Prohibited Service at Savings and Loan Holding Companies Extension of Expiration Date of Temporary Exemption, 10985-10986 [08-887]

Download as PDF Federal Register / Vol. 73, No. 41 / Friday, February 29, 2008 / Rules and Regulations addressed to: U.S. Department of Energy, Attention: Office of Electricity and Energy Assurance, OE–30, Forrestal Building, 1000 Independence Avenue, SW., Washington, DC 20585. (DPAS) regulation (15 CFR part 700) in obtaining materials (including equipment), services, or facilities needed to fill this contract. [End of Clause] Chapter 9 of Title 48 [FR Doc. E8–3773 Filed 2–28–08; 8:45 am] 10. The authority citation for parts 911 and 952 is revised to read as follows: BILLING CODE 6450–01–P I Authority: 42 U.S.C. 2201; 2282a; 2282b; 2282c; 42 U.S.C. 7101 et seq.; 41 U.S.C. 418b; 50 U.S.C. 2401 et seq. Office of Thrift Supervision 12 CFR Part 585 PART 911—DESCRIBING AGENCY NEEDS 911.600 DEPARTMENT OF THE TREASURY [OTS–2007–0008] RIN 1550–AC14 [Amended] 11. Section 911.600 is amended by removing the words ‘‘and those energy programs which maximize domestic energy supplies’’. Prohibited Service at Savings and Loan Holding Companies Extension of Expiration Date of Temporary Exemption 911.602 AGENCY: I [Amended] Office of Thrift Supervision (OTS) Treasury. ACTION: Final rule. 12. Section 911.602 is amended by removing paragraph (d). I 911.604 [Amended] 13. Section 911.604 is amended by removing paragraphs (d) and (e). I PART 952—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 14. Section 952.211–70 is revised to read as follows: I 952.211–70 Priorities and allocations for energy programs (solicitations). As prescribed in 911.604(a), insert the following provision in solicitations that will result in the award of a contract in support of DOE atomic energy programs. Priorities and Allocations (Atomic Energy) (APR 2008) Contracts or purchase orders awarded as a result of this solicitation shall be assigned a [ ] DO-Rating; [ ] DX Rating; and certified for national defense use in accordance with the Defense Priorities and Allocations System (DPAS) regulation (15 CFR part 700) (Contracting officer check appropriate box.) [End of Clause] 15. Section 952.211–71 is revised to read as follows: I rfrederick on PROD1PC67 with RULES 952.211–71 Priorities and allocations for energy programs (contracts). As prescribed in 911.604(b), insert the following clause in contracts and purchase orders that are placed in support of authorized DOE atomic energy programs pursuant to the Atomic Energy Act of 1954, as amended. Priorities and Allocations (Atomic Energy) (APR 2008) The Contractor shall follow the provisions of Defense Priorities and Allocations System VerDate Aug<31>2005 15:40 Feb 28, 2008 Jkt 214001 SUMMARY: OTS is revising its rules implementing section 19(e) of the Federal Deposit Insurance Act (FDIA), which prohibits any person who has been convicted of any criminal offense involving dishonesty, breach of trust, or money laundering (or who has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such an offense) from holding certain positions with respect to a savings and loan holding company (SLHC). Specifically, OTS is extending the expiration date of a temporary exemption granted to persons who held positions with respect to a SLHC as of the date of the enactment of section 19(e). The revised expiration date for the temporary exemption is June 1, 2008. Effective Date: The final rule is effective on February 29, 2008. FOR FURTHER INFORMATION CONTACT: Donna Deale, Director, Holding Companies and Affiliates, Supervision Policy, (202) 906–7488, or Karen Osterloh, Special Counsel, Regulations and Legislation, (202) 906–6639, Office of Thrift Supervision, 1700 G Street, NW., Washington, DC 20552. SUPPLEMENTARY INFORMATION: On May 8, 2007, OTS published an interim final rule adding 12 CFR part 585. This new part implemented section 19(e) of the FDIA, which prohibits any person who has been convicted of any criminal offense involving dishonesty, breach of trust, or money laundering (or who has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such an offense) from DATES: PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 10985 holding certain positions with a SLHC. Section 19(e) also authorizes the Director of OTS to provide exemptions from the prohibitions, by regulation or order, if the exemption is consistent with the purposes of the statute. The interim final rule described the actions that are prohibited under the statute and prescribed procedures for applying for an OTS order granting a case-by-case exemption from the prohibition. The rule also provided regulatory exemptions to the prohibitions, including a temporary exemption for persons who held positions with respect to a SLHC on October 13, 2006, the date of enactment of section 19(e). This temporary exemption is set to expire on March 1, 2008, unless a case-by-case exemption is filed prior to that expiration date.1 OTS is extending the expiration date of the temporary exemption to June 1, 2008. This extension will avoid needless disruptions of SLHC operations while OTS reviews the public comments and develops a final rule addressing these comments. OTS has concluded that this extension of the exemption of the exemption is consistent with the purposes of section 19(3) of the FDIA. Regulatory Findings Notice and Comment and Effective Date For the reasons set out in the interim final rule,2 OTS has concluded that: notice and comment on this extension are unnecessary and contrary to the public interest under section 552(b)(B) of the Administrative Procedure Act; there is good cause for making the extension effective immediately under section 553(d) of the APA; and the delayed effective date requirements of section 302 of the Riegle Community Development and Regulatory Improvement Act of 1994 (CDRIA) do not apply. Regulatory Flexibility Act For the reasons stated in the interim final rule,3 OTS has concluded that this extension does not require an initial regulatory flexibility analysis under the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.), and that this extension should not have a significant impact on a substantial number of small entities, as defined in the RFA. 1 This temporary exemption originally was scheduled to expire on September 5, 2007. OTS extended the expiration date to March 1, 2008. 72 FR 50644 (Sept. 4, 2008). 2 72 FR at 25953. 