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FEDERAL RESERVE BANGC OF MEW YORK d ra ft M> 9?¥-£ November 7, 1985 BOARD OF GOVERNORS9 SEMIANNUAL REGULATORY AGENDA OCTOBER 1, 1985 — APRIL 1, 1986 To A ll Depository Institutions in the Second Federal Reserve District: The Board of Governors of the Federal Reserve System has published, in the Federal Register of October 29, 1985, its Semiannual Regulatory Agenda for the period October 1, 1985 through April 1, 1986. The Agenda provides information on those regulatory matters that the Board now has under consideration or antic ipates considering over the next six months. It is divided into three parts: (1) regulatory matters that have been proposed and are under Board consideration, and other regulatory matters that the Board may consider for public comment during the next six months; (2) major regulatory reviews in progress under the Board’s Regulatory Improvement Project scheduled over the next 12 months; and (3) regulatory matters that the Board has completed or is not expected to consider fur ther. Enclosed, for those who have requested it, is a copy of the Agenda, which has been reprinted from the Federal Register. It will be provided to others upon re quest directed to the Circulars Division of this Bank (Tel. No. 212-791-5216). Comments regarding any of the Agenda items should be submitted directly to the Board of Governors. E. G er ald C o r r ig a n , P resident. Tuesday October 29s 1985 Part Li IS Federal Reserve System Semiannual Regulatory Agenda F ed eral R egister / Vol. 50, No. 209 / T u esday, O cto b er 29, 1985 / U nified A genda 44950 FRS FEDERAL RESERVE SYSTEM! 12 CFR Gh. IS Semiannual Regulatory Flexibility Agenda A©EN6Y: Board of Governors of the Federal Reserve System. ACTION: Semiannual agenda. SUMMARY: The Board is issuing this Agenda under the Regulatory Flexibility Act and the Board’s Statement of Policy Regarding Expanded Rulemaking Procedures. The Board anticipates having under consideration regulatory matters as indicated below during the period from October 1,1985 through April 1,1986. The next Semiannual Agenda will be published in April 1986. Comments about the form or content of the Agenda may be submitted any time during the next six months. a d d r e s s : Comments should be addressed to William W. Wiles, Secretary of the Board, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. FOR FURTHER INFORMATION CONTACT: A staff contact for each item is indicated with the regulatory description below. SUPPLEMENTARY INFORMATION: The Board is publishing its October 1985 Agenda as part of the October 1985 Unified Agenda of Federal Regulations, which is coordinated by the Office of Management and Budget under Executive Order 12291. Participation by the Board in the Unified Agenda is on a voluntary basis. The Board’s Agenda is divided into three sections. The first, Current and DATE: Projected Rulemakings, reports on regulatory matters that have been proposed and are under Board consideration, and other regulatory matters (designated by a plus sign (+)) the Board may consider for public comment during the next six months. The second section, Existing Regulations Under Review, reports on any major regulatory reviews under the Board’s Regulatory Improvement Project that are scheduled for the next 12 months. A third section, Completed Rulemaking, reports on regulatory matters the Board has completed or is not expected to consider further. A dot (©) preceding an entry indicates a new matter that was not a part of the Board’s previous Agenda, and which the Board has not completed. Barbara R. Lowrey, Associate Secretary of the Board. Current and Projected Rulemakings S e que nce N um ber 3819 3820 3821 3822 3823 3824 3825 3826 3827 3828 3829 3830 3831 3832 T itle R egulation: B - Equal C redit O pportunity (D o cket N um ber: R -0 5 4 1 )................................................................................................... - f R egulation: D - R eserve R equirem ents o f D ep o sito ry Institutions and R egulation: Q - In te re st o n D e p o s its ................... R egulation: J - C o lle c tio n o f C hecks and O th e r Item s and W ire T ra n sfe rs o f F un d s.................................................................... R egulation: K - International Banking O pe ra tio n s (D o cket N um ber: R -0 55 0 )................................................................................... R egulation: Q - Interest on D eposits (D o cket N um ber: R -0 5 1 4 )........................................................................................................... + R egulation: Q - In te re s t on D e p o s its ......................................................................................................................................................... + R egulation: U - C redit by B anks For T he P urpose o f P urchasing or C arrying M argin S to cks (D o cke t N um ber: R0 5 1 0 ).............................................................................. ....................................................................................................................................... R egulation: Y - Bank H olding C om panies and C hange in Bank C ontrol (D o cket N um ber: R -0 5 1 1 )........................................ R egulation: Y - B ank H olding C om panies and C hange in Bank C o n tro l (D o cket N um ber. R -0 4 9 1 )........................................ + R egulation: Y - B ank H olding C om panies and C hange in Bank C o n tro l...................................................................................... R egulation: Y - Bank H olding C om panies and C hange in Bank C ontrol (D o cket N um ber: R -0 5 3 7 )........................................ R egulation: Y - Bank H olding C om panies and C hange in Bank C ontrol (D o cket N um ber: R -0 5 3 6 )........................................ R egulation: Z - T ruth in Lending (D o cket N um ber R -0 5 4 5 )................................................................................................................... F urther P roposals to R educe R isks on Large-D ollar W ire T ra n sfe r S ystem s (D o cket N um ber: R -0515A , R -0515B , R0 5 1 5 C ) .................................................................................................................................................................................................................. R egulation Identifier N um ber 7100-A A 28 7100-A A 57 7 1 00-A A 55 7100-A A 58 7 1 00-A A 36 7 1 00-A A 56 7 1 00 -A A 3 8 7 1 00-A A 17 71 0 0-A A 4 0 7100-AA 41 7 1 00-A A 52 7100-AA 51 7 1 0 0-A A 5 0 710 0-A A 5 9 4- Indicates regulatory matter the Board may consider for public comment. Existing Regulations Under Review Se quence N um ber 3833 T itle R egulatory Im pro ve m e n t P ro je c t..................................................................................................................................................................... R egulation Identifier N um ber 7100-A A 14 F ed eral R egister / Vol. 50, No. 209 / T u esd ay , O cto b er 29, 1985 / U nified A genda 44951 FRS Com pleted Actions S e que nce N um ber 3834 3835 3836 383 7 3838 383 9 384 0 3841 384 2 3843 R egulation Ide ntifie r N um ber Title R egulation: F - S ecurities o f S ta te M em b e r B a n k s .................................................................................................................................. R egulation: G - S ecurities C redit by P ersons o th er than Banks, B rokers, or D ealers (D o cket Num ber: R -0 5 2 9 )................ R egulation: K - International B anking O perations (D o cket N um ber. R -0 49 8 ).................................................................................. R egulation: K - In ternational B anking O perations (D o cket N u m b e r R -0 52 0 ).................................................................................. R egulation: T - C redit by B rokers and D ealers (D o cket Num ber: R -0 5 3 8 )....................................................................................... R egulations: Y - B ank H olding C om panies and C hange in B ank C ontrol; R egulation: H - “ S tate Bank M em b e rsh ip ” ; and R ules o f P ractice fo r H earings (D ocket N u m b e r R -0 52 6 )........................................................................................................... R egulation: A A - U nfair o r D eceptive A c ts or P ractices (D o cket N u m b e r R -0 0 0 6 )...................................................................... R egulation: A A - U nfair or D eceptive A cts o r P ra c tic e s .......................................................................................................................... R egulation: Equal E m ploym ent O pportunity (D o cket Num ber: R -0 5 2 7 )............................................................................................. P olicy S ta te m e n t on R isks on Large-D ollar T ra n sfe r S ystem s (D o cket N um ber: R -0 5 1 5 ).......................................................... FED ER AL RESERVE SYSTEM (FRS) Legal Authority: 15 USC 1691b A c tio n Equal C redit O pportu n ity A c t CFR Citation: 12 CFR 202 Abstract: In March 1985, the Board published for comment proposed revisions to Regulation B (50 FR 10890, March 18, 1985). The proposal stems from the Board’s commitment to review its regulations every five years. The review of Regulation B focussed on how the regulation could be clarified, and whether any burdens on creditors could be reduced without diminishing consumer protections. The proposal contains some technical changes, including a streamlined procedure dealing with incomplete applications and a broader selection of sample forms for informing applicants of the reasons for a credit denial. The proposal also would change the data notation requirements applicable to residential mortgage transactions and revise the definition of “applicant” to give a guarantor (who already has certain protections under Regulation B) legal standing in the courts when there is an alleged violation of the regulation. The Board is also publishing for comment an official staff commentary that would replace existing staff and Board Interpretations. The proposal would apply to all creditors equally. Small (cont) 7 1 00-A A 45 7 1 00-A A 42 7 1 00-A A 49 7 1 00-A A 46 7 1 00-A A 47 C u rre n t and P ro je c te d R ule m a king s Timetable: 3819. REGULATION: B - EQUAL CREDIT OPPORTUNITY (DOCKET NUMBER: R-0541) 7 100-A A 32 7 100-A A 54 7 100-A A 35 7100-A A 44 7 1 00-A A 53 D a te AN P R M Propose sp e cific revisions fo r co m m e n t F urther B oard actio n by 0 6 /2 1 /8 3 48 0 3 /1 8 /8 5 50 FR C ite FR 28285 FR 10890 1 0 /0 0 /8 5 Small Entity: No Additional Information: ABSTRACT CONT:creditors will incur some additional burden in complying with the expanded monitoring data requirements, but the shortening of the regulation and the clarification and streamlining of other rules such as treatment of incomplete applications, should reduce some burdens and the addition of a staff commentary and sample notice forms should make compliance easier for small creditors. The Board will review the comments and take further action within the next two months. Agency Contact: John Wood, Senior Attorney, Federal Reserve System, Division of Consumer and Community Affairs, 202 452-2412 RIN: 7 1 0 0 -A A 2 8 Timetable: A c tio n B oard w ill co n sid e r issuing fo r com m ent a p roposal to am end R egulations D D a te FR C ite 1 0 /0 0 /8 5 and Q by Small Entity: N o Additional Information: ADDITIONAL AGENCY CONTACT: Daniel L. Rhoads, Attorney, Legal Division, (202) 452-3711. Agency Contact: John Harry Jorgenson, Senior Attorney, Federal Reserve System, Legal Division, 202 452-3778 RIN: 7 1 0 0 -A A 5 7 3820. © + REGULATION: D - RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS AND REGULATION: Q INTEREST ON DEPOSITS Legal Authority: 12 USC 371b; 12 USC 461(b) CFR C ita tio n : A bstract: On March 31,1986, the authority' transferred to the Depository’ Institutions Deregulation Committee expires, and interest paid on deposits will generally no longer be subject to regulation. The Board will consider amending its Regulations D and Q to reflect this expiration and to-make other technical changes. It is expected that any changes in the regulations will not have a significant adverse effect on small entities. 12 CFR 204, 12 CFR 217 3821. REGULATION: J - COLLECTION OF CHECKS AND OTHER ITEMS AND WIRE TRANSFERS OF FUNDS Legal Authority: 12 USC 342 F ederal R e serve Act; 12 USC 248(o) F ederal R eserve Act; 12 USC 360 Federal R eserve Act; 12 USC 246(i; Federal Reserve Ac; CFR Citation: 12 CFR 210 44952 Federal Register / Vol. 50, No. 209 / T u esd ay , O cto b er 29, 1985 / U nified A genda Abstract: In March 1985, the Board issued for public comment proposed amendments to Regulation J intended to clarify certain issues that have arisen regarding Federal Reserve payments mechanism activities (50 FR 12310, March 28,1985). The proposed amendments include (1) permitting the owner or other subsequent holder injured by a Reserve Bank’s alleged failure to exercise ordinary care in handling a check to bring suit against the Reserve Bank; (2) establishing a two-year limitation for actions against a Reserve Bank for alleged mishandling of the collection of checks or processing wire transfers and for actions against payor institutions for failure to follow the notification of nonpayment requirements; (3) permitting Reserve Banks to require any prior indorser to defend a suit even if the Reserve Bank has not been sued directly; (4) authorizing depository institutions to deposit with Reserve Banks for collection checks drawn on institutions in foreign countries where Reserve Banks have made arrangements for their collection; (5) clarifying that Reserve Banks are not liable for consequential damages in handling wire transfers; (6) adding the northern Mariana Islands to the Twelfth (cont) Timetable; Action B oard requested com m ent F urther B oard actio n by Date 0 3 /2 8 /8 5 FR Cite 50 FR 12310 1 0 /0 0 /8 5 Small Entity: No Additional Information; ABSTRACT 3822. • REGULATION: K INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: R0550) Legal Authority: 12 U SC 611 et seq CFR Citation: 1 2 C F R 2 1 1 Abstract: In August 1985, the Board published for comment proposed regulations that would restrict lending by an Edge Corporation to its affiliates where the Edge Corporation is not subject to the restrictions of section 23A of the Federal Reserve Act (12 USC 371c) by