The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF NEW YORK [ Circular No. 10577 September 2 8 ,1 9 9 2 "1 J REDUCTIONS IN REGULATORY BURDEN FOR BANKING APPLICATIONS — Newspaper Publication Requirements — Transactions with Affiliates To A ll Bank Holding Companies, and Others Concerned, in Second Federal Reserve District: Effective October 13, 1992, the Board of Governors of the Federal Reserve System has reduced, from two to one, the number of newspaper notices required to be published for applications involving membership in the Federal Reserve System, establishment of branches of State member banks, bank mergers, bank holding company formations, and the acquisition of a bank by a bank holding company. Effective September 11, 1992, the Board of Governors also adopted a rule to exclude from section 23A of the Federal Reserve Act transactions between affiliated insured depository institutions that are subject to review under the Bank Merger Act. The exclusion is intended to eliminate the need for duplicative Federal filings. Enclosed, for bank holding companies and others who maintain sets of the Board’s regulations, is an excerpt from the Federal Register of September 11, containing the texts of the Board’s official notices of these actions. Additional, single copies may be obtained at this Bank (33 Liberty Street) from the Issues Division on the first floor, or by calling our Circulars Division (Tel. No. 212-720-5215 or 5216). Questions on these matters may be directed to Jay Bernstein, Staff Director of our Domestic Banking Applications Division (Tel. No. 212-720-5861). E. G e r a l d C o r r ig a n , President. Friday September 11, 1992 Vol. 57, No. 177 Pp. 41641-41644 Amendments to Regulation Y, Rules of Procedure, and Miscellaneous Interpretations 1. Newspaper Publication Requirements (Docket No. R-0760) Effective October 13, 1992 2. Transactions with Affiliates (Docket No. R-0762) Effective September 11, 1992 41641 Rules and Regulations Federal Register Vol. 57, N o. 177 Friday, S eptem ber 11, 1992 The Board sought comment on whether the action would have a serious adverse effect on actual notice of applications and on the opportunity for public comment. The Board also requested comment on the benefits that reducing the publication burden would have compared to the reduction in required newspaper notice. The Board received 17 public comments regarding this proposal. All except two of the commenters support the Board’s 552(a)(1)) requires each agency to proposal to reduce the number of publish in the Federal Register statements that include requirements of newspaper publications. Twelve of the commenters, all bank holding all formal and informal procedures companies, believe that the proposal available and its rules of procedure. In would reduce the costs and paperwork order to fulfill this requirement, the burden associated with applications that Board has adopted Rules of Procedure (12 CFR part 262). are subject to the newspaper publication Currently, § 262.3(b)(1) of these Rules requirement.1 These commenters also requires an applicant to publish notice believe that the reduction of the of the following types of applications newspaper publication requirement "on the same day of each of two would not interfere with the public’s consecutive weeks” in a newspaper of ability to submit timely comments with general circulation: respect to a proposed application since alternative sources of notice such as the (i) Application by a state bank for Federal Register and lists of pending membership in the Federal Reserve applications prepared by the Board and System; the Reserve Banks are available. (ii) Application by a State member Two commenters opposed the bank to establish a domestic branch; proposal. Both commenters believe that (iii) Application by a State member the proposed reduction in the bank for the relocation of a domestic newspaper publication requirement branch office; (iv) Application by a bank for merger, would decrease the likelihood that the consolidation, or acquisition of assets or newspaper notice will reach the public assumption of liabilities, if the acquiring, making it more difficult for community groups to file comments, and would assuming, or resulting bank is to be a provide little