Federal Register / Vol. 66, No. 2 / Wednesday, January 3, 2001 / Rules and Regulations 257

1The GLB Act also allows financial holding

companies to seek Board approval to engage in any

activity that the Board determines both to be

complementary to a financial activity and not to

pose a substantial risk to the safety and soundness

of depository institutions or the financial system

generally. 12 U.S.C. 1843(k)(1)(B).

shipment by the attendant, carrier, or

intermediate handler. The ambient

temperature must be measured halfway

up the outside of the primary transport

enclosure at a distance from the external

wall of the primary transport enclosure

not to exceed 0.91 meters (3 feet).

15. Section 3.118 is revised to read as

follows:

§ 3.118 Handling.

(a) Carriers and intermediate handlers

moving marine mammals from the

animal holding area of the terminal

facility to the primary conveyance or

from the primary conveyance to the

animal holding area of the terminal

facility must provide the following:

(1) Movement of animals as

expeditiously as possible.

(2) Shelter from overheating and

direct sunlight. When sunlight is likely

to cause overheating, sunburn, or

discomfort, sufficient shade must be

provided to protect the marine

mammals. Marine mammals must not be

subjected to surrounding air

temperatures that exceed 23.9 °C (75 °F)

unless accompanied by an acclimation

certificate in accordance with § 3.112 of

this subpart. The temperature must be

measured and read within or

immediately adjacent to the primary

transport enclosure.

(3) Shelter from cold weather. Marine

mammals must be provided with

species appropriate protection against

cold weather, and such marine

mammals must not be subjected to

surrounding air temperatures that fall

below 7.2 °C (45 °F) unless

accompanied by an acclimation

certificate in accordance with § 3.112 of

this subpart. The temperature must be

measured and read within or

immediately adjacent to the primary

transport enclosure.

(b) Care must be exercised to avoid

handling of the primary transport

enclosure in a manner that may cause

physical harm or distress to the marine

mammal contained within.

(c) Enclosures used to transport any

marine mammal must not be tossed,

dropped, or needlessly tilted and must

not be stacked unless properly secured.

Done in Washington, DC, this 26th day of

December 2000.

Craig A. Reed,

Administrator, Animal and Plant Health

Inspection Service.

[FR Doc. 01–135 Filed 1–2–01; 8:45 am]

BILLING CODE 3410–34–P

FEDERAL RESERVE SYSTEM

12 CFR Part 225

[Regulation Y; Docket No. R–1094]

Bank Holding Companies and Change

in Bank Control

DEPARTMENT OF THE TREASURY

Office of the Under Secretary for

Domestic Finance

12 CFR Part 1501

RIN 1505–AA85

Financial Subsidiaries

AGENCY: Board of Governors of the

Federal Reserve System and Department

of the Treasury.

ACTION: Joint interim rule with request

for public comments.

SUMMARY: The Board of Governors of the

Federal Reserve System and the

Secretary of the Treasury (the Agencies)

are soliciting comment on interim rules

that would implement section 4(k)(5) of

the Bank Holding Company Act and

section 5136A(b)(3) of the Revised

Statutes, as enacted by the GrammLeach-Bliley Act. The interim rules find

three general types of activities to be

financial in nature, and create a

mechanism by which financial holding

companies, financial subsidiaries of

national banks, or others may request

that the Board or the Secretary,

respectively, define particular activities

within one of the three categories.

The Board and the Secretary solicit

comments on all aspects of the interim

rule and will modify the final rule as

appropriate in response to the

comments received.

DATES: The interim rule is effective on

January 2, 2001. Comments must be

received by February 2, 2001.

