Federal Register / Vol. 72, No. 30 / Wednesday, February 14, 2007 / Notices 7121 

the agencies and will be summarized or 

included in the agencies’ requests for 

OMB approval. All comments will 

become a matter of public record. 

Dated: February 8, 2007. 

Stuart E. Feldstein, 

Assistant Director, Legislative and Regulatory 

Activities Division, Office of the Comptroller 

of the Currency. 

Board of Governors of the Federal Reserve 

System, February 6, 2007. 

Jennifer J. Johnson, 

Secretary of the Board. 

Dated at Washington, DC, this 8th day of 

February, 2007. 

Federal Deposit Insurance Corporation. 

Valerie J. Best, 

Assistant Executive Secretary. 

Dated: February 6, 2007. 

Deborah Dakin, 

Senior Deputy Chief Counsel, Regulations and 

Legislation Division, Office of Thrift 

Supervision. 

[FR Doc. 07–639 Filed 2–13–07; 8:45 am] 

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

6720–01–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

FEDERAL RESERVE SYSTEM 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

DEPARTMENT OF THE TREASURY 

Office of Thrift Supervision 

Agency Information Collection 

Activities: Submission for OMB 

Review; Joint Comment Request 

AGENCIES: Office of the Comptroller of 

the Currency (OCC), Treasury; Board of 

Governors of the Federal Reserve 

System (Board); Federal Deposit 

Insurance Corporation (FDIC); and 

Office of Thrift Supervision (OTS), 

Treasury. 

ACTION: Notice of information 

collections to be submitted to OMB for 

review and approval under the 

Paperwork Reduction Act. 

SUMMARY: In accordance with the 

requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

chapter 35), the OCC, the Board, the 

FDIC, and the OTS (the ‘‘agencies’’) may 

not conduct or sponsor, and the 

respondent is not required to respond 

to, an information collection unless it 

displays a currently valid Office of 

Management and Budget (OMB) control 

number. On October 31, 2006, the 

agencies, under the auspices of the 

Federal Financial Institutions 

Examination Council (FFIEC), requested 

public comment for 60 days on a 

proposal to extend, with revision, the 

Consolidated Reports of Condition and 

Income (Call Report) for banks and the 

Thrift Financial Report (TFR) for 

savings associations, which are 

currently approved collections of 

information. After considering the 

comments, the FFIEC and the agencies 

have modified some of the proposed 

changes, which will be implemented 

March 31, 2007, as proposed. 

Additionally, OTS will incorporate in 

its OMB submission the proposed TFR 

changes published in the Federal 

Register on December 1, 2006 (71 FR 

69619). These changes will also be 

implemented March 31, 2007, as 

proposed. 

DATES: Comments must be submitted on 

or before March 16, 2007. 

ADDRESSES: Interested parties are 

invited to submit written comments to 

any or all of the agencies. All comments, 

which should refer to the OMB control 

number(s), will be shared among the 

agencies. 

OCC: Communications Division, 

Office of the Comptroller of the 

Currency, Public Information Room, 

Mailstop 1–5, Attention: 1557–0081, 

250 E Street, SW., Washington, DC 

20219. In addition, comments may be 

sent by fax to (202) 874–4448, or by 

electronic mail to 

regs.comments@occ.treas.gov. You can 

inspect and photocopy the comments at 

the OCC’s Public Information Room, 250 

E Street, SW., Washington, DC 20219. 

You can make an appointment to 

inspect the comments by calling (202) 

874–5043. 

Board: You may submit comments, 

which should refer to ‘‘Consolidated 

Reports of Condition and Income, 7100–

0036,’’ by any of the following methods: 

• Agency Web Site: http:// 

www.federalreserve.gov. Follow the 

instructions for submitting comments 

on the http://www.federalreserve.gov/ 

generalinfo/foia/ProposedRegs.cfm. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• E-mail: 

regs.comments@federalreserve.gov. 

Include docket number in the subject 

line of the message. 

• FAX: 202–452–3819 or 202–452–

3102. 

• Mail: Jennifer J. Johnson, Secretary, 

Board of Governors of the Federal 

Reserve System, 20th Street and 

Constitution Avenue, NW., Washington, 

DC 20551. 

All public comments are available 

from the Board’s Web site at http:// 

www.federalreserve.gov/generalinfo/ 

foia/ProposedRegs.cfm as submitted, 

unless modified for technical reasons. 

Accordingly, your comments will not be 

edited to remove any identifying or 

contact information. Public comments 

may also be viewed electronically or in 

paper in Room MP–500 of the Board’s 

Martin Building (20th and C Streets, 

NW) between 9 a.m. and 5 p.m. on 

weekdays. 

FDIC: You may submit comments, 

which should refer to ‘‘Consolidated 

Reports of Condition and Income, 3064–

0052,’’ by any of the following methods: 

• http://www.FDIC.gov/regulations/ 

laws/federal/notices.html. 

• E-mail: comments@FDIC.gov. 

Include ‘‘Consolidated Reports of 

Condition and Income, 3064–0052’’ in 

the subject line of the message. 

• Mail: Steven F. Hanft (202–898–

3907), Clearance Officer, Attn: 

Comments, Room MB–2088, Federal 

Deposit Insurance Corporation, 550 17th 

Street, NW., Washington, DC 20429. 

• Hand Delivery: Comments may be 

hand delivered to the guard station at 

the rear of the 550 17th Street Building 

(located on F Street) on business days 

between 7 a.m. and 5 p.m. 

Public Inspection: All comments 

received will be posted without change 

to http://www.fdic.gov/regulations/laws/ 

federal/notices.html including any 

personal information provided. 

Comments may be inspected at the FDIC 

Public Information Center, Room E–

1002, 3501 Fairfax Drive, Arlington, VA 

22226, between 9 a.m. and 5 p.m. on 

business days. 

OTS: You may submit comments, 

identified by ‘‘1550–0023 (TFR: March 

2007 Revisions),’’ by any of the 

following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• E-mail address: 

infocollection.comments@ots.treas.gov. 

Please include ‘‘1550–0023 (TFR: March 

2007 Revisions)’’ in the subject line of 

the message and include your name and 

telephone number in the message. 

• Fax: (202) 906–6518. 

• Mail: Information Collection 

Comments, Chief Counsel’s Office, 

Office of Thrift Supervision, 1700 G 

Street, NW., Washington, DC 20552, 

Attention: ‘‘1550–0023 (TFR: March 

2007 Revisions).’’

• Hand Delivery/Courier: Guard’s 

Desk, East Lobby Entrance, 1700 G 

Street, NW., from 9 a.m. to 4 p.m. on 

business days, Attention: Information 


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7122 Federal Register / Vol. 72, No. 30 / Wednesday, February 14, 2007 / Notices 

Collection Comments, Chief Counsel’s 

Office, Attention: ‘‘1550–0023 (TFR: 

March 2007 Revisions).’’

