IFR for Regulation I

Reg I IFR 76 FR 78126 12162011.pdf

Regulation I: Disclosure Requirements for Depository Institutions Lacking Federal Deposit Insurance (12 CFR 1009)

IFR for Regulation I

OMB: 3170-0062

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78126

Federal Register / Vol. 76, No. 242 / Friday, December 16, 2011 / Rules and Regulations

be furnished to the appropriate state
official, to the Federal authorities
responsible for enforcement of the
requirements of the Act, and to the
Attorney General of the United States.
The revocation shall become effective,
and the class of debt collection practices
affected within that state shall become
subject to the requirements of sections
803 through 812 of the Act, 90 days after
the date of publication of the notice in
the Federal Register.
Subpart B—[Reserved]
Dated: October 24, 2011.
Alastair M. Fitzpayne,
Deputy Chief of Staff and Executive Secretary,
Department of the Treasury.
[FR Doc. 2011–31733 Filed 12–15–11; 8:45 am]
BILLING CODE 4810–AM–P

BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1009
[Docket No. CFPB–2011–0024]
RIN 3170–AA06

Disclosure Requirements for
Depository Institutions Lacking
Federal Deposit Insurance
(Regulation I)
Bureau of Consumer Financial
Protection.
ACTION: Interim final rule with request
for public comment.
AGENCY:

Title X of the Dodd-Frank
Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act)
transferred rulemaking authority for a
number of consumer financial
protection laws from seven Federal
agencies to the Bureau of Consumer
Financial Protection (Bureau) as of July
21, 2011. The Bureau is in the process
of republishing the regulations
implementing those laws with technical
and conforming changes to reflect the
transfer of authority and certain other
changes made by the Dodd-Frank Act.
In light of the transfer of the Federal
Trade Commission’s (Commission’s)
rulemaking authority for section 43(b)–
(f) of the Federal Deposit Insurance Act
(FDIA) to the Bureau, the Bureau is
publishing for public comment an
interim final rule establishing a new
Regulation I (Disclosure Requirements
for Depository Institutions Lacking
Federal Deposit Insurance). This interim
final rule does not impose any new
substantive obligations on persons
subject to the existing regulations,
previously published by the
Commission.

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SUMMARY:

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This interim final rule is
effective December 30, 2011. Comments
must be received on or before February
14, 2012.
ADDRESSES: You may submit comments,
identified by Docket No. CFPB–2011–
0024 or RIN 3170–AA06, by any of the
following methods:
• Electronic: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Monica Jackson, Office of the
Executive Secretary, Consumer
Financial Protection Bureau, 1500
Pennsylvania Avenue NW., (Attn: 1801
L Street), Washington, DC 20220.
• Hand Delivery/Courier in Lieu of
Mail: Monica Jackson, Office of the
Executive Secretary, Bureau of
Consumer Financial Protection, 1700 G
Street NW., Washington, DC 20006.
All submissions must include the
agency name and docket number or
Regulatory Information Number (RIN)
for this rulemaking. In general, all
comments received will be posted
without change to http://
www.regulations.gov. In addition,
comments will be available for public
inspection and copying at 1700 G Street
NW., Washington, DC 20006, on official
business days between the hours of
10 a.m. and 5 p.m. Eastern Time. You
can make an appointment to inspect the
documents by telephoning (202) 435–
7275.
All comments, including attachments
and other supporting materials, will
become part of the public record and
subject to public disclosure. Sensitive
personal information, such as account
numbers or social security numbers,
should not be included. Comments will
not be edited to remove any identifying
or contact information.
FOR FURTHER INFORMATION CONTACT:
Krista Ayoub or Jane Gao, Office of
Regulations, at (202) 435–7700.
SUPPLEMENTARY INFORMATION:
DATES:

I. Background
The Federal Deposit Insurance Act
(FDIA),1 among other things, establishes
the Federal Deposit Insurance
Corporation which must insure the
deposits of banks and savings
associations entitled to the benefits of
insurance under the FDIA. Not all
depository institutions are required to
maintain Federal deposit insurance. The
FDIA requires that depository
institutions lacking Federal deposit
insurance make certain insurancerelated disclosures in periodic
statements, account records, locations
where deposits are normally received,
1 12