ADDRESSES: Comments should refer to

Docket No. R–1094, and may be mailed

to Ms. Jennifer J. Johnson, Secretary,

Board of Governors of the Federal

Reserve System, 20th Street and

Constitution Avenue, NW., Washington,

DC 20551 or mailed electronically to

regs.comments@federalreserve.gov and

to Three Financial Activities Regulation,

Office of Financial Institution Policy,

U.S. Department of the Treasury, 1500

Pennsylvania Avenue, NW., Room SC

37, Washington, DC 20220 (or mailed

electronically to

financial.institutions@do.treas.gov).

Comments addressed to Ms. Johnson

also may be delivered to Room B–2222

of the Eccles Building between 8:45 a.m.

and 5:15 p.m. weekdays or delivered to

the guard station in the Eccles Building

Courtyard on 20th Street, NW. (between

Constitution Avenue and C Street, NW.)

at any time. All comments received at

the above address will be available for

inspection and copying by any member

of the public in the Freedom of

Information Office, Room MP–500 of the

Martin Building, between 9:00 a.m. and

5:00 p.m. weekdays, except as provided

in § 261.14 of the Board’s Rules

Regarding the Availability of

Information (12 CFR 261.14). Comments

addressed to the Treasury Department

may also be delivered to the Treasury

Department mail room between the

hours of 8:45 a.m. and 5:15 p.m. at the

15th Street entrance to the Treasury

Building.

FOR FURTHER INFORMATION CONTACT:

Board: Scott G. Alvarez, Associate

General Counsel (202/452–3583), or

Andrew S. Baer, Senior Attorney (202/

452–2246), Legal Division. Users of

Telecommunication Device for Deaf

(TTD) only, contact Janice Simms at

(202) 872–4984.

Department of the Treasury: Gerry

Hughes, Senior Financial Analyst (202/

622–2740); Roberta K. McInerney,

Assistant General Counsel (Banking and

Finance) (202/622–0480); or Gary W.

Sutton, Senior Banking Counsel (202/

622–0480).

SUPPLEMENTARY INFORMATION:

Background

These interim rules implement

section 4(k)(5) of the Bank Holding

Company Act (‘‘BHC Act’’) (12 U.S.C.

1843(k)(5)), which was added to the

BHC Act by section 103 of the GrammLeach-Bliley Act (Pub. L. 106–102, 113

Stat. 1338 (1999)) (the ‘‘GLB Act’’), and

section 5136A(b)(3) of the Revised

Statutes (12 U.S.C. 24a(b)(3)) (‘‘section

5136A’’), as enacted by section 121(a) of

the GLB Act. The GLB Act amended the

BHC Act to allow bank holding

companies and foreign banks that

qualify as financial holding companies

to engage in a broad range of activities

that are defined by the GLB Act to be

financial in nature or incidental to a

financial activity, or that the Board, in

consultation with the Secretary of the

Treasury, determines to be financial in

nature or incidental to a financial

activity.1 Bank holding companies that

do not qualify as financial holding

companies are limited to engaging in

258 Federal Register / Vol. 66, No. 2 / Wednesday, January 3, 2001 / Rules and Regulations

2 12 U.S.C. 24a(b)(2) and 1843(k)(3).

3 12 C.F.R. 225.28(b)(8)(ii)(B).

those nonbanking activities that were

permissible for bank holding companies

prior to the enactment of the GLB Act.

The GLB Act also allowed national

banks to establish ‘‘financial

subsidiaries.’’ A financial subsidiary

may engage in most, but not all,

activities that are financial in nature or

incidental to a financial activity for a

financial holding company under

section 4(k)(4) of the BHC Act (12 U.S.C.

1843(k)(4)), and may engage in

additional activities that are determined

by the Secretary in consultation with

the Board to be financial in nature or

incidental to a financial activity, as well

as in activities that are permissible for

national banks to engage in directly. 12

U.S.C. 24a.

