course, OTS may 

also take appropriate supervisory actions if it is not 

consulted prior to the proposed branch change, and 

later finds that the branching raises significant 

safety and soundness issues. 

8Applications Processing Handbook, Branch 

Activity Guidelines, § 100.8–100.9 (An institution 

should provide a statement of the impact of the 

proposed branch or office change on the human 

environment, including information on changes in 

the air and/or water quality, noise levels, energy 

consumption, congestion of population, solid waste 

disposal, or environmental integrity of private land 

within the meaning of the NEPA, 42 USC 4321–

4347. To review the NEPA, implementing 

regulations, and other information, refer to the Web 

sites for the Council on Environmental Quality 

(CEQ) at http://www.whitehouse.gov/ceq or 

NEPAnet at http://ceq.eh.doe.gov/nepa/ 

nepanet.htm. 9 12 CFR 516.1(b)(4) and (c) (2005). 

branches where applications and 

notices are no longer required. To 

address this concern, the commenter 

suggested that OTS require a federal 

savings association to notify the 

appropriate regional office after a 

branch is opened. 

This requirement is unnecessary. OTS 

has revised its internal examination 

procedures to ensure that its branch and 

home office location information is 

accurate and that associations comply 

with all branching restrictions 

contained in the HOLA and OTS 

regulations. In addition, OTS continues 

to encourage all federal savings 

associations to consult with their 

appropriate regional office before they 

open or relocate any office for which a 

branch application or notice is not 

required.7 While federal savings 

associations are not required to file 

applications and notices for many 

branch office changes, OTS and others 

will continue to have access to 

information on branch offices. All 

savings associations annually must send 

branch office data to OTS. This data 

may be accessed on the OTS home page 

under Data and Research>Corporate 

Directories>Summary of Deposits 

(www.ots.treas.gov/ 

pagehtml.cfm?catNumber=25). Internet 

users may search for office deposits by 

institution, state, county or city. As a 

result, the general public, regulators, 

and bankers may: (1) Find the branches 

nearest to their home or office; (2) 

Evaluate an institution’s share of the 

deposits in a particular market area; and 

(3) Analyze deposit information on 

existing branches in a particular market. 

3. Approval standards for branch and 

home offices. 

In addition to the burden-reducing 

changes described above, the interim 

final rule rewrote and substantially 

reorganized the branch and home office 

rules to provide greater clarity. The 

interim final rule restated the approval 

standards in the prior rule. 

The preamble noted that OTS 

considers other issues in its review of 

branch and home office applications, 

including compliance with the National 

Environmental Policy Act (NEPA) (42 

U.S.C. 3421 et seq.) and the National 

Historic Preservation Act (NHPA) (16 

U.S.C. 470). OTS requested comment on 

whether the final rule should cite these 

factors. Commenters urged OTS to 

include references to these laws in the 

final rule. These commenters observed 

that a comprehensive rule would enable 

savings associations to address all issues 

appropriately in their initial 

applications and to avoid processing 

delays. OTS has revised the final rule to 

state specifically that OTS will review 

branch and home office applications 

and notices under the NEPA and NHPA. 

One commenter suggested that the 

final rule should set out the standards 

that OTS will consider in determining 

whether an application has sufficiently 

addressed NEPA. OTS declines to put 

this level of detail into its rules because 

most branch and home office changes 

have little impact on the environment 

and because guidance on these matters 

is provided in OTS Handbooks and in 

other agencies’ rules.8

B. Agency Offices 

The interim final rule also revised 

OTS agency office rules. Under the prior 

rule, a federal savings association could 

establish or maintain an agency office to 

service and originate (but not approve) 

loans and contracts; to manage or sell 

real estate owned by the federal savings 

association; and to conduct fiduciary 

activities or activities ancillary to the 

association’s fiduciary business. See 12 

CFR 545.96 (2004). All other activities at 

agency offices, however, required prior 

OTS approval. 

Before the interim final rule, most 

requests for additional activities at 

agency offices involved the approval of 

loans and contracts. Because these 

requests did not present any supervisory 

concerns and imposed an unnecessary 

burden on federal savings associations, 

the interim final rule permitted savings 

associations to conduct these activities 

without prior OTS approval. 

Commenters generally supported this 

rule change, and OTS has adopted it as 

final. 

The interim final rule asked whether 

there were other activities that should 

be added to the list of permissible 

agency office activities. One commenter 

observed that deposit marketing 

activities and other activities that 

support the deposit business (but do not 

involve the taking of deposits), do not 

present safety and soundness concerns 

and should be added to the list of 

permissible agency office activities. 

