56530 Federal Register / Vol. 68, No. 190 / Wednesday, October 1, 2003 / Rules and Regulations
Arizona and Texas to the list of
regulated areas in § 301.89–3(f), either
because they were found during
detection and delineating surveys to
contain a bunted wheat kernel, or
because they fell within the 3-mile-wide
buffer zone around fields or areas
affected with Karnal bunt. We also
removed certain individual fields and
other areas in Arizona, New Mexico,
and Texas from the list of regulated
areas in § 301.89–3(f), either because
recently completed detection and
delineating surveys showed them to be
free of Karnal bunt, or because they had
not been used to produce Karnal bunt
host crops within the last 5 years, or
because they had been used to produce
Karnal bunt host crops in 1 or more
years following initial regulation and
the crops have been tested and found
free of Karnal bunt. The interim rule
was necessary to help prevent the
spread of Karnal bunt into noninfected
areas of the United States and to relieve
restrictions that are no longer
warranted.
Comments on the interim rule were
required to be received on or before
December 2, 2002. We received two
comments by that date. The comments
were from State departments of
agriculture. Both commenters supported
the interim rule. However, one
commenter stated that it was important
for APHIS to communicate the
deregulation of the areas as described in
the interim rule through immediate
updates to all Karnal bunt fact sheets,
maps, manuals, Web sites, and other
resources for information.
Currently, APHIS has procedures in
place for ensuring that this type of
information is updated promptly.
APHIS uses its Internet site, on which
we make available materials such as
press releases, maps, and fact sheets, to
communicate the type of information
noted by the commenter, and such
updates are routinely communicated to
APHIS personnel involved in regulatory
programs. While it is perhaps most
important that the deregulated areas be
removed from the list of regulated areas
in § 301.89–3(f), we do make every effort
to ensure that related materials such as
fact sheets, etc., are updated promptly.
Therefore, for the reasons given in the
interim rule and in this document, we
are adopting the interim rule as a final
rule without change.
This action also affirms the
information contained in the interim
rule concerning Executive Order 12866
and the Regulatory Flexibility Act,
Executive Orders 12372 and 12988, and
the Paperwork Reduction Act.
Further, for this action, the Office of
Management and Budget has waived its
review under Executive Order 12866.
List of Subjects in 7 CFR Part 301
Agricultural commodities, Plant
diseases and pests, Quarantine,
Reporting and recordkeeping
requirements, Transportation.
PART 301—DOMESTIC QUARANTINE
NOTICES
Accordingly, we are adopting as a
final rule, without change, the interim
rule that amended 7 CFR part 301 and
that was published at 67 FR 61975–
61980 on October 3, 2002.
Authority: 7 U.S.C. 7701–7772; 7 CFR 2.22,
2.80, and 371.3.
Section 301.75–15 also issued under
Sec. 204, Title II, Pub. L. 106–113, 113
Stat. 1501A–293; sections 301.75–15
and 301.75–16 also issued under Sec.
203, Title II, Pub. L. 106–224, 114 Stat.
400 (7 U.S.C. 1421 note).
Done in Washington, DC, this 25th day of
September, 2003.
Peter Fernandez,
Acting Administrator, Animal and Plant
Health Inspection Service.
[FR Doc. 03–24874 Filed 9–30–03; 8:45 am]
BILLING CODE 3410 –34–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 3
[Docket No. 03–21]
RIN 1557–AC76
FEDERAL RESERVE SYSTEM
12 CFR Parts 208 and 225
[Regulations H and Y; Docket No. R–1156]
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 325
RIN 3064–AC74
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Part 567
[No. 2003–48]
RIN 1550–AB79
Risk-Based Capital Guidelines; Capital
Adequacy Guidelines; Capital
Maintenance: Interim Capital
Treatment of Consolidated Asset-
Backed Commercial Paper Program
Assets
AGENCIES: Office of the Comptroller of
the Currency, Treasury; Board of
Governors of the Federal Reserve
System; Federal Deposit Insurance
Corporation; and Office of Thrift
Supervision, Treasury.
