Removal of Transferred OTS Regulations Regarding Possession by Conservators and Receivers for Federal and State Savings Associations, 45380-45383 [2014-18262]

Download as PDF 45380 Federal Register / Vol. 79, No. 150 / Tuesday, August 5, 2014 / Proposed Rules emcdonald on DSK67QTVN1PROD with PROPOSALS 1217:2009 5 and ISO 5389:2005,6 which address the testing of displacement and turbo compressors, respectively, would be appropriate for rating gas compressors. DOE also requests information on other applicable test procedures it should consider along with any deficiencies or issues that would need to be addressed prior to adopting a regulation mandating a particular test procedure. (8) DOE requests feedback regarding any safety issues, regulations, codes, or standards (e.g., National Fire Protection Association requirements) that must be considered in the manufacture, testing, and use of gas compressors. (9) DOE seeks information on any voluntary efforts by manufacturers that are already in place to improve the energy efficiency of gas compressors and what type of future voluntary efforts to improve efficiency, if any, are likely to occur in the near future. (10) DOE seeks information regarding whether there are particular characteristics that would readily distinguish an ‘‘air compressor’’ from a ‘‘gas compressor’’ and whether those characteristics play any role with respect to the energy efficiency performance of these two categories of compressors. (11) DOE requests comment on the market for natural gas compressors, and how they are marketed, sold, shipped, and assembled. III. Public Participation DOE invites all interested parties to submit in writing by the date specified previously in the DATES section of this RFI, comments and information on matters addressed in this notice and on other matters relevant to DOE’s consideration of gas compressors. DOE considers public participation to be a very important part of the process for developing test procedures. DOE actively encourages the participation and interaction of the public during the comment period at each stage of the rulemaking process. Interactions with and between members of the public provide a balanced discussion of the issues and assist DOE in the rulemaking process. Anyone who wishes to be added to the DOE mailing list to receive future notices and information about this rulemaking should contact Ms. Brenda Edwards at (202) 586–2945, or 5 International Organization for Standardization (ISO), ISO 1217, Displacement compressors— Acceptance tests, International Organization for Standardization (ISO), 2009. 6 International Organization for Standardization (ISO), ISO 5389, Turbocompressors—Performance test code, International Organization for Standardization (ISO), 2005. VerDate Mar<15>2010 17:23 Aug 04, 2014 Jkt 232001 via email at Brenda.Edwards@ ee.doe.gov. Issued in Washington, DC, on July 28, 2014. Kathleen B. Hogan, Deputy Assistant Secretary, Energy Efficiency and Renewable Energy. [FR Doc. 2014–18348 Filed 8–4–14; 8:45 am] BILLING CODE 6450–01–P FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 390 RIN 3064–AE17 Transferred OTS Regulations Regarding Possession by Conservators and Receivers for Federal and State Savings Associations. Federal Deposit Insurance Corporation. ACTION: Notice of proposed rulemaking. AGENCY: On July 21, 2014, the Federal Deposit Insurance Corporation (FDIC) caused a document entitled ‘‘Transferred OTS Regulations Regarding Possession by Conservators and Receivers for Federal and State Savings Associations’’ to be published in the Federal Register. The effect of this publication was to give notice of a proposed rulemaking to rescind and remove regulations regarding possession by conservators and receivers for federal and state savings associations, which are no longer necessary in light of or contradict provisions of the Federal Deposit Insurance Act and are not in accordance with FDIC practice and procedures. It has come to the attention of FDIC that the document submitted to the Federal Register was an early draft of the notice and not the final version approved by FDIC Board of Directors. FDIC is, therefore, withdrawing the document published July 21, 2014, and publishing the correct version elsewhere in the Federal Register today. DATES: The notice of proposed rulemaking published on July 21, 2014 at 79 FR 42235 is withdrawn as of July 29, 2014. FOR FURTHER INFORMATION CONTACT: Frank C. Campagna, Associate Director, Receivership Operations, Division of Resolutions and Receiverships (972) 761–8025 or FrCampagna@FDIC.gov; Manuel E. Cabeza, Counsel, Legal Division (703) 562–2434 or mcabeza@ fdic.gov; or Shane Kiernan, Counsel, Legal Division (703) 562–2632 or skiernan@fdic.gov. SUMMARY: PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 Section 316(b)(3) of the Dodd-Frank Act 1 provides that the former OTS’s regulations will continue in effect until they are modified, terminated, set aside, or superseded in accordance with applicable law. After careful review of subpart N of part 390, the FDIC proposes that it be rescinded and removed because it is unnecessary, or because it prescribes actions that are duplicative of actions taken by the OCC or state chartering authority. The FDIC believes that the provisions of the FDI Act and the FDIC’s existing policies and procedures sufficiently address the provision of notice of appointment and the authority to take possession of, and exercise control over, the assets of a failed institution, including insured Federal and State savings associations. The complete history and background for the FDIC’s removal and rescission of the subpart is included in the notice of proposed rulemaking published elsewhere in today’s Federal Register. SUPPLEMENTARY INFORMATION: Dated at Washington, DC, this 29th day of July, 2014. Federal Deposit Insurance Corporation. Robert E. Feldman, Executive Secretary. [FR Doc. 2014–18261 Filed 8–4–14; 8:45 am] BILLING CODE 6714–01–P FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 390 RIN 3064–AE17 Removal of Transferred OTS Regulations Regarding Possession by Conservators and Receivers for Federal and State Savings Associations Federal Deposit Insurance Corporation. ACTION: Notice of proposed rulemaking. AGENCY: The Federal Deposit Insurance Corporation (FDIC) proposes to rescind and remove regulations regarding possession by conservators and receivers for federal and state savings associations, which are no longer necessary in light of or contradict provisions of the Federal Deposit Insurance Act and are not in accordance with FDIC practice and procedures. The regulations were included in the regulations that were transferred to the FDIC from the Office of Thrift Supervision (OTS) on July 21, 2011, in connection with the implementation of applicable provisions of Title III of the SUMMARY: 1 12 E:\FR\FM\05AUP1.SGM U.S.C. 5414(c). 