Reserve Bank Withdrawal From Noncash Collection Service, 10402-10404 [05-4110]

Download as PDF 10402 Federal Register / Vol. 70, No. 41 / Thursday, March 3, 2005 / Notices Board of Governors of the Federal Reserve System, February 25, 2005. Robert deV. Frierson, Deputy Secretary of the Board. [FR Doc. 05–4065 Filed 3–2–05; 8:45 am] BILLING CODE 6210–01–S FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisition of Shares of Bank or Bank Holding Companies The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and § 225.41 of the Board’s Regulation Y (12 CFR 225.41) to acquire a bank or bank holding company. The factors that are considered in acting on the notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)). The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the office of the Board of Governors. Interested persons may express their views in writing to the Reserve Bank indicated for that notice or to the offices of the Board of Governors. Comments must be received not later than March 17, 2005.. A. Federal Reserve Bank of Richmond (A. Linwood Gill, III, Vice President) 701 East Byrd Street, Richmond, Virginia 23261–4528: 1. Hylton Wright, Betty Wright, Tamara Thomas, Loudene Riggs, Alease Lambert, and Evelyn Wright, Mounty Airy, North Carolina; as a group acting in concert to acquire voting shares of Surrey Bancorp, Mount Airy, North Carolina, and thereby indirectly acquire voting shares of Surrey Bank & Trust, Mount Airy, North Carolina. Board of Governors of the Federal Reserve System, February 25, 2005. Robert deV. Frierson, Deputy Secretary of the Board. [FR Doc. 05–4066 Filed 3–2–05; 8:45 am] BILLING CODE 6210–01–S FEDERAL RESERVE SYSTEM Formations of, Acquisitions by, and Mergers of Bank Holding Companies The companies listed in this notice have applied to the Board for approval, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) (BHC Act), Regulation Y (12 CFR Part 225), and all other applicable statutes and regulations to become a bank holding company and/or to acquire the assets or the ownership of, control of, or VerDate jul<14>2003 16:38 Mar 02, 2005 Jkt 205001 the power to vote shares of a bank or bank holding company and all of the banks and nonbanking companies owned by the bank holding company, including the companies listed below. The applications listed below, as well as other related filings required by the Board, are available for immediate inspection at the Federal Reserve Bank indicated. The application also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing on the standards enumerated in the BHC Act (12 U.S.C. 1842(c)). If the proposal also involves the acquisition of a nonbanking company, the review also includes whether the acquisition of the nonbanking company complies with the standards in section 4 of the BHC Act (12 U.S.C. 1843). Unless otherwise noted, nonbanking activities will be conducted throughout the United States. Additional information on all bank holding companies may be obtained from the National Information Center website at www.ffiec.gov/nic/. Unless otherwise noted, comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors not later than March 28, 2005. A. Federal Reserve Bank of Richmond (A. Linwood Gill, III, Vice President) 701 East Byrd Street, Richmond, Virginia 23261–4528: 1. SCCB Financial Corp., Columbia, South Carolina; to become a bank holding company by acquiring 100 percent of the voting shares of South Carolina Community Bank, Columbia, South Carolina. B. Federal Reserve Bank of Atlanta (Andre Anderson, Vice President) 1000 Peachtree Street, N.E., Atlanta, Georgia 30303: 1. Saladrigas Holdings, LP, Miami, Florida; to become a bank holding company by acquiring 100 percent of the voting shares of Premier American Bank, Miami, Florida. C. Federal Reserve Bank of Minneapolis (Jacqueline G. Nicholas, Community Affairs Officer) 90 Hennepin Avenue, Minneapolis, Minnesota 55480–0291: 1. Security State Bank Holding Company, Jamestown, North Dakota; to acquire 100 percent of the voting shares of CNB, Inc., Walker, Minnesota, and thereby indirectly acquire voting shares of Centennial National Bank, Walker, Minnesota. D. Federal Reserve Bank of Kansas City (Donna J. Ward, Assistant Vice President) 925 Grand Avenue, Kansas City, Missouri 64198–0001: PO 00000 Frm 00050 Fmt 4703 Sfmt 4703 1. Republic Bancorp, Inc., Munden, Kansas; to become a bank holding company by acquiring 99.72 percent of the voting shares of National Family Bank, Munden, Kansas. Board of Governors of the Federal Reserve System, February 28, 2005. Robert deV. Frierson, Deputy Secretary of the Board. [FR Doc. 05–4154 Filed 3–2–05; 8:45 am] BILLING CODE 6210–01–S FEDERAL RESERVE SYSTEM [Docket No. OP–1214] Reserve Bank Withdrawal From Noncash Collection Service Board of Governors of the Federal Reserve System. ACTION: Notice. AGENCY: SUMMARY: The Board has approved the withdrawal of the Federal Reserve Banks from the noncash collection service. The noncash collection service involves the collection