virtue of being owned by a U.S. insured bank (Federal Register cite unavailable). In taking this action, the Board noted the increasing number of owners of Edge Corporations that are not subject to federal banking supervision and the potential adverse effects that might result from such affiliations, such as the impairment of the Edge’s ability to act as an impartial arbiter of credit. The Board requested comment on the effect of the proposal on existing Edge Corporations, especially those owned by foreign banks and whether any exemptions from the restrictions are appropriate. It is not expected that the proposal would have a significant economic impact on a substantial number of small businesses, because it applies only to organizations involved in international banking. The Board will review the public comments and take further action within the next six months. Timetable: Action CONT: District for check collection purposes; and (7) clarifying the definitions in subpart A by incorporating by reference definition of the Uniform Commercial Code. B oard pro p o se d revisions to R egulation K F urther B oard a ctio n by It is not expected that the proposals will have a significant economic impact on a substantial number of small entities. The Board will review the public comments and take further action within the next two months. Small Entity: No Agency Contact: Joseph R. Alexander, Attorney, Federal Reserve System, Legal Division, 202 452-2489 RIN: 7 1 0 0 -A A 5 5 Date FR Cite 0 8 /1 4 /8 5 0 2 /0 0 /8 6 deposits to incorporate a policy statement concerning advertisements for split rate time deposits and for deposits used as Individual Retirement Account (IRA) investments (49 FR 11642, March 27, 1984). Under the proposal, in the case of a split rate account where a schedule of fixed rates to be paid is established in advance and the first rate to be paid is higher than subsequent rates, the Board w ould regard any advertisement of a rate as misleading unless the advertisement includes each rate to be paid in equal size type together with a conspicuous statement as to how long each rate will be in effect and a conspicuous statement of the average effective annual yield. In addition, advertisements should refer to IRAs as “tax deferred” and not as “tax exempt” or “tax free.” The proposal would not adversely affect small businesses because no additional reporting or recordkeeping requirements are imposed. The Board will review the public comments and is expected to take further action at the same time it considers updating (cont) Timetable: Action B oard p ro p o se d a m e n d m e nts N e xt B oard a c tio n by Date 0 3 /2 7 /8 4 FR Cite 4 9 FR 11642 1 0 /0 0 /8 5 Small Entity: No Additional Information: ABSTRACT CONT: and incorporating all the Board’s existing requirements governing advertisement of interest on deposits. (See RIN: 7100-AA56). Agency Contact: Daniel L. Rhoads, Attorney, Federal Reserve System, Legal Division, 202 452-3711 RIN: 7 1 0 0 -A A 3 6 Agency Contact: Kathleen O’Day, Senior Attorney, Federal Reserve System, Legal Division, 202 452-3786 3824. + REGULATION: Q - INTEREST ON DEPOSITS RIN: 710Q -A A 58 Legal Authority: 12 U SC 371 b CFR Citation: 12 CFR 217 3823. REGULATION: Q - INTEREST ON DEPOSITS (DOCKET NUMBER: R- 0514) Legal Authority: 12 USC 371 b CFR Citation: 12 CFR 217 A bsiract: In March 1984, the Board proposed amendments to its rules concerning advertising interest on A bstract: In March 1984, the Board proposed amendments to its rules concerning advertising interest on deposits to incorporate a policy statement regarding advertisements for split-rate time deposits and for deposits used as Individual Retirement Account investments. (See entry RIN: 7100- F ed eral R egister / Vol. 50, No. 209 / T u esday, O cto b er 29, 1985 / U nified A genda (FRS C urrent and Projected Rulemakings AA36). In response to comments received in that proceeding, the Board may consider whether to propose amending Regulation Q further in order to update and incorporate all the Board’s existing requirements governing advertisement of interest on deposits. The Board might also request comment on whether additional requirements are necessary to provide depositors with accurate and adequate information in advertisements or at the time of opening an account. It has been suggested by some that such new requirements should be imposed to enable depositors to evaluate the many deposit options now available as a result of deregulation of interest rates. If the Board proposes any new rules, they are not likely to be severe nor to require reporting or recordkeeping. Therefore, it is expected that any such proposals would not have a significant adverse effect on small entities. Timetable: Action Date FR Cite and Dealers). In particular, the petitioner has requested the Board to change, if necessary, what is perceived to be a regulatory disparity between the treatment of banks and broker-dealers with respect to the financing of options transactions. This action may not be necessary if litigation upholds recent Securities and Exchange Commission Rule 3b-9 (17 CFR 240.3b-9), effective January 1, 1986, which requires a bank to conduct these activities through a broker-dealer subject to Regulation T. It is not anticipated that this proposal would affect a significant portion of the overall lending activities of a substantial number of small firms. armored car services; 5. tax planning and tax preparation; and 6. operating a credit agency and credit bureau. Consumer financial counseling, check guaranty services and limited types of tax preparation have been permitted previously by Board order on individual applications. In addition the Board has proposed to expand the activities of property appraisal and providing advice in connection with future commission merchant activities. These activities have been included previously in the list of permissible activities (cont) Timetable: Action Action B oard m ay review a p roposal to am end R egulation U by Date FR Cite 0 6 /0 0 /8 6 Small Entity: No B oard w ill co n sid e r issuing fo r com m ent a p roposal to am end R egulation Q by 1 0 /0 0 /8 5 Small Entity: No Additional Information: ADDITIONAL AGENCY CONTACT: Daniel L. Rhoads, Attorney, Legal Division, (202) 452-3711 Additional Information: ADDITIONAL AGENCY CONTACT: Susan S. Meyers, Securities Regulation Analyst, Division of Banking Supervision and Regulation, (202) 452-2781. Agency Contact: Laura Homer, Securities Credit Officer, Federal Reserve System, Div. of Banking Supervision and Regulation, 202 4522781 RIN: 7 1 0 0 -A A 3 8 Agency Contact: John Harry Jorgenson, Senior Attorney, Federal Reserve System, Legal Division, 202 452-3778 RIM: 7100-AA56 3825. + REGULATION: U - CREDIT BY BANKS FOR THE PURPOSE OF PURCHASING OR CARRYING MARGIN STOCKS (DOCKET NUMBER: R-0510) Legal Authority: 15 USC 78g S ecurities E xchange A c t o f 1934, as am ended; 15 USC 7 8w Securities E xchange A c t o f 1934, as am ended CFR 44953 Citation: 12 CFR 221 Abstract: In 1985 or 1986, the Board may review a proposal submitted on behalf of a banking institution calling for an amendment to Regulation U that would permit banks to extend credit for options transactions in the same manner that broker-dealers may do so under Regulation T (Credit by