cost savings to applicants. State member bank; These commenters noted that because (v) Application by a company to of cost constraints, very few community become a bank holding company; and groups subscribe to the Federal Register. (vi) Application by a bank holding The commenters also indicate that the company to acquire ownership or control of shares or assets of a bank, or additional newspaper publication requirement would counteract any to merge or consolidate with any other inaccuracies or omissions that may be bank holding company. In July of this year, the Board invited contained in the Federal Reserve public comment on a proposal to amend publications. § 262.3(b)(1) of its Rules and a related Newspaper notice is statutorily policy statement regarding notice of required for applications filed pursuant applications (12 CFR 262.25) to reduce to the Bank Merger Act. For applications the newspaper publication requirement filed pursuant to section 9 of the Federal from twice to once. These revisions Reserve Act (to establish branch offices or for membership in the Federal would reduce one regulatory burden associated with the filing of applications Reserve System) or section 3 of the BHC Act (to form a bank holding company or by reducing the newspaper publication costs and paperwork burden associated for a bank holding company to acquire a with applications that are subject to the bank), for which no statutory notice is publication requirement. The Board also required, newspaper notice has been proposed parallel amendments to § provided as a matter of policy in order 225.14(b) of its Regulation Y (12 CFR part 225) to conform this provision with 1 Three Reserve Banks and one trade association also commented in favor of the proposal. the revised notice requirements. This section of the FEDERAL REGISTER Division of Banking Supervision and contains regulatory documents having Regulation, Board of Governors of the general applicability and legal effect most Federal Reserve System. For the hearing of which are keyed to and codified In impaired only, Telecommunication the Code of Federal Regulations, which is Device for the Deaf (TDD), Dorothea published under 50 titles pursuant to 44 Thompson (202/452-3544); Board of U.S.C. 1510. Governors of the Federal Reserve The Code of Federal Regulations is sold System, 20th and C Streets, NW., by the Superintendent of Documents. Washington, DC 20551. Prices of new books are listed in the first FEDERAL REGISTER issue of each SUPPLEMENTARY INFORMATION: The week. Administrative Procedure Act (5 U.S.C. FEDERAL RESERVE SYSTEM 12 CFR Parts 225 and 262 [Regulation Y; Docket No. R-0760] Bank Holding Companies and Change in Bank Control; Rules of Procedure a g e n c y : Board of Governors of the Federal Reserve System. ACTION: Final rule. s u m m a r y : The Board has revised the provisions of its Rules of Procedure (Rules) and the Board’s Regulation Y, Bank Holding Companies and Change in Bank Control. Section 262.3(b) of the Rules requires applicants to publish two newspaper notices of applications filed with the Federal Reserve under section 9 of the Federal Reserve Act (for membership or to establish branches), the Bank Merger Act (if a state member bank is involved), and the Bank Holding Company Act (BHC Act) (to form a bank holding company or for a bank holding company to acquire a bank). These revisions would reduce from twice to once the number of times notice of an application must be published in a newspaper. The amendments would have no effect on public comment periods, which currently start when the first notice is published. Alternative sources of notice will continue to be available, such as the weekly list of pending applications prepared by the Board and the Reserve Banks and, in the case of BHC Act applications, notices published in the Federal Register. EFFECTIVE DATE: October 13,1992. FOR FURTHER INFORMATION CONTACT: Scott G. Alvarez, Associate General Counsel (202/452-3583), Oliver I. Ireland, Associate General Counsel (202/4523625), or Deborah M. Awai, Attorney (202/452-3594), Legal Division; Sidney M. Sussan, Assistant Director (202/4522638), or Gary P. Knoblach, Senior Financial Analyst (202/452-3270), 41642 Federal Register / V ol. 57, No. 177 / Friday, September 11, 