Unknown. Final rule

5,306 words·~24 min read·/register/2006/02/21/06-1568·

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-2006-02-21.xml --- 71 34 Tuesday, February 21, 2006 Contents Agricultural Agricultural Marketing Service PROPOSED RULES Regulatory Flexibility Act: Periodic review of regulations; various fruits and vegetables, 8810 06-1536 NOTICES Grade standards: Field grown leaf lettuce, 8833 E6-2386 Watermelons, 8833-8834 E6-2385 Agriculture Agriculture Department See Agricultural Marketing Service See Foreign Agricultural Service See Forest Service See Natural Resources Conservation Service Census Census Bureau NOTICES Agency information collection activities; proposals, submissions, and approvals, 8838-8839 E6-2364 Privacy Act; systems of records, 8839 E6-2392 Centers Centers for Disease Control and Prevention NOTICES Meetings:

National Institute for Occupational Safety and Health— Scientific Counselors Board, 8859 06-1543 Reports and guidance documents; availability, etc.: National Institute for Occupational Safety and Health; toxicity data for halogenated anesthetic agents; request for information, 8859-8860 06-1542 Commerce Commerce Department See Census Bureau See Economic Development Administration See Economics and Statistics Administration See International Trade Administration See National Oceanic and Atmospheric Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 8837-8838 E6-2365 E6-2366 Commodity Commodity Futures Trading Commission RULES Commodity Exchange Act:

Futures commission merchants and specified foreign currency forward and inventory capital charges; alternative market risk and credit risk capital charges Correction, 8889 C6-982 Defense Defense Department See Navy Department Economic Economic Development Administration NOTICES Adjustment assistance; applications, determinations, etc.: RIM Inc., et al., 8839-8840 E6-2416 Economics Economics and Statistics Administration NOTICES Meetings: Bureau of Economic Analysis Advisory Committee, 8840 06-1538 Education Education Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 8846-8847 E6-2398 Meetings:

Future of Higher Education Commission, 8847 06-1534 Energy Energy Department See Federal Energy Regulatory Commission NOTICES Meetings: Environmental Management Advisory Board, 8847-8848 E6-2402 EPA Environmental Protection Agency NOTICES Agency information collection activities; proposals, submissions, and approvals, 8851-8854 E6-2407 E6-2408 Air pollutants, hazardous; national emission standards: Radionuclide emissions; CAP88-PC updated compliance model; availability, 8854-8856 E6-2405 Meetings:

Children's Health Protection Advisory Committee, 8856-8857 E6-2409 Reports and guidance documents; availability, etc.: Clean Air Act; Crittenden County, AR; identification as targeted for economic development zone; letter and technical support document, 8857-8858 E6-2410 FAA Federal Aviation Administration RULES Airworthiness directives: Airbus, 8792-8796 06-1504 Standard instrument approach procedures, 8796-8799 06-1481 06-1482 NOTICES Environmental statements; notice of intent:

Colorado Springs Airport, CO, 8886-8887 06-1570 Meetings: Aviation Rulemaking Advisory Committee, 8887 E6-2422 FDIC Federal Deposit Insurance Corporation RULES Practice and procedure: Insured status; notification of changes, 8789-8792 06-1568 Federal Emergency Federal Emergency Management Agency PROPOSED RULES Flood elevation determinations: Illinois and Missouri, 8810-8813 E6-2417 Kansas and Missouri, 8813-8818 E6-2415 Federal Energy Federal Energy Regulatory Commission NOTICES Complaints filed:

New York Power Authority et al., 8850 E6-2378 Electric rate and corporate regulation combined filings, 8850-8851 E6-2380 *Applications, hearings, determinations, etc.:* DeGreeffpa, LLC, et al., 8848 E6-2376 Dominion Cove Point LNG, L.P., et al., 8848-8849 E6-2379 FPL Group, Inc., et al., 8849 E6-2377 New York Independent System Operator, Inc., 8849-8850 E6-2375 Federal Financial Federal Financial Institutions Examination Council NOTICES Agency information collection activities; proposals, submissions, and approvals, 8858 E6-2427 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies:

