Community and Economic Development Entities, Community Development Projects, and Other Public Welfare Investments, 15657-15665 [E9-7861]

Download as PDF Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations Corporation (CCC) nonrecourse marketing assistance loans or loan deficiency payments for honey for the 2008 through 2012 crop years. Marketing loan gains and loan deficiency payments for the 2008 crop will be limited to the payment limitation rules applicable to the 2008 crop. Beginning with the 2009 crop year, there will not be payment limits on marketing loan gains and loan deficiency payments. (b) Producers must comply with all provisions of this part and part 1421 of this chapter. ■ 46. Amend § 1434.6 as follows: ■ a. Remove paragraph (b) and redesignate paragraphs (c) through (e) as paragraphs (b) through (d), respectively; ■ b. In newly redesignated paragraph (b) introductory text, remove the words ‘‘control, title, and risk of loss in’’ and add, in their place, the words ‘‘title and control of’’; ■ c. Revise newly redesignated paragraph (b)(1) to read as set forth below; and ■ d. In newly redesignated paragraph (b)(2), remove the words ‘‘risk of loss,’’. (1) Acted in good faith when the violation occurred, liquidated damages will be assessed by multiplying the quantity involved in the violation by 10 percent of the loan rate applicable to the loan note for each offense. * * * * * ■ 48. Amend § 1434.18 as follows: ■ a. In paragraph (a), add the words ‘‘during the loan period’’ immediately after the word ‘‘loan’’; and ■ b. Add paragraph (a)(3) to read as set forth below. § 1434.6 ■ Beneficial interest. * * * * * (b) * * * (1) Executes an option to purchase, whether or not a payment is made by the potential buyer for such option to purchase, with respect to such honey if all other eligibility requirements are met and the option to purchase contains the following provision: ‘‘Notwithstanding any other provision of this option to purchase or any other contract, title and control of the honey and beneficial interest in the honey, as specified in 7 CFR 1434.6, must remain with the producer until the buyer exercises this option to purchase the honey. This option to purchase will expire, notwithstanding any action or inaction by either the producer or the buyer, at the earlier of: (1) The maturity of any Commodity Credit Corporation (CCC) loan which is secured by such honey; (2) The date the CCC claims title to such honey; or (3) Such other date as provided in this option.’’ * * * * * ■ 47. Amend § 1434.15 as follows: ■ a. Revise the section heading to read as set forth below; ■ b. Revise paragraph (c)(1) to read as set forth below; and ■ c. In paragraph (c)(2), remove the words ‘‘25 percent’’ and add, in their place, the words ‘‘10 percent’’. § 1434.15 * Personal liability. * * (c) * * * VerDate Nov<24>2008 * Loan repayments. (a) * * * (3) In the event of a severe disruption to marketing, transportation, or related infrastructure, the Secretary may modify the repayment rate otherwise applicable under this section for marketing assistance loans. Any adjustment made to the repayment rate for marketing assistance loans for honey under this part will be in effect on a short-term and temporary basis, as determined by the Secretary. * * * * * § 1434.21 [Amended] 49. Amend § 1434.21(a) by removing the years ‘‘2002–2007’’ and adding, in their place, the words ‘‘2008 through 2012’’. Jkt 217001 final form and without change the interim final rule, issued on August 11, 2008, which implemented the statutory change to national banks’ community development investment authority made in the Housing and Economic Recovery Act of 2008 (HERA). The OCC also is revising Appendix 1 to part 24, the CD– 1 National Bank Community Development (Part 24) Investments Form, to make technical changes that are consistent with the HERA provision and the revised regulation. Section 2503 of the HERA revised the community development investment authority in section 24(Eleventh) to restore a national bank’s authority to make investments designed primarily to promote the public welfare. DATES: Effective Date: April 7, 2009. FOR FURTHER INFORMATION CONTACT: Stephen Van Meter, Assistant Director, Community and Consumer Law Division, (202) 874–5750; Michele Meyer, Assistant Director, Patrick T. Tierney, Senior Attorney, or Rebecca Smith, Attorney, Legislative and Regulatory Activities Division, (202) 874–5090, Office of the Comptroller of the Currency, 250 E Street, SW., Washington, DC 20219. SUPPLEMENTARY INFORMATION: § 1434.22 [Removed] Background § 1434.23 [Redesignated as § 1434.22] Introduction 50. Remove § 1434.22 and redesignate § 1434.23 as § 1434.22. ■ Signed in Washington, DC, on March 31, 2009. Dennis J. Taitano, Acting Executive Vice President, Commodity Credit Corporation. [FR Doc. E9–7644 Filed 4–6–09; 8:45 am] BILLING CODE 3410–05–P DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Part 24 [Docket ID OCC–2009–0006] 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: Final rule. SUMMARY: The Office of the Comptroller of the Currency (OCC) is adopting in * 14:33 Apr 06, 2009 § 1434.18 15657 PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 The Financial Services Regulatory Relief Act of 2006 (FSRRA) 1 made a number of changes to 12 U.S.C. 24(Eleventh), the statute that authorizes national banks’ community development investments.