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

30545

Vol. 61, No. 117

Monday, June 17, 1996

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

9 CFR Parts 1 and 3

[Docket No. 93–076–9]

RIN 0579–AA59

Animal Welfare; Marine Mammals

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Notice of meeting.

SUMMARY: The purpose of this notice is

to announce the third and final meeting

of the Marine Mammal Negotiated

Rulemaking Advisory Committee.

DATES: July 8, 9, and 10, 1996, from 8:30

a.m. to 5:00 p.m. each day.

ADDRESSES: The meeting will be held at

the USDA Center at Riverside,

Conference Center Rooms A and B, 4700

River Road, Riverdale, Maryland 20737,

(301) 734–7833.

FOR FURTHER INFORMATION CONTACT: Dr.

Barbara Kohn, Senior Staff Veterinarian,

Animal Care Staff, REAC, APHIS, 4700

River Road Unit 84, Riverdale, MD

20737–1234, (301) 734–7833.

SUPPLEMENTARY INFORMATION: In a

Federal Register notice published on

May 22, 1995 (60 FR 27049–27051,

Docket No. 93–076–3), we announced

our intent to establish a Marine

Mammal Negotiated Rulemaking

Advisory Committee (Committee),

chartered under the Federal Advisory

Committee Act (Pub. L. 92–463). The

Committee will review the current

regulations and standards under the

Animal Welfare Act concerning the care

and maintenance of captive marine

mammals, and provide consensus

language to amend the regulations. The

first meeting of the Committee, which

was announced in a Federal Register

notice published on September 8, 1995

(60 FR 46783–46784, Docket No. 93–

076–7), was held on September 25–26,

1995. The second meeting of the

Committee, which was announced in a

Federal Register notice published on

March 8, 1996 (61 FR 9371, Docket No.

93–076–8), was held on April 1–3, 1996.

The March 8 Federal Register notice

stated that the April 1–3 meeting would

be the final Committee meeting.

However, following that meeting,

funding was obtained to allow for one

more meeting. This notice announces

the third and final meeting of the

Committee.

The purpose of the meeting is to bring

together members of the Animal and

Plant Health Inspection Service,

representatives of the marine mammal

public display community, the marine

mammal research community, the

animal welfare community, and

members of other Federal agencies with

a definable stake in marine mammal

care issues to frame a recommended

rulemaking proposal to amend the

current regulatory program concerning

care and maintenance standards for

captive marine mammals.

The Committee will determine the

final agenda for the meeting at its

beginning. The tentative agenda for the

meeting is as follows:

First Day

Morning Session—8:30 a.m.

Establish Agenda for Meeting

Discussion of Marine Mammal

Regulations

Afternoon Session—1 p.m.

Discussion of Marine Mammal

Regulations

Public Comments

Second Day

Morning Session—8:30 a.m.

Establish Agenda for Day

Committee Administrative Issues

Discussion of Marine Mammal

Regulations

Afternoon Session—1 p.m.

Discussion of Marine Mammal

Regulations

Public Comments

Third Day

Morning Session—8:30 a.m.

Establish Agenda for Day

Committee Administrative Issues

Discussion of Marine Mammal

Regulations

Afternoon Session—1 p.m.

Discussion of Marine Mammal

Regulations

Public Comments

The meeting will be open to the

public. Public participation at the

meeting will be allowed during periods

announced at the meeting for this

purpose.

This notice is given pursuant to

section 10 of the Federal Advisory

Committee Act.

Done in Washington, DC, this 11th day of

June 1996.

Terry L. Medley,

Acting Administrator, Animal and Plant

Health Inspection Service.

