Proposed Rescission of Policy Statements, 51467-51469 [2019-20588]

Download as PDF Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Proposed Rules DEPARTMENT OF ENERGY 10 CFR Part 431 [EERE–2017–BT–STD–0021] RIN 1904–AD90 Energy Conservation Program: Energy Conservation Standards for Unfired Hot Water Storage Tanks Office of Energy Efficiency and Renewable Energy, Department of Energy. ACTION: Request for information; reopening of public comment period. AGENCY: On August 9, 2019, the U.S. Department of Energy (DOE) published a request for information (RFI) pertaining to the energy conservation standards for unfired hot water storage tanks. The RFI provided an opportunity for submitting written comments, data, and information by September 23, 2019. Prior to the end of the comment period for the RFI, DOE received a request from the Air-Conditioning, Heating and Refrigeration Institute (AHRI) on September 13, 2019 seeking additional time to analyze data, possibly conduct further testing, and prepare comments. In light of this request, DOE is reopening the comment period for an additional 30 days and announcing that decision in this document. DATES: The comment period for the RFI, published on August 9, 2019 (84 FR 39220), which closed on September 23, 2019, is hereby reopened and extended. DOE will accept written comments, data, and information in response to the RFI submitted no later than October 30, 2019. ADDRESSES: Interested persons are encouraged to submit comments using the Federal eRulemaking Portal at http://www.regulations.gov. Follow the instructions for submitting comments. Alternatively, interested persons may submit comments, identified by docket number EERE–2017–BT–STD–0021, by any of the following methods: 1. Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. 2. Email: UnfiredCommercialWH2017STD0021@ ee.doe.gov. Include the docket number EERE–2017–BT–STD–0021 in the subject line of the message. 3. Postal Mail: Appliance and Equipment Standards Program, U.S. Department of Energy, Building Technologies Office, Mailstop EE–5B, 1000 Independence Avenue SW, Washington, DC 20585–0121. If possible, please submit all items on a khammond on DSKJM1Z7X2PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 16:51 Sep 27, 2019 Jkt 247001 compact disc (‘‘CD’’), in which case it is not necessary to include printed copies. 4. Hand Delivery/Courier: Appliance and Equipment Standards Program, U.S. Department of Energy, Building Technologies Office, 950 L’Enfant Plaza, SW, 6th Floor, Washington, DC 20024. Telephone: (202) 287–1445. If possible, please submit all items on a CD, in which case it is not necessary to include printed copies. No telefacsimilies (faxes) will be accepted. Docket: The docket for this activity, which includes Federal Register notices, comments, and other supporting documents/materials, is available for review at http:// www.regulations.gov. All documents in the docket are listed in the http:// www.regulations.gov index. However, some documents listed in the index, such as those containing information that is exempt from public disclosure, may not be publicly available. The docket web page can be found at https://www.regulations.gov/ docket?D=EERE-2017-BT-STD-0021. The docket web page contains instructions on how to access all documents, including public comments, in the docket. FOR FURTHER INFORMATION CONTACT: Ms. Catherine Rivest, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies Office, EE–5B, 1000 Independence Avenue SW, Washington, DC 20585–0121. Telephone: (202) 586– 7335. Email: ApplianceStandardsQuestions@ ee.doe.gov. Mr. Eric Stas, U.S. Department of Energy, Office of the General Counsel, GC–33, 1000 Independence Avenue SW, Washington, DC 20585–0121. Telephone: (202) 586–5827. Email: Eric.Stas@hq.doe.gov. For further information on how to submit a comment, or review other public comments and the docket, contact the Appliance and Equipment Standards Program staff at (202) 586– 6636 or by email: ApplianceStandardsQuestions@ ee.doe.gov. DOE published a Request for Information (RFI) pertaining to the energy conservation standards for unfired hot water storage tanks on August 9, 2019. 84 FR 39220. The RFI initiated a data collection process to consider whether to amend DOE’s current uniform national standards for unfired hot water storage tanks, and whether amending the standards for unfired hot water storage tanks would result in significant SUPPLEMENTARY INFORMATION: PO 00000 Frm 00028 Fmt 4702 Sfmt 4702 51467 additional conservation of energy and be technologically feasible and economically justified. DOE requested written comment, data, and information pertaining to these standards by September 23, 2019. On September 13, 2019, AHRI, an interested party in the matter, requested a sixty-day extension of the public comment period for the RFI that DOE previously published in the Federal Register on August 9, 2019.1 More specifically, AHRI requested additional time to analyze data, possibly conduct further