This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

56705 

Vol. 73, No. 190 

Tuesday, September 30, 2008 

DEPARTMENT OF AGRICULTURE 

Office of the Secretary 

7 CFR Part 2 

Revision of Delegation of Authority 

AGENCY: Office of the Secretary, 

Department of Agriculture (USDA). 

ACTION: Final rule. 

SUMMARY: This document delegates to 

the Assistant Secretary for 

Administration the authority vested in 

the Secretary of Agriculture under the 

National Agriculture Research, 

Extension, and Teaching Policy Act of 

1977 to enter into cooperative 

agreements and under the Farm Security 

and Rural Investment Act of 2002 to 

implement programs for the Federal 

procurement and voluntary labeling of 

biobased products. It also rescinds the 

delegation of authority to the Chief 

Economist to implement the biobased 

procurement and voluntary labeling 

programs. 

DATES: These interim regulations are 

effective September 30, 2008. Comments 

are invited and should be received by 

October 30, 2008. 

ADDRESSES: USDA, Departmental 

Administration, Room 209–A Whitten 

Building, 1400 Independence Avenue, 

SW., Washington, DC 20250–0103. 

FOR FURTHER INFORMATION CONTACT: Mrs. 

Shana Love, Departmental 

Administration, Room 209–A Whitten 

Building, 1400 Independence Avenue, 

SW., Washington, DC 20250–0103; 

telephone: (202) 205–4008; fax: (202) 

720–2191; e-mail: 

biopreferred@usda.gov. Information 

regarding the BioPreferred Program is 

available on the Internet at http:// 

www.biopreferred.gov. 

SUPPLEMENTARY INFORMATION: Section 

9002 of the Farm Security and Rural 

Investment Act of 2002 (FSRIA), Public 

Law 107–171 established a program for 

the procurement of biobased products 

by Federal agencies and a voluntary 

program for labeling of biobased 

products. The Food, Conservation, and 

Energy Act of 2008, Public Law 110–246 

continues the biobased markets program 

and adds provisions related to the 

program. USDA refers to the program for 

the Federal procurement of biobased 

products and the voluntary program for 

labeling of biobased products, 

collectively, as the BioPreferred 

Program (Program). 

In an effort to make sure the Program 

continues to move forward and build 

demand for biobased products within 

the Federal government and 

commercially, management of the 

Program has been transferred from 

Office of the Chief Economist to 

Departmental Administration to 

enhance and strengthen the Program, as 

well as increase resources for research 

and analyses of emerging global energy 

issues and the necessary economic 

analysis of biobased products (that is, 

market identification, comparative costs 

with fossil energy derived product 

alternatives, and supply and demand 

estimations). 

Section 1472 of the National 

Agriculture Research, Extension and 

Teaching Policy Act of 1977, Public Law 

99–113 (7 U.S.C. 3318), grants the 

Secretary of Agriculture the authority to 

enter into cooperative agreements with 

Federal and State agencies and private 

organizations, to further research, 

extension, or teaching programs in the 

food and agricultural sciences of USDA. 

Because this authority does not extend 

to the Assistant Secretary for 

Administration, a delegation of the 

Secretary’s authority is necessary. This 

document sets forth that delegation, as 

well as delegations to the Assistant 

Secretary for Administration relating to 

the biobased procurement and labeling 

programs included in the Farm Security 

and Rural Investment Act of 2002. 

This rule relates to internal agency 

management. Therefore, pursuant to 5 

U.S.C. 553, notice of proposed rule 

making and opportunity for comment 

are not required, and this rule may be 

made effective less than 30 days after 

publication in the Federal Register. 

Further, since this rule relates to 

internal agency management, it is 

exempt from the provisions of Executive 

Order 12988 and Executive Order 

12866, amended by Executive Order 

13258. In addition, this action is not a 

rule as defined by the Regulatory 

Flexibility Act, (5 U.S.C. 601 et seq.), 

and thus, is exempt from the provisions 

of that Act. Finally, this action is not a 

rule as defined in the Small Business 

Regulatory Fairness Enforcement Act, (5 

U.S.C. 801 et seq.), and thus does not 

require review by Congress. 