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and advertising.2 The FDIA also
requires such depository institutions to
obtain a written acknowledgment from
depositors regarding the institution’s
lack of Federal deposit insurance.3 Prior
to July 21, 2011, the FDIA required that
the Federal Trade Commission
(Commission), by regulation or order,
prescribe the manner and content of
these disclosures.
Historically, the disclosure
requirements required by the FDIA for
depository institutions lacking Federal
deposit insurance have been
implemented by the Commission in 16
CFR Part 320. The Dodd-Frank Wall
Street Reform and Consumer Protection
Act (Dodd-Frank Act) 4 amended a
number of consumer financial
protection laws, including the FDIA. In
addition to various substantive
amendments, the Dodd-Frank Act
transferred rulemaking authority for
implementing the disclosure
requirements for depository institutions
lacking Federal deposit insurance, as
described above, to the Bureau of
Consumer Financial Protection
(Bureau), effective July 21, 2011.5 See
sections 1061 and 1090 of the DoddFrank Act. Pursuant to the Dodd-Frank
Act and the FDIA, as amended, the
Bureau is publishing for public
comment an interim final rule
establishing a new Regulation I
(Disclosure Requirements for Depository
Institutions Lacking Federal Deposit
Insurance), 12 CFR Part 1009,
implementing the disclosure
requirements in the FDIA for depository
institutions lacking Federal deposit
insurance.
II. Summary of the Interim Final Rule
A. General
The interim final rule substantially
duplicates the Commission’s rule in 16
CFR Part 320 as the Bureau’s new
Regulation I, 12 CFR Part 1009, making
only certain non-substantive, technical,
formatting, and stylistic changes. To
minimize any potential confusion, other
than republishing the Commission’s
existing rule in 16 CFR Part 320 with
the Bureau’s part number, the Bureau is
preserving where possible the
numbering the Commission used in its
existing rule. Additionally, while this
interim final rule generally incorporates
the Commission’s existing regulatory
2 12

U.S.C. 1831t.

3 Id.
4 Public

Law 111–203,124 Stat. 1376 (2010).
section 1029 generally excludes
from this transfer of authority, subject to certain
exceptions, any rulemaking authority over a motor
vehicle dealer that is predominantly engaged in the
sale and servicing of motor vehicles, the leasing and
servicing of motor vehicles, or both.
5 Dodd-Frank

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Federal Register / Vol. 76, No. 242 / Friday, December 16, 2011 / Rules and Regulations
text, the rule has been edited as
necessary to reflect nomenclature and
other technical amendments required by
the Dodd-Frank Act. Notably, this
interim final rule does not impose any
new substantive obligations on
regulated entities.
B. Specific Changes
A paragraph that was not enumerated
in the Commission’s rule (16 CFR 320.5)
is enumerated as paragraph (c)(2) in
§ 1009.5, and other provisions in
§ 1009.5 are renumbered accordingly. In
§ 1009.7, the provision specifying
enforcement authority for the
requirements set forth in Regulation I is
revised from that in the Commission’s
rule (16 CFR 320.7) to reflect changes
made to the enforcement authority by
the Dodd-Frank Act. In addition,
references to the Commission and its
administrative structure have been
replaced with references to the Bureau.
Conforming edits have been made to
internal cross-references. Conforming
edits have also been made to reflect the
scope of the Bureau’s authority pursuant
to the FDIA to issue implementing
regulations for disclosures required of
depository institutions lacking Federal
deposit insurance, as amended by the
Dodd-Frank Act.
III. Legal Authority
A. Rulemaking Authority
The Bureau is issuing this interim
final rule pursuant to its authority under
the FDIA and the Dodd-Frank Act.
Effective July 21, 2011, section 1061 of
the Dodd-Frank Act transferred to the
Bureau all of the Commission’s
authority under an enumerated
consumer law to prescribe rules, issues
guidelines, conduct studies, or issue
reports.6 Section 43(b)–(f) of the FDIA is
an enumerated consumer law.7
Accordingly, effective July 21, 2011, the
authority of the Commission to issue
regulations pursuant to section 43(b)–(f)
of the FDIA transferred to the Bureau.8
Section 43(c) of the FDIA, as
amended, provides that the Bureau, by
regulation or order, must prescribe the
manner and content of disclosures
required under section 43 of the FDIA
6 Public

