Unknown. Final rule and interim rule; technical amendments

3,966 words·~18 min read·/register/2001/04/13/01-9123·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2001-04-13.xml --- 66 72 Friday, April 13, 2001 Contents Actuaries Actuaries, Joint Board for Enrollment See Joint Board for Enrollment of Actuaries Agency Agency for Toxic Substances and Disease Registry NOTICES Meetings: Public Health Service Activities and Research at DOE Sites Citizens Advisory Committee, 19167 01-9155 Agricultural Agricultural Marketing Service PROPOSED RULES Potatoes; fresh Russet potato diversion program; 2000 crop, 19099-19102 01-9261 Agriculture Agriculture Department See Agricultural Marketing Service See Cooperative State Research, Education, and Extension Service See Food Safety and Inspection Service See Rural Utilities Service Air Force Air Force Department NOTICES Privacy Act:

Systems of records, 19145-19147 01-9142 01-9143 Alcohol Alcohol, Tobacco and Firearms Bureau RULES Organization, functions, and authority delegations: Appropriate ATF officers, 19084-19089 01-9237 01-9238 Technical amendments Correction, 19089 01-9240 Army Army Department NOTICES Privacy Act: Systems of records, 19147-19156 01-9134 01-9135 01-9136 01-9137 01-9138 Blind Blind or Severely Disabled, Committee for Purchase From People Who Are See Committee for Purchase From People Who Are Blind or Severely Disabled Centers Centers for Disease Control and Prevention NOTICES Committees; establishment, renewal, termination, etc.:

Smoking and Health Interagency Committee, 19167-19168 01-9154 Grants and cooperative agreements; availability, etc.: State Oral Disease Prevention Programs, 19168-19173 01-9153 Meetings: National Center for Infectious Diseases— Scientific Counselors Board, 19173 01-9152 Coast Guard Coast Guard RULES Ports and waterways safety: East River, NY; safety zone, 19092-19094 01-9178 Regattas and marine parades: Charleston to Bermuda Race, 19091-19092 01-9177 PROPOSED RULES Drawbridge operations:

North Carolina, 19105-19106 01-9176 NOTICES Agency information collection activities: Proposed collection; comment request; correction, 19281 01-9179 Submission for OMB review; comment request, 19281-19282 01-9180 National Preparedness for Response Exercise Program: Triennial exercise schedule for 2000, 2001, and 2002; comment request, 19282-19283 01-9182 Reports and guidance documents; availability, etc.: Chesapeake Bay waterway, Cove Point, MD; suitability for liquid hazardous gas or liquid natural gas marine traffic; letter of recommendation, 19283 01-9181 Commerce Commerce Department See International Trade Administration See National Institute of Standards and Technology Committee for Purchase Committee for Purchase From People Who Are Blind or Severely Disabled NOTICES Procurement list; additions and deletions, 19135-19137 01-9234 01-9235 CITA Committee for the Implementation of Textile Agreements NOTICES Cotton, wool, and man-made textiles:

Philippines, 19142-19143 01-9159 Cooperative Cooperative State Research, Education, and Extension Service NOTICES Grants and cooperative agreements; availability, etc.: Agricultural Risk Management Education Competitive Grants Program, 19343-19354 01-9197 Copyright Copyright Office, Library of Congress RULES Copyright office and procedures: Register of Copyrights; infringement and service of complaint in infringement action, 19094-19095 01-9236 Corporation Corporation for National and Community Service NOTICES Meetings:

Civilian Community Corps Advisory Board, 19143 01-9144 Defense Defense Department See Air Force Department See Army Department See Defense Logistics Agency See Navy Department NOTICES Agency information collection activities: Proposed collection; comment request, 19143-19144 01-9195 Meetings: Defense Finance and Accounting Service Board of Advisors, 19144 01-9133 Science Board task forces, 01-9131 19144-19145 01-9132 Defense Defense Logistics Agency NOTICES Privacy Act: Computer matching programs, 19156-19157 01-9139 Education Education Department NOTICES Grants and cooperative agreements; availability, etc.:

Bilingual education and minority languages affairs— Teachers and Personnel Program, 19355-19379 01-9064 Postsecondary education— Underground Railroad Educational and Cultural Program, 19323-19341 01-9126 Employment Employment and Training Administration NOTICES Adjustment assistance: Heidelberg Publishing Services, Inc., et al., 19209 01-9218 Money's Foods U.S., Inc., 19209 01-9216 Grants and cooperative agreements; availability, etc.: H-1B Technical Skills Training Program, 19209-19223 01-8651 Workforce Investment Act;

