80 FR 57284 - Civil Monetary Penalty Inflation Adjustment

NATIONAL CREDIT UNION ADMINISTRATION

Federal Register Volume 80, Issue 184 (September 23, 2015)

The NCUA Board (Board) is amending its regulations to adjust the maximum amount of each civil monetary penalty (CMP) within its jurisdiction to account for inflation. This action, including the amount of the adjustments, is required under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996.

[Federal Register Volume 80, Number 184 (Wednesday, September 23, 2015)]
[Rules and Regulations]
[Pages 57284-57289]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-24157]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Parts 740, 741, 747, and 796

RIN 3133-AE56


Civil Monetary Penalty Inflation Adjustment

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final rule.

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SUMMARY: The NCUA Board (Board) is amending its regulations to adjust 
the maximum amount of each civil monetary penalty (CMP) within its 
jurisdiction to account for inflation. This action, including the 
amount of the adjustments, is required under the Federal Civil 
Penalties Inflation Adjustment Act of 1990, as amended by the Debt 
Collection Improvement Act of 1996.

DATES: This rule is effective September 23, 2015.

FOR FURTHER INFORMATION CONTACT: Ian Marenna, Trial Attorney, Office of 
General Counsel, 1775 Duke Street, Alexandria, VA 22314, or by 
telephone (703) 518-6540.

[[Page 57285]]


SUPPLEMENTARY INFORMATION:

I. Legal Background
II. Mathematical Calculation of the Adjustments
III. Regulatory Procedures

I. Legal Background

    The Debt Collection Improvement Act of 1996 \1\ (DCIA) amended the 
Federal Civil Penalties Inflation Adjustment Act of 1990 \2\ (FCPIA 
Act) to require every federal agency to enact regulations that adjust 
each CMP provided by law under its jurisdiction by the rate of 
inflation at least once every four years. These periodic adjustments 
are to be calculated pursuant to the inflation adjustment formula in 
section 5(b) of the FCPIA Act. Section 6 of the FCPIA Act specifies 
that inflation-adjusted CMPs will only apply to violations that occur 
after the effective date of the adjustment.
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    \1\ Public Law 104-134, section 31001(s), 110 Stat. 1321-373 
(Apr. 26, 1996). The provision is codified at 28 U.S.C. 2461 note.
    \2\ Public Law 101-410, 104 Stat. 890 (Oct. 5, 1990), also 
codified at 28 U.S.C. 2461 note.
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    The inflation adjustment is based on the percentage increase in the 
Consumer Price Index for all urban customers (CPI-U) published by the 
Department of Labor.\3\ Specifically, section 5(b) of the FCPIA Act 
defines the term ``cost-of-living adjustment'' as ``the percentage (if 
any) for each civil monetary penalty by which--(1) the Consumer Price 
Index for the month of June of the calendar year preceding the 
adjustment, exceeds (2) the Consumer Price Index for the month of June 
of the calendar year in which the amount of such civil monetary penalty 
was last set or adjusted pursuant to law.'' The amount of each 
inflation adjustment must then be rounded to a number prescribed by 
section 5(a) of the FCPIA Act, depending on the amount of the CMP. In 
some cases, this rounding results in no increase to a particular CMP 
maximum amount.
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    \3\ The CPI-U is published by the Department of Labor, Bureau of 
Labor Statistics, and is available at its Web site: http://www.bls.gov/cpi/.
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II. Mathematical Calculation of the Adjustments

