46190 Federal Register / Vol. 73, No. 154 / Friday, August 8, 2008 / Rules and Regulations 

(c) Cash in lieu of donated foods. In 

accordance with the Richard B. Russell 

National School Lunch Act, and with 7 

CFR part 226, the State administering 

agency must determine whether child 

care and adult care institutions 

participating in CACFP wish to receive 

donated foods or cash in lieu of donated 

foods, and ensure that they receive the 

preferred form of assistance. The State 

administering agency must inform the 

distributing agency (if a different 

agency) which institutions wish to 

receive donated foods and must ensure 

that such foods are provided to them. 

However, if the State administering 

agency, in consultation with the 

distributing agency, determines that 

distribution of such foods would not be 

cost-effective, it may, with the 

concurrence of FNS, provide cash 

payments to the applicable institutions 

instead. 

(d) Use of donated foods in a contract 

with a food service management 

company. A child care or adult care 

institution may use donated foods in a 

contract with a food service 

management company to conduct its 

food service. The contract must meet the 

requirements in Subpart D of this part 

with respect to donated foods, and must 

also meet requirements in 7 CFR part 

226 and 7 CFR parts 3016 or 3019, as 

applicable, with respect to the 

procurement of such contracts. 

(e) Applicability of other requirements 

in this subpart to CACFP. The 

requirements in this subpart relating to 

the ordering, storage and inventory 

management, and use of donated foods 

in NSLP, also apply to CACFP. 

However, in accordance with 7 CFR part 

226, a child care or adult care 

institution that uses donated foods to 

prepare and provide meals to other such 

institutions is considered a food service 

management company. 

§ 250.62 Summer Food Service Program 

(SFSP). 

(a) Distribution of donated foods in 

SFSP. The Department provides 

donated foods in SFSP to distributing 

agencies, which provide them to eligible 

service institutions participating in 

SFSP for use in serving nutritious meals 

to needy children primarily in the 

summer months, in their nonprofit food 

service programs. Distributing agencies 

and service institutions in SFSP must 

also adhere to Federal regulations in 7 

CFR part 225, as applicable. 

(b) Types and quantities of donated 

foods distributed. The distributing 

agency receives donated foods available 

under Section 6 and Section 14 of the 

Richard B. Russell National School 

Lunch Act (42 U.S.C. 1755 and 1762), 

and may also receive donated foods 

under Section 32 (7 U.S.C. 612c), 

Section 416 (7 U.S.C. 1431), or Section 

709(7 U.S.C. 1446a–1), as available, for 

distribution to eligible service 

institutions participating in SFSP. 

Section 6 donated foods are provided to 

distributing agencies in accordance with 

the number of meals served in the State 

in the previous school year that are 

eligible for donated food support, in 

accordance with 7 CFR part 225. 

(c) Distribution of donated foods to 

service institutions in SFSP. The 

distributing agency provides donated 

food assistance to eligible service 

institutions participating in SFSP based 

on the number of meals served that are 

eligible for donated food support, in 

accordance with 7 CFR part 225. 

(d) Use of donated foods in a contract 

with a food service management 

company. A service institution may use 

donated foods in a contract with a food 

service management company to 

conduct the food service. The contract 

must meet the requirements in Subpart 

D of this part with respect to donated 

foods, and must also meet requirements 

in 7 CFR part 225 and 7 CFR parts 3016 

or 3019, as applicable, with respect to 

the procurement of such contracts. 

(e) Applicability of other requirements 

in this subpart to SFSP. The 

requirements in this subpart relating to 

the ordering, storage and inventory 

management, and use of donated foods 

in NSLP, also apply to SFSP. 

Dated: July 31, 2008. 

Nancy Montanez Johner, 

Under Secretary, Food, Nutrition, and 

Consumer Services. 

[FR Doc. E8–18230 Filed 8–7–08; 8:45 am] 

BILLING CODE 3410–30–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 226 

[Regulation Z; Docket No. R–1320] 

Truth in Lending 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Final rule; staff commentary. 

