This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

26470

Vol. 61, No. 103

Tuesday, May 28, 1996

DEPARTMENT OF AGRICULTURE

Food Safety and Inspection Service

9 CFR Parts 319 and 381

[Docket No. 92–024E]

RIN 0583–AB51

Food Standards: Requirements for

Processed Meat and Poultry Products

Named by Use of an Expressed

Nutrient Content Claim and a

Standardized Term—Extension of

Comment Period

AGENCY: Food Safety and Inspection

Service, USDA.

ACTION: Notice; extension of comment

period.

SUMMARY: The Food Safety and

Inspection Service (FSIS) is extending

the comment period for the proposed

rule, ‘‘Food Standards: Requirements for

Processed Meat and Poultry Products

Named by Use of an Expressed Nutrient

Content Claim and a Standardized

Term’’ for an additional 180 days.

DATES: Comments must be received on

or before November 25, 1996.

ADDRESSES: An original and two copies

of written comments should be sent to:

FSIS Docket Clerk, Docket No. 92–024P,

Room 4352, South Agriculture Building,

Food Safety and Inspection Service,

U.S. Department of Agriculture,

Washington, DC 20250–3700. Oral

comments should be directed to Mr.

Charles R. Edwards, Director, Product

Assessment Division, at (202) 254–2565.

FOR FURTHER INFORMATION CONTACT: Mr.

Charles R. Edwards, Director, Product

Assessment Division, Regulatory

Programs, Food Safety and Inspection

Service, U.S. Department of Agriculture,

Washington, DC 20250–3700, (202) 254–

2565.

SUPPLEMENTARY INFORMATION: FSIS and

the Food and Drug Administration

(FDA) have initiated reviews of their

regulations pertaining to food standards

of identity and composition. Each

agency’s review responds in part to

President Clinton’s March 4, 1995,

memorandum to heads of departments

and agencies, titled ‘‘Regulatory

Reinvention Initiative.’’ This

memorandum directed departments and

agencies to conduct a page-by-page

review of all of their reguations and

eliminate or revise those that are

outdated or otherwise in need of reform.

On December 29, 1995, FSIS

published a proposed rule ‘‘Food

Standards: Requirements for Processed

Meat and Poultry Products Named by

Use of an Expressed Nutrient Content

Claim and a Standardized Term’’ (60 FR

67474). The rule proposes to establish a

general definition and standard of

identity for standardized meat and

poultry products that have been

modified to qualify for use of certain

expressed nutrient content claims as

part of the product name.

Also, on December 29, 1995, FDA

published an Advance Notice of

Proposed Rulemaking (ANPR) ‘‘Food

Standards of Identity, Quality, and Fill

of Containers; Common or Usual Name

Regulations; Request for Comments on

Existing Regulations,’’ (60 FR 67492).

The ANPR solicited comments from

interested parties on whether FDA’s

regulations regarding identity, quality,

and fill of container for standardized

foods and its common or usual name

regulations for nonstandardized foods

should be retained, revised, or revoked.

The ANPR also addressed the need for

consistency between FSIS and FDA in

the development and implementation of

food standards. FDA stated that it

believes such harmonization will help

manufacturers comply with the

requirements of both agencies. On May

1, 1996, FDA extended the comment

period on its ANPR until June 28, 1996,

to receive comments only on the issue

of FDA and FSIS harmonization of food

standards (61 FR 19220).

FSIS is also developing and will soon

publish an ANPR that will solicit

information from the public on what

direction further food standards reform

should take, including suggestions on

whether to alter or eliminate entirely the

regulations for standardized meat and

poultry products.

FSIS’s proposed rule and its soon-tobe-published ANPR encompass the

Agency’s food standards review

initiative. Therefore, to give the public

an opportunity to consider the proposed

rule and ANPR simultaneously, and in

response to requests, FSIS is extending

the comment period 180 days for the

proposed rule ‘‘Food Standards:

Requirements for Processed Meat and

Poultry Products Named by Use of an

Expressed Nutrient Content Claim and a

Standardized Term.’’