3 72 FR at 25953–54. E:\FR\FM\29FER1.SGM 29FER1 10986 Federal Register / Vol. 73, No. 41 / Friday, February 29, 2008 / Rules and Regulations Paperwork Reduction Act OTS has determined that this extension does not involve a change to collections of information previously approved under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) Unfunded Mandates Act of 1995 For the reasons stated in the interim final rule,4 OTS has determined that this extension will not result in expenditures by state, local, and tribal governments, in the aggregate, or by the private sector, of more than $100 million of any one year. Executive Order 12866 OTS has determined that this extension is not a significant regulatory action under Executive Order 12866. Plain Language Section 722 of the Gramm-LeachBliley Act (12 U.S.C. 4308) requires the Agencies to use ‘‘plain language’’ in all final rules published after January 1, 2000. OTS believes that the final rule containing the extension is presented in a clear and straightforward manner. List of Subjects in 12 CFR Part 585 Administrative practice and procedure, Holding companies, Reporting and recordkeeping requirements, Savings associations. Authority and Issuance For the reasons in the preamble, OTS is amending part 585 of chapter V of title 12 of the Code of Federal Regulations as set forth below: I PART 585—PROHIBITED SERVICE AT SAVINGS AND LOAN HOLDING COMPANIES 1. The authority citation for 12 CFR part 585 continues to read as follows: I Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, and 1829(e). 2. Amend § 585.100(b)(2) introductory text to read as follows: I § 585.100 Who is exempt from the prohibition under this part? rfrederick on PROD1PC67 with RULES * * * * * (b) Temporary exemption. * * * (2) This exemption expires on June 1, 2008, unless the savings and loan holding company or the person files an application seeking a case-by-case exemption for the person under § 585.110 by that date. If the savings and loan holding company or the person files such an application, the temporary exemption expires on: * * * * * 4 72 FR 25954. VerDate Aug<31>2005 15:40 Feb 28, 2008 Jkt 214001 Dated: February 25, 2008. By the Office of Thrift Supervision. John M. Reich, Director. [FR Doc. 08–887 Filed 2–28–08; 8:45 am] BILLING CODE 6720–01–M DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Chapter I Office of the Secretary 14 CFR Chapter II [Docket DOT–OST–2008–0063] Provision of Entire Aircraft With Crew to a U.S. Certificated Air Carrier by a Foreign Air Carrier Department of Transportation, Office of the Secretary; Department of Transportation, Federal Aviation Administration. ACTION: Regulatory guidance. AGENCY: SUMMARY: This Notice sets forth the conditions under which a foreign air carrier may make an arrangement with a U.S. air carrier for a flight or series of flights, to be conducted with the foreign air carrier’s aircraft and crew, for that U.S. certificated air carrier’s-authorized services in foreign air transportation. This Notice also describes the regulatory steps involved for seeking Department approval for such an operation. FOR FURTHER INFORMATION CONTACT: Richard Clarke, Federal Aviation Administration, Air Carrier Operations Branch, AFS–220, (202) 493–5581, or George Wellington, Department of Transportation, Office of International Aviation, X–40, (202) 366–2391. SUPPLEMENTARY INFORMATION: Discussion: The Office of the Secretary of Transportation (OST) and the Department’s Federal Aviation Administration (FAA) have identified the circumstances under which a foreign air carrier may provide a U.S. certificated air carrier with an entire aircraft with crew without contravening the FAA’s regulations that generally prohibit a foreign air carrier from wet leasing aircraft (i.e., providing legal possession of a specific aircraft (in its entirety) and at least one crewmember) to a U.S. certificated air carrier. Such transactions may occur, consistent with FAA and OST regulations,1 where it is 1 See 14 CFR 121.153(c), § 135.25(d), § 119.53(b), and § 212.4(b)(1) and § 212.9(b)(2). The cited sections of the FAA’s regulations (parts 121, 135 and 119) generally prohibit a foreign air carrier from PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 clear that (i) operational control of the flight or flights involved would rest solely with the foreign air carrier and not with the U.S. certificated air carrier; (ii) legal and actual possession of the aircraft at all times would remain with the foreign air carrier; and (iii) OST determines, in conjunction with FAA, that such operations would otherwise be in the public interest, as more fully described below. Under those circumstances, the FAA has determined 2 that such transactions are not leases subject to the foreign wet lease prohibition in § 119.53(b), regardless of whether the parties to the transaction characterize the arrangement as a wet lease. To conduct an operation in this manner, the foreign air carrier involved would need to apply to the Department for a statement of authorization under 14 CFR part 212 of the Department’s regulations. Section 212.9 requires prior Department approval for operations involving the provision of aircraft and crew by a foreign air carrier to another air carrier where the operations involved are in a fifth freedom market for the foreign air carrier, and for any such operations of 60 days or longer duration. Section 212.9(d) also provides that the Department may, at its discretion and upon at least 30 days’ notice, require a statement of authorization for these kinds of operations in other cases (e.g., where they are for less than 60 days’ duration). Given our need to make the operational control and public interest determinations described above, we will, in accordance with the provisions of § 212.9(d), and effective 30 days from the date of this Notice, require that foreign air carriers desiring to conduct the operations described in this Notice obtain a statement of authorization before conducting any such services.3 wet leasing aircraft to a U.S. certificated air carrier. Part 212 of the Department’s Economic Regulations provides for the wet leasing of aircraft without regard to the identity of the wet lessor, and do not explicitly prohibit wet lease operations by a foreign air carrier on behalf of a U.S. carrier. 2 On May 18, 2004, the Chief Counsel of the FAA issued an opinion that certain arrangements characterized as wet leases by the parties to the transaction were not true leases, because legal and actual possession of the subject aircraft never transferred from one party to the other. In addition, the FAA concluded that, where a foreign air carrier (identified as the lessor under such arrangements) retained operational control of the aircraft, the transaction was not subject to the wet lease prohibition of § 119.53(b). We have placed a copy of the FAA opinion in the Docket referenced above, and have also attached a copy to the service copy of this Notice. 3 We have in other instances required foreign air carriers to seek statements of authorization under § 212.9(d) for various operations under that rule. See, for example, Orders 98–4–2 and 91–5–25. E:\FR\FM\29FER1.SGM 29FER1