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).’’ 3 On April 24, 2008, the OCC issued a final rule that implemented the 1 Public Law 109–351, 120 Stat. 1966 (Oct. 13, 2006). 2 See 12 CFR part 24 (2008) (implementing 12 U.S.C. 24(Eleventh)). 3 Public Law 109–351, § 305, 120 Stat. at 1970– 71 (emphasis added). E:\FR\FM\07APR1.SGM 07APR1 15658 Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations FSRRA’s narrowing of the public welfare test.4 On July 30, 2008, the President signed into law the HERA, which reinstated the pre-FSRRA 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).’’ 6 On August 11, 2008, the OCC issued an interim final rule to implement section 2503 of the HERA.7 Under section 2503 of the HERA and the revisions made by the interim final rule, national banks and their subsidiaries are able to make a broader range of investments that will strengthen and stabilize communities, including communities affected by rising foreclosures. The OCC is now adopting the interim final rule in final form without change. definition of ‘‘benefiting primarily low and moderate-income areas or individuals.’’ Consistent with the HERA change to section 24(Eleventh), the August 2008 interim final rule removed the definition of ‘‘benefiting primarily low- and moderate-income areas or individuals’’ from part 24. Description of the Interim Final Rule The interim final rule made the following revisions to part 24 in order to implement the HERA’s changes to the public welfare test. Revision to Appendix 1 to Part 24, the CD–1 National Bank Community Development (Part 24) Investments Form The interim final rule also revised Appendix 1 to part 24, the CD–1 National Bank Community Development (Part 24) Investments Form, to reflect the changes to the regulation. Definition of ‘‘Community and Economic Development Entity’’ (CEDE) (§ 24.2(c)) The interim final rule amended the definition of a CEDE in § 24.2(c) to implement the HERA change to the public welfare test. Thus, paragraph (c) of the interim final rule defined 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’’ (§ 24.2(g)) As discussed 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. The April 2008 final rule that implemented the FSRRA added a 4 73 FR 22216 (Apr. 24, 2008). Law 110–289, § 2503, 122 Stat. 2654, 2857–58 (July 30, 2008). 6 Id. (emphasis added). 7 73 FR 46532 (Aug. 11, 2008). 5 Public VerDate Nov<24>2008 14:33 Apr 06, 2009 Jkt 217001 Public Welfare Investments (§ 24.3) The interim final rule revised § 24.3, which authorizes national banks to make investments pursuant to section 24(Eleventh), to conform the wording of the regulation 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 revised the introductory language in § 24.6 to reflect the HERA changes and restored to the examples references to investments in ‘‘targeted redevelopment areas,’’ which were removed by the April 2008 FSRRA final rule. Comments on the Interim Final Rule The OCC’s interim final rule included a request for public comment on the changes implementing the HERA’s revisions to section 24(Eleventh). The comment period closed on September 10, 2008. The OCC received nine comments, seven of which addressed the interim final rule.8 The seven commenters unanimously supported the interim final rule. One commenter expressed concern that, because many of the examples of qualifying public investments listed in § 24.6 pertain to investments that benefit low- and moderate-income areas or individuals, the list of examples could be interpreted as a requirement for national banks to demonstrate that the primary beneficiaries of an investment are lowand moderate-income individuals or areas. The commenter asserted that such an interpretation would be inconsistent with the flexibility afforded by the § 24.3 public welfare investment 8 Two commenters objected to a separate and unrelated HERA provision that places restrictions on down payment assistance programs. The OCC is not authorized to implement this provision, and it was not the subject of this rulemaking action. PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 standard, which also permits investments in areas targeted by a governmental entity for redevelopment or investments that would be considered ‘‘qualified investments’’ under § 25.23 of the OCC’s Community Reinvestment Act (CRA) regulations. The commenter encouraged the OCC to clarify that the HERA changes to part 24 provide national banks with additional flexibility to make community development investments. We agree that § 24.6 serves as a nonexclusive list of examples that illustrate how a national bank may permissibly use its authority to make public welfare investments. The list cannot, and does not, restrict the express authorization in § 24.3, which, as the commenter noted, permits investments in areas targeted by a governmental entity for redevelopment