and processing of definitive municipal bonds and coupons issued by state and local governments. The withdrawal from this service is prompted by the declining volume of definitive municipal securities, the expected underrecovery of costs in future years, and the availability of alternate service providers and substitutable services. DATES: Items for deposit will be accepted until September 30, 2005, and withdrawal will be completed on December 30, 2005. FOR FURTHER INFORMATION CONTACT: Kent Owens, Manager (202/728–5848), or Lyndsay Huot, Financial Services Analyst (202/452–5238), Division of Reserve Bank Operations and Payment Systems; for the hearing impaired only: Telecommunications Device for the Deaf, 202/263–4869. SUPPLEMENTARY INFORMATION I. Background The Federal Reserve Banks currently provide a service to depository institutions for the collection of matured or called definitive municipal securities.1 Definitive municipal securities are registered or bearer bonds that have been issued with interest coupons in certificated, or physical, form by local governments, as well as by states and their political subdivisions and agencies.2 The Reserve Banks 1 The Reserve Banks will accept deposits of securities up to 30 days prior to maturity. 2 Such securities are ‘‘noncash’’ items under Regulation J (12 CFR 210.2(k)). E:\FR\FM\03MRN1.SGM 03MRN1 Federal Register / Vol. 70, No. 41 / Thursday, March 3, 2005 / Notices currently accept deposits of matured or called bonds and coupons from depository institutions, identify the appropriate paying agent, and present the items to the paying agent for collection. These services are collectively referred to as the ‘‘noncash collection service.’’ On October 19, 2004, the Board requested comment on a proposal for the Reserve Banks to withdraw from the noncash collection service (69 FR 61496). Several factors support the Reserve Banks’ proposal to withdraw from this service: (1) The volume, customers, and paying agents in the market for noncash collection services are in decline, (2) the Reserve Bank service is facing future cost-recovery challenges, and (3) the private sector can provide an adequate level of similar or substitutable services to the market. Municipal bond and coupon volume has been declining since the passage of the Tax Equity and Fiscal Responsibility Act of 1982, which effectively eliminated the issuance of municipal bearer bonds. In recent years, the decline in volume has accelerated due to the increase in called bonds in the low-interest rate environment. In fact, over the past five years volume has decreased by an average of 20 percent annually and is expected to decline by a further one-third in 2005. The noncash collection service has also experienced a decline in customers, and, currently, there are only about 1,000 depository institutions that use the Reserve Banks’ service. In addition, consolidation in the market has reduced the number of paying agents to which the Reserve Banks present noncash collection items from roughly 3,500 to about 100. Although the Reserve Banks have recovered the costs of their noncash collection service over the long run, they project a significant underrecovery of costs beginning in 2005. The declines in volume and customers, described above, have led to a general decline in service revenue. Because the noncash collection service is subject to strict custody control requirements for handling physical securities, its costs are largely fixed. The Reserve Banks believe that the interaction of these factors will lead to underrecovery in 2005 and beyond even if they raise fees significantly. Depository institutions have a number of options available for the processing of definitive municipal securities. The Depository Trust Company (DTC) and some correspondent banks provide services similar to the Reserve Banks’ noncash collection service. Noncash collection customers that are also participants in DTC would be able to VerDate jul<14>2003 16:38 Mar 02, 2005 Jkt 205001 use DTC’s coupon collection service as an alternative. If a customer is not already a participant in DTC, the benefits of using DTC for its municipal securities processing may not outweigh the cost of becoming a participant.3 These customers could use a correspondent bank to obtain noncash collection services. These correspondent institutions may, in turn, use DTC services, if they are participants, or they may present directly to the paying agents. These options should supply an adequate level of the same, or similar, services to customers that want to continue to use a service provider for a fee. In addition to the alternate service providers available, depository institutions have the option of presenting directly to the paying agent for the redemption of their definitive municipal securities. While depository institutions may incur additional internal resource costs to present directly, paying agents do not charge presenters for the redemption of their coupons or bonds. To