Sectoral Employment Demonstration Program, 19223-19233 01-8652 NAFTA transitional adjustment assistance: Georgia-Pacific Corp., 19234 01-9312 Inman Mills, 19234 01-9217 Employment Employment Standards Administration NOTICES Minimum wages for Federal and federally-assisted construction; general wage determination decisions, 19234-19236 01-8917 Energy Energy Department See Federal Energy Regulatory Commission NOTICES Meetings: Biological and Environmental Research Advisory Committee, 19160-19161 01-9249 Natural gas exportation and importation:

ProGas U.S.A., Inc., et al., 19161 01-9165 EPA Environmental Protection Agency RULES Air pollution control; new motor vehicles and engines: Tier 2/gasoline sulfur regulations, 19295-19311 01-8927 Air quality planning purposes; designation of areas: Colorado; CFR correction, 19095 01-55512 PROPOSED RULES Air pollution control; new motor vehicles and engines: Tier 2/gasoline sulfur regulations, 19311-19322 01-8928 NOTICES Environmental statements; availability, etc.: Agency statements— Comment availability, 19164 01-9242 Weekly receipts, 19163 01-9241 Executive Executive Office of the President See Trade Representative, Office of United States FAA Federal Aviation Administration RULES Class E airspace, 19082-19084 01-7419 01-7421 NOTICES Exemption petitions; summary and disposition, 19283-19284 01-9244 High density airports; takeoff and landing slots, slot exemption lottery, and slot allocation procedures:

International slots for winter 2001 scheduling season; submission deadline, 19284-19285 01-9243 FCC Federal Communications Commission RULES Common carrier services: Federal-State Joint Board on Universal Service— Contributions to Federal universal service support mechanisms; reporting and recordkeeping requirements, 19098 01-9037 Radio frequency devices: Digital device emissions, 19097-19098 01-9108 PROPOSED RULES Common carrier services: Wireless telecommunications services— 698-746 MHz spectrum band (television channels 52-59); reallocation and service rules, 19106-19132 01-9039 NOTICES Rulemaking proceedings; petitions filed, granted, denied, etc., 19164-19165 01-9160 FDIC Federal Deposit Insurance Corporation NOTICES Meetings;

Sunshine Act, 19165 01-9342 Federal Emergency Federal Emergency Management Agency RULES Flood insurance; communities eligible for sale: Various States, 19095-19097 01-9173 NOTICES Agency information collection activities: Submission for OMB review; comment request, 19165 01-9174 Federal Energy Federal Energy Regulatory Commission NOTICES Hydroelectric applications, 19162-19163 01-9149 *Applications, hearings, determinations, etc.:* Consumers Energy Co., 19161-19162 01-9150 Federal Reserve Federal Reserve System RULES Bank holding companies and change in bank control (Regulation Y):

Financial holding companies; permissible activities; acting as finder; and financial subsidiaries; technical amendments, 19081-19082 01-9123 NOTICES Reports and guidance documents; availability, etc.: Payments system risk; policy statement; Fedwire third-party access arrangements eliminated, 19165-19166 01-9124 Food Food and Drug Administration NOTICES Agency information collection activities: Proposed collection; comment request, 19174-19176 01-9120 01-9121 Submission for OMB review; comment request, 19176-19177 01-9119 Reports and guidance documents; availability, etc.:

Veterinary Medicinal Products, International Cooperation on Harmonisation of Technical Requirements for Registration— New biotechnological/biological veterinary medicinal products; stability testing, 19177-19178 01-9259 Food Food Safety and Inspection Service PROPOSED RULES Meat and poultry inspection: Processed meat and poultry products; performance standards Technical conference and meeting, 19102-19104 01-9196 Geological Geological Survey NOTICES Agency information collection activities:

Submission for OMB review; comment request, 19207 01-9158 Health Health and Human Services Department See Agency for Toxic Substances and Disease Registry See Centers for Disease Control and Prevention See Food and Drug Administration See Health Care Financing Administration See Health Resources and Services Administration See National Institutes of Health See Substance Abuse and Mental Health Services Administration NOTICES Organization, functions, and authority delegations:

Director, National Institutes of Health, 19167 01-9130 Health Health Care Financing Administration NOTICES Meetings: Evidence-based medicine use in Medicare coverage decision process; educational symposium, 19178-19179 01-9257 Health Health Resources and Services Administration NOTICES Grants and cooperative agreements; availability, etc.: Special Projects of National Significance— HIV Outreach and Intervention Model Development; Evaluation and Program Support Center, 19179-19181 01-9162 Housing Housing and Urban Development Department NOTICES Agency information collection activities:

Proposed collection; comment request, 19185-19186 01-9129 Grant and cooperative agreement awards: Public and Indian housing— Section 8 Housing Vouchers Assistance Programs, 19186-19207 01-9044 Grants and cooperative agreements; availability, etc.: Facilities to assist homeless— Excess and surplus Federal property, 19207 01-8942 Interior Interior Department See Geological Survey See National Park Service IRS Internal Revenue Service PROPOSED RULES Income taxes: Tentative carryback adjustment in consolidated return context; filing application guidance; cross-reference Hearing cancellation, 19104-19105 01-9118 NOTICES Agency information collection activities:

Proposed collection; comment request, 19285-19293 01-9219 01-9220 01-9221 01-9222 01-9223 01-9224 01-9225 01-9226 01-9227 01-9228 01-9229 01-9230 01-9231 01-9232 International International Boundary and Water Commission, United States and Mexico NOTICES Environmental statements; availability, etc.: Tijuana, Baja California; emergency deliveries of part of Mexico's Colorado River waters through Southern California aqueducts, 19239-19241 01-9156 International International Trade Administration NOTICES Agency information collection activities:

Proposed collection; comment request, 19137-19139 01-9189 01-9190 Joint Joint Board for Enrollment of Actuaries NOTICES Meetings: Actuarial Examinations Advisory Committee, 19135 01-9233 Labor Labor Department See Employment and Training Administration See Employment Standards Administration See Labor Statistics Bureau Labor Labor Statistics Bureau NOTICES Agency information collection activities: Proposed collection; comment request, 19236-19239 01-9213 01-9214 01-9215 Library Library of Congress See Copyright Office, Library of Congress Mexico Mexico and United States, International Boundary and Water Commission See International Boundary and Water Commission, United States and Mexico Morris Morris K.

Udall Scholarship and Excellence in National Environmental Policy Foundation NOTICES Agency information collection activities: Proposed collection; comment request, 19241-19243 01-9157 National Highway National Highway Traffic Safety Administration PROPOSED RULES Automotive fuel economy reports: Semi-annual reports; form and content; terminated, 19132-19134 01-8650 National Institute National Institute of Standards and Technology NOTICES Grants and cooperative agreements; availability, etc.:

Critical Infrastructure Protection Grants Program, 19139-19142 01-9247 NIH National Institutes of Health NOTICES Agency information collection activities: Proposed collection; comment request, 19181 01-9256 Meetings: National Institute of Child Health and Human Development, 19181-19182 01-9250 01-9251 National Institute of Dental and Craniofacial Research, 01-9254 19182-19183 01-9255 Scientific Review Center, 19183 01-9252 01-9253 National Park National Park Service NOTICES Agency information collection activities:

Proposed collection; comment request; correction, 19207 01-9172 National Register of Historic Places: Pending nominations, 19207-19209 01-9171 National Science National Science Foundation NOTICES Meetings: Advanced Networking Infrastructure and Research Special Emphasis Panel, 19243 01-9203 01-9204 Biological Sciences Special Emphasis Panel, 19243 01-9207 Civil and Mechanical Systems Special Emphasis Panel, 19244 01-9210 Computing-Communications Research Special Emphasis Panel, 19244 01-9205 Educational Systemic Reform Special Emphasis Panel, 19244 01-9198 Electrical and Communications Systems Special Emphasis Panel, 01-9208 19244-19245 01-9211 Geosciences Special Emphasis Panel, 19245 01-9209 Integrative Activities Special Emphasis Panel, 19245 01-9202 Materials Research Special Emphasis Panel, 19245 01-9200 Neuroscience Advisory Panel, 19245-19246 01-9201 Physics Special Emphasis Panel, 19246 01-9199 Polar Programs Advisory Committee, 19246 01-9206 Navy Navy Department NOTICES Privacy Act:

Systems of records, 19157-19160 01-9140 01-9141 Nuclear Nuclear Regulatory Commission NOTICES Environmental statements; availability, etc.: Northeast Nuclear Energy Co. et al, 19246-19247 01-9161 Office of U.S. Trade Office of United States Trade Representative See Trade Representative, Office of United States Pension Pension Benefit Guaranty Corporation RULES Single-employer plans: Allocation of assets— Interest assumptions for valuing and paying benefits, 19089-19091 01-9193 NOTICES Multiemployer and single-employer plans:

Interest rates and assumptions, 19247-19248 01-9194 Personnel Personnel Management Office NOTICES Agency information collection activities: Proposed collection; comment request, 19248 01-9128 Submission for OMB review; comment request, 19248-19249 01-9127 Postal Postal Service RULES International Mail Manual: Postal rates, fees, and mail classifications; changes, 19095 01-9248 Public Public Health Service See Agency for Toxic Substances and Disease Registry See Centers for Disease Control and Prevention See Food and Drug Administration See Health Resources and Services Administration See National Institutes of Health See Substance Abuse and Mental Health Services Administration RUS Rural Utilities Service NOTICES Environmental statements; availability, etc.:

Nucla-Telluride 115kV Transmission Line Project, CO, 19135 01-9175 SEC Securities and Exchange Commission NOTICES Agency information collection activities: Proposed collection; comment request, 19249-19250 01-9167 Investment Company Act of 1940: Exemption applications— SAFECO Tax-Exempt Bond Trust et al., 19252-19253 01-9111 Order applications— State Farm Life Insurance Co. et al., 19253-19256 01-9112 Shares substitution applications— USAA Life Insurance Co. et al., 19256-19260 01-9192 Meetings:

Regulation FD (fair disclosure); roundtable, 19260 01-9109 Self-regulatory organizations: Clearing agency registration applications— MBS Clearing Corp.; correction, 19260 01-9146 Self-regulatory organizations; proposed rule changes: Chicago Board Options Exchange, Inc., 19261-19263 01-9116 01-9168 Chicago Stock Exchange, Inc., 19263-19266 01-9169 01-9170 International Securities Exchange LLC, 19266-19267 01-9117 National Association of Securities Dealers, Inc., 19267-19271 01-9147 01-9148 Pacific Exchange, Inc., 19271-19274 01-9113 01-9114 Philadelphia Stock Exchange, Inc., 19274-19276 01-9115 *Applications, hearings, determinations, etc.:* Public utility holding company filings, 19250-19252 01-9145 SBA Small Business Administration NOTICES Agency information collection activities:

Proposed collection; comment request, 19276 01-9166 Social Social Security Administration NOTICES Agency information collection activities: Submission for OMB review; comment request, 19276-19277 01-9122 State State Department NOTICES Reports and guidance documents; availability, etc.: Climate Change Intergovernmental Panel; synthesis report, 19277-19278 01-9212 Substance Substance Abuse and Mental Health Services Administration NOTICES Grants and cooperative agreements; availability, etc.:

Crisis Hotline Services improvement and evaluation, 19184-19185 01-9163 Mental Health Services Center— Housing Approaches for Persons with Serious Mental Illness, 19185 01-9164 Surface Surface Transportation Board NOTICES Railroad operation, acquisition, construction, etc.: Burlington Northern & Santa Fe Railway Co., 19285 01-9239 Textile Textile Agreements Implementation Committee See Committee for the Implementation of Textile Agreements Toxic Toxic Substances and Disease Registry Agency See Agency for Toxic Substances and Disease Registry Trade Trade Representative, Office of United States NOTICES Generalized System of Preferences: 2001 Annual Product and Country Eligibility Practices Review— Petitions submission deadline, 19278-19279 01-9258 Transportation Transportation Department See Coast Guard See Federal Aviation Administration See National Highway Traffic Safety Administration See Surface Transportation Board NOTICES Agency information collection activities:

Proposed collection; comment request, 19279-19280 01-9183 01-9184 Aviation proceedings: Agreements filed; weekly receipts, 19280 01-9246 Certificates of public convenience and necessity and foreign air carrier permits; weekly applications, 19280-19281 01-9245 Treasury Treasury Department See Alcohol, Tobacco and Firearms Bureau See Internal Revenue Service Separate Parts In This Issue Part II Environmental Protection Agency, 19295-19322 01-8927 01-8928 Part III Department of Education, 19323-19341 01-9126 Part IV Department of Agriculture, Cooperative State Research, Education, and Extension Service, 19343-19354 01-9197 Part V Department of Education, 19355-19379 01-9064 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 72 Friday, April 13, 2001 Rules and Regulations FEDERAL RESERVE SYSTEM 12 CFR Part 225 [Regulation Y;

Docket Nos. R-1078 and R-1094] Bank Holding Companies and Change in Bank Control: Technical Amendments AGENCY: Board of Governors of the Federal Reserve System. ACTION: Final rule and interim rule; technical amendments. SUMMARY: The Board of Governors of the Federal Reserve System (Board) is adopting technical amendments to the financial holding company provisions of Regulation Y to restore provisions that were adopted in December 2000, and inadvertently deleted from the Code of Federal Regulations.