05AUP1 Federal Register / Vol. 79, No. 150 / Tuesday, August 5, 2014 / Proposed Rules Dodd-Frank Wall Street Reform and Consumer Protection Act. DATES: Comments must be received on or before October 6, 2014. ADDRESSES: You may submit comments by any of the following methods: • FDIC Web site: http://www.fdic.gov/ regulations/laws/federal. Follow instructions for submitting comments on the agency Web site. • FDIC Email: Comments@fdic.gov. Include RIN 3064–AE17 in the subject line of the message. • FDIC Mail: Robert E. Feldman, Executive Secretary, Attention: Comments, Federal Deposit Insurance Corporation, 550 17th Street NW., Washington, DC 20429. • Hand Delivery to FDIC: Comments may be hand-delivered to the guard station at the rear of the 550 17th Street Building (located on F Street) on business days between 7 a.m. and 5 p.m. Please note: All comments received will be posted generally without change to http://www.fdic.gov/regulations/laws/ federal/including any personal information provided. FOR FURTHER INFORMATION CONTACT: Frank C. Campagna, Associate Director, Receivership Operations, Division of Resolutions and Receiverships (972) 761–8025 or FrCampagna@FDIC.gov; Manuel E. Cabeza, Counsel, Legal Division (703) 562–2434 or mcabeza@ fdic.gov; or Shane Kiernan, Counsel, Legal Division (703) 562–2632 or skiernan@fdic.gov. SUPPLEMENTARY INFORMATION: emcdonald on DSK67QTVN1PROD with PROPOSALS I. Background The Dodd-Frank Act The Dodd-Frank Wall Street Reform and Consumer Protection Act (‘‘DoddFrank Act’’),1 signed into law on July 21, 2010, provided for a substantial reorganization of the regulation of State and Federal savings associations and their holding companies. Beginning July 21, 2011, the transfer date established by section 311 of the Dodd-Frank Act,2 the powers, duties, and functions formerly performed by the OTS were divided among the FDIC as to State savings associations, the Office of Comptroller of the Currency (‘‘OCC’’) as to Federal savings associations, and the Board of Governors of the Federal Reserve System (‘‘FRB’’) as to savings and loan holding companies. Section 316(b) of the Dodd-Frank Act 3 provides the manner of treatment for all orders, resolutions, determinations, regulations, and other advisory materials, that were issued, made, prescribed, or allowed to become effective by the OTS. The section provides that if such advisory materials were in effect on the day before the transfer date, they continue in effect and are enforceable by or against the appropriate successor agency until they are modified, terminated, set aside, or superseded in accordance with applicable law by such successor agency, by any court of competent jurisdiction, or by operation of law. Section 316(c) of the Dodd-Frank Act 4 further directed the FDIC and the OCC to consult with one another and to publish a list of the continued OTS regulations that would be enforced by the FDIC and the OCC respectively. On June 14, 2011 the FDIC’s Board of Directors approved a ‘‘List of OTS Regulations to be Enforced by the OCC and the FDIC Pursuant to the DoddFrank Wall Street Reform and Consumer Protection Act.’’ This list was published by the FDIC and the OCC as a Joint Notice in the Federal Register on July 6, 2011.5 FDIC’s Authority Although section 312(b)(2)(B)(i)(II) of the Dodd-Frank Act 6 granted the OCC rulemaking authority relating to both State and Federal savings associations, nothing in the Dodd-Frank Act affected the FDIC’s existing authority to issue regulations under the Federal Deposit Insurance Act (the ‘‘FDI Act’’) 7 and other laws as the ‘‘appropriate Federal banking agency.’’ Section 312(c) of the Dodd-Frank Act amended section 3(q) of the FDI Act 8 and designated the FDIC as the ‘‘appropriate Federal banking agency’’ for State savings associations. As a result, when the FDIC acts as the designated ‘‘appropriate Federal banking agency’’ for State savings associations, as it does here, the FDIC is authorized to issue, modify and rescind regulations involving such associations. As noted, on June 14, 2011, the FDIC’s Board of Directors reissued and redesignated certain regulations promulgated by the former OTS. These transferred OTS regulations were published as FDIC interim rules in the Federal Register on August 5, 2011.9 When it republished the transferred OTS regulations as new FDIC regulations, the FDIC specifically noted that its staff would evaluate the transferred OTS rules and might later U.S.C. 5414(c). FR 39247 (July 6, 2011). 6 12 U.S.C. 5412(b)(2)(B)(i)(II). 7 12 U.S.C. 1811, et seq. 8 12 U.S.C. 1813(q). 9 76 FR 47652 (August 5, 2011). Law 111–203, 12 U.S.C. 5301, et seq. (2010). 2 12 U.S.C. 5411. 3 12 U.S.C. 5414(b). VerDate Mar<15>2010 17:23 Aug 04, 2014 Jkt 232001 recommend incorporating the transferred OTS regulations into other FDIC rules, amending them, or rescinding them, as appropriate. One of the regulations transferred to the FDIC set forth procedures to be followed by conservators and receivers for Federal and State savings associations upon taking possession of said entities and for providing notice of appointment. This OTS regulation, formerly found at 12 CFR part 558, was transferred to the FDIC with only nominal changes and is now sections 390.240 and 390.241 in subpart N. The FDIC’s authority to act as conservator or receiver and its powers and duties in those roles are set forth in the FDI Act 10 and in regulations found in 12 CFR. part 360. The Board has delegated authority to staff to establish policies and procedures for carrying out receivership operations. The FDI Act and the policies and procedures implemented and followed by FDIC staff subsume the responsibilities set forth in subpart N.11 II. The Proposal Section 316(b)(3) of the Dodd-Frank Act 12 provides that the former OTS’s regulations will continue in effect until they are modified, terminated, set aside, or superseded in accordance with applicable law. After careful review of subpart N, the FDIC proposes that it be rescinded and removed because it is unnecessary, or because it prescribes actions that are duplicative of actions taken by the OCC or state chartering authority. The FDIC believes that the provisions of the FDI Act and the FDIC’s existing policies and procedures sufficiently address the provision of notice of appointment and the authority to take possession of, and exercise control over, the assets of a failed institution, including insured Federal and State savings associations. 