The final rule does not include the 

suggested change. It is unclear what 

activities are encompassed within the 

phrase ‘‘deposit marketing and other 

activities in support of deposit 

business.’’ In light of this ambiguity and 

because taking deposits is an integral 

part of a savings association’s branch 

activities, OTS will continue to consider 

these activities on a case-by-case basis. 

OTS notes, however, that a federal 

savings association that wants to make 

advertising materials or deposit 

applications available in an existing 

agency office would generally not be 

required to file an additional agency 

notice. 

C. Application Processing 

12 CFR part 516 contains OTS 

procedures for processing applications, 

notices, and other filings. While the 

rules in part 516 are applicable to most 

applications, regulations for specific 

types of applications may prescribe 

different processing procedures and 

timeframes.9 OTS reviewed the various 

processing procedures and timeframes, 

and amended the rules to synchronize 

and harmonize these procedures and to 

reduce confusion. These changes 

included: 

• Conforming the timing 

requirements for publications of 

newspaper notices under the mutual to 

stock conversion rules and the change of 

control rules to those applicable to other 

applications. 

• Establishing a uniform public 

comment period for all applications. 

This comment period extends for 30 

days after the date of publication of the 

initial public notice. 

• Providing OTS with discretion to 

consider or reject late-filed comments. 

• Eliminating duplicative or 

unnecessarily burdensome rules in the 

OTS acquisition of control regulations 

and mutual holding company 

reorganization procedures, and 

clarifying the scope of application of 

certain procedures under the Bank 

Merger Act rules. 

Federal Register / Vol. 70, No. 168 / Wednesday, August 31, 2005 / Rules and Regulations 51585 

10Commenters suggested several changes already 

included in the interim final rule. For example, the 

interim final rule eliminated the requirement for 

publication of holding company applications in the 

‘‘business section’’ of a newspaper, and conformed 

the publication requirements for all applications to 

the extent permitted by statute. 

11 12 CFR 516.170 and 516.180 (2004). 12Compare 12 CFR 338.8 (2005) (FDIC). 

13Title IV of the National Housing Act, including 

section 407, was repealed in 1989. Pub. L. 101–73, 

Title IV, § 407, Aug. 9, 1989, 103 Stat. 363. 

14The statute, for example, does not require any 

reports from savings and loan holding companies, 

and requires thrift reports only for changes of 

officers and directors that follow a change of 

control. 

15See e.g., 12 U.S.C. 1831o(e)(2)(C) (prompt 

corrective action) and OTS implementing 

regulations at 12 CFR 565.5 (2005). 

Commenters generally supported 

these amendments. Accordingly, OTS 

adopts the interim rule without 

change.10

D. Application Processing—Formal and 

Informal Meetings 

OTS rules at 12 CFR part 516, subpart 

D provide for meetings in connection 

with OTS applications. Under the prior 

rule, OTS was generally required to 

arrange an informal meeting to discuss 

issues raised in an application if any 

commenter on the application requested 

the meeting. Following that informal 

meeting, OTS was generally required to 

arrange a formal meeting, if an informal 

meeting participant requested the 

meeting.11

The interim final rule eliminated the 

requirement that OTS must hold formal 

and informal meetings whenever a 

commenter requests the meeting. Under 

the interim final rule, OTS will grant 

meeting requests only when it finds that 

written submissions are insufficient to 

address facts or issues raised by an 

application, or it otherwise determines 

that a meeting will benefit its decisionmaking process. OTS may limit the 

issues to be considered at the meeting 

to issues that OTS decides are relevant 

or material. 

Savings association and trade 

association commenters generally 

supported this rule change. Community 

groups and individual commenters, 

however, opposed this change. These 

commenters argued that the informal 

and formal meeting process provided an 

opportunity for community groups and 

thrifts to meet with the agency to 

discuss CRA and anti-predatory lending 

matters. They asserted that written 

comments or one meeting did not 

ensure that these issues are adequately 

vetted. 

The interim final rule appropriately 

balanced the interests of applicants and 

public commenters by providing OTS 

with the discretion to conduct a meeting 

whenever it finds that written 

submissions are insufficient to address 

facts or issues raised by an application, 

or it otherwise determines that a 

meeting will benefit its decision-making 

process. The rule preserves the ability of 

community groups and others to 

communicate their concerns to the 

agency. The interim final rule 

specifically permits commenters to file 

written comments, to request a meeting, 

to submit a written description of the 

nature of the issues or facts they wish 

to discuss at the meeting, and to explain 

the reasons why written submissions are 

insufficient to adequately address these 

issues and facts. Based on these 

submissions, OTS will be able to 

consider the circumstances of each 

application and determine whether a 

meeting is necessary to further explore 

CRA, fair lending compliance, and other 

issues. This process conforms closely to 

the procedures used by the other 

banking agencies in their application 

proceedings. OTS believes that the 

interim final rule appropriately 

addressed the needs of all parties and 

adopts it as final without change. 