Instructions: All submissions received 

must include the agency name and OMB 

Control Number for this information 

collection. All comments received will 

be posted without change to the OTS 

Internet site at http://www.ots.treas.gov/ 

pagehtml.cfm?catNumber=67&an=1, 

including any personal information 

provided. 

Docket: For access to the docket to 

read background documents or 

comments received, go to http:// 

www.ots.treas.gov/ 

pagehtml.cfm?catNumber=67&an=1. In 

addition, you may inspect comments at 

the Public Reading Room, 1700 G Street, 

NW., 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.) We schedule 

appointments on business days between 

10 a.m. and 4 p.m. In most cases, 

appointments will be available the next 

business day following the date we 

receive a request. 

Additionally, commenters may send a 

copy of their comments to the OMB 

desk officer for the agencies by mail to 

the Office of Information and Regulatory 

Affairs, U.S. Office of Management and 

Budget, New Executive Office Building, 

Room 10235, 725 17th Street, NW., 

Washington, DC 20503, or by fax to 

(202) 395–6974. 

FOR FURTHER INFORMATION CONTACT: For 

further information about the revisions 

discussed in this notice, please contact 

any of the agency clearance officers 

whose names appear below. In addition, 

copies of the Call Report forms can be 

obtained at the FFIEC’s Web site 

(http://www.ffiec.gov/ 

ffiec_report_forms.htm). Copies of the 

TFR can be obtained from the OTS’s 

Web site (http://www.ots.treas.gov/ 

main.cfm?catNumber=2&catParent=0). 

OCC: Mary Gottlieb, OCC Clearance 

Officer, or Camille Dickerson, (202) 

874–5090, Legislative and Regulatory 

Activities Division, Office of the 

Comptroller of the Currency, 250 E 

Street, SW., Washington, DC 20219. 

Board: Michelle E. Shore, Federal 

Reserve Board Clearance Officer, (202) 

452–3829, Division of Research and 

Statistics, Board of Governors of the 

Federal Reserve System, 20th and C 

Streets, NW., Washington, DC 20551. 

Telecommunications Device for the Deaf 

(TDD) users may call (202) 263–4869. 

FDIC: Steven F. Hanft, Paperwork 

Clearance Officer, (202) 898–3907, Legal 

Division, Federal Deposit Insurance 

Corporation, 550 17th Street, NW., 

Washington, DC 20429. 

OTS: Marilyn K. Burton, OTS 

Clearance Officer, at 

marilyn.burton@ots.treas.gov, (202) 

906–6467, or facsimile number (202) 

906–6518, Litigation Division, Chief 

Counsel’s Office, Office of Thrift 

Supervision, 1700 G Street, NW., 

Washington, DC 20552. 

SUPPLEMENTARY INFORMATION: The 

agencies are requesting OMB approval 

to revise and extend for three years the 

Call Report and the TFR, which are 

currently approved collections of 

information. 

1. Report Title: Consolidated Reports 

of Condition and Income (Call Report). 

Form Number: Call Report: FFIEC 031 

(for banks with domestic and foreign 

offices) and FFIEC 041 (for banks with 

domestic offices only). 

Frequency of Response: Quarterly. 

Affected Public: Business or other forprofit. 

OCC 

OMB Number: 1557–0081. 

Estimated Number of Respondents: 

1,900 national banks. 

Estimated Time per Response: 44.33 

burden hours. 

Estimated Total Annual Burden: 

336,925 burden hours. 

Board 

OMB Number: 7100–0036. 

Estimated Number of Respondents: 

905 state member banks. 

Estimated Time per Response: 51.02 

burden hours. 

Estimated Total Annual Burden: 

184,692 burden hours. 

FDIC 

OMB Number: 3064–0052. 

Estimated Number of Respondents: 

5,234 insured state nonmember banks. 

Estimated Time per Response: 35.27 

burden hours. 

Estimated Total Annual Burden: 

738,413 burden hours. 

The estimated time per response for 

the Call Report is an average that varies 

by agency because of differences in the 

composition of the institutions under 

each agency’s supervision (e.g., size 

distribution of institutions, types of 

activities in which they are engaged, 

and existence of foreign offices). The 

average reporting burden for the Call 

Report is estimated to range from 16 to 

630 hours per quarter, depending on an 

individual institution’s circumstances. 

2. Report Title: Thrift Financial 

Report (TFR). 

Form Number: OTS 1313 (for savings 

associations). 

Frequency of Response: Quarterly. 

Affected Public: Business or other forprofit. 

OTS 

OMB Number: 1550–0023. 

Estimated Number of Respondents: 

845 savings associations. 

Estimated Time per Response: 57.1 

burden hours. 

Estimated Total Annual Burden: 

193,139 burden hours. 

General Description of Reports 

These information collections are 

mandatory: 12 U.S.C. 161 (for national 

banks), 12 U.S.C. 324 (for state member 

banks), 12 U.S.C. 1817 (for insured state 

nonmember commercial and savings 

banks), and 12 U.S.C. 1464 (for savings 

associations). Except for selected data 

items, these information collections are 

not given confidential treatment. 

Abstract 

Institutions submit Call Report and 

TFR data to the agencies each quarter 

for the agencies’ use in monitoring the 

condition, performance, and risk profile 

of individual institutions and the 

industry as a whole. Call Report and 

TFR data provide the most current 

statistical data available for evaluating 

institutions’ corporate applications, for 

identifying areas of focus for both onsite and off-site examinations, and for 

monetary and other public policy 

purposes. The agencies use Call Report 

and TFR data in evaluating interstate 

merger and acquisition applications to 

determine, as required by law, whether 

the resulting institution would control 

more than ten percent of the total 

amount of deposits of insured 

depository institutions in the United 

States. Call Report and TFR data are also 

used to calculate all institutions’ deposit 

insurance and Financing Corporation 

assessments, national banks’

semiannual assessment fees, and the 

OTS’s assessments on savings 

associations. 

Current Actions 

I. Overview 

On October 31, 2006, the agencies 

requested comment on proposed 

revisions to the Call Report and the TFR 

(71 FR 63848). All four agencies 

proposed to replace certain information 

currently collected in the Call Report 

and TFR for deposit insurance 

assessment purposes with the 

information described in proposed 

amendments to Part 327 of the FDIC’s 

regulations (71 FR 28790, May 18, 


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1On November 30, 2006, the FDIC published a 

final rule amending Part 327 of its regulations to 

improve and modernize its operational systems for 

deposit insurance assessments (71 FR 69270). 

2006).1 The four agencies also proposed 

to revise the information collected in 

the Call Report and TFR on time 

deposits, particularly with respect to 

certain retirement accounts affected by 

the FDIC’s amended deposit insurance 

regulations. 

