Extension of Corporate Powers, 60420-60422 [05-20768]
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60420
Federal Register / Vol. 70, No. 200 / Tuesday, October 18, 2005 / Rules and Regulations
Administrative Procedure Act
The Board has not followed the
provisions of 5 U.S.C. 553(b) relating to
notice and public participation in
connection with the adoption of this
final rule. The revisions to the appendix
are technical in nature, and the routing
symbol revisions are required by the
statutory and regulatory definitions of
‘‘check-processing region.’’ Because
there is no substantive change on which
to seek public input, the Board has
determined that the § 553(b) notice and
comment procedures are unnecessary.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3506;
5 CFR 1320 Appendix A.1), the Board
has reviewed the final rule under
authority delegated to the Board by the
Office of Management and Budget.
These technical amendments to
appendix A of Regulation CC will (1)
delete the reference to the Oklahoma
City branch office of the Federal Reserve
Bank of Kansas City and reassign the
Federal Reserve routing symbols
currently listed under that office to the
head office of the Federal Reserve Bank
of Dallas and (2) delete the reference to
the Columbus office of the Federal
Reserve Bank of Cleveland and reassign
the routing symbols listed under that
office to the Cincinnati Branch office
and the head office of that Reserve
Bank. The depository institutions that
are located in the affected check
processing regions and that include the
routing numbers in their disclosure
statements would be required to notify
customers of the resulting change in
availability under § 229.18(e). However,
because all paperwork collection
procedures associated with Regulation
CC already are in place, the Board
anticipates that no additional burden
will be imposed as a result of this
rulemaking.
12 CFR Chapter II
List of Subjects in 12 CFR Part 229
Banks, Banking, Reporting and
recordkeeping requirements.
*
*
*
*
Head Office
1010
3010
1011
3011
1012
3012
1019
3019
Denver Branch
1020
3020
1021
3021
1022
3022
1023
3023
1070
3070
1240
3240
1241
3241
1242
3242
1243
3243
*
1. The authority citation for part 229
continues to read as follows:
I
Authority: 12 U.S.C. 4001–4010, 12 U.S.C.
5001–5018.
Frm 00016
*
*
*
*
*
BILLING CODE 6210–01–P
*
*
*
Cincinnati Branch
0420
2420
0421
2421
0422
2422
0423
2423
0442
2442
0515
2515
0519
2519
PO 00000
*
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 05–20661 Filed 10–17–05; 8:45 am]
*
*
*
By order of the Board of Governors of the
Federal Reserve System, acting through the
Secretary of the Board under delegated
authority, October 11, 2005.
*
*
*
*
I 3. Effective January 21, 2006, the
Fourth Federal Reserve District routing
symbol list in Appendix A is amended
by removing the listings for 0442 and
2442 from the Columbus office and by
revising the Cincinnati listings to read
as follows:
*
*
Head Office
0410
2410
0412
2412
0430
2430
0432
2432
0433
2433
0434
2434
0440
2440
0441
2441
0720
2720
0724
2724
*
*
*
*
*
*
4. Effective February 11, 2006, the
Fourth Federal Reserve District routing
symbol list in Appendix A is amended
by deleting the remaining listings and
heading for the Columbus office, and
revising the listings for the Cleveland
head office to read as follows:
I
Fourth Federal Reserve District
[Federal Reserve Bank of Cleveland]
Head Office
1030
3030
1031
3031
1039
3039
1110
3110
1111
3111
1113
3113
1119
3119
1120
3120
1122
3122
1123
3123
1130
3130
1131
3131
1140
3140
1149
3149
1163
3163
*
2740
2749
2813
2830
2839
2863
*
*
Eleventh Federal Reserve District
[Federal Reserve Bank of Dallas]
*
0740
0749
0813
0830
0839
0863
Appendix A To Part 229—Routing
Number Guide To Next-Day
Availability Checks and Local Checks
Fourth Federal Reserve District
PART 229—AVAILABILITY OF FUNDS
AND COLLECTION OF CHECKS
(REGULATION CC)
Jkt 208001
*
Tenth Federal Reserve District
[Federal Reserve Bank of Kansas City]
*
For the reasons set forth in the
preamble, the Board is amending 12
CFR part 229 to read as follows:
I
16:44 Oct 17, 2005
Appendix A To Part 229—Routing
Number Guide To Next-Day
Availability Checks and Local Checks
Appendix A To Part 229—Routing
Number Guide To Next-Day
Availability Checks and Local Checks
Authority and Issuance
VerDate Aug<31>2005
2. Effective December 10, 2005, the
Tenth and Eleventh Federal Reserve
District routing symbol lists in appendix
A are revised to read as follows:
I
Fmt 4700
Sfmt 4700
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 333
RIN 3064–AC94
Extension of Corporate Powers
Federal Deposit Insurance
Corporation.