E. Nondiscriminatory Advertising 

OTS’s former rule at 12 CFR 528.4 

(2004) required savings associations to 

include facsimiles of the equal housing 

lender logotype and legend in all 

advertising ‘‘other than for savings.’’

Because this requirement required a 

logotype in advertising for lending 

unrelated to housing, such as credit card 

loans, commercial loans, and 

educational loans, the interim final rule 

amended § 528.4 to require displays of 

the equal housing logotype and legend 

only in advertisements for loans for the 

purpose of purchasing, constructing, 

improving, repairing, or maintaining a 

dwelling or loans secured by a dwelling. 

Several commenters supported this 

change. One, however, noted that the 

equal housing logotype is an important 

symbol regarding the commitment to 

non-discrimination. This commenter 

argued that the logotype should be 

displayed on advertisements for all 

lending. 

The equal housing lender logotype 

does not provide relevant information to 

individuals shopping for loans 

unrelated to housing. As a result, the 

former rule imposed an unnecessary 

burden on thrifts who must provide the 

information, and on consumers who 

must process this information in 

addition to the volume of other data that 

they receive in connection with 

consumer and commercial loan 

applications. Accordingly, OTS 

continues to believe that the former rule 

was too broad, imposed unnecessary 

burdens, and should be eliminated. OTS 

notes that this rule is consistent with 

related rules issued by the other banking 

agencies, which require the display of 

the equal housing lender logotype and 

legend only with respect to 

advertisements for housing-related 

loans.12

F. Other Changes 

In addition to the burden-reducing 

changes discussed above, the interim 

final rule eliminated the following 

regulations: 

• 12 CFR 545.74 (2004). This rule 

imposed various requirements on 

securities brokerage activities of service 

corporations. The requirements were 

obsolete, conflicted with the current law 

and guidance, and were confusing to the 

industry. 

• 12 CFR 563.181 (2004). This rule 

required mutual savings associations to 

report changes in control. It 

implemented section 407 of the 

National Housing Act, which was 

repealed in 1989.13

• 12 CFR 563.183 (2004). This rule 

required savings associations and 

savings and loan holding companies to 

report changes of chief executive 

officers and directors that occur within 

stated time periods before or after a 

change of control. This rule 

implemented 12 U.S.C. 1817(j)(12), 

which requires notices under more 

limited circumstances.14 OTS will rely 

on the more limited statutory 

requirements. 

• 12 CFR 567.13 (2004). This rule 

addressed capital maintenance 

agreements and was obsolete in light of 

other statutory and regulatory 

protections.15

No commenter objected to these 

deletions and revisions. Accordingly, 

OTS adopts these rule changes as final. 

III. Regulatory Analysis 

A. Paperwork Reduction Act 

The information collection 

requirements contained in the final rule 

are virtually identical to those included 

in the November 24, 2004 interim final 

rule. While OTS has modified the 

requirements in minor ways, the burden 

on respondents remains unchanged 

from those in the earlier rule. The Office 

of Management and Budget (OMB) 

approved these collections of 

information on November 18, 2004 

under OMB Control No. 1550–0005; on 

January 7, 2005 under OMB Control No. 

1550–0014; and on January 19, 2005 

under OMB Control Nos. 1550–0006, 

1550–0011, 1550–0013, 1550–0015, 

1550–0016, 1550–0018, 1550–0056 and 

51586 Federal Register / Vol. 70, No. 168 / Wednesday, August 31, 2005 / Rules and Regulations 

1550–0072. Respondents/recordkeepers 

are not required to respond to any 

collection of information unless it 

displays a currently valid OMB control 

number. 

B. Regulatory Flexibility Act 

Pursuant to section 605(b) of the 

Regulatory Flexibility Act, OTS certifies 

that this final rule will not have a 

significant economic impact on a 

substantial number of small entities. 

The rule makes various changes to OTS 

application and reporting requirements 

that reduce regulatory burdens on all 

savings associations, including small 

savings associations. These changes will 

not have a significant impact on small 

institutions. Accordingly, OTS has 

determined that regulatory flexibility 

analysis is not required. 

C. Executive Order 12866 

The Director of OTS has determined 

that this final rule does not constitute a 

‘‘significant regulatory action’’ for 

purposes of Executive Order 12866. 

D. Unfunded Mandates Reform Act of 

1995 

Section 202 of the Unfunded 

Mandates Reform Act of 1995, Pub. L. 

104–4 (Unfunded Mandates Act) 

requires an agency to prepare a 

budgetary impact statement before 

promulgating a rule that includes a 

federal mandate that may result in 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any one year. If a budgetary impact 

statement is required, section 205 of the 

Unfunded Mandates Act also requires 

an agency to identify and consider a 

reasonable number of regulatory 

alternatives before promulgating a rule. 