SUMMARY: The Board is publishing a 

final rule amending the staff 

commentary that interprets the 

requirements of Regulation Z (Truth in 

Lending). The Board is required to 

adjust annually the dollar amount that 

triggers requirements for certain home 

mortgage loans bearing fees above a 

certain amount. The Home Ownership 

and Equity Protection Act of 1994 

(HOEPA) sets forth rules for homesecured loans in which the total points 

and fees payable by the consumer at or 

before loan consummation exceed the 

greater of $400 or 8 percent of the total 

loan amount. In keeping with the 

statute, the Board has annually adjusted 

the $400 amount based on the annual 

percentage change reflected in the 

Consumer Price Index that is in effect 

on June 1. The adjusted dollar amount 

for 2009 is $583. This adjustment does 

not affect the new rules for ‘‘higherpriced mortgage loans’’ adopted by the 

Board in July 2008. 

EFFECTIVE DATE: January 1, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Dana Miller, Attorney, Division of 

Consumer and Community Affairs, 

Board of Governors of the Federal 

Reserve System, at (202) 452–3667. For 

the users of Telecommunications Device 

for the Deaf (‘‘TDD’’) only, contact (202) 

263–4869. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Truth in Lending Act (TILA; 15 

U.S.C. 1601–1666j) requires creditors to 

disclose credit terms and the cost of 

consumer credit as an annual 

percentage rate. The act requires 

additional disclosures for loans secured 

by a consumer’s home, and permits 

consumers to cancel certain transactions 

that involve their principal dwelling. 

TILA is implemented by the Board’s 

Regulation Z (12 CFR part 226). The 

Board’s official staff commentary (12 

CFR part 226 (Supp. I)) interprets the 

regulation, and provides guidance to 

creditors in applying the regulation to 

specific transactions. 

HOEPA was contained in the Riegle 

Community Development and 

Regulatory Improvement Act of 1994 

and was enacted as an amendment to 

TILA. Public Law 103–325, 108 Stat. 

2160 (60 FR 15463). In 1995, the Board 

amended Regulation Z to implement 

HOEPA. These amendments, contained 

in §§ 226.32 and 226.34 of the 

regulation, impose substantive 

limitations and additional disclosure 

requirements on certain closed-end 

home mortgage loans bearing rates or 

fees above a certain percentage or 

amount. As enacted, the statute requires 

creditors to comply with HOEPA’s 

requirements if the total points and fees 

payable by the consumer at or before 

loan consummation exceed the greater 

of $400 or 8 percent of the total loan 

amount. The statute requires the Board 

to adjust the $400 figure annually on 

January 1 based on the annual 

percentage change in the Consumer 

Price Index (CPI) that was reported on 

the preceding June 1. 15 U.S.C. 


rfrederick on PRODPC74 with RULES
Federal Register / Vol. 73, No. 154 / Friday, August 8, 2008 / Rules and Regulations 46191 

1602(aa)(3) and 12 CFR 226.32(a)(1)(ii). 

The Board adjusted the $400 amount to 

$561 for the year 2008. 

The Bureau of Labor Statistics 

publishes consumer-based indices 

monthly, but does not report a CPI 

change on June 1; adjustments are 

reported in the middle of each month. 

The Board uses the CPI–U index, which 

is based on all urban consumers and 

represents approximately 87 percent of 

the U.S. population, as the index for 

adjusting the $400 dollar figure. The 

adjustment to the CPI–U index reported 

by the Bureau of Labor Statistics on May 

14, 2008, was the CPI–U index in effect 

on June 1, and reflects the percentage 

increase from April 2007 to April 2008. 

The adjustment to the $400 figure below 

reflects a 3.94 percent increase in the 

CPI–U index for this period and is 

rounded to whole dollars for ease of 

compliance. 

II. Adjustment and Commentary 

Revision 

Effective January 1, 2009, for purposes 

of determining whether a home 

mortgage transaction is covered by 12 

CFR 226.32 (based on the total points 

and fees payable by the consumer at or 

before loan consummation), a loan is 

covered if the points and fees exceed the 

greater of $583 or 8 percent of the total 

loan amount. Comment 32(a)(1)(ii)–2, 

which lists the adjustments for each 

year, is amended to reflect the dollar 

adjustment for 2009. Because the timing 

and method of the adjustment is set by 

statute, the Board finds that notice and 

public comment on the change are 

unnecessary. 

