Federal Register / Vol. 74, No. 124 / Tuesday, June 30, 2009 / Proposed Rules 31209 

will not be required before parties may 

file suit in court challenging this rule. 

National Environmental Policy Act 

To provide the public with 

documentation of APHIS’ review and 

analysis of any potential environmental 

impacts associated with the proposed 

amendments to the regulations 

providing for the interstate movement of 

regulated fruit from areas quarantined 

for citrus canker, we have prepared an 

environmental assessment. The 

environmental assessment was prepared 

in accordance with: (1) The National 

Environmental Policy Act of 1969 

(NEPA), as amended (42 U.S.C. 4321 et 

seq.), (2) regulations of the Council on 

Environmental Quality for 

implementing the procedural provisions 

of NEPA (40 CFR parts 1500–1508), (3) 

USDA regulations implementing NEPA 

(7 CFR part 1b), and (4) APHIS’ NEPA 

Implementing Procedures (7 CFR part 

372). 

The environmental assessment may 

be viewed on the Regulations.gov Web 

site or in our reading room. (A link to 

Regulations.gov and information on the 

location and hours of the reading room 

are provided under the heading 

ADDRESSES at the beginning of this 

proposed rule.) In addition, copies may 

be obtained by calling or writing to the 

individual listed under FOR FURTHER

INFORMATION CONTACT. 

Paperwork Reduction Act 

This proposed rule contains no new 

information collection or recordkeeping 

requirements under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.). 

List of Subjects in 7 CFR Part 301 

Agricultural commodities, Plant 

diseases and pests, Quarantine, 

Reporting and recordkeeping 

requirements, Transportation. 

Accordingly, we propose to amend 7 

CFR part 301 as follows: 

PART 301—DOMESTIC QUARANTINE 

NOTICES 

1. The authority citation for part 301 

continues to read as follows: 

Authority: 7 U.S.C. 7701–7772 and 7781– 

7786; 7 CFR 2.22, 2.80, and 371.3. 

Section 301.75–15 issued under Sec. 204, 

Title II, Public Law 106–113, 113 Stat. 

1501A–293; sections 301.75–15 and 301.75– 

16 issued under Sec. 203, Title II, Public Law 

106–224, 114 Stat. 400 (7 U.S.C. 1421 note). 

2. In § 301.75–1, the definition of 

commercial packinghouse is revised to 

read as follows: 

§ 301.75–1 Definitions. 

* * * * * 

Commercial packinghouse. An 

establishment in which space and 

equipment are maintained for the 

primary purpose of disinfecting and 

packing citrus fruit for commercial sale. 

A commercial packinghouse must also 

be licensed, registered, or certified with 

the State in which it operates and meet 

all the requirements for the license, 

registration, or certification that it holds. 

* * * * * 

§ 301.75–4 [Amended] 

3. Section 301.75–4 is amended as 

follows: 

a. In paragraph (d)(2)(ii)(D), by 

removing the first sentence. 

b. By removing paragraph (d)(6). 

4. Section 301.75–7 is revised to read 

as follows: 

§ 301.75–7 Interstate movement of 

regulated fruit from a quarantined area. 

(a) Regulated fruit produced in a 

quarantined area or moved into a 

quarantined area for packing may be 

moved interstate with a certificate 

issued and attached in accordance with 

§ 301.75–12 if all of the following 

conditions are met: 

(1) The regulated fruit was packed in 

a commercial packinghouse whose 

owner or operator has entered into a 

compliance agreement with APHIS in 

accordance with § 301.75–13. 

(2) The regulated fruit was treated in 

accordance with § 301.75–11(a). 

(3) The regulated fruit is free of 

leaves, twigs, and other plant parts, 

except for stems that are less than 1 inch 

long and attached to the fruit. 

(4) If the fruit is repackaged after 

being packed in a commercial 

packinghouse and before it is moved 

interstate from the quarantined area, the 

person that repackages the fruit must 

enter into a compliance agreement with 

APHIS in accordance with § 301.75–13 

and issue and attach a certificate for the 

interstate movement of the fruit in 

accordance with § 301.75–12. 

(b) Regulated fruit that is not eligible 

for movement under paragraph (a) of 

this section may be moved interstate 

only for immediate export. The 

regulated fruit must be accompanied by 

a limited permit issued in accordance 

with § 301.75–12 and must be moved in 

a container sealed by APHIS directly to 

the port of export in accordance with 

the conditions of the limited permit. 

(Approved by the Office of Management and 

Budget under control number 0579–0325) 

Done in Washington, DC, this 26th day of 

June 2009. 

Cindy Smith, 

Acting Deputy Under Secretary for Marketing 

and Regulatory Programs. 

[FR Doc. E9–15508 Filed 6–29–09; 8:45 am] 

BILLING CODE 3410–34–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Part 25 

[Docket ID OCC–2009–0010] 

RIN 1557–AD24 

FEDERAL RESERVE SYSTEM 

12 CFR Part 228 

[Docket No. R–1360] 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 345 

[RIN 3064–AD45] 

DEPARTMENT OF THE TREASURY 

Office of Thrift Supervision 

12 CFR Part 563e 

[Docket ID OTS–2009–0010] 

RIN 1550–AC35] 

Community Reinvestment Act 

Regulations 

AGENCY: 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 notice of proposed 

rulemaking. 

SUMMARY: The OCC, the Board, the 

FDIC, and the OTS (collectively, ‘‘the 

Agencies’’) are issuing this notice of 

proposed rulemaking that would revise 

our rules implementing the Community 

Reinvestment Act (CRA). The proposed 

rule would incorporate into our rules 

recently adopted statutory language that 

requires the Agencies, when assessing 

an institution’s record of meeting 

community credit needs, to consider, as 

a factor, low-cost education loans 

provided by the financial institution to 

low-income borrowers. The proposal 

also would incorporate into our rules 

statutory language that allows the 

Agencies, when assessing an 


sroberts on PROD1PC70 with PROPOSALS
31210 Federal Register / Vol. 74, No. 124 / Tuesday, June 30, 2009 / Proposed Rules 

institution’s record, to consider as a 

factor capital investment, loan 

participation, and other ventures 

undertaken by nonminority-owned and 

nonwomen-owned financial institutions 

in cooperation with minority- and 

women-owned financial institutions 

and low-income credit unions. 

DATES: Comments must be received by: 

July 30, 2009. 

ADDRESSES: Comments should be 

directed to: 

OCC: Because paper mail in the 

Washington, DC area and at the 

Agencies is subject to delay, 

commenters are encouraged to submit 

comments by the Federal eRulemaking 

Portal or e-mail, if possible. Please use 

the title ‘‘Community Reinvestment Act 

Regulation’’ to facilitate the organization 

and distribution of the comments. You 

may submit comments by any of the 

following methods: 

• Federal eRulemaking Portal— 

‘‘Regulations.gov’’: Go to http:// 

www.regulations.gov, under the ‘‘More 

Search Options’’ tab click next to the 

‘‘Advanced Docket Search’’ option 

where indicated, select ‘‘Comptroller of 

the Currency’’ from the agency dropdown menu, then click ‘‘Submit.’’ In the 

‘‘Docket ID’’ column, select ‘‘OCC– 

2009–0010’’ to submit or view public 

comments and to view supporting and 

related materials for this joint notice of 

proposed rulemaking. The ‘‘How to Use 

This Site’’ link on the Regulations.gov 

home page provides information on 

using Regulations.gov, including 

instructions for submitting or viewing 

public comments, viewing other 

supporting and related materials, and 

viewing the docket after the close of the 

comment period. 