A. Inflation Percentage and Penalty Adjustment Calculations

    The Board recently became aware that NCUA last reviewed CMPs within 
its jurisdiction for inflation and made corresponding adjustments in 
2009,\4\ and that three CMPs have not previously been adjusted by NCUA. 
This failure to adjust the CMPs within the appropriate timeframe was 
inadvertent. The Board notes, however, that because NCUA has never 
assessed any CMPs at the maximum level, this delay has not affected any 
CMP assessed by the agency.
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    \4\ 74 FR 9349 (Mar. 4, 2009). NCUA also reviewed CMPs for 
inflation and made corresponding adjustments in 2000 and 2004. 65 FR 
57277 (Sept. 22, 2000), 69 FR 60077 (Oct. 7, 2004). All of the CMPs 
that were increased in 2004 were also increased in 2009. Because of 
the rounding procedure, not all CMPs that are reviewed for inflation 
are increased.
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    As noted above, in this final rule, the Board is correcting NCUA's 
oversight by reviewing and adjusting, as appropriate, all relevant 
CMPs. In addition, the Board is publishing a new maximum amount for an 
existing CMP that Congress modified in 2012. For this CMP and the three 
CMPs that have not previously been adjusted, the Board refers to the 
CPI-U for June of the year in which Congress set the amount of the CMP. 
For all other CMPs, the Board refers to the year that it last adjusted 
the maximum amount.
    Consistent with NCUA's 2009 CMP adjustments, the Board provides the 
inflation calculations in a table below. Following the table, the Board 
describes the three CMPs that it is adjusting for the first time and 
the CMP that Congress modified. The table to be published at 12 CFR 
747.1001 shows only the adjusted CMPs, not the calculations. The dollar 
amount in the far right column of the table is the new maximum for each 
CMP or the existing maximum for those CMPs that NCUA is not increasing 
because the rounding procedure in the FCPIA Act results in no increase 
to those maximums.

                                                         Calculation of Maximum CMP Adjustments
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      Percentage                       Adjusted
             Citation                 Description/Tier \5\     Current maximum ($)   increase (%)    Raw increase    increase ($)   Adjusted maximum ($)
                                                                                          \6\             ($)             \7\
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12 U.S.C. 1782(a)(3).............  Inadvertent failure to     2,200...............     38.3 (2000)             843           1,000  3,200.
                                    submit a report or the
                                    inadvertent submission
                                    of a false or misleading
                                    report.
12 U.S.C. 1782(a)(3).............  Non-inadvertent failure    22,000..............     38.3 (2000)           8,426           5,000  32,000.
                                    to submit a report or
                                    the non-inadvertent
                                    submission of a false or
                                    misleading report.
12 U.S.C. 1782(a)(3).............  Failure to submit a        Lesser of 1,300,000      10.5 (2009)         136,500         125,000  Lesser of 1,425,000
                                    report or the submission   or 1% of total CU                                                     or 1% of total CU
                                    of a false or misleading   assets.                                                               assets.
                                    report done knowingly or
                                    with reckless disregard.
12 U.S.C. 1782(d)(2)(A)..........  Tier 1 CMP for             2,200...............     38.3 (2000)             843           1,000  3,200.
                                    inadvertent failure to
                                    submit certified
                                    statement of insured
                                    shares and charges due
                                    to NCUSIF, or
                                    inadvertent submission
                                    of false or misleading
                                    statement.
12 U.S.C. 1782(d)(2)(B)..........  Tier 2 CMP for non-        22,000..............     38.3 (2000)           8,426           5,000  32,000.
                                    inadvertent failure to
                                    submit certified
                                    statement or submission
                                    of false or misleading
                                    statement.
12 U.S.C. 1782(d)(2)(C)..........  Tier 3 CMP for failure to  Lesser of 1,300,000      10.5 (2009)         136,500         125,000  Lesser of 1,425,000
                                    submit a certified         or 1% of total CU                                                     or 1% of total CU
                                    statement or the           assets.                                                               assets.
                                    submission of a false or
                                    misleading statement
                                    done knowingly or with
                                    reckless disregard.
12 U.S.C. 1785(a)(3).............  Non-compliance with        100.................     14.4 (2007)              14              10  110.
                                    insurance logo
                                    requirements.
12 U.S.C. 1785(e)(3).............  Non-compliance with NCUA   110.................     38.3 (2000)              42               0  110.
                                    security requirements.

