Federal Register / Vol. 66, No. 246 / Friday, December 21, 2001 / Rules and Regulations 65817

Reserve Bank. The Board acted on

requests submitted by the Boards of

Directors of the twelve Federal Reserve

Banks.

DATES: The amendments to part 201

(Regulation A) were effective December

11, 2001. The rate changes for

adjustment credit were effective on the

dates specified in 12 CFR 201.51.

FOR FURTHER INFORMATION CONTACT:

Jennifer J. Johnson, Secretary of the

Board, at (202)452-3259, Board of

Governors of the Federal Reserve

System, 20th and C Streets NW,

Washington, D.C. 20551.

SUPPLEMENTARY INFORMATION: Pursuant

to the authority of sections 10(b), 13, 14,

19, et al., of the Federal Reserve Act, the

Board has amended its Regulation A (12

CFR part 201) to incorporate changes in

discount rates on Federal Reserve Bank

extensions of credit. The discount rates

are the interest rates charged to

depository institutions when they

borrow from their district Reserve

Banks.

The ‘‘basic discount rate’’ is a fixed

rate charged by Reserve Banks for

adjustment credit and, at the Reserve

Banks’ discretion, for extended credit

for up to 30 days. In decreasing the

basic discount rate from 1.5 percent to

1.25 percent, the Board acted on

requests submitted by the Boards of

Directors of the twelve Federal Reserve

Banks. The new rates were effective on

the dates specified below. The 25-basispoint decrease in the discount rate was

associated with a similar decrease in the

federal funds rate approved by the

Federal Open Market Committee

(FOMC) and announced at the same

time.

In a joint press release announcing

these actions, the FOMC and the Board

of Governors stated that economic

activity remains soft, with underlying

inflation likely to edge lower from

relatively modest levels. To be sure,

weakness in demand shows signs of

abating, but those signs are preliminary

and tentative. The Committee continues

to believe that, against the background

of its long-run goals of price stability

and sustainable economic growth and of

the information currently available, the

risks are weighted mainly toward

conditions that may generate economic

weakness in the foreseeable future.

Although the necessary reallocation of

resources to enhance security may

restrain advances in productivity for a

time, the long-term prospects for

productivity growth and the economy

remain favorable and should become

evident once the unusual forces

restraining demand abate.

Regulatory Flexibility Act Certification

Pursuant to section 605(b) of the

Regulatory Flexibility Act (5 U.S.C.

605(b)), the Board certifies that the

change in the basic discount rate will

not have a significant adverse economic

impact on a substantial number of small

entities. The rule does not impose any

additional requirements on entities

affected by the regulation.

Administrative Procedure Act

The provisions of 5 U.S.C. 553(b)

relating to notice and public

participation were not followed in

connection with the adoption of the

amendment because the Board for good

cause finds that delaying the change in

the basic discount rate in order to allow

notice and public comment on the

change is impracticable, unnecessary,

and contrary to the public interest in

fostering price stability and sustainable

economic growth. The provisions of 5

U.S.C. 553(d) that prescribe 30 days

prior notice of the effective date of a

rule have not been followed because

section 553(d) provides that such prior

notice is not necessary whenever there

is good cause for finding that such

notice is contrary to the public interest.

As previously stated, the Board

determined that delaying the changes in

the basic discount rate is contrary to the

public interest.

List of Subjects in 12 CFR Part 201

Banks, banking, Credit, Federal

Reserve System.

For the reasons set out in the

preamble, 12 CFR part 201 is amended

as set forth below:

PART 201 —EXTENSIONS OF CREDIT

BY FEDERAL RESERVE BANKS

(REGULATION A)

1. The authority citation for 12 C.F.R.

part 201 continues to read as follows:

Authority: Authority: 12 U.S.C. 343 et seq.,

347a, 347b, 347c, 347d, 348 et seq., 357,

374,374a and 461.

2. Section 201.51 is revised to read as

follows:

§ 201.51 Adjustment credit for depository

instituions.