[FR Doc. 96–15279 Filed 6–14–96; 8:45 am]

BILLING CODE 3410–34–P

FEDERAL RESERVE SYSTEM

12 CFR Part 204

[Regulation D; Docket No. R–0929]

Reserve Requirements of Depository

Institutions

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Board of Governors of the

Federal Reserve System is proposing to

amend its Regulation D regarding

reserve requirements of depository

institutions issued pursuant to section

19 of the Federal Reserve Act in order

to reduce regulatory burden and

simplify and update requirements. This

proposal to modernize Regulation D is

in accordance with the Board’s policy of

regular review of its regulations and the

Board’s review of its regulations under

section 303 of the Riegle Community

Development and Regulatory

Improvement Act of 1994.

DATES: Comments must be received by

August 16, 1996.

ADDRESSES: Comments, which should

refer to Docket No. R–0929, 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, DC 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

those hours. Both the mail room and the

security control room are accessible

from the courtyard entrance on 20th
30546 Federal Register / Vol. 61, No. 117 / Monday, June 17, 1996 / Proposed Rules

Street between Constitution Avenue and

C Street, N.W. Comments may be

inspected in Room MP–500 between

9:00 a.m. and 5:00 p.m. weekdays,

except as provided in § 261.8 of the

Board of Governors’ Rules Regarding

Availability of Information, 12 CFR

261.8.

FOR FURTHER INFORMATION CONTACT:

Brian Reid, Economist, Division of

Monetary Affairs (202/452–3589); Sue

Harris, Economist, Division of Research

and Statistics (202/452–3490); or Rick

Heyke, Staff Attorney, Legal Division

(202/452–3688). For the hearing

impaired only, Telecommunications

Device for the Deaf (TDD), Dorothea

Thompson (202/452–3544).

SUPPLEMENTARY INFORMATION:

Background

As part of its policy of regular review

of its regulations, and consistent with

section 303 of the Riegle Community

Development and Regulatory

Improvement Act of 1994 (‘‘Riegle

Act’’), the Board of Governors of the

Federal Reserve System (‘‘Board’’) is

proposing to amend its Regulation D

regarding reserve requirements of

depository institutions (12 CFR Part

204) issued pursuant to section 19 of the

Federal Reserve Act. Section 303 of the

Riegle Act requires each federal banking

agency to review and streamline its

regulations and written policies to

improve efficiency, reduce unnecessary

costs, and remove inconsistencies and

outmoded and duplicative

requirements. The proposed

amendments are designed to reduce

regulatory burden and simplify and

update the Regulation.

The principal amendments being

proposed are described below. In

general, the amendments delete

transitional rules relating to the

expansion of reserve requirements to

nonmember depository institutions, the

authorization of NOW accounts

nationwide, and other matters that no

longer have a significant effect.

Time Deposits

Section 204.2(c)(1) defines time

deposits as deposits from which the

depositor may not make withdrawals

within six days after the date of deposit

(or notice of withdrawal) or partial

withdrawal unless such withdrawals are

subject to an early withdrawal penalty.

Under certain circumstances specified

in footnote 1, a time deposit may be

paid before maturity without imposing

the early withdrawal penalty. A time

deposit generally may be paid without

penalty from the seventh day after

deposit through maturity, absent partial

withdrawals, as the imposition of an

early withdrawal penalty is required

under the time deposit definition only

during the first six days after deposit.

The Board proposes to clarify that the

footnote is not intended to impose a

prohibition on withdrawals before

maturity, but to permit penalty-free

withdrawals under certain

circumstances during the period when

the imposition of an early withdrawal

penalty otherwise would be required.

Nonpersonal Time Deposits

The definition of nonpersonal time

deposit in § 204.2(f)(1) (iii) and (iv)

distinguishes between transferable time

deposits originally issued before

October 1, 1980, and those issued on or

after that date. Since the Board believes

that most of these deposits have since

matured, this distinction is no longer

meaningful and the Board proposes to

delete it.