List of Subjects in 7 CFR Part 2 

Authority delegations (government 

agencies). 

■ Accordingly, 7 CFR part 2 is amended 

as follows: 

PART 2—DELEGATIONS OF 

AUTHORITY BY THE SECRETARY OF 

AGRICULTURE AND GENERAL 

OFFICERS OF THE DEPARTMENT 

■ 1. The authority citation for part 2 

continues to read as follows: 

Authority: 7 U.S.C. 6912(a)(1), 5 U.S.C. 

301; Reorganization Plan No. 2 of 1953, 3 

CFR, 1949–1953 Comp., p. 1024. 

Subpart C—Delegations of Authority to 

the Deputy Secretary, the Under 

Secretaries and Assistant Secretaries 

■ 2. Amend § 2.24 to add new 

paragraphs (a)(7)(i)(J) and (a)(7)(i)(K), to 

read as follows: 

§ 2.24 Assistant Secretary for 

Administration. 

(a) * * * 

(7) * * * 

(i) * * * 

(J) Implementation of a program for 

the Federal procurement of biobased 

products in consultation with the 

Administrators of the Environmental 

Protection Agency and General Services 

Administration and the Director, 

National Institute of Standards and 

Technology; and establishment, in 

consultation with the Administrator of 

the Environmental Protection Agency, 

of a voluntary ‘‘USDA Certified 

Biobased Product’’ labeling program (7 

U.S.C. 8102). 

(K) Entering into cooperative 

agreements to further research programs 

in the food and agricultural sciences, 

related to establishing and 

implementing Federal biobased 

procurement and voluntary biobased 

labeling programs (7 U.S.C. 3318). 

* * * * * 


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56706 Federal Register / Vol. 73, No. 190 / Tuesday, September 30, 2008 / Rules and Regulations 

1 12 CFR 330.10. 

2 Id. at 330.10(a). 

Subpart D—Delegations of Authority to 

Other General Officers and Agency 

Heads 

§ 2.29 [Amended] 

■ 3. Amend § 2.29 as follows: 

■ a. Remove paragraph (a)(11)(vii), 

■ b. Redesignate paragraphs (a)(11)(viii) 

through (a)(11)(ix) as paragraphs 

(a)(11)(vii) through (a)(11)(xiii). 

Dated: September 24, 2008. 

Edward T. Schafer, 

Secretary of Agriculture. 

[FR Doc. E8–22959 Filed 9–29–08; 8:45 am] 

BILLING CODE 3410–93–P 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 330 

RIN 3064–AD33 

Deposit Insurance Regulations; 

Revocable Trust Accounts 

AGENCY: Federal Deposit Insurance 

Corporation (FDIC). 

ACTION: Interim rule with request for 

comments. 

SUMMARY: The FDIC is adopting an 

interim rule to simplify and modernize 

its deposit insurance rules for revocable 

trust accounts. The FDIC’s main goal in 

implementing these revisions is to make 

the rules easier to understand and 

apply, without decreasing coverage 

currently available for revocable trust 

account owners. The FDIC believes that 

the interim rule will result in faster 

deposit insurance determinations after 

depository institution closings and will 

help improve public confidence in the 

banking system. The interim rule 

eliminates the concept of qualifying 

beneficiaries. Also, for account owners 

with revocable trust accounts totaling 

no more than $500,000, coverage will be 

determined without regard to the 

beneficial interest of each beneficiary in 

the trust. 

Under the new rules, a trust account 

owner with up to five different 

beneficiaries named in all his or her 

revocable trust accounts at one FDICinsured institution will be insured up to 

$100,000 per beneficiary. Revocable 

trust account owners with more than 

$500,000 and more than five different 

beneficiaries named in the trust(s) will 

be insured for the greater of either: 

$500,000 or the aggregate amount of all 

the beneficiaries’ interests in the 

trust(s), limited to $100,000 per 

beneficiary. 

DATES: The effective date of the interim 

rule is September 26, 2008. Written 

comments must be received by the FDIC 

not later than December 1, 2008. 

ADDRESSES: You may submit comments 

by any of the following methods: 

• Agency Web Site: http:// 

www.fdic.gov/regulations/laws/federal. 

Follow instructions for submitting 

comments on the Agency Web Site. 