1992 / Rules and Regulations to permit commenters an opportunity to provide the Board with additional information useful to the Board’s evaluation of a pending proposal.2 Publication in the Federal Register has been the primary means of notice used by the Board to inform the public of pending proposals. The Board believes that a reduction from two to one of the newspaper notice requirement would reduce burden on applicants without significantly reducing the effectiveness of the notice given to the public. In addition to the remaining notice of publication in the newspaper, the public would continue to be made aware of pending applications through various other sources, including public announcement by the applicant (often well in advance of the actual regulatory filing] and weekly publications by both the Board and each Reserve Bank which list, at a minimum, the applications received involving banking organizations in the respective jurisdictions. The Board believes that the retention of at least one newspaper publication requirement is an effective way to notify those members of the general public that may wish to comment on a proposed transaction, and for commenters who may not have access todhe Federal Register or the weekly publications by both the Board and the Reserve Banks which list pending applications. T h e fin a l ru le w o u ld not r e d u c e th e a m o u n t o f tim e th a t i n t e r e s t e d p e r s o n s w o u ld h a v e to p r o v id e c o m m e n t s to th e B o a rd . T h a t p e r io d w o u ld c o n t in u e to b e 3 0 d a y s in g e n e r a l. In a d d itio n , th e fin a l r u le w o u ld r e ta in th e r e q u ir e m e n t th a t n e w s p a p e r n o t ic e m u s t a p p e a r n o m o r e th a n n in e t y c a le n d a r d a y s p r io r to a c c e p t a n c e o f a n a p p lic a t io n . T h is r e q u ir e m e n t h e lp s to a s s u r e th a t th e n o t ic e is tim e ly . Following review of the comments, the Board believes that the elimination of one newspaper publication requirement would not unduly interfere with the ability of the public to submit comments with respect to a proposed application. At the same time, the reduction in a newspaper publication notice would reduce the costs and * This proposal would reduce the number of times newspaper notice must be published for acquisitions of savings associations to coincide with the publication requirements for acquisitions of banks. Generally, the Board has not required newspaper publication for other proposals to acquire nonbanking interests or engage in nonbanking activities pursuant to section 4 of the BHC Act. As a matter of policy, the Board has required bank holding companies to publish notice in appropriate newspapers of any proposals to acquire savings associations pursuant to 12 CFR 225.25(b)(9). p a p e r w o r k b u r d e n to a p p lic a n t s a s s o c i a t e d w it h f ilin g s u c h a p p lic a t io n s . Regulatory Flexibility Act Analysis P u r s u a n t to s e c t i o n 6 0 5 ( b ) o f th e R e g u la to r y F le x i b i li t y A c t (P u b . L. 963 5 4 , 5 U .S .C . 6 0 1 et seq.), th e B o a r d d o e s n o t b e l i e v e th a t th e p r o p o s e d a m e n d m e n t s w o u ld h a v e a s ig n if ic a n t a d v e r s e e c o n o m ic im p a c t o n a s u b s t a n t ia l n u m b e r o f s m a ll e n t it ie s . T h e p r o p o s e d a m e n d m e n t s w o u ld r e d u c e c e r t a in r e g u la to r y b u r d e n s fo r a f f e c t e d d e p o s it o r y in s t it u t io n s , r e d u c e c e r t a in b u r d e n s fo r s m a ll d e p o s it o r y in s t it u t io n s , a n d h a v e n o p a r tic u la r a d v e r s e e f f e c t o n o th e r s m a ll e n t it ie s . Paperwork Reduction Act T h e B o a r d , a c t in g p u r s u a n t to a u th o r ity d e l e g a t e d to it b y th e D ir e c to r o f th e O f f ic e o f M a n a g e m e n t a n d B u d g e t u n d e r 4 4 U .S .C . 3 5 0 7 ( e ) , h a s a p p r o v e d th e c o ll e c t i o n o f in f o r m a t io n c a ll e d for b y p a r t 2 2 5 o f th e B o a r d ’s R u le s. List of Subjects 12 CFR P art 225 A d m in is t r a t iv e p r a c t ic e a n d p r o c e d u r e , B a n k s, b a n k in g , F e d e r a l R e s e r v e S y s t e m , H o ld in g c o m p a n ie s . R e p o r tin g a n d r e c o r d k e e p in g r e q u ir e m e n ts , S e c u r it ie s . 