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Federal Register / Vol. 79, No. 34 / Thursday, February 20, 2014 / Proposed Rules
narrower definition of ‘‘creditor’’ would
not have to comply with the
requirements of the Red Flags rule.
However, small entity financial
institutions would still be required to
comply with the Red Flags rule,
regardless of whether they meet the
revised definition of creditor.
4. Other federal rules. The Board has
not identified any federal statutes or
regulations that would duplicate,
overlap, or conflict with the proposed
revision.
5. Significant alternatives to the
proposed revisions. The proposed
revisions to the definition of ‘‘creditor’’
and the cross-reference to the definition
of a ‘‘notice of address discrepancy’’
reflect statutory changes. The Board
does not believe there are significant
alternatives to these revisions. Although
the Board has authority to determine
through a rulemaking that any other
creditor that offers or maintains
accounts that are subject to a reasonably
foreseeable risk of identity theft is
subject to the Red Flags rule, the Board
does not believe it is appropriate to use
its discretionary rulemaking authority at
this time.
III. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act (PRA) of 1995 (44 U.S.C.
3506; 5 CFR part 1320 Appendix A.1),
the Board reviewed the rule under the
authority delegated to the Federal
Reserve by the Office of Management
and Budget (OMB). The proposed rule
contains no requirements subject to the
PRA.
List of Subjects in 12 CFR Part 222

Authority and Issuance
For the reasons set forth in the
preamble, the Board proposes to amend
Regulation V, 12 CFR part 222, as set
forth below:
PART 222—FAIR CREDIT REPORTING
(REGULATION V)
1. The authority citation for part 222
continues to read as follows:

tkelley on DSK3SPTVN1PROD with PROPOSALS

■

Authority 5 U.S.C. 1681b, 1681c, 1681m
and 1681s; Secs. 3, 214, and 216, Pub. L.
108–159, 117 Stat. 1952.

2. Amend § 222.90 by revising
paragraph (b)(5) to read as follows:

■

§ 222.90 Duties regarding the detection,
prevention, and mitigation of identity theft.

*
*
(b) * * *

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*

*

17:08 Feb 19, 2014

Appendix J to Part 222—Interagency
Guidelines on Identity Theft Detection,
Prevention, and Mitigation
*

*

*

*

*

Supplement A to Appendix J

*

*
*
*
*
3. A consumer reporting agency
provides a notice of address
discrepancy, as defined in 12 CFR
1022.82(b).
*
*
*
*
*

■

By order of the Board of Governors of the
Federal Reserve System, February 10, 2014.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2014–03264 Filed 2–19–14; 8:45 am]
BILLING CODE P

FEDERAL RESERVE SYSTEM
12 CFR Part 230
[Docket No. R–1482]
RIN 7100 AE12

Truth in Savings (Regulation DD)
Board of Governors of the
Federal Reserve System.
ACTION: Notice of proposed rulemaking;
request for public comment.
AGENCY:

The Board of Governors of the
Federal Reserve System (Board) is
proposing to repeal its Regulation DD,
12 CFR part 230, which was issued to
implement the Truth in Saving Act
(TISA). Title X of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act (Dodd-Frank Act) transferred
rulemaking authority for a number of
consumer financial protection laws,
including TISA, from the Board to the
Bureau of Consumer Financial
Protection (Bureau). In December 2011,
the Bureau published an interim final
rule establishing its own Regulation DD
to implement TISA (Bureau Interim
Final Rule).1 The Bureau Interim Final
Rule substantially duplicates the
Board’s Regulation DD. Credit unions
are not subject to either the Board’s or
Bureau’s Regulation DD, and are
covered instead by a substantially
identical regulation issued by the

SUMMARY:

Banks, banking, Consumer protection,
Holding companies, Safety and
soundness, and State member banks.

