Unknown. Final rule

6,359 words·~29 min read·/register/2003/08/21/03-20451

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-2003-08-21.xml --- 68 162 Thursday, August 21, 2003 Contents Agriculture Agriculture Department See Animal and Plant Health Inspection Service See Farm Service Agency See Forest Service See Rural Business-Cooperative Service See Rural Housing Service See Rural Utilities Service Air Force Air Force Department NOTICES Meetings: Scientific Advisory Board, 50518 03-21429 Animal Animal and Plant Health Inspection Service NOTICES Meetings:

Plant pest risks associated with living modified organisms; international plant protection convention standard, 50511-50512 03-21421 Commerce Commerce Department See Industry and Security Bureau See International Trade Administration See National Oceanic and Atmospheric Administration Copyright Copyright Office, Library of Congress PROPOSED RULES Copyright Arbitration Royalty Panel rules and procedures: Digital performance of sound recordings— Sound recordings and ephemeral recordings; digital performance right, 50493-50495 03-21467 Customs Customs and Border Protection Bureau NOTICES Commercial gauger:

Approval— BSI Inspectorate America Corp., 50544 03-21465 Commercial laboratory accreditations: BSI Inspectorate America Corp., 50544 03-21466 Defense Defense Department See Air Force Department RULES Acquisition regulations: Caribbean Basin country; definition— Dominican Republic, 50477 03-21313 Competitiveness demonstration codes update, 50476 03-21314 Multiyear contracting authority revisions, 50474-50475 03-21309 Security-guard functions; contractor performance, 50476-50477 03-21310 Vessel repair and alteration contracts; liability for loss, 50477-50478 03-21311 PROPOSED RULES Acquisition regulations:

Production surveillance and reporting, 50495-50496 03-21312 NOTICES Meetings: Nuclear Weapons Surety Joint Advisory Committee, 50518 03-21395 Drug Drug Enforcement Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 50555-50556 03-21410 03-21411 Employment Employment and Training Administration NOTICES Meetings: Apprenticeship Advisory Committee, 50557 03-21404 Energy Energy Department See Federal Energy Regulatory Commission RULES Financial assistance rules:

Grants and cooperative agreements with for-profit organizations; administrative requirements, 50645-50670 03-21172 EPA Environmental Protection Agency NOTICES Air programs: Stratospheric ozone protection— Significant New Alternatives Policy Program; acceptable substitutes for ozone-depleting substances; list, 50533-50540 03-21425 Water supply: Public water supply supervision program— Arkansas, 50540 03-21426 Farm Farm Service Agency PROPOSED RULES Program regulations: Direct farm loan programs; appraisals, 50479-50481 03-21422 FAA Federal Aviation Administration RULES Airworthiness directives:

McCauley Propeller Systems, Inc., 50462-50464 03-21519 Rolls-Royce plc; correction, 50461-50462 03-21412 Class E airspace, 50464-50468 03-21461 PROPOSED RULES Airworthiness directives: McDonnell Douglas, 50491-50493 03-21414 NOTICES Air traffic operating and flight rules, etc.: High density airports; takeoff and landing slots, slot exemption lottery, and slot allocation procedures— Ronald Reagan Washington National Airport, VA; lottery allocation procedures, 50584-50587 03-21456 FDIC Federal Deposit Insurance Corporation RULES Practice and procedure:

Filing procedures, corporate powers, international banking, and management official interlocks; technical corrections and modifications, 50457-50461 03-20451 Federal Election Federal Election Commission PROPOSED RULES Allocations of candidate and committee activities: Travel expenditures; allocation, 50481-50488 03-21463 Contributions and expenditure limitations and prohibitions: Multicandidate committees and biennial contribution limits, 50488-50491 03-21462 NOTICES Meetings;

Sunshine Act, 50540-50541 03-21533 Federal Energy Federal Energy Regulatory Commission NOTICES Environmental statements; availability, etc.: Cameron LNG, LLC, 50523-50524 03-21374 Kinder Morgan Interstate Gas Transmission, LLC, 50524-50525 03-21375 Hydroelectric applications, 50526-50528 03-21497 03-21499 Meetings: Open access transmission service and standard electricity market design; remedying undue discrimination; technical conference, 50529-50530 03-21500 03-21501 Primary function test for gathering on Outer Continental Shelf, 50530-50533 03-21373 *Applications, hearings, determinations, etc.:* American Electric Power Service Corp. et al., 50529 03-21377 Blue Lake Gas Storage Co., 50518-50519 03-21372 Dominion Cove Point LNG, LP, 50519-50520 03-21385 03-21387 Dominion Transmission, Inc., 50520 03-21384 Northern Border Pipeline Co., 50520 03-21386 Panhandle Eastern Pipe Line Co., LLC, 50521 03-21379 Sea Robin Pipeline Co.