12 CFR Part 262 A d m in is t r a t iv e p r a c t ic e a n d p ro ced u re, F ed er a l R e se r v e S y stem . F o r th e r e a s o n s s e t fo r th in th e p r e a m b le , th e B o a r d a m e n d s title 1 2 o f th e C o d e o f F e d e r a l R e g u la t io n s , p a r ts 2 2 5 a n d 2 6 2 , a s f o llo w s : PART 225— BANK HOLDING COMPANIES AND CHANGE IN BANK CONTRO L 1. T h e a u th o r ity c it a t io n fo r p a rt 2 2 5 c o n t in u e s to r e a d a s fo llo w s : Authority: 12 U.S.C. 1817(j)(13), 1818, 1831(i), 1843(c)(8), 1844(b), 3100, 3108, 3907, 3909, 3310, and 3331-3351, and sec. 306 o f the F ederal D ep osit Insurance Corporation Im provem ent A ct o f 1991 (Pub. L. 102-242,105 Stat. 2236 (1991)). Subpart B— Acquisition of Bank Securities or Assets 2. S e c t io n 2 2 5 . 1 4 is a m e n d e d b y a d d in g a n e w p a r a g r a p h ( b ) (3 ) to r e a d a s f o llo w s : § 225.14 Procedures for applications, notices, and hearings. * * * * * (b ) * * * (3 ) Newspaper notice. T h e a p p lic a n t s h a ll c a u s e to b e p u b lis h e d in a n e w s p a p e r o f g e n e r a l c ir c u la tio n in th e a f f e c t e d c o m m u n ity , in th e form p r e s c r ib e d b y th e B o a r d in 1 2 C FR 2 6 2 .3 ( b ) , a t l e a s t o n e n o t ic e s o lic it in g p u b lic c o m m e n t o n th e p r o p o s e d a c q u is it io n . * * * * * PART 262— RULES OF PROCEDURE 1. T h e a u th o r ity c it a t io n fo r p a rt 2 6 2 c o n t in u e s to r e a d a s f o llo w s : Authority: 5 U.S.C. 552. 2. S e c t io n 2 6 2 .3 is a m e n d e d b y r e d e s ig n a t in g p a r a g r a p h s (b )(1 ) in tr o d u c to r y te x t, ( b ) ( l ) ( i ) th ro u g h (v i), a n d th e f lu s h t e x t b e g in n in g “ th e a p p lic a n t ” a n d e n d in g w it h “ th e B o a rd " a s p a r a g r a p h s ( b ) ( l ) ( i ) in tr o d u c to r y te x t, ( b ) ( l ) ( i ) ( A ) th r o u g h (F). a n d ( b ) ( l ) ( i ) c o n c lu d in g te x t, r e s p e c t iv e ly : b y r e m o v in g th e w o r d s " o n th e s a m e d a y o f e a c h o f t w o c o n s e c u t i v e w e e k s ” fro m th e n e w l y d e s i g n a t e d p a r a g r a p h ( b ) ( l ) ( i ) c o n c lu d in g text: b y d e s ig n a t in g th e te x t, f o l lo w in g n e w l y d e s i g n a t e d p a r a g r a p h ( b ) ( l ) ( i ) c o n c lu d in g te x t, w h ic h b e g in s w it h th e w o r d s “T h e n o t ic e s h a ll b e p l a c e d in th e c la s s i f ie d " a s p a r a g r a p h ( b ) ( l ) ( i i ) ; a n d b y r e v is in g th e first, s e c o n d a n d th ird s e n t e n c e s o f n e w l y d e s i g n a t e d p a r a g r a p h ( b ) ( l ) ( i i ) to r e a d a s f o llo w s : § 262.3 Applications. * * * * * (b ) * * * ( 1 ) 0 ) * * * • * * * * (ii) T h e n o t ic e s h a ll b e p l a c e d in th e c l a s s i f i e d a d v e r t is in g le g a l n o t i c e s s e c t i o n o f th e n e w s p a p e r , a n d m u st p r o v id e a n o p p o r tu n ity fo r th e p u b lic to g i v e w r it te n c o m m e n t o n th e a p p lic a t io n to th e a p p r o p r ia te F e d e r a l R e s e r v e B a n k fo r a t l e a s t th ir ty d a y s a fte r th e d a t e o f p u b lic a t io n . W ith in 7 d a y s o f p u b lic a t io n , th e a p p lic a n t s h a ll su b m it it s a p p lic a t io n to th e a p p r o p r ia te R e s e r v e B a n k fo r a c c e p t a n c e a lo n g w ith a c o p y o f th e n o t ic e . If th e R e s e r v e B a n k h a s n o t a c c e p t e d th e a p p lic a t io n a s c o m p le t e w it h in n in e t y d a y s o f th e d a te o f p u b lic a t io n o f th e n o t ic e , th e a p p lic a n t m a y b e r e q u ir e d to r e p u b lis h n o t i c e o f th e a p p lic a t io n . * * * * * * * * § 262.3 [Amended] 3. In § 2 6 2 .3 , p a r a g r a p h ( b )(2 ) is a m e n d e d b y r e m o v in g th e w o r d “first" in th e s e c o n d s e n t e n c e . §262.25 [Amended] 4. In § 2 6 2 .2 5 , p a r a g r a p h ( a )( 1 ) is a m e n d e d b y r e m o v in g th e w o r d "First" in th e fir s t s e n t e n c e . Federal Register / Vol. 57, No. 177 / Friday, September 11, 1992 / Rules and Regulations U.S.C. 1828(c)) for safety