facilitate the identification of paying agents, the Reserve Banks will make their paying agent database available on the Federal Reserve Financial Services Web site at https://www.frbservices.org. This database will include securities descriptions and contact information for the associated paying agents, including phone numbers and addresses. This option should reasonably meet the needs of customers that want to use their own resources to process definitive municipal securities, rather than use a fee-based service provider. II. Summary of Comments and Analysis The Board has received four comments in response to this proposal—two from bank trade associations, one from a commercial bank, and one from a Federal Reserve Bank. None of the commenters raised any objection to the proposal. One commenter requested the development of a transition plan for customers of the noncash collection service, including transition planning tools, a paying agent database, and a timeline for withdrawal. One commenter requested that the Reserve Banks begin providing customers with paying agent information on all collected items as they are processed and provide a listing of institutions that offer correspondent municipal coupon and bond collection services. 3 Based on the published 2004 fee schedule, the fee for a DTC participant account is $760 per account per month for the first five accounts. PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 10403 In response to the request for a transition plan, the Board agrees with the need to provide information to customers to facilitate an orderly transition, and the Reserve Banks plan to provide transition information to their customers via the Federal Reserve Financial Services Web site at https:// www.frbservices.org. The Reserve Banks will make their existing paying agent database available, in searchable form, to the public via the Web site by approximately midyear 2005 and will also coordinate opportunities for customers to receive training on how to use this database. The Reserve Banks will periodically update the database until they complete withdrawal, at which time the database will remain current as of the last day of the service. Additionally, the Board has specified the final date for acceptance of deposits, September 30, 2005, and the final date of the service, December 30, 2005, to allow depository institutions to begin planning accordingly. The earlier cutoff date for deposits is necessary to allow the Reserve Banks sufficient time to process all items, including any items returned from paying agents, before completing withdrawal. In response to the request that the Reserve Banks provide customers information on paying agents with each processed item, the Board believes that the midyear availability of the paying agent database will allow customers sufficient time to plan to process their own items and, therefore, does not find it necessary to incur the cost of adjusting business processes in the short term. In response to the request for a listing of correspondent banks that offer a noncash collection service, the Board notes that the Reserve Banks do not have information on the full range of institutions that currently provide this service or those that may choose to enter the market. Therefore, the Board has concluded that it would not be appropriate to provide a partial list, which would discriminate among potential service providers. DTC is identified because of its unique role as a market utility that both processes and safekeeps municipal securities. III. Competitive Impact Analysis The Board has established procedures for assessing the competitive impact of changes that have a direct and material adverse effect on the ability of other service providers to compete effectively with the Federal Reserve in providing similar services, due to differing legal powers or constraints or due to a dominant market position of the Federal E:\FR\FM\03MRN1.SGM 03MRN1 10404 Federal Register / Vol. 70, No. 41 / Thursday, March 3, 2005 / Notices Reserve deriving from such differences.4 The withdrawal by the Reserve Banks from the noncash collection service will leave the provision of this service to private-sector providers; therefore, it will have no material, adverse effect on the ability of other service providers to provide similar services. IV. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. ch. 3506; 5 CFR part 1320 Appendix A.1), the Board has reviewed the notice under the authority delegated to the Board by the Office of Management and Budget. No collections of information pursuant to the Paperwork Reduction Act are contained in the notice. By order of the Board of Governors of the Federal Reserve System, February 28, 2005. Jennifer J. Johnson, Secretary of the Board. [FR Doc. 05–4110 Filed 3–2–05; 8:45 am] BILLING CODE 6210–01–P Ms. Linda Nelson, Procurement Analyst, Contract Policy Division, at telephone (202) 501–1900 or via e-mail to linda.nelson@gsa.gov. FOR FURTHER INFORMATION CONTACT: Submit comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden to the Regulatory Secretariat (VIR), General Services Administration, Room 4035, 1800 F Street, NW., Washington, DC 20405. Please cite OMB Control No. 3090–0235, Price Reductions Clause, in all correspondence. ADDRESSES: [OMB Control No. 3090–0235] General Services Administration Acquisition Regulation; Information Collection; Price Reductions Clause Office of the Chief Acquisition Officer, GSA. ACTION: Notice of request for comments regarding a renewal to an existing OMB clearance. AGENCY: Under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), the General Services Administration will be submitting to the Office of Management and Budget (OMB) a request to review and approve a renewal of a currently approved information collection requirement regarding the GSAR Price Reductions Clause. Public comments are particularly invited on: Whether this collection of information is necessary and whether it will have practical utility; whether our estimate of the public burden of this collection of information is accurate, and based on valid assumptions and methodology; ways to enhance the quality, utility, and clarity of the information to be collected. DATES: Submit comments on or before: May 2, 2005. SUMMARY: 4 These procedures are described in the Board’s policy statement ‘‘The Federal Reserve in the Payments System,’’ Federal Reserve Regulatory Service 9–1558. VerDate jul<14>2003 16:38 Mar 02, 2005 Jkt 205001 A. Purpose The Price Reductions Clause used in multiple award schedule contracts ensures that the Government maintains its relationship with the contractor’s customer or category of customers, upon which the contract is predicated. Number of Respondents: 16,680. Total Annual Responses: 33,360. Average hours per response: 7.5 hours. Total Burden Hours: 250,200. Obtaining copies of proposals: Requesters may obtain a copy of the information collection documents from the General Services Administration, Regulatory Secretariat (VIR), 1800 F Street, NW., Room 4035, Washington, DC 20405, telephone (202) 208–7312. Please cite OMB Control No. 3090–0235, Price Reductions Clause, in all correspondence. Dated: February 25, 2005 Rodney P. Lantier Director, Contract Policy Division [FR Doc. 05–4126 Filed 3–2–05; 8:45 am] BILLING CODE 6820–61–S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–4971–N–12] Notice of Submission of Proposed Information Collection to OMB; Public Housing Admissions/Occupancy Policies Office of the Chief Information Officer, HUD. ACTION: Notice. AGENCY: SUMMARY: The proposed information collection requirement described below has been submitted to the Office of Management and Budget (OMB) for review, as required by the Paperwork PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 Interested persons are invited to submit comments regarding this proposal. Comments should refer to the proposal by name and/or OMB approval Number (2577–0220) and should be sent to: HUD Desk Officer, Office of Management and Budget, New Executive Office Building, Washington, DC 20503; fax: 202–395–6974. FOR FURTHER INFORMATION CONTACT: Wayne Eddins, Reports Management Officer, AYO, Department of Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 20410; email Wayne_Eddins@HUD.gov; or Lillian Deitzer at Lillian_L_Deitzer@HUD.gov or telephone (202) 708–2374. This is not a toll-free number. Copies of available documents submitted to OMB may be obtained from Mr. Eddins or Ms Deitzer and at HUD’s Web site at https:// www5.hud.gov:63001/po/i/icbts/ collectionsearch.cfm. ADDRESSES: SUPPLEMENTARY INFORMATION: B. Annual Reporting Burden GENERAL SERVICES ADMINISTRATION Reduction Act. The Department is soliciting public comments on the subject proposal. To ensure the low-income character of public housing projects and to ensure sound management practices, Public Housing Agencies (PHAs) which have entered into an Annual Contribution Contract (ACC) with HUD must develop, and keep on file, admission and occupancy policies approved by HUD. The previous requirement for plans for eligibility of police officers is no longer included. DATES: Comments Due Date: April 4, 2005. This notice informs the public that the Department of Housing and Urban Development has submitted to OMB a request for approval of the information collection described below. This notice is soliciting comments from members of the public and affecting agencies concerning the proposed collection of information to: (1) Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (2) evaluate the accuracy of the agency’s estimate of the burden of the proposed collection of information; (3) enhance the quality, utility, and clarity of the information to be collected; and (4) minimize the burden of the collection of information on those who are to respond; including through the use of appropriate automated collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. SUPPLEMENTARY INFORMATION: E:\FR\FM\03MRN1.SGM 03MRN1

