Unknown. Final regulation

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--- schema: federal-register doc_type: fedreg source_file: FR-2001-04-05.xml --- 66 66 Thursday, April 5, 2001 Contents Agriculture Agriculture Department See Federal Crop Insurance Corporation See Forest Service Antitrust Antitrust Division NOTICES National cooperative research notifications: 4C Founders; correction, 18110-18111 01-8409 Enterprise Computer Telephony Forum, 18111 01-8411 Organic ASICS, 18111 01-8408 Southwest Research Institute, 18111 01-8410 Centers Centers for Disease Control and Prevention NOTICES Agency information collection activities:

Submission for OMB review; comment request, 18093 01-8387 Meetings: National Institute for Occupational Safety and Health— Measuring improved metrics of electric and magnetic fields exposure in electric utility; study protocol peer review, 18093-18094 01-8386 Children Children and Families Administration NOTICES Grant and cooperative agreement awards: Welfare Information Network, 18094 01-8423 Coast Guard Coast Guard PROPOSED RULES Regattas and marine parades: Chester River, Kent Island Narrows, MD; fireworks display, 18056-18058 01-8312 NOTICES Consumer advisory notices:

Recreational boaters; fuel leak hazard involving Evinrude FICHT 200 horsepower and 225 horsepower outboard motors, 18143-18144 01-8311 Meetings: Commercial Fishing Industry Vessel Advisory Committee, 18144 01-8310 Reports and guidance documents; availability, etc.: Merchant mariners as officers in charge of engineering watches or as designated duty engineers in periodically unmanned engine rooms; proficiency guidelines, 18145-18146 01-8313 Commission of Fine Commission of Fine Arts NOTICES Meetings, 18073 01-8403 Corporation Corporation for National and Community Service NOTICES Foster Grandparent and Senior Companion Programs; income eligibility levels, 18073-18075 01-8345 Customs Customs Service NOTICES Tariff-rate quotas:

Tuna fish, 18148 01-8305 Uruguay Round Agreements Act (URAA): Foreign entities violating textile transshipment and country of origin rules; list, 18148-18150 01-8304 Defense Defense Department NOTICES Meetings: Defense Finance and Accounting Service Board of Advisors, 18075 01-8398 Defense Intelligence Agency Science and Technology Advisory Board, 18075 01-8318 Dependents’ Education Advisory Council, 18075 01-8317 Nuclear Weapons Surety Joint Advisory Committee, 18076 01-8319 Science Board, 18076 01-8397 Science Board task forces, 18076 01-8320 Education Education Department NOTICES Agency information collection activities:

Submission for OMB review; comment request, 18076-18078 01-8391 01-8562 01-8563 Employment Employment and Training Administration NOTICES Adjustment assistance: BP Exploration, Alaska, Inc., 18119 01-8333 Empire Specialty Steel Corp., 18119-18120 01-8327 Intercontinental Branded Apparel, 18120 01-8329 Island Screenworkers, 18120 01-8332 LTV Steel Co., Inc., 18120 01-8331 01-8337 Mannor Corp., 18120-18121 01-8324 Motorola Energy Systems Group, 18121 01-8323 Paper, Calmenson & Co., 18121 01-8330 Perfect Fit Industries, 18121 01-8335 Perfect Fit Industries et al., 18121-18123 01-8338 Rayovac Corp., 18123 01-8326 Security Chain Co., 18123 01-8336 Adjustment assistance and NAFTA transitional adjustment assistance:

Barry Callebaut USA, Inc., 18116 01-8334 Country Roads, Inc., 18116-18117 01-8328 Rossville Chromatex et al., 18117-18119 01-8339 Alien temporary employment labor certification process: H-2A temporary, alien agricultural employment; worker rejection and termination; general administration letter clarifying procedural guidance, 18123 01-8343 NAFTA transitional adjustment assistance: Cooper Standard Automotive, 18123 01-8325 Perfect Fit Industries, 18124 01-8322 Energy Energy Department See Federal Energy Regulatory Commission NOTICES Environmental statements; availability, etc.:

National Ignition Facility, 18078-18082 01-8396 EPA Environmental Protection Agency RULES Air pollution control; new motor vehicles and engines: Motor vehicle inspection/maintenance (I/M) program requirements; on-board diagnostic checks, 18155-18179 01-8276 PROPOSED RULES Radiation protection programs: Rocky Flats Environmental Technology Site— Transuranic radioactive waste for disposal at Waste Isolation Pilot Plant; waste characterization program documents availability, 18058-18059 01-8492 NOTICES Water pollution control:

Total maximum daily loads— Mermentau and Vermilion/Teche river basins, LA; determinations that TMDLs are not needed, 18087-18089 01-8277 Executive Executive Office of the President See Presidential Documents See Trade Representative, Office of United States Export Export-Import Bank NOTICES Meetings: Sub-Saharan Africa Advisory Committee, 18089 01-8401 FAA Federal Aviation Administration RULES Airworthiness directives: Airbus, 18045-18047 01-7960 DG Flugzeugbau GmbH, 18047-18050 01-8067 VOR Federal airways, 18050-18051 01-8439 PROPOSED RULES Restricted areas, 18055-18056 01-8438 NOTICES Exemption petitions; summary and disposition; correction, 18153 C1-7501 FCC Federal Communications Commission PROPOSED RULES Common carrier services:

Americans with Disabilities Act; implementation— Telecommunications relay services; coin sent-paid calls, 18059-18061 01-8392 Radio services, special: Fixed microwave services— Multichannel video and data distribution service; 12.2-12.7 GHz band, 18061-18062 01-8393 NOTICES Agency information collection activities: Proposed collection; comment request, 18089-18091 01-8314 01-8316 Reporting and recordkeeping requirements, 18091 01-8315 Federal Crop Federal Crop Insurance Corporation NOTICES Agency information collection activities:

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Merced County, CA, 18146 01-8412 Federal Housing Federal Housing Enterprise Oversight Office RULES Practice and procedure: Federal National Mortgage Association and Federal Home Loan Mortgage Corporation— Assessments, 18037-18040 01-8424 Civil money penalties, etc., 18040-18045 01-8425 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies: Formations, acquisitions, and mergers, 18092 01-8390 Permissible nonbanking activities, 18092-18093 01-8389 Fine Arts Fine Arts Commission See Commission of Fine Arts Fish Fish and Wildlife Service PROPOSED RULES Endangered and threatened species:

Critical habitat designations— Rock gnome lichen, 18062-18068 01-8344 NOTICES Environmental statements; availability, etc.: Incidental take permits— Brevard County, FL; Florida scrub-jay, 18106-18107 01-8415 Environmental statements; notice of intent: Critical habitat designations— Rio Grande silvery minnow, 18107-18109 01-8465 Meetings: Alaska Migratory Bird Co-management Council, 18109 01-8407 Food Food and Drug Administration NOTICES Agency information collection activities:

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Proposed collection; comment request, 01-8426 18151-18152 01-8427 Inflation adjustment factor and reference prices: Nonconventional source fuel credit, 18152 01-8429 Meetings: Citizen Advocacy Panels— Florida District, 18152 01-8428 International International Trade Commission NOTICES Import investigations: Spring table grapes from— Chile and Mexico, 18109-18110 01-8383 Justice Justice Department See Antitrust Division See Immigration and Naturalization Service Labor Labor Department See Employment and Training Administration NOTICES Agency information collection activities:

Submission for OMB review; comment request, 18114-18116 01-8340 01-8341 01-8342 Land Land Management Bureau NOTICES Realty actions; sales, leases, etc.: California; correction, 18109 01-8406 NASA National Aeronautics and Space Administration RULES Acquisition regulations: Emergency medical services and evacuation, 18053-18054 01-8395 Safety and Health (Short Form) clause, 18051-18053 01-8394 NIH National Institutes of Health NOTICES Agency information collection activities: Proposed collection; comment request, 18097-18098 01-8354 Inventions, Government-owned; availability for licensing, 01-8374 18098-18100 01-8375 01-8376 Meetings:

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Virginia Electric & Power Co., 18124 01-8399 Office Office of Federal Housing Enterprise Oversight See Federal Housing Enterprise Oversight Office Office of U.S. Trade Office of United States Trade Representative See Trade Representative, Office of United States Presidential Presidential Documents PROCLAMATIONS *Special observances:* Former Prisoner of War Recognition Day, National (Proc. 7421), 18181-18184 01-8581 Pan American Day and Pan American Week (Proc. 7420), 18035-18036 01-8506 Public Public Health Service See Centers for Disease Control and Prevention See Food and Drug Administration See Health Resources and Services Administration See National Institutes of Health SEC Securities and Exchange Commission NOTICES Self-regulatory organizations; proposed rule changes:

American Stock Exchange LLC, 18124-18126 01-8348 01-8350 Boston Stock Exchange, Inc., 18126-18127 01-8349 Chicago Board Options Exchange, Inc., 18127-18134 01-8346 01-8347 01-8353 New York Stock Exchange, Inc., 18134-18136 01-8351 Pacific Exchange, Inc., 18136-18137 01-8352 State State Department NOTICES Agency information collection activities: Submission for OMB review; comment request, 18137-18138 01-8419 01-8420 Grants and cooperative agreements; availability, etc.: International Visitor Program, 18138-18142 01-8421 Trade Trade Representative, Office of United States NOTICES Trade Policy Staff Committee:

World Trade Organization Ministerial Conference; objectives and preparations; comment request, 18142-18143 01-8384 Transportation Transportation Department See Coast Guard See Federal Aviation Administration See Federal Highway Administration Treasury Treasury Department See Customs Service See Internal Revenue Service NOTICES Agency information collection activities: Submission for OMB review; comment request, 18146-18148 01-8321 Separate Parts In This Issue Part II Environmental Protection Agency, 18155-18179 01-8276 Part III The President, 18181-18184 01-8581 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws. 66 66 Thursday, April 5, 2001 Rules and Regulations DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Office of Federal Housing Enterprise Oversight 12 CFR Part 1701 RIN 2550-AA15 Assessments AGENCY:

Office of Federal Housing Enterprise Oversight, HUD. ACTION: Final regulation. SUMMARY: The Office of Federal Housing Enterprise Oversight is issuing a final regulation setting forth its policy and procedures with respect to the annual assessment of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation as provided by statute. EFFECTIVE DATE: The effective date of this regulation is May 7, 2001. FOR FURTHER INFORMATION CONTACT: David W. Roderer, Deputy General Counsel, telephone

(202)414-3804; or Isabella W. Sammons, Associate General Counsel, telephone

(202)414-3790, (not a toll-free number); Office of Federal Housing Enterprise Oversight, Fourth Floor, 1700 G Street, NW., Washington, DC 20552. The telephone number for the Telecommunications Device for the Deaf is

(800)877-8339. SUPPLEMENTARY INFORMATION: Background Title XIII of the Housing and Community Development Act of 1992, Pub. L. 102-550, entitled the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (Act), established OFHEO as an independent office within the Department of Housing and Urban Development to ensure that the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the Enterprises) are capitalized adequately and operate safely and in compliance with applicable laws, rules and regulations. Section 1316 of the Act (12 U.S.C. 4516) provides that OFHEO may establish and collect annual assessments from the Enterprises. OFHEO has been assessing the Enterprises pursuant to procedures developed under section 1316. OFHEO recently published a proposed regulation for comment to spell out and clarify its policies and procedures with respect to such assessments at 65 FR 81768 (December 27, 2000). Comments In response to the proposed regulation, OFHEO received comments from Freddie Mac and Fannie Mae, as follows: Adequately Capitalized (§ 1701.2(b)) One Enterprise suggested a technical change to the proposed definition of the term “adequately capitalized.” OFHEO agrees that such change will clarify the definition and accordingly modifies § 1701.2(b) to read: *Adequately capitalized* means the adequately capitalized capital classification under section 1364 of the Act (12 U.S.C. 4614). Enterprise (§ 1701.2(d)) One Enterprise suggested a revision to the definition of the term “Enterprise” to include also a definition of the term “Enterprises.” OFHEO agrees that such a technical change would be appropriate and has modified § 1701.2(d) of the proposed regulation to read:

(d)*Enterprise* means the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation; and the term “Enterprises” means, collectively, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Surplus Funds (§ 1701.2(e)) In connection with a comment on “Increase in Semiannual Payments,” § 1701.4, discussed below, one Enterprise suggested that the regulation clarify that in calculating the following year's assessment, OFHEO will credit any surplus funds that were previously collected pursuant to § 1701.4 in addition to those surplus funds collected pursuant to § 1701.3. OFHEO agrees that this clarification is best accomplished by a technical modification of the definition of the term “surplus funds,” as follows:

(e)*Surplus funds* means funds that are not obligated as of September 30 of each fiscal year that were collected from any Enterprise pursuant to § 1701.3 or § 1701.4. Total Assets (§ 1701.2(f)) Section 1701.2(f) of the proposed regulation defines the term “total assets.” Both Enterprises suggested that the definition incorporate by reference the methodology applied under the OFHEO minimum capital regulation at 12 CFR part 1750, rather than describe such methodology in detail. OFHEO agrees with the comment to incorporate 12 CFR part 1750 by reference and accordingly modifies § 1701.2(f) to read:

(f)*Total assets* means the sum, as of the most recent June quarterly minimum capital report of the Enterprise, of the amounts of the following assets that are used to calculate the quarterly minimum capital requirement of the Enterprise under 12 CFR part 1750:

(1)On-balance sheet assets;

