[Federal Register Volume 61, Number 92 (Friday, May 10, 1996)]
[Rules and Regulations]
[Pages 21362-21364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11454]



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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 25

[Docket No. 96-08]
RIN 1557-AB51

FEDERAL RESERVE SYSTEM

12 CFR Part 228

[Regulation BB; Docket No. R-0822]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 345

RIN 3064-AB27

DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Part 563e

[Docket No. 96-32]
RIN 1550-AA96


Community Reinvestment Act Regulations

AGENCIES: Office of the Comptroller of the Currency, Treasury (OCC); 
Board of Governors of the Federal Reserve System (Board); Federal 
Deposit Insurance Corporation (FDIC); Office of Thrift Supervision, 
Treasury (OTS).

ACTION: Joint final rule; correcting amendment.

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SUMMARY: The OCC, Board, FDIC, and OTS (collectively, the agencies) are 
correcting their joint final rule concerning the Community Reinvestment 
Act (CRA), which was published on May 4, 1995, and amended by a 
subsequent joint final rule published on December 20, 1995. This 
document corrects a cross-reference to Small Business Administration 
regulations, which were recently amended. This correcting amendment 
makes no substantive change in the requirements of the current 
regulations.

EFFECTIVE DATE: May 10, 1996.

FOR FURTHER INFORMATION CONTACT:
    OCC: Bert A. Otto, Acting Deputy Comptroller for Compliance, (202) 
874-5216; or Matthew Roberts, Director, Community and Consumer Law 
Division, (202) 874-5750, Office of the Comptroller of the Currency, 
250 E Street, SW., Washington, DC 20219.
    BOARD: Glenn E. Loney, Associate Director, Division of Consumer and 
Community Affairs, (202) 452-3585; Robert deV. Frierson, Assistant 
General Counsel, Legal Division, (202) 452-3711; or Leonard N. Chanin, 
Managing Counsel, Division of Consumer and Community Affairs, (202) 
452-3667, Board of Governors of the Federal Reserve System, 20th Street 
and Constitution Avenue, NW., Washington, DC 20551.
    FDIC: Bobbie Jean Norris, Chief, Fair Lending Section, Division of 
Compliance and Consumer Affairs, (202) 942-3090; Robert W. Mooney, Fair 
Lending Specialist, Division of Compliance and Consumer Affairs, (202) 
942-3092; or Ann Hume Loikow, Counsel, Regulation and Legislation 
Section, Legal Division, (202) 898-3796, Federal Deposit Insurance 
Corporation, 550 17th Street, NW., Washington, DC 20429.
    OTS: Timothy R. Burniston, Director, Compliance Policy, (202) 906-
5629; Theresa A. Stark, Project Manager, Compliance Policy, (202) 906-
7054; or John Flannery, Attorney, Regulations and Legislation Division, 
Chief Counsel's Office, (202) 906-7293, Office of Thrift Supervision, 
1700 G Street, NW., Washington, DC 20552.

SUPPLEMENTARY INFORMATION:

Introduction

    The agencies jointly are amending their regulations implementing 
the CRA (12 U.S.C. 2901 et seq.). This joint final rule makes a 
technical correction to the agencies' joint CRA regulations, 12 CFR 
parts 25, 228, 345, and 563e. Those regulations establish the framework 
and criteria by which the agencies assess an institution's record of 
helping to meet the credit needs of its community, including low- and 
moderate-income neighborhoods, consistent with safe and sound 
operations, and provide that the agencies will take those assessments 
into account in reviewing certain applications.

Background

    Last year, the agencies revised their CRA regulations. They adopted 
a joint final rule, which was published on May 4, 1995 (60 FR 22156). 
The agencies published a correction and clarification to the joint 
final rule on December 20, 1995 (60 FR 66048).

Need for Correction to the Final Rule

    The agencies' joint final rule, as amended, defines ``community 
development'' to mean activities that promote economic development by 
financing businesses or farms that meet the size eligibility standards 
of 13 CFR 121.802(a) (2) and (3). These size eligibility standards 
refer to the Small Business Administration's size

[[Page 21363]]

limitations for Development Company and Small Business Investment 
Company (SBIC) programs. See 60 FR 22159 (May 4, 1995) and 60 FR 66049 
(Dec. 20, 1995).
    On January 31, 1996, the Small Business Administration amended its 
regulations. See 61 FR 3280. Effective March 1, 1996, the size 
limitations for Development Company and SBIC programs are described at 
13 CFR 121.301 (b) and (c). 61 FR 3294. Therefore, it is necessary to 
amend the agencies' CRA regulations to reflect this change.
    The agencies are amending their regulations to mention by name the 
SBA's Development Company and SBIC programs, as well as to refer 
readers to 13 CFR 121.301. The agencies believe that reference both to 
the programs by name and to the SBA's regulation by section will more 
clearly describe the size standards to which the agencies are referring 
while continuing to direct interested parties to the size standards' 
general location in the SBA's regulations.
    The agencies find that notice and public procedure concerning this 
correcting amendment are impracticable, unnecessary, and contrary to 
the public interest under 5 U.S.C. 553(b)(B). The agencies make this 
finding because these correcting amendments involve only technical 
corrections to the agencies' CRA regulations and make no substantive 
changes to the agencies' CRA regulations.
    In addition, under 5 U.S.C. 553(d)(3), the agencies have determined 
to make this correcting amendment effective with less than 30 days 
prior publication. The agencies find that there is good cause for 
shortened notice due to the minor nature of the changes. Furthermore, 
the SBA's amended regulation became effective March 1, 1996 (61 FR 
3280), thereby making the current cross-references in the agencies' CRA 
regulations erroneous as of that date.