12 CFR 390.240—Procedure Upon Taking Possession The FDIC interim rule found at 12 CFR 390.240 (‘‘section 390.240’’) is the redesignation of the OTS regulation outlining procedures to be followed by conservators and receivers for Federal and State savings associations for taking possession of said entities upon appointment. The FDIC is proposing that section 390.240 be rescinded and removed because it is unnecessary. Paragraph (a) requires the conservator or receiver to take possession of the failed 4 12 5 76 1 Public 45381 PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 10 12 U.S.C. 1811, et seq. policies and procedures include the FDIC Division of Resolution and Receivership’s Failed Financial Institution Closing Manual. 12 12 U.S.C. 5414(c). 11 Such E:\FR\FM\05AUP1.SGM 05AUP1 45382 Federal Register / Vol. 79, No. 150 / Tuesday, August 5, 2014 / Proposed Rules emcdonald on DSK67QTVN1PROD with PROPOSALS institution’s principal office in accordance with the terms of the appointment. FDIC’s procedure already provides that it takes coordinated simultaneous possession of all locations from which a failed institution operates. Moreover, the FDIC’s powers and duties as conservator or receiver are set forth in the FDI Act, not pursuant to the ‘‘terms of the . . . appointment.’’ Paragraphs (b)(1) and (b)(5), respectively, provide that the conservator or receiver shall immediately take possession of the institution’s books, records, and assets, and shall succeed to rights, titles, powers and privileges of the savings association and its stockholders, members, account holders, depositors, officers, and directors. These provisions are redundant of the FDI Act, which already provides that the FDIC succeeds to ‘‘all rights, titles, powers, and privileges of the insured depository institution, and of any stockholder, member, accountholder, depositor, officer, or director of such institution with respect to the institution and the assets of the institution’’ when acting as conservator or receiver.13 Paragraphs (b)(2), (3), and (4), respectively, instruct the conservator or receiver to ‘‘notify in writing, served personally or by registered mail or telegraph’’ all parties known to be holding or in possession of assets of the failed institution that the conservator or receiver has succeeded to all rights, powers and privileges of the failed institution; file a statement with the Executive Secretary that the conservator or receiver took possession of the failed institution; and post a notice on the door of the principal and other offices of the failed institution in the form, if any, prescribed by the OCC or state bank supervisor. For three reasons, these provisions are unnecessary given existing FDIC policies and procedures. First, the FDIC’s practice is to demand the return of assets of the failed institution in whatever manner and form that is appropriate under the circumstances. Second, the Executive Secretary is provided with a copy of all closing documents by FDIC staff. Third, the OCC or state bank supervisor itself posts its order closing the institution on the door of the principal office. 12 CFR 390.241—Notice of Appointment The FDIC interim rule found at 12 CFR 390.241 (‘‘section 390.241’’) is the redesignation of the OTS regulation outlining procedures for giving notice of the appointment of a conservator or 13 12 U.S.C. 1821(d)(2)(A). VerDate Mar<15>2010 17:23 Aug 04, 2014 Jkt 232001 receiver for a Federal or State savings association. The FDIC is proposing that section 390.241 be rescinded and removed because it is unnecessary. Specifically, paragraph (a) requires the FDIC to designate the persons or entities who are to: (1) Give notice of the appointment ‘‘to any officer or employee who is present in and appears to be in charge at the principal office of the savings association;’’ 14 (2) serve a copy of the order of appointment by (i) ‘‘leaving a certified copy of the order of appointment at the principal office of the savings association,’’ 15 or (ii) ‘‘handing a certified copy of the order of appointment to the previous conservator . . . or the officer or employee of the savings association . . . who is present in and appears to be in charge at the principal office of the savings association;’’ 16 and (3) file with the Executive Secretary of the FDIC a statement that includes the date and time that notice of the appointment was given and service of the order of appointment was made.’’ 17 It is not necessary to include these provisions among the FDIC’s regulations because the OCC or state chartering authority is responsible for providing or serving notice of the appointment of the FDIC as conservator or receiver on a Federal or State savings association. Further, the FDIC’s Executive Secretary maintains records of the appointment of the FDIC as conservator or receiver. Paragraph (b), which instructs the FDIC to cause a notice of the appointment of the conservator or receiver to be published in the Federal Register, is unnecessary because the FDIC causes such a publication regarding any institution for which it is appointed as conservator or receiver in accordance with its policy and procedures. For these reasons, the FDIC proposes that subpart N should be rescinded and removed. Rescinding subpart N will serve to streamline the FDIC’s rules, prevent confusion and eliminate unnecessary regulations. III. Request for Comments The FDIC invites comments on all aspects of the proposal. Written comments must be received by the FDIC no later than October 6, 2014. IV. Regulatory Analysis and Procedure A. The Paperwork Reduction Act In accordance with the requirements of the Paperwork Reduction Act (44 U.S.C. 3501, et seq.) (‘‘PRA’’), the FDIC may not conduct or sponsor, and the 14 12 CFR 390.241(a)(1). CFR 390.241(a)(2)(i). 16 12 CFR 390.241(a)(2)(ii). 17 12 CFR 390.241(a)(3). 15 12 PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (‘‘OMB’’) control number. Removing subpart N will not revise any existing information collections pursuant to the PRA. Consequently, FDIC has not submitted any information collection request to the OMB for review. B. The Regulatory Flexibility Act The Regulatory Flexibility Act, 5 U.S.C. 601, et seq. (‘‘RFA’’), requires that each federal agency either (1) certify that a proposed rule would not, if adopted in final form, have a significant economic impact on a substantial number of small entities or (2) prepare an initial regulatory flexibility analysis of the rule and publish the analysis for comment. Rescinding subpart N will leave the FDI Act as the sole source of the FDIC’s authority to act as conservator or receiver for an insured depository institution and does not impose any obligations or restrictions on banking organizations, including small banking organizations. On this basis, the FDIC certifies that this proposal, if it is adopted in final form, would