• E-mail: 

regs.comments@occ.treas.gov. 

• Mail: Office of the Comptroller of 

the Currency, 250 E Street, SW., Mail 

Stop 2–3, Washington, DC 20219. 

• Fax: (202) 874–5274. 

• Hand Delivery/Courier: 250 E 

Street, SW., Mail Stop 2–3, Washington, 

DC 20219. 

Instructions: You must include 

‘‘OCC’’ as the agency name and ‘‘Docket 

Number OCC–2009–0010’’ in your 

comment. In general, OCC will enter all 

comments received into the docket and 

publish them on the Regulations.gov 

Web site without change, including any 

business or personal information that 

you provide such as name and address 

information, e-mail addresses, or phone 

numbers. Comments received, including 

attachments and other supporting 

materials, are part of the public record 

and subject to public disclosure. Do not 

enclose any information in your 

comment or supporting materials that 

you consider confidential or 

inappropriate for public disclosure. 

You may review comments and other 

related materials that pertain to this 

joint notice of proposed rulemaking by 

any of the following methods: 

• Viewing Comments Electronically: 

Go to http://www.regulations.gov, under 

the ‘‘More Search Options’’ tab click 

next to the ‘‘Advanced Document 

Search’’ option where indicated, select 

‘‘Comptroller of the Currency’’ from the 

agency drop-down menu, then click 

‘‘Submit.’’ In the ‘‘Docket ID’’ column, 

select ‘‘OCC–2009–0010’’ to view public 

comments for this rulemaking action. 

• Viewing Comments Personally: You 

may personally inspect and photocopy 

comments at the OCC, 250 E Street, 

SW., Washington, DC. For security 

reasons, the OCC requires that visitors 

make an appointment to inspect 

comments. You may do so by calling 

(202) 874–4700. Upon arrival, visitors 

will be required to present valid 

government-issued photo identification 

and submit to security screening in 

order to inspect and photocopy 

comments. 

• Docket: You may also view or 

request available background 

documents and project summaries using 

the methods described above. 

Board: You may submit comments, 

identified by Docket No. R–1360, by any 

of the following methods: 

• Agency Web Site: http:// 

www.federalreserve.gov. Follow the 

instructions for submitting comments at 

http://www.federalreserve.gov/ 

generalinfo/foia/ProposedRegs.cfm. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• E-mail: 

regs.comments@federalreserve.gov. 

Include docket number in the subject 

line of the message. 

• Fax: 202/452–3819 or 202/452– 

3102. 

• Mail: Jennifer J. Johnson, Secretary, 

Board of Governors of the Federal 

Reserve System, 20th Street and 

Constitution Avenue, NW., Washington, 

DC 20551. 

All public comments are available 

from the Board’s Web site at http:// 

www.federalreserve.gov/generalinfo/ 

foia/ProposedRegs.cfm as submitted, 

unless modified for technical reasons. 

Accordingly, your comments will not be 

edited to remove any identifying or 

contact information. Public comments 

may also be viewed electronically or in 

paper in Room MP–500 of the Board’s 

Martin Building (20th and C Streets, 

NW.) between 9 a.m. and 5 p.m. on 

weekdays. 

FDIC: You may submit comments, 

identified by RIN number 3064–AD45 

by any of the following methods: 

• Agency Web Site: http:// 

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

propose.html. Follow instructions for 

submitting comments on the Agency 

Web site. 

• E-mail: Comments@FDIC.gov. 

Include the RIN number 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. 

Instructions: All submissions received 

must include the agency name and RIN 

number. All comments received will be 

posted without change to http:// 

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

propose.html, including any personal 

information provided. 

OTS: You may submit comments 

identified by OTS–2009–0010, by any of 

the following methods: 

• Federal eRulemaking Portal- 

‘‘Regulations.gov’’: Go to http:// 

www.regulations.gov, under the ‘‘more 

Search Options’’ tab click next to the 

‘‘Advanced Docket Search’’ option 

where indicated, select ‘‘Office of Thrift 

Supervision’’ from the agency dropdown menu, then click ‘‘Submit.’’ In the 

‘‘Docket ID’’ column, select ‘‘OTS– 

2009–0010’’ to submit or view public 

comments and to view supporting and 

related materials for this proposed rule. 

The ‘‘How to Use This Site’’ link on the 

Regulations.gov home page provides 

information on using Regulations.gov, 

including instructions for submitting or 

viewing public comments, viewing 

other supporting and related materials, 

and viewing the docket after the close 

of the comment period. 

• Mail: Regulation Comments, Chief 

Counsel’s Office, Office of Thrift 

Supervision, 1700 G Street, NW., 

Washington, DC 20552, Attention: OTS– 

2009–0010. 

• Fax: (202) 906–6518. 

• Hand Delivery/Courier: Guard’s 

Desk, East Lobby Entrance, 1700 G 

Street, NW., from 9 a.m. to 4 p.m. on 

business days, Attention: Regulation 

Comments, Chief Counsel’s Office, 

Attention: OTS–2009–0010. 

• Instructions: All submissions 

received must include the agency name 

and docket number for this rulemaking. 

All comments received will be entered 

into the docket and posted on 

Regulations.gov without change, 

including any personal information 

provided. Comments including 


sroberts on PROD1PC70 with PROPOSALS
Federal Register / Vol. 74, No. 124 / Tuesday, June 30, 2009 / Proposed Rules 31211 

1 12 U.S.C. 2903. 

2See 12 CFR parts 25 (OCC), 228 (Board), 345 

(FDIC), and 563e (OTS). 

3 ‘‘Consumer loan’’ is defined in the CRA 

regulations as a loan to one or more individuals for 

household, family, or other personal expenditures. 

Consumer loans include the following categories of 

loans: motor vehicle loans, credit card loans, home 

equity loans, other secured consumer loans, and 

other unsecured consumer loans. 12 CFR 25.12(j), 

228.12(j), 345.12(j), and 563e.12(j). 

4See 12 CFR 25.22(a)(1) and 25.42(c); 12 CFR 

228.22(a)(1) and 228.42(c); 12 CFR 345.12(a)(1) and 

345.42(c); and 12 CFR 563e.22(a)(1) and 563e.42(c). 

5See, e.g., 12 CFR 25.22 and 25.26; 228.22 and 

228.26, 345.22 and 345.26, and 563e.22 and 563.26. 

6The Agencies note that other Department of 

Education loan programs currently exist, such as 

the William D. Ford Direct Loan Program and the 

Federal Perkins Loan Program, in which loans are 

made directly by the Department of Education or a 

school rather than by a financial institution. As 

these programs do not involve lending by an 

institution, they are not relevant to the evaluation 

of CRA performance. 

attachments and other supporting 

materials received are part of the public 

record and subject to public disclosure. 

Do not enclose any information in your 

comment or supporting materials that 

you consider confidential or 

inappropriate for public disclosure. 

• Viewing Comments Electronically: 

Go to http://www.regulations.gov, under 

the More Search Options’’ tab click next 

to the ‘‘Advanced Document Search’’ 

option where indicated, select ‘‘Office of 

Thrift Supervision’’ from the agency 

drop-down menu, then click ‘‘Submit.’’ 