Southwest Gas Storage Co., 50521 03-21381 Tennessee Gas Pipeline Co., 50522-50523 03-21376 03-21383 Trunkline Gas Co., LLC, 50523 03-21382 Trunkline LNG Co., LLC, 50523 03-21378 Federal Railroad Federal Railroad Administration NOTICES Traffic control systems; discontinuance or modification: New Jersey Transit, 50587-50588 03-21424 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies: Change in bank control, 50541 03-21394 Formations, acquisitions, and mergers, 50541 03-21393 Financial Financial Management Service See Fiscal Service Fiscal Fiscal Service PROPOSED RULES Financial Management Service:

Automated Clearing House; Federal agency participation, 50671-50679 03-21203 Fish Fish and Wildlife Service PROPOSED RULES Migratory bird hunting: Resident Canada goose populations; management, 50496-50509 03-21268 NOTICES Environmental statements; availability, etc.: Resident Canada goose management, 50546-50547 03-21269 Food Food and Drug Administration NOTICES Food additive petitions: Unilever United States, Inc., 50541-50542 03-21396 Forest Forest Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 50512 03-21407 Meetings:

California Coast Provincial Advisory Committee, 50512-50513 03-21428 Geological Geological Survey NOTICES Agency information collection activities; proposals, submissions, and approvals, 50547-50548 03-21430 03-21432 Health Health and Human Services Department See Food and Drug Administration See Health Resources and Services Administration See Substance Abuse and Mental Health Services Administration Health Health Resources and Services Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 50542-50543 03-21399 Meetings:

Interdisciplinary, Community-Based Linkages Advisory Committee; correction, 50543 03-21397 Ryan White Comprehensive AIDS Resources Emergency