testing, and prepare comments. After carefully considering this request, DOE has determined that a reopening of the comment period to allow additional time for interested parties to submit comments is appropriate. Therefore, DOE is reopening the comment period and will accept comments received on and before October 30, 2019, to provide interested parties additional time to prepare and submit comments. Accordingly, DOE will consider any comments received by this date, to be timely submitted. Signed in Washington, DC, on September 23, 2019. Alexander N. Fitzsimmons, Acting Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and Renewable Energy. [FR Doc. 2019–21174 Filed 9–27–19; 8:45 am] BILLING CODE 6450–01–P FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Chapter III RIN 3064–ZA11 Proposed Rescission of Policy Statements Federal Deposit Insurance Corporation (FDIC). ACTION: Request for comments. AGENCY: In an ongoing effort to streamline issuances by the FDIC to the public and to ensure that such issuances are timely, relevant, and effective, the FDIC initiated a comprehensive review of its Statements of Policy to identify those that could be rescinded. Additionally, the FDIC, in the 2017 report required by the Economic Growth and Regulatory Paperwork Reduction Act, committed to reviewing published guidance to identify any guidance that should be revised or rescinded because it is out-of-date or otherwise no longer relevant. SUMMARY: 1 Available at https://www.regulations.gov/ document?D=EERE-2017-BT-STD-0021-0002. E:\FR\FM\30SEP1.SGM 30SEP1 51468 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Proposed Rules Comments must be received by October 30, 2019. ADDRESSES: You may submit comments, identified by RIN 3064–ZA11, by any of the following methods: • Agency website: https:// www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the Agency website. • Email: Comments@fdic.gov. Include RIN 3064- ZA11 in the subject line of the message. • Mail: Robert E. Feldman, Executive Secretary, Attention: Comments, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. Include RIN 3064–ZA11 in the subject line of the letter. • Hand Delivery: 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 7:00 a.m. and 5:00 p.m. • Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. Public Inspection: All comments received for this request for information must include the agency name and RIN 3064–ZA11. All comments received will be posted without change to https:// www.fdic.gov/regulations/laws/federal/ —including any personal information provided—for public inspection. FOR FURTHER INFORMATION CONTACT: Applicability of the Glass-Steagall Act to the Securities Activities of Insured Nonmember Banks: William R. Baxter, Senior Policy Analyst, (202) 898–8514, wbaxter@ fdic.gov; Michael B. Phillips, Counsel, (202) 898–3851 mphillips@fdic.gov. Treatment of Collateralized Letters of Credit After Appointment of the FDIC as Conservator or Receiver and Treatment of Collateralized Put Obligations After Appointment of the FDIC as Conservator or Receiver: Thomas P. Bolt, Senior Counsel, (703) 562–2046, tbolt@fdic.gov; Philip Mangano, Deputy Director, (571) 858– 8279, pmangano@fdic.gov; Scott A. Greenup, Associate Director, (571) 858– 8207, sgreenup@fdic.gov; George H. Williamson, Manager, (571) 858–8199, gwilliamson@fdic.gov. Contracting With Firms That Have Unresolved Audit Issues With FDIC: Thomas D. Harris, Deputy Director, (703) 562–2203, tharris@fdic.gov; Robert J. Brown, Supervisory Counsel, (703) 562–6068, robertjbrown@fdic.gov. SUPPLEMENTARY INFORMATION: After a comprehensive review of FDIC Statements of Policy, given legislative and other changes since their publication in the Federal Register, the FDIC proposes to rescind the following khammond on DSKJM1Z7X2PROD with PROPOSALS DATES: VerDate Sep<11>2014 16:51 Sep 27, 2019 Jkt 247001 four Statements of Policy because they are outdated and no longer necessary: Applicability of the Glass-Steagall Act to Securities Activities of Subsidiaries of Insured Nonmember Banks; Treatment of Collateralized Letters of Credit After Appointment of the FDIC as Conservator or Receiver; Treatment of Collateralized Put Obligations After Appointment of the FDIC as Conservator or Receiver; and Contracting with Firms that have Unresolved Audit Issues with the FDIC. Although these Statements of Policy were not subject to public comment prior to their adoption, the FDIC Board has, on a discretionary basis, elected to provide a period for public comment on the proposed rescission of these Policy Statements. Proposed Rescissions of Statements of Policy (a) Statement of Policy on Applicability of the Glass-Steagall Act to Securities Activities of Subsidiaries of Insured Nonmember Banks This 1982 Statement of Policy addresses the applicability of sections 20 and 32 of the Banking Act of 1933 (Glass Steagall Act) to the securities activities of subsidiaries of insured nonmember banks.1 The Statement of Policy states the opinion