Section 204.2(f)(3) requires that a

nonpersonal time deposit with a stated

maturity or notice period of 11⁄2 years or

more either be subject to a minimum

withdrawal penalty of 30 days’ interest

(if withdrawn more than six days but

within 11⁄2 years after the date of

deposit) or be treated as a deposit with

an original maturity or notice period of

less than 11⁄2 years. Since 1991, the

reserve requirement ratio has been set at

zero for all time deposits regardless of

maturity. Moreover, the form for

reporting reservable liabilities (Form FR

2900) no longer requires depository

institutions to report the amount of time

deposits by category of maturity. The

requirement to treat time deposits not

subject to a minimum penalty of 30

days’ interest as having an initial

maturity of less than 11⁄2 years is thus

of no practical impact. The Board

therefore proposes to delete it and

footnote 2 to § 204.2(c)(1)(i), which

refers to it.

Eurocurrency Liabilities

The definition of Eurocurrency

liabilities in section 204.2(h)(1) includes

an amount equal to certain assets that

were held by a depository institution’s

International Banking Facility or by

non-United States offices of the

depository institution or of an affiliated

Edge or agreement corporation and that

were acquired from the depository

institution’s United States offices on or

after October 7, 1979. The Board

proposes to delete the exclusion of

assets acquired before October 7, 1979,

because it believes that the amount of

these assets is immaterial.

Allocation of Reserve Requirements

Exemption

The allocation of the reserve

requirements exemption specified in

§ 204.3(a)(3)(i) requires that the

exemption be allocated first to net

transaction accounts in the form of

NOW (and similar) accounts and second

to other transaction accounts. This

provision was related to the phase-in of

reserve requirements for nonmember

banks and the authorization of NOW

and similar transaction accounts

nationwide. Since the phase-in is now

complete and nonmember institutions

are subject to the same reserve

requirements as member banks, the

provision has ceased to have any effect,

and the Board proposes to delete it.

Deductions Allowed in Computing

Reserves

The deduction in § 204.3(f)(1) limits

the amount of cash items in process of

collection and balances subject to

immediate withdrawal due from

domestic depository institutions that

may be subtracted from an institution’s

NOW accounts. Amounts in excess of

this limit may be subtracted from other

transaction accounts. Since the phase-in

of reserve requirements for nonmember

banks is now complete, all types of

transaction accounts are subject to the

same reserve requirements. Therefore,

this limitation has ceased to have any

effect and the Board proposes to delete

it.

Federal Reserve Credit for Depository

Institutions Maintaining Pass-Through

Balances

Section 19(e) of the Federal Reserve

Act prohibits member banks from acting

as the medium or agent of a nonmember

bank in applying for or receiving

discounts from a Federal Reserve Bank

except by permission of the Board.

Regulation A, Extensions of Credit by

Federal Reserve Banks (12 CFR Part

201), was amended in 1993 to delegate

authority for this permission to the

Federal Reserve Bank that extends the

credit. 12 CFR 201.6(d). The proposal

would correspondingly amend

§ 204.3(i)(5)(iv) of Regulation D

effectively to complete the delegation of

this authority to the Federal Reserve

Bank that extends the credit.

Transition Rules

The regulation currently includes in

§ 204.4(a) a transition rule for

depository institutions outside of

Hawaii that were nonmembers of the

Federal Reserve System on July 1, 1979,

and that remained nonmembers. With

the completion of the phase-in on

September 10, 1987, this rule ceased to
Federal Register / Vol. 61, No. 117 / Monday, June 17, 1996 / Proposed Rules 30547

have any effect. Section 204.4(b)

contains a transition rule for depository

institutions that were not members

between July 1, 1979, and September 1,

1980, and that subsequently became

members; since reserve requirements for

nonmember institutions are fully

phased in, this rule also has ceased to

have any effect. Section § 204.4(d)

contains a transition rule for

nonmember depository institutions that

were engaged in business in Hawaii on

August 1, 1978, and that remained

nonmembers; this rule ceased to have

any effect on January 7, 1993. Therefore,

the Board proposes to delete these rules.