not have a significant impact on a substantial number of small entities within the meaning of those terms as used in the RFA. C. Plain Language Section 722 of the Gramm-LeachBliley Act, Public Law 106–102, 113 Stat. 1338, 1471, 12 U.S.C. 4809, requires each Federal banking agency to use plain language in all of its proposed and final rules published after January 1, 2000. As a federal banking agency subject to the provisions of this section, the FDIC has sought to present the proposal to rescind Subpart N in a simple and straightforward manner. The FDIC invites comments on whether the proposal is clearly stated and effectively organized, and how the FDIC might make the proposal easier to understand. D. The Economic Growth and Regulatory Paperwork Reduction Act. Under section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (‘‘EGRPRA’’), the FDIC is required to review all of its regulations, at least once every 10 years, in order to identify any outdated or otherwise unnecessary regulations imposed on insured institutions. The FDIC completed the last comprehensive review of its regulations under EGRPRA in 2006 and is commencing the next decennial review. The action taken on this rule will be included as part of the E:\FR\FM\05AUP1.SGM 05AUP1 Federal Register / Vol. 79, No. 150 / Tuesday, August 5, 2014 / Proposed Rules EGRPRA review that is currently under way. As part of that review, the FDIC invites comments concerning whether the proposal would impose any outdated or unnecessary regulatory requirements on insured depository institutions. If you provide such comments, please be specific and provide alternatives whenever appropriate. List of Subjects in Part 390 Banks and banking; Savings Associations. Authority and Issuance For the reasons stated in the preamble and under the authority of 12 U.S.C. 5412, the Board of Directors of the Federal Deposit Insurance Corporation proposes to amend 12 CFR part 390 as follows: Subpart T also issued under 12 U.S.C. 1462a; 1463; 1464; 15 U.S.C. 78c; 78 l; 78m; 78n; 78w. Subpart U also issued under 12 U.S.C. 1462a; 1463; 1464; 15 U.S.C. 78c; 78 l; 78m; 78n; 78p; 78w; 78d–1; 7241; 7242; 7243; 7244; 7261; 7264; 7265. Subpart V also issued under 12 U.S.C. 3201–3208. Subpart W also issued under 12 U.S.C. 1462a; 1463; 1464; 15 U.S.C. 78c; 78 l; 78m; 78n; 78p; 78w. Subpart X also issued under 12 U.S.C. 1462; 1462a; 1463; 1464; 1828; 3331 et seq. Subpart Y also issued under 12 U.S.C. 1831o. Subpart Z also issued under 12 U.S.C. 1462; 1462a; 1463; 1464; 1828 (note). Subpart N—[Removed and Reserved] 2. Remove and reserve subpart N, consisting of §§ 390.240 through 390.241. ■ PART 390—REGULATIONS TRANSFERRED FROM THE OFFICE OF THRIFT SUPERVISION 1. The authority citation for part 390 is revised to read as follows: Dated at Washington, DC, this 15th day of July, 2014. By order of the Board of Directors. Federal Deposit Insurance Corporation. Robert E. Feldman, Executive Secretary. [FR Doc. 2014–18262 Filed 8–4–14; 8:45 am] emcdonald on DSK67QTVN1PROD with PROPOSALS ■ BILLING CODE 6714–01–P Authority: 12 U.S.C. 1819. Subpart A also issued under 12 U.S.C. 1820. Subpart B also issued under 12 U.S.C. 1818. Subpart C also issued under 5 U.S.C. 504; 554–557; 12 U.S.C. 1464; 1467; 1468; 1817; 1818; 1820; 1829; 3349, 4717; 15 U.S.C. 78 l; 78o–5; 78u–2; 28 U.S.C. 2461 note; 31 U.S.C. 5321; 42 U.S.C. 4012a. Subpart D also issued under 12 U.S.C. 1817; 1818; 1820; 15 U.S.C. 78 l. Subpart E also issued under 12 U.S.C. 1813; 1831m; 15 U.S.C. 78. Subpart F also issued under 5 U.S.C. 552; 559; 12 U.S.C. 2901 et seq. Subpart G also issued under 12 U.S.C. 2810 et seq., 2901 et seq.; 15 U.S.C. 1691; 42 U.S.C. 1981, 1982, 3601–3619. Subpart H also issued under 12 U.S.C. 1464; 1831y. Subpart I also issued under 12 U.S.C. 1831x. Subpart J also issued under 12 U.S.C. 1831p–1. Subpart L also issued under 12 U.S.C. 1831p–1. Subpart M also issued under 12 U.S.C. 1818. Subpart O also issued under 12 U.S.C. 1828. Subpart P also issued under 12 U.S.C. 1470; 1831e; 1831n; 1831p–1; 3339. Subpart Q also issued under 12 U.S.C. 1462; 1462a; 1463; 1464. Subpart R also issued under 12 U.S.C. 1463; 1464; 1831m; 1831n; 1831p–1. Subpart S also issued under 12 U.S.C. 1462; 1462a; 1463; 1464; 1468a; 1817; 1820; 1828; 1831e; 1831o; 1831p–1; 1881–1884; 3207; 3339; 15 U.S.C. 78b; 78 l; 78m; 78n; 78p; 78q; 78w; 31 U.S.C. 5318; 42 U.S.C. 4106. VerDate Mar<15>2010 17:23 Aug 04, 2014 Jkt 232001 DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2014–0532; Directorate Identifier 2014–CE–016–AD] RIN 2120–AA64 Airworthiness Directives; Pacific Aerospace Limited Airplanes Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Notice of proposed rulemaking (NPRM). AGENCY: We propose to adopt a new airworthiness directive (AD) for Pacific Aerospace Limited Models FU24–954 and FU24A–954 airplanes. This proposed AD results from mandatory continuing airworthiness information (MCAI) originated by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as cracking of control column at the wiring access hole, which could lead to loss of control. We are issuing this proposed AD to require actions to address the unsafe condition on these products. DATES: We must receive comments on this proposed AD by September 19, 2014. SUMMARY: PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 45383 You may send comments by any of the following methods: • Federal eRulemaking Portal: Go to http://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. For service information identified in this proposed AD, contact Pacific Aerospace Limited, Airport Road, Hamilton Private Bag 3027 Hamilton 3240, New Zealand; telephone: +64 7 843 6144; fax: +64 7 843 6134; email: pacific@aerospace.co.nz; Internet: http://www.aerospace.co.nz/. You may review this referenced service information at the FAA, Small Airplane Directorate, 901 Locust, Kansas City, Missouri 64106. For information on the availability of this material at the FAA, call (816) 329–4148. ADDRESSES: Examining the AD Docket You may examine the AD docket on the Internet at http:// www.regulations.gov by searching for and locating Docket No. FAA–2014– 0532; 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 proposed AD, the regulatory evaluation, any comments received, and 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: Karl Schletzbaum, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone: (816) 329–4123; fax: (816) 329–4090; email: karl.schletzbaum@ faa.gov. SUPPLEMENTARY INFORMATION: Comments Invited We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the ADDRESSES section. Include ‘‘Docket No. FAA–2014–0532; Directorate Identifier 2014–CE–016–AD’’ at the beginning of your comments. We specifically invite E:\FR\FM\05AUP1.SGM 05AUP1