The rates for adjustment credit

provided to depository institutions

under § 201.3(a) are:

Federal Reserve Bank Rate Effective

Boston ........... 1.25 December 11, 2001

New York ...... 1.25 December 11, 2001

Philadelphia .. 1.25 December 11, 2001

Cleveland ...... 1.25 December 13, 2001

Richmond ...... 1.25 December 13, 2001

Federal Reserve Bank Rate Effective

Atlanta ........... 1.25 December 13, 2001

Chicago ......... 1.25 December 11, 2001

St. Louis ........ 1.25 December 12, 2001

Minneapolis ... 1.25 December 13, 2001

Kansas City .. 1.25 December 13, 2001

Dallas ............ 1.25 December 13, 2001

San Francisco 1.25 December 11, 2001

By order of the Board of Governors of the

Federal Reserve System.

December 17, 2001.

Jennifer J. Johnson,

Secretary of the Board.

[FR Doc. 01–31433 Filed 12–20–01; 8:45 am]

BILLING CODE 3510–22–S

DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Parts 500, 505, 506, 516, 517,

541, 543, 544, 545, 546, 552, 556, 560,

561, 563, 563d, 563g, 565, 568, 570,

573, 583, and 590

[No. 2001–84]

Technical Amendments

AGENCY: Office of Thrift Supervision,

Treasury.

ACTION: Final rule.

SUMMARY: The Office of Thrift

Supervision (OTS) is amending its

regulations to incorporate a number of

technical and conforming amendments.

They include clarifications, updated

statutory and other references, and

corrections of typographical errors.

EFFECTIVE DATE: December 21, 2001.

FOR FURTHER INFORMATION CONTACT:

Marilyn K. Burton, Senior Paralegal

(Regulations), (202) 906–6467, or Karen

A. Osterloh, Assistant Chief Counsel,

(202) 906–6639, Regulations and

Legislation Division, Chief Counsel’s

Office, Office of Thrift Supervision,

1700 G Street, NW., Washington, DC

20552.

SUPPLEMENTARY INFORMATION: OTS is

amending its regulations to incorporate

a number of technical and conforming

amendments. These changes are

outlined below.

OTS is changing the headings for

several parts to more accurately reflect

the contents. The following chart

illustrates the changes made by this

rule:

65818 Federal Register / Vol. 66, No. 246 / Friday, December 21, 2001 / Rules and Regulations

1 5 U.S.C. 553.

2Pub. L. 103–325, 12 U.S.C. 4802.

3Pub. L. 96–354, 5 U.S.C. 601.

Part Old title New title

500 ....................................... Organization and Channeling of Functions .................... Agency Organization and Functions

516 ....................................... Application Processing Guidelines and Procedures ....... Application Procedures Processing

517 ....................................... The Minority, Women, and Individuals with Disabilities

Outreach Program: Contracting for Goods and Services.

Contracting Outreach Programs

541 ....................................... Definitions ........................................................................ Definitions for Regulations Affecting Federal Savings

Associations

543 ....................................... Incorporation, Organization, and Conversion of Federal

Mutual Associations.

Federal Mutual Associations Savings—Incorporation,

Organization, and Conversion

544 ....................................... Charter and Bylaws ......................................................... Federal Mutual Savings Associations—Charter and Bylaws

545 ....................................... Operations ....................................................................... Federal Savings Associations—Operations

546 ....................................... Merger, Dissolution, Reorganization, and Conversion ... Federal Mutual Savings Associations—Merger, Dissolution, Reorganization, and Conversion

552 ....................................... Incorporation, Organization, and Conversion of Federal

Stock Associations.

Federal Stock Associations—Incorporation, Organization, and Conversion

561 ....................................... Definitions ........................................................................ Definitions for Regulations Affecting All Savings Associations

563 ....................................... Operations ....................................................................... Savings Associations—Operations

568 ....................................... Security Procedures ........................................................ Security Procedures under the Bank Protection Act

570 ....................................... Submission and Review of Safety and Soundness

Compliance Plans and Issuance of Orders to Correct

Safety and Soundness Deficiencies.

Safety and Soundness Guidelines and Compliance Procedures

583 ....................................... Definitions ........................................................................ Definitions for Regulations Affecting Savings and Loan

Holding Companies

In addition, OTS makes the following

miscellaneous changes:

• Part 505—Freedom of Information

Act (FOIA). The final rule revises

§§ 505.1 to 505.4, which describe the

availability of materials under FOIA and

the procedures for requests for records

and administrative appeals. The final

rule indicates that materials are

available through the Dissemination

Branch, General Law Division and the

Public Reading Room, and that the

Public Reading Room is available only

by appointment. The final rule also

provides that requests for records and

administrative appeals of initial

determinations to deny records must be

submitted to the Dissemination Branch,

General Law Division.