In addition, the OCC, the Board, and 

the FDIC (the banking agencies) 

proposed to implement a number of 

other changes to the Call Report 

requirements, most of which are 

expected to apply to a small percentage 

of banks. First, the banking agencies 

proposed to revise the Call Report to 

collect certain data on fair value 

measurements from those institutions 

that choose, under generally accepted 

accounting principles, to apply a fair 

value option to one or more financial 

instruments and one or more classes of 

servicing assets and liabilities and from 

certain institutions that report trading 

assets and liabilities. The banking 

agencies also proposed to collect an 

item for regulatory capital calculation 

purposes to capture the change in the 

fair value of liabilities accounted for 

under a fair value option that is 

attributable to a change in a bank’s own 

creditworthiness. Second, in order to 

meet supervisory data needs, the 

banking agencies proposed to collect 

certain data in the Call Report on 1–4 

family residential mortgages with terms 

that allow for negative amortization. 

Finally, the banking agencies proposed 

to clarify the Call Report instructions for 

assets serviced for others by explicitly 

stating that such servicing includes the 

servicing of loan participations. 

The OTS’s other changes to the TFR 

were addressed separately in its notices 

published on July 31, 2006 (71 FR 

43286), and December 1, 2006 (71 FR 

69619). These changes will be 

incorporated in this OMB submission, 

and will take effect on March 31, 2007. 

The revisions to the Call Report and 

the TFR set forth herein, which were 

approved for publication by the FFIEC, 

were proposed to take effect as of March 

31, 2007, and, for certain deposit 

insurance assessment revisions, March 

31, 2008. After considering the 

comments and other actions since the 

publication of the proposal, the agencies 

approved certain modifications to the 

initial set of proposed revisions. The 

agencies will move forward with these 

modified reporting changes on March 

31, 2007, and March 31, 2008. For the 

March 31, 2007, report date only, 

institutions may provide reasonable 

estimates for any new or revised Call 

Report or TFR item for which the 

requested information is not readily 

available. 

The agencies collectively received 

comments from five respondents: one 

banking organization, one national 

banking trade association, a trade 

association of community organizations, 

a financial institution data processing 

servicer, and a government agency. All 

of these respondents except the 

government agency addressed the 

proposed reporting of information on 1–

4 family residential mortgages with 

negative amortization features. The 

trade association of community 

organizations supported the collection 

of the total amount of these mortgages 

in the Call Report while the banking 

organization and the banking trade 

association addressed the proposal to 

collect certain additional data on these 

mortgages from banks with a significant 

volume of negatively amortizing 

residential mortgages. The data 

processing servicer commented on the 

proposed March 31, 2007, effective date 

for reporting this information. 

With respect to the other proposed 

revisions to the Call Report and the 

TFR, the banking organization stated 

that it ‘‘generally supports the Agencies’

‘‘proposed changes’’ and the banking 

trade association expressed support for 

‘‘the majority of changes proposed by 

the agencies.’’ This latter commenter 

observed that the proposed changes to 

the data reported for deposit insurance 

assessment purposes should be 

conformed to the FDIC’s final rule on 

the operational procedures governing 

deposit insurance assessments that was 

published after the proposed changes to 

the Call Report and TFR were published 

for comment on October 31, 2006. This 

commenter also urged the agencies to 

proceed cautiously with the proposed 

reporting schedule that would capture 

data on banks’ use of the fair value 

option under a yet-to-be issued final 

accounting standard. 

A summary of the agencies’ responses 

to the comments and the final revisions 

are presented below. 

II. Discussion of Revisions 

A. Deposit Insurance Assessment 

Revisions to the Call Report and TFR 

On May 18, 2006, the FDIC issued 

proposed amendments to Part 327 of its 

regulations, ‘‘Assessments,’’ to improve 

and modernize its operational systems 

for deposit insurance assessments. 

Under these proposed amendments, the 

FDIC’s computation of deposit 

insurance assessments for certain 

institutions would be determined using 

daily averages for deposits rather than 

quarter-end balances. On November 30, 

2006, the FDIC published a final rule 

amending Part 327 of its regulations 

largely as proposed on May 18. 

In conjunction with these 

amendments to Part 327 of the FDIC’s 

regulations, the agencies proposed to 

revise and reduce the overall reporting 

requirements related to deposit 

insurance assessments in both the Call 

Report and the TFR in order to simplify 

regulatory reporting. The proposed 

revised reporting requirements 

contained the following key elements: 

• Institutions would separately report 

(a) gross deposits as defined in Section 

3(l) of the Federal Deposit Insurance Act 

(FDI Act) (12 U.S.C. 1813(l)) before any 

allowable exclusions and (b) allowable 

exclusions; 

• The same data items would be 

reported for both quarter-end and daily 

average deposits; 

• All institutions would report using 

quarter-end deposits and allowable 

exclusions; and 

• All institutions with $300 million 

or more in assets, and other institutions 

that meet specified criteria, would also 

report daily averages for deposits and 

allowable exclusions in addition to 

quarter-end amounts. 

The proposal also provided an interim 

period covering the March 31, 2007, 

through December 31, 2007, report 

dates, during which institutions would 

have the option to submit Call Reports 

and TFRs using either the current or 

revised formats for reporting data for 

measuring their assessment base. An 

institution that chose to begin reporting 

under the revised format in any quarter 

during the interim period would be 

required to continue to report under the 

revised format through the rest of the 

interim period and would not be 

permitted to revert back to the current 

reporting format. The revised reporting 

format would take effect for all 

institutions on March 31, 2008, at which 

time the current reporting format would 

be eliminated. Although no institution 

that chose to report under the revised 

format during the 2007 interim period 

would be required to report daily 

averages during this period, any 

institution could elect to report daily 

averages as of any quarter-end report 

date in 2007. However, once an 

institution began to report daily 

averages (even during the interim 

period), it would be required to 

continue to report daily averages each 

quarter thereafter in its Call Report or 

TFR. 

In its May 18, 2006, proposed 

amendments to Part 327 of its 

regulations, the FDIC proposed to revise 


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7124 Federal Register / Vol. 72, No. 30 / Wednesday, February 14, 2007 / Notices 

2 In order to calculate the money stock measure 

M2, the Federal Reserve takes M1 (which consists 

of currency held by the public, traveler’s checks, 

demand deposits, and other checkable deposits) 

and adds (1) savings deposits, (2) smalldenomination time deposits (time deposits in 

amounts of less than $100,000) less Individual 

Retirement Account (IRA) and Keogh balances at 

depository institutions, and (3) balances in retail 

money market mutual funds, less IRA and Keogh 

balances at money market mutual funds. 

the definition of the assessment base to 

be consistent with Section 3(l) of the 

FDI Act. This was intended to eliminate 

the need for periodic updates to the 

FDIC’s assessment regulations in 

response to outside factors and allow a 

simplification of the associated 

reporting requirements. In addition, the 

FDIC proposed to use daily average 

deposits and exclusions over the quarter 

instead of quarter-end totals for deposits 

and exclusions to compute the 

assessment base for institutions with 

$300 million or more in assets and other 

institutions who meet specified criteria. 