Law 111–203, section 1061(b)(5).
Section 1002(12)(I) (defining ‘‘enumerated
consumer laws’’ to include section 43(b)–(f) of the
FDIA).
8 Section 1066 of the Dodd-Frank Act grants the
Secretary of the Treasury interim authority to
perform certain functions of the Bureau. Pursuant
to that authority, Treasury is publishing this interim
final rule on behalf of the Bureau. Until this and
other interim final rules take effect, existing
regulations for which rulemaking authority
transferred to the Bureau continue to govern
persons covered by this rule. See 76 FR 43569 (July
21, 2011).

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that must be given by depository
institutions lacking Federal depository
insurance.9 In addition, section 43(d) of
the FDIA, as amended, authorizes the
Bureau, by regulation or order, to make
exceptions to certain disclosure
requirements set forth in section 43(b) of
the FDIA for any depository institution
that, within the United States, does not
receive initial deposits of less than an
amount equal to the standard maximum
deposit insurance amount from
individuals who are citizens or
residents of the United States, other
than money received in connection with
any draft or similar instrument issued to
transmit money.10
B. Authority To Issue an Interim Final
Rule Without Prior Notice and Comment
The Administrative Procedure Act
(APA) 11 generally requires public
notice and an opportunity to comment
before promulgation of substantive
regulations.12 The APA provides
exceptions to notice-and-comment
procedures, however, where an agency
for good cause finds that such
procedures are impracticable,
unnecessary, or contrary to the public
interest or when a rulemaking relates to
agency organization, procedure, and
practice.13 The Bureau finds that there
is good cause to conclude that providing
notice and opportunity for comment
would be unnecessary and contrary to
the public interest under these
circumstances. In addition, substantially
all the changes made by this interim
final rule, which were necessitated by
the Dodd-Frank Act’s transfer of FDIA
authority under section 43(c) and (d)
from the Commission to the Bureau,
relate to agency organization, procedure,
and practice and are thus exempt from
the APA’s notice-and-comment
requirements.
The Bureau’s good cause findings are
based on the following considerations.
As an initial matter, the Commission’s
existing regulation was a result of
notice-and-comment rulemaking to the
extent required. Moreover, the interim
final rule published today does not
impose any new, substantive obligations
on regulated entities. Rather, the interim
final rule only makes non-substantive,
technical changes to the existing text of
the regulation, such as renumbering,
changing internal cross-references, and
replacing appropriate nomenclature to
reflect the transfer of authority to the
9 Public Law 111–203, section 1090(2)(A); 12
U.S.C. 1831t(c).
10 Id. section 1090(2)(B); 12 U.S.C. 1831t(d).
11 5 U.S.C. 551 et seq.
12 5 U.S.C. 553(b), (c).
13 5 U.S.C. 553(b)(3)(A), (B).

