RULES AND REGULATIONS
Title 10--BANKS AND BANKING
DEPARTMENT OF BANKING
[10 PA. CODE CHS. 11, 13, 17, 35 AND 41]
[28 Pa.B. 14]
The Department of Banking (Department), under the authority contained in sections 201 and 202 of the Department of Banking Code (71 P. S. §§ 733-201 and 733-202), section 103 of the Banking Code of 1965 (7 P. S. § 103) and section 12 of the Consumer Discount Company Act (7 P. S. § 6212), deletes the following regulations: §§ 13.2(b) and (c); 13.3(a)(3) and (b); 41.3(i); Chapter 11; Chapter 17; Chapter 35.
The regulations targeted for deletion have been deemed by the Department to be obsolete, preempted or unnecessary for the conduct of the business of banking or the making of consumer loans.
Explanation of Regulatory Requirements
The Department is unable to articulate the purposes of or necessity for the provisions listed as follows. These provisions are not enforced by Department examiners and are deemed to be unnecessary for the safety and soundness of regulated institutions. Furthermore, the Department is unable to ascertain any consumer protection which is derived from these subsections.
§ 13.2(b) and (c) (relating to participation in evidences of indebtedness and agreements for payment of money).
Department personnel are unable to articulate the purposes of or necessity for these provisions. These provisions are not enforced by Department examiners and are deemed by the Department to be unnecessary for the safe and sound conduct of the business of banking.
§ 13.3(a)(3) (relating to participants in pools of evidences of indebtedness or agreements for the payment of money).
Department personnel are unable to articulate the purposes of or necessity for these provisions. These provisions are not enforced by Department examiners and are deemed by the Department to be unnecessary for the safe and sound conduct of the business of banking. This regulation is substantially similar to another regulation being deleted, § 13.2(c).
This provision contributes little or nothing to the safety and soundness of State-chartered institutions. Additionally, this provision is not enforced by examiners and is deemed by the Department to be unnecessary for the safe and sound conduct of the business of banking.
Chapter 11 (relating to reserves against deposits).
Chapter 11 sets forth reserve requirements for State-chartered banking institutions. However, in light of more restrictive Federal regulations applicable to State-chartered banking institutions as found in regulation D, 12 CFR Part 204 (relating to reserve regulations of depository institutions (Regulation D)), this chapter is deemed to be obsolete.
Chapter 17 (relating to audits and examination).
Chapter 17 sets forth the minimum standards for director's audits of State-chartered banking institutions. This chapter is redundant and essentially meaningless. It sets forth no requirements other than notifying State-chartered institutions that the Department maintains instructions with regard to minimum requirements for internal audits.
Chapter 35 (relating to mortgage loans).
Chapter 35 sets forth restrictions on service charges and premiums charged by savings associations with regard to mortgage loans. In light of broad Federal preemption with regard to mortgage lending found in section 207(b)(11) the Depository Institution Deregulation and Monetary Control Act of 1980 (12 U.S.C.A. § 1735f-7a) and in the Alternative Mortgage Transaction Parity Act of 1982 (12 U.S.C.A. §§ 3801--3805), Chapter 35 is obsolete.
§ 41.3(i)-second sentence (relating to contracts with consumers).
The second sentence of § 41.3(i) requires consumer discount companies which are licensed by the Department to obtain a license for places of business at which payments are received from borrowers. This section has been overridden by recent amendments to the Consumer Discount Company Act (7 P. S. §§ 6201--6219). The amendment which nullifies the second sentence of § 41.3(i) is found at section 8 of the Consumer Discount Company Act (7 P. S. § 6208).
As the regulations targeted for elimination are largely obsolete, preempted or not enforced by the Department, the eliminations of these regulations will have no effect on the regulated community. Section 41.3(i) governs the extension of credit by the 620 licensed consumer discount companies in this Commonwealth. The rest of the regulations targeted for elimination are applicable to the 176 Pennsylvania-chartered banks, bank and trust companies and savings banks.
Cost and Paperwork Requirement
The regulations targeted for deletion are obsolete or preempted by other laws. Therefore, these regulations impose no cost or burdens to the regulated community and, thus, their elimination will have no effect on costs or paperwork requirements.
Summary of Comments and Responses on the Proposed Rulemaking
Notice of proposed rulemaking was published at 27 Pa.B. 1813 (April 12, 1997). During the public comment period, no public comments were received by the Department.
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on April 1, 1997, the Department submitted a copy of the proposed rulemaking to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the Senate Committee on Banking andInsurance and House Committee on Business and Economic Development. In compliance with section 5(b.1) of the Regulatory Review Act, the Department also provided IRRC and the Committees with other documentation. Neither the Committees nor the IRRC commented on the proposed version of this rulemaking. The regulations were deemed approved by IRRC.
Findings of the Department
The Department finds that:
(1) Public notice of proposed rulemaking was given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and regulations promulgated thereunder at 1 Pa. Code §§ 7.1 and 7.2.
(2) A public comment period was provided as required by law, but no comments were submitted.
(3) This rulemaking does not enlarge the purpose of the proposal published at 27 Pa.B. 1813.
The Department, acting under the authorizing statutes, orders that:
(a) The regulations of the Department, 10 Pa. Code Chapters 11, 13, 17, 35 and 41, are amended by deleting §§ 11.1--11.5, 13.2, 13.3, 17.1, 35.1--35.3 and amending § 41.3 to read as set forth at 27 Pa.B. 1813.
(b) The Secretary of the Department shall submit this order and 27 Pa.B. 1813 to the Office of General Counsel and the Office of the Attorney General for review and approval as to legality and form as required by law.
(c) The Secretary of the Department shall submit this order and 27 Pa.B. 1813 to IRRC and the Senate Committee on Banking and Insurance and House Committee on Business and Economic Development as required by the Regulatory Review Act.
(d) The Secretary of the Department shall certify this order and 27 Pa.B. 1813 and deposit them with the Legislative Reference Bureau, as required by law.
(e) This order shall take effect upon publication in the Pennsylvania Bulletin.
(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 27 Pa.B. 6385 (December 6, 1997).)
Fiscal Note: Fiscal Note 3-32 remains valid for the final adoption of the subject regulations.
[Pa.B. Doc. No. 98-8. Filed for public inspection January 2, 1998, 9:00 a.m.]
No part of the information on this site may be reproduced for profit or sold for profit.
This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.