*

(5) Creditor has the same meaning as
in 15 U.S.C. 1681m(e)(4).
*
*
*
*
*
■ 3. Amend Supplement A to Appendix
J by revising example 3. to read as
follows:

1 12 CFR part 1030. See 76 FR 79276 (Dec. 21,
2011).

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9647

National Credit Union Administration
(NCUA) pursuant to 12 U.S.C. 4311.
Under section 1029 of the Dodd-Frank
Act, the Board retains authority to issue
rules for certain motor vehicle dealers
that offer consumer financial services
and are not subject to the Bureau’s
regulatory authority. The Board is not
aware of any entities that are motor
vehicle dealers engaging in activities
subject to TISA that would be subject to
the Board’s authority under section
1029 of the Dodd-Frank Act.
Accordingly, the Board is proposing to
repeal its Regulation DD.
DATES: Comments must be received on
or before April 21, 2014.
ADDRESSES: You may submit comments,
identified by Docket No. R–1482, 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.
• Email: regs.comments@
federalreserve.gov. Include the docket
number in the subject line of the
message.
• FAX: (202) 452–3819 or (202) 452–
3102.
• Mail: Robert deV. Frierson,
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 form in Room MP–500 of the
Board’s Martin Building (20th and C
Streets NW.) between 9:00 a.m. and 5:00
p.m. on weekdays.
FOR FURTHER INFORMATION CONTACT:
Vivian W. Wong, Counsel, Division of
Consumer and Community Affairs, at
(202) 452–3667, Board of Governors of
the Federal Reserve System, 20th and C
Streets NW., Washington, DC 20551. For
users of Telecommunications Device for
the Deaf (TDD) only, contact (202) 263–
4869.
SUPPLEMENTARY INFORMATION:
I. Background
The Truth in Savings Act (TISA), 12
U.S.C. 4301 et seq., historically has been
implemented by the Board’s Regulation
DD, published at 12 CFR part 230. The

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Federal Register / Vol. 79, No. 34 / Thursday, February 20, 2014 / Proposed Rules

tkelley on DSK3SPTVN1PROD with PROPOSALS

purpose of the act and regulation is to
assist consumers in comparing deposit
accounts offered by depository
institutions, principally through the
disclosure of fees, the annual percentage
yield, the interest rate, and other
account terms. An official staff
commentary interprets the requirements
of the Board’s Regulation DD (12 CFR
part 230 (Supp. I)). Credit unions are
governed by a substantially similar
regulation issued by the NCUA at 12
CFR part 707.
Title X of the Dodd-Frank Act
transferred rulemaking authority for a
number of consumer financial
protection laws from the Board to the
Bureau, effective July 21, 2011. In
connection with the transfer of the
Board’s rulemaking authority for TISA,
the Bureau published an interim final
rule to establish its own Regulation DD,
12 CFR part 1030, to implement TISA
(Bureau Interim Final Rule).2 The
Bureau Interim Final Rule substantially
duplicated the Board’s Regulation DD
and made only certain non-substantive,
technical, formatting, and stylistic
changes. The Bureau Interim Final Rule
did not impose any new substantive
obligations on regulated entities.
Under section 1029(a) of the DoddFrank Act, the Bureau may not exercise
any rulemaking, supervisory,
enforcement or any other authority over
a motor vehicle dealer that is
predominantly engaged in the sale and
servicing of motor vehicles, the leasing
and servicing of motor vehicles, or both,
subject to certain exceptions.3 Section
1029(c) of the Dodd-Frank Act further
provides that nothing in the Dodd-Frank
2 76 FR 79276 (Dec. 21, 2011). Section 1100B of
the Dodd-Frank Act did not grant the Bureau TISA
rulemaking authority over credit unions or repeal
the NCUA’s TISA rulemaking authority over credit
unions under 12 U.S.C. 4311.
3 Section 1029(a) of the Dodd-Frank Act states:
‘‘Except as permitted in subsection (b), the Bureau
may not exercise any rulemaking, supervisory,
enforcement, or any other authority . . . over a
motor vehicle dealer that is predominantly engaged
in the sale and servicing of motor vehicles, the
leasing and servicing of motor vehicles, or both.’’
12 U.S.C. 5519(a). Section 1029(b) of the DoddFrank Act states: ‘‘Subsection (a) shall not apply to
any person, to the extent such person (1) provides
consumers with any services related to residential
or commercial mortgages or self-financing
transaction involving real property; (2) operates a
line of business (A) that involves the extension of
retail credit or retail leases involving motor
vehicles; and (B) in which (i) the extension of retail
credit or retail leases are provided directly to
consumers and (ii) the contract governing such
extension of retail credit or retail leases is not
routinely assigned to an unaffiliated third party
finance or leasing source; or (3) offers or provides
a consumer financial product or service not
involving or related to the sale, financing, leasing,
rental, repair, refurbishment, maintenance, or other
servicing of motor vehicles, motor vehicle parts, or
any related or ancillary product or service.’’ 12
U.S.C. 5519(b).