This adjustment is being made 

pursuant to TILA section 103(aa)(3). In 

July 2008, the Board used its authority 

in TILA section 129(l)(2) to amend 

Regulation Z to prohibit certain acts and 

practices in connection with ‘‘higherpriced mortgage loans.’’ These 

additional protections and the 

definition of ‘‘higher-priced mortgage 

loans’’ are contained in section 226.35 

of Regulation Z. The adjustment being 

published today pursuant to section 

103(aa) does not affect the new rules for 

‘‘higher-priced mortgage loans’’ adopted 

by the Board in section 226.35. 

III. Regulatory Flexibility Analysis 

The Board certifies that this 

amendment will not have a substantial 

effect on regulated entities because the 

only change is to raise the threshold for 

transactions requiring HOEPA 

disclosures. 

List of Subjects in 12 CFR Part 226 

Advertising, Federal Reserve System, 

Mortgages, Reporting and recordkeeping 

requirements, Truth in lending. 

■ For the reasons set forth in the 

preamble, the Board amends Regulation 

Z, 12 CFR part 226, as set forth below: 

PART 226—TRUTH IN LENDING 

(REGULATION Z) 

■ 1. The authority citation for part 226 

continues to read as follows: 

Authority: 12 U.S.C. 3806; 15 U.S.C. 1604 

and 1637(c)(5). 

■ 2. In Supplement I to part 226, under 

Section 226.32—Requirements for 

Certain Closed-End Home Mortgages, 

under Paragraph 32(a)(1)(ii), paragraph 

2.xiv. is added to read as follows: 

Supplement I to Part 226—Official Staff 

Interpretations 

* * * * * 

Subpart E—Special Rules for Certain 

Home Mortgage Transactions 

* * * * * 

Section 226.32—Requirements for 

Certain Closed-End Home Mortgages 

32(a) Coverage 

* * * * * 

Paragraph 32(a)(1)(ii) 

* * * * * 

2. Annual adjustment of $400 

amount. 

* * * * * 

xiv. For 2009, $583, reflecting a 3.94 

percent increase in the CPI–U from June 

2007 to June 2008, rounded to the 

nearest whole dollar. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, acting through the 

Director of the Division of Consumer and 

Community Affairs under delegated 

authority. 

Dated: August 5, 2008. 

Jennifer J. Johnson, 

Secretary of the Board. 

[FR Doc. E8–18275 Filed 8–7–08; 8:45 am] 

BILLING CODE 6210–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[USCG–2008–0785] 

Drawbridge Operation Regulations; 

Shrewsbury River, Route 36 Bridge, 

Highlands, NJ, Schedule Change 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of temporary deviation 

from regulations; request for comments. 

SUMMARY: The Commander, First Coast 

Guard District, has issued a temporary 

deviation from the regulation governing 

the operation of the Route 36 Bridge, 

across the Shrewsbury River, mile 1.8, 

at Highlands, New Jersey. This 

deviation will test a change to the 

drawbridge operation schedule to 

determine whether a permanent change 

to the schedule is needed. This 

deviation will allow the bridge to open 

on signal for all marine traffic once an 

hour on the hour between 4 p.m. and 7 

p.m. on weekends and holidays. 

DATES: This deviation is effective from 

4 p.m. on August 2, 2008, through 7 

p.m. on September 1, 2008. Comments 

must reach the Coast Guard on or before 

November 1, 2008. 

ADDRESSES: You may submit comments 

identified by Coast Guard docket 

number USCG–2008–0785 to the Docket 

Management Facility at the U.S. 

Department of Transportation. To avoid 

duplication, please use only one of the 

following methods: 

(1) Online: http:// 

www.regulations.gov. 

(2) Mail: Docket Management Facility 

(M–30), U.S. Department of 

Transportation, West Building ground 

floor, Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590–

0001. 

(3) Hand Delivery: Same as mail 

address above, between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. The telephone number 

is (202) 366–9329. 

(4) Fax: (202) 493–2251. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Gary Kassof, Project Officer, First Coast 

Guard District, (212) 668–7165. 

If you have questions on viewing or 

submitting material to the docket, call 

Renee V. Wright, Program Manager, 

Docket Operations, telephone (202) 

366–9826. 

SUPPLEMENTARY INFORMATION: 


rfrederick on PRODPC74 with RULES