of the FDIC Board that the Glass Steagall Act does not prohibit an insured nonmember bank from establishing an affiliate relationship with, or organizing or acquiring, a subsidiary corporation that engages in the business of issuing, underwriting, selling, or distributing stocks, bonds, or other securities. The 1982 Statement of Policy was superseded in its entirety by the enactment of the Gramm-Leach-Bliley Act (GLBA).2 GLBA allowed commercial banks, investment banks, securities firms, and insurance companies to consolidate and operate as financial conglomerates. Therefore, the information and guidance contained in the 1982 Statement of Policy is out-ofdate. For this reason, the FDIC is proposing rescission of the 1982 Statement of Policy. (b) Statement of Policy on Treatment of Collateralized Letters of Credit After Appointment of the FDIC as Conservator or Receiver This Statement of Policy was adopted by the FDIC on May 19, 1995, in order to clarify how the FDIC as conservator or receiver of a failed insured depository institution (IDI) would treat certain capital markets financing transactions using collateralized letters of credit (CLOCs) issued by IDIs prior to August 9, 1989, the date on which the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 3 (FIRREA) was signed into law.4 The Statement of Policy applies only to CLOCs (i) utilized in capital markets financing transactions originally issued by IDIs prior to August 9, 1989, and any subsequent renewal, replacement or extension of such CLOCs; and (ii) where the security interest in collateral pledged by the IDI was both perfected and legally enforceable under applicable law. The Statement of Policy does not apply to trade letters of credit or letters of credit issued for any other purpose. The Statement of Policy provides that after its appointment as conservator or receiver of a failed IDI, the FDIC may either (i) continue any CLOCs as enforceable under the terms of the contract during the pendency of the conservatorship or receivership, or (ii) call, redeem or prepay any CLOC by its statutory power to repudiate or disaffirm contracts entered into by the IDI. Based on market research, the FDIC has concluded, to the best of its knowledge, that it is unlikely that any public or privately issued transactions of the type covered by the Statement of Policy remain outstanding at this time. Therefore, the FDIC is seeking public comment on the continued need for the Statement of Policy and, if all such transactions have terminated, the rescission of this Statement of Policy. (c) Statement of Policy on Treatment of Collateralized Put Obligations After Appointment of the FDIC as Conservator or Receiver This Statement of Policy was adopted by the FDIC on July 9, 1991, in order to explain how the FDIC as conservator or receiver of a failed IDI would treat certain capital markets financing transactions using collateralized put obligations—also referred to as ‘‘collateralized put options’’ (CPOs)— issued by IDIs prior to August 9, 1989, the date on which FIRREA was signed into law.5 The Statement of Policy applies only to CPOs (i) issued by IDIs in connection with capital markets financing transactions, including the formation of publicly offered unit investment trusts and other sales of an 3 Public 1 47 FR 38984. (https://www.govinfo.gov/content/ pkg/FR-1982-09-03/pdf/FR-1982-09-03.pdf). 2 Public Law 106–102, 113 Stat. 1338, § 101 (1999). PO 00000 Frm 00029 Fmt 4702 Sfmt 4702 Law 101–73, 103 Stat. 103 (1989). FR 27976. (https://www.govinfo.gov/content/ pkg/FR-1995-05-26/pdf/95-12992.pdf). 5 56 FR 36152. (https://cdn.loc.gov/service/ll/ fedreg/fr056/fr056147/fr056147.pdf). 4 60 E:\FR\FM\30SEP1.SGM 30SEP1 Federal Register / Vol. 84, No. 189 / Monday, September 30, 2019 / Proposed Rules khammond on DSKJM1Z7X2PROD with PROPOSALS IDI’s portfolio securities, prior to August 9, 1989, and any subsequent renewal, replacement or extension of such CPOs; and (ii) collateralized by property owned and pledged by the IDI, and in which the security interest granted is both perfected and legally enforceable. The Statement of Policy explains that the FDIC as conservator or receiver has the right to call, redeem or prepay any CPOs by repudiation or disaffirmance of the applicable written contract entered into by the IDI, either directly by cash payment in exchange for release of collateral or by liquidation of the collateral by a trustee or other secured party. Based on market research, the FDIC has concluded, to the best of its knowledge, that it is unlikely that any public or privately issued transactions of this type remain outstanding at this time. Therefore, the FDIC is seeking public comment on the continued need for the Statement of Policy and, if all such transactions have terminated, the rescission of this Statement of Policy. (d) Statement of Policy on Contracting With Firms That Have Unresolved Audit Issues With FDIC The Statement of Policy on Contracting with Firms That Have Unresolved