(CARE)Act Reauthorization Workgroup, 50543 03-21398 Homeland Homeland Security Department See Customs and Border Protection Bureau Housing Housing and Urban Development Department NOTICES Grants and cooperative agreements; availability, etc.: Indian Tribes and Alaska Native Villages Community Development Program; correction, 50544-50546 03-21420 Indian Indian Affairs Bureau NOTICES Tribal-State Compacts approval; Class III (casino) gambling: Yavapai-Prescott Indian Tribe, AZ, 50548-50549 03-21464 Industry Industry and Security Bureau RULES Export administration regulations: Export clearance; foreign trade statistics regulations conformance, 50470-50474 03-21471 Interior Interior Department See Fish and Wildlife Service See Geological Survey See Indian Affairs Bureau See Minerals Management Service See National Park Service International International Trade Administration NOTICES Antidumping: Brake rotors from— China, 50515-50516 03-21446 Antidumping and countervailing duties: Carbon and alloy steel wire rod from— Various countries, 50513-50515 03-21445 Meetings: U.S. Automotive Parts Advisory Committee, 50516-50517 03-21409 International International Trade Commission NOTICES Import investigations: Economic effects of significant U.S. import restraints, 50552 03-21455 Justice Justice Department See Drug Enforcement Administration See Justice Programs Office NOTICES Pollution control; consent judgments: E.I. DuPont de Nemours & Co., 50552-50554 03-21388 Earthgrains Baking Companies, Inc., et al., 50554 03-21392 Glencore AG, 50554-50555 03-21391 Weed, Robert Dwight, Jr., 50555 03-21389 Justice Justice Programs Office NOTICES Meetings: Global Justice Information-Sharing Initiative Federal Advisory Committee, 50556-50557 03-21468 Labor Labor Department See Employment and Training Administration NOTICES Grants and cooperative agreements; availability, etc.: Ending chronic homelessness through employment and housing— Working for freedom, opportunity, and real choice through community employment (WorkFORCE); correction, 50557 03-21614 Library Library of Congress See Copyright Office, Library of Congress Minerals Minerals Management Service NOTICES Outer Continental Shelf operations: Alaska Region— Oil and gas lease sales, 50549-50552 03-21472 NASA National Aeronautics and Space Administration RULES Grant and Cooperative Agreement Handbook: Financial reporting, 50468-50470 03-21437 National Archives National Archives and Records Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 50557-50558 03-21419 NOAA National Oceanic and Atmospheric Administration PROPOSED RULES Fishery conservation and management: Bering Sea and Aleutian Islands and Gulf of Alaska groundfish; public hearings, 50509-50510 03-21365 NOTICES Meetings: Gulf of Mexico Fishery Management Council, 50517-50518 03-21454 New England Fishery Management Council, 50518 03-21453 National Park National Park Service NOTICES Native American human remains, funerary objects; inventory, repatriation, etc.: Phoebe A. Hearst Museum of Anthropology, University of California, CA, 50552 03-21390 Nuclear Nuclear Regulatory Commission NOTICES *Applications, hearings, determinations, etc.:* Fansteel, Inc., 50558-50559 03-21418 Postal Postal Rate Commission NOTICES Meetings; Sunshine Act, 50559 03-21544 Public Public Debt Bureau See Fiscal Service Railroad Railroad Retirement Board NOTICES Agency information collection activities; proposals, submissions, and approvals, 50559-50561 03-21405 03-21406 Rural Rural Business-Cooperative Service PROPOSED RULES Program regulations: Direct farm loan programs; appraisals, 50479-50481 03-21422 Rural Rural Housing Service PROPOSED RULES Program regulations: Direct farm loan programs; appraisals, 50479-50481 03-21422 RUS Rural Utilities Service PROPOSED RULES Program regulations: Direct farm loan programs; appraisals, 50479-50481 03-21422 SEC Securities and Exchange Commission NOTICES Investment Company Act of 1940: Exemption applications— Barclays Global Fund Advisors et al., 50561-50562 03-21447 Public Utility Holding Company Act of 1935 filings, 50562-50563 03-21400 Self-regulatory organizations; proposed rule changes: National Association of Securities Dealers, Inc., 50563-50570 03-21402 03-21449 *Applications, hearings, determinations, etc.:* Hydro-Quebec et al., 50561 03-21401 State State Department NOTICES Art objects; importation for exhibition: Cultural artifacts from Iraq, 50570 03-21573 Commercial export licenses; notifications to Congress, 50570-50575 03-21436 Grants and cooperative agreements; availability, etc.: Educational Partnerships Program, 50575-50580 03-21435 Fulbright American Studies Institute; foreign university faculty and secondary educators, 50580-50583 03-21434 Meetings: Shipping Coordinating Committee, 50583-50584 03-21433 Substance Substance Abuse and Mental Health Services Administration NOTICES Grants and cooperative agreements; availability, etc.: Discretionary grant programs— Announcement changes, 50591-50593 03-21115 Best practices planning and implementation grants, 50615-50630 03-21118 Infrastructure grants, 50605-50616 03-21117 Sample services grant announcement, 50640-50643 03-21120 Services grants, 50592-50606 03-21116 Service-to-science grants, 50629-50641 03-21119 Surface Surface Transportation Board NOTICES Railroad operation, acquisition, construction, etc.: Union Pacific Railroad Co., 50588 03-21297 Transportation Transportation Department See Federal Aviation Administration See Federal Railroad Administration See Surface Transportation Board Treasury Treasury Department See Fiscal Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 50588-50589 03-21403 United United States Institute of Peace NOTICES Meetings; Sunshine Act, 50589 03-21542 Separate Parts In This Issue Part II Health and Human Services Department, Substance Abuse and Mental Health Services Administration, 50591-50643 03-21120 Part III Energy Department, 50645-50670 03-21172 Part IV Treasury Department, Fiscal Service, 50671-50679 03-21203 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. To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 68 162 Thursday, August 21, 2003 Rules and Regulations FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Parts 303, 333, 347, 348, and 359 RIN 3064-AC55 Filing Procedures, Corporate Powers, International Banking, Management Official Interlocks, Golden Parachute and Indemnification Payments AGENCY: Federal Deposit Insurance Corporation (FDIC). ACTION: Final rule. SUMMARY: The FDIC has adopted a final rule amending its procedures relating to filings, mutual to stock conversions, international banking, management official interlocks and golden parachute payments. The changes are mostly technical in nature or clarify previous FDIC positions; however, the final rule includes a waiver provision to its regulations. The waiver provision grants discretionary power to the FDIC Board of Directors to waive regulatory provisions that are not based on statutory requirements. DATES: September 22, 2003. FOR FURTHER INFORMATION CONTACT: Division of Supervision and Consumer Protection: Steven D. Fritts, Associate Director,

(202)898-3723, Mindy West, Examination Specialist,

(202)898-7221; Legal Division: Supervision and Legislation Branch, Robert C. Fick, Counsel,