ACTION: Interpretive rule; request for
comments.
AGENCY:
SUMMARY: The Federal Deposit
Insurance Corporation (FDIC) is
amending an interpretative rule (12 CFR
333.101(b)) which states that insured
State nonmember banks not exercising
trust powers may offer self-directed
traditional Individual Retirement and
Keogh Plan accounts without the prior
written consent of the FDIC. As
amended, the interpretive ruling is
expanded to expressly cover Coverdell
Education Savings Accounts, Roth
E:\FR\FM\18OCR1.SGM
18OCR1
Federal Register / Vol. 70, No. 200 / Tuesday, October 18, 2005 / Rules and Regulations
Individual Retirement Accounts, Health
Savings Accounts, and other similar
accounts.
DATES: These amendments are effective
October 18, 2005. Submit comments on
or before January 17, 2006.
ADDRESSES: Interested parties are
invited to submit written comments to
the FDIC by any of the following
methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Agency Web Site: https://
www.fdic.gov/regulations/laws/federal/
propose.html. Follow the instructions
for submitting comments on the FDIC
Web site.
• E-mail: comments@fdic.gov.
Include ‘‘Part 333—Extension of
Corporate Powers’’ in the subject line of
the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/Legal
ESS, Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429.
• Hand Delivery/Courier: Comments
may be hand-delivered to the guard
station located at the rear of the FDIC’s
550 17th Street building (accessible
from F Street) on business days between
7 a.m. and 5 p.m.
Instructions: All submissions received
must include the agency name and use
the title ‘‘Part 333—Extension of
Corporate Powers.’’ All comments will
be posted without change to https://
www.fdic.gov/regulations/laws/federal/
propose.html, including any personal
information provided. Comments may
be inspected and photocopied in the
FDIC Public Information Center, Room
100, 801 17th Street, NW., Washington,
DC, between 9 a.m. and 4:30 p.m. on
business days.
FOR FURTHER INFORMATION CONTACT:
Anthony J. DiMilo, Examination
Specialist, Division of Supervision and
Consumer Protection, (202) 898–7496,
or Benjamin W. McDonough, Attorney,
Legal Division, (202) 898–7411, Federal
Deposit Insurance Corporation, 550 17th
St., NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
I. Background
Section 333.2 of the FDIC’s
regulations (12 CFR 333.2) prohibits an
insured nonmember bank from changing
the general character of its business
without the prior written consent of the
FDIC. In general, exercising trust powers
constitutes a change in the general
character of the business of an insured
nonmember bank that requires the prior
written consent of the FDIC. FDIC
interpretive rule at 12 CFR 333.101(b)
VerDate Aug<31>2005
16:44 Oct 17, 2005
Jkt 208001
(section 333.101(b)) makes clear,
however, that an insured nonmember
bank that does not have authority to
exercise trust powers may act as trustee
or custodian of specific retirement
accounts so long as the bank does not
exercise investment discretion or
provide any investment advice with
respect to the accounts. (50 FR 10754).
Prior to the issuance of amendments
to section 333.101(b) in 1985, this
interpretive rule stated that insured
nonmember banks could act as trustee
or custodian of Individual Retirement
Accounts established pursuant to the
Employee Retirement Income Security
Act of 1974 (ERISA) 1 and SelfEmployed Retirement Plans established
pursuant to the Self-Employed
Individuals Retirement Act of 1962 2
(traditional IRAs and Keogh Plan
accounts). However, a bank taking
advantage of section 333.101(b) was
permitted to invest the funds held in
these accounts only in its own time or
savings deposits. (41 FR 2375). The
1985 amendments revised section
333.101(b) to state that FDIC-regulated
banks not exercising trust powers could
offer self-directed traditional IRAs and
Keogh Plan accounts where the
customer could direct the bank to invest
the funds from such plans in assets
other than the bank’s own deposits ‘‘at
the direction of the customer provided
the bank does not exercise any
investment discretion or provided [sic]
any investment advice with respect to
such account assets.’’ (50 FR 10754).