Done at Washington, DC, on: May 22, 1996.

Michael R. Taylor,

Acting Under Secretary for Food Safety.

[FR Doc. 96–13409 Filed 5–23–96; 1:41 pm]

BILLING CODE 3410–DM–P

FEDERAL RESERVE SYSTEM

12 CFR Part 230

[Regulation DD; Docket No. R–0904]

Truth in Savings

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Withdrawal of proposed official

staff interpretation.

SUMMARY: The Board is withdrawing

proposed revisions to the official staff

commentary to Regulation DD (Truth in

Savings) concerning guidance on issues

of general interest, based on

considerations of regulatory burden

which was published in the Federal

Register on December 6, 1995.

DATES: The proposal is withdrawn May

21, 1996.

FOR FURTHER INFORMATION CONTACT: Jane

Ahrens, Senior Attorney, or Michael L.

Hentrel, Staff Attorney, Division of

Consumer and Community Affairs,

Board of Governors of the Federal

Reserve System, at (202) 452–3667 or

452–2412. For users of

Telecommunications Device for the Deaf

(TDD) only, please contact Dorothea

Thompson, at (202) 452–3544.

SUPPLEMENTARY INFORMATION:

I. Background

The purpose of the Truth in Savings

Act (TISA), 12 U.S.C. 4301 et seq., is to

assist consumers in comparing deposit

accounts offered by depository

institutions. The TISA requires

institutions to disclose fees, the interest

rate, the annual percentage yield (APY),

and other account terms whenever a

consumer requests the information and

before an account is opened. Fees and

other information also must be provided

on any periodic statement the
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Proposed Rules 26471

institution sends to the consumer. Rules

are set forth for deposit account

advertisements and advance notices to

account holders of adverse changes in

terms. The act restricts how institutions

must determine the account balance on

which interest is calculated. The TISA

is implemented by the Board’s

Regulation DD (12 CFR part 230). The

regulation authorizes the issuance of

official staff interpretations.

On December 6, 1995 (60 FR 62349),

the Board published for comment

proposed amendments to the

commentary to Regulation DD. Mainly,

the proposed revisions provided

guidance on technical matters such as

the effect of a leap year on the

calculation of interest, the APY and the

annual percentage yield earned (APYE).

Comments addressing other technical

issues concerning the definition of

bonuses and time accounts were also

proposed.

The Board received nearly 50

comments on its proposal. About 90

percent of the comments were from

financial institutions. By far,

commenters focused on the proposals

addressing leap-year calculations and

compounding and crediting policies.

Overall, comments were mixed. Some

supported the proposals as helpful

clarifications. Others opposed the

proposals—particularly the revisions

concerning calculations in a leap year

and crediting interest—as being unduly

technical and unnecessary. Based on the

comments received and upon further

analysis, the Board is withdrawing all

proposed commentary revisions, due to

considerations of regulatory burden and

the narrow scope of the proposals.

II. Discussion

Leap-Year Calculations

Regulation DD requires institutions to

pay interest on the full amount of

principal in an interest-bearing account

each day. Institutions may apply a daily

rate of 1/365 or 1/366 of the interest rate

during a leap year. On August 8, 1994,

the Board issued a final staff

commentary for Regulation DD (59 FR

40217). Comment 7(a) (1)–4 clarified

that institutions may apply a daily rate

of 1/365 or 1/366 of the interest rate for

366 days during a leap year, if the

account will earn interest for February

29.

The Board published on December 6,

1995 proposed revisions to the

commentary that further discussed leapyear calculations of interest, as well as

the APY and the APYE. Numerous

commenters opposed the proposed

revisions (60 FR 62349). Many believed

the regulation sufficiently addresses the

rule, and that highly technical

interpretations were neither necessary

nor desirable. Other commenters

opposed the Board’s existing rule that

permits institutions sometimes to use a

daily factor of 1/366 or 1/365 during a

leap year—although these commenters

represent both ends of the spectrum.