and soundness as well as competitive effects. Section 23A provides an exemption from the quantitative and collateral Secretary o f the Board. restrictions of the statute for [FR Doc. 92-21880 Filed 9-10-92; 8:45 am] transactions between banks affiliated in BtLUMO COOt U W -01 -F a bank holding company system (12 U.S.C. 371c(d)(l)).1 The Board also has not required a section 23A exemption to 12 CFR Part 250 transfer low-quality assets between affiliated banks in a merger or similar [Docket No. R-0762] asset acquisition transaction approved Transactions with Affiliates under the Bank Merger Act because of the review conducted under that statute a q e n c y : Board of Governors of the of the safety and soundness aspects of Federal Reserve System. the transaction. As a result, in such a c t io n : Final Rule. transactions, duplicative applications under the Bank Merger Act and section SUMMARY: The Board is adopting a rule 23A have been avoided. to exclude from section 23A of the Affiliated thrift institutions became Federal Reserve Act transactions subject to section 23A in 1989 as a result between affiliated insured depository of the enactment of F1RREA (12 U.S.C. institutions that are subject to the Bank 1468(a)(1)). While FIRREA applied Merger Act The exclusion would be section 23A to thrifts in the same available only for transactions that are manner as it applies to a member bank, approved by the appropriate federal FIRREA delayed until 1995 the ability of banking agency under the Bank Merger most thrifts to take advantage of the Act. The exemption would be available statutory exemption under section 23A by regulation, and transactions that for transactions between affiliated meet the proposed criteria will not institutions in a holding company require additional Board review under system (12 U.S.C. 1468(a)(2)).12* section 23A. The exclusion is intended Accordingly, before engaging in a to reduce unnecessary regulatory merger or similar asset acquisition burden by eliminating the need for transaction, affiliated thrifts have since duplicative federal applications. 1989 been required to obtain a specific EFFECTIVE DATE: September 11,1992. exemption from the Board under section 23A even though the thrifts also must FOR FURTHER INFORMATION CONTACT: Christopher J. Bellini, Attorney (202/452- obtain an approval from the acquiring institution's primary federal regulator 3269), Legal Division, Board of under the Bank Merger Act. Governors of the Federal Reserve Section 23A provides the Board with System. For the hearing impaired only, Telecommunications Device for the Deaf general authority to act by order or regulation to grant specific exemptions (TDD), Dorothea Thompson (202/4523544), Board of Governors of the Federal from its provisions for transactions that the Board determines are in the public Reserve System, 20th and C Streets, interest and consistent with the NW., Washington, DC 20551. purposes of the statute. In considering SUPPLEMENTARY INFORMATION: requests for exemptions, the Board has reviewed carefully the effect of the Background transaction on the safety and soundness Section 23A of the Federal Reserve of the institutions involved. The Act (12 U.S.C. 371c) governs the ability legislative history of FIRREA further of an insured depository institution to indicates that Congress intended this lend to or purchase assets of an affiliate. general exemptive authority to extend to Through its applicability to the purchase transactions involving affiliated thrifts of assets, section 23A covers a situation where an exemption is consistent with in which an insured depository the purposes of section 23A and with institution merges with, or purchases all prior Board exemptions. The Board has or substantially all of the assets of, an granted specific exemptions under affiliate insured depository institution, section 23A for affiliated thrifts involved unless one of the exemptions in section in merger transactions with the 23A applies or the Board uses its general authority to grant a case specific 1 To bo eligible for the exemption, the bank exemption. Merger and similar asset holding company must control at least 80 percent of the shares of the affiliated banks. acquisition transactions between 2 Thrifts in a bank holding