All other institutions could opt 

permanently to determine their 

assessment base using daily averages. In 

its final rule amending Part 327, the 

FDIC raised the size threshold for using 

daily average deposits and exclusions to 

compute an institution’s assessment 

base from $300 million to $1 billion. 

At present, 23 items are required in 

the Call Report to determine a bank’s 

assessment base and eight items are 

required in the TFR to determine a 

savings association’s assessment base. 

The agencies proposed to change the 

way the assessment base is reported in 

the Call Report and the TFR. As 

proposed, these changes would 

effectively reduce the number of 

reported items to as few as two for 

certain small institutions (without 

foreign offices) and no more than six for 

other institutions. Specifically, the 

banking agencies proposed to replace 

items 1 through 12 (including their 

subitems) on Schedule RC–O, ‘‘Other 

Data for Deposit Insurance and FICO 

Assessments,’’ and OTS proposed to 

replace the eight items in the section of 

Schedule DI, ‘‘Consolidated Deposit 

Information,’’ for ‘‘Deposit and Escrow 

Data for Deposit Insurance Premium 

Assessments’’ with the following six 

items: 

• Total Deposit Liabilities Before 

Exclusions (Gross) as Defined in Section 

3(l) of the FDI Act and FDIC 

Regulations; 

• Total Allowable Exclusions 

(including Foreign Deposits); 

• Total Foreign Deposits (included in 

Total Allowable Exclusions); 

• Total Daily Average of Deposit 

Liabilities Before Exclusions (Gross) as 

Defined in Section 3(l) of the FDI Act 

and FDIC Regulations; 

• Total Daily Average Allowable 

Exclusions (including Foreign Deposits); 

and 

• Total Daily Average Foreign 

Deposits (included in Total Daily 

Average Allowable Exclusions). 

The total amount of allowable 

exclusions from the assessment base 

would be reported separately for any 

institution that maintains such records 

as will readily permit verification of the 

correctness of its assessment base. The 

allowable exclusions, which are set 

forth in Section 3(l)(5) and other 

sections of the FDI Act and in the 

FDIC’s regulations, include foreign 

deposits (including International 

Banking Facility deposits), reciprocal 

balances, drafts drawn on other 

depository institutions, pass-through 

reserve balances, depository institution 

investment contracts, and deposits 

accumulated for the payment of 

personal loans that are assigned or 

pledged to assure payment at maturity. 

The net amount of unposted debits and 

credits would no longer be considered 

within the definition of the assessment 

base. 

In addition to quarter-end balance 

reporting, institutions that meet certain 

criteria would be required to report 

average daily deposit liabilities and 

average daily allowable exclusions to 

determine their assessment base 

effective March 31, 2008. The amounts 

to be reported would be averages of the 

balances as of the close of business for 

each day for the calendar quarter. For 

days that an office of the reporting 

institution (or any of its subsidiaries or 

branches) is closed (e.g., Saturdays, 

Sundays, or holidays), the amounts 

outstanding from the previous business 

day would be used. An office is 

considered closed if there are no 

transactions posted to the general ledger 

as of that date. 

According to the agencies’ October 31 

reporting proposal, the requirement for 

an institution to report daily averages 

beginning March 31, 2008, would have 

applied to any institution that had $300 

million or more in total assets either in 

its Call Report or TFR for March 31, 

2007, regardless of its asset size in 

subsequent quarters. In addition, if an 

institution reported $300 million or 

more in total assets in two consecutive 

Call Reports or TFRs beginning with its 

June 30, 2007, report, daily average 

reporting would have begun on the later 

of March 31, 2008, or the report date six 

months after the second consecutive 

quarter. Daily average reporting 

beginning March 31, 2008, would also 

have applied to any institution that 

became newly insured after March 31, 

2007. An institution reporting less than 

$300 million in total assets in its Call 

Report or TFR for March 31, 2007, 

would be permitted to continue to 

determine its assessment base using 

quarter-end balances until it met the 

two-consecutive-quarter asset size test 

for reporting daily averages unless it 

opted to determine its assessment base 

using daily averages. After an institution 

began to report daily averages for its 

total deposits and allowable exclusions, 

either voluntarily or because it was 

required to do so, the institution would 

not be permitted to switch back to 

reporting only quarter-end balances. 

In its comment letter, the banking 

trade association ‘‘point[ed] out that the 

threshold for average daily balance 

reporting requirements in the final FDIC 

ruling is $1 billion, which differs from 

the $300 million threshold proposed by 

the FDIC on May 18, 2006,’’ and upon 

which the agencies’ October 31 

reporting proposal was based. The trade 

association added that the reporting 

threshold in the Call Report and the 

TFR ‘‘must be revised to $1 billion to 

correspond with the final FDIC rule.’’

The agencies concur and are revising 

the threshold for average daily balance 

reporting to $1 billion. In addition, 

institutions that become newly insured 

on or after April 1, 2008, would be 

required to report daily average balances 

beginning in the first quarterly Call 

Report or TFR that they file. An 

institution that becomes insured after 

March 31, 2007, but on or before March 

31, 2008, would not be required to 

report daily average balances in its Call 

Report or TFR unless and until it 

exceeded the $1 billion asset size 

threshold. 

B. Revision of Certain Time Deposit 

Information on the Call Report and TFR 

The Federal Reserve uses data from 

Call Report Schedule RC-E, Deposit 

Liabilities, and from TFR Schedule DI, 

Consolidated Deposit Information, to 

ensure accurate construction of the 

monetary aggregates for monetary policy 

purposes.2 In order to more accurately 

calculate the monetary aggregates, the 

banking agencies proposed to revise two 

Schedule RC-E items, Memorandum 

items 2.b, ‘‘Total time deposits of less 

than $100,000,’’ and 2.c, ‘‘Total time 

deposits of $100,000 or more,’’ and add 

a new Memorandum item 2.c.(1) to this 

schedule. 

In Schedule RC–E, Memorandum item 

2.b would be revised to include 

brokered time deposits issued in 

denominations of $100,000 or more that 

are participated out by the broker in 

shares of less than $100,000 as well as 

brokered certificates of deposit issued in 


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Federal Register / Vol. 72, No. 30 / Wednesday, February 14, 2007 / Notices 7125 

3The FASB’s three-level fair value hierarchy 

gives the highest priority to quoted prices in active 

markets for identical assets or liabilities (Level 1) 

and the lowest priority to unobservable inputs 

(Level 3). Level 1 inputs are quoted prices in active 

markets for identical assets or liabilities that the 

reporting bank has the ability to access at the 

measurement date (e.g., the Call Report date). Level 

2 inputs are inputs other than quoted prices 

included within Level 1 that are observable for the 

asset or liability, either directly or indirectly. Level 

3 inputs are unobservable inputs for the asset or 

liability. 