(2)Off-balance sheet mortgage-backed securities; and

(3)Other off-balance sheet obligations. One Enterprise suggested that OFHEO calculate the allocation of the annual assessment semiannually rather than annually. If this suggestion were accepted, the definition of the term “total assets” would require additional modification. As discussed more fully below under “Allocation and Proportional Share,” § 1701.3(b), OFHEO has rejected the recommendation and determined not to calculate the annual assessment semiannually; therefore, additional modification of the definition of the term “total assets” is not required. Establishment of Assessment (§ 1701.3(a)) Section 1701.3(a) of the proposed regulation recites the statutory bases of the authority of the Director to collect the annual assessment from the Enterprises. One Enterprise recommended that OFHEO reference the narrow statutory language of 12 U.S.C. 4516(a) (section 4516(a)), rather than the amplifying statutory language of 12 U.S.C. 4516(f) (section 4516(f)), in determining the amount of the assessment that may be collected. Section 4516(a) provides that the Director may collect an annual assessment “in an amount not exceeding the amount sufficient to provide for reasonable costs and expenses of [OFHEO], including the expenses of any examinations under [12 U.S.C. 4517].” In further delineating the authority of OFHEO, section 4516(f) provides more broadly that the amount of the assessment collected may be used for “carrying out the responsibilities of the Director relating to the enterprises” and “necessary administrative and nonadministrative expenses of [OFHEO] to carry out the purposes of [the Act].” The narrow language of section 4516(a) is not reasonably to be read to restrict the amount of funds that may be collected to an amount arguably less than contemplated under section 4516(f). It would be inconsistent with a reading of the Act, as a whole, to set forth in the regulation restrictions on the collection of funds that are greater than the restrictions on the use of such funds after they are collected. OFHEO, therefore, has determined to reject and not to make the recommended modification. While referring only to examination expenses, the non-exclusive language of the law presumably contemplates the use of the authorized assessment to meet all costs and expenses of the agency. Allocation and Proportional Share (§ 1701.3(b)) One Enterprise suggested that OFHEO calculate the proportional share of the annual assessment for each Enterprise semiannually rather than annually. The Enterprise suggested that it would be more equitable to the Enterprise to have a subsequent recalculation of its proportional share because the total assets of the Enterprises may vary during any year. There is, however, no overriding reason to depart from the statutory scheme that clearly contemplates that the proportional share to be paid by each Enterprise is to be calculated on an annual basis. Therefore, OFHEO has determined to reject and not to make the suggested modification to calculate the proportional share semiannually. Timing of Payment (§ 1701.3(c)) One Enterprise pointed out that proposed § 1701.3(c) mistakenly contains inapplicable references to other sections of the proposed regulation. Section 1701.3(c)(1) is accordingly revised to correct and clarify which references are applicable. Surplus Funds (§ 1701.3(d)) One Enterprise suggested that proposed § 1701.3(d) be modified to clarify that surplus funds be credited fully to the first semiannual assessment payment. Section 1316(d) of the Act (12 U.S.C. 4516(d)) requires that surplus funds “be credited to the assessment to be collected from the enterprise for the following year,” without specifying to which semiannual payment such surplus funds must be credited. OFHEO cannot determine the amount, if any, of surplus funds until about mid-October; therefore, OFHEO cannot credit the surplus funds to the first semiannual payment due on or before October 1, but rather credits the surplus funds to the second semiannual payment due on or before April 1. Consequently, OFHEO cannot adopt the suggestion that would require it to credit surplus funds to the first semiannual payment. Where OFHEO is operating under one or more continuing resolutions and does not receive its full appropriation until later in the fiscal year, OFHEO may be able to determine the amount of surplus funds before the first full semiannual payment is made. In such a case, OFHEO has and will continue to credit the surplus funds to the first full semiannual payment. The Enterprise also suggested that, in any instance when OFHEO determines that there was a surplus for the prior year after the first semiannual payment has been made, OFHEO immediately return such surplus to the Enterprises, *i.e.,* refund the overpayment of the first semiannual payment. OFHEO has determined not to adopt this suggestion because section 1316(d) of the Act (12 U.S.C. 4516(d)) requires that surplus funds be credited to the next annual assessment, not refunded as an overpayment. Increase in semiannual payments (§ 1701.4) Section 1701.4 of the proposed regulation sets forth the statutory authority of OFHEO to increase the semiannual payment of an Enterprise that is not classified as adequately capitalized. Both Enterprises suggested that this section include the regulatory purposes for which such an increase may be used, as provided in 12 U.S.C. 4516(c). OFHEO agrees and modifies § 1701.4 to read: The Director, in his or her discretion, may increase any semiannual