In the ‘‘Docket ID’’ column, select 

‘‘OTS–2009–0010’’ to view public 

comments for this rulemaking action. 

• Viewing Comments On-Site: You 

may inspect comments at the Public 

Reading Room, 1700 G Street, NW., by 

appointment. To make an appointment 

for access, call (202) 906–5922, send an 

e-mail to public.info@ots.treas.gov, or 

send a facsimile transmission to (202) 

906–5618. (Prior notice identifying the 

materials you will be requesting will 

assist us in serving you.) We schedule 

appointments on business days between 

10 a.m. and 4 p.m. In most cases, 

appointments will be available the next 

business day following the date we 

receive a request. 

FOR FURTHER INFORMATION CONTACT: 

OCC: Margaret Hesse, Special 

Counsel, Community and Consumer 

Law Division, (202) 874–5750; or Karen 

Tucker, National Bank Examiner, 

Compliance Policy, (202) 874–4428, 

Office of the Comptroller of the 

Currency, 250 E Street, SW., 

Washington, DC 20219. 

Board: Rebecca Lassman, Supervisory 

Consumer Financial Services Analyst, 

(202) 452–2080; or Brent Lattin, Senior 

Attorney, (202) 452–3667, Division of 

Consumer and Community Affairs, 

Board of Governors of the Federal 

Reserve System, 20th Street and 

Constitution Avenue, NW., Washington, 

DC 20551. 

FDIC: Deirdre Foley, Senior Policy 

Analyst, Division of Supervision and 

Consumer Protection, Compliance 

Policy Branch, (202) 898–6612; or Susan 

van den Toorn, Counsel, Legal Division, 

(202) 898–8707, Federal Deposit 

Insurance Corporation, 550 17th Street, 

NW., Washington, DC 20429. 

OTS: Stephanie Caputo, Senior 

Compliance Program Analyst, Consumer 

Regulations Section, (202) 906–6549; or 

Richard Bennett, Senior Compliance 

Counsel, Regulations and Legislation 

Division, (202) 906–7409, Office of 

Thrift Supervision, 1700 G Street, NW., 

Washington, DC 20552. 

SUPPLEMENTARY INFORMATION: 

Background 

The Community Reinvestment Act 

(CRA) requires the federal banking and 

thrift regulatory agencies to assess the 

record of each insured depository 

institution (hereinafter, ‘‘institution’’) in 

meeting the credit needs of its entire 

community, including low- and 

moderate-income neighborhoods, 

consistent with the safe and sound 

operation of the institution, and to take 

that record into account when the 

agency evaluates an application by the 

institution for a deposit facility.1 The 

Agencies have promulgated 

substantially similar regulations to 

implement the requirements of the 

CRA.2

Discussion of the Proposal on Low-Cost 

Education Loans 

Under the existing CRA regulations, 

education loans are evaluated as 

consumer loans.3 An institution’s 

consumer lending must be evaluated if 

consumer lending makes up a 

substantial majority of an institution’s 

business. Institutions that do not meet 

this criterion may choose to have 

consumer loans evaluated when the 

institution’s CRA record is being 

examined. Institutions must collect and 

maintain data about consumer loans if 

they choose to have those loans 

evaluated.4 Like other consumer loans, 

institutions’ education loans are 

generally evaluated by total number and 

amount; borrower characteristics (i.e., 

distribution among borrowers of 

different income levels); geographic 

distribution (i.e., distribution among 

borrowers in geographies with different 

income levels and whether the loans are 

made to borrowers in the institution’s 

assessment areas); and, for large retail 

institutions, whether the education loan 

program is innovative or flexible in 

addressing the credit needs of low- or 

moderate-income individuals or 

geographies.5

Section 1031 of the Higher Education 

Opportunity Act, Public Law 110–315, 

122 Stat. 3078 (August 14, 2008) (the 

‘‘HEOA’’), revised the CRA to require 

the Agencies, when evaluating an 

institution’s record of meeting 

community credit needs, to consider, as 

a factor, low-cost education loans 

provided by the institution to lowincome borrowers. 12 U.S.C. 2903(d). 

The revisions being proposed today 

would implement this statutory 

provision. 

The Agencies are proposing to define 

‘‘low-cost education loans’’ to mean (1) 

education loans originated by an 

institution through a U.S. Department of 

Education loan program or (2) any 

private education loan as defined in the 

Truth in Lending Act, including loans 

under a State or local education loan 

program, originated by an institution for 

a student at an ‘‘institution of higher 

education,’’ with interest rates and fees 

no greater than those of comparable 

education loans offered through loan 

programs of the U.S. Department of 

Education. 

Under the first prong of the definition, 

loans that institutions make through a 

Department of Education loan program 

would be considered ‘‘low-cost 

education loans.’’ Institutions currently 

make those loans through the Federal 

Family Education Loan (FFEL) Program. 

However, since Department of 

Education loan programs may change 

over time, the proposed definition does 

not specifically refer to any particular 

program by name.6

Under the second prong of the 

definition, ‘‘private education loans’’ 

that institutions make would be 

considered ‘‘low-cost education loans,’’ 

provided that the interest rates and fees 

are no greater than those of comparable 

education loans offered through loan 

programs of the U.S. Department of 

Education. The proposal would adopt 

the terms ‘‘private education loan,’’ 

‘‘private educational lender,’’ and 

‘‘postsecondary educational expenses,’’ 

each of which is defined in the HEOA 

for purposes of the Truth in Lending 

Act. Section 1011 of the HEOA added 

section 140 of the Truth in Lending Act 

to provide the following definition: 

[T]he term ‘‘private education loan’’— 

(A) Means a loan provided by a 

private educational lender that— 

(i) Is not made, insured, or guaranteed 

under title IV of the Higher Education 

Act of 1965 (20 U.S.C. 1070 et seq.); and 

(ii) Is issued expressly for 

postsecondary educational expenses to a 


sroberts on PROD1PC70 with PROPOSALS
31212 Federal Register / Vol. 74, No. 124 / Tuesday, June 30, 2009 / Proposed Rules 

7Section 140(a)(7) of the Truth in Lending Act, 

as added by section 1011 of the HEOA. 

8Section 140(a)(6)(A) of the Truth in Lending 

Act, as added by section 1011 of the HEOA. 

9See 20 U.S.C. 1087ll (definition of ‘‘cost of 

attendance’’). 

10H.R. Rep. No. 110–500 at 203, 297 (2007) 

(emphasis added). 

11Section 120 of Public Law 110–315, 122 Stat. 

3118 (Aug. 14, 2008). Sections 432 and 493 use the 

same definition. 

12As noted above, the William D. Ford Direct 

Loan Program is a direct loan program where the 

loans are made by the Department of Education 

rather than a financial institution. Thus, this loan 

program is not relevant for purposes of CRA 

consideration for an institution. 

13 12 CFR 25.12(m)(1), 228.12(m)(1), 345.12(m)(1), 

and 563e.12(m)(1). 

14See ‘‘Interagency Questions and Answers 

Regarding Community Reinvestment,’’ 74 FR 498, 

533 (Jan. 6, 2009) (Q&A § __.42(c)(1)(iv)–4). 

15H. Rep. No. 110–500, at 366 (2007) (emphasis 

added). 

