Reserve Requirements of Depository Institutions, 65506-65507 [E8-26206]

Download as PDF 65506 Federal Register / Vol. 73, No. 214 / Tuesday, November 4, 2008 / Rules and Regulations The Agencies have determined that this final action does not constitute a major Federal action significantly affecting the quality of human environment, and in accordance with the National Environmental Policy Act of 1969, 42 U.S.C. 4321 et seq., an Environmental Impact Statement is not required. The policies contained in this rule do not have any substantial direct effect on States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Nor does this rule impose substantial direct compliance costs on State and local governments. Therefore, consultation with the States is not required. Paperwork Reduction Act The information collection requirements contained in this rule have been approved by the Office of Management and Budget (OMB) under the provisions of 44 U.S.C. chapter 35 and were assigned OMB control number 0575–0189 in accordance with the Paperwork Reduction Act of 1995. No person is required to respond to a collection of information unless it displays a valid OMB control number. This rule does not impose any new information collection requirements from those approved by OMB. Discussion of Final Rule List of Subjects in 7 CFR Part 3560 dwashington3 on PRODPC61 with RULES Authority: 42 U.S.C. 1480. Subpart N—Housing Preservation 2. Section 3560.653 is amended in paragraph (b)(5) by removing ‘‘(MFH)’’ and by revising paragraphs (b)(4) and (b)(6) to read as follows: § 3560.653 Prepayment requests. * * * * * (b) * * * (4) A copy of lease language to be used during the period between the submission date and the final resolution of the prepayment request notifying tenant applicants that the owner of the housing project has submitted a prepayment request to the Agency and explaining the potential effect of the request on the lease. * * * * * (6) A certification that the borrower has notified all governmental entities involved in providing affordable housing or financial assistance to tenants in the project and that the borrower has provided a statement specifying how long financial assistance from such parties will be provided to tenants after prepayment. * * * * * § 3650.656 [Amended] 3. Section 3560.656 is amended in paragraph (a)(2) by revising the word ‘‘affect’’ to read ‘‘effect’’ and in the introductory text of paragraph (e) by revising the words ‘‘At the time the incentive is developed,’’ to read ‘‘At the time a specific incentive offer is developed,’’. ■ 4. Section 3560.658 is amended by removing paragraph (a)(2) and redesignating paragraph (a)(3) as paragraph (a)(2); by redesignating paragraphs (b)(1) through (b)(3) as (b)(2) through (b)(4) respectively; and by revising newly redesignated (a)(2) and by adding a new paragraph (b)(1) to read as follows: ■ On November 26, 2004, Rural Development published an Interim Final Rule which added 7 CFR part 3560, a consolidation of several Rural Development regulations. Since its publication, many comments have been received regarding errors and omissions. In some cases, requirements are referenced that are no longer requirements. With this final rule, the Agency is correcting errors and providing editorial corrections and clarifications to 7 CFR part 3560, subpart N, ‘‘Housing Preservation.’’ § 3560.658. Borrower rejection of the incentive offer. Grant programs—Housing and community development, Loan programs—Agriculture, Loan programs—Housing and community development, Low and moderate income housing, Nonprofit organizations. For the reasons set forth in the preamble, chapter XVIII, title 7, of the Code of Federal Regulations is amended as follows: ■ 15:01 Nov 03, 2008 1. The authority citation for part 3560 continues to read as follows: ■ ■ Executive Order 13132, Federalism VerDate Aug<31>2005 PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS Jkt 217001 (a) * * * (2) If housing opportunities for minorities would be lost as a result of prepayment, the borrower will offer to sell the housing to a qualified nonprofit organization or public body in accordance with § 3560.659. (b) * * * (1) If restrictive-use provisions are in place, the borrower