$1,000 amounts under a master 

certificate of deposit (when information 

on the number of $1,000 amounts held 

by each of the broker’s customers is not 

readily available to the bank). 

Memorandum item 2.c would be revised 

to exclude such brokered time deposits. 

In addition, because the deposit 

insurance limit for certain retirement 

plan deposit accounts increased from 

$100,000 to $250,000 in 2006, a new 

Memorandum item 2.c.(1) would be 

added to Schedule RC–E to separately 

identify the portion of the total time 

deposits of $100,000 or more reported in 

Memorandum item 2.c that represents 

IRA and Keogh Plan accounts. 

For the same reasons, OTS proposed 

to add two new items to Schedule DI of 

the TFR. These data items would be (1) 

Time Deposits of $100,000 or More 

(excluding brokered time deposits 

participated out by the broker in shares 

of less than $100,000 and brokered 

certificates of deposit issued in $1,000 

amounts under a master certificate of 

deposit) and (2) IRA/Keogh Accounts 

included in Time Deposits of $100,000 

or More. 

The agencies received no comments 

on the proposed time deposit reporting 

changes, which they will implement as 

proposed. 

C. Reporting of Certain Fair Value 

Measurements and the Use of the Fair 

Value Option in the Call Report 

On September 15, 2006, the Financial 

Accounting Standards Board (FASB) 

issued Statement No. 157, Fair Value 

Measurements (FAS 157), which is 

effective for banks and other entities for 

fiscal years beginning after November 

15, 2007. Earlier adoption of FAS 157 is 

permitted as of the beginning of an 

earlier fiscal year, provided the bank has 

not yet issued a financial statement or 

filed a Call Report for any period of that 

fiscal year. Thus, a bank with a calendar 

year fiscal year may voluntarily adopt 

FAS 157 as of January 1, 2007. The fair 

value measurements standard provides 

guidance on how to measure fair value 

and would require banks and other 

entities to disclose the inputs used to 

measure fair value based on a threelevel hierarchy for all assets and 

liabilities that are remeasured at fair 

value on a recurring basis.3

The FASB plans to issue a final 

standard, The Fair Value Option for 

Financial Assets and Financial 

Liabilities, in the first quarter of 2007. 

This standard would allow banks and 

other entities to report certain financial 

assets and liabilities at fair value with 

the changes in fair value included in 

earnings. The banking agencies 

anticipate that relatively few banks will 

elect to use the fair value option for a 

significant portion of their financial 

assets and liabilities. 

According to the FASB’s Web site 

(http://www.fasb.org), the FASB Board 

has tentatively decided to require that 

the effective date of the final fair value 

option standard be the same as the 

effective date of FAS 157. Thus, the 

final fair value option standard should 

be effective for financial statements 

issued for fiscal years beginning after 

November 15, 2007. The FASB Board 

has also tentatively decided to permit an 

entity to early adopt the final fair value 

option standard provided that the entity 

also adopts all of the requirements 

(measurement and disclosure) of FAS 

157 concurrent with or prior to the early 

adoption of the final fair value option 

standard. Furthermore, the FASB Board 

would permit early adoption of the final 

fair value option standard within 120 

days of the beginning of the entity’s 

fiscal year, thereby making the fair value 

option election retroactive to the 

beginning of that fiscal year (or the date 

of initial recognition, if later) provided 

that the entity has not yet issued any 

interim financial statements for that 

fiscal year. Thus, a bank with a calendar 

year fiscal year that voluntarily adopts 

FAS 157 as of January 1, 2007, would 

also be able to adopt the final fair value 

option standard as of that same date. 

The banking agencies proposed to 

clarify the Call Report instructions to 

explain where financial assets and 

liabilities measured under the fair value 

option should be reported in the 

existing line items of the Call Report. 

The banking agencies also proposed to 

add a new Schedule RC-Q to the Call 

Report to collect data, by major asset 

and liability category, on the amount of 

assets and liabilities to which the fair 

value option has been applied along 

with separate disclosure of the amount 

of such assets and liabilities whose fair 

values were estimated under level two 

and under level three of the FASB’s fair 

value hierarchy. The categories are: 

• Securities held for purposes other 

than trading with changes in fair value 

reported in current earnings; 

• Loans and leases; 

• All other financial assets and 

servicing assets; 

• Deposit liabilities; 

• All other financial liabilities and 

servicing liabilities; and 

• Loan commitments (not accounted 

for as derivatives). 

In addition, the banking agencies 

proposed to collect data on trading 

assets and trading liabilities in the new 

schedule from those banks that 

complete Schedule RC–D, Trading 

Assets and Liabilities, i.e., banks that 

reported average trading assets of $2 

million or more for any quarter of the 

preceding calendar year. In the 

proposed new schedule, such banks 

would report the carrying amount of 

trading assets and trading liabilities 

whose fair values were estimated under 

level two and under level three of the 

FASB’s fair value hierarchy. 

The FASB’s fair value measurements 

standard requires banks and other 

entities to consider the effect of a 

change in their own creditworthiness 

when determining the fair value of a 

financial liability. The banking agencies 

proposed to add one new item to 

Schedule RC–R, Regulatory Capital, for 

the cumulative change in the fair value 

of all financial liabilities accounted for 

under the fair value option that is 

attributable to changes in the bank’s 

own creditworthiness. This amount 

would be excluded from the bank’s 

retained earnings for purposes of 

determining Tier 1 capital under the 

banking agencies’ regulatory capital 

standards. 

Finally, the banking agencies 

proposed to clarify the instructions to 

Schedule RI for the treatment of interest 

income on financial assets and interest 

expense on financial liabilities 

measured under a fair value option. The 

instructions would be modified to 

instruct banks to separate the 

contractual year-to-date amount of 

interest earned on financial assets and 

interest incurred on financial liabilities 

that are reported under a fair value 

option from the overall year-to-date fair 

value adjustment and report these 

contractual amounts in the appropriate 

interest income or interest expense 

items on Schedule RI. 

Only one commenter, the banking 

trade association, offered comments on 

fair value option reporting, urging ‘‘the 

agencies to proceed cautiously with any 

major revisions to the Call Report or 

TFR prior to the official release of the 

Fair Value Option statement.’’ The trade 

association also requested that the 

agencies delay the March 31, 2007, 

effective date of the proposed reporting 

revisions related to the fair value option 

if the release of the FASB’s final fair 


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7126 Federal Register / Vol. 72, No. 30 / Wednesday, February 14, 2007 / Notices 

4See 71 FR 58609, October 4, 2006. 

value option standard is delayed beyond 

its expected issuance in the first quarter 

of 2007. The trade association did not 

address the proposed reporting 

revisions for the fair value option and 

fair value measurements themselves. 