Agencies

[Federal Register Volume 79, Number 150 (Tuesday, August 5, 2014)]
[Proposed Rules]
[Pages 45380-45383]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-18262]


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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 390

RIN 3064-AE17


Removal of Transferred OTS Regulations Regarding Possession by 
Conservators and Receivers for Federal and State Savings Associations

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Deposit Insurance Corporation (FDIC) proposes to 
rescind and remove regulations regarding possession by conservators and 
receivers for federal and state savings associations, which are no 
longer necessary in light of or contradict provisions of the Federal 
Deposit Insurance Act and are not in accordance with FDIC practice and 
procedures. The regulations were included in the regulations that were 
transferred to the FDIC from the Office of Thrift Supervision (OTS) on 
July 21, 2011, in connection with the implementation of applicable 
provisions of Title III of the

[[Page 45381]]

Dodd-Frank Wall Street Reform and Consumer Protection Act.

DATES: Comments must be received on or before October 6, 2014.

ADDRESSES: You may submit comments by any of the following methods:
     FDIC Web site: http://www.fdic.gov/regulations/laws/federal. Follow instructions for submitting comments on the agency Web 
site.
     FDIC Email: Comments@fdic.gov. Include RIN 3064-AE17 in 
the subject line of the message.
     FDIC Mail: Robert E. Feldman, Executive Secretary, 
Attention: Comments, Federal Deposit Insurance Corporation, 550 17th 
Street NW., Washington, DC 20429.
     Hand Delivery to FDIC: Comments may be hand-delivered to 
the guard station at the rear of the 550 17th Street Building (located 
on F Street) on business days between 7 a.m. and 5 p.m.
    Please note: All comments received will be posted generally without 
change to http://www.fdic.gov/regulations/laws/federal/including any 
personal information provided.

FOR FURTHER INFORMATION CONTACT: Frank C. Campagna, Associate Director, 
Receivership Operations, Division of Resolutions and Receiverships 
(972) 761-8025 or FrCampagna@FDIC.gov; Manuel E. Cabeza, Counsel, Legal 
Division (703) 562-2434 or mcabeza@fdic.gov; or Shane Kiernan, Counsel, 
Legal Division (703) 562-2632 or skiernan@fdic.gov.