The activities that were defined by the

GLB Act to be financial in nature or

incidental to a financial activity are

generally set forth in section 4(k)(4) of

the BHC Act (12 U.S.C. 1843(k)(4)). In

addition, sections 4(k)(5) of the BHC Act

and 5136A(b)(3) require the Board and

the Secretary, respectively, to define the

extent to which three other generally

described activities are financial in

nature or incidental to a financial

activity. The Board and the Secretary

may act by regulation or order. The

Board must define these activities in a

manner consistent with the purposes of

the BHC Act, and the Secretary must

apply similar standards. The three

activities are:

(i) Lending, exchanging, transferring,

investing for others, or safeguarding

financial assets other than money or

securities;

(ii) Providing any device or other

instrumentality for transferring money

or other financial assets; and

(iii) Arranging, effecting or facilitating

financial transactions for the account of

third parties.

These three categories encompass a

wide range of activities. Included in

these categories are some activities in

which financial holding companies and

national banks and their financial

subsidiaries are already permitted to

engage. For example, these categories

include providing safe deposit services,

electronic funds transfer activities,

credit and stored-value card activities,

securities brokerage activities, as well as

finder activities. The categories were

intended, however, to allow financial

holding companies and financial

subsidiaries to engage in activities that

were not otherwise permitted for these

companies.

The Board and the Secretary therefore

solicit comment regarding what

activities should be defined by rule to

be financial in nature or incidental to a

financial activity for purposes of

sections 4(k)(5) and 5136A(b)(3). In

addition, the Board and the Secretary

solicit comment on an interim rule that

creates a mechanism, described below,

that would permit agency action by

order on proposals to engage in specific

activities pursuant to section 4(k)(5).

Interim Rule

The Board and the Secretary are

promulgating, on an interim basis, rules

that create a procedure by which a

financial holding company or a

financial subsidiary may obtain a

determination from the Board or the

Secretary, respectively, that a specific

proposed activity does, in fact, fall

within one of the three defined types of

activities.

The interim rules also provide that

the Board and the Secretary will consult

with each other with regard to any

request for such a determination. This

consultation is required by section

4(k)(2)(A) of the BHC Act (12 U.S.C.

1843(k)(2)(A)), which requires the Board

to notify the Secretary of any request

under section 4(k) for a determination of

whether an activity is financial in

nature or incidental to a financial

activity, and by section 5136A(b)(1)(B)

(12 U.S.C. 24a(b)(1)(B)), which requires

similar notification and consultation for

proposals raised before the Secretary.

Following this consultation, the agency

to which the request was made will

promptly issue a written determination

regarding whether the specific proposed

activity falls within one of the three

categories of activities listed in sections

4(k)(5) and 5136A(b)(3). The Board and

the Secretary believe that requiring

financial holding companies and

financial subsidiaries that seek to

engage in particular activities pursuant

to section 4(k)(5) or section 5136A(b)(3)

to file requests with the appropriate

agency for approval of those activities is

necessary at this time because of the

broad scope of the statutory language.

Any request made under the interim

rules for a determination that an activity

falls within one of the three listed

categories must be submitted in writing

to the Board or the Secretary, as

appropriate, and must identify and

define the activity for which the

determination is sought, including a

precise description of what the activity

would involve and how and by what

entity it would be conducted. The

request must also include information

that supports the requested

determination, and in particular

information regarding how the proposed

activity falls into one of the three

categories and any other information

required by the Board or the Secretary.

In reviewing requests to find that a

specific activity falls within one of the

three categories, the Board and the

Secretary will take into account the

same factors each must consider when

determining whether any activity is

financial in nature or incidental to a

financial activity. These factors include,

among other things, changes in

marketplaces in which financial holding

companies and banks compete, changes

in the technology for delivering

financial services, and whether the

activity is necessary or appropriate to

allow financial holding companies and

their affiliates, or banks and their

subsidiaries, to compete effectively with

any company seeking to provide

financial services in the United States.2

The mechanism for reviewing specific

requests under sections 4(k)(5) and

5136A(b)(3) is being adopted on an

interim basis to allow interested

financial holding companies and

financial subsidiaries to take advantage

of these authorities immediately. The

agencies invite comment on this interim

mechanism.