16 12 U.S.C. 2903(b). 

borrower, regardless of whether the loan 

is provided through the educational 

institution that the subject student 

attends or directly to the borrower from 

the private educational lender; and 

(B) Does not include an extension of 

credit under an open end consumer 

credit plan, a reverse mortgage 

transaction, a residential mortgage 

transaction, or any other loan that is 

secured by real property or a dwelling.7

In turn, HEOA defines a ‘‘private 

educational lender’’ to include, among 

others, any financial institution that 

solicits, makes, or extends private 

education loans.8

Although section 1031 of the HEOA is 

not expressly limited to loans for higher 

education, the Agencies have included 

this limitation in the definition of lowcost education loans. The proposal, 

thus, would provide for consideration of 

low-cost education loans to attend 

‘‘institutions of higher education,’’ 

including accredited colleges, 

universities, and vocational schools, as 

discussed more fully below. The new 

statutory requirement to consider 

education loans was adopted as a part 

of the HEOA, which specifically 

addresses higher education reform. The 

HEOA defines ‘‘postsecondary 

educational expenses’’ to mean any of 

the expenses that are included as part of 

the cost of attendance of a student, as 

defined under section 472 of the Higher 

Education Act of 1965 (20 U.S.C. 

1087ll). That definition includes tuition 

and fees, books, supplies, miscellaneous 

personal expenses, room and board, and 

an allowance for any loan fee, 

origination fee, or insurance premium 

charged to a student or parent for a loan 

incurred to cover the cost of the 

student’s attendance.9

The Agencies are proposing to define 

‘‘low-cost education loan’’ consistent 

with HEOA. The purpose of H.R. 4137, 

which introduced the incentive of CRA 

consideration for low-cost education 

loans, as stated in H.R. Report No. 500, 

was ‘‘to make college more affordable 

and accessible;’’ to ‘‘expand college 

access and support for low-income and 

minority students;’’ and to provide 

incentives for lenders to provide ‘‘lowcost private student loans to lowincome borrowers.’’ 10 Although the 

HEOA does not define ‘‘private student 

loan,’’ it does define the similar term, 

‘‘private education loan,’’ as discussed 

above. 

Further, the HEOA defines the term 

‘‘education loan’’ in other contexts. In 

Section 120 of the HEOA, ‘‘education 

loan’’ is defined as any loan made, 

insured, or guaranteed under the FFEL 

Program, any loan made under the 

William D. Ford Direct Loan Program, or 

a private education loan.11 As discussed 

above, institutions’ FFEL loans would 

be covered by the first prong of the 

definition, while private education 

loans would be covered by the second 

prong of the definition.12

The second prong of the definition 

would encompass any ‘‘institution of 

higher education’’ as that term is 

generally defined in sections 101 and 

102 of the Higher Education Act of 1965 

(HEA), 20 U.S.C. 1001 and 1002. Such 

institutions generally include accredited 

public or non-profit colleges and 

vocational schools, accredited private 

colleges and vocational schools, and 

certain foreign institutions offering 

postsecondary education that are 

comparable to institutions of higher 

education in the United States based on 

standards approved by the U.S. 

Department of Education. The Agencies 

are not proposing to cover unaccredited 

colleges, universities, or vocational 

schools because we lack sufficient 

information regarding these institutions, 

but are soliciting comment on this issue. 

The term ‘‘low-income’’ will have the 

same meaning as that term is defined in 

the existing CRA rule with respect to 

individuals.13 Consequently, it will 

mean an individual income that is less 

than 50 percent of the area median 

income. If an institution considers the 

income of more than one person in 

connection with an education loan, the 

gross annual incomes of all primary 

obligors on the loan, including coborrowers and co-signers, would be 

combined to determine whether the 

borrowers are ‘‘low-income.’’ 14

Consistent with the statutory focus on 

the community in which an institution 

is chartered to do business and the 

regulatory emphasis on an institution’s 

activities in its assessment area(s), the 

Agencies have clarified in the proposed 

revision that low-cost education loans 

will be considered as a factor if they are 

made to low-income borrowers in an 

institution’s assessment area(s). This 

clarification also appears consistent 

with the legislative history of the Act, 

which indicates that the Agencies are to 

consider ‘‘low-cost education loans 

provided by a financial institution to 

low-income borrowers in assessing and 

taking into account the record of a 

financial institution in meeting the 

credit needs of its local community.’’ 15

The Agencies propose to add the new 

provision addressing favorable CRA 

consideration for low-cost education 

loans to low-income borrowers to 

sections 25.21, 228.21, 345.21, and 

563e.21 of title 12 of the Code of Federal 

Regulations. These sections are entitled, 

‘‘Performance tests, standards, and 

ratings, in general.’’ They apply to all 

types and sizes of institutions, without 

regard to the performance test under 

which an institution is evaluated. The 

new provision also is applicable to all 

institutions. 

The Agencies also are proposing a 

conforming amendment to Appendix A 

of the regulations to include 

consideration of low-cost education 

loans to low-income borrowers as a 

factor when assigning a rating to a 

financial institution. 

Description of the Proposal on Activities 

Undertaken in Cooperation With 

Minority- and Women-Owned Financial 

Institutions and Low-Income Credit 

Unions 

When the Agencies assess and take 

into account the community 

reinvestment record of a nonminorityor nonwomen-owned financial 

institution, the CRA allows the Agencies 

to consider as a factor capital 

investment, loan participation, and 

other ventures undertaken by the 

institution in cooperation with 

minority- and women-owned financial 

institutions and low-income credit 

unions, provided that these activities 

help meet the credit needs of local 

communities in which such institutions 

and credit unions are chartered.16 The 

Agencies propose to incorporate this 

statutory language into their regulations 

and to clarify, consistent with the 

statutory language, that, in order to 

receive favorable CRA consideration, 

such activities need not also benefit the 

assessment area(s) or the broader 

statewide or regional area that includes 

the assessment area(s) of the 

nonminority- and nonwomen-owned 


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17 74 FR 498, 507 (Jan. 6, 2009) (Q&A § __.12(g)– 

4). 18See 75 FR 12464 (Mar. 24, 2009). 

institution. Activities undertaken to 

assist minority- and women-owned 

financial institutions and low-income 

credit unions will be considered as part 

of the overall assessment of the 

nonminority- and nonwomen-owned 

institution’s CRA performance. 

This proposed revision to the rule 

would reinforce to examiners, financial 

institutions, and the public that the 

Agencies may consider and take into 

account nonminority- and nonwomenowned financial institutions’ activities 

in connection with minority- and 

women-owned financial institutions 

and low-income credit unions. The 

Agencies note their recent revisions to 

the ‘‘Interagency Questions and 

Answers Regarding Community 

Reinvestment’’ that clarify this point.17

The proposed rule is intended to codify 

this clarification in the rule. 

The Agencies propose to add the new 

provision addressing favorable CRA 

consideration for activities in 

cooperation with minority- and womenowned financial institutions and lowincome credit unions to §§ 25.21, 

228.21, 345.21, and 563e.21 of title 12 

of the Code of Federal Regulations. As 

discussed above, these sections apply to 

all types and sizes of institutions, 

without regard to the performance test 

under which an institution is evaluated. 

The new provision also is applicable to 

all financial institutions. 