or investments that would be considered ‘‘qualified investments’’ under § 25.23 of the CRA regulations. Moreover, to provide guidance to national banks and OCC bank examiners, the OCC provides detailed information about part 24 public welfare investments on its Web site at https://www.occ.gov/cdd/ pt24toppage.htm. If, after reviewing § 24.6 and OCC’s Web site, a national bank is still uncertain about whether a particular investment is permissible, the bank also may submit a prior approval request under § 24.5 and receive from the OCC a permissibility determination. Accordingly, the OCC has concluded that the list in § 24.6 need not include an example of each type of investment that part 24 and the statute permit. Accordingly, the OCC has determined that it is appropriate to adopt as final the interim final rule as originally published on August 11, 2008. Regulatory Flexibility Act Analysis 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 For the reasons set forth in the interim final rule,11 the OCC determined for good cause that the APA did not require general notice and public comment on 95 U.S.C. 601(2). U.S.C. 553(b)(B). 11 73 FR 46534 (Aug. 11, 2008). 10 5 E:\FR\FM\07APR1.SGM 07APR1 Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations the interim final rule and, therefore, did not publish a general notice of proposed rulemaking. Thus, the RFA, pursuant to 5 U.S.C. 601(2), does not apply to this final rule. Executive Order 12866 The OCC has concluded that this final rule is not a significant regulatory action under Executive Order 12866. The changes made by this 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 final rule does not meet any of the other standards for a significant regulatory action set forth in Executive Order 12866. Unfunded Mandates Reform Act of 1995 Determinations Section 202 of the Unfunded Mandates Reform Act of 1995, Pub. L. 104–4 (2 U.S.C. 1532) (Unfunded Mandates Act), requires that an agency prepare a budgetary impact statement before promulgating any final rule for VerDate Nov<24>2008 14:33 Apr 06, 2009 Jkt 217001 which a general notice of proposed rulemaking was published. As discussed above, the OCC determined for good cause that the APA did not require general notice and public comment on the interim final rule and, therefore, the OCC did not publish a general notice of proposed rulemaking. Accordingly, the final rule is not subject to section 202 of the Unfunded Mandates Act. Paperwork Reduction Act In accordance with the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3506), the OCC has reviewed the final rule and determined that it contains no collections of information as defined by the Paperwork Reduction Act. 15659 For the reasons set forth in the preamble, under the authority at 12 U.S.C. 24(Eleventh), 93a, 481 and 1818, the interim rule amending 12 CFR part 24, which was published at 73 FR 46532 on August 11, 2008, is adopted as final with the following change: ■ 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: ■ Authority: 12 U.S.C. 24(Eleventh), 93a, 481 and 1818. 2. Appendix 1 to Part 24 is revised to read as follows: ■ Lists 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. PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 APPENDIX 1 TO PART 24—CD–1— NATIONAL BANK COMMUNITY DEVELOPMENT (PART 24) INVESTMENTS BILLING CODE 4810–33–P E:\FR\FM\07APR1.SGM 07APR1 VerDate Nov<24>2008 Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations 14:33 Apr 06, 2009 Jkt 217001 PO 00000 Frm 00026 Fmt 4700 Sfmt 4725 E:\FR\FM\07APR1.SGM 07APR1 ER07AP09.000</GPH> 15660 VerDate Nov<24>2008 14:33 Apr 06, 2009 Jkt 217001 PO 00000 Frm 00027 Fmt 4700 Sfmt 4725 E:\FR\FM\07APR1.SGM 07APR1 15661 ER07AP09.001</GPH> Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations VerDate Nov<24>2008 Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations 14:33 Apr 06, 2009 Jkt 217001 PO 00000 Frm 00028 Fmt 4700 Sfmt 4725 E:\FR\FM\07APR1.SGM 07APR1 ER07AP09.002</GPH> 15662 VerDate Nov<24>2008 14:33 Apr 06, 2009 Jkt 217001 PO 00000 Frm 00029 Fmt 4700 Sfmt 4725 E:\FR\FM\07APR1.SGM 07APR1 15663 ER07AP09.003</GPH> Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations 15664 Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations Dated: March 31, 2009. John C. Dugan, Comptroller of the Currency. [FR Doc. E9–7861 Filed 4–6–09; 8:45 am] VerDate Nov<24>2008 15:05 Apr 06, 2009 Jkt 217001 PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 E:\FR\FM\07APR1.SGM 07APR1 ER07AP09.004</GPH> BILLING CODE 4810–33–C Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2009–0313; Directorate Identifier 2008–NM–144–AD; Amendment 39–15769; AD 2008–26–03] RIN 2120–AA64 Airworthiness Directives; Bombardier Model DHC–8–102, DHC–8–103, DHC– 8–106, DHC–8–201, DHC–8–202, DHC– 8–301, DHC–8–311, and DHC–8–315 Airplanes Equipped With a Cockpit Door Electronic Strike System Installed in Accordance With Supplemental Type Certificate (STC) ST02014NY AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule; request for comments. SUMMARY: This document publishes in the Federal Register an amendment adopting airworthiness directive (AD) 