The Board and the Secretary also

invite comment generally on what, if

any, activities should be defined by rule

to be within the authorities granted by

sections (4)(k)(5) and 5136A(b)(3). In

this regard, the Board’s Regulation Y

currently employs the term ‘‘financial

asset’’ primarily in connection with

securities and precious metals.3 The

Board and the Treasury solicit comment

regarding what other types of assets

should also be considered financial

assets for purposes of section 4(k)(5) and

section 5136A(b)(3). In this regard, the

Board and the Secretary believe that it

would be inconsistent with the

purposes of the GLB Act and the BHC

Act to treat as a financial asset any item

that can be purchased or acquired in

exchange for a financial instrument

such as cash.

Once the appropriate agency has

determined that a particular activity is

financial in nature or incidental to a

financial activity under sections 4(k)(5)

or 5136A(b)(3), either by rule or by

order, other financial holding

companies and financial subsidiaries

would be eligible to engage in the

activity if applicable requirements are

met. A financial holding company must

file a notice with the Board within 30

days after commencement of the

activity, in accordance with section

4(k)(6) of the BHC Act (12 U.S.C.

1843(k)(6)) and section 225.87 of the

Board’s Regulation Y (12 CFR 225.87). A

national bank seeking to engage in the

Federal Register / Vol. 66, No. 2 / Wednesday, January 3, 2001 / Rules and Regulations 259

activity through a financial subsidiary

must file a notice with the OCC in

accordance with section 5136A and

section 5.39(i) of the regulations of the

OCC (12 CFR 5.39(i)). In either case, the

company must conduct the activity in

accordance with the relevant order or

rule.

The Board and the Secretary invite

comment on all aspects of the proposal

and interim rules.

Plain Language

Section 722 of the GLB Act requires

the Board to use ‘‘plain language’’ in all

proposed and final rules published after

January 1, 2000. In light of this

requirement, the Board has sought to

present its proposed rule in a simple

and straightforward manner and has

included in the rule examples of

activities that would be permissible

under the proposed rule. The Board

invites comments on whether there are

additional steps the Board could take to

make the proposed rule easier to

understand.

Regulatory Flexibility Act Analysis

Pursuant to section 605(b) of the

Regulatory Flexibility Act, the Agencies

certify that the interim rules would not

have a significant economic impact on

a substantial number of small entities

within the meaning of the Regulatory

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

The interim rules would reduce the

regulatory burden on financial holding

companies and financial subsidiaries of

national banks by permitting them to

engage in an expanded range of

activities, if they choose to do so. The

interim rules would apply to all

financial holding companies and

national bank financial subsidiaries,

regardless of their size. The interim

rules should enhance the ability of

financial holding companies and

financial subsidiaries, including small

financial holding companies and

financial subsidiaries, to compete with

other providers of financial services in

the United States and to respond to

technological and other changes in the

marketplace in which they compete.

Accordingly, a regulatory flexibility

analysis is not required.

Administrative Procedure Act

The provisions of the rule are

effective on January 2, 2001 on an

interim basis. Pursuant to 5 U.S.C. 553,

the Board and the Secretary find that it

is impracticable to review public

comments prior to the effective date of

the interim rule, and that there is good

cause to make the interim rule effective

on January 2, 2001, due to the fact that

the rule sets forth procedures to

implement statutory changes that

became effective on March 11, 2000.

Specifically, the rule sets forth a

mechanism through which the Board

and the Secretary may act on requests to

find particular activities to be

permissible for financial holding

companies or financial subsidiaries of

national banks pursuant to section

4(k)(5) or 5136A(b)(3). The Board and

the Secretary are seeking public

comment on all aspects of the interim

rule and will amend the rule as

appropriate after reviewing the

comments.