Section 204.4(c) sets forth a transition

rule for de novo depository institutions

with daily average reservable liabilities

of less than $50 million whereby their

reserve requirement is 40 percent of the

reserves otherwise required in

maintenance periods during the first

quarter after entering into business,

increasing to 100 percent in

maintenance periods during the eighth

and succeeding quarters. The low

reserve tranche of a depository

institution’s net transaction accounts is

currently subject to a reserve

requirement of 3 percent, as compared

with 10 percent for its net transaction

accounts in excess of the low reserve

tranche. Since 1982, the low reserve

tranche cutoff has been indexed to net

transaction accounts of all depository

institutions; as a result, the cutoff has

increased from $25 million to $52

million. Thus, all transaction accounts

of de novo depository institutions that

could avail themselves of this transition

rule are now covered by the low reserve

tranche. Moreover, beginning in 1982,

$2 million of reservable deposits have

been subject to a zero percent reserve

requirement; this exemption is indexed

to total reservable liabilities of all

depository institutions and is currently

$4.3 million.

In addition, a depository institution’s

vault cash may be used to meet its

reserve requirement. Since de novo

depository institutions generally have

relatively low levels of deposits in

relation to the reserve requirement

exemption and the low reserve tranche

cutoff, most are able to meet reserve

requirements with vault cash and the

others maintain minimal reserve

balances. (Currently 18 depository

institutions are receiving de novo phaseins, and 14 of them are fully meeting

their reserve requirements with vault

cash.) Thus, this rule provides minimal

benefits in terms of reducing required

reserve balances of de novo institutions

and unnecessarily complicates the

processing of deposit reporting and

reserve calculations. Consequently, the

Board proposes to delete it. In order to

avoid disrupting economic expectations

based on the de novo transition rule,

however, any institution covered by the

de novo transition rule on the effective

date of the amendments will be

grandfathered for purposes of

determining its required reserves.

Section 204.4(e) governs transition

requirements in cases of mergers and

consolidations. Paragraph (e)(1) covers

‘‘similar’’ mergers, where all depository

institutions are subject to the same

transition rules, and paragraph (e)(2),

‘‘dissimilar’’ mergers, where the

institutions are subject to different

transition rules. Currently, no

institution is subject to the ‘‘dissimilar’’

merger transition rules. With the phasein of reserve requirements for

nonmember institutions, the transition

rules (other than the merger and de novo

rules) have become inoperative.

Moreover, as discussed above, the de

novo rules no longer have a significant

effect in most cases, and the Board is

proposing to delete them. Therefore, the

difference between the ‘‘similar’’ and

‘‘dissimilar’’ merger rules is minimal,

and would be eliminated under the

proposal. As a result, all mergers would

be ‘‘similar’’ mergers. Therefore, the

Board proposes to delete the

‘‘dissimilar’’ merger transition rule and

apply the current ‘‘similar’’ merger

transition rule to all mergers.

Reserve Ratios

Section 204.9(b) sets forth the reserve

ratios in effect during the last reserve

computation period prior to September

1, 1980, for use in transition

adjustments that are no longer

applicable. The Board proposes to

delete the section.

Initial Regulatory Flexibility Analysis

The Regulatory Flexibility Act (5

U.S.C. 601–612) requires an agency to

publish an initial regulatory flexibility

analysis with any notice of proposed

rulemaking. Two of the requirements of

an initial regulatory flexibility analysis

(5 U.S.C. 603(b))—a description of the

reasons why the agency is considering

the action and a statement of the

objectives of, and legal basis for, the

proposed rule—are contained in

‘‘Supplementary Information—

Background’’ above. The Regulation D

amendments being proposed require no

additional reporting or recordkeeping

requirements and do not overlap with

other federal rules.

Another requirement for the initial

regulatory flexibility analysis is a

description of and, where feasible, an

estimate of the number of small entities

to which the proposed rule will apply.

The proposal will apply to all

depository institutions regardless of

size, except that the transition rule for

de novo institutions applies only to

institutions with total transaction

accounts, nonpersonal time deposits,

and Eurocurrency liabilities of less than

$50 million. Currently there are 18

institutions subject to the de novo

transition rule.