Since 1985, Congress has introduced
new accounts with tax-incentive
features analogous to traditional IRAs
and Keogh Plan accounts. These other
accounts include: Coverdell Education
Savings Accounts 3 and Roth Individual
Retirement Accounts,4 both established
pursuant to the Taxpayer Relief Act of
1997, and Health Savings Accounts,5
established pursuant to the Medicare
Prescription Drug Improvement, and
Modernization Act of 2003.
Accordingly, the FDIC is amending
section 333.101(b) to reflect the creation
of these new accounts and to make clear
in the text of section 333.101(b) that
‘‘other similar accounts’’ with taxincentive features may be offered by
banks that lack authority to exercise
trust powers.6 The primary purpose of
1 See
26 U.S.C. 408.
26 U.S.C. 401.
3 See 26 U.S.C. 530.
4 See 26 U.S.C. 408A.
5 See 26 U.S.C. 223.
6 Currently, national banks without fiduciary
powers may act as custodian, but not as trustee, of
retirement accounts. See 12 CFR 9.3. Institutions
regulated by the Office of Thrift Supervision (OTS)
may act as trustee or custodian of traditional IRAs
2 See
PO 00000
Frm 00017
Fmt 4700
Sfmt 4700
60421
these amendments is to formally
recognize the existence of these new
accounts, which did not exist when the
FDIC last amended section 333.101(b) in
1985.
The revision to section 333.101(b)
retains the requirements that the bank’s
duties be custodial or ministerial, and
that the acceptance of such accounts
without trust powers be consistent with
the applicable state law.7
The revision also makes some minor
technical amendments to the regulatory
text to correct typographical errors in
section 333.101(b).
II. Request for Comments
These amendments to part 333 will be
effective upon publication. However,
the FDIC is interested in receiving any
comments that may improve the
implementation of the rule. The FDIC
therefore requests comments on all
aspects of this interpretive rule. The
FDIC is especially interested in learning
whether there are other accounts that it
would be appropriate to include
expressly within the scope of the rule,
and conversely, whether it would be
appropriate to exclude any facially
similar accounts from the scope of the
rule. The FDIC will accept comments for
90 days from the date of publication.
III. Regulatory Analysis
a. Administrative Procedure Act
Public Comment Waiver and Effective
Date. Pursuant to the Administrative
Procedure Act, 5 U.S.C. 553(b) (‘‘APA’’),
the FDIC is issuing this interpretation
without prior notice and comment.
Section 553(b) of Title 5, U.S. Code,
does not apply to interpretive rules. The
amendments to section 333.101(b) of the
FDIC’s regulations relate solely to an
interpretive rule, and the Board of
Directors of the FDIC has found that,
because the primary purpose of the
amendments is to formally recognize the
creation of new accounts, notice and
comment would be unnecessary.
Moreover, pursuant to the APA, 5 U.S.C.
553(d), interpretive rules do not require
thirty days prior notice before they may
become effective; therefore, because
section 333.101(b) is an interpretive
and Keogh Plan accounts without the prior
approval of the OTS. 12 CFR 550.580.
7 These amendments to section 333.101(b) will
not impact the FDIC’s supervision of the trust and
custodial activities of insured nonmember banks,
including the trust and fiduciary services such
banks provide to accounts with tax-incentive
features. The FDIC will continue to supervise the
trust and fiduciary activities of insured nonmember
banks through regular examinations to ensure that
banks comply with their fiduciary obligations to
customers in accordance with applicable State and
Federal law.