(202)898-8962, Susan van den Toorn, Counsel,

(202)898-8707. SUPPLEMENTARY INFORMATION: I. Background Part 303 of the FDIC's regulations (part 303) generally describes the procedures to be followed by both the FDIC and applicants with respect to applications and notices required to be filed by statute or regulation. On December 27, 2002, the FDIC issued in final form a revised part 303 to reflect a recent internal reorganization at the FDIC and to remove the delegations of authority from the regulation. *See:* 67 FR 79246. On the same date, the FDIC issued the Notice of proposed rulemaking (“the notice of proposed rulemaking”) for revisions to parts 303, 347, 348, and 359 and technical corrections to other regulations in chapter III. *See:* 67 FR 79271. II. Final Rule Part 303 The FDIC is amending § 303.2 to clarify how the statutory definitions in the FDI Act apply to part 303. Several provisions in part 303 utilize terms, such as “bank,” “company,” and “depository institution holding company,” that are defined in the FDI Act. The FDIC is clarifying that unless such terms are expressly defined differently in part 303, those terms will have the meanings given them in the FDI Act. Therefore, § 303.2 specifies that wherever a term that is defined in the FDI Act is used in part 303, it will have the meaning given the term in the FDI Act except to the extent part 303 expressly defines that term differently. The FDIC is amending § 303.4— *Computation of time,* to clarify when the general rule regarding the commencement of the various time periods in part 303 applies. Several subparts of part 303 include a provision that specifies when a particular time period commences. See, for example, subpart E—Change in Bank Control. It is the FDIC's intention that in those instances where a specific provision exists, the specific provision prevails over the general rule set forth in § 303.4. The FDIC is modifying the first sentence of § 303.4 to clarify that the general rule only applies to the extent there is no specific provision regarding when a particular time period commences. The FDIC is revising § 303.11(g) to provide a time within which the FDIC has to respond to an institution or institution-affiliated party that files a response to a notice of intent or temporary order issued pursuant to this section. The FDIC believes that 30 days is a reasonable time in which to review any response submitted by an institution or institution-affiliated party. Additionally, the FDIC is placing the last sentence of current § 303.11(g)(3)(ii) into a separate paragraph to clarify that it applies to § 303.11(g)(3) in its entirety, and not only to § 303.11(g)(3)(ii). The FDIC is adding a provision setting forth its authority to waive any non-statutorily required provision for good cause. New § 303.12 provides that the Board may, for good cause and to the extent permitted by statute, waive the applicability of any provision of chapter III. The provisions could be waived, in whole or in part, at any time by the Board when good cause is shown, subject to the provisions of the Administrative Procedure Act and the provisions of chapter III. Any provision of the rules may be waived by the Board on its own motion or on petition if good cause is shown. The FDIC is revising § 303.22(a)(1) in order to clarify the rating required for a bank or thrift holding company to be eligible for expedited processing for a proposed institution seeking deposit insurance. The existing § 303.22(a)(1) rating for a thrift holding company of a “2” is inappropriate since the Office of Thrift Supervision has ratings of “A”, “S”, and “U”. Revised § 303.22(a)(1) would provide that an eligible holding company would be defined as a bank or thrift holding company that has consolidated assets of at least $150 million or more; a BOPEC rating of at least “2” for bank holding companies or an above average or “A” rating for thrift holding companies; and at least 75 percent of its consolidated depository institution assets comprised of eligible depository institutions. The FDIC is amending several sections in subpart E to clarify that the acquisition of control of a parent company of a state nonmember bank generally requires a change in control notice. Section 7(j)(18) of the FDI Act (12 U.S.C. 1817(g)(18)) indicates that the Change in Bank Control Act applies to acquisitions of control of companies that control insured depository institutions. It has long been the FDIC's interpretation that a change in control notice is required whenever any person acquires control of a company that controls, directly or indirectly, a state nonmember bank. Such control could be indirect in that the company exerts control of the bank through one or more intermediate companies of a multi-tiered organization. The amendments merely clarify the regulations in this regard. Specifically, the FDIC is adding a definition of “parent company” to the definitions listed in § 303.81; adding a reference to parent company in the provisions requiring a change in control notice for a state nonmember bank in § 303.82; adding to § 303.83(a) exemptions for acquisitions of the voting shares of bank holding companies, and for acquisitions of the voting shares of savings and loan holding companies, and adding technical conforming changes to various sections in 12 CFR 303.80 through 303.83. It has also been the FDIC's practice not to require a change in control notice in those cases where either the Board of Governors of the Federal Reserve System or the Office of Thrift Supervision reviews a change in control notice for the proposed transaction. For example, where a person proposes to acquire control of a bank holding company that controls a state nonmember bank, and the Board of Governors of the Federal Reserve System reviews a change in control notice for the same transaction, the FDIC considers it an unnecessary duplication for the acquirer to also file a change in control notice with the FDIC. The changes codify the FDIC's practice in that regard. The FDIC is also clarifying when an acquisition subject to the Change in Bank Control Act may be consummated. Section 7(j) of the FDI Act, 12 U.S.C. 1817(j), generally provides that any person acquiring control of an insured depository institution must give the appropriate federal banking agency sixty days prior written notice of such proposed transaction. Previous § 303.85 could be interpreted to permit consummation of the proposed transaction prior to the expiration of that 60-day period. In order to eliminate the potential for misunderstandings regarding the time period available to the FDIC for considering a proposed change in bank control transaction, the FDIC is amending 12 CFR 303.85