ACTION: Interim final rule with a request
for comments.
SUMMARY: The Office of the Comptroller
of the Currency (OCC), Board of
Governors of the Federal Reserve
System (Board), Federal Deposit
Insurance Corporation (FDIC), and
Office of Thrift Supervision (OTS)
(collectively, the agencies) are amending
their risk-based capital standards by
providing an interim capital treatment
for assets in asset-backed commercial
paper (ABCP) programs that are
consolidated onto the balance sheets of
sponsoring banks, bank holding
companies, and thrifts (collectively,
sponsoring banking organizations) as a
result of a recently issued accounting
interpretation, Financial Accounting
Standards Board Interpretation No. 46,
Consolidation of Variable Interest
Entities (FIN 46). The interim capital
treatment allows sponsoring banking
organizations to remove the
VerDate jul<14>2003 16:22 Sep 30, 2003 Jkt 200001 PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 E:\FR\FM\01OCR1.SGM 01OCR1
Arizona and Texas to the list of
regulated areas in § 301.89–3(f), either
because they were found during
detection and delineating surveys to
contain a bunted wheat kernel, or
because they fell within the 3-mile-wide
buffer zone around fields or areas
affected with Karnal bunt. We also
removed certain individual fields and
other areas in Arizona, New Mexico,
and Texas from the list of regulated
areas in § 301.89–3(f), either because
recently completed detection and
delineating surveys showed them to be
free of Karnal bunt, or because they had
not been used to produce Karnal bunt
host crops within the last 5 years, or
because they had been used to produce
Karnal bunt host crops in 1 or more
years following initial regulation and
the crops have been tested and found
free of Karnal bunt. The interim rule
was necessary to help prevent the
spread of Karnal bunt into noninfected
areas of the United States and to relieve
restrictions that are no longer
warranted.
Comments on the interim rule were
required to be received on or before
December 2, 2002. We received two
comments by that date. The comments
were from State departments of
agriculture. Both commenters supported
the interim rule. However, one
commenter stated that it was important
for APHIS to communicate the
deregulation of the areas as described in
the interim rule through immediate
updates to all Karnal bunt fact sheets,
maps, manuals, Web sites, and other
resources for information.
Currently, APHIS has procedures in
place for ensuring that this type of
information is updated promptly.
APHIS uses its Internet site, on which
we make available materials such as
press releases, maps, and fact sheets, to
communicate the type of information
noted by the commenter, and such
updates are routinely communicated to
APHIS personnel involved in regulatory
programs. While it is perhaps most
important that the deregulated areas be
removed from the list of regulated areas
in § 301.89–3(f), we do make every effort
to ensure that related materials such as
fact sheets, etc., are updated promptly.
Therefore, for the reasons given in the
interim rule and in this document, we
are adopting the interim rule as a final
rule without change.
This action also affirms the
information contained in the interim
rule concerning Executive Order 12866
and the Regulatory Flexibility Act,
Executive Orders 12372 and 12988, and
the Paperwork Reduction Act.
Further, for this action, the Office of
Management and Budget has waived its
review under Executive Order 12866.
List of Subjects in 7 CFR Part 301
Agricultural commodities, Plant
diseases and pests, Quarantine,
Reporting and recordkeeping
requirements, Transportation.
PART 301—DOMESTIC QUARANTINE
NOTICES
Accordingly, we are adopting as a
final rule, without change, the interim
rule that amended 7 CFR part 301 and
that was published at 67 FR 61975–
61980 on October 3, 2002.
Authority: 7 U.S.C. 7701–7772; 7 CFR 2.22,
2.80, and 371.3.
Section 301.75–15 also issued under
Sec. 204, Title II, Pub. L. 106–113, 113
Stat. 1501A–293; sections 301.75–15
and 301.75–16 also issued under Sec.
203, Title II, Pub. L. 106–224, 114 Stat.
400 (7 U.S.C. 1421 note).
Done in Washington, DC, this 25th day of
September, 2003.
Peter Fernandez,
Acting Administrator, Animal and Plant
Health Inspection Service.