SUPPLEMENTARY INFORMATION:

I. Background

The Dodd-Frank Act

    The Dodd-Frank Wall Street Reform and Consumer Protection Act 
(``Dodd-Frank Act''),\1\ signed into law on July 21, 2010, provided for 
a substantial reorganization of the regulation of State and Federal 
savings associations and their holding companies. Beginning July 21, 
2011, the transfer date established by section 311 of the Dodd-Frank 
Act,\2\ the powers, duties, and functions formerly performed by the OTS 
were divided among the FDIC as to State savings associations, the 
Office of Comptroller of the Currency (``OCC'') as to Federal savings 
associations, and the Board of Governors of the Federal Reserve System 
(``FRB'') as to savings and loan holding companies. Section 316(b) of 
the Dodd-Frank Act \3\ provides the manner of treatment for all orders, 
resolutions, determinations, regulations, and other advisory materials, 
that were issued, made, prescribed, or allowed to become effective by 
the OTS. The section provides that if such advisory materials were in 
effect on the day before the transfer date, they continue in effect and 
are enforceable by or against the appropriate successor agency until 
they are modified, terminated, set aside, or superseded in accordance 
with applicable law by such successor agency, by any court of competent 
jurisdiction, or by operation of law.
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    \1\ Public Law 111-203, 12 U.S.C. 5301, et seq. (2010).
    \2\ 12 U.S.C. 5411.
    \3\ 12 U.S.C. 5414(b).
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    Section 316(c) of the Dodd-Frank Act \4\ further directed the FDIC 
and the OCC to consult with one another and to publish a list of the 
continued OTS regulations that would be enforced by the FDIC and the 
OCC respectively. On June 14, 2011 the FDIC's Board of Directors 
approved a ``List of OTS Regulations to be Enforced by the OCC and the 
FDIC Pursuant to the Dodd-Frank Wall Street Reform and Consumer 
Protection Act.'' This list was published by the FDIC and the OCC as a 
Joint Notice in the Federal Register on July 6, 2011.\5\
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    \4\ 12 U.S.C. 5414(c).
    \5\ 76 FR 39247 (July 6, 2011).
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FDIC's Authority

    Although section 312(b)(2)(B)(i)(II) of the Dodd-Frank Act \6\ 
granted the OCC rulemaking authority relating to both State and Federal 
savings associations, nothing in the Dodd-Frank Act affected the FDIC's 
existing authority to issue regulations under the Federal Deposit 
Insurance Act (the ``FDI Act'') \7\ and other laws as the ``appropriate 
Federal banking agency.'' Section 312(c) of the Dodd-Frank Act amended 
section 3(q) of the FDI Act \8\ and designated the FDIC as the 
``appropriate Federal banking agency'' for State savings associations. 
As a result, when the FDIC acts as the designated ``appropriate Federal 
banking agency'' for State savings associations, as it does here, the 
FDIC is authorized to issue, modify and rescind regulations involving 
such associations.
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    \6\ 12 U.S.C. 5412(b)(2)(B)(i)(II).
    \7\ 12 U.S.C. 1811, et seq.
    \8\ 12 U.S.C. 1813(q).
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    As noted, on June 14, 2011, the FDIC's Board of Directors reissued 
and redesignated certain regulations promulgated by the former OTS. 
These transferred OTS regulations were published as FDIC interim rules 
in the Federal Register on August 5, 2011.\9\ When it republished the 
transferred OTS regulations as new FDIC regulations, the FDIC 
specifically noted that its staff would evaluate the transferred OTS 
rules and might later recommend incorporating the transferred OTS 
regulations into other FDIC rules, amending them, or rescinding them, 
as appropriate.
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    \9\ 76 FR 47652 (August 5, 2011).
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    One of the regulations transferred to the FDIC set forth procedures 
to be followed by conservators and receivers for Federal and State 
savings associations upon taking possession of said entities and for 
providing notice of appointment. This OTS regulation, formerly found at 
12 CFR part 558, was transferred to the FDIC with only nominal changes 
and is now sections 390.240 and 390.241 in subpart N.
    The FDIC's authority to act as conservator or receiver and its 
powers and duties in those roles are set forth in the FDI Act \10\ and 
in regulations found in 12 CFR. part 360. The Board has delegated 
authority to staff to establish policies and procedures for carrying 
out receivership operations. The FDI Act and the policies and 
procedures implemented and followed by FDIC staff subsume the 
responsibilities set forth in subpart N.\11\
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    \10\ 12 U.S.C. 1811, et seq.
    \11\ Such policies and procedures include the FDIC Division of 
Resolution and Receivership's Failed Financial Institution Closing 
Manual.
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II. The Proposal

    Section 316(b)(3) of the Dodd-Frank Act \12\ provides that the 
former OTS's regulations will continue in effect until they are 
modified, terminated, set aside, or superseded in accordance with 
applicable law. After careful review of subpart N, the FDIC proposes 
that it be rescinded and removed because it is unnecessary, or because 
it prescribes actions that are duplicative of actions taken by the OCC 
or state chartering authority. The FDIC believes that the provisions of 
the FDI Act and the FDIC's existing policies and procedures 
sufficiently address the provision of notice of appointment and the 
authority to take possession of, and exercise control over, the assets 
of a failed institution, including insured Federal and State savings 
associations.
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    \12\ 12 U.S.C. 5414(c).
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12 CFR 390.240--Procedure Upon Taking Possession