Brokers 3826. REGULATION: Y - BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0511) Legal Authority: 12 USC 1843(c)(8) Bank H olding C om pany A ct CFR Citation: 12 CFR 225 Abstract: In March 1984, the Board proposed for public comment an amendment to Regulation Y that would list certain additional nonbanking activities as generally permissible for bank holding companies under section 4(c)(8) of the Bank Holding Company Act and in which bank holding companies may seek Board approval to engage (49 F R 9215, March 12, 1984). The activities proposed to be included in Regulation Y for the first time in c lu d e : 1. c o m m o d i t y t r a d in g a d v i s o r y services; 2. check guaranty services; 3. consumer financial counseling; 4. Timetable: B o a rd requested co m m e n t F urther Board actio n by Date 0 3 /1 2 /8 4 FR Cite*V I 49 FR 9215 0 1 /0 0 /8 6 Small Entity: No Additional Information: ABSTRACT CONT; in Regulation Y, although in a more restricted manner. The Board has also proposed to define and clarify the insurance agency and underwriting activities generally permissible for bank holding companies so as to conform the regulation to Title VI of the Gam-St. Germain Depository Institutions Act, which was adopted in October 1982. Adoption of the proposal would ena'ble bank holding companies to engage in additional activities and would impose no additional burden on any bank holding company. The Board will review the comments and is expected to take further action within the next four months. Agency Contact: James Scott, Attorney, Federal Reserve System, Legal Division, 202 452-3513 RIN: 7 1 0 0 -A A 1 7 3827. REGULATION: Y - BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0491) Legal Authority: 12 USC 1843(c)(8) Bank H olding C om pany A ct CFR Citation: 12 CFR 225 Abstract: In November 1983, the Board published for comment a proposal to e l i m i n a t e t h e requirement in Regulation Y t h a t bank holding c o m p a n i e s engaging in credit life and credit 44954 F e d e ra l R egister / Vol. 50, No. 209 / T u esd ay , O cto b er 29, 1985 / U nified A genda FRS Current and Projected Rulem akings accident and health insurance underwriting provide rate reductions or increased policy benefits in order to engage in this activity (48 FR 53125, November 25, 1983.) The Board took this action as a result of the suggestions of several commenters to the Board’s recent revision of Regulation Y, who advocated elimination of the rate reduction requirement from the regulation. These commenters stated that in their view the requirement puts bank holding companies at a competitive disadvantage with respect to other providers of this service, and that the potential adverse effects on the public that prompted the Board to impose this condition in 1972 have not been realized. This proposal, if adopted, would relax the regulatory requirements on bank holding companies which engage in this activity. The Board will review the public comments and is expected to take further action within the next four months. subsidiaries regarding activities permissible for such banks under federal law.) The Board received comments on this provision in connection with its general request for comments in May 1983 regarding the proposed revision of Regulation Y. Some of the commenters challenged the Board’s authority to issue this provision, although it has been part of Regulation Y since 1971. In taking final action on the revision of Regulation Y, the Board deferred consideration of the comments on this provision and allowed the existing rule to remain in effect in the interim (49 FR 794, January 5, 1984). The Board plans to review this provision of the regulation in the near future. A determination to reverse the rule could have an adverse impact on many small banks that are subsidiaries of holding companies because they might be required to (cont) to authorize or limit the conduct of real estate investment activities by bank holding companies and their nonbank subsidiaries (50 FR 4519, January 31, 1985). The Board has not proposed a specific regulation at this time, and has only requested comment on the general question of whether, and in what direction Board regulation in this area is appropriate. In file event the Board determines to propose a regulation in this area, the public will be invited to comment on the regulation. Comment in this area w as requested in response to enactment of a number of state laws that have recently authorized state banks to conduct a broad array of nonbanking activities that previously were not authorized for state banks or bank holding companies, including real estate investment activities. Until the Board reviews the public comments on this activity, it is unclear whether the Board will act in this area or (cont) Timetable: Timetable: Action T lm etabte Date Small Entity: No B oard requ e ste d c o m m e n ts B oard a llo w s existing rule to rem ain in e ffe c t B o a rd w ill review fu rth e r by Additional Information: ADDITIONAL Small Entity: Y es Action B oard requ e ste d co m m e n t F urth e r B oard actio n by Date 1 1 /2 5 /8 3 FR Cite 4 8 FR 53125 01 /0 0 /8 6 AGENCY CONTACT: Michael J. O ’Rourke, Attorney, Legal Division, (202) 452-3288. Agency C o n ta c t J. Virgil Mattingly, Deputy General Counsel, Federal Reserve System, Legal Division, 202 452-3430 BIN: 7100-AA40 FR Cite 0 5 /2 5 /8 3 48 FR 2 3520 0 1 /0 5 /8 4 49 FR 794 CFR Citation: 12 C FR 225 A bstract: A provision of Regulation Y permits a state bank subsidiary of a bank holding company to engage through a nonbank subsidiary in any activity that is permissible under state law for the bank subsidiary itself, subject to the same limits as if the bank eneaees in the activity directly. (A similar rule applies to national bank Date 0 1 /3 1 /8 5 11 /0 0 /8 5 FR Cite 50 FR 451 9 Additional Information: ABSTRACT 0 4 /0 0 /8 6 Additional Information: ABSTRACT CONT: restructure their nonbanking activities or to take other action. Agency Contact: J. Virgil Mattingly, Deputy General Counsel, Federal Reserve System, Legal Division, 202 452-3430 B IN : 710 0-A A 4 1 Legal Authority: 12 U SC 1843 B ank H o ld ing C om pany A ct; 12 USC 1844(b) B ank H o ld ing C om pany A c t ANPRM F urth e r B oa rd a ctio n by Small Entity: Yes WKaammasKmsammBBtsstBiBmmmamBBmasmmmBammaBmaaamm 3828. + REGULATION: Y - BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL Action 3829. REGULATION: Y - BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0537) Legal Authority: 12 USC 1841 Bank H o ld ing C om pany A ct; 12 USC 221 Federal R e se rve A ct; 12 USC 3901 in te rn a tio n a l Lending S upervision A c t o f 1983 CFR Citation: 12 CFR 225 Abstract: In January 1985, the Board requested public comment regarding whether, and to what extent, the Board should exercise its authority under the Bank Holding Company Act, the t eQeral Reserve Act, and Mil International Lending Supervision Act CONT: w hat specific action the Board may take. Therefore, the effect on small entities cannot be accurately predicted. However, if the Board should take restrictive measures, bank holding companies of all sizes and their subsidiaries participating in this activity would be affected. Agency Contact: J. Virgil Mattingly, Deputy General Counsel, Federal Reserve System, Legal