[FR Doc. 03–24874 Filed 9–30–03; 8:45 am]
BILLING CODE 3410 –34–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 3
[Docket No. 03–21]
RIN 1557–AC76
FEDERAL RESERVE SYSTEM
12 CFR Parts 208 and 225
[Regulations H and Y; Docket No. R–1156]
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 325
RIN 3064–AC74
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Part 567
[No. 2003–48]
RIN 1550–AB79
Risk-Based Capital Guidelines; Capital
Adequacy Guidelines; Capital
Maintenance: Interim Capital
Treatment of Consolidated Asset-
Backed Commercial Paper Program
Assets
AGENCIES: Office of the Comptroller of
the Currency, Treasury; Board of
Governors of the Federal Reserve
System; Federal Deposit Insurance
Corporation; and Office of Thrift
Supervision, Treasury.
ACTION: Interim final rule with a request
for comments.
SUMMARY: The Office of the Comptroller
of the Currency (OCC), Board of
Governors of the Federal Reserve
System (Board), Federal Deposit
Insurance Corporation (FDIC), and
Office of Thrift Supervision (OTS)
(collectively, the agencies) are amending
their risk-based capital standards by
providing an interim capital treatment
for assets in asset-backed commercial
paper (ABCP) programs that are
consolidated onto the balance sheets of
sponsoring banks, bank holding
companies, and thrifts (collectively,
sponsoring banking organizations) as a
result of a recently issued accounting
interpretation, Financial Accounting
Standards Board Interpretation No. 46,
Consolidation of Variable Interest
Entities (FIN 46). The interim capital
treatment allows sponsoring banking
organizations to remove the
VerDate jul<14>2003 16:22 Sep 30, 2003 Jkt 200001 PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 E:\FR\FM\01OCR1.SGM 01OCR1
56531Federal Register / Vol. 68, No. 190 / Wednesday, October 1, 2003 / Rules and Regulations
consolidated ABCP program assets from
their risk-weighted asset bases for the
purpose of calculating their risk-based
capital ratios. Sponsoring banking
organizations must continue to hold
risk-based capital against all other risk
exposures arising in connection with
ABCP programs, including direct credit
substitutes, recourse obligations,
residual interests, long-term liquidity
facilities, and loans, in accordance with
each agency’s existing risk-based capital
standards. In addition, any minority
interests in ABCP programs that are
consolidated as a result of FIN 46 are to
be excluded from sponsoring banking
organizations’ minority interest
component of tier 1 capital and, hence,
from total risk-based capital.
This interim capital treatment will be
applicaable only for the regulatory
reporting periods ending September 30
and December 31, 2003, and March 31,
2004. In addition, this interim capital
treatment does not alter the accounting
rules for balance sheet consolidation nor
does it affect the denominator of the tier
1 leverage capital ratio calculation,
which continues to be based primarily
on on-balance sheet assets as reported
under generally accepted accounting
principles (GAAP). Thus, as a result of
FIN 46, banking organizations must
include all assets of consolidated ABCP
programs in on-balance sheet assets for
purposes of calculating the tier 1
leverage capital ratio.
The agencies also have issued a
related notice of proposed rulemaking
published elsewhere in today’s Federal
Register, in which the agencies are
soliciting comments on a permanent
risk-based capital treatment for the risks
arising from ABCP programs.
DATES: This interim final rule is
effective October 1, 2003. Comments on
the interim final rule must be received
by November 17, 2003.
ADDRESSES: Comments should be
directed to:
OCC: You should send comments to
the Public Information Room, Office of
the Comptroller of the Currency,
Mailstop 1–5, Attention: Docket No. 03–
21, 250 E Street, SW., Washington, DC
20219. Due to delays in the delivery of
paper mail in the Washington area and
at the OCC, commenters are encouraged
to submit comments by fax or e-mail.
Comments may be sent by fax to (202)
874–4448, or by e-mail to
regs.comments@occ.treas.gov. You can
make an appointment to inspect and
photocopy the comments by calling the
Public Information Room at (202) 874–
5043.