payment to be collected under § 1701.3 from an Enterprise that is not classified as adequately capitalized as necessary to pay additional estimated costs of regulation of the Enterprise. Notice and Review (§ 1701.5) Section 1701.5 of the proposed regulation requires that the Director provide written notice of the annual assessment, the semiannual payments, and any partial payments to be collected from each Enterprise. It also provides that the Enterprises receive notice of any changes to the assessment procedures that the Director, in his or her sole discretion, deems necessary under the circumstances. One Enterprise requested that actual notice of any semiannual payment be made at least five business days prior to the due date. A minimum five-day-notice, the Enterprise asserted, is needed for the Enterprise to review the calculation, process the notice of payment, and make the payment in a timely manner. OFHEO is not required by statute to provide a minimum notice period for any semiannual payment and believes that it would be inappropriate to bind itself to a specific notice period. OFHEO, nevertheless, will continue to provide the Enterprises with ample notice of the actual semiannual payment. The Enterprise also suggested that any change to current assessment procedures would require notice and comment rulemaking under the Administrative Procedure Act (APA). To the extent, however, that a particular change is not subject to the APA notice and comment procedures, the Enterprise further suggested that notice of such change should be given at least 30 days in advance of the implementation of the change in order for the Enterprises to review, understand, prepare for, and respond to the change. OFHEO does not agree that every change to the assessment procedures would require notice and comment rulemaking under the APA. Furthermore, OFHEO has determined not to adopt the 30-days advance notice suggested by the Enterprise because to do so would unnecessarily restrict the statutory authority of OFHEO to assess and carry out its statutory duties and responsibilities with regard to the Enterprises and the mortgage market. Delinquent Payment (§ 1701.6) Section 1701.6(a) of the proposed regulation provides that the Director may assess interest and penalties on any delinquent payment of any assessment under this part in accordance with 31 U.S.C. 3717 (interest and penalties on claims) and 12 CFR part 1704 (debt collection). One Enterprise suggested that § 1701.6(a) be modified to provide details as to how the interest on delinquent payments is to be calculated pursuant guidance published by the Department of the Treasury (Treasury guidance) as required by 31 U.S.C. 3717 and 12 CFR part 1704. OFHEO does not agree that providing such detail in § 1701.6(a) is necessary or appropriate. OFHEO is required to follow the Treasury guidance regardless whether the details of such guidance are spelled out in the regulation. By not spelling out the details, OFHEO avoids the need to revise the regulation if the Treasury guidance were to be revised. In addition to the modifications discussed above, which OFHEO considers to be nonsubstantive, OFHEO makes minor editorial modifications to the proposed regulation. Accordingly, OFHEO has determined to issue the proposed regulation, as modified, as a final regulation. Regulatory Impact Executive Order 12866, Regulatory Planning and Review The final regulation is not classified as a significant rule under Executive Order 12866 because it will not result in an annual effect on the economy of $100 million or more or a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or have significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic or foreign markets. Accordingly, no regulatory impact assessment is required and this final regulation has not been submitted to the Office of Management and Budget for review. Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ) requires that a regulation that has a significant economic impact on a substantial number of small entities, small businesses, or small organizations must include an initial regulatory flexibility analysis describing the regulation's impact on small entities. Such an analysis need not be undertaken if the agency has certified that the regulation will not have a significant economic impact on a substantial number of small entities. 5 U.S.C. 605(b). OFHEO has considered the impact of the final regulation under the Regulatory Flexibility Act. The General Counsel of OFHEO certifies that the regulation, as herein adopted, is not likely to have a significant economic impact on a substantial number of small business entities because the regulation is applicable only to the Enterprises, which are not small entities for purposes of the Regulatory Flexibility Act. List of Subjects in 12 CFR Part 1701 Government Sponsored Enterprises, Reporting and recordkeeping requirements. Accordingly, for the reasons stated in the preamble, OFHEO adds 12 CFR part 1701 as follows: PART 1701—ASSESSMENTS Sec. 1701.1 Purpose. 1701.2 Definitions. 1701.3 Annual assessment. 1701.4 Increase in semiannual payment. 1701.5 Notice and review. 1701.6 Delinquent payment. 1701.7 Enforcement of payment. 1701.8 Deposit in fund. Authority: 12 U.S.C. 4513(b)(1) and 12 U.S.C. 4516. § 1701.1 Purpose. This part sets forth the policy and procedures of OFHEO with respect to the establishment and collection of the annual assessments of the Enterprises under section 1316 of the Act (12 U.S.C. 4516). § 1701.2 Definitions. For purposes of this part, the term—