• Part 506—Information Collection

Requirements under the Paperwork

Reduction Act (PRA). The final rule

updates the table displaying the OMB

control numbers assigned to various

OTS regulations under the PRA by

inserting additional references to the

control numbers and by correcting

minor typographical errors. See 12 CFR

506.1(b).

• Part 516—Application Processing

Guidelines and Procedures. The final

rule updates § 516.40 to include current

addresses for OTS Regional Offices.

• Part 556—Statements of Policy.

This final rule moves the statement of

policy on branching at 12 CFR 556.5 to

12 CFR 545.93. This provision will now

directly follow OTS rules on branch

offices and branch office applications at

12 CFR 545.92. The only remaining

provision in part 556 is the policy

statement on receipt of interest

expressed as a percentage of other

income. See 12 CFR 556.13. This policy

statement has limited applicability and

is adequately addressed in various OTS

legal opinions. See Op. Chief Counsel

(May 3, 1996). OTS has concluded that

it is unnecessary to continue to include

this policy statement in its rules.

Accordingly, this final rule deletes part

556.

• Part 560—Lending and Investment.

The final rule corrects the indentation

in the supervisory loan-to-value limits

chart in the Appendix to § 560.101.

• Part 563d—Securities of Savings

Associations and Part 563g—Securities

Offerings. The final rule updates the

filing requirements at §§ 563d.1, 563d.2,

563g.5, and 563g.18.

• Part 565—Prompt Corrective

Action. The final rule corrects a

statutory citation in § 565.4(b)(1)(iv).

• Part 568—Security Procedures. The

final rule corrects the authority citation

for this part.

• Part 573—Privacy of Consumer

Financial Information. The final rule

adds a phrase that was inadvertently

omitted from § 573.15(a)(7)(ii). This

change conforms this section to the text

of the rule published on 65 FR 35162

(June 1, 2000).

• Part 590—Preemption of State

Usury Laws. OTS is correcting a

grammatical error in § 590.3(c).

Administrative Procedure Act; Riegle

Community Development and

Regulatory Improvement Act of 1994

OTS finds that there is good cause to

dispense with prior notice and comment

on this final rule and with the 30-day

delay of effective date mandated by the

Administrative Procedure Act.1 OTS

believes that these procedures are

unnecessary and contrary to public

interest because the rule merely corrects

and clarifies existing provisions.

Because the amendments in the rule are

not substantive, these changes will not

detrimentally affect savings

associations.

Section 302 of the Riegle Community

Development and Regulatory

Improvement Act of 1994 provides that

regulations that impose additional

reporting, disclosure, or other new

requirements may not take effect before

the first day of the quarter following

publication.2 This section does not

apply because this final rule imposes no

additional requirements and makes only

technical changes to existing

regulations.

Regulatory Flexibility Act

Pursuant to section 605(b) of the

Regulatory Flexibility Act,3 the OTS

Director certifies that this technical

corrections regulation will not have a

significant economic impact on a

substantial number of small entities.

Executive Order 12866

OTS has determined that this rule is

not a ‘‘significant regulatory action’’ for

purposes of Executive Order 12866.

Federal Register / Vol. 66, No. 246 / Friday, December 21, 2001 / Rules and Regulations 65819

Unfunded Mandates Reform Act of

1995

OTS has determined that the

requirements of this final 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, a

budgetary impact statement is not

required under section 202 of the

Unfunded Mandates Reform Act of

1995.

List of Subjects

12 CFR Part 500

Organization and functions

(Government agencies).

12 CFR Part 505

Freedom of information.

12 CFR Part 506

Reporting and recordkeeping

requirements.

12 CFR Part 516

Administrative practice and

procedure, Reporting and recordkeeping

requirements, Savings associations.

12 CFR Part 517

Government contracts, Individuals

with disabilities, Minority businesses,

Women.

12 CFR Parts 541, 556, and 561

Savings associations.

12 CFR Parts 543, 544, and 546

Reporting and recordkeeping

requirements, Savings associations.

12 CFR Part 545

Accounting, Consumer protection,

Credit, Electronic funds transfers,

Investments, Reporting and

recordkeeping requirements, Savings

associations.