Board: Comments should refer to
Docket No. R–1156 and may be mailed
to Ms. Jennifer J. Johnson, Secretary,
Board of Governors of the Federal
Reserve System, 20th and Constitution
Avenue, NW., Washington, DC 20551.
However, because paper mail in the
Washington area and at the Board of
Governors is subject to delay, please
consider submitting your comments by
e-mail to
regs.comments@federalreserve.gov, or
faxing them to the Office of the
Secretary at 202/452–3819 or 202/452–
3102. Members of the public may
inspect comments in Room MP–500 of
the Martin Building between 9 a.m. and
5 p.m. weekdays pursuant to § 261.12,
except as provided in § 261.14, of the
Board’s Rules Regarding Availability of
Information, 12 CFR 261.12 and 261.14.
FDIC: Written comments should be
addressed to Robert E. Feldman,
Executive Secretary, Attention:
Comments, Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429. Comments also
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.
Comments may be inspected and
photocopied in the FDIC Public
Information Center, Room 100, 801 17th
Street, NW., Washington, DC, between 9
a.m. and 4:30 p.m. on business days.
OTS: Send comments to Regulation
Comments, Chief Counsel’s Office,
Office of Thrift Supervision, 1700 G
Street, NW., Washington, DC 20552,
Attention: No. 2003–48.
Delivery: Hand deliver comments to
the Guard’s Desk, East Lobby Entrance,
1700 G Street, NW., from 9 a.m. to 4
p.m. on business days, Attention:
Regulation Comments, Chief Counsel’s
Office, Attention: No. 2003–48.
Facsimiles: Send facsimile
transmissions to FAX Number (202)
906–6518, Attention: No. 2003–48.
E-Mail: Send e-mails to
regs.comments@ots.treas.gov, Attention:
No. 2003–48 and include your name
and telephone number. Due to
temporary disruptions in mail service in
the Washington, DC area, commenters
are encouraged to send comments by fax
or e-mail, if possible.
Availability of comments: OTS will
post comments and the related index on
the OTS Internet Site at http://
www.ots.treas.gov. In addition, you may
inspect comments at the Public Reading
Room, 1700 G Street, NW., by
appointment. To make an appointment
for access, call (202) 906–5922, send an
e-mail to public.info@ots.treas.gov, or
send a facsimile transmission to (202)
906–7755. (Please identify the materials
you would like to inspect to assist us in
serving you.) We schedule
appointments on business days between
10 a.m. and 4 p.m. In most cases,
appointments will be available the
business day after the date we receive a
request.
FOR FURTHER INFORMATION CONTACT:
OCC: Amrit Sekhon, Risk Expert,
Capital Policy Division, (202) 874–5211;
Mauricio Claver-Carone, Attorney, or
Ron Shimabukuro, Special Counsel,
Legislative and Regulatory Activities
Division, (202) 874–5090, Office of the
Comptroller of the Currency, 250 E
Street, SW., Washington, DC 20219.
Board: Thomas R. Boemio, Senior
Supervisory Financial Analyst, (202)
452–2982, David Kerns, Supervisory
Financial Analyst, (202) 452–2428,
Barbara Bouchard, Assistant Director,
(202) 452–3072, Division of Banking
Supervision and Regulation; or Mark E.
Van Der Weide, Counsel, (202) 452–
2263, Legal Division. For the hearing
impaired only, Telecommunication
Device for the Deaf (TDD), (202) 263–
4869.
FDIC: Jason C. Cave, Chief, Policy
Section, Capital Markets Branch, (202)
898–3548, Robert F. Storch, Chief
Accountant, Division of Supervision
and Consumer Protection, (202) 898–
8906; Michael B. Phillips, Counsel,
Supervision and Legislation Branch,
Legal Division, (202) 898–3581, Federal
Deposit Insurance Corporation, 550 17th
Street, NW., Washington, DC 20429.
OTS: Michael D. Solomon, Senior
Program Manager for Capital Policy,
(202) 906–5654, David W. Riley, Project
Manager, Supervision Policy, (202) 906–
6669; or Teresa A. Scott, Counsel
(Banking and Finance), (202) 906–6478,
Office of Thrift Supervision, 1700 G
Street, NW., Washington, DC 20552.