Agencies

[Federal Register Volume 70, Number 41 (Thursday, March 3, 2005)]
[Notices]
[Pages 10402-10404]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-4110]


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FEDERAL RESERVE SYSTEM

[Docket No. OP-1214]


Reserve Bank Withdrawal From Noncash Collection Service

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Board has approved the withdrawal of the Federal Reserve 
Banks from the noncash collection service. The noncash collection 
service involves the collection and processing of definitive municipal 
bonds and coupons issued by state and local governments. The withdrawal 
from this service is prompted by the declining volume of definitive 
municipal securities, the expected underrecovery of costs in future 
years, and the availability of alternate service providers and 
substitutable services.

DATES: Items for deposit will be accepted until September 30, 2005, and 
withdrawal will be completed on December 30, 2005.

FOR FURTHER INFORMATION CONTACT: Kent Owens, Manager (202/728-5848), or 
Lyndsay Huot, Financial Services Analyst (202/452-5238), Division of 
Reserve Bank Operations and Payment Systems; for the hearing impaired 
only: Telecommunications Device for the Deaf, 202/263-4869.

SUPPLEMENTARY INFORMATION

I. Background

    The Federal Reserve Banks currently provide a service to depository 
institutions for the collection of matured or called definitive 
municipal securities.\1\ Definitive municipal securities are registered 
or bearer bonds that have been issued with interest coupons in 
certificated, or physical, form by local governments, as well as by 
states and their political subdivisions and agencies.\2\ The Reserve 
Banks

[[Page 10403]]

currently accept deposits of matured or called bonds and coupons from 
depository institutions, identify the appropriate paying agent, and 
present the items to the paying agent for collection. These services 
are collectively referred to as the ``noncash collection service.''
---------------------------------------------------------------------------

    \1\ The Reserve Banks will accept deposits of securities up to 
30 days prior to maturity.
    \2\ Such securities are ``noncash'' items under Regulation J (12 
CFR 210.2(k)).
---------------------------------------------------------------------------

    On October 19, 2004, the Board requested comment on a proposal for 
the Reserve Banks to withdraw from the noncash collection service (69 
FR 61496). Several factors support the Reserve Banks' proposal to 
withdraw from this service: (1) The volume, customers, and paying 
agents in the market for noncash collection services are in decline, 
(2) the Reserve Bank service is facing future cost-recovery challenges, 
and (3) the private sector can provide an adequate level of similar or 
substitutable services to the market.
    Municipal bond and coupon volume has been declining since the 
passage of the Tax Equity and Fiscal Responsibility Act of 1982, which 
effectively eliminated the issuance of municipal bearer bonds. In 
recent years, the decline in volume has accelerated due to the increase 
in called bonds in the low-interest rate environment. In fact, over the 
past five years volume has decreased by an average of 20 percent 
annually and is expected to decline by a further one-third in 2005. The 
noncash collection service has also experienced a decline in customers, 
and, currently, there are only about 1,000 depository institutions that 
use the Reserve Banks' service. In addition, consolidation in the 
market has reduced the number of paying agents to which the Reserve 
Banks present noncash collection items from roughly 3,500 to about 100.
    Although the Reserve Banks have recovered the costs of their 
noncash collection service over the long run, they project a 
significant underrecovery of costs beginning in 2005. The declines in 
volume and customers, described above, have led to a general decline in 
service revenue. Because the noncash collection service is subject to 
strict custody control requirements for handling physical securities, 
its costs are largely fixed. The Reserve Banks believe that the 
interaction of these factors will lead to underrecovery in 2005 and 
beyond even if they raise fees significantly.
    Depository institutions have a number of options available for the 
processing of definitive municipal securities. The Depository Trust 
Company (DTC) and some correspondent banks provide services similar to 
the Reserve Banks' noncash collection service. Noncash collection 
customers that are also participants in DTC would be able to use DTC's 
coupon collection service as an alternative. If a customer is not 
already a participant in DTC, the benefits of using DTC for its 
municipal securities processing may not outweigh the cost of becoming a 
participant.\3\ These customers could use a correspondent bank to 
obtain noncash collection services. These correspondent institutions 
may, in turn, use DTC services, if they are participants, or they may 
present directly to the paying agents. These options should supply an 
adequate level of the same, or similar, services to customers that want 
to continue to use a service provider for a fee.
---------------------------------------------------------------------------