Some believe a daily factor of 1/366

should never be used; others would

expand its use, for example to all

accounts during a calendar leap year.

Not all commenters opposed the

proposal. Some supported the revisions,

and sought further elaboration about

calculations for a variety of specific

accounts. After reviewing the concerns

raised and upon further analysis, the

Board has decided not to adopt the

proposed comments addressing leapyear calculations. The Board believes

that for some institutions, a variety of

specific examples would be helpful;

overall, however, the Board believes the

level of technical guidance proposed is

not necessary. The regulation and

commentary provide general guidance

on leap-year calculations, which, on

balance, the Board believes is the

appropriate level of interpretive detail at

this time.

Compounding and Crediting Policies

Institutions must pay interest on the

full amount of principal in the account

each day, but may compound or credit

interest at any frequency. Neither the

TISA nor the regulation define

‘‘compounding,’’ ‘‘crediting,’’ or

‘‘principal.’’ Proposed comment 7 (b)–4

would have provided that once interest

is credited to an account it becomes part

of the principal, and if interest remains

in the account, interest must accrue on

those funds.

Many commenters addressing the

issue favored the proposal as a

clarification of current banking practice.

However, many others were opposed to

the proposal. Commenters raised several

related concerns arising out of the

proposal about the definition of terms

such as ‘‘posting,’’ ‘‘crediting,’’ and

‘‘principal.’’ Those commenters argued

that the Board’s proposal raised issues

that should properly be addressed after

further notice and opportunity for

public comment. Others were concerned

about the effect of the proposal on time

accounts that permit consumers to

withdraw credited interest during the

account term without penalty. They

argued that if this interest were to be

considered part of the principal, early

withdrawal penalties could be triggered

under some account agreements. Some

commenters also stated that the TISA

and Regulation DD do not require such

a reading of the rules regarding the

payment of interest. Many stated that

the proposal would result in a reduction

of account choices or interest rates

available to consumers for those

institutions wishing to avoid accruing

interest on interest credited to and

remaining in the account.

The Board believes a number of valid

concerns were raised about issues that

were not addressed in the proposal.

Accordingly, the Board is withdrawing

the comment and will consider whether

further guidance is needed in the future

on these matters.

Other Proposed Revisions

The proposed commentary update

also addressed rounding rules for the

APYE and the definitions of time

account and bonuses. Given the

technical nature and narrow application

of these remaining proposals, the Board

believes the cost and regulatory burden

of reviewing and implementing changes

associated with these provisions

outweighs the benefits of additional

official guidance, and is therefore

withdrawing all proposed comments.

By order of the Board of Governors of the

Federal Reserve System, acting through the

Secretary of the Board under delegated

authority, May 21, 1996.

William W. Wiles,

Secretary of the Board.

[FR Doc. 96–13226 Filed 5–24–96; 8:45 am]

BILLING CODE 6210–01–P

12 CFR Part 245

[Regulation V; Docket No. R–0928]

Loan Guarantees for Defense

Production

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Proposed rule.

SUMMARY: The Board is proposing to

abolish its Regulation V as obsolete.

This consideration does not represent

any major policy change, but rather is

intended to eliminate an outmoded

regulation and reduce regulatory

burden.

DATES: Comments must be submitted on

or before July 29, 1996.

ADDRESSES: Comments, which should

refer to Docket No. R–0928, may be

mailed to Mr. William W. Wiles,

Secretary, Board of Governors of the

Federal Reserve System, 20th Street and

Constitution Avenue, N.W.,

Washington, D.C. 20551. Comments

addressed to Mr. Wiles also may be

delivered to the Board’s mail room

between 8:45 a.m. and 5:15 p.m. and to

the security control room outside of