(a)and

(b)to make clear that the 60-day notice period commences on the day after the date that the appropriate regional director accepts the notice as substantially complete. In § 303.86 the FDIC is providing a more descriptive heading for paragraph

(c)by including the phrase, “waiving publication, acting before close of public comment period” and amending paragraph

(c)by substituting “paragraphs

(a)and (d)” for “this paragraph.” The FDIC adopted a technical correction to § 303.244 creating a cross-reference to § 359.4(a)(4) of this chapter regarding golden parachutes and severance plan payments to make clear the responsibilities of an applicant seeking approval of filings. Specifically, insured depository institutions, depository institution holding companies or institution-affiliated parties making requests for such payments often overlook the requirement that a party submitting such an application demonstrate that it does not possess and is not aware of any information, evidence, documents or other materials which would indicate that there is a reasonable basis to believe, at the time such payment is made, that the institution-affiliated party who is to benefit from a golden parachute or severance plan engaged in any breach of fiduciary duty or other misconduct that would have a material adverse effect on the bank; is substantially responsible for the bank's insolvency; violated any law which would have a material effect on the bank; or violated certain federal criminal and currency-reporting laws. In addition, with regard to part 359 of this chapter, the FDIC is revising the reference in § 359.1(f)(1)(ii)(C) to part 303 to read, “303.101(c).” III. Other Regulatory Changes Technical corrections are made to part 333.4—Conversions from mutual to stock, form to correct references to part 303 of this chapter. The old citations in § 333.4(a) and

(c)is replaced with: “subpart I of part 303 of this chapter.” A technical correction is made to part 347—International Banking § 347.108(f) to reference the correct citation with regard to procedures for applications and notices for obtaining FDIC approval to invest in foreign organizations. Procedures are set out in subpart J of part 303 of this chapter, not subpart D of part 347 as provided for in the prior regulation. A technical correction is also being made to part 348—Management Official Interlocks, § 348.2 regarding the definition of Management official to correct the cross-reference to part 303 of this chapter. The correct citation should be to 12 CFR 303.101(b). IV. Request for Public Comment as Part EGRPRA and Regulatory Flexibility Act Regulatory Review. Consistent with our obligation pursuant to Section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA, 12 U.S.C. 3311), the FDIC requested public comment to identify any areas of part 303, not merely those sections for which changes were being proposed, that are outdated, unnecessary, or unduly burdensome. The FDIC also requested public comment on whether part 303 should be continued without change, amended or rescinded to minimize any significant economic impact it may have on a substantial number of small insured institutions ( *i.e.,* those with assets of $150 million or less) consistent with our obligation pursuant to Section 610 of the Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ). The FDIC received no comments in response to this EGRPRA request. While no comments were received specifically with regard to the EGRPRA request, the FDIC notes that the federal financial regulatory agencies are soliciting comments on their plan to identify and eliminate outdated, unnecessary or unduly burdensome regulations imposed on insured depository institutions. *See:* 68 FR 35589 (June 16, 2003). The request for comment includes application regulations such as 12 CFR part 303. Written comments must be received no later than September 15, 2003. V. Overview of Comments Received As noted above, FDIC published a notice of proposed rulemaking in the **Federal Register** on December 27, 2002, and requested comments on the proposed amendments. The FDIC received 3 comment letters from organizations. All of the comment letters were opposed to the waiver provision in the proposed regulation. The organizations filing comments were two national trade organizations and one state-based nonprofit organization. The commenters stated they believed that if the FDIC waived regulations not required by statute, it is likely that the agency will waive public comment, public notice requirements, and other vital parts of the merger application process. Consequently, they argue, the public's input into mergers that affect access to credit and capital for minority and low- and moderate-income communities will be cut-off. Comments further stated that in order for a regulatory process to be fair to all parties, the agency cannot waive a process for some banks and not others. They argue that waivers on a case-by-case basis are arbitrary and result in uneven regulatory enforcement. In the notice of proposed rulemaking, the waiver provision would be limited to non-statutorily required provisions and for good cause. As such, the provision would not permit the FDIC to waive the public comment, public notice requirements of the merger application process since those procedures are required by statute. *See:* 12 U.S.C. 1828(c)(3). It is the FDIC's intention to utilize the waiver provision only in extraordinary circumstances. For example, the FDIC had seen the need for such a waiver provision from time to time when an institution has failed to meet the record keeping requirements of the deposit insurance regulations and without a waiver of such requirements, accountholders in a failed bank situation would suffer substantial penalties because of the bank's failure to keep adequate records. Consequently, the FDIC is adopting the waiver provision as proposed. VI. Regulatory Flexibility Act Analysis Pursuant to 5 U.S.C. 605(b) of the Regulatory Flexibility Act, 5 U.S.C. 601 *et seq.,* the FDIC hereby certifies that the amendments set forth in this final rule will not have a significant economic impact on a substantial number of small entities. The final rule makes primarily technical changes to the existing rule. VII. Paperwork Reduction Act This final rule does not create or modify any collection of information pursuant to the Paperwork Reduction Act (44 U.S.C. 3501 *et seq.* ). Consequently, no information has been submitted to the Office of Management and Budget for review. VIII. Plain Language Requirement Section 722 of the Gramm-Leach-Bliley Act of 1999