12 CFR Parts 552 and 563g

Reporting and recordkeeping

requirements, Savings associations,

Securities.

12 CFR Part 560

Consumer protection, Investments,

Manufactured homes, Mortgages,

Reporting and recordkeeping

requirements, Savings associations,

Securities.

12 CFR Part 563

Accounting, Advertising, Crime,

Currency, Investments, Reporting and

recordkeeping requirements, Savings

associations, Securities, Surety bonds.

12 CFR Part 563d

Authority delegations (Government

agencies), Reporting and recordkeeping

requirements, Savings associations,

Securities.

12 CFR Part 565

Administrative practice and

procedure, Capital, Savings

associations.

12 CFR Part 568

Reporting and recordkeeping

requirements, Savings associations,

Security measures.

12 CFR Part 570

Accounting, Administrative practice

and procedure, Bank deposit insurance,

Holding companies, Reporting and

recordkeeping requirements, Savings

associations, Safety and soundness.

12 CFR Part 573

Consumer protection, Privacy,

Reporting and recordkeeping

requirements, Savings associations.

12 CFR Part 583

Holding Companies, Savings

associations.

12 CFR Part 590

Banks, banking, Loan programs—

housing and community development,

Manufactured homes, Mortgages,

Savings associations.

Accordingly, the Office of Thrift

Supervision hereby amends title 12,

chapter V of the Code of Federal

Regulations, as set forth below.

PART 500—AGENCY ORGANIZATION

AND FUNCTIONS

1. Revise the part heading for part 500

to read as shown above.

2. The authority citation for part 500

continues to read as follows:

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

PART 505—FREEDOM OF

INFORMATION ACT

3. The authority citation for part 505

continues to read as follows:

Authority: 5 U.S.C. 552; 12 U.S.C. 1462a,

1463, 1464.

4. Revise the third sentence of

§ 505.1(b) to read as follows:

§ 505.1 Basis and Scope.

* * * * *

(b) * * * Procedures for requests for

records are set forth in § 505.3 of this

part. * * *

5. Revise § 505.2 to read as follows:

§ 505.2 Public Reading Room.

OTS will make materials available for

review on an ad hoc basis when

necessary. Contact the Dissemination

Branch, General Law Division, Office of

Thrift Supervision, 1700 G Street, NW.,

Washington, DC 20552, or you may visit

the Public Reading Room at 1700 G

Street, NW., by appointment only. To

make an appointment for access, call

(202) 906–5922, send an E-mail to

publicinfo@ots.treas.gov, or send a

facsimile transmission to (202) 906–

7755. (Please identify the materials you

would like to inspect, to 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 your request.

6. Revise the first two sentences of

§ 505.3 to read as follows:

§ 505.3 Requests for records.

The Manager, Dissemination Branch

or a designated official will make the

initial determination under 31 CFR

1.5(g) whether to grant a request for OTS

records. Requests may be mailed to:

Freedom of Information Act Request,

Dissemination Branch, General Law

Division, Office of Thrift Supervision,

1700 G Street, NW., Washington, DC

20552, or marked ‘‘FOIA’’ and delivered

in person to the Public Reading Room,

Dissemination Branch, General Law

Division, 1700 G Street, NW.,

Washington, DC 20552. * * *

7. Revise the first and third sentences

of § 505.4 to read as follows:

§ 505.4 Administrative appeal of initial

determination to deny records.

The Deputy Chief Counsel for General

Law or a designated official will make

appellate determinations under 31 CFR

1.5(h) with respect to OTS records.

* * * Appeals may be delivered

personally to the Dissemination Branch,

General Law Division, Office of Thrift

Supervision, 1700 G Street, NW.,

Washington, DC 20552. * * *

PART 506—INFORMATION

COLLECTION REQUIREMENTS UNDER

THE PAPERWORK REDUCTION ACT

8. The authority citation for part 506

continues to read as follows:

Authority: 44 U.S.C. 3501 et seq.

9. Amend § 506.1(b) by revising the

entry for part 516, removing the entry

for § 516.1(c), adding new entries for

§§ 533.4, 533.6 and 533.7 in numerical

order, and revising the entry for § 545.92

to read as follows:

§ 506.1 OMB control numbers assigned

pursuant to the Paperwork Reduction Act.

* * * * *

(b) Display.