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Bureau. Given the technical nature of
these changes, and the fact that the
interim final rule does not impose any
additional substantive requirements on
covered entities, an opportunity for
prior public comment is unnecessary. In
addition, recodifying the Commission’s
regulation to reflect the transfer of
authority to the Bureau will help
facilitate compliance with FDIA and its
implementing regulations, and the new
regulations will help reduce uncertainty
regarding the applicable regulatory
framework. Using notice-and-comment
procedures would delay this process
and thus be contrary to the public
interest.
The APA generally requires that rules
be published not less than 30 days
before their effective dates. See 5 U.S.C.
553(d). As with the notice and comment
requirement, however, the APA allows
an exception when ‘‘otherwise provided
by the agency for good cause found and
published with the rule.’’ 5 U.S.C.
553(d)(3). The Bureau finds that there is
good cause for providing less than 30
days notice here. A delayed effective
date would harm consumers and
regulated entities by needlessly
perpetuating discrepancies between the
amended statutory text and the
implementing regulation, thereby
hindering compliance and prolonging
uncertainty regarding the applicable
regulatory framework.14
In addition, delaying the effective
date of the interim final rule for 30 days
would provide no practical benefit to
regulated entities in this context and in
fact could operate to their detriment. As
discussed above, the interim final rule
published today does not impose any
new, substantive obligations on
regulated entities. Instead, the rule
makes only non-substantive, technical
changes to the existing text of the
regulation. Thus, regulated entities that
are already in compliance with the
existing rules will not need to modify
business practices as a result of this
rule.
C. Section 1022(b)(2) of the Dodd-Frank
Act
In developing the interim final rule,
the Bureau has conducted an analysis of
14 This interim final rule is one of 14 companion
rulemakings that together restate and recodify the
implementing regulations under 14 existing
consumer financial laws (part III.C, below, lists the
14 laws involved). In the interest of proper
coordination of this overall regulatory framework,
which includes numerous cross-references among
some of the regulations, the Bureau is establishing
the same effective date of December 30, 2011 for
those rules published on or before that date and
making those published thereafter (if any) effective
immediately.

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potential benefits, costs, and impacts.15
The Bureau believes that the interim
final rule will benefit consumers and
covered persons by updating and
recodifying the Commission’s rules in
16 CFR Part 320 to reflect the transfer
of authority to the Bureau and certain
other changes mandated by the DoddFrank Act. This will help facilitate
compliance with section 43(b)–(f) of the
FDIA and its implementing regulations
and help reduce any uncertainty
regarding the applicable regulatory
framework. The interim final rule will
not impose any new substantive
obligations on consumers or covered
persons and is not expected to have any
impact on consumers’ access to
consumer financial products and
services.
Although not required by the interim
final rule, covered entities may incur
some costs in updating compliance
manuals and related materials to reflect
the new numbering and other technical
changes reflected in the new Regulation
I. The Bureau has worked to reduce any
such burden by preserving the existing
numbering to the extent possible and
believes that such costs will likely be
minimal. These changes could be
handled in the short term by providing
a short, standalone summary alerting
users to the changes and in the long
term could be combined with other
updates at the firm’s convenience. The
Bureau intends to continue investigating
the possible costs to affected entities of
updating manuals and related materials
to reflect these changes and solicits
comments on this and other issues
discussed in this section.
The interim final rule will have no
unique impact on depository
institutions or credit unions with $10
billion or less in assets as described in
section 1026(a) of the Dodd-Frank Act.
Also, the interim final rule will have no
unique impact on rural consumers.
15 Section 1022(b)(2)(A) of the Dodd-Frank Act
addresses the consideration of the potential benefits
and costs of regulation to consumers and covered
persons, including the potential reduction of access
by consumers to consumer financial products or
services; the impact on depository institutions and
credit unions with $10 billion or less in total assets
as described in section 1026 of the Dodd-Frank Act;
and the impact on consumers in rural areas. Section
1022(b)(2)(B) requires that the Bureau ‘‘consult with
the appropriate prudential regulators or other
Federal agencies prior to proposing a rule and
during the comment process regarding consistency
with prudential, market, or systemic objectives
administered by such agencies.’’ The manner and
extent to which these provisions apply to interim
final rules and to costs, benefits, and impacts that
are compelled by statutory changes rather than
discretionary Bureau action is unclear.
Nevertheless, to inform this rulemaking more fully,
the Bureau performed the described analyses and
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In undertaking the process of
recodifying the Commission’s rules in
16 CFR Part 320, as well as regulations
implementing thirteen other existing
consumer financial laws,16 the Bureau
consulted the Federal Deposit Insurance
Corporation, the Office of the
Comptroller of the Currency, the
National Credit Union Administration,
the Board of Governors of the Federal
Reserve System, the Federal Trade
Commission, and the Department of
Housing and Urban Development,
including with respect to consistency
with any prudential, market, or systemic
objectives that may be administered by
such agencies.17 The Bureau also has
consulted with the Office of
Management and Budget for technical
assistance. The Bureau expects to have
further consultations with the
appropriate Federal agencies during the
comment period.
IV. Request for Comment
Although notice and comment
rulemaking procedures are not required,
the Bureau invites comments on this
notice. Commenters are specifically
encouraged to identify any technical
issues raised by the rule. The Bureau is
also seeking comment in response to a
notice published at 76 FR 75825 (Dec.
5, 2011) concerning its efforts to identify
priorities for streamlining regulations
that it has inherited from other Federal
agencies to address provisions that are
outdated, unduly burdensome, or
unnecessary.
V. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA),
as amended by the Small Business
Regulatory Enforcement Fairness Act of
1996, requires each agency to consider
the potential impact of its regulations on
small entities, including small
businesses, small governmental units,
16 The fourteen laws implemented by this and its
companion rulemakings are: the Consumer Leasing
Act, the Electronic Fund Transfer Act (except with
respect to section 920 of that Act), the Equal Credit
Opportunity Act, the Fair Credit Reporting Act
(except with respect to sections 615(e) and 628 of
that act), the Fair Debt Collection Practices Act,
Subsections (b) through (f) of section 43 of the
Federal Deposit Insurance Act, sections 502 through
509 of the Gramm-Leach-Bliley Act (except for
section 505 as it applies to section 501(b)), the
Home Mortgage Disclosure Act, the Real Estate
Settlement Procedures Act, the S.A.F.E. Mortgage
Licensing Act, the Truth in Lending Act, the Truth
in Savings Act, section 626 of the Omnibus
Appropriations Act, 2009, and the Interstate Land
Sales Full Disclosure Act.
17 In light of the technical but voluminous nature
of this recodification project, the Bureau focused
the consultation process on a representative sample
of the recodified regulations, while making
information on the other regulations available. The
Bureau expects to conduct differently its future
consultations regarding substantive rulemakings.

