Community and Economic Development Entities, Community Development Projects, and Other Public Welfare Investments, 46532-46539 [E8-18410]

Download as PDF 46532 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Rules and Regulations Revisions to Competitive Area New § 351.402(e) provides that when an agency finds that a competitive area defined under § 351.402(b) includes pay band positions and positions not covered by a pay band, at its discretion the agency may define a competitive area otherwise consistent with § 351.402 to include only pay band positions. Section 351.402(b) is also revised to include a reference to new § 351.402(e). Revisions to Competitive Level Section 351.403(a)(2) is renumbered as § 351.403(a)(2)(i) and revised to clarify that, except as provided in new § 351.403(a)(2)(ii) for pay band positions, competitive level determinations are based on each employee’s official position of record (including the official position description), not the employee’s personal qualifications. New § 351.403(a)(2)(ii) provides that, to establish a competitive level comprised of pay band positions, an agency may supplement an employee’s official position with other applicable records that document the employee’s actual duties and responsibilities. Note that § 351.403(a)(2)(ii) also applies to RIF competition in a competitive area that includes pay band and other positions. Regulatory Flexibility Act I certify that this regulation will not have a significant economic impact on a substantial number of small entities because it affects only certain Federal employees. Executive Order 12866, Regulatory Review This rule has been reviewed by the Office of Management and Budget in accordance with Executive Order 12866. List of Subjects in 5 CFR Part 351 Administrative practice and procedure, Government employees. U.S. Office of Personnel Management. Linda M. Springer, Director. § 351.402 Competitive area. * * * * (b) A competitive area must be defined solely in terms of the agency’s organizational unit(s) and geographical location and, except as provided in paragraph (e) of this section, it must include all employees within the competitive area so defined. A competitive area may consist of all or part of an agency. The minimum competitive area is a subdivision of the agency under separate administration within the local commuting area. * * * * * (e) When an agency finds that a competitive area defined under paragraph (b) of this section includes pay band positions and positions not covered by a pay band, the agency may, at its discretion, define a separate (and additional) competitive area, otherwise consistent with paragraph (b) of this section, to include only pay band positions. The original competitive area would then include only the remaining positions (i.e., those positions not covered by a pay band). 3. In § 351.403, paragraph (a)(2) is revised to read as follows: I § 351.403 Competitive level. (a) * * * (2)(i) Except as provided in paragraph (a)(2)(ii) of this section for pay band positions, competitive level determinations are based on each employee’s official position of record (including the official position description), not the employee’s personal qualifications. (ii) To establish a competitive level comprised of pay band positions, an agency may supplement an employee’s official position of record with other applicable records that document the employee’s actual duties and responsibilities. * * * * * [FR Doc. E8–18447 Filed 8–8–08; 8:45 am] Accordingly, OPM is amending part 351 of title 5, Code of Federal Regulations, as follows: I BILLING CODE 6325–39–P PART 351—REDUCTION IN FORCE 1. The authority citation for part 351 continues to read as follows: jlentini on PROD1PC65 with RULES I Authority: 5 U.S.C. 1302, 3502, 3503; sec. 351.801 also issued under E.O. 12828, 58 FR 2965. 2. In § 351.402, paragraph (b) is revised, and paragraph (e) is added, to read as follows: I VerDate Aug<31>2005 15:34 Aug 08, 2008 Jkt 214001 DEPARTMENT OF THE TREASURY * PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 Office of the Comptroller of the Currency 12 CFR Part 24 [Docket ID OCC–2008–0010] RIN 1557–AD12 Community and Economic Development Entities, Community Development Projects, and Other Public Welfare Investments Office of the Comptroller of the Currency, Treasury. ACTION: Interim final rule with request for comment. AGENCY: SUMMARY: On July 30, 2008, the President signed into law the Housing and Economic Recovery Act of 2008 (HERA). Section 2503 of the HERA revises the community development investment authority in 12 U.S.C. 24(Eleventh) to permit a national bank to make a broader range of investments designed primarily to promote the public welfare. This interim final rule implements the changes made to section 24(Eleventh) by the HERA. DATES: Effective Date: This rule is effective on August 11, 2008. Comment Date: Comments must be received by September 10, 2008. ADDRESSES: Because paper mail in the Washington, DC area and at the OCC is subject to delay, commenters are encouraged to submit comments by email, if possible. Please use the title ‘‘Community Development Investments’’ to facilitate the organization and distribution of the comments. You may submit comments by any of the following methods: • Federal eRulemaking Portal— ‘‘Regulations.gov’’: Go to http:// www.regulations.gov, under the ‘‘More Search Options’’ tab click next to the ‘‘Advanced Docket Search’’ option where indicated, select ‘‘Comptroller of the Currency’’ from the agency dropdown menu, then click ‘‘Submit.’’ In the ‘‘Docket ID’’ column, select ‘‘OCC– 2008–0010’’ to submit or view public comments and to view supporting and related materials for this interim final rule. The ‘‘How to Use This Site’’ link on the Regulations.gov home page provides information on using Regulations.gov, including instructions for submitting or viewing public comments, viewing other supporting and related materials, and viewing the docket after the close of the comment period. • E-mail: regs.comments@occ. treas.gov. E:\FR\FM\11AUR1.SGM 11AUR1 jlentini on PROD1PC65 with RULES Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Rules and Regulations • Mail: Office of the Comptroller of the Currency, 250 E Street, SW., Mail Stop 1–5, Washington, DC 20219. • Fax: (202) 874–4448. • Hand Delivery/Courier: 250 E Street, SW., Attn: Public Information Room, Mail Stop 1–5, Washington, DC 20219. Instructions: You must include ‘‘OCC’’ as the agency name and ‘‘Docket ID OCC–2008–0010’’ in your comment. In general, OCC will enter all comments received into the docket and publish them on the Regulations.gov Web site without change, including any business or personal information that you provide such as name and address information, e-mail addresses, or phone numbers. Comments received, including attachments and other supporting materials, are part of the public record and subject to public disclosure. Do not enclose any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure. You may review comments and other related materials that pertain to this interim final rule by any of the following methods: • Viewing Comments Electronically: Go to http://www.regulations.gov, under the ‘‘More Search Options’’ tab click next to the ‘‘Advanced Docket Search’’ option where indicated, select ‘‘Comptroller of the Currency’’ from the agency drop-down menu, then click ‘‘Submit.’’ In the ‘‘Docket ID’’ column, select ‘‘OCC–2008–0010’’ to view public comments for this rulemaking action. • Viewing Comments Personally: You may personally inspect and photocopy comments at the OCC’s Public Information Room, 250 E Street, SW., Washington, DC. For security reasons, the OCC requires that visitors make an appointment to inspect comments. You may do so by calling (202) 874–5043. Upon arrival, visitors will be required to present valid government-issued photo identification and submit to security screening in order to inspect and photocopy comments. • Docket: You may also view or request available background documents and project summaries using the methods described above. FOR FURTHER INFORMATION CONTACT: Steven VanMeter, Assistant Director, Community and Consumer Law Division, (202) 874–5750; Stuart E. Feldstein, Assistant Director, Legislative and Regulatory Activities, (202) 874– 5090; or Patrick T. Tierney, Senior Attorney, Legislative and Regulatory Activities, (202) 874–5090, Office of the Comptroller of the Currency, 250 E Street SW., Washington, DC 20219. VerDate Aug<31>2005 15:34 Aug 08, 2008 Jkt 214001 46533 order to implement the statutory changes to the public welfare test. SUPPLEMENTARY INFORMATION: Introduction The Financial Services Regulatory Relief Act of 2006 (FSRRA) 1 made a number of changes to 12 U.S.C. 24(Eleventh), the authorizing statute for the Office of the Comptroller of the Currency’s (OCC) community development regulations.2 Prior to its amendment by the FSRRA, 12 U.S.C. 24(Eleventh) authorized a national bank ‘‘[t]o make investments designed primarily to promote the public welfare, including the welfare of low- and moderate-income communities or families (such as by providing housing, services, or jobs)’’ (the public welfare test). The FSRRA, among other things, narrowed the grant of authority in section 24(Eleventh) by providing that a national bank may ‘‘make investments directly or indirectly, each of which promotes the public welfare by benefiting primarily low- and moderateincome communities or families (such as by providing housing, services, or jobs).’’ (emphasis added) 3 On April 24, 2008, the OCC issued a final rule that implemented the FSRRA’s narrowing of the public welfare test. In the Notice of Proposed Rulemaking that preceded that final rule, the OCC noted that Congress was considering a bill that would change the language of the public welfare test back to the way it existed prior to the FSRRA changes.4 On July 30, 2008, the President signed into law the Housing and Economic Recovery Act of 2008 (HERA), which, in part, reinstated the pre-FSRRA wording of the public welfare test.5 Specifically, section 2503 of the HERA revised section 24(Eleventh) to provide that a national bank may ‘‘* * * make investments directly or indirectly, each of which is designed primarily to promote the public welfare, including the welfare of low- and moderateincome communities or families (such as by providing housing, services, or jobs)’’ (emphasis added).6 Under section 2503 of the HERA and the revisions made by this interim final rule, national banks and their subsidiaries will now be able to make a broader range of investments. Definition of ‘‘Community and Economic Development Entity’’ (CEDE) (§ 24.2(c)) The interim final rule amends the definition of a CEDE in § 24.2(c) to implement the HERA change to the public welfare test. The revised paragraph (c) defines a CEDE as ‘‘an entity that makes investments or conducts activities that primarily benefit low- and moderate-income individuals, low- and moderate-income areas, or other areas targeted by a governmental entity for redevelopment, or would receive consideration as ‘‘qualified investments’’ under 12 CFR 25.23.’’ Description of the Interim Final Rule Revision to Appendix 1 to Part 24, the CD–1 National Bank Community Development (Part 24) Investments Form The interim final rule also revises Appendix 1 to part 24, the CD–1 National Bank Community Development (Part 24) Investments Form, to reflect the changes to the regulation. This interim final rule makes the following specific revisions to part 24 in 1 Pub. L. 109–351, 120 Stat. 1966 (Oct. 13, 2006). CFR part 24 (2008). 3 Pub. L. 109–351, 120 Stat. 1966 (Oct. 13, 2006). 4 72 FR 36559 (July 3, 2007). 5 Pub. L. 110–289, 122 Stat. 2654 (July 30, 2008). 6 Id. 2 12 PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 Removing the Definition of ‘‘Benefiting Primarily Low- and Moderate-Income Areas or Individuals’’ (§ 24.2(g)) As indicated above, the FSRRA authorized a national bank and its subsidiaries to make investments that promote the public welfare by ‘‘benefiting primarily’’ low- and moderate-income areas or individuals. OCC’s rule implementing the FSRRA added a definition for ‘‘benefiting primarily low and moderate-income areas or individuals.’’ The HERA revision removed the ‘‘benefiting primarily’’ language, thus, this definition is no longer needed and is removed by the interim final rule. Public Welfare Investments (§ 24.3) The interim final rule revises § 24.3, which contains the authorization to make investments pursuant to section 24(Eleventh), to conform to the changes made by the HERA. Examples of Qualifying Public Welfare Investments (§ 24.6) Section 24.6 contains examples of qualifying public welfare investments. The interim final rule revises the introductory language in § 24.6 to reflect the changes made by section 2503 of the HERA. The interim final rule also adds back, where appropriate, references to investments in ‘‘targeted redevelopment areas.’’ These references had been removed by the FSRRA implementing regulation. E:\FR\FM\11AUR1.SGM 11AUR1 46534 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Rules and Regulations Effective Date; Solicitation of Comments This interim final rule will become effective immediately upon publication in the Federal Register. Pursuant to the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(B), general notice and an opportunity for public comment are not required prior to the issuance of a final rule when an agency, for good cause, finds that notice and public procedure are ‘‘impracticable, unnecessary, or contrary to the public interest.’’ 7 Similarly, an agency may publish a final rule with an immediate effective date if the agency finds good cause and publishes such with the rule. 5 U.S.C. 553(d)(3). Consistent with section 553(b)(B) of the APA, the OCC finds that good cause exists for a finding that notice and comment are impracticable and contrary to the public interest. In enacting the Foreclosure Prevention Act of 2008 (part of the HERA), which includes these changes to 12 U.S.C. 24(Eleventh), Congress stated that all provisions of that Act are designated as ‘‘emergency requirements and necessary to meet emergency needs.’’ 8 An interim final rule will allow national banks and their subsidiaries immediately to make a broader range of investments to promote the public welfare, including investments in distressed communities affected by rising foreclosures. Immediate issuance of this interim final rule furthers the public interest because it will provide national banks and their subsidiaries with additional flexibility to make public welfare investments in low- and moderate-income individuals or areas or targeted redevelopment areas, or that would receive consideration under the Community Reinvestment Act (12 U.S.C. 2901 et seq.) as ‘‘qualified investments.’’ For these same reasons, the OCC finds good cause to publish this rule with an immediate effective date. See 5 U.S.C. 553(d)(3). Although notice and comment are not required prior to the effective date of this rule, the OCC invites comment on all aspects of this interim final rule, and intends to revise the interim final rule if necessary or appropriate in light of the comments received. jlentini on PROD1PC65 with RULES Regulatory Analysis Regulatory Flexibility Act The Regulatory Flexibility Act (Pub. L. 96–354, Sept. 19, 1980) (RFA) applies only to rules for which an agency publishes a general notice of proposed U.S.C. 553(b)(B). section 2002 of the HERA, Pub. L. 110–289, 122 Stat. 2654 (July 30, 2008). rulemaking pursuant to 5 U.S.C. 553(b).9 Pursuant to the Administrative Procedure Act (APA) at 5 U.S.C. 553(b)(B), general notice and an opportunity for public comment are not required prior to the issuance of a final rule when an agency, for good cause, finds that ‘‘notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.’’ 10 As discussed above, the OCC has determined for good cause that the APA does not require general notice and public comment on this interim final rule and, therefore, we are not publishing a general notice of proposed rulemaking. Thus, the RFA, pursuant to 5 U.S.C. 601(2), does not apply to this interim final rule. Executive Order 12866 The OCC has determined that this interim final rule is not a significant regulatory action under Executive Order 12866. We have concluded that the changes made by this interim final rule will not have an annual effect on the economy of $100 million or more within the meaning of Executive Order 12866. The OCC further concludes that this interim final rule does not meet any of the other standards for a significant regulatory action set forth in Executive Order 12866. Paperwork Reduction Act In accordance with the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3506), we have reviewed the interim final rule to assess any information collections. There are no collections of information as defined by the Paperwork Reduction Act in the interim final rule. Unfunded Mandates Reform Act of 1995 Section 202 of the Unfunded Mandates Reform Act of 1995, Public Law 104–4 (2 U.S.C. 1532) (Unfunded Mandates Act), requires that an agency prepare a budgetary impact statement before promulgating any rule likely to result in a Federal mandate that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year. If a budgetary impact statement is required, section 205 of the Unfunded Mandates Act also requires an agency to identify and consider a reasonable number of regulatory alternatives before promulgating a rule. The OCC has determined that this interim final rule will not result in expenditures by State, local, and tribal governments, or by the 75 8 See VerDate Aug<31>2005 15:34 Aug 08, 2008 Jkt 214001 95 U.S.C. 601(2). U.S.C. 553(b)(B). 10 5 PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 private sector, of $100 million or more in any one year. Accordingly, the interim final rule is not subject to section 202 of the Unfunded Mandates Act. List of Subjects in 12 CFR Part 24 Community development, Credit, Investments, Low and moderate income housing, National banks, Reporting and recordkeeping requirements, Rural areas, Small businesses. Authority and Issuance For the reasons set forth in the preamble, part 24 of chapter I of title 12 of the Code of Federal Regulations is amended as follows: I PART 24—COMMUNITY AND ECONOMIC DEVELOPMENT ENTITIES, COMMUNITY DEVELOPMENT PROJECTS, AND OTHER PUBLIC WELFARE INVESTMENTS 1. The authority citation for part 24 continues to read as follows: I Authority: 12 U.S.C. 24(Eleventh), 93a, 481, and 1818. 2. Amend § 24.2 by: a. Revising the first sentence of paragraph (c); I b. Removing paragraph (g); and I c. Redesignating paragraphs (h) through (j) as paragraphs (g) through (i), respectively. The revision reads as follows: I I § 24.2 Definitions. * * * * * (c) Community and economic development entity (CEDE) means an entity that makes investments or conducts activities that primarily benefit low- and moderate-income individuals, low- and moderate-income areas, or other areas targeted by a governmental entity for redevelopment, or would receive consideration as ‘‘qualified investments’’ under 12 CFR 25.23. * * * * * * * * I 3. Revise § 24.3 to read as follows: § 24.3 Public welfare investments. A national bank or national bank subsidiary may make an investment directly or indirectly under this part if the investment primarily benefits lowand moderate income individuals, lowand moderate income areas, or other areas targeted by a governmental entity for redevelopment, or the investment would receive consideration under 12 CFR 25.23 as a ‘‘qualified investment.’’ I 4. Amend § 24.6 by: I a. Revising the introductory text; and I b. Revising paragraphs (b)(1) through (4), (d)(1), and (d)(4). E:\FR\FM\11AUR1.SGM 11AUR1 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Rules and Regulations The revisions read as follows: § 24.6 Examples of qualifying public welfare investments. jlentini on PROD1PC65 with RULES Investments that primarily support the following types of activities are examples of investments that meet the requirements of § 24.3: * * * * * (b) * * * (1) Investments that finance small businesses (including equity or debt financing and investments in an entity that provides loan guarantees) that are located in low- and moderate-income areas or other targeted redevelopment areas or that produce or retain permanent jobs, the majority of which are held by low- and moderate-income individuals; (2) Investments that finance small businesses or small farms, including minority- and women-owned small businesses or small farms, that, although not located in low- and moderateincome areas or targeted redevelopment VerDate Aug<31>2005 15:34 Aug 08, 2008 Jkt 214001 areas, create a significant number of permanent jobs for low- and moderateincome individuals; (3) Investments in an entity that acquires, develops, rehabilitates, manages, sells, or rents commercial or industrial property that is located in a low- and moderate-income area or targeted redevelopment area and occupied primarily by small businesses, or that is occupied primarily by small businesses that produce or retain permanent jobs, the majority of which are held by low- and moderate-income individuals; and (4) Investments in low- and moderateincome areas or targeted redevelopment areas that produce or retain permanent jobs, the majority of which are held by low- and moderate-income individuals; * * * * * (d) * * * (1) Investments that provide credit counseling, financial literacy, job training, community development research, and similar technical PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 46535 assistance for non-profit community development organizations, low- and moderate-income individuals or areas or targeted redevelopment areas, or small businesses, including minority- and women-owned small businesses, located in low- and moderate-income areas or that produce or retain permanent jobs, the majority of which are held by lowand moderate-income individuals; * * * * * (4) Investments in minority- and women-owned depository institutions that serve primarily low- and moderateincome individuals or low- and moderate-income areas or targeted redevelopment areas. 5. Revise appendix 1 to part 24 to read as follows: I APPENDIX 1 TO PART 24—CD–1— NATIONAL BANK COMMUNITY DEVELOPMENT (PART 24) INVESTMENTS BILLING CODE 4810–33–P E:\FR\FM\11AUR1.SGM 11AUR1 VerDate Aug<31>2005 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Rules and Regulations 15:34 Aug 08, 2008 Jkt 214001 PO 00000 Frm 00008 Fmt 4700 Sfmt 4725 E:\FR\FM\11AUR1.SGM 11AUR1 ER11AU08.005</GPH> jlentini on PROD1PC65 with RULES 46536 VerDate Aug<31>2005 15:34 Aug 08, 2008 Jkt 214001 PO 00000 Frm 00009 Fmt 4700 Sfmt 4725 E:\FR\FM\11AUR1.SGM 11AUR1 46537 ER11AU08.006</GPH> jlentini on PROD1PC65 with RULES Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Rules and Regulations VerDate Aug<31>2005 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Rules and Regulations 15:34 Aug 08, 2008 Jkt 214001 PO 00000 Frm 00010 Fmt 4700 Sfmt 4725 E:\FR\FM\11AUR1.SGM 11AUR1 ER11AU08.007</GPH> jlentini on PROD1PC65 with RULES 46538 BILLING CODE 4810–33–C DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 25 [Docket No. NM391; Special Conditions No. 25–273–SC] Federal Aviation Administration (FAA), DOT. ACTION: Final special conditions. jlentini on PROD1PC65 with RULES AGENCY: SUMMARY: These special conditions are issued for the Embraer S.A. Model ERJ 190–100 ECJ airplane. This airplane will have novel or unusual design features 15:34 Aug 08, 2008 Jkt 214001 FOR FURTHER INFORMATION CONTACT: Jayson Claar, FAA, Airframe/Cabin Safety Branch, ANM–115, Transport Airplane Directorate, Aircraft Certification Service, 1601 Lind Avenue, SW., Renton, Washington 98057–3356; telephone 425–227–2194; facsimile 425–227–1232. SUPPLEMENTARY INFORMATION: Special Conditions: Embraer S.A., Model ERJ 190–100 ECJ Airplane; Flight-Accessible Class C Cargo Compartment VerDate Aug<31>2005 associated with access during flight of the main deck Class C cargo compartment. The applicable airworthiness regulations do not contain adequate or appropriate safety standards for this design feature. These special conditions contain the additional safety standards that the Administrator considers necessary to establish a level of safety equivalent to that established by the existing airworthiness standards. DATES: Effective Date: September 10, 2008. Background Embraer S.A., made the original application for certification of the ERJ 190 on May 20, 1999. The Embraer PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 application includes six different models, the initial variant being designated as the ERJ 190–100. The application was submitted concurrently with that for the ERJ 170–100, which received an FAA type certificate (TC) on February 20, 2004. Although the applications were submitted as two distinct TCs, the airplanes share the same conceptual design and general configuration. On July 2, 2003, Embraer S.A., submitted a request for an extension of its original application for the Embraer S.A., Model ERJ 190 series, with a new application date of May 30, 2001, for establishing the type certification basis. The FAA certification basis was adjusted to reflect this new reference date. In addition, Embraer has elected to voluntarily comply with certain 14 CFR part 25 amendments introduced after the May 30, 2001, application date. On May 30, 2001, Embraer S.A., amended the application to include the Embraer S.A., Model ERJ 190–100 ECJ. The Embraer S.A., Model ERJ 190–100 ECJ is a derivative of the Embraer S.A., E:\FR\FM\11AUR1.SGM 11AUR1 ER11AU08.009</GPH> Dated: August 5, 2008. John C. Dugan, Comptroller of the Currency. [FR Doc. E8–18410 Filed 8–8–08; 8:45 am] 46539 ER11AU08.008</GPH> Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Rules and Regulations