65820 Federal Register / Vol. 66, No. 246 / Friday, December 21, 2001 / Rules and Regulations

12 CFR part or section

where identified and described

Current OMB

control No.

*****

Part 516 ............................. 1550–0056

*****

533.4 .................................. 1550–0105

533.6 .................................. 1550–0105

533.7 .................................. 1550–0105

12 CFR part or section

where identified and described

Current OMB

control No.

*****

545.92 ................................ 1550–0004 and

1550–0006

*****

PART 516—APPLICATION

PROCESSING PROCEDURES

10. Revise the part heading for part

516 to read as shown above.

11. The authority citation for part 516

continues to read as follows:

Authority: 5 U.S.C. 552, 559; 12 U.S.C.

1462a, 1463, 1464, 2901 et seq.

12. Revise § 516.40(a)(2) to read as

follows:

§ 516.1 Where do I file my application?

(a) * * *

(2) The addresses of each Regional

Office and the states covered by each

office are:

Region Office address States served

Northeast ..................... Office of Thrift Supervision, 10 Exchange Place, 18th

Floor, Jersey City, New Jersey, 07302.

Connecticut, Delaware, Maine, Massachusetts, New

Hampshire, New Jersey, New York, Pennsylvania,

Rhode Island, Vermont, West Virginia.

Southeast .................... Office of Thrift Supervision, 1475 Peachtree Street, NE.,

Atlanta, Georgia 30309. Mail to: PO Box 105217, Atlanta, Georgia 30348–5217.

Alabama, District of Columbia, Florida, Georgia, Maryland,

North Carolina, Puerto Rico, South Carolina, Virginia,

the Virgin Islands

Central ......................... Office of Thrift Supervision, One South Wacker Drive,

Suite 2000, Chicago, Illinois 60606.

Illinois, Indiana, Kentucky, Michigan, Ohio, Tennessee,

Wisconsin

Midwest ....................... Office of Thrift Supervision, 225 E. John Carpenter Freeway, Suite 500, Irving, Texas 75062–2326. Mail to: PO

Box 619027, Dallas/Ft. Worth, Texas 75261–9027.

Arkansas, Colorado, Iowa, Kansas, Louisiana, Minnesota,

Mississippi, Missouri, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas

West ............................ Office of Thrift Supervision, Pacific Plaza, 2001 Junipero

Serra Boulevard, Suite 650, Daly City, California,

94014–1976. Mail to: PO Box 7165, San Francisco,

California 94120–7165.

Alaska, Arizona, California, Guam, Hawaii, Idaho, Montana, Nevada, Northern Mariana Islands, Oregon, Utah,

Washington, Wyoming

* * * * *

PART 517—CONTRACTING

OUTREACH PROGRAMS

13. Revise the part heading for part

517 to read as shown above.

14. The authority citation for part 517

continues to read as follows:

Authority: 12 U.S.C. 1833(e); 42 U.S.C.

12101 et seq.

PART 541—DEFINITIONS FOR

REGULATIONS AFFECTING FEDERAL

SAVINGS ASSOCIATIONS

15. Revise the part heading for part

541 to read as shown above.

16. The authority citation for part 541

continues to read as follows:

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

PART 543—FEDERAL MUTUAL

SAVINGS ASSOCIATIONS—

INCORPORATION, ORGANIZATION,

AND CONVERSION

17. Revise the part heading for part

543 to read as shown above.

18. The authority citation for part 543

continues to read as follows:

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

1464, 1467a, 2901 et seq.

PART 544—FEDERAL MUTUAL

SAVINGS ASSOCIATIONS—CHARTER

AND BYLAWS

19. Revise the part heading for part

544 to read as shown above.

20. The authority citation for part 544

continues to read as follows:

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

1464, 1467a, 2901 et seq.

PART 545—FEDERAL SAVINGS

ASSOCIATIONS—OPERATIONS

21. Revise the part heading for part

545 to read as shown above.

22. The authority citation for part 545

continues to read as follows:

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

1828.

23. Revise § 545.92(d)(2) to read as

follows:

§ 545.92 Branch offices.

* * * * *

(d) * * *

(2) Submission of application or

notice. A Federal savings association

must comply with § 545.93 of this part

and must file its application or notice

within the time frame in § 516.60 of this

chapter.