Except for the transition rules relating

to dissimilar mergers and de novo

institutions, the amendments are

burden-reducing. The current transition

rules for dissimilar mergers provide a

minor temporary potential reduction in

reserve requirements for certain merged

institutions. However, no institutions

are currently benefiting from the

dissimilar merger rules. The transition

rules for de novo institutions, which are

only applicable to institutions with

reservable liabilities of less than $50

million and provide only a temporary

benefit, have become much less

significant with the increase in the lowreserve tranche cutoff to $52.0 million.

Partly for this reason, only 4 of the 18

institutions currently receiving de novo

phase-in benefits are not fully meeting

their reserve requirements with vault

cash. If the de novo transition rule were

eliminated, the number of de novo

institutions with required reserves in

excess of vault cash would not change,

and the additional required reserves of

these 4 institutions would be small.

Moreover, in order to avoid disrupting

economic expectations based on the de

novo transition rule, any institution

covered by the de novo transition rule

on the effective date of the amendments

will be grandfathered for the purpose of

determining its required reserves.

Therefore, the Board believes that the

amendments will not have a significant

adverse economic impact on a

substantial number of small entities.

Paperwork Reduction Act

In accordance with the Paperwork

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

Ch. 3506; 5 CFR part 1320, Appendix

A.1), the Board has reviewed the

proposed rule under the authority

delegated to the Board by the Office of

Management and Budget. No collection

of information pursuant to the

Paperwork Reduction Act are contained

in the proposed rule.

List of Subjects in 12 CFR Part 204

Banks, banking, Reporting and

recordkeeping requirements.

For the reasons set forth in the

preamble, the Board proposes to amend

part 204 of chapter II of title 12 as

follows:
30548 Federal Register / Vol. 61, No. 117 / Monday, June 17, 1996 / Proposed Rules

13See footnote 11.

14See footnote 12.

PART 204—RESERVE

REQUIREMENTS OF DEPOSITORY

INSTITUTIONS (REGULATION D)

1. The authority citation for part 204

continues to read as follows:

Authority: 12 U.S.C. 248(a), 248(c), 371a,

461, 601, 611, and 3105.

2. Section 204.2 is amended as

follows:

a. In paragraph (c)(1)(i), the

introductory text of footnote 1 is

amended by removing ‘‘before maturity’’

and adding in its place, ‘‘during the

period when an early withdrawal

penalty would otherwise be required

under this part’’, removing ‘‘the’’ after

‘‘imposing’’ adding in its place, ‘‘an’’,

removing ‘‘penalties’’ and adding in its

place ‘‘penalty’’, and footnote 2 is

removed.

b. In paragraphs (c)(1)(iv)(C),

(c)(1)(iv)(E), and (d)(2), footnotes 3

through 6 are redesignated as footnotes

2 through 5, respectively.

c. Paragraph (f)(1)(iii) is revised.

d. Paragraph (f)(1)(iv) is removed and

paragraph (f)(1)(v) is redesignated as

paragraph (f)(1)(iv).

e. In newly redesignated paragraphs

(f)(1)(iv)(C) and (f)(1)(iv)(E), footnotes 7

and 8 are redesignated as footnotes 6

and 7, respectively.

f. Paragraph (f)(3) is removed.

g. In paragraph (h)(1)(ii)(A), footnote

10 is redesignated as footnote 8 and is

amended by removing ‘‘(1) that were

acquired before October 7, 1979, or (2)’’.

h. In paragraphs (h)(2)(ii) and (t),

footnotes 11 and 12 are redesignated as

footnotes 9 and 10, respectively, and

newly redesignated footnote 9 is

amended by revising ‘‘Footnote 10’’ to

read ‘‘footnote 8’’. The revisions are as

follows:

§ 204.2 Definitions.