Audit Issues With FDIC (1997 Statement of Policy) was not approved by the FDIC Board but it is being consolidated in this notice for convenience and completeness. The 1997 Statement of Policy was adopted to address situations in which the FDIC seeks to contract with firms with which there are unresolved audit issues.6 The 1997 Statement of Policy established certain rights and procedures for the handling of contracting parties that have unresolved audit issues, as determined by various FDIC auditing agents. After review of the relevant Statement of Policy, the FDIC has concluded that the document may give rise to de facto exclusions from future FDIC contracting opportunities in a manner that is inconsistent with procedural protections specified in 12 CFR 367. In determining whether to revise or rescind the relevant Statement of Policy, the FDIC considered a variety of factors, including whether or not the Policy provided the FDIC and its various audit agents with essential or additional protections regarding the repayment of challenged amounts. The FDIC has determined that existing remedies are sufficient to allow the FDIC and its agents to pursue such challenged 6 62 FR 13382. (https://www.govinfo.gov/content/ pkg/FR-1997-03-20/pdf/97-6995.pdf). VerDate Sep<11>2014 16:51 Sep 27, 2019 Jkt 247001 amounts without the need for those measures specified in the Statement of Policy. Therefore, the FDIC proposes to rescind this Statement of Policy, and seeks comment on this action. Authority: 12 U.S.C. 1811 et seq. Federal Deposit Insurance Corporation. By order of the Board of Directors. Dated at Washington, DC, on September 17, 2019. Robert E. Feldman, Executive Secretary. [FR Doc. 2019–20588 Filed 9–27–19; 8:45 am] BILLING CODE 6714–01–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2019–0701; Product Identifier 2019–NM–107–AD] RIN 2120–AA64 Airworthiness Directives; Embraer S.A. Airplanes Federal Aviation Administration (FAA), DOT. ACTION: Notice of proposed rulemaking (NPRM). AGENCY: The FAA proposes to adopt a new airworthiness directive (AD) for certain Embraer S.A. Model ERJ 190– 100 STD, –100 LR, –100 IGW, –200 STD, –200 LR, and –200 IGW airplanes. This proposed AD was prompted by reports of structural cracks in the wing lower skin stringers on both half wings. This proposed AD would require repetitive inspections of the lower skin stringers on both half wings for cracking or fuel leakage, and applicable related investigative and corrective actions, as specified in an Ageˆncia Nacional de Aviac¸a˜o Civil (ANAC) Brazilian AD, which will be incorporated by reference. The FAA is proposing this AD to address the unsafe condition on these products. SUMMARY: The FAA must receive comments on this proposed AD by November 14, 2019. ADDRESSES: You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, 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 DATES: PO 00000 Frm 00030 Fmt 4702 Sfmt 4702 51469 W12–140, 1200 New Jersey Avenue SE, Washington, DC 20590. • Hand Delivery: Deliver to Mail address above between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. For the material identified in this proposed AD that will be incorporated by reference (IBR), contact National Civil Aviation Agency, Aeronautical Products Certification Branch (GGCP), Rua Laurent Martins, n° 209, Jardim Esplanada, CEP 12242–431—Sa˜o Jose´ dos Campos—SP, Brazil; telephone 55 (12) 3203–6600; email pac@anac.gov.br; internet www.anac.gov.br/en/. You may find this IBR material on the ANAC website at https://sistemas.anac.gov.br/ certificacao/DA/DAE.asp. You may view this IBR material at the FAA, Transport Standards Branch, 2200 South 216th St., Des Moines, WA. For information on the availability of this material at the FAA, call 206–231–3195. It is also available in the AD docket on the internet at http:// www.regulations.gov by searching for and locating Docket No. FAA–2019– 0701. 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–2019– 0701; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this NPRM, the regulatory evaluation, any comments received, and other information. The street address for Docket Operations is listed above. Comments will be available in the AD docket shortly after receipt. FOR FURTHER INFORMATION CONTACT: Krista Greer, Aerospace Engineer, International Section, Transport Standards Branch, FAA, 2200 South 216th St., Des Moines, WA 98198; telephone and fax 206–231–3221. SUPPLEMENTARY INFORMATION: Comments Invited The FAA invites you to send any written relevant data, views, or arguments about this proposal. Send your comments to an address listed under the ADDRESSES section. Include ‘‘Docket No. FAA–2019–0701; Product Identifier 2019–NM–107–AD’’ at the beginning of your comments. The FAA specifically invites comments on the overall regulatory, economic, environmental, and energy aspects of this NPRM. The FAA will consider all comments received by the closing date and may amend this NPRM based on those comments. E:\FR\FM\30SEP1.SGM 30SEP1