* * * * *

PART 546—FEDERAL MUTUAL

SAVINGS ASSOCIATIONS—MERGER,

DISSOLUTION, REORGANIZATION,

AND CONVERSION

24. Revise the part heading for part

546 to read as shown above.

25. The authority citation for part 546

continues to read as follows:

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

1464, 1467a, 2901 et seq.

PART 552—FEDERAL STOCK

ASSOCIATIONS—INCORPORATION,

ORGANIZATION, AND CONVERSION

26. Revise the part heading for part

552 to read as shown above.

27. The authority citation for part 552

continues to read as follows:

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

1464, 1467a.

PART 556—STATEMENTS OF POLICY

[REMOVED]

§ 556.5 [Redesignated as § 545.93]

28. Redesignate § 556.5 as § 545.93.

Part 556 [Removed]

28a. Remove part 556.

Federal Register / Vol. 66, No. 246 / Friday, December 21, 2001 / Rules and Regulations 65821

PART 560—LENDING AND

INVESTMENT

29. The authority citation for part 560

continues to read as follows:

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

1464, 1467a, 1701j-3, 1828, 3803, 3806; 42

U.S.C. 4106.

30. Amend the Appendix to § 560.101

by revising the Supervisory Loan-toValue Limits table to read as follows:

§ 560.101 Real estate lending standards.

* * * * *

Appendix to § 560.101—Interagency

Guidelines for Real Estate Lending

Policies

* * * * *

Supervisory Loan-to-Value Limits

* * * * *

Loan category

Loan-tovalue limit

(percent)

Raw land ................................... 65

Land development .................... 75

Construction:

Commercial, multifamily,1

and other nonresidential 80

1- to 4-family residential .... 85

Improved property .................... 85

Owner-occupied 1- to 4-family

and home equity ................... (2)

1 Multifamily construction includes condominiums and cooperatives. 2A loan-to-value limit has not been established for permanent mortgage or home equity

loans on owner-occupied, 1- to 4-family residential property. However, for any such loan

with a loan-to-value ratio that equals or exceeds 90 percent at origination, an institution

should require appropriate credit enhancement

in the form of either mortgage insurance or

readily marketable collateral.

* * * * *

PART 561—DEFINITIONS FOR

REGULATIONS AFFECTING ALL

SAVINGS ASSOCIATIONS

31. Revise the part heading for part

561 to read as shown above.

32. The authority citation for part 561

continues to read as follows:

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

1464, 1467a.

PART 563—SAVINGS

ASSOCIATIONS—OPERATIONS

33. Revise the part heading for part

563 to read as shown above.

34. The authority citation for part 563

continues to read as follows:

Authority: 12 U.S.C. 375b, 1462, 1462a,

1463, 1464, 1467a, 1468, 1817, 1820, 1828,

1831o, 3806; 42 U.S.C. 4106.

PART 563d—SECURITIES OF

SAVINGS ASSOCIATIONS

35. The authority citation for part

563d continues to read as follows:

Authority: 12 U.S.C. 1462a, 1463, 1464; 15

U.S.C. 78c(b), 78l, 78m, 78w, 78d–1.

36. Revise the fourth sentence of

§ 563d.1 to read as follows:

§ 563d.1 Requirements under certain

sections of the Securities Exchange Act of

1934.

* * * All filings with respect to

securities issued by savings associations

required by those rules and regulations

to be made with the Commission shall

be made with the Business Transactions

Division, Chief Counsel’s Office, Office

of Thrift Supervision, 1700 G Street,

NW., Washington, DC 20552, by

submitting such filings to the Securities

Filing Desk at the above address, except

as noted in § 563d.2 of this part. * * *

37. Revise the third sentence of

§ 563d.2 to read as follows:

§ 563d.2 Mailing requirements for

securities filings.

* * * The originally-signed copy and

all remaining copies of each filing shall

be sent to the Business Transactions

Division by submitting such filings to

the Securities Filing Desk at the address

specified in § 563d.1 of this part. * * *

PART 563g—SECURITIES OFFERINGS

38. The authority citation for part

563g continues to read as follows:

Authority: 12 U.S.C. 1462a, 1463, 1464; 15

U.S.C. 78c(b), 78l, 78m, 78n, 78p, 78w.

39. Revise § 563g.5(b)(1) introductory

text, (b)(1)(i), and (b)(2) to read as

follows:

§ 563g.5 Filing and signature

requirements.