The banking agencies agree on the 

need for caution in implementing their 

proposed reporting revisions related to 

the fair value option and fair value 

measurements. Accordingly, once the 

FASB issues its final fair value option 

standard, only if banks are permitted to 

adopt this standard in the first quarter 

of 2007 for other financial reporting 

purposes would the fair value option 

reporting requirements in the Call 

Report take effect as of March 31, 2007. 

Otherwise, these reporting requirements 

would be delayed until banks can elect 

the fair value option for other financial 

reporting purposes. Additionally, the 

banking agencies will proceed with the 

new Schedule RC-R item for fair value 

changes included in retained earnings 

that are attributable to changes in a 

bank’s own creditworthiness. This item 

will initially reflect the banking 

agencies’ determination that banks 

should exclude from Tier 1 capital the 

cumulative change in the fair value of 

financial liabilities accounted for under 

a fair value option that is included in 

retained earnings and is attributable to 

changes in the bank’s own 

creditworthiness. If the scope of the 

banking agencies’ determination 

concerning changes in the fair value of 

liabilities attributable to changes in own 

creditworthiness is later modified, the 

new Schedule RC–R item would be 

modified accordingly. 

D. Reporting of Certain Data in the Call 

Report on 1–4 Family Residential 

Mortgage Loans With Terms That Allow 

for Negative Amortization 

The banking agencies proposed to 

collect certain Call Report items to 

monitor the extent of bank holdings of 

closed-end 1–4 family residential 

mortgage loan products whose terms 

allow for negative amortization. As 

proposed, all banks would report the 

total amount of their holdings of such 

closed-end mortgage loans in a new 

memorandum item in Schedule RC–C, 

Part I, Loans and Leases. The banking 

agencies also proposed to collect two 

additional memorandum items on 

Schedule RC-C and another new 

memorandum item on Schedule RI, 

Income Statement, from banks with a 

significant volume of negatively 

amortizing 1–4 family residential 

mortgage loans. The two additional 

Schedule RC–C memorandum items 

would be (1) the total maximum 

remaining amount of negative 

amortization contractually permitted on 

closed-end loans secured by 1–4 family 

residential properties and (2) the total 

amount of negative amortization on 

closed-end loans secured by 1–4 family 

residential properties that is included in 

the carrying amount of these loans. The 

Schedule RI memorandum item would 

be the year-to-date noncash income on 

closed-end loans with a negative 

amortization feature secured by 1–4 

family residential properties. 

The banking agencies’ proposal stated 

that the threshold for identifying banks 

with a significant volume of negatively 

amortizing residential mortgage loans 

would be based on the aggregate amount 

of these loans being in excess of either 

a certain dollar amount, e.g., $100 

million or $250 million, or a certain 

percentage of the total loans and leases 

(in domestic offices) reported on 

Schedule RC–C, e.g., five percent or ten 

percent. For reporting during 2007, a 

bank with negatively amortizing loans 

would determine whether it met the size 

threshold for reporting the three 

additional memorandum items using 

data reflected in its December 31, 2006, 

Call Report. For reporting in 2008 and 

subsequent years, the determination 

would be based on data from the 

previous year-end Call Report. Thus, 

banks with negatively amortizing 1–4 

family residential mortgage loans in 

excess of the reporting threshold as of 

the end of any particular calendar year 

would report these three items for the 

entire next calendar year. 

The banking agencies requested 

comment on the specific dollar amount 

and percentage of loans that should be 

used in setting the size threshold for 

additional reporting on negatively 

amortizing loans. As mentioned above, 

the comments from the banking 

organization and the banking trade 

association addressed this threshold. In 

this regard, the banking organization 

recommended that the agencies base 

their reporting threshold only on a 

percentage of an institution’s total loans 

and leases and not also include a fixed 

dollar amount of negatively amortizing 

loans in the threshold test. The 

organization stated that using a 

percentage test ‘‘is more in line with the 

Agencies’ goals of ensuring the safety 

and soundness of institutions while 

minimizing the burden of information 

collection’’ because ‘‘safety and 

soundness concerns become more 

prominent only as an institution’s 

concentration in these loans increases 

relative to the rest of its portfolio.’’

In its comments, the banking trade 

association referred to the agencies’

Interagency Guidance on Nontraditional 

Mortgage Product Risks, which they 

published at the beginning of October 

2006,4 noting that this guidance 

‘‘specifically states that the agencies did 

not intend to establish concentration 

caps for institutions that underwrite’’

nontraditional mortgages, including the 

residential mortgages with negative 

amortization features on which data 

would be reported in the Call Report. 

The trade association expressed concern 

that the establishment of a reporting 

threshold for reporting certain data on 

these loans would be ‘‘a de facto 

concentration limit above which 

heightened regulatory scrutiny could be 

implied for such loans.’’ This ‘‘would be 

inconsistent with the Interagency 

Guidance.’’ As a consequence, the trade 

association suggested eliminating the 

entire proposed reporting requirement 

for negatively amortizing residential 

mortgage loans. Alternatively, if the 

proposed reporting requirement were to 

be retained, the trade association 

recommended eliminating the reporting 

threshold for the three additional items 

and requiring all banks to report these 

items. 

The banking agencies have considered 

these comments that focus on the 

reporting threshold. The intent of the 

proposal to establish a reporting 

threshold for certain additional data on 

negatively amortizing residential 

mortgage loans was not to establish 

concentration limits for these mortgage 

products. Rather, as the agencies noted 

in their proposal, they currently ‘‘have 

no readily available means of 

identifying the industry’s exposure’’ to 

these products, which led them to 

propose to collect certain data to assist 

them in ‘‘monitor[ing] the extent of use 

of negatively amortizing residential 

mortgage loans in the industry.’’ Thus, 

the reporting of data on these mortgages 

is intended to support agency analysis 

at both the institution level and the 

industry level. The threshold for 

reporting additional data on negatively 

amortizing residential mortgage loans 

that are present at an institution in a 

significant volume was designed to limit 

the reporting burden on institutions, 

particularly small banks, with a nominal 

volume of these loans. A threshold 

based solely on a percentage of total 

loans and leases would not enable the 

banking agencies to gain an industry 

perspective on the amount of remaining 

contractually permitted negative 

amortization, capitalized negative 

amortization, and noncash income from 

negative amortization and how they 

relate to the amount of negatively 

amortizing residential mortgages. 