* * * * *

(f)(1) Nonpersonal time deposit * * *

* * * * *

(iii) A transferable time deposit. A

time deposit is transferable unless it

contains a specific statement on the

certificate, instrument, passbook,

statement or other form representing the

account that is not transferable. A time

deposit that contains a specific

statement that it is not transferable is

not regarded as transferable even if the

following transactions can be effected: a

pledge as collateral for a loan, a

transaction that occurs due to

circumstances arising from death,

incompetency, marriage, divorce,

attachment, or otherwise by operation of

law or a transfer on the books or records

of the institution; and

* * * * *

3. Section 204.3 is amended as

follows:

a. Paragraph (a)(3)(i) is removed and

the paragraph designation (a)(3)(ii) is

removed.

b. Paragraph (f)(1) is revised.

c. Paragraph (i)(5)(iv) is removed.

The revisions are as follows:

§ 204.3 Computation and maintenance.

* * * * *

(f) Deductions allowed in computing

reserves. (1) In determining the reserve

balance required under this part, the

amount of cash items in process of

collection and balances subject to

immediate withdrawal due from other

depository institutions located in the

United States (including such amounts

due from United States branches and

agencies of foreign banks and Edge and

agreement corporations) may be

deducted from the amount of gross

transaction accounts. The amount that

may be deducted may not exceed the

amount of gross transaction accounts.

* * * * *

4. Section 204.4 is revised to read as

follows:

§ 204.4 Transitional adjustments in

mergers.

In cases of mergers and consolidations

of depository institutions, the amount of

reserves that shall be maintained by the

surviving institution shall be reduced by

an amount determined by multiplying

the amount by which the required

reserves during the computation period

immediately preceding the date of the

merger (computed as if the depository

institutions had merged) exceeds the

sum of the actual required reserves of

each depository institution during the

same computation period, times the

appropriate percentage as specified in

the following schedule:

Maintenance periods occurring

during quarters following merger

or consolidation

Percentage applied to difference to

compute

amount to

be subtracted

1 .................................................. 87.5

2 .................................................. 75.0

3 .................................................. 62.5

4 .................................................. 50.0

5 .................................................. 37.5

6 .................................................. 25.0

7 .................................................. 12.5

8 and succeeding ....................... 0

5. Section 204.8 is amended as

follows:

a. In paragraph (a)(2)(i)(B)(5),

footnotes 13 and 14 are redesignated as

footnotes 11 and 12, respectively.

b. In paragraph (a)(3)(v), footnotes 15

and 16 are redesignated as footnotes 13

and 14, respectively, and revised to read

as follows:

§ 204.8 International banking facilities.

(a) Definitions. * * *

* * * * *

(3) International banking facility

extension of credit or IBF loan * * *

* * * * *

(v) * * * 13 * * * 14 * * *

§ 204.9 [Amended]

6. Section 204.9 is amended by

removing paragraph (b), by

redesignating paragraph (a)(1) as

paragraph (a), and by redesignating

paragraph (a)(2) as paragraph (b).

By order of the Board of Governors of the

Federal Reserve System, June 10, 1996.

William W. Wiles,

Secretary of the Board.

[FR Doc. 96–15120 Filed 6–14–96; 8:45 am]

BILLING CODE 6210–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 94–SW–17–AD]

Airworthiness Directives; Schweizer

Aircraft Corporation and Hughes

Helicopters, Inc. Model 269A, 269A–1,

269B, and TH–55A Helicopters

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes to

supersede an existing airworthiness

directive (AD), applicable to Schweizer

Aircraft Corporation and Hughes

Helicopters, Inc. Model 269A, 269A–1,

269A–2, and 269B helicopters, that

currently requires initial and repetitive

inspections of the main rotor thrust

bearing (bearing) for bearing rotational

roughness, corrosion, inadequate

lubrication, physical damage, or

excessive zinc chromate paste or

moisture. This action would require the

same initial and repetitive inspections

required by the existing AD, but would

extend the retirement life for certain

bearings, and would remove the Model

269A–2 helicopter from, and add the

Model TH–55A helicopters to the

applicability of this AD. This proposal

is prompted by an FAA analysis of

service information issued by the