DATES: The amendments are effective April 13, 2001. FOR FURTHER INFORMATION CONTACT: Kieran J. Fallon, Senior Counsel (202/452-5270), or Adrianne G. Threatt, Senior Attorney (202/452-3554), Legal Division; Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, NW., Washington, DC, 20551. SUPPLEMENTARY INFORMATION: On December 19, 2000, the Board adopted a final rule permitting financial holding companies to act as a finder. ( *See* 65 FR 80735, December 22, 2000, which added a new paragraph

(d)to 12 CFR 225.86.) On December 27, 2000, the Board also adopted, on an interim basis and jointly with the Secretary of the Treasury, a rule that implemented the financial activity provisions of section 4(k)(5) of the Bank Holding Company Act (12 U.S.C. 1843(k)(5)). ( *See* 66 FR 257, January 3, 2001, which added a new paragraph

(e)to 12 CFR 225.86.) Due to delays in the publication of these rules in the **Federal Register** and the effective dates of other rules adopted by the Board in late 2000 and early 2001, paragraphs

(d)and

(e)of section 225.86 were inadvertently deleted in the final publication of the Code of Federal Regulations (CFR). Accordingly, the Board has adopted these technical amendments to ensure the prior actions taken by the Board are included in the CFR. These amendments restore in final form 12 CFR 225.86(d) as adopted by the Board on December 19, 2000, and restore in interim form 12 CFR 225.86(e) as adopted by the Board on December 27, 2000. The Board will review comments received on the interim provisions of section 225.86(e) (Docket R-1094) in connection with its adoption of a final rule regarding the provisions of that paragraph. The Board previously has reviewed the amendments under the Paperwork Reduction Act (44 U.S.C. 3506; 5 CFR Appendix A.1) and the Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ). *See* 65 FR 80735, December 22, 2000; 66 FR 257, January 3, 2001. In addition, the Board previously has solicited and considered public comments on section 225.86(d) of the rule under the Administrative Procedures Act (5 U.S.C. 553) (APA), and previously has determined under 5 U.S.C. 553(d)(3) of the APA that there is good cause to make the provisions of section 225.86(e) of the rule effective immediately and prior to the review of public comments. List of Subjects in 12 CFR Part 225 Administrative practice and procedure, Banks, Banking, Federal Reserve System, Holding companies, Reporting and recordkeeping requirements, Securities. Authority and Issuance For the reasons set out in the preamble, the Board amends 12 CFR part 225 as follows: PART 225—BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL (REGULATION Y) 1. The authority citation for part 225 continues to read as follows: Authority: 12 U.S.C. 1817(j)(13), 1818, 1828(o), 1831i, 1831p-1, 1843(c)(8), 1843(k), 1844(b), 1972(l), 2903, 3106, 3108, 3310, 3331-3351, 3907, and 3909. 2. Section 225.86 is amended by adding new paragraphs

(d)and

(e)to read as follows: § 225.86 What activities are permissible for any financial holding company?

(d)*Activities determined to be financial in nature or incidental to financial activities by the Board* —(1) *Acting as a finder* —Acting as a finder in bringing together one or more buyers and sellers of any product or service for transactions that the parties themselves negotiate and consummate.

(i)*What is the scope of finder activities?* Acting as a finder includes providing any or all of the following services through any means—

(A)Identifying potential parties, making inquiries as to interest, introducing and referring potential parties to each other, and arranging contacts between and meetings of interested parties;

(B)Conveying between interested parties expressions of interest, bids, offers, orders and confirmations relating to a transaction; and

(C)Transmitting information concerning products and services to potential parties in connection with the activities described in paragraphs (d)(1)(i)(A) and

(B)of this section.

(ii)*What are some examples of finder services?* The following are examples of the services that may be provided by a finder when done in accordance with paragraphs (d)(1)(iii) and

(iv)of this section. These examples are not exclusive.

(A)Hosting an electronic marketplace on the financial holding company's Internet web site by providing hypertext or similar links to the web sites of third party buyers or sellers.