E:\FR\FM\18OCR1.SGM
18OCR1
60422
Federal Register / Vol. 70, No. 200 / Tuesday, October 18, 2005 / Rules and Regulations
rule, the amendments to it may have
immediate effect.
b. Paperwork Reduction Act
The amendment to section 333.101(b)
will not entail any new collections of
information. Therefore, the Paperwork
Reduction Act is not applicable.
c. Regulatory Flexibility Act
A regulatory flexibility analysis is
required only when an agency must
publish a notice of proposed rulemaking
(5 U.S.C. 603, 604). Because the FDIC is
revising an interpretive rule without
notice and comment, no regulatory
flexibility analysis is required.
d. Small Business Regulatory
Enforcement Fairness Act
The Small Business Regulatory
Enforcement Fairness Act (5 U.S.C. 801
et seq.) (SBREFA) provides generally for
agencies to report rules to Congress and
for Congress to review these rules.
Unless covered by an exception in
SBREFA (5 U.S.C. 804(3)), the reporting
requirement is triggered in instances
where the FDIC issues a rule as defined
by the APA. Because the FDIC is issuing
an interpretive rule, which is not
covered by one of the exceptions in
SBREFA, the FDIC will file the reports
required by SBREFA.
List of Subjects in 12 CFR Part 333
Bank, Banking, State nonmember
banks, Trusts and trustees.
I For the reasons set forth in this
preamble, the Board of Directors of the
Federal Deposit Insurance Corporation
hereby amends part 333 to Title 12 of
the Code of Federal Regulations as
follows:
1. The authority citation for part 333
continues to read as follows:
I
2. Section 333.101 is amended by
revising paragraph (b) to read as follows:
Prior consent not required.
*
*
*
*
(b) An insured State nonmember
bank, not exercising trust powers, may
act as trustee or custodian of Individual
Retirement Accounts established
pursuant to the Employee Retirement
Income Security Act of 1974 (26 U.S.C.
408), Self-Employed Retirement Plans
established pursuant to the SelfEmployed Individuals Retirement Act of
1962 (26 U.S.C. 401), Roth Individual
Retirement Accounts and Coverdell
16:44 Oct 17, 2005
Jkt 208001
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 25
[Docket No. NM310; Special Conditions No.
25–306–SC]
Federal Aviation
Administration (FAA), DOT.
ACTION: Final special conditions.
I
VerDate Aug<31>2005
BILLING CODE 6714–01–P
AGENCY:
Authority: 12 U.S.C. 1816, 1818, 1819
(‘‘Seventh’’, ‘‘Eighth’’ and ‘‘Tenth’’), 1828,
1828(m), 1831p–1(c).
*
Dated at Washington, DC, this 6th day of
October, 2005.
By order of the Board of Directors.
Robert E. Feldman,
Executive Secretary, Federal Deposit
Insurance Corporation.
[FR Doc. 05–20768 Filed 10–17–05; 8:45 am]
Special Conditions: Gulfstream
Aerospace Limited Partnership (GALP)
Model G150 Airplane; Windshield
Coating in Lieu of Wipers
PART 333—EXTENSION OF
CORPORATE POWERS
§ 333.101
Education Savings Accounts established
pursuant to the Taxpayer Relief Act of
1997 (26 U.S.C. 408A and 530
respectively), Health Savings Accounts
established pursuant to the Medicare
Prescription Drug Improvement, and
Modernization Act of 2003 (26 U.S.C.
223), and other similar accounts without
the prior written consent of the
Corporation provided:
(1) The bank’s duties as trustee or
custodian are essentially custodial or
ministerial in nature,
(2) The bank is required to invest the
funds from such plans only
(i) In its own time or savings deposits,
or
(ii) In any other assets at the direction
of the customer, provided the bank does
not exercise any investment discretion
or provide any investment advice with
respect to such account assets, and
(3) The bank’s acceptance of such
accounts without trust powers is not
contrary to applicable State law.
SUMMARY: These special conditions are
issued for the Gulfstream Aerospace
Limited Partnership (GALP) Model
G150 airplane. This airplane will have
a novel or unusual design feature
associated with use of a hydrophobic
coating, rather than windshield wipers,
as the means to maintain a clear portion
of the windshield during precipitation
conditions, as required by the
airworthiness standards for transport
category airplanes. The applicable
airworthiness regulations do not contain
adequate or appropriate safety standards
for this design feature. These special
conditions contain the additional safety
PO 00000
Frm 00018
Fmt 4700
Sfmt 4700
standards that the Administrator
considers necessary to establish a level
of safety equivalent to that established
by the existing airworthiness standards.