(GLBA)requires the federal banking agencies to use “plain language” in all proposed and final rules published after January 1, 2000. The proposed rule requested comments on how the rule might be changed to reflect the requirements of GLBA. No comments were received. IX. Assessment of Impact of Federal Regulation on Families The FDIC has determined that the final rule will not affect family well-being within the meaning the section 654 of the Treasury and General Government Appropriations Act, 1999, enacted as part of the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999 (Pub. L. 105-277, 112 Stat. 2681). List of Subjects 12 CFR Part 203 Administrative practice and procedure, Banks, banking, Bank merger, Branching, Foreign investments, Golden parachute payments, Insured branches, Interstate branching, Reporting and recordkeeping requirements, Savings associations. 12 CFR Part 333 Banks, banking, Corporate powers. 12 CFR Part 347 Banks deposit insurance, Banks, Credit, Foreign banking, Foreign investments, Insured branches, Investments, Reporting and recordkeeping requirements, United States investments abroad. 12 CFR Part 348 Antitrust, Banks, banking, Holding companies, Reporting and recordkeeping requirements. 12 CFR Part 359 Bank deposit insurance, Banks, banking, Golden parachute payments, Indemnity payments. For the reasons set out in the preamble, the FDIC hereby amends 12 CFR parts 303, 333, 347, 348 and 359. PART 303—FILING PROCEDURES 1. The authority citation for part 303 continues to read as follows: Authority: 12 U.S.C. 378, 1813, 1815, 1816, 1817, 1818, 1819, (Seventh and Tenth), 1820, 1823, 1828, 1828a, 1831a, 1831e, 1831o, 1831p-1, 1831w, 1835a, 3104, 3105, 3108, 3207, 15 U.S.C. 1601-1607, 6716. § 303.2 [Amended] 2. In § 303.2 remove the phrase, “For purposes of this part,” and add in its place the phrase, “Except as modified or otherwise defined in this part, terms used in this part that are defined in the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) have the meanings provided in the Federal Deposit Insurance Act. Additional definitions of terms used in this part are as follows:”. § 303.4 [Amended] 3. In § 303.4 after the phrase, “For purposes of this part,” add the words, “and except as otherwise specifically provided,”. 4. In § 303.11, paragraph (9)(3)(ii) is revised to read as follows: § 303.11 Decisions.

(g)* * *

(3)* * * (ii)(A) Any other relevant information, mitigation circumstance, documentation, or other evidence in support of the applicant's position. An applicant may also request a hearing under § 303.10.

(B)Failure by an applicant to file a written response with the FDIC to a notice of intent or a temporary order within the specified time period, shall constitute a waiver of the opportunity to respond and shall constitute consent to a final order under this paragraph (g). The FDIC shall consider any such response, if filed in a timely manner, within 30 days of receiving the response. 5. Section 303.12 is added to read as follows: § 303.12 Waivers.

(a)The Board of Directors, of the FDIC (Board) may, for good cause and to the extent permitted by statute, waiver the applicability of any provision of this chapter.

(b)The provisions of this chapter may be suspended, revoked, amended or waived for good cause shown, in whole or in part, at any time by the Board, subject to the provisions of the Administrative Procedure Act and the provisions of this chapter. Any provision of the rules may be waived by the Board on its own motion or on petition if good cause thereof is shown. 6. In § 303.22, paragraph (a)(1) is amended by revising the second sentence to read as follows: § 303.22 Processing.

(a)* * *

(1)* * * An eligible holding company is defined as a bank or thrift holding company that has consolidated assets of at least $150 million or more; a BOPEC rating of at least “2” for bank holding companies or an above average or “A” rating for thrift holding companies; and at least 75 percent of its consolidated depository institution assets comprised of eligible depository institutions. 7. Section 303.80 is revised to read as follows: § 303.80 Scope. This subpart sets forth the procedures for submitting a notice to acquire control of an insured state nonmember bank or a parent company of an insured state nonmember bank pursuant to the Change in Bank Control Act of 1978, section 7(j) of the FDI Act (12 U.S.C. 1817(j)). 8. Section 303.81 is revised to read as follows: § 303.81 Definitions. For purposes of this subpart:

(a)*Acquisition* includes a purchase, assignment, transfer, pledge or other disposition of voting shares, or an increase in percentage ownership resulting from a redemption of voting shares of an insured state nonmember bank or a parent company.