[[Page 57286]]

 
12 U.S.C. 1786(k)(2)(A)..........  Tier 1 CMP for violations  7,500...............     10.5 (2009)             788           1,000  8,500.
                                    of law, regulation, and
                                    other orders or
                                    agreements.
12 U.S.C. 1786(k)(2)(B)..........  Tier 2 CMP for violations  37,500..............     10.5 (2009)           3,938           5,000  42,500.
                                    of law, regulation, and
                                    other orders or
                                    agreements and for
                                    recklessly engaging in
                                    unsafe or unsound
                                    practices or breaches of
                                    fiduciary duty.
12 U.S.C. 1786(k)(2)(C)..........  Tier 3 CMP for knowingly   1,375,000...........     10.5 (2009)         144,375         150,000  1,525,000.
                                    committing the
                                    violations under Tier 1
                                    or 2 (natural person).
12 U.S.C. 1786(k)(2)(C)..........  Tier 3 (same) (CU).......  Lesser of 1,375,000      10.5 (2009)         144,375         150,000  Lesser of 1,525,000
                                                               or 1% of total CU                                                     or 1% of total CU
                                                               assets.                                                               assets.
12 U.S.C. 1786(w)(5)(A)(ii)......  Non-compliance with        250,000.............     22.5 (2005)          56,250          25,000  275,000.
                                    senior examiner post-
                                    employment restrictions.
15 U.S.C. 1639e(k)...............  Non-compliance with        10,000..............      5.6 (2011)             560           1,000  11,000.
                                    appraisal independence
                                    standards (first
                                    violation).
15 U.S.C. 1639e(k)...............  Subsequent violations of   20,000..............      5.6 (2011)           1,120               0  20,000.
                                    the same.
42 U.S.C. 4012a(f)(5)............  Non-compliance with flood  2,000...............      2.9 (2012)              78               0  2,000.
                                    insurance requirements.
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B. Description of Initial Adjustments and Modified CMP