company system are insured depository institutions are also eligible for the exemption if every thrift and bank subject to review and approval by the controlled by the holding company meet all primary federal banking or thrift applicable fully phased-in capital rules without authority under the Bank Merger Act (12 reliance on goodwill. By order of the Board of Governors of the Federal Reserve System, September 4 , 1992. William W. Wiles, 41643 concurrence of the primary federal regulator (the Office of Thrift Supervision) which had conducted a safety and soundness review of the transaction under the Bank Merger Act. In order to eliminate the need for these duplicative federal applications, the Board proposed to adopt an exemption from section 23A for transactions that are subject to review and approval under the Bank Merger Act.8 Specifically, the Board proposed to exempt the purchase by one insured depository institution of all or substantially all of the assets of an affiliated insured depository institution, or the merger or consolidation of such institutions, in a transaction in which only one of the institutions continues to operate. The Board did so in light of the fact that in reviewing the Bank Merger Act application for such transactions, the primary federal regulator would conduct the safety and soundness analysis that the Board undertakes in reviewing the section 23A request. Proposal as Adopted The Board has determined to adopt the regulation as proposed with a modification to address an issue raised by several commentors and supported by the Office of the Comptroller of the Currency. The Board has determined that the exemption from section 23A should be modified to include all transactions between affiliated insured depository institutions that have been approved by the appropriate federal banking agency under the Bank Merger Act. In this regard, the Board has deleted the restriction in its proposal stipulating that as a result of the transaction only one of the insured depository institutions must continue to operate. Response to Public Comments In response to its proposal, the Board received 15 public comments: 10 by holding companies, 2 by law firms, and one each by a depository institution, a corporation, and a trade association. All the commentors favor the exemption because it would reduce regulatory burden and legal and compliance costs by eliminating duplicative regulatory filings. The commentors maintain that the proposal would pose no risk to the safety and soundness of the institutions involved in the transaction, the banking system, or the deposit insurance system because of the existing requirement for prior regulatory review of the transaction under the Bank Merger Act. * 57 FR 28809. June 29.1992. 41644 Federal Register / Vol. 57, No. 177 / Friday, September 11, 1992 / Rules and Regulations Accordingly, the commentors feel the proposal is in the public interest. Seven of the commentors also contend that the Board’s reasoning supports broadening the proposal to include the other categories of merger or asset acquisition transactions that are subject to approval under the Bank Merger Act. These transactions are (1) the sale of a branch or a particular line of business by an insured depository institution to an affiliated insured depository institution,—a transaction in which both institutions continue to operate; and (2) a purchase of assets by an insured depository institution from a nonbank affiliate. In light of these comments and in order to further reduce unnecessary regulatory burden, the Board has modified the proposal to include all transactions between affiliated insured depository institutions that are subject to review and approval under the Bank Merger Act. The Board notes that in such transactions a prior safety and soundness review under the Bank Merger Act will be performed and that such transactions permit the more flexible movement of assets to promote improved allocative efficiency among affiliated insured depository institutions. The Board, however, has determined that transactions between an insured depository institution and a nonbank affiliate that are subject to the Bank Merger Act should not be automatically exempted from section 23A. The legislative history of section 