(a)*Act* means the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, Title XIII of the Housing and Community Development Act of 1992, Pub. L. 102-550, section 1301, Oct. 28, 1992, 106 Stat. 3672, 3941-4012

(1993)(12 U.S.C. 4501 *et seq.* ).

(b)*Adequately capitalized* means the adequately capitalized capital classification under section 1364 of the Act (12 U.S.C. 4614).

(c)*Director* means the Director of the Office of Federal Housing Enterprise Oversight or his or her designee.

(e)*Surplus funds* means funds that are not obligated as of September 30 of each fiscal year that were collected from any Enterprise pursuant to § 1701.3 or § 1701.4.

(1)On-balance sheet assets;

(2)Off-balance sheet mortgage-backed securities; and

(3)Other off-balance sheet obligations.

(g)*OFHEO* means the Office of Federal Housing Enterprise Oversight. § 1701.3 Annual assessment.

(a)*Establishment of assessment.* The Director may, to the extent provided in appropriation acts, establish and collect from the Enterprises an annual assessment for each fiscal year, as allocated under paragraph

(b)of this section. The amount of the annual assessment shall not exceed the estimated amount to be sufficient to provide for the necessary administrative and non-administrative expenses to carry out the responsibilities of the Director relating to the Enterprises and to carry out the purposes of the Act.

(b)*Allocation and proportional share.* The annual assessment established under paragraph

(a)of this section shall be allocated between the Enterprises. Each Enterprise shall pay a proportional share of the annual assessment that bears the same ratio to the total annual assessment as the total assets of each Enterprise bears to the total assets of both Enterprises.

(c)*Timing and amount of semiannual payment.*

(1)Each Enterprise shall pay on or before October 1 and April 1 of each fiscal year an amount of one-half of its proportional share of the annual assessment, except:

(i)As provided in paragraph (c)(2) of this section;

(ii)To the extent surplus funds are credited under paragraph

(d)of this section; and

(iii)To the extent a semiannual payment is increased under § 1701.4.

(2)If OFHEO is operating under a continuing appropriation as of October 1 of any year, each Enterprise shall pay, on such date as determined by the Director, an amount calculated by applying the annual assessment proportion calculated under paragraph

(b)of this section to the amount authorized for expenditure. When OFHEO receives a regular appropriation, the amount of the allocation share of the annual assessment collected from each Enterprise shall be reduced by any partial payments made by each Enterprise in connection with any continuing appropriations.

(d)*Surplus funds.* Surplus funds shall be credited to the annual assessment by reducing the amount collected by the amount of the surplus funds. Surplus funds shall be allocated in the same proportion in which they were collected, except as determined by the Director. § 1701.4 Increase in semiannual payment. The Director, in his or her discretion, may increase any semiannual payment to be collected under § 1701.3 from an Enterprise that is not classified as adequately capitalized as necessary to pay additional estimated costs of regulation of the Enterprise. § 1701.5 Notice and review.

(a)*Written notice.* The Director shall provide each Enterprise with written notice of the annual assessment, the semiannual payments and any partial payments to be collected under this part. In addition, the Director shall provide each Enterprise with written notice of any changes in the assessment procedures that the Director, in his or her sole discretion, deems necessary under the circumstances.

(b)*Request for review.* At the written request of an Enterprise, the Director, in his or her discretion, may review the calculation of the proportional share of the annual assessment, the semiannual payments, and any partial payments to be collected under this part. The determination of the Director is final. Except as provided by the Director, review by the Director does not suspend the requirement that the Enterprise make the semiannual payment or partial payment on or before the date it is due. § 1701.6 Delinquent payment.

(a)*Interest and penalties.* The Director may assess interest and penalties on any delinquent semiannual payment or partial payment collected under this part in accordance with 31 U.S.C. 3717 (interest and penalty on claims) and 12 CFR part 1704 (debt collection). The Director may waive interest and penalties in his or her discretion.

(b)*Transfer to general fund.* Any interest and penalties collected under this section shall be transferred to the general fund of the Treasury of the United States. § 1701.7 Enforcement of payment. Notwithstanding § 1701.6, the Director may enforce the payment of any assessment under this part pursuant to the authorities of sections 1371 (12 U.S.C. 4631) (cease-and-desist proceedings), 1372 (12 U.S.C. 4632) (temporary cease-and-desist orders), and 1376 (12 U.S.C. 4636) (civil money penalties) of the Act. § 1701.8 Deposit in fund. OFHEO shall deposit any annual assessment collected under this part in the Federal Housing Enterprise Oversight Fund established in the Treasury of the United States. Dated: April 2, 2001. Armando Falcon, Jr., Director, Office of Federal Housing Enterprise Oversight. [FR Doc. 01-8424 Filed 4-4-01; 8:45 am]

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