Division, 202 452-3430 RIN: 7100-AA52 3830. REGULATION: Y - BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0536) Legal Authority: 12 USC B a n k H olding C om pany A ct 1841 et seq CFR Citation: 12 CFR 225 Abstract: In January 1985, the Board requested public comment as to whether the Board should permit bank holding companies that own nonbank banks to provide internal administrative services to, and establish management interlocks with, those nonbank banks (50 FR 2057, 44955 F ed eral R egister / Vol. 50, No. 209 / T u esday, O cto b er 29, 1985 / U nified A genda PRS Current and Projected Rulemakings January 15, 1985). [“Nonbank banks” are institutions that are chartered as banks but which either do not accept demand deposits or do not make commercial loans.) The Board took this action to resolve a number of questions that had been raised regarding the appropriate scope of relationships between nonbank banks and their affiliates. It is likely that any action the Board might take would primarily affect larger bank holding systems and would relax a requirement or prohibition. Therefore, it is expected that any Board action would not have a significant economic impact on a substantial number of small entities. In view of recent court decisions holding that nonbank banks violate the National Bank Act and the Bank Holding Company Act in certain circumstances, the Board has suspended further consideration of nonbank bank applications by bank holding companies pending (cont) convey to consumers the terms and potential costs of these mortgages. The Board has proposed that creditors make more extensive disclosure of the variable rate feature in transactions secured by the consumer’s home in ordeT to provide consumers with the information needed for informed credit decisions, in keeping with the purpose of Truth in Lending (50 FR 20221, May 15, 1985). The proposal would amend the regulation to require that creditors make available to consumers general descriptive material about adjustable rate mortgages. The regulation would also be amended to require creditors to provide a more detailed description of their variable rate feature, together with an example showing the effect of a raie increase of two percentage points for each of the first three years of the transaction, (cont) Timetable: Board p roposed am e n d m e nt F urther B oard action by Aetion Date B oard requested com m ent A w aiting C ourt A ctio n 0 1 /1 5 /8 5 FR Cfte 50 FR 2057 Action Date 0 5 /1 5 /8 5 FR Cite 50 FR 20221 1 0 /3 0 /8 5 Small Entity: Yes 0 0 /0 0 /0 0 Small Entity: No Additional Information: ABSTRACT CONT: definitive resolution of the status of these entities by Congress or the Supreme Court. Final action on the proposal for public comment thus is not likely until the underlying issue of the legality of nonbank banks is resolved. Agency Contact: Melanie Fein, Senior Attorney, Federal Reserve System, Legal Division, 202 452-3534 RIN: 7 1 00-A A 51 3831. REGULATION: Z - TRUTH IN LENDING (DOCKET NUMBER R-0545) % Legal Authority: 15 USC 1604, as a m e n d ed T ruth in Lending A ct CFR Citation: 12 CFR 226 Abstract: Regulation Z currently requires that creditors provide information to consumers regarding variable rate features in credit transactions. In the last several years, adjustable rate mortgages have become increasingly common and complex, and concern has been expressed in Congre ss end else w h e r e as to v A . - t h c r Truth in Lending disclosures adequately Timetable: Additional Information: ABSTRACT CONT: Finally, the proposal would eliminate a provision of the regulation that currently permits creditors to substitute the disclosure required by other federal agencies for those called for in Regulation Z. The Board is concerned about the creditor burdens associated with compliance with the overlapping and duplicative disclosures in this area, and believes that elimination of that provision could encourage further movement among the agencies toward developing uniform disclosure requirements. If the Board adopts this proposal, . mortgage creditors, including small business engaged in mortgage lending, could incur some costs in implementing the revised disclosure by providing the general descriptive material, revising and reprinting forms, and changing certain procedures to comply with the requirement. Before any final action, the Board would consider appropriate actions to minimize the burdens and costs of compliance. The Board wrill review the public comments and take further action within the next twro months. Agency Contact: Susan Werthan, Senior Attorney, Federal Reserve System, Division of Consumer and Community Affairs, 202 452-3667 RIN: 7 1 0 0 -A A 5 0 3832. © FURTHER PROPOSALS TO REDUCE RISKS ON LARGE-DOLLAR WIRE TRANSFER SYSTEMS (DOCKET NUMBER: R-0515A, R-0515B, R-0515C) Legal Authority: 12 USC 221 et seq CFR Citation: 00 C FR N one Abstract: In May 1985, the Board adopted a statement of its policy on reducing risks on large-dollar wire transfer systems (50 FR 21120, May 22, 1985) (see RIN: 7100-AA47). The Board determined, however, that certain aspects of this topic require further study and issued the following three requests for comments: (1) Book-entry securities transfer (R-0515A). In formulating its policy on risk reduction, the Board has been concerned about the impact that overdraft restrictions could have in the U.S. government securities market, which is vital to the conduct of monetary policy and the funding of the federal debt. Consequently, the Board has exempted daylight overdrafts resulting from the transfer of such securities from these restrictions. Instead, the Board is seeking comment on a proposal to reduce risks associated with transfers of book-entry securities that would require institutions to choose between treating book-entry related overdrafts the same as funds overdrafts of pledging collateral to secure book-entry overdrafts. (2) Automated Clearing Houses (R-0515B). The Board has previously regarded automated clearing house (ACHs) as (cont) Timetable: Action Date B oard requested co m m e n t 0 5 /2 2 /8 5 B oard exte nd e d com m ent period until 0 9 /3 0 /8 5 F urth e r B oard action by 0 6 /0 0 /8 6 FR Cite 50 FR 21130 Small Entity: No Additional Information: ABSTRACT CONT: low-dollar networks. Recently, however, ACHs have begun processing large-dollar payments, thus presenting m rm y r f A n ram-" r i r U r a r l a ’-q e - d r l la r networks. Accordingly, the Board is 44956 F e d e ra l R eg ister / Vol. 50, No. 209 / T u esd ay , O cto b er 29, 1985 / U nified A genda requesting comment on risks associated with ACH payments and how such risks can be controlled. (3) Net Settlement Arrangements (R-0515C). The Board did not consider risks associated with the many net settlement services offered by the Federal Reserve (ATM, POS, check, and credit cards]. The Board has determined to consider these risks, and requested comment on various aspects of these services and the risks they entail, to aid it in its study. It is not expected that these proposals, if adopted, would have a significant economic impact on a substantial number of small entities, because small entities do not usually participate’ in large-dollar wire transfer FED ER AL RESERVE SYSTEM (FRS) 3833. REGULATORY IMPROVEMENT PROJECT Legal