Paperwork Reduction Act

Board: In accordance with section

3506 of the Paperwork Reduction Act of

1995 (44 U.S.C. Ch. 35; 5 CFR 1320

Appendix A.1), the Board reviewed the

interim rule under the authority

delegated to the Board by the Office of

Management and Budget.

The collection of information

requirements in this interim rulemaking

are found in 12 CFR 225.86. This

information is required to evidence

compliance with the requirements of

Title I of the GLB Act, which amends

section 4 of the Bank Holding Company

Act (12 U.S.C. 1843). The respondents

are current and future bank holding

companies and foreign banking

organizations.

The specific written request cited in

12 CFR 225.86(d)(2) provides that a

financial holding company that wishes

to engage in a particular activity

pursuant to section 4(k)(5) of the BHC

Act and 12 CFR 225.86(b)(1) must file a

request with the Board that it find the

proposed activity to fall under one of

the three categories of activities listed in

section 4(k)(5) and 12 CFR 225.86(b)(1).

If the Board has previously determined

that the proposed activity falls under

one of those three categories, no such

request need be made. The request must

include information that specifically

describes the proposed activity, and that

articulates reasons why the activity

should be considered to fall under one

of the three listed activity categories.

There will be no reporting form for this

information collection. The agency form

number for this written request is FR

4012. The Federal Reserve estimates

that approximately 25 financial holding

companies will file the requests for

Board determination during the first

year and that it will take approximately

1 hour to file such request. This would

result in an estimated annual burden of

25 hours.

The OMB control number for this

interim rule is 7100–0292. The Federal

Reserve may not conduct or sponsor,

and an organization is not required to

respond to this information collection

unless the Board has displayed a valid

OMB control number.

A financial holding company may

request confidentiality for the

information contained in this

information collection pursuant to

sections (b)(4) and (b)(6) of the Freedom

of Information Act (5 U.S.C. 552(b)(4)

and (b)(6)).

Comments are invited on: (a) Whether

the proposed collection of information

is necessary for the proper performance

of the Federal Reserve’s functions,

including whether the information has

practical utility; (b) the accuracy of the

Federal Reserve’s estimate of the burden

of the proposed information collection,

including the cost of compliance; (c)

ways to enhance the quality, utility, and

clarity of the information to be

collected; and (d) ways to minimize the

burden of information collection on

respondents, including through the use

of automated collection techniques or

other forms of information technology.

Comments on the collection of

information should be sent to the Office

of Management and Budget, Paperwork

Reduction Project, Washington, DC

20503, with copies of such comments to

be sent to Mary M. West, Federal

Reserve Board Clearance Officer,

Division of Research and Statistics, Mail

Stop 97, Board of Governors of the

Federal Reserve System, Washington,

DC 20551.

Treasury: This regulation is being

issued without prior notice and public

procedure pursuant to the

Administrative Procedure Act (5 U.S.C.

553). For this reason, the collection of

information contained in this regulation

has been reviewed under the

requirements of the Paperwork

Reduction Act (44 U.S.C. 3507(j)) and,

pending receipt and evaluation of

public comments, approved by the

Office of Management and Budget

(OMB) under control number 1505–

0179. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by OMB.

Comments concerning the collection

of information should be directed to

OMB, Attention: Desk Officer for the

Department of the Treasury, Office of

Information and Regulatory Affairs,

Washington, D.C., 20503, with copies to

Gary Sutton, Senior Banking Counsel,

Office of General Counsel, 1500

Pennsylvania Avenue NW., Room 2014,

Washington, DC 20220. Any such

comments should be submitted not later

than February 2, 2001. Comments are

specifically requested concerning:

260 Federal Register / Vol. 66, No. 2 / Wednesday, January 3, 2001 / Rules and Regulations

Whether the proposed collection of

information is necessary for the proper

performance of the functions of the

Secretary, including whether the

information will have practical utility;

the accuracy of the estimated burden

associated with the proposed collection

of information (see below); how to

enhance the quality, utility, and clarity

of the information to be collected; how

to minimize the burden of complying

with the proposed collection of

information, including the application

of automated collection techniques or

other forms of information technology;

and estimates of capital or start-up costs

and costs of operation, maintenance,

and purchase of services to provide

information.