EFFECTIVE DATE: November 17, 2005.
FOR FURTHER INFORMATION CONTACT: John
McConnell, Airplane and Flight Crew
Interface Branch, ANM–111, Transport
Airplane Directorate, Aircraft
Certification Service, 1601 Lind Avenue
SW., Renton, Washington, 98055–4056;
telephone (425) 227–1365; facsimile
(425) 227–1320, e-mail
john.mcconnell@faa.gov.
SUPPLEMENTARY INFORMATION:
Background
On September 22, 2002, GALP
applied for an amendment to Type
Certificate Number A16NM to include
the new GALP Model G150 airplane.
The GALP Model G150, which is a
derivative of the GALP Model G100
currently approved under Type
Certificate Number A16NM, is intended
to be a nine passenger executive
airplane with a maximum takeoff weight
of 26,000 pounds and a maximum
operating altitude of 45,000 feet.
The GALP Model G150 flightdeck
design incorporates a hydrophobic
coating to provide adequate pilot
compartment view in the presence of
precipitation. Sole reliance on such a
coating, without windshield wipers,
constitutes a novel or unusual design
feature for which the applicable
airworthiness regulations do not contain
adequate or appropriate safety
standards. Therefore, special conditions
are required that provide the level of
safety equivalent to that established by
the regulations.
Type Certification Basis
Under the provisions of 14 CFR
21.101, GALP must show that the Model
G150 meets the applicable provisions of
the regulations incorporated by
reference in Type Certificate Number
A16NM or the applicable regulations in
effect on the date of application for the
change to the type certificate. The
regulations incorporated by reference in
the type certificate are commonly
referred to as the ‘‘original type
certification basis.’’ The regulations
incorporated by reference in Type
Certificate Number A16NM are 14 CFR
part 25, effective February 1, 1965,
including Amendment 25–1 through
Amendment 25–107.
In addition, if the regulations
incorporated by reference do not
provide adequate standards with respect
to the change, the applicant must
comply with certain regulations in effect
on the date of application for the
E:\FR\FM\18OCR1.SGM
18OCR1
Agencies
[Federal Register Volume 70, Number 200 (Tuesday, October 18, 2005)]
[Rules and Regulations]
[Pages 60420-60422]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-20768]
=======================================================================
-----------------------------------------------------------------------
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 333
RIN 3064-AC94
Extension of Corporate Powers
AGENCY: Federal Deposit Insurance Corporation.
ACTION: Interpretive rule; request for comments.
-----------------------------------------------------------------------
SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is amending
an interpretative rule (12 CFR 333.101(b)) which states that insured
State nonmember banks not exercising trust powers may offer self-
directed traditional Individual Retirement and Keogh Plan accounts
without the prior written consent of the FDIC. As amended, the
interpretive ruling is expanded to expressly cover Coverdell Education
Savings Accounts, Roth
[[Page 60421]]
Individual Retirement Accounts, Health Savings Accounts, and other
similar accounts.
DATES: These amendments are effective October 18, 2005. Submit comments
on or before January 17, 2006.
ADDRESSES: Interested parties are invited to submit written comments to
the FDIC by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Agency Web Site: https://www.fdic.gov/regulations/laws/
federal/propose.html. Follow the instructions for submitting comments
on the FDIC Web site.
E-mail: comments@fdic.gov. Include ``Part 333--Extension
of Corporate Powers'' in the subject line of the message.
Mail: Robert E. Feldman, Executive Secretary, Attention:
Comments/Legal ESS, Federal Deposit Insurance Corporation, 550 17th
Street, NW., Washington, DC 20429.
Hand Delivery/Courier: Comments may be hand-delivered to
the guard station located at the rear of the FDIC's 550 17th Street
building (accessible from F Street) on business days between 7 a.m. and
5 p.m.
Instructions: All submissions received must include the agency name
and use the title ``Part 333--Extension of Corporate Powers.'' All
comments will be posted without change to https://www.fdic.gov/
regulations/laws/federal/propose.html, including any personal
information provided. Comments may be inspected and photocopied in the
FDIC Public Information Center, Room 100, 801 17th Street, NW.,
Washington, DC, between 9 a.m. and 4:30 p.m. on business days.