A u t h o r i t y : 12 USC 3501 F inancial R egulation S im plification A c t o f 1980; 5 USC 605 R egulatory Flexibility A c t CFR Citation: 00 CFR N one Abstract: The Board's Regulatory Improvement Project involves, among other things, a substantive, zero-based review of all Federal Reserve regulations that affect the public to determine: (1) the fundamental objectives of the regulation and the extent to which it is meeting current policy goals, (2) nonregulatory alternatives that would accomplish the objectives, [3] costs and benefits of the regulation, (4) unnecessary burdens imposed by the regulation, and (5] the clarity of the regulation. The Project also participates in the development of proposals listed in this agenda to ensure that the objectives of the Project are met. Since publication of the last semiannual Agenda, comments from the public on the proposed revision of Regulation B (“Equal Credit Opportunity”) have been reviewed by the staff; and the revision systems. The Board will review the public comments and take further action within the next ten months. Agency Contact: Edward C. Ettin, Deputy Director, Federal Reserve System, Division of Research and Statistics, 202 452-3368 FUN: 7 1 0 0 -A A 5 9 E x is tin g R e g u la tio n s U n d e r R e vie w should be finalized in the Fall. (See Entry RIN 7100-AA28). Also, the proposed revision of Regulation K (“International Banking Operations”) has been adopted with some changes. (See Entry RIN 7100-AA44). In addition, zero-based reviews have been commenced on Regulation N~ “Relations (cont) Timetable: Action ANPRM R e gulation B Date FR Cite 0 6 /2 1 /8 3 48 FR 28 2 85 R evision o f 0 3 /1 8 /8 5 R egulation B p ro p o se d fo r co m m e n t R evision o f Equal 0 5 /0 2 /8 5 E m p lo ym e n t O pp ortu n ity R egulation a d o pte d R evision o f 0 8 /1 4 /8 5 R egu la tio n K ado pte d F urth e r B oard 1 0 /0 0 /8 5 actio n on R egulation B by 50 FR 10889 50 FR 18767 Additional information: ABSTRACT CONT: with Foreign Banks and Bankers” (12 CFR 214) and the Board’s “Rules Regarding Availability of Information” (12 CFR 261). Consideration will also be given to commencing within the next twelve months the zero-based reviews of the following regulations: P - “Minimum Security Devices and Procedures” (12 CFR 216); Q--“Interest on Deposits” (12 CFR 217); R - “Relations with Dealers in Securities under Section 32, Banking Act of 1933” (12 CFR 218); and A A “Unfair or Deceptive Acts or Practices” (12 CFR 227). Commenters are invited to submit any suggestions they may have for possible changes in this regulatory agenda for the next twelve months. Agency Contact: Barbara R. Lowrey, Associate Secretary, Federal Reserve System, Office of the Secretary, 202 452-3742 R IN : 7 1 0 0 -A A 1 4 Small Entity: No Completed Actions FEDERAL RESERVE SYSTEM (FRS) COMPLETED RULEMAKINGS 3834. REGULATION: F - SECURITIES OF STATE MEMBER BANKS Legal Authority: 15 USC 78(f) S ecurities E xchange A ct o f 1934 CFR Citation: 12 CFR 206 Abstract The April 1985 Agenda . referred to a possible proposal to amend Regulation F to conform that regulation with a series of recent changes in the securities disclosure regulations of the Securities cud Exchange Commission. Pursuant to section 12(i) of the Securities Exchange Act of 1934, the Board is required to periodically update its securities disclosure regulations to make them substantially identical to comparable regulations of the Securities and Exchange Commission or to publish reasons why they should not be so revised. Timetable: It is not expected that the Board will consider this matter during the next six months. Additional Information: ADDITIONAL Action Date FR Cite B oard actio n not. 0 8 /2 7 /8 5 e xp e cte d during n e xt six m on th s Small Entity: No AGENCY CONTACT: J. Virgil Mattingly, Deputy General Counsel, Legal Division, (202) 452-3430. 44957 F e d e ra l R egister / Vol. 50, No. 209 / T u esd ay , O cto b er 29, 1985 / U nified A genda PRS C o m p le te d A c tio n s Agency Contact: W alter McEwen, Agency Contact: Laura Homer, Agency Contact: Michael G. Martinson, Attorney, Federal Reserve System, Legal Division, 202 452-3321 Securities Credit Officer, Federal Reserve System, Div of Banking Supervision and Regulation, 202 4522781 Projects Manager-International Activities, Federal Reserve System, Div RIN: 7 1 0 0 -A A 5 4 RIN: 7 1 0 0 -A A 3 5 3836. REGULATION: K INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: R0498) 3837. REGULATION: K INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: R0520) Legal Authority: 12 USC 3901 et seq In ternational Lending S upervision A ct, 1983 Legal Authority: 12 USC 601 to 604a; 12 CFR Citation: 1 2 C F R 2 0 7 CFR Citation: 1 2 C F R 2 1 1 CFR Citation: 1 2 C F R 2 1 1 A bstract: In March 1985, the Board proposed for public comment, an amendment to Regulation G that would provide an exemption for lenders subject to that regulation who make loans to qualified employee stock ownership plans (ESOPs) (50 FR 10972, March 19, 1985). At the same time the Board asked for comment as to whether Regulation T should also be amended to provide a comparable exception for brokers and dealers. In June 1985, the Board adopted amendments to regulations G and T after receiving favorable comments on the proposals (50 FR 26354, June 19, 1985). The effect of those amendments is to permit the lending to ESOPs on a “good faith” basis instead of under the usual margin requirements. As adopted by the Board, these exemptions parallel one already provided to lenders subject to Regulation U (Credit by Banks for the Purpose of Purchasing or Carrying Margin Stocks). It is not anticipated that the amendments will have a substantial impact on a significant number of small firms. Abstract: In February and March 1984, the Board adopted regulations implementing the International Lending Supervision Act of 1983 (Title IX, Pub. Abstract: In August 1985, the Board RIM: 7 1 0 0 -A A 3 2 3835. REGULATION: G - SECURITIES CREDIT BY PERSONS OTHER THAN BANKS, BROKERS, OR DEALERS (DOCKET NUMBER: R-0529) Legal Authority: 15 USC 78g S ecurities E xchange A c t o f 1934, as am ended; 15 USC 78w S ecurities E xchange A c t of 1934, as am e n d e d Timetable: A c tio n D a te FR C ite B oard requested co m m e n t 0 3 /1 9 /8 5 50 FR 10972 B oard a d o p te d a m endm ents 0 6 /1 9 /8 5 50 FR 26354 Small Entity: No Additional Information: ADDITIONAL AGENCY CONTACT: Susan Meyers, Securities Regulation Analyst, Division of Banking Supervision and Regulation, (202) 452-2781. L. 98-181) with respect to maintenance of reserves against certain international assets, disclosure of information on international assets, and accounting rules for fees on certain international loans. In publishing these regulations the Board requested comment on whether and to w hat extent the Act should apply taU .S. branches, agencies, and commercial lending company subsidiaries of foreign banks. By action of February 13, 1984 (49 FR 5587, 5591), the Board left open the comment period on this issue in order to allow for further public comment. It is not expected that the Board will take action on these issues in the near future. If the Board takes action on these issues it will do so only after a new notice is published for comment. Timetable: Action Date