This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

59987 

Vol. 70, No. 198 

Friday, October 14, 2005 

1The agencies must make the exception no later 

than 30 months after the date on which the 

President determines that a major disaster exists in 

the area. 

2Those counties and parishes designated by 

FEMA as receiving ‘‘Individual and Public 

Assistance (all categories)’’ and ‘‘Individual and 

Public Assistance (Categories A and B).’’ 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Part 34 

FEDERAL RESERVE SYSTEM 

12 CFR Part 225 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 323 

DEPARTMENT OF THE TREASURY 

Office of Thrift Supervision 

12 CFR Part 564 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 722 

Real Estate Appraisal Exceptions in 

Major Disaster Areas 

AGENCIES: Office of the Comptroller of 

the Currency, Treasury Department 

(OCC); Board of Governors of the 

Federal Reserve System (Board); Federal 

Deposit Insurance Corporation (FDIC); 

Office of Thrift Supervision, Treasury 

Department (OTS); and National Credit 

Union Administration (NCUA), 

collectively referred to as ‘‘the 

Agencies.’’ 

ACTION: Statement and Order; temporary 

exceptions. 

SUMMARY: Section 2 of the Depository 

Institutions Disaster Relief Act of 1992 

(DIDRA) authorizes the Agencies to 

make exceptions to statutory and 

regulatory requirements relating to 

appraisals for certain transactions. The 

exceptions are available for transactions 

that involve real property in major 

disaster areas when the exceptions 

would facilitate recovery from the 

disaster and would be consistent with 

safety and soundness. In this notice, the 

Agencies grant exceptions for certain 

real estate-related transactions in areas 

affected by Hurricanes Katrina and Rita. 

The expiration dates for the exceptions 

are set out in the SUPPLEMENTARY

INFORMATION section. 

DATES: This order is effective on October 

14, 2005 and expires for specific areas 

on the dates indicated in the 

SUPPLEMENTARY INFORMATION section. 

FOR FURTHER INFORMATION CONTACT: 

OCC 

Dena G. Patel, Credit Risk Specialist, 

(202) 874–5170, Office of the Chief 

National Bank Examiner; or Sue 

Auerbach, Counsel, (202) 874–5300, 

Chief Counsel’s Office, 250 E Street, 

SW., Washington, DC 20219. 

Board 

Virginia M. Gibbs, Senior Supervisory 

Financial Analyst, (202) 452–2521, 

Division of Banking Supervision and 

Regulation; or April Snyder, Attorney, 

(202) 452–3099, Legal Division. Mail: 

Board of Governors of the Federal 

Reserve System, 20th Street and 

Constitution Avenue, NW., Washington, 

DC, 20551. 

FDIC 

James D. Leitner, Examination 

Specialist, (202) 898–6790, Division of 

Supervision and Consumer Protection; 

or Mark G. Flanigan, Counsel, (202) 

898–7426, Legal Division, 550 17th 

Street, NW., Washington, DC 20429. 

OTS 

Deborah Merkle, Project Manager, 

Credit Policy, (202) 906–5688; Karen 

Osterloh, Special Counsel, Regulation 

and Legislation Division, Chief 

Counsel’s Office, (202) 906–6639, Office 

of Thrift Supervision, 1700 G Street, 

NW., Washington, DC 20552. 

NCUA 

Regina Metz, Staff Attorney, Office of 

General Counsel, (703) 518–6540; or 

Anthony LaCreta, Deputy Director, 

Office of Examination and Insurance, 

(703) 518–6360, 1775 Duke Street, 

Alexandria, VA 22314. 

SUPPLEMENTARY INFORMATION: 

Statement 

Section 2 of DIDRA, 12 U.S.C. 3352, 

authorizes the Agencies to make 

exceptions to statutory and regulatory 

appraisal requirements for certain 

transactions. These exceptions are 

available for real property located in 

areas that the President has determined, 

pursuant to 42 U.S.C. 5170, that a major 

disaster exists, provided that the 

exception would facilitate recovery from 

the major disaster and is consistent with 

safety and soundness.1 Such exceptions 

expire not later than three years after the 

date of the President’s determination 

that a major disaster exists in the area. 