Agencies

[Federal Register Volume 73, Number 155 (Monday, August 11, 2008)]
[Rules and Regulations]
[Pages 46532-46539]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-18410]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 24

[Docket ID OCC-2008-0010]
RIN 1557-AD12


Community and Economic Development Entities, Community 
Development Projects, and Other Public Welfare Investments

AGENCY: Office of the Comptroller of the Currency, Treasury.

ACTION: Interim final rule with request for comment.

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SUMMARY: On July 30, 2008, the President signed into law the Housing 
and Economic Recovery Act of 2008 (HERA). Section 2503 of the HERA 
revises the community development investment authority in 12 U.S.C. 
24(Eleventh) to permit a national bank to make a broader range of 
investments designed primarily to promote the public welfare. This 
interim final rule implements the changes made to section 24(Eleventh) 
by the HERA.

DATES: Effective Date: This rule is effective on August 11, 2008.
    Comment Date: Comments must be received by September 10, 2008.

ADDRESSES: Because paper mail in the Washington, DC area and at the OCC 
is subject to delay, commenters are encouraged to submit comments by e-
mail, if possible. Please use the title ``Community Development 
Investments'' to facilitate the organization and distribution of the 
comments. You may submit comments by any of the following methods:
     Federal eRulemaking Portal--``Regulations.gov'': Go to 
http://www.regulations.gov, under the ``More Search Options'' tab click 
next to the ``Advanced Docket Search'' option where indicated, select 
``Comptroller of the Currency'' from the agency drop-down menu, then 
click ``Submit.'' In the ``Docket ID'' column, select ``OCC-2008-0010'' 
to submit or view public comments and to view supporting and related 
materials for this interim final rule. The ``How to Use This Site'' 
link on the Regulations.gov home page provides information on using 
Regulations.gov, including instructions for submitting or viewing 
public comments, viewing other supporting and related materials, and 
viewing the docket after the close of the comment period.
     E-mail: regs.comments@occ.treas.gov.