Therefore, the banking agencies will 


ycherry on PROD1PC64 with PRELIMS
Federal Register / Vol. 72, No. 30 / Wednesday, February 14, 2007 / Notices 7127 

5 In keeping with the Relief Act, the Board 

amended Regulation O (12 CFR part 215) to 

eliminate the insider loan reporting requirements 

addressed in Section 601, effective December 11, 

2006 (71 FR 71472, December 11, 2006). The FDIC 

repealed Part 349 of its regulations (12 CFR part 

349), which covered certain insider loan reporting 

requirements addressed in Section 601, effective 

December 22, 2006 (71 FR 78337, December 29, 

2006). The OCC’s regulations (12 CFR part 31) and 

the OTS’s regulations (12 CFR part 563) incorporate 

Regulation O by reference and, therefore, do not 

require amendment. 

proceed with a reporting threshold for 

the three additional data items that 

incorporates both a dollar amount test 

and a percentage test. More specifically, 

banks would report the three additional 

data items pertaining to their negatively 

amortizing residential mortgages if the 

amount of these mortgages exceeds the 

lesser of $100 million or 5 percent of 

their total loans and leases (in domestic 

offices), both held for sale and held for 

investment. 

The data processing servicer 

commented on the proposed March 31, 

2007, effective date for reporting this 

information. The servicer observed that 

the end of the proposal’s comment 

period is less than 90 days before this 

effective date, while it typically needs a 

minimum of 180 days to implement 

programming changes after 

requirements are finalized. As a 

consequence, the servicer stated that it 

would not be able to commit to 

completing the programming, testing, 

and implementation of changes to its 

mortgage software by March 31, 2007, to 

enable its client banks to report the 

proposed information on negatively 

amortizing residential mortgages. 

The Interagency Guidance on 

Nontraditional Mortgage Product Risks 

indicates that management information 

and reporting systems ‘‘should allow 

management to detect changes in the 

risk profile of its nontraditional 

mortgage loan portfolio. The structure 

and content should allow the isolation 

of key loan products, risk-layering loan 

features, and borrower characteristics.’’

The guidance further provides that ‘‘[a]t 

a minimum, information should be 

available by loan type,’’ such as for the 

closed-end residential mortgage loans 

with negative amortization features that 

are the subject of this Call Report 

proposal, and ‘‘by borrower 

performance (e.g., payment patterns, 

delinquencies, interest accruals, and 

negative amortization).’’ These risk 

management expectations for 

information systems were set forth 

approximately 180 days before the 

March 31, 2007, effective date of the 

proposed Call Report items for 

negatively amortizing residential 

mortgages. In addition, as previously 

mentioned, for the March 31, 2007, 

report date, banks may provide 

reasonable estimates for these new Call 

Report items if the requested 

information is not readily available. 

E. Call Report Instructional Clarification 

for Servicing of Loan Participations 

Banks report the outstanding 

principal balance of loans and other 

assets serviced for others in 

Memorandum items 2.a, 2.b, and 2.c of 

Schedule RC-S, ‘‘Servicing, 

Securitization, and Asset Sale 

Activities.’’ The instructions for these 

Memorandum items do not explicitly 

state whether a bank that has sold a 

participation in a loan or other financial 

asset, which it continues to service, 

should include the servicing in 

Memorandum item 2.a, 2.b, or 2.c, as 

appropriate. Because the absence of 

clear instructional guidance has resulted 

in questions from bankers and has 

produced diversity in practice among 

banks, the banking agencies propose to 

clarify the instructions to these 

Schedule RC-S Memorandum items to 

explicitly state that the amount of loan 

participations serviced for others should 

be included in these items. The banking 

agencies received no comments 

specifically addressing this instructional 

clarification, which will be 

implemented as proposed. 

III. Other Matters 

Section 601 of the Financial Services 

Regulatory Relief Act of 2006 (Relief 

Act) removed several statutory reporting 

requirements relating to insider lending 

by banks and savings associations. One 

of these amendments, which became 

effective on October 13, 2006, 

eliminated the requirement that an 

institution include a separate report 

with its Call Report or TFR each quarter 

on any extensions of credit the 

institution has made to its executive 

officers since the date of its last Call 

Report or TFR.5 Accordingly, 

institutions were no longer required to 

report on such extensions of credit 

beginning December 31, 2006, and the 

‘‘Special Report’’ on loans to executive 

officers, which has been included with 

the Call Report and TFR in previous 

quarters, is being discontinued. Because 

the reporting burden of this ‘‘Special 

Report’’ has been included in the 

burden for the Call Report and TFR 

information collections, the agencies 

have adjusted the burden of these 

collections in response to this statutory 

change and the elimination of the 

reporting requirement. 

To improve the timeliness with which 

Call Report data become available to the 

public, the banking agencies will start 

posting individual bank data on the 

Internet earlier than in the past. This 

change will occur in conjunction with 

the implementation of the FFIEC’s 

Central Data Repository Public Data 

Distribution (CDR PDD) site as the Web 

site for obtaining individual bank Call 

Report data. At present, individual bank 

Call Reports for which the analyses have 

been completed are released to the 

public beginning the third Friday after 

the report date (e.g., January 19, 2007, 

for the December 31, 2006, report) and 

additional bank reports are posted each 

Friday thereafter. Beginning with the 

March 31, 2007, report, the banking 

agencies plan to begin posting 

individual bank Call Report data on the 

CDR PDD Web site 15 calendar days 

after the report date (e.g., April 15, 

2007). However, no individual bank 

data will be posted until 72 hours after 

that data has been accepted by the 

banking agencies and is incorporated 

within the Central Data Repository. 

IV. Request for Comment 

Public comment is requested on all 

aspects of this joint notice. Comments 

are invited on: 

(a) Whether the proposed revisions to 

the Call Report and TFR collections of 

information are necessary for the proper 

performance of the agencies’ functions, 

including whether the information has 

practical utility; 

(b) The accuracy of the agencies’

estimates of the burden of the 

information collections as they are 

proposed to be revised, including the 

validity of the methodology and 

assumptions used; 

(c) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

(d) Ways to minimize the burden of 

information collections on respondents, 

including through the use of automated 

collection techniques or other forms of 

information technology; and 

(e) Estimates of capital or start up 

costs and costs of operation, 

maintenance, and purchase of services 

to provide information. 

Comments submitted in response to 

this joint notice will be shared among 

the agencies and will be summarized or 

included in the agencies’ requests for 

OMB approval. All comments will 

become a matter of public record. 


ycherry on PROD1PC64 with PRELIMS
7128 Federal Register / Vol. 72, No. 30 / Wednesday, February 14, 2007 / Notices 

Dated: February 8, 2007. 

Stuart E. Feldstein, 

Assistant Director, Legislative and Regulatory 

Activities Division, Office of the Comptroller 

of the Currency. 

Board of Governors of the Federal Reserve 

System, February 5, 2007. 

Jennifer J. Johnson, 

Secretary of the Board. 

Dated at Washington, DC, this 2nd day of 

February, 2007. 

Federal Deposit Insurance Corporation. 

Valerie J. Best, 

Assistant Executive Secretary. 

Dated: January 31, 2007. 

Deborah Dakin, 

Senior Deputy Chief Counsel, Regulations and 

Legislation Division, Office of Thrift 

Supervision. 