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and small not-for-profit organizations.18
The RFA generally requires an agency to
conduct an initial regulatory flexibility
analysis (IRFA) and a final regulatory
flexibility analysis (FRFA) of any rule
subject to notice-and-comment
rulemaking requirements, unless the
agency certifies that the rule will not
have a significant economic impact on
a substantial number of small entities.19
The Bureau also is subject to certain
additional procedures under the RFA
involving the convening of a panel to
consult with small business
representatives prior to proposing a rule
for which an IRFA is required.20
The IRFA and FRFA requirements
described above apply only where a
notice of proposed rulemaking is
required,21 and the panel requirement
applies only when a rulemaking
requires an IRFA.22 As discussed above
in part III, a notice of proposed
rulemaking is not required for this
rulemaking.
In addition, as discussed above, this
interim final rule has only a minor
impact on entities subject to Regulation
I. The rule imposes no new, substantive
obligations on covered entities.
Accordingly, the undersigned certifies
that this interim final rule will not have
a significant economic impact on a
substantial number of small entities.
VI. Paperwork Reduction Act
At the time it adopted its existing
regulation (16 CFR Part 320), the
Commission determined that the rule’s
disclosures and written
acknowledgement statements were a
‘‘public disclosure of information
originally supplied by the Federal
Government to the recipient for the
purpose of disclosure to the public,’’
and thus did not constitute a collection
of information for purposes of the
Paperwork Reduction Act, 44 U.S.C.
3501, et seq., as set forth in the Office
of Management and Budget
regulations.23 The Bureau has
determined that this interim final rule
does not impose any new recordkeeping
or reporting requirements on covered
institutions or members of the public
beyond those already imposed by the
Commission’s existing regulation.
Accordingly, this interim final rule
contains no collections of information
18 5

U.S.C. 601 et seq.
U.S.C. 603, 604.
20 5 U.S.C. 609.
21 5 U.S.C. 603(a), 604(a); 5 U.S.C. 553(b)(B).
22 5 U.S.C. 609(b).
23 5 CFR 1320.3(c)(2); see Disclosures for NonFederally Insured Depository Institutions Under the
Federal Deposit Insurance Corporation
Improvement Act (FDICIA), 75 FR 31682, 31686
(June 4, 2010).
19 5