[[Page 46533]]

     Mail: Office of the Comptroller of the Currency, 250 E 
Street, SW., Mail Stop 1-5, Washington, DC 20219.
     Fax: (202) 874-4448.
     Hand Delivery/Courier: 250 E Street, SW., Attn: Public 
Information Room, Mail Stop 1-5, Washington, DC 20219.
    Instructions: You must include ``OCC'' as the agency name and 
``Docket ID OCC-2008-0010'' in your comment. In general, OCC will enter 
all comments received into the docket and publish them on the 
Regulations.gov Web site without change, including any business or 
personal information that you provide such as name and address 
information, e-mail addresses, or phone numbers. Comments received, 
including attachments and other supporting materials, are part of the 
public record and subject to public disclosure. Do not enclose any 
information in your comment or supporting materials that you consider 
confidential or inappropriate for public disclosure.
    You may review comments and other related materials that pertain to 
this interim final rule by any of the following methods:
     Viewing Comments Electronically: Go to http://
www.regulations.gov, under the ``More Search Options'' tab click next 
to the ``Advanced Docket Search'' option where indicated, select 
``Comptroller of the Currency'' from the agency drop-down menu, then 
click ``Submit.'' In the ``Docket ID'' column, select ``OCC-2008-0010'' 
to view public comments for this rulemaking action.
     Viewing Comments Personally: You may personally inspect 
and photocopy comments at the OCC's Public Information Room, 250 E 
Street, SW., Washington, DC. For security reasons, the OCC requires 
that visitors make an appointment to inspect comments. You may do so by 
calling (202) 874-5043. Upon arrival, visitors will be required to 
present valid government-issued photo identification and submit to 
security screening in order to inspect and photocopy comments.
     Docket: You may also view or request available background 
documents and project summaries using the methods described above.

FOR FURTHER INFORMATION CONTACT: Steven VanMeter, Assistant Director, 
Community and Consumer Law Division, (202) 874-5750; Stuart E. 
Feldstein, Assistant Director, Legislative and Regulatory Activities, 
(202) 874-5090; or Patrick T. Tierney, Senior Attorney, Legislative and 
Regulatory Activities, (202) 874-5090, Office of the Comptroller of the 
Currency, 250 E Street SW., Washington, DC 20219.

SUPPLEMENTARY INFORMATION:

Introduction

    The Financial Services Regulatory Relief Act of 2006 (FSRRA) \1\ 
made a number of changes to 12 U.S.C. 24(Eleventh), the authorizing 
statute for the Office of the Comptroller of the Currency's (OCC) 
community development regulations.\2\ Prior to its amendment by the 
FSRRA, 12 U.S.C. 24(Eleventh) authorized a national bank ``[t]o make 
investments designed primarily to promote the public welfare, including 
the welfare of low- and moderate-income communities or families (such 
as by providing housing, services, or jobs)'' (the public welfare 
test). The FSRRA, among other things, narrowed the grant of authority 
in section 24(Eleventh) by providing that a national bank may ``make 
investments directly or indirectly, each of which promotes the public 
welfare by benefiting primarily low- and moderate-income communities or 
families (such as by providing housing, services, or jobs).'' (emphasis 
added) \3\
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    \1\ Pub. L. 109-351, 120 Stat. 1966 (Oct. 13, 2006).
    \2\ 12 CFR part 24 (2008).
    \3\ Pub. L. 109-351, 120 Stat. 1966 (Oct. 13, 2006).
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    On April 24, 2008, the OCC issued a final rule that implemented the 
FSRRA's narrowing of the public welfare test. In the Notice of Proposed 
Rulemaking that preceded that final rule, the OCC noted that Congress 
was considering a bill that would change the language of the public 
welfare test back to the way it existed prior to the FSRRA changes.\4\
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    \4\ 72 FR 36559 (July 3, 2007).
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    On July 30, 2008, the President signed into law the Housing and 
Economic Recovery Act of 2008 (HERA), which, in part, reinstated the 
pre-FSRRA wording of the public welfare test.\5\ Specifically, section 
2503 of the HERA revised section 24(Eleventh) to provide that a 
national bank may ``* * * make investments directly or indirectly, each 
of which is designed primarily to promote the public welfare, including 
the welfare of low- and moderate-income communities or families (such 
as by providing housing, services, or jobs)'' (emphasis added).\6\ 
Under section 2503 of the HERA and the revisions made by this interim 
final rule, national banks and their subsidiaries will now be able to 
make a broader range of investments.
---------------------------------------------------------------------------

    \5\ Pub. L. 110-289, 122 Stat. 2654 (July 30, 2008).
    \6\ Id.
---------------------------------------------------------------------------

Description of the Interim Final Rule

    This interim final rule makes the following specific revisions to 
part 24 in order to implement the statutory changes to the public 
welfare test.

Definition of ``Community and Economic Development Entity'' (CEDE) 
(Sec.  24.2(c))

    The interim final rule amends the definition of a CEDE in Sec.  
24.2(c) to implement the HERA change to the public welfare test. The 
revised paragraph (c) defines a CEDE as ``an entity that makes 
investments or conducts activities that primarily benefit low- and 
moderate-income individuals, low- and moderate-income areas, or other 
areas targeted by a governmental entity for redevelopment, or would 
receive consideration as ``qualified investments'' under 12 CFR 
25.23.''