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Act should be construed to modify,
limit, or supersede the authority of the
Board with respect to a motor vehicle
dealer described in section 1029(a) of
the Dodd-Frank Act.4 Accordingly, to
the extent that a motor vehicle dealer
described in section 1029(a) of the
Dodd-Frank Act was subject to one of
the Board’s consumer financial service
regulations, the Board’s regulation
would continue to apply.
II. Statutory Authority
As noted above, Title X of the DoddFrank Act transferred rulemaking
authority for TISA from the Board to the
Bureau, effective July 21, 2011. Pursuant
to Section 1029 of the Dodd-Frank Act,
however, the Board retains rulemaking
authority for consumer financial
protection laws to the extent that such
laws could cover motor vehicle dealers
identified in Section 1029(a) of the
Dodd-Frank Act.
III. Discussion
TISA and the Board’s Regulation DD
apply only to depository institutions.
See 12 U.S.C. 4301; 12 CFR 230.1(c). For
this purpose, the term ‘‘depository
institution’’ includes ‘‘an institution
defined in Section 19(b)(1)(A)(i) through
(vi) of the Federal Reserve Act (12
U.S.C. 461), except credit unions
defined in Section 19(b)(1)(A)(iv).’’ 12
U.S.C. 4313(6); 12 CFR 230.2(j).
Depository institutions are generally
subject to restrictions on the types of
activities in which they may engage as
principal. See e.g., 12 U.S.C. 24
(Seventh) and 12 U.S.C. 1831a. These
activities are restricted to those that are
necessary to carry on the business of
banking and other limited financial
activities. Based on these restrictions,
the Board believes that motor vehicle
dealers, as defined in Section 1029(a) of
the Dodd-Frank Act, that are
predominantly engaged in the sale and
servicing of motor vehicles, the leasing
and servicing of motor vehicles, or both,
could not also be depository institutions
subject to TISA. Consequently, the
Board is publishing a proposed rule for
public comment to repeal the Board’s
Regulation DD, 12 CFR part 230. The
Board, requests comment, however, on
whether any motor vehicle dealers
identified in Section 1029(a) of the
Dodd-Frank Act are or could become
depository institutions for purposes of
TISA.
IV. Initial Regulatory Flexibility
Analysis
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) (RFA) generally
4 12