    The FDIC interim rule found at 12 CFR 390.240 (``section 390.240'') 
is the redesignation of the OTS regulation outlining procedures to be 
followed by conservators and receivers for Federal and State savings 
associations for taking possession of said entities upon appointment. 
The FDIC is proposing that section 390.240 be rescinded and removed 
because it is unnecessary. Paragraph (a) requires the conservator or 
receiver to take possession of the failed

[[Page 45382]]

institution's principal office in accordance with the terms of the 
appointment. FDIC's procedure already provides that it takes 
coordinated simultaneous possession of all locations from which a 
failed institution operates. Moreover, the FDIC's powers and duties as 
conservator or receiver are set forth in the FDI Act, not pursuant to 
the ``terms of the . . . appointment.''
    Paragraphs (b)(1) and (b)(5), respectively, provide that the 
conservator or receiver shall immediately take possession of the 
institution's books, records, and assets, and shall succeed to rights, 
titles, powers and privileges of the savings association and its 
stockholders, members, account holders, depositors, officers, and 
directors. These provisions are redundant of the FDI Act, which already 
provides that the FDIC succeeds to ``all rights, titles, powers, and 
privileges of the insured depository institution, and of any 
stockholder, member, accountholder, depositor, officer, or director of 
such institution with respect to the institution and the assets of the 
institution'' when acting as conservator or receiver.\13\
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    \13\ 12 U.S.C. 1821(d)(2)(A).
---------------------------------------------------------------------------

    Paragraphs (b)(2), (3), and (4), respectively, instruct the 
conservator or receiver to ``notify in writing, served personally or by 
registered mail or telegraph'' all parties known to be holding or in 
possession of assets of the failed institution that the conservator or 
receiver has succeeded to all rights, powers and privileges of the 
failed institution; file a statement with the Executive Secretary that 
the conservator or receiver took possession of the failed institution; 
and post a notice on the door of the principal and other offices of the 
failed institution in the form, if any, prescribed by the OCC or state 
bank supervisor. For three reasons, these provisions are unnecessary 
given existing FDIC policies and procedures. First, the FDIC's practice 
is to demand the return of assets of the failed institution in whatever 
manner and form that is appropriate under the circumstances. Second, 
the Executive Secretary is provided with a copy of all closing 
documents by FDIC staff. Third, the OCC or state bank supervisor itself 
posts its order closing the institution on the door of the principal 
office.

12 CFR 390.241--Notice of Appointment

    The FDIC interim rule found at 12 CFR 390.241 (``section 390.241'') 
is the redesignation of the OTS regulation outlining procedures for 
giving notice of the appointment of a conservator or receiver for a 
Federal or State savings association. The FDIC is proposing that 
section 390.241 be rescinded and removed because it is unnecessary. 
Specifically, paragraph (a) requires the FDIC to designate the persons 
or entities who are to: (1) Give notice of the appointment ``to any 
officer or employee who is present in and appears to be in charge at 
the principal office of the savings association;'' \14\ (2) serve a 
copy of the order of appointment by (i) ``leaving a certified copy of 
the order of appointment at the principal office of the savings 
association,'' \15\ or (ii) ``handing a certified copy of the order of 
appointment to the previous conservator . . . or the officer or 
employee of the savings association . . . who is present in and appears 
to be in charge at the principal office of the savings association;'' 
\16\ and (3) file with the Executive Secretary of the FDIC a statement 
that includes the date and time that notice of the appointment was 
given and service of the order of appointment was made.'' \17\ It is 
not necessary to include these provisions among the FDIC's regulations 
because the OCC or state chartering authority is responsible for 
providing or serving notice of the appointment of the FDIC as 
conservator or receiver on a Federal or State savings association. 
Further, the FDIC's Executive Secretary maintains records of the 
appointment of the FDIC as conservator or receiver. Paragraph (b), 
which instructs the FDIC to cause a notice of the appointment of the 
conservator or receiver to be published in the Federal Register, is 
unnecessary because the FDIC causes such a publication regarding any 
institution for which it is appointed as conservator or receiver in 
accordance with its policy and procedures. For these reasons, the FDIC 
proposes that subpart N should be rescinded and removed. Rescinding 
subpart N will serve to streamline the FDIC's rules, prevent confusion 
and eliminate unnecessary regulations.
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    \14\ 12 CFR 390.241(a)(1).
    \15\ 12 CFR 390.241(a)(2)(i).
    \16\ 12 CFR 390.241(a)(2)(ii).
    \17\ 12 CFR 390.241(a)(3).
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III. Request for Comments

    The FDIC invites comments on all aspects of the proposal. Written 
comments must be received by the FDIC no later than October 6, 2014.

IV. Regulatory Analysis and Procedure

A. The Paperwork Reduction Act

    In accordance with the requirements of the Paperwork Reduction Act 
(44 U.S.C. 3501, et seq.) (``PRA''), the FDIC may not conduct or 
sponsor, and the respondent is not required to respond to, an 
information collection unless it displays a currently valid Office of 
Management and Budget (``OMB'') control number. Removing subpart N will 
not revise any existing information collections pursuant to the PRA. 
Consequently, FDIC has not submitted any information collection request 
to the OMB for review.

B. The Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601, et seq. (``RFA''), 
requires that each federal agency either (1) certify that a proposed 
rule would not, if adopted in final form, have a significant economic 
impact on a substantial number of small entities or (2) prepare an 
initial regulatory flexibility analysis of the rule and publish the 
analysis for comment. Rescinding subpart N will leave the FDI Act as 
the sole source of the FDIC's authority to act as conservator or 
receiver for an insured depository institution and does not impose any 
obligations or restrictions on banking organizations, including small 
banking organizations. On this basis, the FDIC certifies that this 
proposal, if it is adopted in final form, would not have a significant 
impact on a substantial number of small entities within the meaning of 
those terms as used in the RFA.