23A and prior Board experience indicate that these transactions contain a greater potential for risk of loss to an insured depository institution and thus are appropriately subject to greater regulatory scrutiny. In this regard, certain of the 1982 amendments to section 23A were prompted by the adverse effect on banks that had resulted from transactions with their nonbank affiliates. Moreover, in analyzing prior section 23A requests, the Board has noted the potential adverse effect on an insured depository institution from such transactions and has granted exemptions only sparingly. Finally, an insured depository institution has no protection under FIRREA from losses incurred in transactions with its nonbank affiliates.4 Accordingly, the Board has determined that these transactions should continue to be reviewed under section 23A on a caseby-case basis. 4 The cross-guarantee provisions of FIRREA make insured depository institutions affiliated in holding company systems responsible for each others losses. 12 U.S.C. 1615(e). Other Comments Two commentors contend that the Board should include in the proposal all merger and asset acquisition transactions that are subject to approval by federal banking agencies under other federal statutes or regulations. The Board notes, however, that the factors or analysis that an agency considers under such statutes or regulations may be different from the factors or analysis considered under the Bank Merger Act or section 23A. Finally, a commentor contends that the exemption should apply to all purchases of assets between affiliated insured depository institutions provided that the insured depository institutions perform the safety and soundness analysis required under the Bank Merger Act. The Board believes that such an exemption would not be consistent with the purposes of section 23A or in the public interest because of the potential for abuse to an insured depository institution from affiliate transactions that do not receive prior regulatory review and exceed the thresholds established in section 23A. Accordingly, the Board has determined not to modify the exemption to include these other two categories of transactions. Final Regulatory Flexibility Act Analysis Pursuant to section 605(b) of the Regulatory Flexibility Act (Pub. L. 96354, 5 U.S.C. 601 et seq.), the Board does not believe that the interpretation would have a significant adverse economic impact on a substantial number of small entities. The interpretation would reduce regulatory burdens imposed by section 23A of the Federal Reserve Act and have no particular adverse effect on other entities. Effective Date The provisions of the Administrative Procedures Act (APA) (5 U.S.C. 553(d)) that generally prescribe a 30 day prior notice of the effective date of a rule have not been followed in connection with the adoption of this rule because the Board is granting an exemption and reducing regulatory burden. The APA grants a specific exemption from the deferred effective date requirements in these instances (5 U.S.C. 553(d)(1)). List of Subjects in 12 CFR Part 250 Federal Reserve System. .For the reasons set forth in the preamble, the Board is amending Title 12 of the Code of Federal Regulations, part 250, as follows; PART 250— MISCELLANEOUS INTERPRETATIONS 1. The authority citation for part 250 is revised to read as follows; Authority: 12 U.S.C. 248(i) and 371c(e). 2. Section 250.241 is added to read as follows: §250.241 Exclusion from section 23A of the Federal Reserve Act for certain transactions subject to review under the Bank Merger Act. (a) Grant of Exemption. Section 23A of the Federal Reserve Act shall not apply to a transaction between affiliated insured depository institutions if the transaction has been approved by the appropriate federal banking agency pursuant to the Bank Merger Act. (b) Definitions. For purposes of this section, the terms “appropriate federal banking agency" and “insured depository institution" are defined as those terms are defined in section 3 of the Federal Deposit Insurance Act. By order o f the Board of G overnors o f the F ederal R eserve System , Septem ber 4.1992. W illiam W . W iles, Secretary o f the Board. [FR Doc. 92-21879 Filed 9-10-92; 8.45 am] BILLING CODE 6210-01-f
@FedFRASER