SUPPLEMENTARY INFORMATION:
I. Background
An asset-backed commercial paper
(ABCP) program typically is a program
through which a banking organization
provides funding to its corporate
customers by sponsoring and
administering a bankruptcy-remote
special purpose entity that purchases
asset pools from, or extends loans to,
those customers. The asset pools in an
ABCP program may include, for
example, trade receivables, consumer
loans, or asset-backed securities. The
ABCP program raises cash to provide
funding to the banking organization’s
customers through the issuance of
commercial paper into the market.
Typically, the sponsoring banking
organization provides liquidity and
credit enhancements to the ABCP
program, which aids the program in
obtaining high quality credit ratings that
VerDate jul<14>2003 16:22 Sep 30, 2003 Jkt 200001 PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 E:\FR\FM\01OCR1.SGM 01OCR1
consolidated ABCP program assets from
their risk-weighted asset bases for the
purpose of calculating their risk-based
capital ratios. Sponsoring banking
organizations must continue to hold
risk-based capital against all other risk
exposures arising in connection with
ABCP programs, including direct credit
substitutes, recourse obligations,
residual interests, long-term liquidity
facilities, and loans, in accordance with
each agency’s existing risk-based capital
standards. In addition, any minority
interests in ABCP programs that are
consolidated as a result of FIN 46 are to
be excluded from sponsoring banking
organizations’ minority interest
component of tier 1 capital and, hence,
from total risk-based capital.
This interim capital treatment will be
applicaable only for the regulatory
reporting periods ending September 30
and December 31, 2003, and March 31,
2004. In addition, this interim capital
treatment does not alter the accounting
rules for balance sheet consolidation nor
does it affect the denominator of the tier
1 leverage capital ratio calculation,
which continues to be based primarily
on on-balance sheet assets as reported
under generally accepted accounting
principles (GAAP). Thus, as a result of
FIN 46, banking organizations must
include all assets of consolidated ABCP
programs in on-balance sheet assets for
purposes of calculating the tier 1
leverage capital ratio.
The agencies also have issued a
related notice of proposed rulemaking
published elsewhere in today’s Federal
Register, in which the agencies are
soliciting comments on a permanent
risk-based capital treatment for the risks
arising from ABCP programs.
DATES: This interim final rule is
effective October 1, 2003. Comments on
the interim final rule must be received
by November 17, 2003.
ADDRESSES: Comments should be
directed to:
OCC: You should send comments to
the Public Information Room, Office of
the Comptroller of the Currency,
Mailstop 1–5, Attention: Docket No. 03–
21, 250 E Street, SW., Washington, DC
20219. Due to delays in the delivery of
paper mail in the Washington area and
at the OCC, commenters are encouraged
to submit comments by fax or e-mail.
Comments may be sent by fax to (202)
874–4448, or by e-mail to
regs.comments@occ.treas.gov. You can
make an appointment to inspect and
photocopy the comments by calling the
Public Information Room at (202) 874–
5043.
Board: Comments should refer to
Docket No. R–1156 and may be mailed
to Ms. Jennifer J. Johnson, Secretary,
Board of Governors of the Federal
Reserve System, 20th and Constitution
Avenue, NW., Washington, DC 20551.
However, because paper mail in the
Washington area and at the Board of
Governors is subject to delay, please
consider submitting your comments by
e-mail to
regs.comments@federalreserve.gov, or
faxing them to the Office of the
Secretary at 202/452–3819 or 202/452–
3102. Members of the public may
inspect comments in Room MP–500 of
the Martin Building between 9 a.m. and
5 p.m. weekdays pursuant to § 261.12,
except as provided in § 261.14, of the
Board’s Rules Regarding Availability of
Information, 12 CFR 261.12 and 261.14.
FDIC: Written comments should be
addressed to Robert E. Feldman,
Executive Secretary, Attention:
Comments, Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429. Comments also
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.