Agencies

[Federal Register Volume 84, Number 189 (Monday, September 30, 2019)]
[Proposed Rules]
[Pages 51467-51469]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20588]


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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Chapter III

RIN 3064-ZA11


Proposed Rescission of Policy Statements

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Request for comments.

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

SUMMARY: In an ongoing effort to streamline issuances by the FDIC to 
the public and to ensure that such issuances are timely, relevant, and 
effective, the FDIC initiated a comprehensive review of its Statements 
of Policy to identify those that could be rescinded. Additionally, the 
FDIC, in the 2017 report required by the Economic Growth and Regulatory 
Paperwork Reduction Act, committed to reviewing published guidance to 
identify any guidance that should be revised or rescinded because it is 
out-of-date or otherwise no longer relevant.

[[Page 51468]]


DATES:  Comments must be received by October 30, 2019.

ADDRESSES: You may submit comments, identified by RIN 3064-ZA11, by any 
of the following methods:
     Agency website: https://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the Agency 
website.
     Email: [email protected]. Include RIN 3064- ZA11 in the 
subject line of the message.
     Mail: Robert E. Feldman, Executive Secretary, Attention: 
Comments, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429. Include RIN 3064-ZA11 in the subject line of the 
letter.
     Hand Delivery: 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 7:00 a.m. and 5:00 p.m.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    Public Inspection: All comments received for this request for 
information must include the agency name and RIN 3064-ZA11. All 
comments received will be posted without change to https://www.fdic.gov/regulations/laws/federal/--including any personal 
information provided--for public inspection.

FOR FURTHER INFORMATION CONTACT: 
    Applicability of the Glass-Steagall Act to the Securities 
Activities of Insured Nonmember Banks:
    William R. Baxter, Senior Policy Analyst, (202) 898-8514, 
[email protected]; Michael B. Phillips, Counsel, (202) 898-3851 
[email protected].
    Treatment of Collateralized Letters of Credit After Appointment of 
the FDIC as Conservator or Receiver and Treatment of Collateralized Put 
Obligations After Appointment of the FDIC as Conservator or Receiver:
    Thomas P. Bolt, Senior Counsel, (703) 562-2046, [email protected]; 
Philip Mangano, Deputy Director, (571) 858-8279, [email protected]; 
Scott A. Greenup, Associate Director, (571) 858-8207, 
[email protected]; George H. Williamson, Manager, (571) 858-8199, 
[email protected].
    Contracting With Firms That Have Unresolved Audit Issues With FDIC:
    Thomas D. Harris, Deputy Director, (703) 562-2203, 
[email protected]; Robert J. Brown, Supervisory Counsel, (703) 562-6068, 
[email protected].