FOR FURTHER INFORMATION CONTACT: Anthony J. DiMilo, Examination
Specialist, Division of Supervision and Consumer Protection, (202) 898-
7496, or Benjamin W. McDonough, Attorney, Legal Division, (202) 898-
7411, Federal Deposit Insurance Corporation, 550 17th St., NW.,
Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
I. Background
Section 333.2 of the FDIC's regulations (12 CFR 333.2) prohibits an
insured nonmember bank from changing the general character of its
business without the prior written consent of the FDIC. In general,
exercising trust powers constitutes a change in the general character
of the business of an insured nonmember bank that requires the prior
written consent of the FDIC. FDIC interpretive rule at 12 CFR
333.101(b) (section 333.101(b)) makes clear, however, that an insured
nonmember bank that does not have authority to exercise trust powers
may act as trustee or custodian of specific retirement accounts so long
as the bank does not exercise investment discretion or provide any
investment advice with respect to the accounts. (50 FR 10754).
Prior to the issuance of amendments to section 333.101(b) in 1985,
this interpretive rule stated that insured nonmember banks could act as
trustee or custodian of Individual Retirement Accounts established
pursuant to the Employee Retirement Income Security Act of 1974 (ERISA)
\1\ and Self-Employed Retirement Plans established pursuant to the
Self-Employed Individuals Retirement Act of 1962 \2\ (traditional IRAs
and Keogh Plan accounts). However, a bank taking advantage of section
333.101(b) was permitted to invest the funds held in these accounts
only in its own time or savings deposits. (41 FR 2375). The 1985
amendments revised section 333.101(b) to state that FDIC-regulated
banks not exercising trust powers could offer self-directed traditional
IRAs and Keogh Plan accounts where the customer could direct the bank
to invest the funds from such plans in assets other than the bank's own
deposits ``at the direction of the customer provided the bank does not
exercise any investment discretion or provided [sic] any investment
advice with respect to such account assets.'' (50 FR 10754).
---------------------------------------------------------------------------
\1\ See 26 U.S.C. 408.
\2\ See 26 U.S.C. 401.
---------------------------------------------------------------------------
Since 1985, Congress has introduced new accounts with tax-incentive
features analogous to traditional IRAs and Keogh Plan accounts. These
other accounts include: Coverdell Education Savings Accounts \3\ and
Roth Individual Retirement Accounts,\4\ both established pursuant to
the Taxpayer Relief Act of 1997, and Health Savings Accounts,\5\
established pursuant to the Medicare Prescription Drug Improvement, and
Modernization Act of 2003. Accordingly, the FDIC is amending section
333.101(b) to reflect the creation of these new accounts and to make
clear in the text of section 333.101(b) that ``other similar accounts''
with tax-incentive features may be offered by banks that lack authority
to exercise trust powers.\6\ The primary purpose of these amendments is
to formally recognize the existence of these new accounts, which did
not exist when the FDIC last amended section 333.101(b) in 1985.
---------------------------------------------------------------------------
\3\ See 26 U.S.C. 530.
\4\ See 26 U.S.C. 408A.
\5\ See 26 U.S.C. 223.
\6\ Currently, national banks without fiduciary powers may act
as custodian, but not as trustee, of retirement accounts. See 12 CFR
9.3. Institutions regulated by the Office of Thrift Supervision
(OTS) may act as trustee or custodian of traditional IRAs and Keogh
Plan accounts without the prior approval of the OTS. 12 CFR 550.580.
---------------------------------------------------------------------------
The revision to section 333.101(b) retains the requirements that
the bank's duties be custodial or ministerial, and that the acceptance
of such accounts without trust powers be consistent with the applicable
state law.\7\
---------------------------------------------------------------------------
\7\ These amendments to section 333.101(b) will not impact the
FDIC's supervision of the trust and custodial activities of insured
nonmember banks, including the trust and fiduciary services such
banks provide to accounts with tax-incentive features. The FDIC will
continue to supervise the trust and fiduciary activities of insured
nonmember banks through regular examinations to ensure that banks
comply with their fiduciary obligations to customers in accordance
with applicable State and Federal law.
---------------------------------------------------------------------------
The revision also makes some minor technical amendments to the
regulatory text to correct typographical errors in section 333.101(b).
II. Request for Comments
These amendments to part 333 will be effective upon publication.