The Agencies also are proposing a 

conforming amendment to Appendix A 

of the regulations to include 

consideration of a financial institution’s 

activities in cooperation with minorityand women-owned financial 

institutions as a factor when assigning a 

rating to the institution. 

Request for Comments 

General Request for Comments 

The Agencies request comments on 

the proposed revisions. Smaller 

financial institutions are invited to 

comment on whether the proposed 

regulations should be modified to 

address any implementation issues 

unique to their lines of business or to 

provide additional flexibility. 

Request for Comments on ‘‘Education 

Loans’’ 

The new statutory provision specifies 

that the Agencies must consider lowcost ‘‘education loans’’ to low-income 

borrowers. The Agencies specifically 

request comment on how to define 

‘‘education loans.’’ 

• As proposed, the definition 

includes only loans for post-secondary 

education (i.e., education at a level 

beyond high school). As explained 

above, section 1031 of the HEOA is not 

expressly limited to loans for higher 

education. Should the definition also 

extend to loans for elementary or 

secondary education? 

• Should the definition include loans 

made for education expenses at an 

‘‘institution of higher education’’ as that 

term is generally defined in sections 101 

and 102 of the Higher Education Act of 

1965 (‘‘HEA’’), 20 U.S.C. 1001 and 1002, 

which would include accredited public 

and private colleges and universities, 

whether for-profit or nonprofit, as well 

as accredited vocational institutions that 

prepare students for gainful 

employment in a recognized occupation 

and certain institutions outside the 

United States? Should the scope be 

expanded or narrowed? 

• Should the scope of the definition 

be expanded to include loans made for 

education expenses at any ‘‘covered 

educational institution’’ as that term is 

defined in section 140 of the Truth in 

Lending Act, 15 U.S.C. 1650, which 

would also encompass unaccredited 

institutions, consistent with the Board’s 

proposed approach to defining that term 

for purposes of Regulation Z? 18 Are 

there reasons that weigh against 

including loans to attend unaccredited 

institutions? 

• Should the scope of the definition 

be narrowed to encompass only loans 

made for education expenses at an 

‘‘institution of higher education’’ as that 

term is defined for general purposes in 

section 101 of the HEA, 20 U.S.C. 1001, 

which is limited to accredited public 

and nonprofit colleges, universities, and 

employment training schools in the 

United States for high school graduates 

or the equivalent, and public or 

nonprofit educational institutions in the 

United States that admit students 

beyond the age of compulsory school 

attendance, even if they are not high 

school graduates or the equivalent? 

• ‘‘Private education loans,’’ as 

defined in section 140(a)(7) of the Truth 

in Lending Act, would include 

education loans made by financial 

institutions under local and State 

education loan programs. Should all 

education loans offered to low-income 

borrowers under State or local 

education programs, regardless of 

whether the fees and costs are 

comparable to those under Department 

of Education programs, be eligible for 

CRA consideration? Should private 

loans not made, insured, or guaranteed 

under a Federal, State, or local 

education program be considered for 

CRA purposes? 

• ‘‘Private education loans,’’ as 

defined in section 140(a)(7) of the Truth 

in Lending Act, include only closedend, unsecured loans. That means, for 

example, that if a borrower obtained a 

home equity loan for a student’s 

education, it would not be considered a 

private education loan. Is it appropriate 

to limit CRA consideration to only 

closed-end, unsecured private education 

loans? Why or why not? 

• The Agencies request comment on 

whether our proposal to limit education 

loans to those originated by the 

institution, rather than purchased by the 

lender, is appropriate. Why or why not? 

Request for Comments on ‘‘Low-Cost’’ 

Loans. 

The statutory provision requires the 

Agencies to consider institutions’ ‘‘lowcost’’ education loans to low-income 

borrowers, but does not define ‘‘lowcost.’’ Guaranteed education loans 

provided by financial institutions 

through the U.S. Department of 

Education’s Federal Family Education 

Loan Program (FFEL Loans) are subject 

to maximum interest rates, which are 

calculated using statutory formulas. 

These rates are the same as rates 

charged to borrowers under the William 

D. Ford Direct Loan Program. Currently, 

the interest rate in effect for 

unsubsidized fixed-rate loans under the 

FFEL Stafford loan program or the 

William D. Ford Direct Loan program, 

which are made to undergraduate and 

graduate students, is 6.8 percent. The 

current interest rate for FFEL Plus loans, 

which are made to parents of dependent 

undergraduate students and to graduate 

or professional degree students, is 8.5 

percent. 

Although variable-rate loans are no 

longer available under the Department 

of Education programs, the Department 

of Education publishes rates annually 

for those variable rate student loans that 

remain outstanding. The rate effective 

July 1, 2008 through June 30, 2009, for 

variable-rate loans in repayment is 4.21 

percent under both the FFEL Stafford 

loan program and the William D. Ford 

Direct Loan program. Fees that may be 

charged by lenders on FFEL Stafford 

and Plus loans are also comparable to 

fees charged on loans made directly by 

the U.S. Department of Education. The 

loan fee/origination fee on a Direct 

Stafford loan is 2.5 percent of the loan 

amount; the loan fee/origination fee on 

a Direct Plus loan is 4 percent. 

The Agencies are proposing to define 

‘‘low-cost education loans’’ as education 

loans that are originated by financial 

institutions through a program of the 


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19 Interagency Questions and Answers Regarding 

Community Reinvestment, 74 FR 498, 507 (Jan. 6, 

2009). 

U.S. Department of Education or any 

private education loans, including loans 

under State or local education loan 

programs, originated by financial 

institutions with interest rates and fees 

no greater than those of comparable 

education loan programs offered by the 

U.S. Department of Education. The 

Agencies note that currently the rates 

and fees allowed under the FFEL 

Stafford loan program and the FFEL 

Plus loan program would typically be 

used to evaluate whether an 

institution’s education loan is low cost. 

• Is the Agencies’ definition of the 

term ‘‘low-cost education loans’’ 

appropriate? If not, how should the 

Agencies define low-cost education 

loans? 

• How should the Agencies 

determine whether a private education 

loan (including a loan made by an 

institution under a State or local 

education loan program) is 

‘‘comparable’’ to a Department of 

Education loan? 

• Should the Agencies use the lowest 

or highest rate and fees available under 

the comparable Department of 

Education program? 

Request for Comments on ‘‘Low-Income 

Borrower’’ 

The CRA regulations currently define 

‘‘low-income’’ to mean an individual 

income that is less than 50 percent of 

the area median income. The Agencies 

propose to use that definition to define 

‘‘low-income borrower.’’ 

However, various education programs 

offered by the U.S. Department of 

Education are targeted to individuals 

who have financial needs; and the 

criteria for the programs vary. Most 

relevant, for example, are the Federal 

Student Aid programs available to 

students seeking assistance for 

education programs beyond high school. 

Most Federal Student Aid programs, 

other than unsubsidized programs 

available through financial institutions, 

including unsubsidized Stafford and 

FFEL Plus loans, consider ‘‘financial 

need.’’ Financial need is determined by 

dividing the cost of attendance at the 

school by the expected family 

contribution (EFC). The EFC is 

calculated according to a formula that 

considers family taxable and untaxed 

income, assets and benefits, e.g., 

unemployment, family size, and the 

number of family members who will be 

attending college. Another example of a 

Department of Education program that 

considers income is the TRIO program, 

which encompasses the Upward Bound, 

Talent Search, and Student Support 

Services programs. The TRIO program is 

targeted to ‘‘low-income individuals,’’ 

meaning an individual whose family’s 

taxable income for the preceding year 

did not exceed 150 percent of the 

poverty level amount. 