2008–26–03. This AD requires modifying the electronic strike system of the cockpit door. This AD results from a report indicating that the equipment is defective. We are issuing this AD to prevent failure of this equipment, which could compromise flight safety. DATES: This AD becomes effective April 13, 2009 to all persons. We must receive comments on this AD by May 7, 2009. ADDRESSES: You may send comments by any of the following methods: • Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments. • Fax: 202–493–2251. • Mail: U.S. Department of Transportation, Docket Operations, M– 30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue, SE., Washington, DC 20590. • Hand Delivery: U.S. Department of Transportation, Docket Operations, M– 30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. Examining the AD Docket You may examine the AD docket on the Internet at https:// www.regulations.gov; or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this AD, the regulatory evaluation, any comments received, and VerDate Nov<24>2008 15:05 Apr 06, 2009 Jkt 217001 other information. The street address for the Docket Office (telephone 800–647– 5527) is in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. FOR FURTHER INFORMATION CONTACT: Fabio Buttitta, Aerospace Engineer, Systems and Flight Test Branch, ANE– 171, FAA, New York Aircraft Certification Office, 1600 Stewart Avenue, Suite 410, Westbury, New York 11590; telephone (516) 228–7303; fax (516) 794–5531. SUPPLEMENTARY INFORMATION: Discussion Transport Canada Civil Aviation (TCCA), which is the airworthiness authority for Canada, notified us that an unsafe condition may exist on Bombardier Model DHC–8–102, DHC– 8–103, DHC–8–106, DHC–8–201, DHC– 8–202, DHC–8–301, DHC–8–311, and DHC–8–315 airplanes equipped with a cockpit door electronic strike system installed in accordance with supplemental type certificate (STC) SA03–70 issue No. 1 or issue No. 2 (which is equivalent to STC ST02014NY). TCCA advises that the electronic strike system of the cockpit door is defective. (STC SA03–70 issue No. 3 incorporates the enhanced security measures for these doors.) Defective equipment, if not corrected, could compromise flight safety. Transport Canada Civil Aviation (TCCA) issued Canadian airworthiness directive CF–2008–26R1, dated August 15, 2008 (referred to after this as the Mandatory Continuing Airworthiness Information or ‘‘MCAI’’) to ensure the continued airworthiness of these airplanes in Canada. FAA’s Determination and Requirements of this AD This product has been approved by the aviation authority of another country, and is approved for operation in the United States. Pursuant to our bilateral agreement with the State of Design Authority, we have been notified of the unsafe condition described in the MCAI referenced above. We are issuing this AD because we evaluated all pertinent information and determined an unsafe condition exists and is likely to exist or develop on other products of the same type design. Therefore, we are issuing AD 2008– 26–03 to prevent failure of the electronic strike system, which could compromise flight safety. This AD requires modifying the electronic strike system of the cockpit door in accordance with a method approved by the Manager, New York Aircraft Certification Office (ACO), FAA. PO 00000 Frm 00031 Fmt 4700 Sfmt 4700 15665 None of the airplanes affected by this action are on the U.S. Register. Therefore, providing notice and opportunity for public comment is unnecessary before this AD is issued, and this AD may be made effective in less than 30 days after it is published in the Federal Register. However, this rule is necessary to ensure that the described unsafe condition is addressed if any of these products are placed on the U.S. Register in the future. The AD is hereby published in the Federal Register as an amendment to section 39.13 of the Federal Aviation Regulations (14 CFR 39.13) to make it effective to all persons. Comments Invited This AD is a final rule that involves requirements affecting flight safety, and we did not provide you with notice and an opportunity to provide your comments before it becomes effective. However, we invite you to send any written data, views, or arguments about this AD. Send your comments to an address listed under the ADDRESSES section. Include ‘‘Docket No. FAA– 2009–0313; Directorate Identifier 2008– NM–144–AD’’ at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this AD. We will consider all comments received by the closing date and may amend this AD because of those comments. We will post all comments we receive, without change, to https:// www.regulations.gov, including any personal information you provide. We will also post a report summarizing each substantive verbal contact we receive about this AD. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA’s authority to issue rules on aviation safety. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency’s authority. We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701, ‘‘General requirements.’’ Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation E:\FR\FM\07APR1.SGM 07APR1