SUPPLEMENTARY INFORMATION: After a comprehensive review of FDIC 
Statements of Policy, given legislative and other changes since their 
publication in the Federal Register, the FDIC proposes to rescind the 
following four Statements of Policy because they are outdated and no 
longer necessary:
    Applicability of the Glass-Steagall Act to Securities Activities of 
Subsidiaries of Insured Nonmember Banks;
    Treatment of Collateralized Letters of Credit After Appointment of 
the FDIC as Conservator or Receiver;
    Treatment of Collateralized Put Obligations After Appointment of 
the FDIC as Conservator or Receiver; and
    Contracting with Firms that have Unresolved Audit Issues with the 
FDIC.
    Although these Statements of Policy were not subject to public 
comment prior to their adoption, the FDIC Board has, on a discretionary 
basis, elected to provide a period for public comment on the proposed 
rescission of these Policy Statements.

Proposed Rescissions of Statements of Policy

(a) Statement of Policy on Applicability of the Glass-Steagall Act to 
Securities Activities of Subsidiaries of Insured Nonmember Banks

    This 1982 Statement of Policy addresses the applicability of 
sections 20 and 32 of the Banking Act of 1933 (Glass Steagall Act) to 
the securities activities of subsidiaries of insured nonmember 
banks.\1\ The Statement of Policy states the opinion of the FDIC Board 
that the Glass Steagall Act does not prohibit an insured nonmember bank 
from establishing an affiliate relationship with, or organizing or 
acquiring, a subsidiary corporation that engages in the business of 
issuing, underwriting, selling, or distributing stocks, bonds, or other 
securities. The 1982 Statement of Policy was superseded in its entirety 
by the enactment of the Gramm-Leach-Bliley Act (GLBA).\2\ GLBA allowed 
commercial banks, investment banks, securities firms, and insurance 
companies to consolidate and operate as financial conglomerates. 
Therefore, the information and guidance contained in the 1982 Statement 
of Policy is out-of-date. For this reason, the FDIC is proposing 
rescission of the 1982 Statement of Policy.
---------------------------------------------------------------------------

    \1\ 47 FR 38984. (https://www.govinfo.gov/content/pkg/FR-1982-09-03/pdf/FR-1982-09-03.pdf).
    \2\ Public Law 106-102, 113 Stat. 1338, Sec.  101 (1999).
---------------------------------------------------------------------------

(b) Statement of Policy on Treatment of Collateralized Letters of 
Credit After Appointment of the FDIC as Conservator or Receiver

    This Statement of Policy was adopted by the FDIC on May 19, 1995, 
in order to clarify how the FDIC as conservator or receiver of a failed 
insured depository institution (IDI) would treat certain capital 
markets financing transactions using collateralized letters of credit 
(CLOCs) issued by IDIs prior to August 9, 1989, the date on which the 
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 
\3\ (FIRREA) was signed into law.\4\ The Statement of Policy applies 
only to CLOCs (i) utilized in capital markets financing transactions 
originally issued by IDIs prior to August 9, 1989, and any subsequent 
renewal, replacement or extension of such CLOCs; and (ii) where the 
security interest in collateral pledged by the IDI was both perfected 
and legally enforceable under applicable law. The Statement of Policy 
does not apply to trade letters of credit or letters of credit issued 
for any other purpose.
---------------------------------------------------------------------------

    \3\ Public Law 101-73, 103 Stat. 103 (1989).
    \4\ 60 FR 27976. (https://www.govinfo.gov/content/pkg/FR-1995-05-26/pdf/95-12992.pdf).
---------------------------------------------------------------------------

    The Statement of Policy provides that after its appointment as 
conservator or receiver of a failed IDI, the FDIC may either (i) 
continue any CLOCs as enforceable under the terms of the contract 
during the pendency of the conservatorship or receivership, or (ii) 
call, redeem or prepay any CLOC by its statutory power to repudiate or 
disaffirm contracts entered into by the IDI.
    Based on market research, the FDIC has concluded, to the best of 
its knowledge, that it is unlikely that any public or privately issued 
transactions of the type covered by the Statement of Policy remain 
outstanding at this time. Therefore, the FDIC is seeking public comment 
on the continued need for the Statement of Policy and, if all such 
transactions have terminated, the rescission of this Statement of 
Policy.