Permissible nonbanking activities, 8858 E6-2395 Fish Fish and Wildlife Service PROPOSED RULES Endangered and threatened species: Findings on petitions, etc.— Yellowstone cutthroat trout, 8818-8831 06-1539 NOTICES Endangered and threatened species: Survival enhancement permits— Texas ocelot; TX; safe harbor agreement, 8864-8865 E6-2394 Food Food and Drug Administration NOTICES Meetings: Animal Drug User Fee Act; performance and reauthorization; canceled, 8860-8861 06-1571 Foreign Foreign Agricultural Service NOTICES Adjustment assistance; applications, determinations, etc.:

Indiana snapdragon producers, 8834-8835 E6-2399 National Grape Cooperative Association, 8835 E6-2400 E6-2401 Forest Forest Service RULES Land uses: Special use authorizations; costs recovery for processing applications and monitoring compliance, 8892-8920 06-1444 NOTICES Environmental statements; notice of intent: Humboldt-Toiyabe National Forest, NV, 8835-8837 E6-2326 Health Health and Human Services Department See Centers for Disease Control and Prevention See Food and Drug Administration See National Institutes of Health RULES Energy Employees Occupational Illness Compensation Program Act:

Special Exposure Cohort; employee classes designation as members; procedures, 8808 06-1588 NOTICES Meetings: American Health Information Community Biosurveillance Workgroup, 8859 06-1553 American Health Information Community Chronic Care Workgroup, 8859 06-1552 American Health Information Community Consumer Enpowerment Workgroup, 8859 06-1554 American Health Information Community Electronic Health Record Workgroup, 8858 06-1551 Homeland Homeland Security Department See Federal Emergency Management Agency Housing Housing and Urban Development Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 8863-8864 E6-2358 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau See Reclamation Bureau IRS Internal Revenue Service RULES Income taxes:

Section 367 stock transfers involving foreign corporations in transactions governed by section 304, 8802-8805 06-1465 NOTICES Meetings: Taxpayer Advocacy Panels, 8887-8888 E6-2369 International International Trade Administration NOTICES Antidumping: Orange juice from— Brazil, 8841-8842 E6-2418 Stainless steel wire rod from— Taiwan, 8842 E6-2419 Antidumping and countervailing duties: Film from— India, 8840-8841 E6-2420 International International Trade Commission NOTICES Import investigations:

Carbon steel products from— Various countries, 8874 E6-2359 Justice Justice Department RULES Privacy Act; systems of records, 8805-8806 06-1549 Labor Labor Department See Mine Safety and Health Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 8874-8875 06-1544 Land Land Management Bureau NOTICES Alaska Native claims selection: AHTNA, Inc., 8865 E6-2383 Mary's Igloo Native Corp., 8865 E6-2371 Committees; establishment, renewal, termination, etc.:

Alaska Resource Advisory Council, 8866 E6-2389 Wild Horse and Burro Advisory Board; nominations, 8866-8867 E6-2391 Disclaimer of interest applications: Louisiana, 8867 06-1537 Environmental statements; availability, etc.: Twenty Mile Coal Company, Lakewood, CO, 8867-8868 E6-2387 Environmental statements; notice of intent: John Day Basin, OR; resource management plan, 8868-8869 E6-2388 Toquop Energy Power Project, Lincoln County, NV, 8869-8870 E6-2384 Public land orders: Oregon, 8870 E6-2374 Realty actions; sales, leases, etc.:

Colorado, 8870-8872 E6-2382 Nevada; correction, 8872 E6-2381 Utah, 8872-8873 E6-2372 Mine Mine Safety and Health Administration NOTICES Safety standard petitions, 8875 E6-2396 National Archives National Archives and Records Administration RULES Records management: Electronic mail and records; management and disposition, 8806-8808 06-1545 NIH National Institutes of Health NOTICES Inventions, Government-owned; availability for licensing, 8861-8863 E6-2362 E6-2363 Patent licenses; non-exclusive, exclusive, or partially exclusive:

KW Co., LLC, 8863 E6-2360 NOAA National Oceanic and Atmospheric Administration RULES Fishery conservation and management: Alaska; fisheries of Exclusive Economic Zone— Pollock, 8808-8809 06-1563 PROPOSED RULES Fishery conservation and management: Caribbean, Gulf, and South Atlantic fisheries— Gulf of Mexico and South Atlantic coastal migratory pelagic resources and Gulf of Mexico reef fish, 8831-8832 E6-2403 NOTICES Agency information collection activities; proposals, submissions, and approvals, 8842-8843 E6-2370 Coastal zone management programs and estuarine sanctuaries:

State programs— Intent to evaluate performance, 8843-8844 E6-2421 Endangered and threatened species: Anadromous fish take— Oregon State University, U.S. Geological Survey, Port Blakely Farms; salmon and steelhead, 8844-8845 E6-2404 Meetings: New England Fishery Management Council, 8845 E6-2406 Reports and guidance documents; availability, etc.: West Coast States and Western Pacific fisheries— Northwestern Hawaiian Islands; commercial lobster; 2006 harvest guideline, 8846 E6-2411 NRCS Natural Resources Conservation Service NOTICES Environmental statements; availability, etc.:

Harding Lake, Aquatic Habitat Enhancement Project, AK, 8837 06-1573 Navy Navy Department NOTICES Environmental statements; availability, etc.: 2006 Rim of the Pacific exercises, HI; correction, 8846 E6-2414 Reclamation Reclamation Bureau NOTICES Environmental statements; availability, etc.: Red River Valley Water Supply Project, ND; public hearings, 8873-8874 E6-2393 SEC Securities and Exchange Commission NOTICES Self-regulatory organizations; proposed rule changes: National Association of Securities Dealers, Inc., 8875-8877 E6-2368 New York Stock Exchange, Inc., 8877-8880 E6-2367 Social Social Security Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 8880-8882 E6-2397 State State Department NOTICES Culturally significant objects imported for exhibition determinations:

Tempo! Tempo! The Bauhaus Photomontages of Marianne Brandt, 8882 E6-2412 Privacy Act; systems of records, 8882-8886 06-1624 06-1625 06-1626 Transportation Transportation Department See Federal Aviation Administration RULES Computer reservations systems, carrier-owned; joint operations display, 8800-8802 06-1550 NOTICES Reports and guidance documents; availability, etc.: Federal Radionavigation Plan, 2005 edition, 8886 E6-2413 Treasury Treasury Department See Internal Revenue Service Separate Parts In This Issue Part II Agriculture Department, Forest Service, 8892-8920 06-1444 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. 71 34 Tuesday, February 21, 2006 Rules and Regulations FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 307 RIN 3064-AC93 Certification of Assumption of Deposits and Notification of Changes of Insured Status AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Final rule. SUMMARY: The FDIC is adopting a final rule which clarifies and simplifies the procedures to be used when all of the deposit liabilities of an insured depository institution have been assumed by another insured depository institution or institutions. The final regulation would modify the current rule's requirements by: Making clear that an insured institution is required to file a “certification” when all of its deposits are assumed, but no certification is required if only a portion of its deposits are assumed; and requiring that the transferring institution, or its legal successor, file the certification rather than the assuming institution.

The rule also clarifies that the transferring institution's status as an insured institution automatically terminates upon the FDIC's receipt of an accurate certification stating that: All of its deposits have been assumed by an insured depository institution or institutions, and the legal authority of the transferring institution to accept deposits has been terminated contemporaneously with the deposit assumption. In such a situation, and in a situation in which the FDIC has been appointed receiver of an insured institution, little practical purpose would be served by an order terminating deposit insurance, and the final rule provides that no such order will be issued in such situations.

Finally, the rule would provide more specificity concerning how notice is given to depositors when an insured depository institution voluntarily terminates its insured status without the assumption of all of its deposits by an insured institution. In sum, the revisions would make the insurance termination process somewhat easier for insured depository institutions, and somewhat more efficient for the FDIC. DATES: This rule will be effective on March 23, 2006. FOR FURTHER INFORMATION CONTACT:

Donald R. Hamm, Review Examiner, Division of Supervision and Consumer Protection,