C. Plain Language

    Section 722 of the Gramm-Leach-Bliley Act, Public Law 106-102, 113 
Stat. 1338, 1471, 12 U.S.C. 4809, requires each Federal banking agency 
to use plain language in all of its proposed and final rules published 
after January 1, 2000. As a federal banking agency subject to the 
provisions of this section, the FDIC has sought to present the proposal 
to rescind Subpart N in a simple and straightforward manner. The FDIC 
invites comments on whether the proposal is clearly stated and 
effectively organized, and how the FDIC might make the proposal easier 
to understand.

D. The Economic Growth and Regulatory Paperwork Reduction Act.

    Under section 2222 of the Economic Growth and Regulatory Paperwork 
Reduction Act of 1996 (``EGRPRA''), the FDIC is required to review all 
of its regulations, at least once every 10 years, in order to identify 
any outdated or otherwise unnecessary regulations imposed on insured 
institutions. The FDIC completed the last comprehensive review of its 
regulations under EGRPRA in 2006 and is commencing the next decennial 
review. The action taken on this rule will be included as part of the

[[Page 45383]]

EGRPRA review that is currently under way. As part of that review, the 
FDIC invites comments concerning whether the proposal would impose any 
outdated or unnecessary regulatory requirements on insured depository 
institutions. If you provide such comments, please be specific and 
provide alternatives whenever appropriate.

List of Subjects in Part 390

    Banks and banking; Savings Associations.

Authority and Issuance

    For the reasons stated in the preamble and under the authority of 
12 U.S.C. 5412, the Board of Directors of the Federal Deposit Insurance 
Corporation proposes to amend 12 CFR part 390 as follows:

PART 390--REGULATIONS TRANSFERRED FROM THE OFFICE OF THRIFT 
SUPERVISION

0
1. The authority citation for part 390 is revised to read as follows:

    Authority: 12 U.S.C. 1819.
    Subpart A also issued under 12 U.S.C. 1820.
    Subpart B also issued under 12 U.S.C. 1818.
    Subpart C also issued under 5 U.S.C. 504; 554-557; 12 U.S.C. 
1464; 1467; 1468; 1817; 1818; 1820; 1829; 3349, 4717; 15 U.S.C. 78 
l; 78o-5; 78u-2; 28 U.S.C. 2461 note; 31 U.S.C. 5321; 42 U.S.C. 
4012a.
    Subpart D also issued under 12 U.S.C. 1817; 1818; 1820; 15 
U.S.C. 78 l.
    Subpart E also issued under 12 U.S.C. 1813; 1831m; 15 U.S.C. 78.
    Subpart F also issued under 5 U.S.C. 552; 559; 12 U.S.C. 2901 et 
seq.
    Subpart G also issued under 12 U.S.C. 2810 et seq., 2901 et 
seq.; 15 U.S.C. 1691; 42 U.S.C. 1981, 1982, 3601-3619.
    Subpart H also issued under 12 U.S.C. 1464; 1831y.
    Subpart I also issued under 12 U.S.C. 1831x.
    Subpart J also issued under 12 U.S.C. 1831p-1.
    Subpart L also issued under 12 U.S.C. 1831p-1.
    Subpart M also issued under 12 U.S.C. 1818.
    Subpart O also issued under 12 U.S.C. 1828.
    Subpart P also issued under 12 U.S.C. 1470; 1831e; 1831n; 1831p-
1; 3339.
    Subpart Q also issued under 12 U.S.C. 1462; 1462a; 1463; 1464.
    Subpart R also issued under 12 U.S.C. 1463; 1464; 1831m; 1831n; 
1831p-1.
    Subpart S also issued under 12 U.S.C. 1462; 1462a; 1463; 1464; 
1468a; 1817; 1820; 1828; 1831e; 1831o; 1831p-1; 1881-1884; 3207; 
3339; 15 U.S.C. 78b; 78 l; 78m; 78n; 78p; 78q; 78w; 31 U.S.C. 5318; 
42 U.S.C. 4106.
    Subpart T also issued under 12 U.S.C. 1462a; 1463; 1464; 15 
U.S.C. 78c; 78 l; 78m; 78n; 78w.
    Subpart U also issued under 12 U.S.C. 1462a; 1463; 1464; 15 
U.S.C. 78c; 78 l; 78m; 78n; 78p; 78w; 78d-1; 7241; 7242; 7243; 7244; 
7261; 7264; 7265.
    Subpart V also issued under 12 U.S.C. 3201-3208.
    Subpart W also issued under 12 U.S.C. 1462a; 1463; 1464; 15 
U.S.C. 78c; 78 l; 78m; 78n; 78p; 78w.
    Subpart X also issued under 12 U.S.C. 1462; 1462a; 1463; 1464; 
1828; 3331 et seq.
    Subpart Y also issued under 12 U.S.C. 1831o.
    Subpart Z also issued under 12 U.S.C. 1462; 1462a; 1463; 1464; 
1828 (note).

Subpart N--[Removed and Reserved]

0
2. Remove and reserve subpart N, consisting of Sec. Sec.  390.240 
through 390.241.

    Dated at Washington, DC, this 15th day of July, 2014.

    By order of the Board of Directors.
    Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2014-18262 Filed 8-4-14; 8:45 am]
BILLING CODE 6714-01-P