Agencies

[Federal Register Volume 73, Number 41 (Friday, February 29, 2008)]
[Rules and Regulations]
[Pages 10985-10986]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 08-887]


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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Part 585

[OTS-2007-0008]
RIN 1550-AC14


Prohibited Service at Savings and Loan Holding Companies 
Extension of Expiration Date of Temporary Exemption

AGENCY: Office of Thrift Supervision (OTS) Treasury.

ACTION: Final rule.

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

SUMMARY: OTS is revising its rules implementing section 19(e) of the 
Federal Deposit Insurance Act (FDIA), which prohibits any person who 
has been convicted of any criminal offense involving dishonesty, breach 
of trust, or money laundering (or who has agreed to enter into a 
pretrial diversion or similar program in connection with a prosecution 
for such an offense) from holding certain positions with respect to a 
savings and loan holding company (SLHC). Specifically, OTS is extending 
the expiration date of a temporary exemption granted to persons who 
held positions with respect to a SLHC as of the date of the enactment 
of section 19(e). The revised expiration date for the temporary 
exemption is June 1, 2008.

DATES: Effective Date: The final rule is effective on February 29, 
2008.

FOR FURTHER INFORMATION CONTACT: Donna Deale, Director, Holding 
Companies and Affiliates, Supervision Policy, (202) 906-7488, or Karen 
Osterloh, Special Counsel, Regulations and Legislation, (202) 906-6639, 
Office of Thrift Supervision, 1700 G Street, NW., Washington, DC 20552.