(202)898-3528; Thomas Nixon, Counsel, Legal Division,

(202)898-8766; Federal Deposit Insurance Corporation, 550 17th Street, NW., Washington, DC 20429. SUPPLEMENTARY INFORMATION: I. Background On October 14, 2005, the FDIC published a notice of proposed rulemaking concerning its Part 307 (12 CFR) “Notification of Changes in Insured Status.” (70 FR 60015) The rule currently has two sections. Section 307.1 applies to situations where one or more insured institutions have assumed the deposit liabilities of another insured institution. Section 307.2 applies to situations where an insured institution seeks to terminate its insured status without its deposit liabilities being assumed. The FDIC received no comments in response to the notice of proposed rulemaking. The FDIC has determined to make its October 2005 proposed revision to Part 307 final. A section-by-section analysis follows. II. Revised Caption; New Section 307.1—Scope and Purpose The caption of the Part would be changed from “Notification of Changes of Insured Status” to “Certification of Assumption of Deposits and Notification of Changes of Insured Status” to make it more descriptive of the Part's content and alert institutions that the Part addresses deposit assumptions as well as changes in insured status. The current Part 307 does not have a scope and purpose section. In addition, since Part 307 had not been revised since 1983, §§ 307.1 and 307.2 continued to refer to an “insured bank” rather than to an “insured depository institution,” consistent with the changes made to the FDIC's responsibilities and terminology by sections 201 and 202 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. 1 The final rule adds a new § 307.1 to describe the purpose of the Part and to indicate that the Part applies to insured depository institutions as defined in section 3(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)(2), FDI Act). The existing §§ 307.1 and 307.2 are redesignated as §§ 307.2 and 307.3, respectively. 1 Pub. L. 101-73, 103 Stat. 103. III. Section 307.2—Certification of Assumption of Deposit Liabilities The current section 307.1 implements section 8(q) of the FDI Act (12 U.S.C. 1818(q)), which states: Whenever the liabilities of an insured depository institution for deposits shall have been assumed by another insured depository institution or depository institutions, whether by way of merger, consolidation, or other statutory assumption, or pursuant to contract

(1)The insured status of the depository institution whose liabilities are so assumed shall terminate on the date of receipt by the Corporation of satisfactory evidence of such assumption;

(2)The separate insurance of all deposits so assumed shall terminate at the end of six months from the date such assumption takes effect or, in the case of any time deposit, the earliest maturity date after the six-month period * * * All assumptions of insured deposit liabilities, whether a “total” assumption of all the transferring institution's deposits or an assumption of only a portion of its deposits (a “partial” assumption), by an insured institution are subject to the Bank Merger Act and require the prior written approval of the “responsible agency.” 2 The responsible agency is the primary Federal regulator of the assuming institution. 2 FDI Act section 18(c)(2), (12 U.S.C. 1828(c)(2)), reads as follows: No insured depository institution shall merge or consolidate with any other insured depository institution or, either directly or indirectly, acquire the assets of, or assume liability to pay any deposits made in, any other insured depository institution except with the prior written approval of the responsible agency * * * The present section 307.1 requires the institution assuming deposits to certify to the FDIC that it has assumed the deposits. It does not specify whether a certification is required only where a total deposit assumption occurs or whether a certification is also required for a partial deposit assumption, for example, when a single branch of an institution is sold. This rule clarifies that a certification is required only when there has been a total assumption of deposits. No certification is required in the case of a partial transfer of deposits. Clarifying that no certification is necessary for a partial assumption is consistent with the FDIC's goal of reducing regulatory burden pursuant to Section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 3 while obtaining sufficient information for the proper implementation of section 8(q) of the FDI Act. 3 Pub. L. 104-208, Sept. 30, 1996, 12 U.S.C. 3311. There may be situations in which an insured depository institution disposes of all of its deposits through a series of simultaneous partial deposit assumptions involving multiple assuming institutions, rather than through a single total deposit assumption by one assuming institution. An example of this would be where all of the deposits of a transferring institution were assumed through a series of branch acquisitions by different assuming institutions that occurred on the same day. Viewed cumulatively, these partial assumptions would amount to a total assumption of the deposits of the transferring institution making certification necessary. In this situation, this final rule would require that the transferring institution file a certification. The current section 307.1 also does not distinguish between a deposit assumption involving operating institutions versus an assumption involving an institution in default and in FDIC receivership. The FDIC plays an integral role in the transfer and assumption of deposit liabilities when it is appointed as receiver for an insured depository institution in default, and has in its possession information regarding the deposit transfer and assumption transaction. Section 307.2(a) of this final rule creates an explicit exception from the certification requirement when the deposit liabilities are being transferred from an insured depository institution in default and the FDIC has been appointed as receiver. *Who must make the certification.* As noted, the current section 307.1 requires the assuming institution to provide certification to the FDIC. This final rule requires the transferring institution, or its legal successor (“transferring institution”), to make the certification. Generally, an institution transferring deposit liabilities will be in a better position than the assuming institution to know whether the transfer constitutes all of its deposits, thus triggering application of Part 307 and FDI Act section 8(q). This is particularly true in the case of an institution that transfers all of its deposit liabilities through multiple transfers to a variety of assuming institutions. In such a situation, it may be difficult for the assuming institutions to have sufficient knowledge of key facts in order to make certifications that make clear whether the transferring institution continues to hold insured deposits. In a merger or consolidation there may be only one surviving entity which is the legal successor to both the transferring and assuming institutions. In such instances, that surviving entity would provide any required certification. *Content and form of the certification.* Section 307.2(b) of this final rule establishes the certification's content. The requirements are similar to the current section 307.1 but clarify certain issues, such as where certifications should be filed with the FDIC, and the need for the certification to be on the letterhead of the transferring institution or its legal successor and to be signed by an authorized official. The rule also requires an institution that is contemporaneously relinquishing its authority to engage in the business of receiving deposits to provide the date that its authority terminated (or will terminate) as well as the method of termination ( *e.g.* , whether by the surrender of its charter, the cancellation of its charter or license to conduct a banking business, or otherwise). As discussed below, this information will be used by the FDIC to evaluate the need to issue an order terminating insurance. To assist the industry with compliance, the rule provides a template (Appendix A) that may be used to satisfy the section 307.2 certification requirements. *Evidence of Assumption.* Similar to the current section 307.1, section 307.2(d) of this final rule states that the receipt by the FDIC of an accurate certification for a total assumption as required by paragraphs (a),