Regulatory Flexibility Act

    Pursuant to section 605(b) of the Regulatory Flexibility Act, the 
OCC, Board, FDIC, and OTS hereby certify that this joint final rule 
will not have a significant economic impact on a substantial number of 
small entities. The agencies expect that this joint final rule will not 
have significant secondary or incidental effects on a substantial 
number of small entities, or create any additional burden on small 
entities. This joint final rule merely makes a technical correction to 
a cross-reference in the rules already adopted by the agencies and will 
not increase burden on institutions. Accordingly, a regulatory 
flexibility analysis is not required.

Paperwork Reduction Act of 1995

    There are no collection of information requirements in this joint 
final rule.

Executive Order 12866

    OCC and OTS: The OCC and the OTS have determined that this joint 
final rule is not a significant regulatory action as defined in 
Executive Order 12866.

Unfunded Mandates Reform Act of 1995

    OCC and OTS: Section 202 of the Unfunded Mandates Reform Act of 
1995, Pub. L. 104-4, 109 Stat. 48 (1995) (Unfunded Mandates Act), 
requires that covered agencies prepare a budgetary impact statement 
before promulgating a rule that includes any Federal mandate that may 
result in the 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 covered agencies to identify 
and consider a reasonable number of regulatory alternatives before 
promulgating a rule. As discussed in the preamble, this joint final 
rule amends the agencies' CRA regulations by making one technical 
correction. Therefore, the OCC and the OTS have determined that this 
joint final rule will not result in expenditures by State, local, and 
tribal governments, or by the private sector, of $100 million or more 
in any one year. Accordingly, the OCC and the OTS have not prepared a 
budgetary impact statement or specifically addressed the regulatory 
alternatives considered.

List of Subjects

12 CFR Part 25

    Community development, Credit, Investments, National banks, 
Reporting and recordkeeping requirements.

12 CFR Part 228

    Banks, banking, Community development, Credit, Federal Reserve 
System, Investments, Reporting and recordkeeping requirements.

12 CFR Part 345

    Banks, banking, Community development, Credit, Investments, 
Reporting and recordkeeping requirements.

12 CFR Part 563e

    Community development, Credit, Investments, Reporting and 
recordkeeping requirements, Savings associations.

Office of the Comptroller of the Currency

12 CFR CHAPTER I

    For the reasons discussed in the joint preamble, 12 CFR part 25 is 
amended as follows:

PART 25--[AMENDED]

    1. The authority citation for part 25 continues to read as follows:

    Authority: 12 U.S.C. 21, 22, 26, 27, 30, 36, 93a, 161, 215, 
215a, 481, 1814, 1816, 1828(c), and 2901 through 2907.


Sec. 25.12  [Amended]

    2. In Sec. 25.12(h)(3), the cross reference ``13 CFR 121.802(a)(2) 
and (3)'' is revised to read ``the Small Business Administration's 
Development Company or Small Business Investment Company programs (13 
CFR 121.301)''.

    Dated: April 2, 1996.
Eugene A. Ludwig,
Comptroller of the Currency.

Federal Reserve System

12 CFR CHAPTER II

    For the reasons discussed in the joint preamble, 12 CFR part 228 is 
amended as follows:

PART 228--[AMENDED]

    1. The authority citation for part 228 continues to read as 
follows:

    Authority: 12 U.S.C. 321, 325, 1828(c), 1842, 1843, 1844, and 
2901 et seq.


Sec. 228.12  [Amended]

    2. In Sec. 228.12(h)(3), the cross reference ``13 CFR 121.802(a) 
(2) and (3)'' is revised to read ``the Small Business Administration's 
Development Company or Small Business Investment Company programs (13 
CFR 121.301)''.

    By order of the Board of Governors of the Federal Reserve 
System, March 20, 1996.
William W. Wiles,
Secretary of the Board.

Federal Deposit Insurance Corporation

12 CFR CHAPTER III

    For the reasons discussed in the joint preamble, 12 CFR part 345 is 
amended as follows:

PART 345--[AMENDED]

    1. The authority citation for part 345 continues to read as 
follows:

    Authority: 12 U.S.C. 1814-1817, 1819-1820, 1828, 1831u and 2901-
2907, 3103-3104, and 3108(a).

[[Page 21364]]

Sec. 345.12  [Amended]

    2. In Sec. 345.12(h)(3), the cross reference ``13 CFR 121.802(a) 
(2) and (3)'' is revised to read ``the Small Business Administration's 
Development Company or Small Business Investment Company programs (13 
CFR 121.301)''.

    By order of the Board of Directors of the Federal Deposit 
Insurance Corporation.

    Dated: April 3, 1996.
Jerry L. Langley,
Executive Secretary.

Office of Thrift Supervision

12 CFR CHAPTER V

    For the reasons discussed in the joint preamble, 12 CFR part 563e 
is amended as follows:

PART 563e--[AMENDED]

    1. The authority citation for part 563e continues to read as 
follows:

    Authority: 12 U.S.C. 1462a, 1463, 1464, 1467a, 1814, 1816, 
1828(c), and 2901 through 2907.


Sec. 563e.12  [Amended]

    2. In Sec. 563e.12(g)(3), the cross reference ``13 CFR 121.802(a) 
(2) and (3)'' is revised to read ``the Small Business Administration's 
Development Company or Small Business Investment Company programs (13 
CFR 121.301).''

    Dated: April 5, 1996.

    By the Office of Thrift Supervision.
Jonathan L. Fiechter,
Acting Director.
[FR Doc. 96-11454 Filed 5-9-96; 8:45 am]
BILLING CODE 4810-33-P, 6210-01-P, 6714-01-P, 6720-01-P