B oard a d opted 0 2 /1 3 /8 4 regulations im plem enting the inte rn a tio n a l Lending S upervision A ct of 1983 B oard a d o pte d 0 3 /2 9 /8 4 additional regulations N o fu rth e r action 0 8 /2 7 /8 5 expe cte d in near future FR Cite 49 FR 5591 adopted final revisions (Federal Register cite unavailable) to its Regulation K governing the international operations of U.S. banking organizations. The revisions had been proposed for comment in June 1984. The review and revision of the regulation were undertaken pursuant to a provision of the International Banking Act of 1978 which requires a review every five years of the rule governing Edge Corporations. In order to improve the competitive position of Edge Corporations, the Board adopted one of the several alternatives that were proposed to enable Edge Corporations to provide a broader range of banking services than is currently permitted. The revision permits an Edge Corporation to lend for any purpose to a company that by its charter or license must engage only in international business. The Board also left this proposal open for comment with respect to a procedure permitting certification of other companies to which an Edge may lend for any purpose. Other major revisions include an increase in the Edge Corporation lending limit; relaxation of the limits on investments in (cont) Action Date FR Cite 49 FR 12192 ADDITIONAL • AGENCY CONTACT: Kathleen O’Day, Senior Counsel, Legal Division, (202) 452-3780. USC 611 e t seq; 12 USC 1841 e t seq Timetable: Small Entity: No Additional Information: of Banking Supervision, and Regulation, 202 452-3621 B oard p roposed revisions to R egulation K 0 6 /2 5 /8 4 49 FR 26002 C o m m e n t period e xtended until 1 0 /1 2 /8 4 49 FR 33895 B oard adopted revisions 0 8 /1 4 /8 5 Small Entity: No Additional Information: ABSTRACT C O N T - o th e r o r g a n iz a tio n s : e s ta b lis h m e n t o f p r o c e d u r e s g o v e r n in g a change in control of an Edge 44958 Federal Register / Vol. 50, No. 209 / Tuesday, October 29, 1985 / Unified Agenda Completed Actions FRS Corporation; and several provisions governing U.S. operations of foreign banks. The Board also deferred consideration of a proposal to conform Edge capital standards to those of state member banks. It is not expected that the revisions would have a significant economic impact on a substantial number of small businesses. Additional information: ADDITIONAL Additional information: ADDITIONAL AGENCY CONTACT: Martha Scanlon, Economist, Division of Research and Statistics, (2 0 2 ) 45 2-3 6 3 3 . AGENCY CONTACT: Richard Spillenkothen, Assistant Director, Division of Banking Supervision and Regulation, (202) 452-2594. Agency Contact: James E. Scott, Senior Attorney, Federal Reserve System, Legal Division, 202 452-3513 Agency Contact Kathleen O’Day, 3840. REGULATION: AA - UNFAIR OR DECEPTIVE ACTS OR PRACTICES 3839. REGULATIONS: Y - BANK HOLDING COMPANIES ANDCHANGE (DOCKET NUMBER: R-0006) INBANK CONTROL; REGULATION: H- Legal Authority: 15 USC 57a Federal “STATE BANK MEMBERSHIP”; AND Trade Commission Act RULES OF PRACTICE FOR HEARINGS C F R Citation: 12 CFR 227 (DOCKET NUMBER: R-0526) Legal Authority: 12 USC 3 9 07 Internation Abstract: The Federal Trade Senior Counsel, Federal Reserve System, Legal Division, 202 452-3706 R IN : 7 1 00-A A 4 4 3838. REGULATION: T - CREDIT BY BROKERS AND DEALERS (DOCKET NUMBER: R-0538) Legal Authority: 15 U SC 78g Securities Exchange Act of 1934, as amended; 15 USC 7 8 w Securities Exchange Act of 1934, as am ended CFR Citation: 12 C FR 220 Abstract: In June 1985, the Board adopted an amendment to Regulation T that would set the initial margin requirement for the writing of options on equity securities at the same level as the maintenance margin that is required by the national securities exchange or association and that has been approved by the Securities and Exchange Commission (50 FR 26355, June 26, 1985). This would replace the margin requirement for these instruments set at 30 percent of the value of the underlying securities plus any unrealized loss or minus any unrealized gain. W hen effective, the new margin for writing options on equity securities will be similar to that of the writing of other options; that is, the initial margin will be identical to that of the Securities and Exchange Commission approved maintenance margin. It is not anticipated that this amendment will have a significant impact on a substantial number of small firms. The amendment consolidates existing provisions into a single rule and adds a provision to cover options not effected on exchange or association facilities. Timetable: A ctio n Board requested ■comm ent Board adopted am endm ents S m s ': E n tity ': No D a te FR C ite 0 2 /1 2 /8 5 50 FR 5766 0 6 /2 6 /8 5 50 FR 26355 Agency Contact: Laura Homer, Securities Credit Officer, Federal Reserve System, Div. of Banking Supervision and Regulation, 202 4522781 R IN : 71 0 0 -A A 4 5 R IN : 7 1 0 0 -A A 53 al Lending Supervision Act of 1983; 12 USC 39 03 International Lending Supervision Act of 1983; 12 USC 1844(b) Bank Holding Com pa ny Act; 12 USC 1818 Financial Institutions Su pervisory Act of 1966; 12 USC 248 Federal Reserve Act; 12 USC 324 Federal Reserve Act; 12 USC 329 Federal Reserve Act Citation: CFR 12 C FR 208.13; 225, Appendix A; 12 C FR 263.35 12 C FR Abstract: In April 1985, the Board adopted amended Capital Adequacy Guidelines for bank holding companies and State member banks as well as a regulation embodying procedures to enforce these Guidelines (50 FR 16057, April 24, 1985). The amended Guidelines were adopted pursuant to the International Lending Supervision Act of 1983, which requires that the Board "cause banking institutions to achieve and maintain adequate capital.” The Guidelines establish uniform minimum capital levels for all federally regulated banks (in conjunction with the Federal Deposit Insurance Corporation and the Comptroller of the Currency). The Guidelines also raise the minimum capital requirements for larger regional and multinational state member banks and bank holding companies, and establish a uniform minimum capital level for large and small banks and bank holding companies. The impact on small institutions is a slight easing of minimum primary capital requirements. Timetable: A ction D ate Board requested comment Board adopted Guidelines- Small Entity: No FR C ite 0 7 /3 0 /8 4 49 FR 30317 0 4 /2 4 /8 5 50 FR 16057 Commission (FTC) Act requires that whenever the FTC enacts a rule covering unfair or deceptive acts or practices, the Federal Reserve Board must, within 60 days of the rule’s effective date, promulgate a substantially similar rule governing banks. The Board may decline to issue such a rule only if the Board determines that such acts or practices of banks are not unfair or deceptive or that implementation of the rule with respect to banks would seriously conflict with essential monetary and payment systems policies of the Board. In March 1984, the FTC published a trade regulation rule known as the Credit Practices Rule (49 FR 7740, March 1, 1984), which prohibits certain provisions that sometimes appear in consumer credit contracts to aid in the collection of unpaid debts. It also imposed certain specific disclosure and contractual requirements on creditors. The