(b)and

(c)of section 307.2 shall constitute satisfactory evidence of such deposit assumption, as required by section 8(q) of the FDI Act, and the insured status of the transferring institution shall terminate on the date of the receipt of the certification. The term “accurate” has been included to indicate that a materially inaccurate certification will not trigger the automatic termination of the transferring institution's insured status. Section 307.2(d) allows the FDIC to consider other evidence, in addition to a certification, of a total deposit assumption to constitute satisfactory evidence of an assumption for the purposes of section 8(q). *Issuance of an Order.* As noted in the October 2005 notice of proposed rulemaking, section 8(q) can be construed as automatically terminating an institution's insured status upon the FDIC's receipt of satisfactory evidence of a total assumption. The FDIC did not generally issue orders terminating the insured status of transferring institutions before 1983 when the rule was last revised, and the current section 307.1 does not discuss the issuance of such orders. In most cases of total deposit assumptions, the transferring institution's authority to engage in banking is contemporaneously cancelled. In such a situation, an FDIC order terminating insurance has no practical effect and is unnecessary. Accordingly, under this final rule no order terminating an institution's insured status will generally be issued when the transferring institution's authority to engage in banking is cancelled contemporaneously ( *i.e.* , generally within five business days after all deposits have been assumed). The rule also will not require orders when deposits are transferred and assumed after a default when the FDIC has been appointed as receiver of an insured institution. The rule does provide for the issuance of an FDIC order terminating the insured status of a transferring institution in the relatively limited circumstance in which a total transfer of deposit liabilities has occurred but the transferring institution's charter is not contemporaneously cancelled (the proposed rule had referred to this as an order confirming the termination of insurance). Absent the entry of an order terminating insured status, an institution in such a situation might attempt to resume accepting deposits sometime after the assumption transaction occurs. An institution might also attempt to sell its charter, which could allow what is in fact a new entity to conduct banking operations without FDIC review and approval. 4 4 Such a sale would require prior approval by the primary Federal regulator under the Bank Merger Act or the Change in Bank Control Act. IV. Section 307.3—Notice to Depositors When Insurance Is Voluntarily Terminated and Deposits Are Not Assumed An insured depository institution that proposes to voluntarily terminate its insured status without transferring all of its deposits to an FDIC-insured institution must obtain the FDIC's permission. 5 The current § 307.2 requires an insured bank or insured branch of a foreign bank seeking to voluntarily terminate its insured status, but whose deposits will not be assumed by another insured depository institution, to provide notice to its depositors of the date its insured status will terminate. A copy of this notice must be provided to and approved by the appropriate Regional Director of the Division of Supervision and Consumer Protection prior to the notice being distributed to the institution's depositors. This final rule clarifies that the notice must be on the institution's letterhead, signed by a duly authorized officer and sent to the depositor's last known address on the institution's books. To assist the industry with compliance, the rule provides a template (Appendix B) that may be used to satisfy the section 307.3 certification requirements. 5 FDI Act section 18(i)(3), 12 U.S.C. 1828(i)(3). This rule does not affect the requirements for FDIC approval of voluntary deposit insurance terminations under sections 8(a) and 8(p) of the FDI Act or for prior written consent for the conversion of an insured depository institution into a noninsured bank or institution as required by section 18(i)(3). V. Regulatory Analysis and Procedure A. Paperwork Reduction Act In accordance with the Paperwork Reduction Act (44 U.S.C. 3501 *et seq.* ), the FDIC may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid Office of Management and Budget