However, the FDIC is interested in receiving any comments that may
improve the implementation of the rule. The FDIC therefore requests
comments on all aspects of this interpretive rule. The FDIC is
especially interested in learning whether there are other accounts that
it would be appropriate to include expressly within the scope of the
rule, and conversely, whether it would be appropriate to exclude any
facially similar accounts from the scope of the rule. The FDIC will
accept comments for 90 days from the date of publication.
III. Regulatory Analysis
a. Administrative Procedure Act
Public Comment Waiver and Effective Date. Pursuant to the
Administrative Procedure Act, 5 U.S.C. 553(b) (``APA''), the FDIC is
issuing this interpretation without prior notice and comment. Section
553(b) of Title 5, U.S. Code, does not apply to interpretive rules. The
amendments to section 333.101(b) of the FDIC's regulations relate
solely to an interpretive rule, and the Board of Directors of the FDIC
has found that, because the primary purpose of the amendments is to
formally recognize the creation of new accounts, notice and comment
would be unnecessary. Moreover, pursuant to the APA, 5 U.S.C. 553(d),
interpretive rules do not require thirty days prior notice before they
may become effective; therefore, because section 333.101(b) is an
interpretive
[[Page 60422]]
rule, the amendments to it may have immediate effect.
b. Paperwork Reduction Act
The amendment to section 333.101(b) will not entail any new
collections of information. Therefore, the Paperwork Reduction Act is
not applicable.
c. Regulatory Flexibility Act
A regulatory flexibility analysis is required only when an agency
must publish a notice of proposed rulemaking (5 U.S.C. 603, 604).
Because the FDIC is revising an interpretive rule without notice and
comment, no regulatory flexibility analysis is required.
d. Small Business Regulatory Enforcement Fairness Act
The Small Business Regulatory Enforcement Fairness Act (5 U.S.C.
801 et seq.) (SBREFA) provides generally for agencies to report rules
to Congress and for Congress to review these rules. Unless covered by
an exception in SBREFA (5 U.S.C. 804(3)), the reporting requirement is
triggered in instances where the FDIC issues a rule as defined by the
APA. Because the FDIC is issuing an interpretive rule, which is not
covered by one of the exceptions in SBREFA, the FDIC will file the
reports required by SBREFA.
List of Subjects in 12 CFR Part 333
Bank, Banking, State nonmember banks, Trusts and trustees.
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For the reasons set forth in this preamble, the Board of Directors of
the Federal Deposit Insurance Corporation hereby amends part 333 to
Title 12 of the Code of Federal Regulations as follows:
PART 333--EXTENSION OF CORPORATE POWERS
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1. 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).
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2. Section 333.101 is amended by revising paragraph (b) to read as
follows:
Sec. 333.101 Prior consent not required.
* * * * *
(b) An insured State nonmember bank, not exercising trust powers,
may act as trustee or custodian of Individual Retirement Accounts
established pursuant to the Employee Retirement Income Security Act of
1974 (26 U.S.C. 408), Self-Employed Retirement Plans established
pursuant to the Self-Employed Individuals Retirement Act of 1962 (26
U.S.C. 401), Roth Individual Retirement Accounts and Coverdell
Education Savings Accounts established pursuant to the Taxpayer Relief
Act of 1997 (26 U.S.C. 408A and 530 respectively), Health Savings
Accounts established pursuant to the Medicare Prescription Drug
Improvement, and Modernization Act of 2003 (26 U.S.C. 223), and other
similar accounts without the prior written consent of the Corporation
provided:
(1) The bank's duties as trustee or custodian are essentially
custodial or ministerial in nature,
(2) The bank is required to invest the funds from such plans only
(i) In its own time or savings deposits, or
(ii) In any other assets at the direction of the customer, provided
the bank does not exercise any investment discretion or provide any
investment advice with respect to such account assets, and
(3) The bank's acceptance of such accounts without trust powers is
not contrary to applicable State law.
Dated at Washington, DC, this 6th day of October, 2005.
By order of the Board of Directors.
Robert E. Feldman,
Executive Secretary, Federal Deposit Insurance Corporation.
[FR Doc. 05-20768 Filed 10-17-05; 8:45 am]
BILLING CODE 6714-01-P