SUPPLEMENTARY INFORMATION: On May 8, 2007, OTS published an interim 
final rule adding 12 CFR part 585. This new part implemented section 
19(e) of the FDIA, which prohibits any person who has been convicted of 
any criminal offense involving dishonesty, breach of trust, or money 
laundering (or who has agreed to enter into a pretrial diversion or 
similar program in connection with a prosecution for such an offense) 
from holding certain positions with a SLHC. Section 19(e) also 
authorizes the Director of OTS to provide exemptions from the 
prohibitions, by regulation or order, if the exemption is consistent 
with the purposes of the statute.
    The interim final rule described the actions that are prohibited 
under the statute and prescribed procedures for applying for an OTS 
order granting a case-by-case exemption from the prohibition. The rule 
also provided regulatory exemptions to the prohibitions, including a 
temporary exemption for persons who held positions with respect to a 
SLHC on October 13, 2006, the date of enactment of section 19(e). This 
temporary exemption is set to expire on March 1, 2008, unless a case-
by-case exemption is filed prior to that expiration date.\1\
---------------------------------------------------------------------------

    \1\ This temporary exemption originally was scheduled to expire 
on September 5, 2007. OTS extended the expiration date to March 1, 
2008. 72 FR 50644 (Sept. 4, 2008).
---------------------------------------------------------------------------

    OTS is extending the expiration date of the temporary exemption to 
June 1, 2008. This extension will avoid needless disruptions of SLHC 
operations while OTS reviews the public comments and develops a final 
rule addressing these comments. OTS has concluded that this extension 
of the exemption of the exemption is consistent with the purposes of 
section 19(3) of the FDIA.

Regulatory Findings

Notice and Comment and Effective Date

    For the reasons set out in the interim final rule,\2\ OTS has 
concluded that: notice and comment on this extension are unnecessary 
and contrary to the public interest under section 552(b)(B) of the 
Administrative Procedure Act; there is good cause for making the 
extension effective immediately under section 553(d) of the APA; and 
the delayed effective date requirements of section 302 of the Riegle 
Community Development and Regulatory Improvement Act of 1994 (CDRIA) do 
not apply.
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    \2\ 72 FR at 25953.
---------------------------------------------------------------------------

Regulatory Flexibility Act

    For the reasons stated in the interim final rule,\3\ OTS has 
concluded that this extension does not require an initial regulatory 
flexibility analysis under the Regulatory Flexibility Act (RFA) (5 
U.S.C. 601 et seq.), and that this extension should not have a 
significant impact on a substantial number of small entities, as 
defined in the RFA.
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    \3\ 72 FR at 25953-54.

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[[Page 10986]]

Paperwork Reduction Act

    OTS has determined that this extension does not involve a change to 
collections of information previously approved under the Paperwork 
Reduction Act (44 U.S.C. 3501 et seq.)

Unfunded Mandates Act of 1995

     For the reasons stated in the interim final rule,\4\ OTS has 
determined that this extension will not result in expenditures by 
state, local, and tribal governments, in the aggregate, or by the 
private sector, of more than $100 million of any one year.
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    \4\ 72 FR 25954.
---------------------------------------------------------------------------

Executive Order 12866

    OTS has determined that this extension is not a significant 
regulatory action under Executive Order 12866.

Plain Language

     Section 722 of the Gramm-Leach-Bliley Act (12 U.S.C. 4308) 
requires the Agencies to use ``plain language'' in all final rules 
published after January 1, 2000. OTS believes that the final rule 
containing the extension is presented in a clear and straightforward 
manner.

List of Subjects in 12 CFR Part 585

    Administrative practice and procedure, Holding companies, Reporting 
and recordkeeping requirements, Savings associations.

Authority and Issuance

0
For the reasons in the preamble, OTS is amending part 585 of chapter V 
of title 12 of the Code of Federal Regulations as set forth below:

PART 585--PROHIBITED SERVICE AT SAVINGS AND LOAN HOLDING COMPANIES

0
1. The authority citation for 12 CFR part 585 continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, and 
1829(e).


0
2. Amend Sec.  585.100(b)(2) introductory text to read as follows:


Sec.  585.100  Who is exempt from the prohibition under this part?

* * * * *
    (b) Temporary exemption. * * *
    (2) This exemption expires on June 1, 2008, unless the savings and 
loan holding company or the person files an application seeking a case-
by-case exemption for the person under Sec.  585.110 by that date. If 
the savings and loan holding company or the person files such an 
application, the temporary exemption expires on:
* * * * *

    Dated: February 25, 2008.
    By the Office of Thrift Supervision.
John M. Reich,
Director.
[FR Doc. 08-887 Filed 2-28-08; 8:45 am]
BILLING CODE 6720-01-M