The collection of information in this

regulation is in 12 CFR section 1501.2.

This information is required to request

that the Secretary determine that a

particular activity is included within

three general categories of activities and

therefore that it is financial in nature or

incidental to a financial activity. This

information will be used to enable the

Secretary to evaluate a request for such

a determination. The collection of

information is required to obtain a

benefit. The likely respondents are

national banks.

Estimated total annual reporting

burden: 100 hours.

Estimated average annual burden

hours per respondent: 20 hours.

Estimated number of respondents: 5.

Estimated annual frequency of

responses: once.

Executive Order 12866 Determination

The Department of the Treasury has

determined that this rule does not

constitute a ‘‘significant regulatory

action’’ for the purposes of Executive

Order 12866.

List of Subjects

12 CFR Part 225

Administrative practice and

procedure, Banks, banking, Federal

Reserve System, Holding companies,

Reporting and record keeping

requirements, Securities.

12 CFR Part 1501

Administrative practice and

procedure, National banks, Reporting

and recordkeeping requirements.

Board of Governors of the Federal

Reserve System

12 CFR Chapter II

Authority and Issuance

For the reasons set out in the joint

preamble, the Board amends 12 CFR

Part 225 as follows:

PART 225—BANK HOLDING

COMPANY AND CHANGE IN BANK

CONTROL (REGULATION Y)

1. The authority citation for part 225

continues to read as follows:

Authority: 12 U.S.C. 1817(j)(13), 1818,

1828(o), 1831(i), 1831p-1, 1843(c)(8), 1843(k),

1844(b), 1972(1), 3106, 3108, 3310, 3331–

3351, 3907, and 3909.

2. In § 225.86, a new paragraph (d) is

added and reserved; and a new

paragraph (e) is added to read as

follows:

§ 225.86 What activities are permissible for

financial holding companies?

* * * * *

(e) Activities permitted under section

4(k)(5) of the Bank Holding Company

Act (12 U.S.C. 1843(k)(5)).

(1) The following types of activities

are financial in nature or incidental to

a financial activity when conducted

pursuant to a determination by the

Board under paragraph (e)(2) of this

section:

(i) Lending, exchanging, transferring,

investing for others, or safeguarding

financial assets other than money or

securities;

(ii) Providing any device or other

instrumentality for transferring money

or other financial assets; and

(iii) Arranging, effecting, or

facilitating financial transactions for the

account of third parties.

(2) Review of specific activities.

(i) Is a specific request required? A

financial holding company that wishes

to engage on the basis of paragraph

(e)(1) of this section in an activity that

is not otherwise permissible for a

financial holding company must obtain

a determination from the Board that the

activity is permitted under paragraph

(e)(1).

(ii) Consultation with the Secretary of

the Treasury. After receiving a request

under this section, the Board will

provide the Secretary of the Treasury

with a copy of the request and consult

with the Secretary in accordance with

section 4(k)(2)(A) of the Bank Holding

Company Act (12 U.S.C. 1843(k)(2)(A)).

(iii) Board action on requests. After

consultation with the Secretary, the

Board will promptly make a written

determination regarding whether the

specific activity described in the request

is included in an activity category listed

in paragraph (e)(1) of this section and is

therefore either financial in nature or

incidental to a financial activity.

(3) What factors will the Board

consider? In evaluating a request made

under this section, the Board will take

into account the factors listed in section

4(k)(3) of the BHC Act (12 U.S.C.

1843(k)(3)) that it must consider when

determining whether an activity is

financial in nature or incidental to a

financial activity.