will agree to sign PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 the restrictive-use provisions, as determined by the Agency, and at the end of the restrictive-use period, offer to sell the housing to a qualified nonprofit organization or public body in accordance with § 3560.659. * * * * * § 3650.659 [Amended] 5. Section 3560.659 is amended in paragraph (e)(6) by revising the words ‘‘bona fide’’ to read ‘‘good faith’’. ■ § 3650.662 [Amended] 6. Section 3560.662 is amended in the following paragraphs by revising the references to section 3560.658 as follows: ■ a. In paragraph (a)(1) by revising ‘‘§ 3560.658(a)(3)’’ to read ‘‘§ 3560.658(a)(2)’’; ■ b. In paragraph (b)(2) by revising ‘‘§ 3560.658(b)(2)’’ to read ‘‘§ 3560.658(b)(3)’’; ■ c. In paragraph (b)(4) by revising ‘‘§ 3560.658(a)(2)’’ to read ‘‘§ 3560.658(b)(1)’’; and ■ d. In paragraph (b)(5) by revising ‘‘§ 3560.658(a)(3)’’ to read ‘‘§ 3560.658 (a)(2)’’. ■ Dated: October 23, 2008. Russell T. Davis, Administrator, Rural Housing Service. [FR Doc. E8–25965 Filed 11–3–08; 8:45 am] BILLING CODE 3410–XV–P FEDERAL RESERVE SYSTEM 12 CFR Part 204 [Regulation D; Docket No. R–1334] Reserve Requirements of Depository Institutions Board of Governors of the Federal Reserve System. ACTION: Interim final rule. AGENCY: SUMMARY: The Board is revising its interim final rule amending Regulation D, Reserve Requirements of Depository Institutions, to alter the formula by which earnings on excess reserves of depository institutions are calculated. The remainder of the interim final rule, including the period during which comments may be submitted, is unchanged from the interim final rule as published on October 9, 2008. DATES: Effective date is November 4, 2008; applicability date is October 23, 2008. FOR FURTHER INFORMATION CONTACT: Sophia H. Allison, Senior Counsel (202/ 452–3565), Legal Division, or Margaret Gillis DeBoer, Senior Financial Analyst E:\FR\FM\04NOR1.SGM 04NOR1 Federal Register / Vol. 73, No. 214 / Tuesday, November 4, 2008 / Rules and Regulations (202/452–3139), Division of Monetary Affairs; for users of Telecommunications Device for the Deaf (TDD) only, contact (202/263–4869); Board of Governors of the Federal Reserve System, 20th and C Streets, NW., Washington, DC 20551. SUPPLEMENTARY INFORMATION: dwashington3 on PRODPC61 with RULES I. Background On October 9, 2008, the Board published in the Federal Register an interim final rule amending Regulation D (Reserve Requirements of Depository Institutions) to direct the Federal Reserve Banks to pay interest on balances held at Reserve Banks to satisfy reserve requirements (‘‘required reserve balances’’) and balances held in excess of required reserve balances and clearing balances (‘‘excess balances’’) (73 FR 59482) (Oct. 9, 2008). At that time, the Board announced two formulas by which the amount of earnings payable on required reserve balances and excess balances will be calculated. For required reserve balances, the Board set the initial rate of interest to be the average federal funds rate target established by the Federal Open Market Committee (FOMC) over the reserve maintenance period less 10 basis points. For excess balances, the Board set the initial rate of interest to be the lowest federal funds rate target established by the FOMC in effect during the reserve maintenance period minus 75 basis points. The Board stated that it may adjust the formula for the interest rate on excess balances in light of experience and evolving market conditions. The Board has judged that a narrower spread between the target funds rate and the rate on excess balances at this time would help foster trading in the funds market at rates closer to the target rate. Accordingly, the Board is altering the formula so that the rate on excess balances will be set equal to the lowest FOMC target rate in effect during the reserve maintenance period less 35 basis points. This change will become effective for the maintenance periods beginning Thursday, October 23. The Board will continue to evaluate the appropriate setting of the rate on excess balances in light of evolving market conditions and make further adjustments as needed. Administrative Procedure Act In accordance with the Administrative