(c) Statement of Policy on Treatment of Collateralized Put Obligations 
After Appointment of the FDIC as Conservator or Receiver

    This Statement of Policy was adopted by the FDIC on July 9, 1991, 
in order to explain how the FDIC as conservator or receiver of a failed 
IDI would treat certain capital markets financing transactions using 
collateralized put obligations--also referred to as ``collateralized 
put options'' (CPOs)--issued by IDIs prior to August 9, 1989, the date 
on which FIRREA was signed into law.\5\ The Statement of Policy applies 
only to CPOs (i) issued by IDIs in connection with capital markets 
financing transactions, including the formation of publicly offered 
unit investment trusts and other sales of an

[[Page 51469]]

IDI's portfolio securities, prior to August 9, 1989, and any subsequent 
renewal, replacement or extension of such CPOs; and (ii) collateralized 
by property owned and pledged by the IDI, and in which the security 
interest granted is both perfected and legally enforceable.
---------------------------------------------------------------------------

    \5\ 56 FR 36152. (https://cdn.loc.gov/service/ll/fedreg/fr056/fr056147/fr056147.pdf).
---------------------------------------------------------------------------

    The Statement of Policy explains that the FDIC as conservator or 
receiver has the right to call, redeem or prepay any CPOs by 
repudiation or disaffirmance of the applicable written contract entered 
into by the IDI, either directly by cash payment in exchange for 
release of collateral or by liquidation of the collateral by a trustee 
or other secured party.
    Based on market research, the FDIC has concluded, to the best of 
its knowledge, that it is unlikely that any public or privately issued 
transactions of this type remain outstanding at this time. Therefore, 
the FDIC is seeking public comment on the continued need for the 
Statement of Policy and, if all such transactions have terminated, the 
rescission of this Statement of Policy.

(d) Statement of Policy on Contracting With Firms That Have Unresolved 
Audit Issues With FDIC

    The Statement of Policy on Contracting with Firms That Have 
Unresolved Audit Issues With FDIC (1997 Statement of Policy) was not 
approved by the FDIC Board but it is being consolidated in this notice 
for convenience and completeness.
    The 1997 Statement of Policy was adopted to address situations in 
which the FDIC seeks to contract with firms with which there are 
unresolved audit issues.\6\ The 1997 Statement of Policy established 
certain rights and procedures for the handling of contracting parties 
that have unresolved audit issues, as determined by various FDIC 
auditing agents. After review of the relevant Statement of Policy, the 
FDIC has concluded that the document may give rise to de facto 
exclusions from future FDIC contracting opportunities in a manner that 
is inconsistent with procedural protections specified in 12 CFR 367.
---------------------------------------------------------------------------

    \6\ 62 FR 13382. (https://www.govinfo.gov/content/pkg/FR-1997-03-20/pdf/97-6995.pdf).
---------------------------------------------------------------------------

    In determining whether to revise or rescind the relevant Statement 
of Policy, the FDIC considered a variety of factors, including whether 
or not the Policy provided the FDIC and its various audit agents with 
essential or additional protections regarding the repayment of 
challenged amounts. The FDIC has determined that existing remedies are 
sufficient to allow the FDIC and its agents to pursue such challenged 
amounts without the need for those measures specified in the Statement 
of Policy. Therefore, the FDIC proposes to rescind this Statement of 
Policy, and seeks comment on this action.

    Authority:  12 U.S.C. 1811 et seq.

Federal Deposit Insurance Corporation.

    By order of the Board of Directors.

    Dated at Washington, DC, on September 17, 2019.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2019-20588 Filed 9-27-19; 8:45 am]
 BILLING CODE 6714-01-P