Removing the Definition of ``Benefiting Primarily Low- and Moderate-
Income Areas or Individuals'' (Sec.  24.2(g))

    As indicated above, the FSRRA authorized a national bank and its 
subsidiaries to make investments that promote the public welfare by 
``benefiting primarily'' low- and moderate-income areas or individuals. 
OCC's rule implementing the FSRRA added a definition for ``benefiting 
primarily low and moderate-income areas or individuals.'' The HERA 
revision removed the ``benefiting primarily'' language, thus, this 
definition is no longer needed and is removed by the interim final 
rule.

Public Welfare Investments (Sec.  24.3)

    The interim final rule revises Sec.  24.3, which contains the 
authorization to make investments pursuant to section 24(Eleventh), to 
conform to the changes made by the HERA.

Examples of Qualifying Public Welfare Investments (Sec.  24.6)

    Section 24.6 contains examples of qualifying public welfare 
investments. The interim final rule revises the introductory language 
in Sec.  24.6 to reflect the changes made by section 2503 of the HERA. 
The interim final rule also adds back, where appropriate, references to 
investments in ``targeted redevelopment areas.'' These references had 
been removed by the FSRRA implementing regulation.

Revision to Appendix 1 to Part 24, the CD-1 National Bank Community 
Development (Part 24) Investments Form

    The interim final rule also revises Appendix 1 to part 24, the CD-1 
National Bank Community Development (Part 24) Investments Form, to 
reflect the changes to the regulation.

[[Page 46534]]

Effective Date; Solicitation of Comments

    This interim final rule will become effective immediately upon 
publication in the Federal Register. Pursuant to the Administrative 
Procedure Act (APA), 5 U.S.C. 553(b)(B), general notice and an 
opportunity for public comment are not required prior to the issuance 
of a final rule when an agency, for good cause, finds that notice and 
public procedure are ``impracticable, unnecessary, or contrary to the 
public interest.'' \7\ Similarly, an agency may publish a final rule 
with an immediate effective date if the agency finds good cause and 
publishes such with the rule. 5 U.S.C. 553(d)(3).
---------------------------------------------------------------------------

    \7\ 5 U.S.C. 553(b)(B).
---------------------------------------------------------------------------

    Consistent with section 553(b)(B) of the APA, the OCC finds that 
good cause exists for a finding that notice and comment are 
impracticable and contrary to the public interest. In enacting the 
Foreclosure Prevention Act of 2008 (part of the HERA), which includes 
these changes to 12 U.S.C. 24(Eleventh), Congress stated that all 
provisions of that Act are designated as ``emergency requirements and 
necessary to meet emergency needs.'' \8\ An interim final rule will 
allow national banks and their subsidiaries immediately to make a 
broader range of investments to promote the public welfare, including 
investments in distressed communities affected by rising foreclosures. 
Immediate issuance of this interim final rule furthers the public 
interest because it will provide national banks and their subsidiaries 
with additional flexibility to make public welfare investments in low- 
and moderate-income individuals or areas or targeted redevelopment 
areas, or that would receive consideration under the Community 
Reinvestment Act (12 U.S.C. 2901 et seq.) as ``qualified investments.'' 
For these same reasons, the OCC finds good cause to publish this rule 
with an immediate effective date. See 5 U.S.C. 553(d)(3).
---------------------------------------------------------------------------

    \8\ See section 2002 of the HERA, Pub. L. 110-289, 122 Stat. 
2654 (July 30, 2008).
---------------------------------------------------------------------------

    Although notice and comment are not required prior to the effective 
date of this rule, the OCC invites comment on all aspects of this 
interim final rule, and intends to revise the interim final rule if 
necessary or appropriate in light of the comments received.

Regulatory Analysis

Regulatory Flexibility Act

    The Regulatory Flexibility Act (Pub. L. 96-354, Sept. 19, 1980) 
(RFA) applies only to rules for which an agency publishes a general 
notice of proposed rulemaking pursuant to 5 U.S.C. 553(b).\9\ Pursuant 
to the Administrative Procedure Act (APA) at 5 U.S.C. 553(b)(B), 
general notice and an opportunity for public comment are not required 
prior to the issuance of a final rule when an agency, for good cause, 
finds that ``notice and public procedure thereon are impracticable, 
unnecessary, or contrary to the public interest.'' \10\
---------------------------------------------------------------------------

    \9\ 5 U.S.C. 601(2).
    \10\ 5 U.S.C. 553(b)(B).
---------------------------------------------------------------------------

    As discussed above, the OCC has determined for good cause that the 
APA does not require general notice and public comment on this interim 
final rule and, therefore, we are not publishing a general notice of 
proposed rulemaking. Thus, the RFA, pursuant to 5 U.S.C. 601(2), does 
not apply to this interim final rule.

Executive Order 12866

    The OCC has determined that this interim final rule is not a 
significant regulatory action under Executive Order 12866. We have 
concluded that the changes made by this interim final rule will not 
have an annual effect on the economy of $100 million or more within the 
meaning of Executive Order 12866. The OCC further concludes that this 
interim final rule does not meet any of the other standards for a 
significant regulatory action set forth in Executive Order 12866.

Paperwork Reduction Act

    In accordance with the requirements of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3506), we have reviewed the interim final rule to 
assess any information collections. There are no collections of 
information as defined by the Paperwork Reduction Act in the interim 
final rule.

Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995, Public Law 
104-4 (2 U.S.C. 1532) (Unfunded Mandates Act), requires that an agency 
prepare a budgetary impact statement before promulgating any rule 
likely to result in a Federal mandate that may result in the 
expenditure by State, local, and tribal governments, in the aggregate, 
or by the private sector, of $100 million or more in any one year. If a 
budgetary impact statement is required, section 205 of the Unfunded 
Mandates Act also requires an agency to identify and consider a 
reasonable number of regulatory alternatives before promulgating a 
rule. The OCC has determined that this interim final rule will not 
result in expenditures by State, local, and tribal governments, or by 
the private sector, of $100 million or more in any one year. 
Accordingly, the interim final rule is not subject to section 202 of 
the Unfunded Mandates Act.

List of Subjects in 12 CFR Part 24

    Community development, Credit, Investments, Low and moderate income 
housing, National banks, Reporting and recordkeeping requirements, 
Rural areas, Small businesses.

Authority and Issuance

0
For the reasons set forth in the preamble, part 24 of chapter I of 
title 12 of the Code of Federal Regulations is amended as follows:

PART 24--COMMUNITY AND ECONOMIC DEVELOPMENT ENTITIES, COMMUNITY 
DEVELOPMENT PROJECTS, AND OTHER PUBLIC WELFARE INVESTMENTS

0
1. The authority citation for part 24 continues to read as follows:

    Authority: 12 U.S.C. 24(Eleventh), 93a, 481, and 1818.


0
2. Amend Sec.  24.2 by:
0
a. Revising the first sentence of paragraph (c);
0
b. Removing paragraph (g); and
0
c. Redesignating paragraphs (h) through (j) as paragraphs (g) through 
(i), respectively.
    The revision reads as follows:


Sec.  24.2  Definitions.

* * * * *
    (c) Community and economic development entity (CEDE) means an 
entity that makes investments or conducts activities that primarily 
benefit low- and moderate-income individuals, low- and moderate-income 
areas, or other areas targeted by a governmental entity for 
redevelopment, or would receive consideration as ``qualified 
investments'' under 12 CFR 25.23. * * *
* * * * *

0
3. Revise Sec.  24.3 to read as follows:


Sec.  24.3  Public welfare investments.

    A national bank or national bank subsidiary may make an investment 
directly or indirectly under this part if the investment primarily 
benefits low- and moderate income individuals, low- and moderate income 
areas, or other areas targeted by a governmental entity for 
redevelopment, or the investment would receive consideration under 12 
CFR 25.23 as a ``qualified investment.''

0
4. Amend Sec.  24.6 by:
0
a. Revising the introductory text; and
0
b. Revising paragraphs (b)(1) through (4), (d)(1), and (d)(4).

[[Page 46535]]

    The revisions read as follows:


Sec.  24.6  Examples of qualifying public welfare investments.

    Investments that primarily support the following types of 
activities are examples of investments that meet the requirements of 
Sec.  24.3:
* * * * *
    (b) * * *
    (1) Investments that finance small businesses (including equity or 
debt financing and investments in an entity that provides loan 
guarantees) that are located in low- and moderate-income areas or other 
targeted redevelopment areas or that produce or retain permanent jobs, 
the majority of which are held by low- and moderate-income individuals;
    (2) Investments that finance small businesses or small farms, 
including minority- and women-owned small businesses or small farms, 
that, although not located in low- and moderate-income areas or 
targeted redevelopment areas, create a significant number of permanent 
jobs for low- and moderate-income individuals;
    (3) Investments in an entity that acquires, develops, 
rehabilitates, manages, sells, or rents commercial or industrial 
property that is located in a low- and moderate-income area or targeted 
redevelopment area and occupied primarily by small businesses, or that 
is occupied primarily by small businesses that produce or retain 
permanent jobs, the majority of which are held by low- and moderate-
income individuals; and
    (4) Investments in low- and moderate-income areas or targeted 
redevelopment areas that produce or retain permanent jobs, the majority 
of which are held by low- and moderate-income individuals;
* * * * *
    (d) * * *
    (1) Investments that provide credit counseling, financial literacy, 
job training, community development research, and similar technical 
assistance for non-profit community development organizations, low- and 
moderate-income individuals or areas or targeted redevelopment areas, 
or small businesses, including minority- and women-owned small 
businesses, located in low- and moderate-income areas or that produce 
or retain permanent jobs, the majority of which are held by low- and 
moderate-income individuals;
* * * * *
    (4) Investments in minority- and women-owned depository 
institutions that serve primarily low- and moderate-income individuals 
or low- and moderate-income areas or targeted redevelopment areas.


0
5. Revise appendix 1 to part 24 to read as follows:

APPENDIX 1 TO PART 24--CD-1--NATIONAL BANK COMMUNITY DEVELOPMENT (PART 
24) INVESTMENTS

BILLING CODE 4810-33-P

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    Dated: August 5, 2008.
John C. Dugan,
Comptroller of the Currency.
[FR Doc. E8-18410 Filed 8-8-08; 8:45 am]
BILLING CODE 4810-33-C