(B)Hosting on the financial holding company's servers the Internet web site of— ( *1* ) A buyer (or seller) that provides information concerning the buyer (or seller) and the products or services it seeks to buy (or sell) and allows sellers (or buyers) to submit expressions of interest, bids, offers, orders and confirmations relating to such products or services; or ( *2* ) A government or government agency that provides information concerning the services or benefits made available by the government or government agency, assists persons in completing applications to receive such services or benefits from the government or agency, and allows persons to transmit their applications for services or benefits to the government or agency.

(C)Operating an Internet web site that allows multiple buyers and sellers to exchange information concerning the products and services that they are willing to purchase or sell, locate potential counterparties for transactions, aggregate orders for goods or services with those made by other parties, and enter into transactions between themselves.

(D)Operating a telephone call center that provides permissible finder services.

(iii)*What limitations are applicable to a financial holding company acting as a finder* ?

(A)A finder may act only as an intermediary between a buyer and a seller.

(B)A finder may not bind any buyer or seller to the terms of a specific transaction or negotiate the terms of a specific transaction on behalf of a buyer or seller, except that a finder may— ( *1* ) Arrange for buyers to receive preferred terms from sellers so long as the terms are not negotiated as part of any individual transaction, are provided generally to customers or broad categories of customers, and are made available by the seller (and not by the financial holding company); and ( *2* ) Establish rules of general applicability governing the use and operation of the finder service, including rules that— ( *i* ) Govern the submission of bids and offers by buyers and sellers that use the finder service and the circumstances under which the finder service will match bids and offers submitted by buyers and sellers; and ( *ii* ) Govern the manner in which buyers and sellers may bind themselves to the terms of a specific transaction.

(C)A finder may not— ( *1* ) Take title to or acquire or hold an ownership interest in any product or service offered or sold through the finder service; ( *2* ) Provide distribution services for physical products or services offered or sold through the finder service; ( *3) * Own or operate any real or personal property that is used for the purpose of manufacturing, storing, transporting, or assembling physical products offered or sold by third parties; or ( *4* ) Own or operate any real or personal property that serves as a physical location for the physical purchase, sale or distribution of products or services offered or sold by third parties.

(D)A finder may not engage in any activity that would require the company to register or obtain a license as a real estate agent or broker under applicable law.

(iv)*What disclosures are required?* A finder must distinguish the products and services offered by the financial holding company from those offered by a third party through the finder service.

(2)[Reserved]

(e)*Activities permitted under section 4(k)(5) of the Bank Holding Company Act (12 U.S.C. 1843(k)(5)).*

(1)The following types of activities are financial in nature or incidental to a financial activity when conducted pursuant to a determination by the Board under paragraph (e)(2) of this section:

(i)Lending, exchanging, transferring, investing for others, or safeguarding financial assets other than money or securities;

(ii)Providing any device or other instrumentality for transferring money or other financial assets; and

(iii)Arranging, effecting, or facilitating financial transactions for the account of third parties.

(2)*Review of specific activities.*

(i)*Is a specific request required?* A financial holding company that wishes to engage on the basis of paragraph (e)(1) of this section in an activity that is not otherwise permissible for a financial holding company must obtain a determination from the Board that the activity is permitted under paragraph (e)(1).

(ii)*Consultation with the Secretary of the Treasury.* After receiving a request under this section, the Board will provide the Secretary of the Treasury with a copy of the request and consult with the Secretary in accordance with section 4(k)(2)(A) of the Bank Holding Company Act (12 U.S.C. 1843(k)(2)(A)).

(iii)*Board action on requests.* After consultation with the Secretary, the Board will promptly make a written determination regarding whether the specific activity described in the request is included in an activity category listed in paragraph (e)(1) of this section and is therefore either financial in nature or incidental to a financial activity.

(3)*What factors will the Board consider?* In evaluating a request made under this section, the Board will take into account the factors listed in section 4(k)(3) of the BHC Act (12 U.S.C. 1843(k)(3)) that it must consider when determining whether an activity is financial in nature or incidental to a financial activity.

(4)*What information must the request contain?* Any request by a financial holding company under this section must be in writing and must:

(i)Identify and define the activity for which the determination is sought, specifically describing what the activity would involve and how the activity would be conducted; and

(ii)Provide information supporting the requested determination, including information regarding how the proposed activity falls into one of the categories listed in paragraph (e)(1) of this section, and any other information required by the Board concerning the proposed activity. By order of the Board of Governors of the Federal Reserve System, April 9, 2001. Jennifer J. Johnson, Secretary of the Board. [FR Doc. 01-9123 Filed 4-12-01; 8:45 am]

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