• The proposed rule provides that the 

term, ‘‘low-income,’’ will have the same 

meaning as that term is defined in the 

existing CRA rule with respect to 

individuals. Consistent with current 

guidance, if an institution considers the 

income of more than one person in 

connection with an education loan, the 

gross annual incomes of all primary 

obligors on the loan, including coborrowers and co-signers, would be 

combined to determine whether the 

borrowers are ‘‘low-income.’’ Should 

the Agencies consider defining ‘‘lowincome’’ for purposes of this proposed 

provision differently than the term is 

already defined in the CRA regulation? 

If so, why and how? Specifically, how 

should the Agencies treat the income of 

a student’s family or other expected 

family contributions to ensure that the 

CRA consideration provided is 

consistent with HEOA’s focus on lowincome borrowers? 

Request for Comments Regarding Other 

Education Loan Issues 

As proposed, institutions would 

receive favorable qualitative 

consideration for originating ‘‘low-cost 

education loans to low-income 

borrowers’’ as a factor in the 

institutions’ overall CRA rating. Such 

loans would be considered responsive 

to the credit needs of the institutions’ 

communities. 

• As discussed above, under the 

current CRA regulations, institutions 

may choose to have education loans 

evaluated as consumer loans under the 

lending test applicable to the 

institution. If an institution opts to have 

education loans evaluated, the loans 

would be evaluated quantitatively, 

based on the data the institution 

provides. Should the agencies also 

allow an institution to receive separate 

quantitative consideration for the 

number and amount of low-cost 

education loans to low-income 

borrowers as part of its CRA evaluation 

under the performance test applicable to 

that institution, without regard to other 

consumer loans? 

Education loans, including those that 

do not qualify for consideration as ‘‘lowcost education loans for low-income 

borrowers’’ (e.g., purchased education 

loans, loans that are not low-cost, and 

loans that are not made to low-income 

borrowers) would continue to be eligible 

for consideration as consumer loans, at 

an institution’s option, under existing 

CRA rules. 

As discussed above, the Agencies 

propose to insert the revision regarding 

low-cost education loans to low-income 

borrowers into 12 CFR 25.21, 228.21, 

345.21, and 563e.21, which apply to all 

institutions, regardless of the 

performance test under which an 

institution is evaluated. 

• Is it readily understandable to 

institutions and other interested parties 

that the provision is applicable to all 

institutions through that placement in 

the regulation? 

Request for Comments on the Proposed 

Inclusion in the CRA Regulations of the 

Statutory Language Regarding Activities 

Undertaken in Cooperation With 

Minority- and Women-Owned Financial 

Institutions and Low-Income Credit 

Unions 

The agencies request general 

comment on the proposal to include in 

their CRA regulations the statutory 

language that allows the agencies to 

consider as a factor in a nonminority- or 

nonwomen-owned financial 

institution’s CRA evaluation capital 

investments, loan participations, and 

other ventures undertaken in 

cooperation with minority- and womenowned financial institutions and lowincome credit unions, consistent with 

prior agency guidance.19

In addition, as discussed above, the 

Agencies propose to insert the revision 

regarding institutions’ activities in 

cooperation with minority- and womenowned institutions and low-income 

credit unions into 12 CFR 25.21, 228.21, 

345.21, and 563e.21, which apply to all 

institutions, regardless of which 

performance test under which an 

institution is evaluated. 

• Is it readily understandable to 

institutions and other interested parties 

that the provision is applicable to all 

institutions through that placement? 

Request for Comments Regarding the 

Use of ‘‘Plain Language’’ 

Section 722 of the Gramm-LeachBliley Act, Public Law 106–102, sec. 

722, 133 Stat. 1338, 1471 (Nov. 12, 

1999), requires the Agencies to use plain 

language in all proposed and final rules 

published after January 1, 2000. 

Therefore, the Agencies specifically 

invite your comments on how to make 

this proposal easier to understand. For 

example, 

• Have we organized the material to 

suit your needs? If not, how could this 

material be better organized? 

• Are the requirements in the 

proposed regulations clearly stated? If 


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not, how could the regulations be more 

clearly stated? 

• Do the proposed regulations contain 

language or jargon that is not clear? If 

so, which language requires 

clarification? 

• Would a different format (grouping 

and order of sections, use of headings, 

paragraphing) make the regulations 

easier to understand? If so, what 

changes to the format would make them 

easier to understand? 

• What else could we do to make the 

regulations easier to understand? 

Regulatory Analysis 

Paperwork Reduction Act 

In accordance with the Paperwork 

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

3506; 5 CFR 1320 Appendix A.1), each 

agency reviewed its proposed rule and 

determined that there are no new 

collections of information contained 

therein. However, the amendments may 

have a negligible effect on burden 

estimates for existing information 

collections, including recordkeeping 

requirements for consumer loans. 

Regulatory Flexibility Act 

Under section 605(b) of the 

Regulatory Flexibility Act (RFA), 5 

U.S.C. 605(b), the initial regulatory 

flexibility analysis otherwise required 

under section 603 of the RFA is not 

required if an agency certifies, along 

with a statement providing the factual 

basis for such certification, that the 

proposed rule will not have a significant 

economic impact on a substantial 

number of small entities. The Small 

Business Administration (SBA) has 

defined ‘‘small entities’’ for banking 

purposes as a bank or savings 

association with $165 million or less in 

assets. See 13 CFR 121.201. Each agency 

has reviewed the impact of this joint 

proposed rule on the small entities 

subject to its regulation and supervision 

and certifies that the proposal will not 

have a significant economic impact on 

a substantial number of the small 

entities that it regulates and supervises. 

The proposal would incorporate into 

the CRA regulations statutory language 

that requires the Agencies to consider as 

a factor in evaluating an institution’s 

CRA performance low-cost education 

loans provided by the financial 

institution to low-income borrowers. 

The proposal also would incorporate 

into the CRA regulations existing 

statutory language that allows the 

agencies to consider as a factor in 

evaluating CRA performance certain 

activities of nonminority- and 

nonwomen-owned financial institutions 

entered into in cooperation with 

minority- and women-owned financial 

institutions and low-income credit 

unions. However, the joint proposal 

would not impose new requirements on 

small entities because the CRA 

performance test for small entities (as 

defined above) does not specify that 

small institutions must engage in any 

particular types of lending, just that 

they will be evaluated on the types of 

lending in which they choose to engage. 

Accordingly, a regulatory flexibility 

analysis is not required. 

OCC and OTS Executive Order 12866 

Determination 

The OCC and the OTS have each 

determined that its portion of this joint 

proposed rule is not a significant 

regulatory action as defined in 

Executive Order 12866. 

OCC and OTS Unfunded Mandates 

Reform Act of 1995 Determination 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 

(Unfunded Mandates Act) (2 U.S.C. 

1532) 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. The OCC and the 

OTS have determined that this joint 

proposed 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, neither agency has 

prepared a budgetary impact statement 

or specifically addressed the regulatory 

alternatives considered. 