The final rule makes various changes 

that should reduce regulatory burdens 

on all savings associations. Accordingly, 

OTS has determined that this rule will 

not result in expenditures by State, 

local, and tribal governments, or by the 

private sector, of $100 million or more 

and that a budgetary impact statement is 

not required. 

List of Subjects 

12 CFR Part 506 

Reporting and recordkeeping 

requirements. 

12 CFR Part 516 

Administrative practice and 

procedure, Reporting and recordkeeping 

requirements, Savings associations. 

12 CFR Part 528 

Advertising, Aged, Civil rights, Credit, 

Equal employment opportunity, Fair 

housing, Home mortgage disclosure, 

Individuals with disabilities, Marital 

status discrimination, Mortgages, 

Religious discrimination, Reporting and 

recordkeeping requirements, Savings 

associations, Sex discrimination, Signs 

and symbols. 

12 CFR Parts 543 and 544 

Reporting and recordkeeping 

requirements, Savings associations. 

12 CFR Part 545 

Accounting, Consumer protection, 

Credit, Electronic funds transfers, 

Investments, Reporting and 

recordkeeping requirements, Savings 

associations. 

12 CFR Parts 552 and 563b 

Reporting and recordkeeping 

requirements, Savings associations, 

Securities. 

12 CFR Part 559 

Reporting and recordkeeping 

requirements, Savings associations, 

Subsidiaries. 

12 CFR Part 563 

Accounting, Advertising, Crime, 

Currency, Investments, Reporting and 

recordkeeping requirements, Savings 

associations, Securities, Surety bonds. 

12 CFR Part 567 

Capital, Reporting and recordkeeping 

requirements, Savings associations. 

12 CFR Part 574 

Administrative practice and 

procedure, Holding companies, 

Reporting and recordkeeping 

requirements, Savings associations, 

Securities. 

12 CFR Part 575 

Administrative practice and 

procedure, Capital, Holding companies, 

Reporting and recordkeeping 

requirements, Savings associations, 

Securities. 

Authority and Issuance 

■ Accordingly, the interim final rule 

amending 12 CFR parts 506, 516, 528, 

543, 544, 545, 552, 559, 563, 563b, 567, 

574, and 575, which was published at 

69 FR 68239 on November 24, 2004, is 

adopted as final with the following 

changes: 

PART 545—FEDERAL SAVINGS 

ASSOCIATIONS—OPERATIONS 

■ 1. The authority citation for part 545 

continues to read as follows: 

Authority: 12 U.S.C. 1462a, 1463, 1464, 

and 1828. 

■ 2. Amend § 545.93 by redesignating 

paragraph (b)(3)(iii) as paragraph 

(b)(3)(iv) and adding a new paragraph 

(b)(3)(iii) to read as follows: 

§ 545.93 Application and notice 

requirements for branch and home offices. 

* * * * * 

(b) * * * 

(3) * * * 

(iii) If you intend to change the 

location of an existing office, you posted 

a notice of your intent in a prominent 

location in the existing office to be 

relocated. You must post the notice for 

30 days from the date of publication of 

the initial public notice described in 

paragraph (b)(3)(ii) of this section. 

* * * * * 

■ 3. Amend § 545.95 by revising the 

heading and adding a new paragraph 

(b)(1)(iii) to read as follows: 

§ 545.95 What processing procedures 

apply to my home or branch office 

application or notice? 

* * * * * 

(b) * * * 

(1) * * * 

(iii) OTS will review the application 

or notice under the National 

Environmental Policy Act (42 U.S.C. 

3421 et seq.) and the National Historic 

Preservation Act (16 U.S.C. 470). 

* * * * * 

Dated: August 25, 2005. 

By the Office of Thrift Supervision. 

John M. Reich, 

Director. 

[FR Doc. 05–17334 Filed 8–30–05; 8:45 am] 

BILLING CODE 6720–01–P 

FARM CREDIT ADMINISTRATION 

12 CFR Part 615 

RIN 3052–AC22 

Funding and Fiscal Affairs, Loan 

Policies and Operations, and Funding 

Operations; Investments, Liquidity, 

and Divestiture 

AGENCY: Farm Credit Administration. 

ACTION: Final rule. 

SUMMARY: The Farm Credit 

Administration (FCA, we, or our) issues 

this final rule amending our liquidity 

reserve requirement for the banks of the 

Farm Credit System (System) to ensure 

the banks have adequate liquidity. The 

final rule increases the minimum 

liquidity reserve requirement to 90 days, 

increases the eligible investment limit to 

35 percent of total outstanding loans 

and requires Farm Credit banks to 

develop and maintain liquidity