• E-mail: Comments@FDIC.gov. 

Include ‘‘Revocable Trust Accounts’’ in 

the subject line of the message. 

• Mail: Robert E. Feldman, Executive 

Secretary, Attention: Comments, Federal 

Deposit Insurance Corporation, 550 17th 

Street, NW., Washington, DC 20429. 

• Hand Delivery/Courier: 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. 

(EST). 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

Public Inspection: All comments 

received will be posted without change 

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

federal including any personal 

information provided. Paper copies of 

public comments may be ordered from 

the Public Information Center by 

telephone at (877) 275–3342 or (703) 

562–2200. 

FOR FURTHER INFORMATION CONTACT: 

Joseph A. DiNuzzo, Counsel, Legal 

Division (202) 898–7349; Christopher 

Hencke, Counsel, Legal Division (202) 

898–8839; James V. Deveney, Section 

Chief, Deposit Insurance Section, 

Division of Supervision and Compliance 

(202) 898–6687; or Kathleen G. Nagle, 

Associate Director, Division of 

Supervision and Consumer Protection 

(202) 898–6541, Federal Deposit 

Insurance Corporation, Washington, DC 

20429. 

SUPPLEMENTARY INFORMATION: 

I. Background 

One of the FDIC’s fundamental goals 

is to ensure that depositors and insured 

depository institution employees 

understand the FDIC’s deposit 

insurance rules. That goal is essential in 

carrying out the FDIC’s combined 

mission of helping to maintain public 

confidence and stability in the United 

States banking system and protecting 

insured depositors. 

Despite the FDIC’s efforts to simplify 

deposit insurance rules in recent years, 

there is still significant public and 

industry confusion about the insurance 

coverage of revocable trust accounts— 

particularly living trust accounts, one of 

the two types of revocable trust 

accounts. This continuing confusion 

about the insurance coverage of 

revocable trust accounts is evidenced by 

the tens of thousands of deposit 

insurance inquiries the FDIC has 

received following recent depository 

institution failures. 

Current Rules for Revocable Trust 

Accounts 

There are two types of revocable trust 

accounts insured under the FDIC’s 

coverage rules: Informal trust accounts 

and formal trust accounts. Informal trust 

accounts are comprised simply of a 

signature card on which the owner 

designates the beneficiaries to whom the 

funds in the account will pass upon the 

owner’s death. These are the most 

common type of revocable trust 

accounts and generally are referred to as 

‘‘payable-on-death’’ (‘‘POD’’) accounts 

or in-trust-for (‘‘ITF’’) accounts or 

Totten Trust accounts. For purposes of 

this rulemaking, we will refer to all 

informal trust accounts as POD 

accounts. 

The other type of revocable trust 

accounts are accounts established in 

connection with formal revocable trusts. 

Formal revocable trusts are trusts 

created for estate planning purposes. 

They are often referred to as: living 

trusts, family trusts, marital trusts, 

survivor’s trusts, by-pass trusts, 

generation-skipping trusts, AB trusts or 

special needs trusts. For purposes of 

this rulemaking, we will refer to all 

formal revocable trusts as living trusts. 

Like an informal revocable trust, a living 

trust is a trust created by an owner (also 

known as a grantor or settlor) over 

which the owner retains control during 

his or her lifetime. Upon the owner’s 

death, the trust generally becomes 

irrevocable. A living trust is an 

increasingly popular estate planning 

tool. Like a POD account, a deposit 

account held in connection with a living 

trust account at an FDIC-insured 

institution is insured under the FDIC’s 

coverage rules for revocable trust 

accounts. 

The FDIC’s rules provide that all 

revocable trust accounts (both POD 

accounts and living trust accounts) are 

insured up to $100,000 per ‘‘qualifying 

beneficiary’’ designated by the owner of 

the account.1 If there are multiple 

owners of a revocable trust account, 

coverage is available separately for each 

owner, per qualifying beneficiary as to 

each owner. Qualifying beneficiaries are 

defined as the owner’s spouse, children, 

grandchildren, parents and siblings.2

The per-qualifying beneficiary 

coverage available on revocable trust 

accounts is separate from the insurance 

coverage afforded to depositors in 


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