The Treasury and General Government 

Appropriations Act, 1999—Assessment 

of Impact of Federal Regulation on 

Families 

The FDIC has determined that this 

joint proposed rule will not affect family 

well-being within the meaning of 

section 654 of the Treasury and General 

Government Appropriations Act, 

enacted as part of the Omnibus 

Consolidated and Emergency 

Supplemental Appropriations Act of 

1999, Public Law 105–277 (5 U.S.C. 601 

note). 

OCC and OTS Executive Order 13132 

Determination 

The OCC and the OTS have each 

determined that its portion of this joint 

proposed rule does not have any 

Federalism implications, as required by 

Executive Order 13132. 

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, 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. 

Department of the Treasury 

Office of the Comptroller of the 

Currency 

12 CFR Chapter I 

Authority and Issuance 

For the reasons discussed in the joint 

preamble, the Office of the Comptroller 

of the Currency proposes to amend part 

25 of chapter I of title 12 of the Code 

of Federal Regulations as follows: 

PART 25—COMMUNITY 

REINVESTMENT ACT AND 

INTERSTATE DEPOSIT PRODUCTION 

REGULATIONS 

1. The authority citation for part 25 is 

revised to read as follows: 

Authority: 12 U.S.C. 21, 22, 26, 27, 30, 36, 

93a, 161, 215, 215a, 481, 1814, 1816, 1828(c), 

1835a, 2901 through 2908, and 3101 through 

3111. 

2. In § 25.21, add new paragraphs (e) 

and (f) to read as follows: 

§ 25.21 Performance tests, standards, and 

ratings, in general. 

* * * * * 

(e) Low-cost education loans provided 

to low-income borrowers. In assessing 

and taking into account the record of a 

bank under this part, the OCC considers, 

as a factor, low-cost education loans 

provided by the bank to borrowers in its 

assessment area(s) who have an 

individual income that is less than 50 


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percent of the area median income. For 

purposes of this paragraph, ‘‘low-cost 

education loans’’ means: 

(1) Education loans originated by the 

bank through a loan program of the U.S. 

Department of Education; or 

(2) Any other private education loan, 

as defined in section 140(a)(7) of the 

Truth in Lending Act (including a loan 

under a state or local education loan 

program), originated by the bank for a 

student at an ‘‘institution of higher 

education,’’ as that term is generally 

defined in sections 101 and 102 of the 

Higher Education Act of 1965 (20 U.S.C. 

1001 and 1002) and the implementing 

regulations published by the 

Department of Education, with interest 

rates and fees no greater than those of 

comparable education loans offered 

through loan programs of the U.S. 

Department of Education. 

(f) Activities in cooperation with 

minority- or women-owned financial 

institutions and low-income credit 

unions. In assessing and taking into 

account the record of a nonminorityowned and nonwomen-owned bank 

under this part, the OCC considers as a 

factor capital investment, loan 

participation, and other ventures 

undertaken by the bank in cooperation 

with minority- and women-owned 

financial institutions and low-income 

credit unions, provided that such 

activities help meet the credit needs of 

local communities in which the 

minority- and women-owned financial 

institutions and low-income credit 

unions are chartered. To be considered, 

such activities need not also benefit the 

bank’s assessment area(s) or the broader 

statewide or regional area that includes 

the bank’s assessment area(s). 

3. In Appendix A to Part 25, 

paragraph (a)(1) is revised to read as 

follows: 

Appendix A to Part 25—Ratings 

(a) * * * (1) In assigning a rating, the OCC 

evaluates a bank’s performance under the 

applicable performance criteria in this part, 

in accordance with §§ 25.21 and 25.28. This 

includes consideration of low-cost education 

loans provided to low-income borrowers and 

activities in cooperation with minority- or 

women-owned financial institutions and 

low-income credit unions, as well as 

adjustments on the basis of evidence of 

discriminatory or other illegal credit 

practices. 

* * * * * 

Federal Reserve System 

12 CFR Chapter II 

Authority and Issuance 

For the reasons set forth in the joint 

preamble, the Board of Governors of the 

Federal Reserve System proposes to 

amend part 228 of chapter II of title 12 

of the Code of Federal Regulations as 

follows: 

PART 228—COMMUNITY 

REINVESTMENT (REGULATION BB) 

1. The authority citation for part 228 

is revised to read as follows: 

Authority: 12 U.S.C. 321, 325, 1828(c), 

1842, 1843, 1844, and 2901 through 2908. 

2. In § 228.21, add new paragraphs (e) 

and (f) to read as follows: 

§ 228.21 Performance tests, standards, 

and ratings, in general. 

* * * * * 

(e) Low-cost education loans provided 

to low-income borrowers. In assessing 

and taking into account the record of a 

bank under this part, the Board 

considers, as a factor, low-cost 

education loans provided by the bank to 

borrowers in its assessment area(s) who 

have an individual income that is less 

than 50 percent of the area median 

income. For purposes of this paragraph, 

‘‘low-cost education loans’’ means: 

(1) Education loans originated by the 

bank through a loan program of the U.S. 

Department of Education; or 

(2) Any other private education loan, 

as defined in section 140(a)(7) of the 

Truth in Lending Act (including a loan 

under a State or local education loan 

program), originated by the bank for a 

student at an ‘‘institution of higher 

education,’’ as that term is generally 

defined in sections 101 and 102 of the 

Higher Education Act of 1965 (20 U.S.C. 

1001 and 1002) and the implementing 

regulations published by the 

Department of Education, with interest 

rates and fees no greater than those of 

comparable education loans offered 

through loan programs of the U.S. 

Department of Education. 

(f) Activities in cooperation with 

minority- or women-owned financial 

institutions and low-income credit 

unions. In assessing and taking into 

account the record of a nonminorityowned and nonwomen-owned bank 

under this part, the Board considers as 

a factor capital investment, loan 

participation, and other ventures 

undertaken by the bank in cooperation 

with minority- and women-owned 

financial institutions and low-income 

credit unions, provided that such 

activities help meet the credit needs of 

local communities in which the 

minority- and women-owned financial 

institutions and low-income credit 

unions are chartered. To be considered, 

such activities need not also benefit the 

bank’s assessment area(s) or the broader 

statewide or regional area that includes 

the bank’s assessment area(s). 

3. In Appendix A to Part 228, 

paragraph (a)(1) is revised to read as 

follows: 

Appendix A to Part 228—Ratings 

(a) * * * (1) In assigning a rating, the 

Board evaluates a bank’s performance under 

the applicable performance criteria in this 

part, in accordance with §§ 228.21 and 

228.28. This includes consideration of lowcost education loans provided to low-income 

borrowers and activities in cooperation with 

minority- or women-owned financial 

institutions and low-income credit unions, as 

well as adjustments on the basis of evidence 

of discriminatory or other illegal credit 

practices. 

* * * * * 

Federal Deposit Insurance Corporation 

12 CFR Chapter III 

Authority and Issuance 

For the reasons set forth in the joint 

preamble, the Board of Directors of the 

Federal Deposit Insurance Corporation 

proposes to amend part 345 of chapter 

III of title 12 of the Code of Federal 

Regulations as follows: 

PART 345—COMMUNITY 

REINVESTMENT 

1. The authority citation for part 345 

is revised to read as follows: 

Authority: 12 U.S.C. 1814–1817, 1819– 

1920, 1828, 1831u and 2901–2908, 3103– 

3104, and 3108(a). 