(4) What information must the request

contain? Any request by a financial

holding company under this section

must be in writing and must:

(i) Identify and define the activity for

which the determination is sought,

specifically describing what the activity

would involve and how the activity

would be conducted; and

(ii) Provide information supporting

the requested determination, including

information regarding how the proposed

activity falls into one of the categories

listed in paragraph (e)(1) of this section,

and any other information required by

the Board concerning the proposed

activity.

By order of the Board of Governors of the

Federal Reserve System.

Dated: December 27, 2000.

Jennifer J. Johnson,

Secretary of the Board.

Department of the Treasury

12 CFR Chapter XV

Authority and Issuance

For the reasons set forth in the

preamble, the Department of the

Treasury amends Part 1501 to Chapter

XV of Title 12, to read as follows:

PART 1501—FINANCIAL

SUBSIDIARIES

1. The authority citation for part 1501

continues to read as follows:

Authority: Section 5136A of the Revised

Statutes (12 U.S.C. 24a).

2. Section 1501.2 is redesignated as

§ 1501.3.

3. A new § 1501.2 is added to read as

follows:

§ 1501.2 What activities has the Secretary

determined to be financial in nature or

incidental to a financial activity?

(a) Activities permitted under section

5136A(b)(3) of the Revised Statutes (12

U.S.C. 24a(b)(3)).

(1) The following types of activities

are financial in nature or incidental to

a financial activity when conducted

pursuant to a determination by the

Secretary under paragraph (a)(2) of this

section:

(i) Lending, exchanging, transferring,

investing for others, or safeguarding

financial assets other than money or

securities;

(ii) Providing any device or other

instrumentality for transferring money

or other financial assets; and

(iii) Arranging, effecting, or

facilitating financial transactions for the

account of third parties.

Federal Register / Vol. 66, No. 2 / Wednesday, January 3, 2001 / Rules and Regulations 261

(2) Review of specific activities.

(i) Is a specific request required? A

financial subsidiary that wishes to

engage on the basis of paragraph (a)(1)

of this section in an activity that is not

otherwise permissible for a financial

subsidiary must obtain a determination

from the Secretary that the activity is

permitted under paragraph (a)(1).

(ii) Consultation with the Board of

Governors of the Federal Reserve

System. After receiving a request under

this section, the Secretary will provide

the Board of Governors of the Federal

Reserve System (Board) with a copy of

the request and consult with the Board

in accordance with section

5136A(b)(1)(B)(i) of the Revised Statutes

(12 U.S.C. 24a(b)(1)(B)(i)).

(iii) Secretary action on requests.

After consultation with the Board, the

Secretary will promptly make a written

determination regarding whether the

specific activity described in the request

is included in an activity category listed

in paragraph (a)(1) of this section and is

therefore either financial in nature or

incidental to a financial activity.

(3) What factors will the Secretary

consider? In evaluating a request made

under this section, the Secretary will

take into account the factors listed in

section 5136A(b)(2) of the Revised

Statutes (12 U.S.C. 24a(b)(2)) that the

Secretary must consider when

determining whether an activity is

financial in nature or incidental to a

financial activity.

(4) What information must the request

contain? Any request by financial

subsidiary under this section must be in

writing and must:

(i) Identify and define the activity for

which the determination is sought,

specifically describing what the activity

would involve and how the activity

would be conducted; and

(ii) Provide information supporting

the requested determination, including

information regarding how the proposed

activity falls into one of the categories

listed in paragraph (a)(1) of this section,

and any other information required by

the Secretary concerning the proposed

activity.

(b) [Reserved]

Dated: December 27, 2000.

Gregory A. Baer,

Assistant Secretary for Financial Institutions,

Department of the Treasury.

[FR Doc. 01–42 Filed 1–2–01; 8:45 am]

BILLING CODE 6210–10–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 25

[Docket No. NM181; Special Conditions No.