On August 29, and September 24, 

2005, the President declared several 

areas in certain Alabama, Mississippi, 

and Texas counties and Louisiana 

parishes as Major Disaster Areas and 

individual assistance was authorized by 

the Federal Emergency Management 

Agency (‘‘FEMA’’) as a result of the 

extensive damage caused by Hurricanes 

Katrina and Rita. The Agencies believe 

that granting relief from the appraisal 

requirements for real estate transactions 

in certain designated disaster areas is 

consistent with the provisions of 

DIDRA.2

The Agencies have determined that 

the disruption of real estate markets in 

those FEMA-designated disaster areas 

interferes with the ability of depository 

institutions to obtain appraisals that 

comply with statutory and regulatory 

requirements. Therefore, the Agencies 

have determined that the disruption 

may impede institutions in making 

loans and engaging in other transactions 

that would aid in the reconstruction and 

rehabilitation of the affected areas. 

Accordingly, the Agencies have 

determined that recovery from these two 

major disasters would be facilitated by 

excepting certain transactions involving 

real estate located in the areas directly 

affected by the hurricanes from the real 

estate appraisal requirements of Title XI 

of the Financial Institutions Reform, 

Recovery, and Enforcement Act of 1989 

(FIRREA), as amended, and the 

regulations promulgated thereunder. 

59988 Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Rules and Regulations 

3Those areas designated by FEMA as receiving 

‘‘Individual and Public Assistance (all categories)’’

and ‘‘Individual and Public Assistance (Categories 

A and B)’’ in Alabama, Mississippi, and Texas 

counties and Louisiana parishes, as listed in the 

appendix to this order. 

This order has the effect of excepting 

the transactions specified below from 

the definition of ‘‘federally related 

transactions’’ in Title XI of FIRREA and 

the agencies’ appraisal regulations, and 

thereby from the statutory and 

regulatory real estate appraisal 

requirements for such transactions. 

The Agencies also have determined 

that the exceptions are consistent with 

safety and soundness, subject to the 

requirement that the depository 

institution’s records relating to any 

excepted transaction appropriately 

document the following: (1) The 

property involved was directly affected 

by the major disaster or the transaction 

would facilitate recovery from the 

disaster; (2) there is a binding 

commitment to fund the transaction that 

is made within three years after the date 

the major disaster was declared; and (3) 

the value of the real property supports 

the institution’s decision to enter into 

the transaction. In addition, the 

transaction must continue to be subject 

to review by management and by the 

Agencies in the course of examinations 

of the institution. 

Expiration Dates 

Exceptions provided under this order 

expire not later than three years after the 

date on which the President determines, 

pursuant to section 401 of the Robert T. 

Stafford Disaster Relief and Emergency 

Assistance Act, 42 U.S.C. 5170 

(DREAA), that a major disaster exists in 

the area. Accordingly, exceptions for the 

major disasters declared due to 

Hurricane Katrina expire on August 29, 

2008, in Alabama, Mississippi and 

Louisiana; and exceptions for the major 

disasters declared due to Hurricane Rita 

expire on September 24, 2008, in 

Louisiana and Texas. 

Order 

In accordance with section 2 of 

DIDRA, relief is hereby granted from the 

provisions of Title XI of FIRREA and the 

agencies’ appraisal regulations for any 

real estate-related financial transaction 

that requires the services of an appraiser 

under those provisions, provided that: 

(1) The transaction involves real 

property located in an area that the 

President has determined, pursuant to 

section 401 of DREAA, is a major 

disaster area as a result of Hurricane 

Katrina (August 2005) in Alabama, 

Louisiana, and Mississippi; or as a 

result of Hurricane Rita (September 

2005) in Louisiana and Texas, and has 

been designated eligible for federal 

assistance by FEMA; 3

(2)(a) The real property involved was 

directly affected by the major disaster; 

or 

(2)(b) The real property involved was 

not directly affected by the major 

disaster but the transaction would 

facilitate recovery from the disaster; 

(3) There is a binding commitment to 

fund a transaction that is made within 

three years after the date the major 

disaster was declared by the President; 

and 

(4) The institution retains in its files, 

for examiner review, appropriate 

documentation indicating that the 

requirements of Items (1)–(3) above are 

met and supporting the valuation of the 

real property involved in the 

transaction. 