rule went into effect on March 1, 1985, and applies only to non-financial institution creditors. W hen the FTC first published the proposed Credit Practices Rule in 1975, the Board published a substantially similar (cont) Timetable: Action Date FR Cite FTC proposed Credit Practices Rule 0 4 /0 0 /7 5 40 FR 16347 Similar proposal published by Board FTC adopted 0 4 /0 0 /7 5 40 FR 19495 0 3 /0 1 /8 4 49 FR 77 40 Credit Practices Rule Federal Register / Vol. 50, No. 209 / Tuesday, October 29, 1985 / Unified Agenda FRS Completed Action Date Board published 1 1 /3 0 /8 4 similar proposal Board adopted 0 4 /2 2 /8 5 final rule FR Cite 49 FR 47041 50 FR 16695 Small Entity: Yes Additional Information: ABSTRACT CONT: proposal. The Board received public comments and made them available to the FTC. In November 1984, the Board published for comment a proposal substantially similar to the FTC’s final Credit Practices Rule and requested comment on whether the FTC’s rule should apply to banks. In April 1985, the Board adopted a final rule with an effective date of January 1, 1986 (50 FR 16695, April 22, 1985). Under the rule, commercial bank lenders including small banks, may incur some one-time costs in preparing and revising forms, and in changing certain procedures to comply with the rule. Agency Contact Maureen P. English, Section Chief, Federal Reserve System, Division of Consumer and Community Affairs, 202 452-3867 RIN: 44958 7 1 00-A A 4 2 3841. REGULATION: AA - UNFAIR OR DECEPTIVE ACTS OR PRACTICES L e g a l A u t h o r it y : 15 Trade Commission Act USC 57a Federal CFR Citation: 12 C FR 227 Abstract: In November 1984, the Federal Trade Commission (FTC) published a final trade regulation rule on the sale of used motor vehicles, known as the “Used Car Rule," (49 FR 45692 November 29, 1984), effective May 9, 1985. In adopting the Used Car Rule, the FTC specifically excluded banks and other financial institutions from the rule’s “dealer” definition. This conclusion was based upon the determination that banks do not engage in the sale of used motor vehicles in a retail sales environment, and, absent such an environment, the risk of the deceptive practices found to be characteristic of used car sales presentations was substantially diminished. Generally, the Board is required by the Federal Trade Commission Act to issue a substantially similar rule for banks whenever tne Commission adopts a final trade regulation rule under its authority to prohibit unfair or deceptive acts or practices. The Board has concluded, however, that since banks do not engage in the activity being regulated by the Commission —the sale of used motor vehicles in a retail sales environment —it is unnecessary to adopt a rule substantially similar to (cont) Timetable:_____________________ Action FTC adopted the “ Used Car Rule" Board decided not to adopt rule Date FR Cite 1 1 /2 9 /8 4 49 FR 45692 0 3 /2 6 /8 5 50 FR 11945 CONT: the Commission’s Used Car Rule, that would be applicable to banks (50 FR 11945, March 26, 1985). Agency Contact: Gerald Hurst, Senior Attorney, Federal Reserve System, Division of Consumer and Community Affairs, 202 452-3667 71 0 0 -A A 4 9 3842. REGULATION: EQUAL EMPLOYMENT OPPORTUNITY (DOCKET NUMBER: R-G527) Legal Authority: 12 USC 244 Federal Timetable: Action Board requested comment Board issued final rule Date FR Cite 0 8 /2 4 /8 4 49 FR 33 822 0 5 /0 2 /8 5 50 FR 18767 Small Entity: No Additional Information: ADDITIONAL AGENCY CONTACT: Stephen L. Siciliano, Special Assistant to the General Counsel, Legal Division, (202) 452-3920. Agency Contact Portia Thompson, Small Entity: No Additional Information: ABSTRACT RIN: Board personnel and management policies and practices. Re serve Act, Sec 10(4) CFR Citation: 12 CFR 268 Abstract: In August 1984, the Board issued for public comment proposals to revise and expand its Equal Employment Opportunity regulation for the following purposes: (1) to conform the regulation insofar as possible to existing regulations of the Equal Employment Opportunity Commission governing the substantive rights of employees and applicants for employment with Federal agencies: (2) to designate clear responsibility for equal employment opportunity functions in light of changes in the Board’s organizational structure; and (3) to prohibit discrimination against the handicapped in programs and activities conducted by the Board. In April 1985, after reviewing and considering all public comments, the Board adopted a revised rule with an effective date of June 1,1985 (50 FR 18767, May 2, 1985). This proposal will not have a significant economic impart on a substantial number of small entities since it focuses primarily on EEO Programs Officer, Federal Reserve System. Office of Staff Director for Management, 202 452-3549 RIN: 7 1 0 0 -A A 46 3843. POLICY STATEMENT ON RISKS ON LARGE-DOLLAR TRANSFER SYSTEMS (DOCKET NUMBER: R-0515) Legal Authority: 12 USC 221 et seq CFR Citation: 00 C FR None Abstract: In April 1984, the Board requested public comment on several proposals to reduce risks on largedollar wire transfer systems (49 FR 13186, April 3, 1984). The Board took this action in response to its concern that developments that might arise in connection with such networks could destabilize financial markets and the economy. In May 1985, after reviewing the comments, the Board took the following actions: (1) effective March 27, 1986, no large-dollar payment network will be eligible for Federal Reserve net settlement services unless it (a) requires each participant to establish a limit on the net value of transfers that it will receive from each other participant; (b) establishes a limit on the net debit position of each participant that is reasonably designed to reduce risks to other participants on that network; (c) develops and implements a system that will reject any payment that would reach either such limit; and (d) agrees to provide transaction data to its Reserve Bank on request. (2) The Board also strongly encouraged each institution running daylight overdrafts on Fedwire or participating on a private large-dollar network to adopt voluntarily by December 31, 1965, a (cont) Federal Register / Vol. 50, No. 209 / Tuesday, October 29, 1985 / Unified Agenda 44960 FRS Com pleted A ctio n s Additional information: ABSTRACT Timetable: A ction D ate Board requested comm ent Board extended comm ent period until Board adopted policy Small Entity: No FR C ite 0 4 /0 3 /8 4 4 9 FR 13186 1 0 /2 9 /8 4 49 FR 24595 0 5 /2 2 /8 5 50 FR 21 120 CONT: cross-system limit on its net debit position following guidelines set out in an appendix to the Board’s policy statement (50 FR 21120, May 22, 1985). Because large-dollar funds transfer systems are typically used frequently only by the largest financial institutions, it is not anticipated that the proposals would have a significant economic impact on a substantial number of small entities. In addition to adopting a policy statement, the Board requested public comment on three additional proposals to reduce risk (see Entry 14). Agency Contact: Edward C. Ettin, Deputy Director, Federal Reserve System, Division of Research and Statistics, 202 452-3368 R1N: 7 1 00-A A 4 7 [FR Doc. 85-21507 Filed 10-28-85; 8:45am] BILLING CODE 6210-01-T
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