(OMB)control number. The collection of information contained in this rule was submitted to OMB for review and was approved under control number 3064-0124, which will expire on December 31, 2008. B. Regulatory Flexibility Act Pursuant to section 605(b) of the Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ), the FDIC certifies that this rule will not have a significant economic impact on a substantial number of small entities. The rule will reduce regulatory burden by eliminating the need for a certification to be filed with the FDIC when the liability for some, but not all, of the deposits of an insured institution are transferred to another institution. A certification requires a minimal amount of time and resources since it reports information readily available to the institution making the certification. C. Small Business Regulatory Enforcement Fairness Act The Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) (Title II, Pub. L. 104-121) provides generally for agencies to report rules to Congress and the General Accounting Office

(GAO)for review. The reporting requirement is triggered when a Federal agency issues a final rule. The FDIC will file the appropriate reports with Congress and the GAO as required by SBREFA. The Office of Management and Budget has determined that the rule does not constitute a “major rule” as defined by SBREFA. List of Subjects in 12 CFR Part 307 Bank deposit insurance, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, the Board of Directors of the FDIC hereby revises Part 307 of Title 12 of the Code of Federal Regulations to read as follows: PART 307—CERTIFICATION OF ASSUMPTION OF DEPOSITS AND NOTIFICATION OF CHANGES OF INSURED STATUS Sec. 307.1 Scope and purpose. 307.2 Certification of assumption of deposit liabilities. 307.3 Notice to depositors when insured status is voluntarily terminated and deposits are not assumed. Appendix A to Part 307—Transferring Institution Letterhead Appendix B to Part 307—Institution Letterhead Authority: 12 U.S.C. 1818(a)(6); 1818(q); and 1819(a) [Tenth]. § 307.1 Scope and purpose.

(a)*Scope.* This Part applies to all insured depository institutions, as defined in section 3(c)(2) of the Federal Deposit Insurance Act (FDI Act) (12 U.S.C. 1813(c)(2)).

(b)*Purpose.* This Part sets forth the rules governing:

(1)The time and manner for providing certification to the FDIC regarding the assumption of all of the deposit liabilities of an insured depository institution by one or more insured depository institutions; and

(2)The notification that an insured depository institution shall provide its depositors when a depository institution's insured status is being voluntarily terminated without its deposits being assumed by one or more insured depository institutions. § 307.2 Certification of assumption of deposit liabilities.

(a)*When certification is required.* Whenever all of the deposit liabilities of an insured depository institution are assumed by one or more insured depository institutions by merger, consolidation, other statutory assumption, or by contract, the transferring insured depository institution, or its legal successor, shall provide an accurate written certification to the FDIC that its deposit liabilities have been assumed. No certification shall be required when deposit liabilities are assumed by an operating insured depository institution from an insured depository institution in default, as defined in section 3(x)(1) of the FDI Act (12 U.S.C. 1813(x)(1)), and that has been placed under FDIC receivership.

(b)*Certification requirements.* The certification required by paragraph

(a)of this section shall be provided on official letterhead of the transferring insured depository institution or its legal successor, signed by a duly authorized official, and state the date the assumption took effect. The certification shall indicate the date on which the transferring institution's authority to engage in banking has terminated or will terminate as well as the method of termination (e.g., whether by the surrender of its charter, by the cancellation of its charter or license to conduct a banking business, or otherwise). The certification may follow the form contained in Appendix A of this part. In a merger or consolidation where there is only one surviving entity which is the legal successor to both the transferring and assuming institutions, the surviving entity shall provide any required certification.

(c)*Filing.* The certification required by paragraph

(a)of this section shall be provided within 30 calendar days after the assumption takes effect, and shall be submitted to the appropriate Regional Director of the FDIC's Division of Supervision and Consumer Protection, as defined in 12 CFR 303.2(g).