Agencies

[Federal Register Volume 74, Number 65 (Tuesday, April 7, 2009)]
[Rules and Regulations]
[Pages 15657-15665]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-7861]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 24

[Docket ID OCC-2009-0006]
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: Final rule.

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

SUMMARY: The Office of the Comptroller of the Currency (OCC) is 
adopting in final form and without change the interim final rule, 
issued on August 11, 2008, which implemented the statutory change to 
national banks' community development investment authority made in the 
Housing and Economic Recovery Act of 2008 (HERA). The OCC also is 
revising Appendix 1 to part 24, the CD-1 National Bank Community 
Development (Part 24) Investments Form, to make technical changes that 
are consistent with the HERA provision and the revised regulation. 
Section 2503 of the HERA revised the community development investment 
authority in section 24(Eleventh) to restore a national bank's 
authority to make investments designed primarily to promote the public 
welfare.

DATES: Effective Date: April 7, 2009.

FOR FURTHER INFORMATION CONTACT: Stephen Van Meter, Assistant Director, 
Community and Consumer Law Division, (202) 874-5750; Michele Meyer, 
Assistant Director, Patrick T. Tierney, Senior Attorney, or Rebecca 
Smith, Attorney, Legislative and Regulatory Activities Division, (202) 
874-5090, Office of the Comptroller of the Currency, 250 E Street, SW., 
Washington, DC 20219.