(b)*Acting in concert* means knowing participation in a joint activity or parallel action towards a common goal of acquiring control of an insured state nonmember bank or a parent company, whether or not pursuant to an express agreement.

(c)*Control* means the power, directly or indirectly, to direct the management or policies of an insured bank or a parent company or to vote 25 percent or more of any class of voting shares of an insured bank or a parent company.

(d)*Parent Company* means any company that controls, directly or indirectly, an insured state nonmember bank.

(e)*Person* means an individual, corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship, unincorporated organization, and any other form of entity; and a voting trust, voting agreement, and any group of persons acting in concert. 9. Section 303.82 is amended by revising paragraphs (a), (b),

(c)and

(d)to read as follows: § 303.82 Transactions requiring prior notice.

(a)*Prior notice requirement.* Any person acting directly or indirectly, or through or in concert with one or more persons, shall give the FDIC 60 days prior written notice, as specified in § 303.84, before acquiring control of an insured state nonmember bank or any parent company, unless the acquisition is exempt under § 303.83.

(b)*Acquisition requiring prior notice* —(1) *Acquisition of control.* The acquisition of control, unless exempted, requires prior notice to the FDIC.

(2)*Rebuttable presumption of control.* The FDIC presumes that an acquisition of voting shares of an insured state nonmember bank or a parent company constitutes the acquisition of the power to direct the management or policies of an insured bank or a parent company requiring prior notice to the FDIC, if, immediately after the transaction, the acquiring person (or persons acting in concert) will own, control, or hold with power to vote 10 percent or more of any class of voting shares of the institution, and if:

(i)The institution has registered shares under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l); or

(ii)No other person will own, control or hold the power to vote a greater percentage of that class of voting shares immediately after the transaction. If two or more persons, not acting in concert, each propose to acquire simultaneously equal percentages of 10 percent or more of a class of voting shares of an insured state nonmember bank or a parent company, each such person shall file prior notice with the FDIC.

(c)*Acquisition of loans in default.* The FDIC presumes an acquisition of a loan in default that is secured by voting shares of an insured state nonmember bank or a parent company to be an acquisition of the underlying shares for purposes of this section.

(d)*Other transactions.* Acquisitions other than those set forth in paragraph (b)(2) of this section resulting in a person's control of less than 25 percent of a class of voting shares of an insured state nonmember bank or a parent company are not deemed by the FDIC to constitute control for purposes of the Change in Bank Control Act. 10. Section 303.83 is amended by revising paragraphs (a)(1) through (a)(2), (a)(6) and (a)(7), (b)(1) and (b)(2), and by adding a new paragraph (a)(8), to read as follows: § 303.83 Transactions not requiring prior notice.

(a)* * *

(1)The acquisiiton of additional voting shares of an insured state nonmember bank or a parent company by a person who:

(i)Held the power to vote 25 percent or more of any class of voting shares of the institution continuously since the later of March 9, 1979, or the date that the institution commenced business as an insured state nonmember bank or a parent company; or

(ii)Is presumed, under § 303.82(b)(2), to have controlled the institution continuously since March 9, 1979, if the aggregate amount of voting shares held does not exceed 25 percent or more of any class of voting shares of the institution or, in other cases, where the FDIC determines that the person has controlled the institution continuously since March 9, 1979;

(2)The acquisition of additional shares of a class of voting shares of an insured state nonmember bank or a parent company by any person (or persons acting in concert) who has lawfully acquired and maintained control of the institution (for purposes of § 303.82) after complying with the procedures of the Change in Bank Control Act to acquire voting shares of the institution under this subpart;

(6)The receipt of voting shares of an insured state nonmember bank or a parent company through a pro rata stock dividend;

(7)The acquisition of voting shares in a foreign bank, which has a insured branch or branches in the United States. (This exemption does not extend to the reports and information required under paragraphs 9, 10, and 12 of the Change in Bank Control Act of 1978 (12 U.S.C. 1817(j)(9), (10), and (12)) and;

(8)The acquisition of voting shares of a depository institution holding company that either the Board of Governors of the Federal Reserve System or the Office of Thrift Supervision reviews pursuant to the Change in Bank Control Act (12 U.S.C. 1817(j)).