    \3\ Based on the published 2004 fee schedule, the fee for a DTC 
participant account is $760 per account per month for the first five 
accounts.
---------------------------------------------------------------------------

    In addition to the alternate service providers available, 
depository institutions have the option of presenting directly to the 
paying agent for the redemption of their definitive municipal 
securities. While depository institutions may incur additional internal 
resource costs to present directly, paying agents do not charge 
presenters for the redemption of their coupons or bonds. To facilitate 
the identification of paying agents, the Reserve Banks will make their 
paying agent database available on the Federal Reserve Financial 
Services Web site at https://www.frbservices.org. This database will 
include securities descriptions and contact information for the 
associated paying agents, including phone numbers and addresses. This 
option should reasonably meet the needs of customers that want to use 
their own resources to process definitive municipal securities, rather 
than use a fee-based service provider.

II. Summary of Comments and Analysis

    The Board has received four comments in response to this proposal--
two from bank trade associations, one from a commercial bank, and one 
from a Federal Reserve Bank. None of the commenters raised any 
objection to the proposal. One commenter requested the development of a 
transition plan for customers of the noncash collection service, 
including transition planning tools, a paying agent database, and a 
timeline for withdrawal. One commenter requested that the Reserve Banks 
begin providing customers with paying agent information on all 
collected items as they are processed and provide a listing of 
institutions that offer correspondent municipal coupon and bond 
collection services.
    In response to the request for a transition plan, the Board agrees 
with the need to provide information to customers to facilitate an 
orderly transition, and the Reserve Banks plan to provide transition 
information to their customers via the Federal Reserve Financial 
Services Web site at https://www.frbservices.org. The Reserve Banks will 
make their existing paying agent database available, in searchable 
form, to the public via the Web site by approximately midyear 2005 and 
will also coordinate opportunities for customers to receive training on 
how to use this database. The Reserve Banks will periodically update 
the database until they complete withdrawal, at which time the database 
will remain current as of the last day of the service. Additionally, 
the Board has specified the final date for acceptance of deposits, 
September 30, 2005, and the final date of the service, December 30, 
2005, to allow depository institutions to begin planning accordingly. 
The earlier cutoff date for deposits is necessary to allow the Reserve 
Banks sufficient time to process all items, including any items 
returned from paying agents, before completing withdrawal.
    In response to the request that the Reserve Banks provide customers 
information on paying agents with each processed item, the Board 
believes that the midyear availability of the paying agent database 
will allow customers sufficient time to plan to process their own items 
and, therefore, does not find it necessary to incur the cost of 
adjusting business processes in the short term. In response to the 
request for a listing of correspondent banks that offer a noncash 
collection service, the Board notes that the Reserve Banks do not have 
information on the full range of institutions that currently provide 
this service or those that may choose to enter the market. Therefore, 
the Board has concluded that it would not be appropriate to provide a 
partial list, which would discriminate among potential service 
providers. DTC is identified because of its unique role as a market 
utility that both processes and safekeeps municipal securities.

III. Competitive Impact Analysis

    The Board has established procedures for assessing the competitive 
impact of changes that have a direct and material adverse effect on the 
ability of other service providers to compete effectively with the 
Federal Reserve in providing similar services, due to differing legal 
powers or constraints or due to a dominant market position of the 
Federal

[[Page 10404]]

Reserve deriving from such differences.\4\ The withdrawal by the 
Reserve Banks from the noncash collection service will leave the 
provision of this service to private-sector providers; therefore, it 
will have no material, adverse effect on the ability of other service 
providers to provide similar services.
---------------------------------------------------------------------------

    \4\ These procedures are described in the Board's policy 
statement ``The Federal Reserve in the Payments System,'' Federal 
Reserve Regulatory Service 9-1558.
---------------------------------------------------------------------------

IV. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
ch. 3506; 5 CFR part 1320 Appendix A.1), the Board has reviewed the 
notice under the authority delegated to the Board by the Office of 
Management and Budget. No collections of information pursuant to the 
Paperwork Reduction Act are contained in the notice.

    By order of the Board of Governors of the Federal Reserve 
System, February 28, 2005.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 05-4110 Filed 3-2-05; 8:45 am]
BILLING CODE 6210-01-P
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