[FR Doc. 07–677 Filed 2–13–07; 8:45 am] 

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

6720–01–P 

DEPARTMENT OF TREASURY 

Office of Foreign Assets Control 

Unblocking of Specially Designated 

Narcotics Traffickers Pursuant to 

Executive Order 12978 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Notice. 

SUMMARY: The Treasury Department’s 

Office of Foreign Assets Control 

(‘‘OFAC’’) is publishing the names of 

five individuals and one entity whose 

property and interests in property have 

been unblocked pursuant to Executive 

Order 12978 of October 21, 1995, 

Blocking Assets and Prohibiting 

Transactions With Significant Narcotics 

Traffickers. 

DATES: The unblocking and removal 

from the list of Specially Designated 

Narcotics Traffickers of the individuals 

and entity identified in this notice 

whose property and interests in 

property were blocked pursuant to 

Executive Order 12978 of October 21, 

1995, occurred on February 2, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer Houghton, Assistant Director, 

Designation Investigations, Office of 

Foreign Assets Control, Department of 

the Treasury, Washington, DC 20220, 

tel.: 202/622–2420. 

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability 

This document and additional 

information concerning OFAC are 

available on OFAC’s Web site (http:// 

www.treas.gov/ofac) or via facsimile 

through a 24-hour fax-on demand 

service, tel.: (202) 622–0077. 

Background 

On October 21, 1995, the President 

issued Executive Order 12978 (the 

‘‘Order’’) pursuant to the International 

Emergency Economic Powers Act (50 

U.S.C. 1701–1706), the National 

Emergencies Act (50 U.S.C. 1601 et 

seq.), and section 301 of title 3, United 

States Code. 

In the Order, the President declared a 

national emergency to address actions of 

significant foreign narcotics traffickers 

centered in Colombia, and the 

unparalleled violence, corruption, and 

harm that they cause in the United 

States and abroad. The Order imposes 

economic sanctions on foreign persons 

who are determined to play a significant 

role in international narcotics trafficking 

centered in Colombia; or materially to 

assist in, or provide financial or 

technological support for goods or 

services in support of, the narcotics 

trafficking activities of persons 

designated in or pursuant to the order; 

or to be owned or controlled by, or to 

act for or on behalf of, persons 

designated in or pursuant to the Order. 

The Order included 4 individuals in 

the Annex, which resulted in the 

blocking of all property or interests in 

property of these persons that was or 

thereafter came within the United States 

or the possession or control of U.S. 

persons. The Order authorizes the 

Secretary of the Treasury, in 

consultation with the Attorney General 

and the Secretary of State, to designate 

additional persons or entities 

determined to meet certain criteria set 

forth in EO 12978. 

On February 2, 2007, the Director of 

OFAC removed from the list of 

Specially Designated Narcotics 

Traffickers the individuals and entity 

listed below, whose property and 

interests in property were blocked 

pursuant to EO 12978. 

The list of the unblocked individuals 

and entity follows: 

1. AGUADO ORTIZ, Luis Jamerson, c/o 

DISTRIBUIDORA MIGIL LTDA., Cali, 

Colombia; c/o FLEXOEMPAQUES LTDA., 

Cali, Colombia; c/o INVERSIONES Y 

CONSTRUCCIONES COSMOVALLE LTDA., 

Cali, Colombia; c/o PLASTICOS CONDOR 

LTDA., Cali, Colombia; Cedula No. 2935839 

(Colombia) (individual) [SDNT] -to-AGUADO 

ORTIZ, Luis Jamerson, c/o D’CACHE S.A., 

Cali, Colombia; c/o DISTRIBUIDORA MIGIL 

LTDA., Cali, Colombia; c/o 

FLEXOEMPAQUES LTDA., Cali, Colombia; 

c/o INVERSIONES Y CONSTRUCCIONES 

COSMOVALLE LTDA., Cali, Colombia; c/o 

PLASTICOS CONDOR LTDA., Cali, 

Colombia; Cedula No. 2935839 (Colombia) 

(individual) [SDNT] 

2. CAMACHO RIOS, Jaime, c/o 

CONSTRUCCIONES ASTRO S.A., Cali, 

Colombia; Cedula No. 14950781 (Colombia) 

(individual) [SDNT] GONZALEZ, Maria 

Lorena, c/o INVERSIONES Y 

CONSTRUCCIONES ATLASLTDA., Cali, 

Colombia; Cedula No. 31992548 (Colombia) 

(individual) [SDNT] 

3. GUZMAN VELASQUEZ, Luz Marcela, 

c/o TAURA S.A., Cali, Colombia; Cedula No. 

43568327 (Colombia) (individual) [SDNT] 

4. RAMIREZ VALDIVIESO, Alfonso, Calle 

114 No. 26–64, Bogota, Colombia; c/o 

INTERCONTINENTAL DE AVIACION S.A., 

Bogota, Colombia; DOB 5 May 1938; POB 

Cali, Colombia; Cedula No. 17035234 

(Colombia); Passport AF058639 (Colombia); 

alt. Passport PE019394 (Colombia); alt. 

Passport PE004391 (Colombia) (individual) 

[SDNT] 

5. WILSON GARCIA, Maria Ximena, c/o 

ALERO S.A., Cali, Colombia; DOB 15 Aug 

1968; Cedula No. 31985601 (Colombia) 

(individual) [SDNT] 

6. PREMIER SALES S.A., Avenida Ernesto 

T. Lefevre, Planta Baja, Panama; P.O. Box 

4064, Panama [SDNT] -to- PREMIER SALES 

S.A., Avenida Ernesto T. Lefevre Edificio No. 

10 Planta Baja, Panama; P.O. Box 4064, 

Panama; Apartado: 810–379 Zona 10, 

Panama [SDNT] 

Dated: February 2, 2007. 

Adam J. Szubin, 

Director, Office of Foreign Assets Control. 

[FR Doc. E7–2568 Filed 2–13–07; 8:45 am] 

BILLING CODE 4811–42–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

[INTL–536–89] 

Proposed Collection; Comment 

Request for Regulation Project 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice and request for 

comments. 

SUMMARY: The Department of the 

Treasury, as part of its continuing effort 

to reduce paperwork and respondent 

burden, invites the general public and 

other Federal agencies to take this 

opportunity to comment on proposed 

and/or continuing information 

collections, as required by the 

Paperwork Reduction Act of 1995, 

Public Law 104–13 (44 U.S.C. 

3506(c)(2)(A)). Currently, the IRS is 

soliciting comments concerning an 

existing final regulation, INTL–536–89 

(TD 8300), Registration Requirements 

With Respect to Certain Debt 

Obligations; Application of Repeal of 30 

Percent Withholding by the Tax Reform 

Act of 1984 (§ 1.1998 to be assured of 

consideration). 


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