* * * * *

(b) * * * (1) Unless otherwise

required, any filing under this part shall

include nine copies of the document to

be filed with the Business Transactions

Division, Chief Counsel’s Office, as

follows:

(i) Seven copies, which shall include

one manually signed copy with exhibits,

three conformed copies with exhibits,

and three conformed copies without

exhibits, to the Securities Filing Desk,

Office of Thrift Supervision, 1700 G

Street, NW., Washington, DC 20552; and

* * * * *

(2) Within five days after the effective

date of an offering circular or the

commencement of a public offering after

the effective date, whichever occurs

later, nine copies of the offering circular

used shall be filed with OTS, as follows:

seven copies to the Securities Filing

Desk, Office of Thrift Supervision, 1700

G Street, NW., Washington, DC 20552,

and two copies to the Regional Director.

* * * * *

40. Revise the last sentence of

§ 563g.18(a) to read as follows:

§ 563g.18 Current and periodic reports.

(a) * * * The duty to file under this

section shall also be automatically

suspended as to any fiscal year, other

than the fiscal year within which such

offering circular became effective, if, at

the beginning of such fiscal year, the

securities of each class to which the

offering circular relates are held of

record by less than three hundred

persons and upon the filing of a Form

15.

* * * * *

PART 565—PROMPT CORRECTIVE

ACTION

41. The authority citation for part 565

continues to read as follows:

Authority: 12 U.S.C. 1831o.

42. Revise § 565.4(b)(1)(iv) is revised

to read as set forth:

§ 565.4 Capital measures and capital

category definitions.

* * * * *

(b) * * *

(1) * * *

(iv) Is not subject to any written

agreement, order, capital directive, or

prompt corrective action directive

issued by OTS under section 8 of the

FDI Act, the International Lending

Supervision Act of 1983 (12 U.S.C.

3907), the Home Owners’ Loan Act (12

U.S.C. 1464(t)(6)(A)(ii)), or section 38 of

the FDI Act, or any regulation

thereunder, to meet and maintain a

specific capital level for any capital

measure.

* * * * *

PART 568—SECURITY PROCEDURES

UNDER THE BANK PROTECTION ACT

43. Revise the part heading for part

568 to read as shown above.

44. Revise the authority citation for

part 568 to read as follows:

Authority: Secs. 2–5, 82 Stat. 294–295 (12

U.S.C. 1881–1884).

PART 570—SAFETY AND SOUNDNESS

GUIDELINES AND COMPLIANCE

PROCEDURES

45. Revise the part heading for part

570 to read as shown above.

46. The authority citation for part 570

continues to read as follows:

Authority: 12 U.S.C. 1831p–1.

65822 Federal Register / Vol. 66, No. 246 / Friday, December 21, 2001 / Rules and Regulations

1See Lending and Investment Final Rule, 61 FR

50951 (Sept. 30, 1996); Subsidiaries and Equity

Investments, 61 FR 66561 (Dec. 18, 1996).

2Sections 5(c)(2)(A) and 10(m)(4)(E) specifically

authorize the Director to define the terms ‘‘small

business loans’’ and ‘‘small business’’ for purposes

of HOLA investment limits and the Qualified Thrift

Lender test, respectively.

PART 573—PRIVACY OF CONSUMER

FINANCIAL INFORMATION

47. The authority citation for part 573

continues to read as follows:

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

1828; 15 U.S.C. 6801 et seq.

48. Revise § 573.15 (a)(7)(ii) to read as

follows:

§ 573.15 Other exceptions to notice and

opt out requirements.

(a) * * *

(7) * * *

(ii) To comply with a properly

authorized civil, criminal, or regulatory

investigation, or subpoena or summons

by Federal, State, or local authorities; or

* * * * *

PART 583—DEFINITIONS FOR

REGULATIONS AFFECTING SAVINGS

AND LOAN HOLDING COMPANIES

49. Revise the part heading for part

583 to read as shown above.

50. The authority citation for part 583

continues to read as follows:

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

1464, 1467a, 1468.

PART 590—PREEMPTION OF STATE

USURY LAWS

51. The authority citation for part 590

continues to read as follows:

Authority: 12 U.S.C. 1735f–7a.

52. Revise 590.3(c) to read as follows:

§ 590.3 Operation.

