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Federal Register / Vol. 86, No. 21 / Wednesday, February 3, 2021 / Rules and Regulations obligations in 390.252. Therefore, the FDIC believes that the rescission of 390.252 is unlikely to have any substantive effect on small State savings associations or their subsidiaries.
Section 390.253 establishes notification requirements for State savings associations prior to their establishing, acquiring or engaging in new activities of a subsidiary as required under section 18m of the FDI
Act.62 As discussed previously, State savings associations are already subject to substantively similar requirements in 362.15. Therefore, the FDIC believes that the rescission of 390.253 is unlikely to pose any substantive effects on small State savings associations.
Section 362.15 established notification requirements for State and Federal savings associations prior to their establishing or acquiring a subsidiary, or conducting any new activity through a subsidiary. As discussed previously, after the Dodd Frank Act amendment of section 18m of the FDI Act, Federal savings associations are no longer required to provide notice to the FDIC prior to the establishment, or acquisition, of a subsidiary, or prior to the commencement of a new activity in a subsidiary controlled by a Federal savings association.63 Therefore, the FDIC believes that the rescission of references to Federal savings associations from 362.15 is unlikely to have any substantive effect on small insured depository institutions in that it is simply consistent with existing law.
Section 390.254 permits a State savings association subsidiary to issue, either directly or through a third party intermediary, any securities that its parent State savings association is permitted to issue. As discussed previously, although there is no corollary regulation for FDIC-supervised depository institutions, State savings association subsidiaries are permitted to issue securities pursuant to section 28 of the FDI Act because the operating subsidiaries and service corporations of Federal savings associations are permitted to issue securities, subject to regulatory limitations. Therefore, the FDIC believes that the rescission of 390.254, if adopted, is unlikely to have any substantive effect on small State savings associations or their subsidiaries.
Section 390.255 generally permits a State savings association to notify the FDIC at least 30 days before making a contribution or a loan including a guarantee of a loan made by any other 62 12

CFR 390.253. See 12 U.S.C. 1828m1.
63 12 U.S.C. 1828m.

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person to a lower-tier entity salvage investment that exceeds the maximum amount otherwise permitted under law or regulation to exercise its power to salvage the underlying asset typically, an outstanding loan.64 As discussed previously, State savings associations are currently subject to 362.11 which requires State savings associations to seek prior approval from the FDIC
before making a contribution or a loan to a lower-tier entity salvage investment that exceeds the maximum amount otherwise permitted under law or regulation to exercise its power to salvage the underlying asset to be consistent with State law. Therefore, the FDIC believes that the rescission of 390.255 is unlikely to substantively affect small State savings associations.
By removing duplicative or unnecessary regulations, the FDIC
believes that the rule will benefit small State savings associations by clarifying regulations and improving the ease of references.
C. The Congressional Review Act For purposes of Congressional Review Act, the OMB makes a determination as to whether a final rule constitutes a major rule. If a rule is deemed a major rule by the OMB, the Congressional Review Act generally provides that the rule may not take effect until at least 60
days following its publication.
The Congressional Review Act defines a major rule as any rule that the Administrator of the Office of Information and Regulatory Affairs of the OMB finds has resulted in or is likely to result in: A An annual effect on the economy of $100,000,000 or more; B a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies or geographic regions, or C significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreignbased enterprises in domestic and export markets.
The OMB has determined that the final rule is not a major rule for purposes of the Congressional Review Act and the FDIC will submit the final rule and other appropriate reports to Congress and the Government Accountability Office for review.
64 Without the salvage power provision, the maximum amount a State savings association would be permitted would be related the LTOB
limit, which is equivalent to the applicable states legal lending limit.

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D. Plain Language Section 722 of the Gramm-LeachBliley Act 65 requires each Federal banking agency to use plain language in all of its proposed and final rules published after January 1, 2000. As a Federal banking agency subject to the provisions of this section, the FDIC has sought to present the final rule in a simple and straightforward manner and did not receive any comments on the use of plain language.
E. The Economic Growth and Regulatory Paperwork Reduction Act Under section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 EGRPRA, the FDIC is required to review all of its regulations, at least once every 10 years, in order to identify any outdated or otherwise unnecessary regulations imposed on insured institutions.66 The FDIC, along with the other Federal banking agencies, submitted a Joint Report to Congress on March 21, 2017, EGRPRA Report discussing how the review was conducted, what has been done to date to address regulatory burdens, and further measures that will be taken to address issues that were identified. As noted in the EGRPRA
Report, the FDIC is continuing to streamline and clarify its regulations through the OTS rule integration process. By removing outdated or unnecessary regulations, such as subpart O, this final rule complements other actions the FDIC has taken, separately and with the other Federal banking agencies, to further the EGRPRA mandate.
F. Riegle Community Development and Regulatory Improvement Act of 1994
Pursuant to section 302a of the Riegle Community Development and Regulatory Improvement Act RCDRIA, in determining the effective date and administrative compliance requirements for new regulations that impose additional reporting, disclosure, or other requirements on insured depository institutions IDIs, each Federal banking agency must consider, consistent with principles of safety and soundness and the public interest, any administrative burdens that such regulations would place on depository institutions, including small depository institutions, and customers of depository institutions, as well as the benefits of such regulations. In addition, section 302b of RCDRIA requires new regulations and amendments to 65 Public Law 106102, 113 Stat. 1338, 1471
codified at 12 U.S.C. 4809.
66 Public Law 104208, 110 Stat. 3009 1996.

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