(b)*Prior notice exemption.*

(1)The following acquisitions of voting shares of an insured state nonmember bank or a parent company, which otherwise would require prior notice under this subpart, are not subject to the prior notice requirements if the acquiring person notifies the appropriate FDIC office within 90 calendar days after the acquisition and provides any relevant information requested by the FDIC:

(i)The acquisition of voting shares through inheritance;

(ii)The acquisition of voting shares as a bona fide gift; or

(iii)The acquisition of voting shares in satisfaction of a debt previously contracted in good faith, except that the acquirer of a defaulted loan secured by a controlling amount of a state nonmember bank's voting securities or a parent company's voting securities shall file a notice before the loan is acquired.

(2)The following acquisitions of voting shares of an insured state nonmember bank or a parent company, which otherwise would require prior notice under this subpart, are not subject to the prior notice requirements if the acquiring person notifies the appropriate FDIC office within 90 calendar days after receiving notice of the acquisition and provides any relevant information requested by the FDIC.

(i)A percentage increase in ownership of voting shares resulting from a redemption of voting shares by the issuing bank or a parent company; or

(ii)The sale of shares by any shareholder that is not within the control of a person resulting in that person becoming the largest shareholder. 11. Section 303.85 is amended by revising paragraphs

(a)and

(b)to read as follows: § 303.85 Processing.

(a)*Acceptance of notice, additional information.* The FDIC shall notify the person or persons submitting a notice under this subpart in writing of the date the notice is accepted as substantially complete. The FDIC may request additional information at any time.

(b)*Commencement of the 60-day notice period: consummation of acquisition.*

(1)The 60-day notice period specified in § 303.82 shall commerce on the day after the date of acceptance of a substantially complete notice by the appropriate regional director. The notificant(s) may consummate the proposed acquisition after the expiration of the 60-day notice period, unless the FDIC disapproves the proposed acquisition or extends the notice period. 12. Section 303.86 is amended by revising paragraph

(c)to read as follows: § 303.86 Public Notice requirements.

(c)*Shortening or waiving public comment period, waiving publications; acting before close of public comment period.* The FDIC may shorten the public comment period to a period of not less than 10 days, or waive the public comment or newspaper publication requirements of paragraph

(a)of this section, or act on a notice before the expiration of a public comment period, if it determines in writing either that an emergency exists or that disclosure of the notice, solicitation of public comment, or delay until expiration of the public comment period would seriously threaten the safety and soundness of the bank to be acquired. 13. In section 303.244, paragraphs (c)(4) and (c)(5) are revised and new paragraph (c)(6) is added to read as follows: § 303.244 Golden parachute and severance plan payments.

(c)* * *

(4)The cost of the proposed payment and its impact on the institution's capital and earnings;

(5)The reasons why the consent to the payment should be granted; and

(6)Certification and documentation as to each of the points cited in § 359.4(a)(4). PART 333—EXTENSION OF CORPORATE POWERS 14. The authority citation for part 333 continues to read as follows: Authority: 12 U.S.C. 1816, 1818, 1819 (“Seventh”, “Eighth” and “Tenth”), 1828, 1828(m), 1831p-1(c). § 333.4 [Amended] 15. In § 333.4, paragraphs

(a)and

(c)are amended by removing the words “§ 303.15 of this chapter” and adding in their place the words “subpart I of part 303 of this chapter.” PART 347—INTERNATIONAL BANKING 16. The authority citation for part 347 continues to read as follows: Authority: 12 U.S.C. 1813, 1815, 1817, 1819, 1820, 1828, 3103, 3104, 3105, 3108: Title IX, Pub. L. 98-181, 97 Stat. 1153. 17. Section 347.108 is amended by revising paragraph

(f)to read as follows: § 347.108 Obtaining FDIC approval to invest in foreign organizations.

(f)*Procedures.* Procedures for applications and notices under this section are set out in subpart J of part 303 of this chapter. PART 348—MANAGEMENT OFFICIAL INTERLOCKS 18. The authority citation for part 348 continues to read as follows: Authority: 12 U.S.C. 1823(k), 3207. 19. In § 348.2, paragraph (j)(1)(iii) is revised to read as follows: § 348.2 Definitions.

(j)* * *

(iii)A senior executive officer as that term is defined in 12 CFR 303.101(b). PART 359—GOLDEN PARACHUTE AND INDEMNIFICATION PAYMENTS 20. The authority citation for part 359 continues to read as follows: Authority: 12 U.S.C. 1828(k). § 359.1 [Amended] 21. In § 359.1(f)(1)(ii)(C) remove the reference to “§ 303.14(a)(4)” and add in its place, “§ 303.101(c)”. Dated at Washington, DC, this 4th day of August, 2003. By order of the Board of Directors. Federal Deposit Insurance Corporation. Valerie J. Best, Assistant Executive Secretary. [FR Doc. 03-20451 Filed 8-20-03; 8:45 am]

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U.S. Code