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requires an agency to perform an
assessment of the impact a rule is
expected to have on small entities.
Based on its analysis, and for the
reasons stated below, the Board believes
that this proposed rule will not have a
significant economic impact on a
substantial number of small entities. A
final regulatory flexibility analysis will
be conducted after consideration of
comments received during the public
comment period.
1. Statement of the need for, and
objectives of, the proposed rule. Title X
of the Dodd-Frank Act transferred
rulemaking authority for a number of
consumer financial protection laws from
the Board to the Bureau, effective July
21, 2011, including TISA. The Bureau
issued the Bureau Interim Final Rule to
implement TISA in connection with the
transfer of TISA rulemaking authority to
the Bureau. Pursuant to Section 1029 of
the Dodd-Frank Act, however, the Board
retains rulemaking authority for
consumer financial protection laws to
the extent that such laws could cover
motor vehicle dealers identified in
Section 1029(a) of the Dodd-Frank Act.
The Board does not believe that any
motor vehicle dealers identified in
Section 1029(a) of the Dodd-Frank Act
are or could become depository
institutions subject to TISA.
Consequently, the Board is proposing to
repeal the Board’s Regulation DD, 12
CFR part 230.
2. Small entities affected by the
proposed rule. The Board does not
believe that any motor vehicle dealers
identified in Section 1029(a) of the
Dodd-Frank Act are or could become
depository institutions subject to TISA.
Therefore, the Board believes the
proposed rule would not affect any
entity, including any small entity.
3. Recordkeeping, reporting, and
compliance requirements. The proposed
rule would repeal the Board’s
Regulation DD, 12 CFR part 230, and
would therefore not impose any
recordkeeping, reporting, or compliance
requirements on any entities.
4. Other federal rules. The Board has
not identified any federal rules that
duplicate, overlap, or conflict with the
proposed repeal of the Board’s
Regulation DD, 12 CFR part 230.
5. Significant alternatives to the
proposed revisions. The Board is not
aware of any significant alternatives that
would further minimize any significant
economic impact of the proposed rule
on small entities, but solicits comment
on this approach.
V. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act (PRA) of 1995 (44 U.S.C.

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Federal Register / Vol. 79, No. 34 / Thursday, February 20, 2014 / Proposed Rules
3506; 5 CFR part 1320 Appendix A.1),
the Board reviewed the rule under the
authority delegated to the Federal
Reserve by the Office of Management
and Budget (OMB). The proposed rule
contains no collections of information
under the PRA. See 44 U.S.C. 3502(3).
Accordingly, there is no paperwork
burden associated with the proposed
rule.
List of Subjects in 12 CFR Part 230
Advertising, Banks, Banking,
Consumer protection, Reporting and
recordkeeping requirements, Truth in
savings.
Authority and Issuance
PART 230—[REMOVED AND
RESERVED]
For the reasons set forth in the
preamble, under the authority of 12
U.S.C. 5581, the Board proposes to
remove and reserve Regulation DD, 12
CFR part 230.
By order of the Board of Governors of the
Federal Reserve System, February 10, 2014.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2014–03266 Filed 2–19–14; 8:45 am]
BILLING CODE P

FARM CREDIT ADMINISTRATION
12 CFR Part 612
RIN 3052–AC44

Standards of Conduct and Referral of
Known or Suspected Criminal
Violations; Standards of Conduct
Farm Credit Administration.
Proposed rule.

AGENCY:
ACTION:

The Farm Credit
Administration (FCA, we, or our)
proposes to amend its regulations
governing standards of conduct of
directors, employees, and agents of
Farm Credit System (System)
institutions, excluding the Federal
Agricultural Mortgage Corporation. The
amendments would clarify and
strengthen reporting requirements and
prohibitions, require institutions to
establish a Code of Ethics, and enhance
the role of the Standards of Conduct
Official.

tkelley on DSK3SPTVN1PROD with PROPOSALS

SUMMARY:

You may send comments on or
before May 21, 2014.
ADDRESSES: We offer a variety of
methods for you to submit your
comments. For accuracy and efficiency
reasons, commenters are encouraged to
submit comments by email or through
the FCA’s Web site. As facsimiles (fax)
DATES:

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17:08 Feb 19, 2014

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are difficult for us to process and
achieve compliance with section 508 of
the Rehabilitation Act, we are no longer
accepting comments submitted by fax.
Regardless of the method you use,
please do not submit your comment
multiple times via different methods.
You may submit comments by any of
the following methods:
• Email: Send us an email at regcomm@fca.gov.
• FCA Web site: http://www.fca.gov.
Select ‘‘Public Commenters,’’ then
‘‘Public Comments’’ and follow the
directions for ‘‘Submitting a Comment.’’
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Barry F. Mardock, Deputy
Director, Office of Regulatory Policy,
Farm Credit Administration, 1501 Farm
Credit Drive, McLean, Virginia 22102–
5090.
You may review copies of comments
we receive at our office in McLean,
Virginia, or from our Web site at http://
www.fca.gov. Once you are in the Web
site, select ‘‘Public Commenters,’’ then
‘‘Public Comments’’ and follow the
directions for ‘‘Reading Submitted
Public Comments.’’ We will show your
comments as submitted but, for
technical reasons, we may omit items
such as logos and special characters.
Identifying information that you
provide, such as phone numbers and
addresses, will be publicly available.
However, we will attempt to remove
email addresses to help reduce Internet
spam.
FOR FURTHER INFORMATION CONTACT:
Jacqueline R. Melvin, Policy Analyst,
Office of Regulatory Policy, Farm
Credit Administration, McLean, VA
22102–5090, (703) 883–4498, TDD
(703) 883–4056,
or
Mary Alice Donner, Senior Counsel,
Office of General Counsel, Farm
Credit Administration, McLean, VA
22102–5090, (703) 883–4020, TDD
(703) 883–4056.
SUPPLEMENTARY INFORMATION:
I. Objectives
The objectives of this proposed rule
are to:
• Clarify and strengthen the
regulations in part 612, subpart A,
regarding standards of conduct;
• Modify definitions;
• Clarify reporting requirements and
prohibitions on the purchase of System
institution acquired property and
lending transactions;
• Strengthen responsibility and
accountability requirements for System
institution Standards of Conduct

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Officials, boards of directors (or board),
employees, and agents; and
• Require each System institution to
adopt a Code of Ethics.
The FCA has not made significant
changes to its standards of conduct
regulations since 1994, and we have
determined that it is appropriate to
strengthen and modernize the rule. The
proposed rule would add new
provisions, clarify and augment some of
the current provisions and provide
additional flexibility for others. The
proposed rule is organized differently
from the current rule. Sections on
director and employee reporting and
prohibited conduct are repositioned to
improve the logical flow of the rule. The
proposed rule adds a new § 612.2136 on
conflicts of interest, a new § 612.2165(a)
on Code of Ethics, a new § 612.2165(c)
on allowing exceptions to certain rules
if no conflict of interest exists, and new
requirements in § 612.2180 addressing
standards of conduct for agents. It also
adds new standards of conduct
responsibilities to System institutions
(proposed § 612.2160) and to the
Standards of Conduct Official (proposed
§ 612.2170). We solicit comments on our
proposed amendments.
II. Section-by-Section Analysis
A. Definitions [§ 612.2130]
The proposed rule would have some
new and some modified definitions:
Code of Ethics. The proposed rule
would define ‘‘Code of Ethics’’ as a
written set of standards, rules, values,
and guidance that an institution uses to
ensure the ethical conduct of those who
sign it, and that reflects professionalism
and discourages misconduct so the best
interests of the institution are advanced.
Controlled entity and entity controlled
by. The proposed rule would continue
to provide that a controlled entity
includes an interest in an entity in
which the individual, directly or
indirectly or acting through or in
concert with one or more persons, owns
5 percent or more of the equity of the
entity; owns, controls, or has the power
to vote 5 percent or more of any class
of voting securities of the entity; or has
the power to exercise a controlling
influence over the management of the
entity. The FCA is aware that in other
contexts the definition of ‘‘controlled
entity’’ or ‘‘entity controlled by’’ may
mean having an ownership interest with
a greater threshold than 5 percent;
however, the purpose of this rule is to
ensure that institution directors and
employees are completely objective in
their decision-making, and are not in
any way influenced by personal
interests. The FCA believes that a

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