* * * * *

(c) Nothing in this section preempts

limitations in state laws on prepayment

charges, attorneys’ fees, late charges or

other provisions designed to protect

borrowers.

Dated: December 11, 2001.

By the Office of Thrift Supervision.

James E. Gilleran,

Director.

[FR Doc. 01–31053 Filed 12–20–01; 8:45 am]

BILLING CODE 6720–01–P

DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Parts 559 and 560

[No. 2001–82]

RIN 1550–AB37

Lending and Investment

AGENCY: Office of Thrift Supervision,

Treasury.

ACTION: Final rule.

SUMMARY: The Office of Thrift

Supervision (‘‘OTS’’) is revising and

clarifying its lending and investment

regulations to give savings associations

greater flexibility in a changing

marketplace. Today’s regulatory

amendments are intended to help thrifts

take better advantage of the flexibility

available under the Home Owners’ Loan

Act (‘‘HOLA’’), to provide low-cost

credit to their customers, and to invest

in their communities while still

operating safely and soundly.

EFFECTIVE DATE: This rule is effective on

January 1, 2002.

FOR FURTHER INFORMATION CONTACT:

William J. Magrini, Senior Project

Manager, Supervision Policy, (202) 906–

5744; Karen Osterloh, Assistant Chief

Counsel, Regulations and Legislation

Division, (202) 906–6639, Office of

Thrift Supervision, 1700 G Street, NW.,

Washington, DC 20552.

SUPPLEMENTARY INFORMATION:

I. Background

OTS periodically reviews its lending

and investment regulations to ensure

that they enhance safe and sound

lending, implement statutory

requirements, protect consumers,

minimize regulatory burden, and are

clearly written. OTS lending and

investment regulations have been

considerably modified over time as

savings associations, their markets, their

competition, and the economy have

changed. For the most part, OTS has

taken a contract and market-based

approach to provide flexibility for thrifts

and their customers and to encourage

innovations in lending to help make

credit more available.

OTS last substantively revised its

lending regulations and subordinate

organizations regulations in 1996.1

Since that time, the markets in which

thrifts operate have changed

substantially. In the primary market,

savings associations now compete with

other mortgage lenders to offer potential

borrowers a wide variety of options

besides the traditional 30-year fixed-rate

purchase money mortgage. The

secondary market continues to narrow

the interest-rate spread on high quality

mortgages.

As the residential mortgage market

has evolved, thrifts have increasingly

begun to explore offering other types of

credit needed in their communities,

including consumer lending and small

business lending. A variety of

community-related investment

opportunities offer thrifts new ways to

serve and to participate in the economic

development of their communities.

Thrifts have asked whether and how

such loans and investments may be

made by either the thrift itself or

through an operating subsidiary or

service corporation.

This evolving environment made it

appropriate for OTS to again re-examine

and update its lending and investment

and subordinate organizations

regulations. Accordingly, on November

1, 2001, OTS published a proposed rule

intended to help thrifts take better

advantage of the flexibility available

under the Home Owners’ Loan Act

(‘‘HOLA’’), to provide low-cost credit to

their customers, and to invest in their

communities while still operating safely

and soundly. 66 FR 55131 (Nov. 1,

2001).

II. Analysis of Comments

OTS received eight public comments

from three Federal savings associations,

three trade associations, a community

group, and an individual. Seven

commenters supported the rule, but

recommended modifications. The

commenter opposing the rule

incorrectly believed that the rule

applied to institutions with a common

bond (i.e., credit unions), rather than

thrifts. The remaining comments are

summarized below.

Small Business Loans

Existing § 560.3 provides two

alternatives for determining whether a

particular loan qualifies as a small

business loan.2 First, a loan of any size

qualifies if the loan is made to a

business that meets the size standards

established by the Small Business

Administration. Second, a loan qualifies

if a savings association makes a loan to

a business and the amount of the loan

is less than $1 million, or makes a loan

to a farm and the amount of the loan is

less than $500,000. OTS proposed to

raise this safe harbor amount to $2

million for both small business and farm

loans.

Most commenters supported the

increase. One commenter, however,

noted that the existing definition is

more consistent with an emphasis on

serving the smallest businesses and

farms and with the Community

Reinvestment Act (CRA) definition of

small business and farm loan. This

commenter feared that the proposed

increase could cause thrifts to neglect

the smallest businesses.