2. In § 345.21, add new paragraphs (e) 

and (f) to read as follows: 

§ 345.21 Performance tests, standards, 

and ratings, in general. 

* * * * * 

(e) Low-cost education loans provided 

to low-income borrowers. In assessing 

and taking into account the record of a 

bank under this part, the FDIC 

considers, as a factor, low-cost 

education loans provided by the bank to 

borrowers in its assessment area(s) who 

have an individual income that is less 

than 50 percent of the area median 

income. For purposes of this paragraph, 

‘‘low-cost education loans’’ means: 

(1) Education loans originated by the 

bank through a loan program of the U.S. 

Department of Education; or 

(2) Any other private education loan, 

as defined in section 140(a)(7) of the 

Truth in Lending Act (including a loan 

under a State or local education loan 

program), originated by the bank for a 

student at an ‘‘institution of higher 

education,’’ as that term is generally 

defined in sections 101 and 102 of the 

Higher Education Act of 1965 (20 U.S.C. 

1001 and 1002) and the implementing 

regulations published by the 

Department of Education, with interest 


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rates and fees no greater than those of 

comparable education loans offered 

through loan programs of the U.S. 

Department of Education. 

(f) Activities in cooperation with 

minority- or women-owned financial 

institutions and low-income credit 

unions. In assessing and taking into 

account the record of a nonminorityowned and nonwomen-owned bank 

under this part, the FDIC considers as a 

factor capital investment, loan 

participation, and other ventures 

undertaken by the bank in cooperation 

with minority- and women-owned 

financial institutions and low-income 

credit unions, provided that such 

activities help meet the credit needs of 

local communities in which the 

minority- and women-owned financial 

institutions and low-income credit 

unions are chartered. To be considered, 

such activities need not also benefit the 

bank’s assessment area(s) or the broader 

statewide or regional area that includes 

the bank’s assessment area(s). 

3. In Appendix A to Part 345, 

paragraph (a)(1) is revised to read as 

follows: 

Appendix A to Part 345—Ratings 

(a) * * * (1) In assigning a rating, the FDIC 

evaluates a bank’s performance under the 

applicable performance criteria in this part, 

in accordance with §§ 345.21 and 345.28. 

This includes consideration of low-cost 

education loans provided to low-income 

borrowers and activities in cooperation with 

minority- or women-owned financial 

institutions and low-income credit unions, as 

well as adjustments on the basis of evidence 

of discriminatory or other illegal credit 

practices. 

* * * * * 

Office of Thrift Supervision 

12 CFR Chapter V 

For the reasons set forth in the joint 

preamble, the Office of Thrift 

Supervision proposes to amend part 

563e of chapter V of title 12 of the Code 

of Federal Regulations as follows: 

PART 563e—COMMUNITY 

REINVESTMENT 

1. The authority citation for part 563e 

is revised to read as follows: 

Authority: 12 U.S.C. 1462a, 1463, 1464, 

1467a, 1814, 1816, 1828(c), and 2901 through 

2908. 

2. In § 563e.21, add new paragraphs 

(e) and (f) to read as follows: 

§ 563e.21 Performance tests, standards, 

and ratings, in general. 

* * * * * 

(e) Low-cost education loans provided 

to low-income borrowers. In assessing 

and taking into account the record of a 

savings association under this part, the 

OTS considers, as a factor, low-cost 

education loans provided by the savings 

association to borrowers in its 

assessment area(s) who have an 

individual income that is less than 50 

percent of the area median income. For 

purposes of this paragraph, ‘‘low-cost 

education loans’’ means: 

(1) Education loans originated by the 

savings association through a loan 

program of the U.S. Department of 

Education; or 

(2) Any other private education loan, 

as defined in section 140(a)(7) of the 

Truth in Lending Act (including a loan 

under a State or local education loan 

program), originated by the savings 

association for a student at an 

‘‘institution of higher education,’’ as 

that term is generally defined in 

sections 101 and 102 of the Higher 

Education Act of 1965 (20 U.S.C. 1001 

and 1002) and the implementing 

regulations published by the 

Department of Education, with interest 

rates and fees no greater than those of 

comparable education loans offered 

through loan programs of the U.S. 

Department of Education 

(f) Activities in cooperation with 

minority- or women-owned financial 

institutions and low-income credit 

unions. In assessing and taking into 

account the record of a nonminorityowned and nonwomen-owned savings 

association under this part, the OTS 

considers as a factor capital investment, 

loan participation, and other ventures 

undertaken by the savings association in 

cooperation with minority- and womenowned financial institutions and lowincome credit unions, provided that 

such activities help meet the credit 

needs of local communities in which 

the minority- and women-owned 

financial institutions and low-income 

credit unions are chartered. To be 

considered, such activities need not also 

benefit the savings association’s 

assessment area(s) or the broader 

statewide or regional area that includes 

the savings association’s assessment 

area(s). 

3. In Appendix A to part 563e, 

paragraph (a)(1) is revised to read as 

follows: 

Appendix A to Part 563e—Ratings 

(a) * * * (1) In assigning a rating, the OTS 

evaluates a savings association’s performance 

under the applicable performance criteria in 

this part, in accordance with §§ 563e.21 and 

563e.28. This includes consideration of lowcost education loans provided to low-income 

borrowers and activities in cooperation with 

minority- or women-owned financial 

institutions and low-income credit unions, as 

well as adjustments on the basis of evidence 

of discriminatory or other illegal credit 

practices. 

* * * * * 

Dated: June 19, 2009. 

John C. Dugan, 

Comptroller of the Currency. 

By order of the Board of Governors of the 

Federal Reserve System, June 23, 2009. 

Jennifer J. Johnson, 

Secretary of the Board. 

Dated at Washington, DC, this 23rd day of 

June 2009. 

Federal Deposit Insurance Corporation. 

Valerie J. Best, 

Assistant Executive Secretary. 

Dated: June 17, 2009. 

By the Office of Thrift Supervision. 

John E. Bowman, 

Acting Director. 

[FR Doc. E9–15204 Filed 6–29–09; 8:45 am] 

BILLING CODE 4810–33–P, 6210–01–P, 6714–01–P, 

6720–01–P 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 370 

RIN 3064–AD37 

Notice of Proposed Rulemaking 

Regarding Possible Amendment of the 

Temporary Liquidity Guarantee 

Program To Extend the Transaction 

Account Guarantee Program With 

Modified Fee Structure 

AGENCY: Federal Deposit Insurance 

Corporation (FDIC). 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The FDIC is issuing this 

Notice of Proposed Rulemaking to 

present and request comment on two 

alternatives for phasing out the 

Transaction Account Guarantee (TAG) 

component of the Temporary Liquidity 

Guarantee Program (TLGP). Under the 

first proposed alternative, the FDIC’s 

guarantee of deposits held in qualifying 

noninterest-bearing transaction accounts 

subject to the TAG program would 

continue until December 31, 2009. 

There would be no modification of the 

existing fee structure or any other 

change in the FDIC’s guarantee of 

noninterest-bearing transaction 

accounts, as provided for in the current 

regulation. 

Under the second proposed 

alternative, the TAG program would be 

extended for six months until June 30, 

2010. Insured depository institutions 

(IDIs) that are currently participating in 

the TAG program would be provided a 

single opportunity to opt out of the 

extended TAG program. IDIs that opt 


sroberts on PROD1PC70 with PROPOSALS