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requiring approval under 44 U.S.C.
3501, et seq.
List of Subjects in 12 CFR Part 1009
Credit unions, Depository institutions,
Federal Deposit Insurance Act, Federal
Trade Commission Act, and Federal
deposit insurance.
Authority and Issuance
For the reasons set forth above, the
Bureau of Consumer Financial
Protection adds part 1009 to Chapter X
in Title 12 of the Code of Federal
Regulations to read as follows:

■

PART 1009—DISCLOSURE
REQUIREMENTS FOR DEPOSITORY
INSTITUTIONS LACKING FEDERAL
DEPOSIT INSURANCE
(REGULATION I)
Sec.
1009.1 Scope.
1009.2 Definitions.
1009.3 Disclosures in periodic statements
and account records.
1009.4 Disclosures in advertising and on
the premises.
1009.5 Disclosure acknowledgment.
1009.6 Exception for certain depository
institutions.
1009.7 Enforcement.
Authority: 12 U.S.C. 1831t, 5512, 5581.
§ 1009.1

Scope.

This part, known as Regulation I, is
issued by the Bureau of Consumer
Financial Protection. This part applies
to all depository institutions lacking
Federal deposit insurance. It requires
the disclosure of certain insurancerelated information in periodic
statements, account records, locations
where deposits are normally received,
and advertising. This part also requires
such depository institutions to obtain a
written acknowledgment from
depositors regarding the institution’s
lack of Federal deposit insurance.

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§ 1009.2

Definitions.

For purposes of this part:
Depository institution means any bank
or savings association as defined under
12 U.S.C. 1813, or any credit union
organized and operated according to the
laws of any state, the District of
Columbia, the several territories and
possessions of the United States, the
Panama Canal Zone, or the
Commonwealth of Puerto Rico, which
laws provide for the organization of
credit unions similar in principle and
objectives to Federal credit unions.
Lacking Federal deposit insurance
means the depository institution is
neither an insured depository
institution as defined in 12 U.S.C.
1813(c)(2), nor an insured credit union

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as defined in section 101 of the Federal
Credit Union Act, 12 U.S.C. 1752.
Standard maximum deposit
insurance amount means the maximum
amount of deposit insurance as
determined under section 11(a)(1) of the
Federal Deposit Insurance Act (12
U.S.C. 1821(a)(1)).
§ 1009.3 Disclosures in periodic
statements and account records.

Depository institutions lacking
Federal deposit insurance must include
a notice disclosing clearly and
conspicuously that the institution is not
federally insured, and that if the
institution fails, the Federal
Government does not guarantee that
depositors will get back their money, in
all periodic statements of account, on
each signature card, and on each
passbook, certificate of deposit, or share
certificate. For example, a notice would
comply with the requirement if it
conspicuously stated: ‘‘[Institution’s
name] is not federally insured. If it fails,
the Federal Government does not
guarantee that you will get your money
back.’’ The disclosures required by this
section must be clear and conspicuous
and presented in a simple and easy to
understand format, type size, and
manner.
§ 1009.4 Disclosures in advertising and on
the premises.

(a) Required disclosures. Each
depository institution lacking Federal
deposit insurance must include a clear
and conspicuous notice disclosing that
the institution is not federally insured:
(1) At each station or window where
deposits are normally received, its
principal place of business and all its
branches where it accepts deposits or
opens accounts (excluding automated
teller machines or point of sale
terminals), and on its main internet
page; and
(2) In all advertisements except as
provided in paragraph (c) of this
section.
(b) Format and type size. The
disclosures required by this section
must be clear and conspicuous and
presented in a simple and easy to
understand format, type size, and
manner.
(c) Exceptions. The following need
not include a notice that the institution
is not federally insured:
(1) Any sign, document, or other item
that contains the name of the depository
institution, its logo, or its contact
information, but only if the sign,
document, or item does not include any
information about the institution’s
products or services or information
otherwise promoting the institution; and

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(2) Small utilitarian items that do not
mention deposit products or insurance,
if inclusion of the notice would be
impractical.
§ 1009.5

Disclosure acknowledgment.