Comments may be inspected and
photocopied in the FDIC Public
Information Center, Room 100, 801 17th
Street, NW., Washington, DC, between 9
a.m. and 4:30 p.m. on business days.
OTS: Send comments to Regulation
Comments, Chief Counsel’s Office,
Office of Thrift Supervision, 1700 G
Street, NW., Washington, DC 20552,
Attention: No. 2003–48.
Delivery: Hand deliver comments to
the Guard’s Desk, East Lobby Entrance,
1700 G Street, NW., from 9 a.m. to 4
p.m. on business days, Attention:
Regulation Comments, Chief Counsel’s
Office, Attention: No. 2003–48.
Facsimiles: Send facsimile
transmissions to FAX Number (202)
906–6518, Attention: No. 2003–48.
E-Mail: Send e-mails to
regs.comments@ots.treas.gov, Attention:
No. 2003–48 and include your name
and telephone number. Due to
temporary disruptions in mail service in
the Washington, DC area, commenters
are encouraged to send comments by fax
or e-mail, if possible.
Availability of comments: OTS will
post comments and the related index on
the OTS Internet Site at http://
www.ots.treas.gov. In addition, you may
inspect comments at the Public Reading
Room, 1700 G Street, NW., by
appointment. To make an appointment
for access, call (202) 906–5922, send an
e-mail to public.info@ots.treas.gov, or
send a facsimile transmission to (202)
906–7755. (Please identify the materials
you would like to inspect to assist us in
serving you.) We schedule
appointments on business days between
10 a.m. and 4 p.m. In most cases,
appointments will be available the
business day after the date we receive a
request.
FOR FURTHER INFORMATION CONTACT:
OCC: Amrit Sekhon, Risk Expert,
Capital Policy Division, (202) 874–5211;
Mauricio Claver-Carone, Attorney, or
Ron Shimabukuro, Special Counsel,
Legislative and Regulatory Activities
Division, (202) 874–5090, Office of the
Comptroller of the Currency, 250 E
Street, SW., Washington, DC 20219.
Board: Thomas R. Boemio, Senior
Supervisory Financial Analyst, (202)
452–2982, David Kerns, Supervisory
Financial Analyst, (202) 452–2428,
Barbara Bouchard, Assistant Director,
(202) 452–3072, Division of Banking
Supervision and Regulation; or Mark E.
Van Der Weide, Counsel, (202) 452–
2263, Legal Division. For the hearing
impaired only, Telecommunication
Device for the Deaf (TDD), (202) 263–
4869.
FDIC: Jason C. Cave, Chief, Policy
Section, Capital Markets Branch, (202)
898–3548, Robert F. Storch, Chief
Accountant, Division of Supervision
and Consumer Protection, (202) 898–
8906; Michael B. Phillips, Counsel,
Supervision and Legislation Branch,
Legal Division, (202) 898–3581, Federal
Deposit Insurance Corporation, 550 17th
Street, NW., Washington, DC 20429.
OTS: Michael D. Solomon, Senior
Program Manager for Capital Policy,
(202) 906–5654, David W. Riley, Project
Manager, Supervision Policy, (202) 906–
6669; or Teresa A. Scott, Counsel
(Banking and Finance), (202) 906–6478,
Office of Thrift Supervision, 1700 G
Street, NW., Washington, DC 20552.
SUPPLEMENTARY INFORMATION:
I. Background
An asset-backed commercial paper
(ABCP) program typically is a program
through which a banking organization
provides funding to its corporate
customers by sponsoring and
administering a bankruptcy-remote
special purpose entity that purchases
asset pools from, or extends loans to,
those customers. The asset pools in an
ABCP program may include, for
example, trade receivables, consumer
loans, or asset-backed securities. The
ABCP program raises cash to provide
funding to the banking organization’s
customers through the issuance of
commercial paper into the market.
Typically, the sponsoring banking
organization provides liquidity and
credit enhancements to the ABCP
program, which aids the program in
obtaining high quality credit ratings that
VerDate jul<14>2003 16:22 Sep 30, 2003 Jkt 200001 PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 E:\FR\FM\01OCR1.SGM 01OCR1