(d)*Evidence of assumption.* The receipt by the FDIC of an accurate certification for a total assumption as required by paragraphs (a),

(b)and

(c)of this section shall constitute satisfactory evidence of such deposit assumption, as required by section 8(q) of the FDI Act (12 U.S.C. 1818(q)), and the insured status of the transferring institution shall terminate on the date of the receipt of the certification. In appropriate circumstances, the FDIC, in its sole discretion, may require additional information, or may consider other evidence of a deposit assumption to constitute satisfactory evidence of such assumption for purposes of section 8(q).

(e)*Issuance of an order.* The Executive Secretary, upon request from the Director of the Division of Supervision and Consumer Protection and with the concurrence of the General Counsel, or their respective designees, shall issue an order terminating the insured status of the transferring insured depository institution as of the date of receipt by the FDIC of satisfactory evidence of such assumption, pursuant to section 8(q) of the FDI Act and this regulation. Generally, no order shall be issued, under this paragraph, and insured status shall be cancelled by operation of law:

(1)If the charter of the transferring institution has been cancelled, revoked, rescinded, or otherwise terminated by operation of applicable state or federal statutes or regulations, or by action of the chartering authority for the transferring institution essentially contemporaneously, that is, generally within five business days after all deposits have been assumed; or

(2)If the transferring institution is an insured depository institution in default and for which the FDIC has been appointed receiver. § 307.3 Notice to depositors when insured status is voluntarily terminated and deposits are not assumed.

(a)*Notice required.* An insured depository institution that has obtained authority from the FDIC to terminate its insured status under sections 8(a), 8(p) or 18(i)(3) of the FDI Act without its deposit liabilities being assumed by one or more insured depository institutions shall provide to each of its depositors, at the depositor's last known address of record on the books of the institution, prior written notification of the date the institution's insured status shall terminate.

(b)*Prior approval of notice.* The insured depository institution shall provide the appropriate Regional Director of the FDIC's Division of Supervision and Consumer Protection, as defined in 12 CFR 303.2(g), a copy of the proposed notice for approval. After being approved, the notice shall be provided to depositors by the insured depository institution at the time and in the manner specified by the appropriate Regional Director.

(c)*Form of notice.* The notice to depositors required by paragraph

(a)of this section shall be provided on the official letterhead of the insured depository institution, shall bear the signature of a duly authorized officer, and, unless otherwise specified by the appropriate Regional Director, may follow the form of the notice contained in Appendix B of this part.

(d)*Other requirements possible.* The FDIC may require the insured depository institution to take such other actions as the FDIC considers necessary and appropriate for the protection of depositors. Appendix A to Part 307—Transferring Institution Letterhead [Date] [Name and Address of appropriate FDIC Regional Director] SUBJECT: *Certification of Total Assumption of Deposits* This certification is being provided pursuant to 12 U.S.C. 1818(q) and 12 CFR 307.2. On [ *state the date the deposit assumption took effect* ], [ *state the name of the depository institution assuming the deposit liabilities* ] assumed all of the deposits of [ *state the name and location of the transferring institution whose deposits were assumed* ]. [If applicable, state the date and method by which the transferring institution's authority to engage in banking was or will be terminated.] Please contact the undersigned, at [ *telephone number* ], if additional information is needed. Sincerely, By: [Name and Title of Authorized Representative] Appendix B to Part 307—Institution Letterhead [Date] [Name and Address of Depositor] SUBJECT: *Notice to Depositor of Voluntary Termination of Insured Status* The insured status of [ *name of insured depository institution* ], under the provisions of the Federal Deposit Insurance Act, will terminate as of the close of business on [ *state the date* ] (“termination date”). Insured deposits in the [ *name of insured depository institution* ] on the termination date, less all withdrawals from such deposits made subsequent to that date, will continue to be insured by the Federal Deposit Insurance Corporation, to the extent provided by law, until [ *state the date* ]. The Federal Deposit Insurance Corporation will not insure any new deposits or additions to existing deposits made by you after the termination date. This Notice is being provided pursuant to 12 CFR 307.3. Please contact [ *name of institution official in charge of depositor inquiries* ], at [ *name and address of insured depository institution* ] if additional information is needed regarding this Notice or the insured status of your account(s). Sincerely, By: [Name and Title of Authorized Representative] By order of the Board of Directors, at Washington, DC, on this 10th day of February, 2006. Federal Deposit Insurance Corporation. Robert Feldman, Executive Secretary. [FR Doc. 06-1568 Filed 2-17-06; 8:45 am]

Connectionstraces to 9

Traces to 9 documents

U.S. Code