(a) New depositors obtained other
than through a conversion or merger.
With respect to any depositor who was
not a depositor at the depository
institution on or before October 13,
2006, and who is not a depositor as
described in paragraph (b) of this
section, a depository institution lacking
Federal deposit insurance may receive a
deposit for the account of such
depositor only if the institution has
obtained the depositor’s signed written
acknowledgement that:
(1) The institution is not federally
insured; and
(2) If the institution fails, the Federal
Government does not guarantee that the
depositor will get back the depositor’s
money.
(b) New depositors obtained through a
conversion or merger. With respect to a
depositor at a federally insured
depository institution that converts to,
or merges into, a depository institution
lacking Federal insurance after October
13, 2006, a depository institution
lacking Federal deposit insurance may
receive a deposit for the account of such
depositor only if:
(1) The institution has obtained the
depositor’s signed written
acknowledgement described in
paragraph (a) of this section; or
(2) The institution makes an attempt,
sent by mail no later than 45 days after
the effective date of the conversion or
merger, to obtain the acknowledgment.
In making such an attempt, the
institution must transmit to each
depositor who has not signed and
returned a written acknowledgement
described in paragraph (a) of this
section:
(i) A conspicuous card containing the
information described in paragraphs
(a)(1) and (2) of this section, and a line
for the signature of the depositor; and
(ii) Accompanying materials
requesting the depositor to sign the
card, and return the signed card to the
institution.
(c) Depositors obtained on or before
October 13, 2006. (1) Any depository
institution lacking Federal deposit
insurance may receive any deposit after
October 13, 2006, for the account of a
depositor who was a depositor on or
before that date only if:
(i) The depositor has signed a written
acknowledgement described in
paragraph (a) of this section; or
(ii) The institution has transmitted to
the depositor:

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Federal Register / Vol. 76, No. 242 / Friday, December 16, 2011 / Rules and Regulations

(A) A conspicuous card containing
the information described in paragraphs
(a)(1) and (2) of this section, and a line
for the signature of the depositor; and
(B) Accompanying materials
requesting that the depositor sign the
card, and return the signed card to the
institution.
(2) An institution described in
paragraph (c)(1) of this section must
have made the transmission described
in paragraph (c)(1)(ii) of this section via
mail not later than three months after
October 13, 2006. The institution must
have made a second identical
transmission via mail not less than 30
days, and not more than three months,
after the first transmission to the
depositor in accordance with paragraph
(c)(1)(ii) of this section, if the institution
has not, by the date of such mailing,
received from the depositor a card
referred to in paragraph (c)(1)(i) of this
section which has been signed by the
depositor.
(d) Format and type size. The
disclosures required by this section
must be clear and conspicuous and
presented in a simple and easy to
understand format, type size, and
manner.
§ 1009.6 Exception for certain depository
institutions.

The requirements of this part do not
apply to any depository institution
lacking Federal deposit insurance and
located within the United States that
does not receive initial deposits of less
than an amount equal to the standard
maximum deposit insurance amount
from individuals who are citizens or
residents of the United States, other
than money received in connection with
any draft or similar instrument issued to
transmit money.
§ 1009.7

Enforcement.

jlentini on DSK4TPTVN1PROD with RULES

Compliance with the requirements of
this part shall be enforced under the
Consumer Financial Protection Act of
2010, Public Law 111–203, Title X, 124
Stat. 1955, by the Bureau of Consumer
Financial Protection, subject to subtitle
B of the Consumer Financial Protection
Act of 2010, and under the Federal
Trade Commission Act, 15 U.S.C. 41 et
seq, by the Federal Trade Commission.
Dated: October 24, 2011.
Alastair M. Fitzpayne,
Deputy Chief of Staff and Executive Secretary,
Department of the Treasury.
[FR Doc. 2011–31732 Filed 12–15–11; 8:45 am]
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BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Parts 1014 and 1015
[Docket No. CFPB–2011–0027]
RIN 3170–AA06

Mortgage Acts and Practices—
Advertising (Regulation N); Mortgage
Assistance Relief Services (Regulation
O)
Bureau of Consumer Financial
Protection.
ACTION: Interim final rule with request
for public comment.
AGENCY:

Title X of the Dodd-Frank
Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act)
transferred rulemaking authority for a
number of consumer financial
protection laws from seven Federal
agencies to the Bureau of Consumer
Financial Protection (Bureau) as of July
21, 2011. The Bureau is in the process
of republishing the regulations
implementing those laws with technical
and conforming changes to reflect the
transfer of authority and certain other
changes made by the Dodd-Frank Act.
In light of the transfer of the Federal
Trade Commission’s (FTC’s) rulemaking
authority for section 626 of the Omnibus
Appropriations Act, 2009 (Omnibus
Appropriations Act) to the Bureau, the
Bureau is publishing for public
comment an interim final rule
establishing a new Regulation N
(Mortgage Acts and Practices—
Advertising Rule) and a new Regulation
O (Mortgage Assistance Relief Services
Rule). This interim final rule does not
impose any new substantive obligations
on persons subject to the existing
Mortgages Acts and Practices—
Advertising Rule or the existing
Mortgage Assistance Relief Services
Rule, previously published by the FTC.
DATES: This interim final rule is
effective December 30, 2011. Comments
must be received on or before February
14, 2012.
ADDRESSES: You may submit comments,
identified by Docket No. CFPB–2011–
0027 or RIN 3170–AA06, by any of the
following methods:
• Electronic: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Monica Jackson, Office of the
Executive Secretary, Bureau of
Consumer Financial Protection, 1500
Pennsylvania Ave. NW., (Attn: 1801 L
Street), Washington, DC 20220.
• Hand Delivery/Courier in Lieu of
Mail: Monica Jackson, Office of the
Executive Secretary, Bureau of
SUMMARY:

PO 00000

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Consumer Financial Protection, 1700 G
Street NW., Washington, DC 20006.
All submissions must include the
agency name and docket number or
Regulatory Information Number (RIN)
for this rulemaking. In general, all
comments received will be posted
without change to http://
www.regulations.gov. In addition,
comments will be available for public
inspection and copying at 1700 G Street
NW., Washington DC 20006, on official
business days between the hours of
10 a.m. and 5 p.m. Eastern Time. You
can make an appointment to inspect the
documents by telephoning (202) 435–
7275.
All comments, including attachments
and other supporting materials, will
become part of the public record and
subject to public disclosure. Sensitive
personal information, such as account
numbers or social security numbers,
should not be included. Comments will
not be edited to remove any identifying
or contact information.
FOR FURTHER INFORMATION CONTACT: Jane
Gao or Krista Ayoub, Office of
Regulations, at (202) 435–7700.
SUPPLEMENTARY INFORMATION:
I. Background
Congress enacted section 626 of the
Omnibus Appropriations Act, 2009
(Omnibus Appropriations Act) on
March 11, 2009 and directed the Federal
Trade Commission (FTC) to commence
a rulemaking proceeding within 90 days
of enactment with respect to mortgage
loans.1 On May 22, 2009, the enactment
of the Credit Card Accountability
Responsibility and Disclosure Act of
2009 2 clarified the FTC’s rulemaking
authority under the Omnibus
Appropriations Act to specify that the
FTC’s rulemaking based on its authority
pursuant to the Omnibus
Appropriations Act ‘‘shall relate to
unfair or deceptive acts or practices
regarding mortgage loans,’’ which may
involve loan modification and
foreclosure rescue services.3
1 Public L. 111–8, 123 Stat. 524 (2009). The
Omnibus Appropriations Act also directed the FTC
to use notice and comment procedures under
section 553 of the Administrative Procedure Act
(APA), 5 U.S.C. 553, to promulgate rules pursuant
to the Omnibus Appropriations Act in lieu of the
procedures set forth in section 18 of the FTC Act,
15 U.S.C. 57a. The FTC noted in its Advance Notice
of Proposed Rulemaking: Mortgage Acts and
Practices, 74 FR 26118 (June 1, 2009), that because
Omnibus Appropriations Act rulemaking is not
undertaken pursuant to section 18, 15 U.S.C. 57a(f),
Federal banking agencies are not required to
promulgate substantially similar regulations for
entities within their jurisdiction. Id. at 26119, note
2.
2 Public Law 111–24, 123 Stat. 1734 (2009).
3 Id. Section 511(a)(1)(B).

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