Procedure Act (‘‘APA’’) section 553(b) (5 U.S.C. 553(b)), the Board finds, for good cause, that providing notice and an opportunity for public comment before the effective date of this rule would be contrary to VerDate Aug<31>2005 15:01 Nov 03, 2008 Jkt 217001 65507 the public interest. In addition, pursuant to APA section 553(d) (5 U.S.C. 553(d)), the Board finds good cause for making this amendment effective without 30 days advance publication. The Board has adopted this rule in light of, and to help address, the continuing unusual and exigent circumstances in the financial markets. This rule provides tools for carrying out monetary policy more effectively. Thus, the Board believes that any delay in implementing the rule would prove contrary to the public interest. Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, 611, and 3105. Regulatory Flexibility Act By order of the Board of Governors of the Federal Reserve System, October 29, 2008. Robert deV. Frierson, Deputy Secretary of the Board. [FR Doc. E8–26206 Filed 11–3–08; 8:45 am] The Regulatory Flexibility Act requires an agency that is issuing a final rule to prepare and make available a regulatory flexibility analysis that describes the impact of the final rule on small entities. 5 U.S.C. 603(a). The Regulatory Flexibility Act provides that an agency is not required to prepare and publish a regulatory flexibility analysis if the agency certifies that the final rule will not have a significant economic impact on a substantial number of small entities. 5 U.S.C. 605(b). Pursuant to section 605(b), the Board certifies that this interim final rule will not have a significant economic impact on a substantial number of small entities. The rule implements a program for paying interest on certain balances held by eligible institutions at the Federal Reserve Banks and will benefit small institutions that receive such interest. There are no new reporting, recordkeeping, or other compliance requirements associated with this rule. Paperwork Reduction Act In accordance with the Paperwork Reduction Act (44 U.S.C. 3506; 5 CFR 1320 Appendix A.1), the Board has reviewed the interim final rule under authority delegated to the Board by the Office of Management and Budget. The rule contains no collections of information pursuant to the Paperwork Reduction Act. List of Subjects in 12 CFR Part 204 Banks, banking, Reporting and recordkeeping requirements. Authority and Issuance For the reasons set forth in the preamble, the Board is amending 12 CFR part 204 as follows: ■ PART 204—RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS (REGULATION D) 1. The authority citation for part 204 continues to read as follows: ■ PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 2. In § 204.10, paragraph (b)(2) is revised to read as follows: ■ § 204.10 Payment of interest on balances. * * * * * (b) * * * * * * * * (2) For excess balances, at the lowest targeted federal funds rate during the reserve maintenance period less 35 basis points. * * * * * BILLING CODE 6210–01–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2008–0790; Directorate Identifier 2008–CE–042–AD; Amendment 39–15715; AD 2008–22–18] RIN 2120–AA64 Airworthiness Directives; Cessna Aircraft Company 150 Series Airplanes Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. AGENCY: SUMMARY: We are adopting a new airworthiness directive (AD) for certain Cessna Aircraft Company (Cessna) 150 series airplanes with the BRS–150 Parachute System installed via Supplemental Type Certificate (STC) SA64CH. This AD requires you to replace the pick-up collar support and nylon screws for the BRS–150 Parachute System. This AD results from notification by Ballistic Recovery Systems, Inc. (BRS) that the pick-up collar assembly may prematurely move off the launch tube and adversely affect rocket trajectory during deployment. We are issuing this AD to prevent premature separation of the collar. This condition could result in the parachute failing to successfully deploy. DATES: This AD becomes effective on December 9, 2008. On December 9, 2008, the Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD. ADDRESSES: For service information identified in this AD, contact Ballistic E:\FR\FM\04NOR1.SGM 04NOR1