25–171–SC]

Special Conditions: Dassault Aviation

Mystere-Falcon 50; High-Intensity

Radiated Fields (HIRF)

AGENCY: Federal Aviation

Administration (FAA), DOT.

ACTION: Final special conditions; request

for comments.

SUMMARY: These special conditions are

issued for Dassault Aviation MystereFalcon 50 airplanes modified by Garrett

Aviation Services. These modified

airplanes will have a novel or unusual

design feature when compared to the

state of technology envisioned in the

airworthiness standards for transport

category airplanes. The modification

incorporates the installation of dual

attitude heading reference systems that

perform critical functions. The

applicable airworthiness regulations do

not contain adequate or appropriate

safety standards for the protection of

these systems from the effects of highintensity-radiated fields (HIRF). These

special conditions contain the

additional safety standards that the

Administrator considers necessary to

establish a level of safety equivalent to

that established by the existing

airworthiness standards.

DATES: The effective date of these

special conditions is December 20,

2000. Comments must be received on or

before February 2, 2001.

ADDRESSES: Comments on these special

conditions may be mailed in duplicate

to: Federal Aviation Administration,

Transport Airplane Directorate,

Attention: Rules Docket (ANM–114),

Docket No. NM181, 1601 Lind Avenue

SW., Renton, Washington 98055–4056;

or delivered in duplicate to the

Transport Airplane Directorate at the

above address. All comments must be

marked: Docket No. NM181. Comments

may be inspected in the Rules Docket

weekdays, except Federal holidays,

between 7:30 a.m. and 4:00 p.m.

FOR FURTHER INFORMATION CONTACT:

Meghan Gordon, FAA, Standardization

Branch, ANM–113, Transport Airplane

Directorate, Aircraft Certification

Service, 1601 Lind Avenue SW.,

Renton, Washington 98055–4056;

telephone (425) 227–2138; facsimile

(425) 227–1149.

SUPPLEMENTARY INFORMATION:

Comments Invited

The FAA has determined that good

cause exists for making these special

conditions effective upon issuance;

however, interested persons are invited

to submit such written data, views, or

arguments, as they may desire.

Communications should identify the

regulatory docket number and be

submitted in duplicate to the address

specified above. The Administrator will

consider all communications received

on or before the closing date for

comments. These special conditions

may be changed in light of the

comments received. All comments

received will be available in the Rules

Docket for examination by interested

persons, both before and after the

closing date for comments. A report

summarizing each substantive public

contact with FAA personnel concerning

this rulemaking will be filed in the

docket. Commenters wishing the FAA to

acknowledge receipt of their comments

submitted in response to these special

conditions must include a selfaddressed, stamped postcard on which

the following statement is made:

‘‘Comments to Docket No. NM181.’’ The

postcard will be date stamped and

returned to the commenter.

Background

On November 1, 2000, Garrett

Aviation Services, 1200 North Airport

Drive Capital Airport, Springfield, IL,

applied for a Supplemental Type

Certificate (STC) to modify Dassault

Aviation Mystere-Falcon 50 airplanes.

The Model Falcon 50 is a small

transport category airplane, powered by

three AlliedSignal Model TFE 731–3–1C

turbofans with a maximum takeoff

weight of 38,800 pounds. This airplane

operates with a 2-pilot crew and can

hold up to 19 passengers. The

modification incorporates the

installation of dual Collins AHS–3000

Attitude Heading Reference Systems.

The AHS–3000 is a replacement for the

existing electro-mechanical vertical and

directional gyro’s, while also providing

additional functional capability and

redundance in the system. The avionics/

electronics and electrical systems

installed in this airplane have the

potential to be vulnerable to highintensity radiated fields (HIRF) external

to the airplane.

Type Certification Basis

Under the provisions of 14 CFR

21.101, Garrett Aviation Services must

show that the Dassault Aviation

Mystere-Falcon 50 airplanes, as

changed, continue to meet the

applicable provisions of the regulations