Appendix 

Counties and parishes designated by FEMA 

as receiving ‘‘Individual and Public 

Assistance (all categories)’’ and ‘‘Individual 

and Public Assistance (Categories A and B)’’

Hurricane Katrina 

Alabama: Baldwin, Choctaw, Clarke, Greene, 

Hale, Mobile, Pickens, Sumter, Tuscaloosa 

and Washington 

Louisiana: Acadia, Ascension, Assumption, 

Calcasieu, Cameron, East Baton Rouge, East 

Feliciana, Iberia, Iberville, Jefferson, 

Jefferson Davis, Lafayette, Lafourche, 

Livingston, Orleans, Pointe Coupee, 

Plaquemines, St. Bernard, St. Charles, St. 

Helena, St. James, St. John the Baptist, St. 

Mary, St. Martin, St. Tammany, 

Tangipahoa, Terrebonne, Vermilion, 

Washington, West Baton Rouge, and West 

Feliciana 

Mississippi: Adams, Amite, Attala, Choctaw, 

Claiborne, Clarke, Copiah, Covington, 

Forrest, Franklin, George, Greene, 

Hancock, Harrison, Hinds, Jackson, Jasper, 

Jefferson, Jefferson Davis, Jones, Kemper, 

Lamar, Lauderdale, Lawrence, Leake, 

Lincoln, Lowndes, Madison, Marion, 

Neshoba, Newton, Noxubee, Oktibbeha, 

Pearl River, Perry, Pike, Rankin, Scott, 

Simpson, Smith, Stone, Walthall, Warren, 

Wayne, Wilkinson, Winston, and Yazoo. 

Hurricane Rita 

Louisiana: Acadia, Allen, Beauregard, 

Calcasieu, Cameron, Iberia, Jefferson Davis, 

Lafayette, Lafourche, St. Mary, Terrebonne, 

and Vermilion 

Texas: Chambers, Galveston, Hardin, Jasper, 

Jefferson, Liberty, Newton, Orange, and 

Tyler 

Dated: October 5, 2005. 

John C. Dugan, 

Comptroller of the Currency. 

By order of the Board of Governors of the 

Federal Reserve System. 

Dated: October 4, 2005. 

Jennifer J. Johnson, 

Secretary of the Board. 

By order of the Board of Directors. 

Dated at Washington, DC, this 4th day of 

October, 2005. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

Dated: October 6, 2005. 

By the Office of Thrift Supervision. 

John M. Reich, 

Director. 

By order of the National Credit Union 

Administration. 

Dated: October 4, 2005. 

Mary F. Rupp, 

Secretary of the Board. 

[FR Doc. 05–20583 Filed 10–13–05; 8:45 am] 

BILLING CODE 6714–01–P; 4810–33–P; 6210–01–P; 

6720–01–P; 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 25 

[Docket No. NM334; Special Conditions No. 

25–305–SC] 

Special Conditions: Dassault-Aviation 

Mystere-Falcon 50 Airplanes; HighIntensity Radiated Fields (HIRF) 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final special conditions; request 

for comments. 

SUMMARY: These special conditions are 

issued for Dassault-Aviation MystereFalcon 50 airplanes modified by 

Chippewa Aerospace, Inc. These 

modified airplanes will have a novel or 

unusual design feature when compared 

to the state of technology envisioned in 

the airworthiness standards for 

transport category airplanes. The 

modification incorporates the 

installation of a Honeywell Primus Epic 

Control Display System for Retrofit 

(CDS–R) that performs critical 

functions. The applicable airworthiness 

regulations do not contain adequate or 

appropriate safety standards for the 

protection of these systems from the 

effects of high-intensity radiated fields 

(HIRF). These 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: The effective date of these 

special conditions is October 4, 2005. 

Comments must be received on or 

before November 14, 2005.