SUPPLEMENTARY INFORMATION: 

Background

Introduction

    The Financial Services Regulatory Relief Act of 2006 (FSRRA) \1\ 
made a number of changes to 12 U.S.C. 24(Eleventh), the statute that 
authorizes national banks' community development investments.\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).'' \3\ On April 24, 2008, the OCC issued a 
final rule that implemented the

[[Page 15658]]

FSRRA's narrowing of the public welfare test.\4\
---------------------------------------------------------------------------

    \1\ Public Law 109-351, 120 Stat. 1966 (Oct. 13, 2006).
    \2\ See 12 CFR part 24 (2008) (implementing 12 U.S.C. 
24(Eleventh)).
    \3\ Public Law 109-351, Sec.  305, 120 Stat. at 1970-71 
(emphasis added).
    \4\ 73 FR 22216 (Apr. 24, 2008).
---------------------------------------------------------------------------

    On July 30, 2008, the President signed into law the HERA, which 
reinstated the pre-FSRRA 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).'' \6\
---------------------------------------------------------------------------

    \5\ Public Law 110-289, Sec.  2503, 122 Stat. 2654, 2857-58 
(July 30, 2008).
    \6\ Id. (emphasis added).
---------------------------------------------------------------------------

    On August 11, 2008, the OCC issued an interim final rule to 
implement section 2503 of the HERA.\7\ Under section 2503 of the HERA 
and the revisions made by the interim final rule, national banks and 
their subsidiaries are able to make a broader range of investments that 
will strengthen and stabilize communities, including communities 
affected by rising foreclosures. The OCC is now adopting the interim 
final rule in final form without change.
---------------------------------------------------------------------------

    \7\ 73 FR 46532 (Aug. 11, 2008).
---------------------------------------------------------------------------

Description of the Interim Final Rule

    The interim final rule made the following revisions to part 24 in 
order to implement the HERA's changes to the public welfare test.
Definition of ``Community and Economic Development Entity'' (CEDE) 
(Sec.  24.2(c))
    The interim final rule amended the definition of a CEDE in Sec.  
24.2(c) to implement the HERA change to the public welfare test. Thus, 
paragraph (c) of the interim final rule defined 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 discussed 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. 
The April 2008 final rule that implemented the FSRRA added a definition 
of ``benefiting primarily low and moderate-income areas or 
individuals.'' Consistent with the HERA change to section 24(Eleventh), 
the August 2008 interim final rule removed the definition of 
``benefiting primarily low- and moderate-income areas or individuals'' 
from part 24.
Public Welfare Investments (Sec.  24.3)
    The interim final rule revised Sec.  24.3, which authorizes 
national banks to make investments pursuant to section 24(Eleventh), to 
conform the wording of the regulation 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 revised the introductory language 
in Sec.  24.6 to reflect the HERA changes and restored to the examples 
references to investments in ``targeted redevelopment areas,'' which 
were removed by the April 2008 FSRRA 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 revised Appendix 1 to part 24, the CD-1 
National Bank Community Development (Part 24) Investments Form, to 
reflect the changes to the regulation.

Comments on the Interim Final Rule

    The OCC's interim final rule included a request for public comment 
on the changes implementing the HERA's revisions to section 
24(Eleventh). The comment period closed on September 10, 2008. The OCC 
received nine comments, seven of which addressed the interim final 
rule.\8\ The seven commenters unanimously supported the interim final 
rule. One commenter expressed concern that, because many of the 
examples of qualifying public investments listed in Sec.  24.6 pertain 
to investments that benefit low- and moderate-income areas or 
individuals, the list of examples could be interpreted as a requirement 
for national banks to demonstrate that the primary beneficiaries of an 
investment are low- and moderate-income individuals or areas. The 
commenter asserted that such an interpretation would be inconsistent 
with the flexibility afforded by the Sec.  24.3 public welfare 
investment standard, which also permits investments in areas targeted 
by a governmental entity for redevelopment or investments that would be 
considered ``qualified investments'' under Sec.  25.23 of the OCC's 
Community Reinvestment Act (CRA) regulations. The commenter encouraged 
the OCC to clarify that the HERA changes to part 24 provide national 
banks with additional flexibility to make community development 
investments.
---------------------------------------------------------------------------