Agencies

[Federal Register Volume 73, Number 214 (Tuesday, November 4, 2008)]
[Rules and Regulations]
[Pages 65506-65507]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-26206]


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FEDERAL RESERVE SYSTEM

12 CFR Part 204

[Regulation D; Docket No. R-1334]


Reserve Requirements of Depository Institutions

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Interim final rule.

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SUMMARY: The Board is revising its interim final rule amending 
Regulation D, Reserve Requirements of Depository Institutions, to alter 
the formula by which earnings on excess reserves of depository 
institutions are calculated. The remainder of the interim final rule, 
including the period during which comments may be submitted, is 
unchanged from the interim final rule as published on October 9, 2008.

DATES: Effective date is November 4, 2008; applicability date is 
October 23, 2008.

FOR FURTHER INFORMATION CONTACT: Sophia H. Allison, Senior Counsel 
(202/452-3565), Legal Division, or Margaret Gillis DeBoer, Senior 
Financial Analyst

[[Page 65507]]

(202/452-3139), Division of Monetary Affairs; for users of 
Telecommunications Device for the Deaf (TDD) only, contact (202/263-
4869); Board of Governors of the Federal Reserve System, 20th and C 
Streets, NW., Washington, DC 20551.

SUPPLEMENTARY INFORMATION:

I. Background

    On October 9, 2008, the Board published in the Federal Register an 
interim final rule amending Regulation D (Reserve Requirements of 
Depository Institutions) to direct the Federal Reserve Banks to pay 
interest on balances held at Reserve Banks to satisfy reserve 
requirements (``required reserve balances'') and balances held in 
excess of required reserve balances and clearing balances (``excess 
balances'') (73 FR 59482) (Oct. 9, 2008). At that time, the Board 
announced two formulas by which the amount of earnings payable on 
required reserve balances and excess balances will be calculated. For 
required reserve balances, the Board set the initial rate of interest 
to be the average federal funds rate target established by the Federal 
Open Market Committee (FOMC) over the reserve maintenance period less 
10 basis points. For excess balances, the Board set the initial rate of 
interest to be the lowest federal funds rate target established by the 
FOMC in effect during the reserve maintenance period minus 75 basis 
points. The Board stated that it may adjust the formula for the 
interest rate on excess balances in light of experience and evolving 
market conditions.
    The Board has judged that a narrower spread between the target 
funds rate and the rate on excess balances at this time would help 
foster trading in the funds market at rates closer to the target rate. 
Accordingly, the Board is altering the formula so that the rate on 
excess balances will be set equal to the lowest FOMC target rate in 
effect during the reserve maintenance period less 35 basis points. This 
change will become effective for the maintenance periods beginning 
Thursday, October 23. The Board will continue to evaluate the 
appropriate setting of the rate on excess balances in light of evolving 
market conditions and make further adjustments as needed.

Administrative Procedure Act

    In accordance with the Administrative Procedure Act (``APA'') 
section 553(b) (5 U.S.C. 553(b)), the Board finds, for good cause, that 
providing notice and an opportunity for public comment before the 
effective date of this rule would be contrary to the public interest. 
In addition, pursuant to APA section 553(d) (5 U.S.C. 553(d)), the 
Board finds good cause for making this amendment effective without 30 
days advance publication. The Board has adopted this rule in light of, 
and to help address, the continuing unusual and exigent circumstances 
in the financial markets. This rule provides tools for carrying out 
monetary policy more effectively. Thus, the Board believes that any 
delay in implementing the rule would prove contrary to the public 
interest.

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires an agency that is issuing a 
final rule to prepare and make available a regulatory flexibility 
analysis that describes the impact of the final rule on small entities. 
5 U.S.C. 603(a). The Regulatory Flexibility Act provides that an agency 
is not required to prepare and publish a regulatory flexibility 
analysis if the agency certifies that the final rule will not have a 
significant economic impact on a substantial number of small entities. 
5 U.S.C. 605(b).
    Pursuant to section 605(b), the Board certifies that this interim 
final rule will not have a significant economic impact on a substantial 
number of small entities. The rule implements a program for paying 
interest on certain balances held by eligible institutions at the 
Federal Reserve Banks and will benefit small institutions that receive 
such interest. There are no new reporting, recordkeeping, or other 
compliance requirements associated with this rule.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act (44 U.S.C. 3506; 5 
CFR 1320 Appendix A.1), the Board has reviewed the interim final rule 
under authority delegated to the Board by the Office of Management and 
Budget. The rule contains no collections of information pursuant to the 
Paperwork Reduction Act.

List of Subjects in 12 CFR Part 204

    Banks, banking, Reporting and recordkeeping requirements.

Authority and Issuance

0
For the reasons set forth in the preamble, the Board is amending 12 CFR 
part 204 as follows:

PART 204--RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 
(REGULATION D)

0
1. The authority citation for part 204 continues to read as follows:

    Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, 611, and 
3105.


0
2. In Sec.  204.10, paragraph (b)(2) is revised to read as follows:


Sec.  204.10  Payment of interest on balances.

* * * * *
    (b) * * *
* * * * *
    (2) For excess balances, at the lowest targeted federal funds rate 
during the reserve maintenance period less 35 basis points.
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, October 29, 2008.
Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. E8-26206 Filed 11-3-08; 8:45 am]
BILLING CODE 6210-01-P