    \8\ Two commenters objected to a separate and unrelated HERA 
provision that places restrictions on down payment assistance 
programs. The OCC is not authorized to implement this provision, and 
it was not the subject of this rulemaking action.
---------------------------------------------------------------------------

    We agree that Sec.  24.6 serves as a non-exclusive list of examples 
that illustrate how a national bank may permissibly use its authority 
to make public welfare investments. The list cannot, and does not, 
restrict the express authorization in Sec.  24.3, which, as the 
commenter noted, permits investments in areas targeted by a 
governmental entity for redevelopment or investments that would be 
considered ``qualified investments'' under Sec.  25.23 of the CRA 
regulations. Moreover, to provide guidance to national banks and OCC 
bank examiners, the OCC provides detailed information about part 24 
public welfare investments on its Web site at https://www.occ.gov/cdd/pt24toppage.htm. If, after reviewing Sec.  24.6 and OCC's Web site, a 
national bank is still uncertain about whether a particular investment 
is permissible, the bank also may submit a prior approval request under 
Sec.  24.5 and receive from the OCC a permissibility determination. 
Accordingly, the OCC has concluded that the list in Sec.  24.6 need not 
include an example of each type of investment that part 24 and the 
statute permit.
    Accordingly, the OCC has determined that it is appropriate to adopt 
as final the interim final rule as originally published on August 11, 
2008.

Regulatory Flexibility Act Analysis

    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).
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    For the reasons set forth in the interim final rule,\11\ the OCC 
determined for good cause that the APA did not require general notice 
and public comment on

[[Page 15659]]

the interim final rule and, therefore, did not publish a general notice 
of proposed rulemaking. Thus, the RFA, pursuant to 5 U.S.C. 601(2), 
does not apply to this final rule.
---------------------------------------------------------------------------

    \11\ 73 FR 46534 (Aug. 11, 2008).
---------------------------------------------------------------------------

Executive Order 12866

    The OCC has concluded that this final rule is not a significant 
regulatory action under Executive Order 12866. The changes made by this 
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 final rule does not meet any of the other 
standards for a significant regulatory action set forth in Executive 
Order 12866.

Unfunded Mandates Reform Act of 1995 Determinations

    Section 202 of the Unfunded Mandates Reform Act of 1995, Pub. L. 
104-4 (2 U.S.C. 1532) (Unfunded Mandates Act), requires that an agency 
prepare a budgetary impact statement before promulgating any final rule 
for which a general notice of proposed rulemaking was published. As 
discussed above, the OCC determined for good cause that the APA did not 
require general notice and public comment on the interim final rule 
and, therefore, the OCC did not publish a general notice of proposed 
rulemaking. Accordingly, the final rule is not subject to section 202 
of the Unfunded Mandates Act.

Paperwork Reduction Act

    In accordance with the requirements of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3506), the OCC has reviewed the final rule and 
determined that it contains no collections of information as defined by 
the Paperwork Reduction Act.

Lists 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.

0
For the reasons set forth in the preamble, under the authority at 12 
U.S.C. 24(Eleventh), 93a, 481 and 1818, the interim rule amending 12 
CFR part 24, which was published at 73 FR 46532 on August 11, 2008, is 
adopted as final with the following change:

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. Appendix 1 to Part 24 is revised 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: March 31, 2009.
John C. Dugan,
Comptroller of the Currency.
 [FR Doc. E9-7861 Filed 4-6-09; 8:45 am]
BILLING CODE 4810-33-C
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