    NCUA recently determined that three penalties that it has not 
previously adjusted for inflation meet the definition of CMPs. Also, 
Congress has changed the amount and structure of one additional penalty 
that the Board has previously adjusted for inflation. Below, the Board 
describes the three CMPs that NCUA is reviewing for adjustment for the 
first time and the additional CMP that Congress changed in 2012. The 
Board does not describe the other CMPs included in the table above, as 
NCUA reviewed all of the other CMPs for inflation in 2009 and made 
adjustments as appropriate under the rounding procedure.
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    \5\ The table uses shorthand descriptions of CMP tiers. Refer to 
the U.S. Code citations for complete descriptions.
    \6\ The year that NCUA last adjusted the CMP or that Congress 
set it is shown in parentheses. With the exception of 12 U.S.C. 
1785(a)(3), 12 U.S.C. 1786(w)(5)(A)(ii), and 15 U.S.C. 1639e(k), 
NCUA reviewed all of the CMPs in the table for inflation in 2009. 
The rounding procedure described in the next footnote resulted in 
some of these CMPs remaining at the same level. The year in 
parentheses is the last year the maximum CMP was actually increased, 
or, for 15 U.S.C. 1639e(k) and 42 U.S.C. 4012a(f)(5), the year that 
Congress set the maximum CMP amounts. The percentage change used in 
this column to determine the raw increase in each CMP is the 
difference between the June 2014 CPI-U (238.343) and the CPI-U for 
June of the relevant year noted in parentheses, divided by the CPI-U 
for June of the relevant year. The CPI-U figures are available at 
http://www.bls.gov/cpi/.
    \7\ The FCPIA Act's rounding rules require that an increase of a 
CMP be rounded to the nearest multiple of: $10 in the case of 
penalties less than or equal to $100; $100 in the case of penalties 
greater than $100 but less than or equal to $1,000; $1,000 in the 
case of penalties greater than $1,000 but less than or equal to 
$10,000; $5,000 in the case of penalties greater than $10,000 but 
less than or equal to $100,000; $10,000 in the case of penalties 
greater than $100,000 but less than or equal to $200,000; and 
$25,000 in the case of penalties greater than $200,000. Section 5(a) 
of the FCPIA Act, 28 U.S.C. 2461 note. Also, the first adjustment of 
any penalty is limited to 10 percent of the maximum penalty amount. 
Public Law 104-134, Sec.  31001(s)(2), codified at 28 U.S.C. 2461 
note. The 10 percent cap only affects the increase of the CMP under 
12 U.S.C. 1786(w)(5)(A)(ii).
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1. 12 U.S.C. 1785(a)(3)
    Federally insured credit unions must display signs relating to the 
insurance of share accounts.\8\ Under the Federal Credit Union Act, the 
Board may impose a penalty of $100 for each day that a federally 
insured credit union violates this requirement or the Board's 
implementing regulations.\9\ The Board has prescribed regulations on 
this subject.\10\ Congress added this penalty to the Federal Credit 
Union Act in 2006,\11\ but it was not effective until 2007.\12\
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    \8\ 12 U.S.C. 1785(a)(1).
    \9\ 12 U.S.C. 1785(a)(3).
    \10\ 12 CFR 740.4.
    \11\ Public Law 109-173, section 2, 119 Stat. 3604-605 (Feb. 15, 
2006).
    \12\ Congress set the effective date for section 2 of Public Law 
109-173, including the penalty provision, as the date on which the 
final regulations required by section 2109(a)(2) of the Federal 
Insurance Reform Act of 2005 took effect. Id. Section 2(e). These 
regulations took effect on January 1, 2007. 71 FR 69323-01 (Nov. 30, 
2006). Accordingly, the Board refers to the CPI-U for June 2007 to 
adjust this CMP for inflation.
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2. 12 U.S.C. 1786(w)(5)(A)(ii)
    Congress amended the Federal Credit Union Act in 2004 to impose 
post-NCUA employment restrictions on NCUA senior examiners.\13\ The 
provision authorizes the Board to impose a CMP of not more than 
$250,000 in an administrative proceeding or civil action against former 
NCUA senior examiners who violate conflict-of-interest restrictions 
that apply to their post-NCUA employment.\14\ The Board has prescribed 
regulations to implement these restrictions and is making a conforming 
amendment to the penalty amount set forth in that part.\15\
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    \13\ Public Law 108-458, section 6303(c), 118 Stat. 3753-754 
(Dec. 17, 2004). Section 6303(d) stated that this provision would 
take effect at the end of the 12-month period following its 
enactment. The public law was enacted on December 17, 2004, so the 
CMP became effective in 2005. The Board uses the June 2005 CPI-U to 
adjust this CMP for inflation.
    \14\ 12 U.S.C. 1785(w)(5)(A)(ii).
    \15\ 12 CFR 796.5.
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3. 15 U.S.C. 1639e(k)
    The Dodd-Frank Wall Street Reform and Consumer Protection Act \16\

[[Page 57287]]

amended the Truth in Lending Act to establish independence standards 
for property appraisals. The provision authorizes the Board and other 
federal agencies to assess a civil penalty against persons who violate 
regulations implementing this law.\17\
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    \16\ Public L.aw 111-203, title XIV, section 1472(a), 124 Stat. 
2187-190 (Jul. 21, 2010). Title XIV, Section 1400(c) stated that any 
section or provision of that title would become effective once the 
regulation implementing the section or provision became effective. 
On October 28, 2010, the Board of Governors of the Federal Reserve 
System published an interim final rule to implement the appraisal 
independence section, as required by 15 U.S.C. 1639e(g)(2). 75 FR 
66554 (Oct. 28, 2010). The interim final rule had an effective date 
of December 27, 2010. Compliance with the new standards, however, 
was optional until April 2011, which means that the Board and other 
agencies could not have imposed a penalty for violating this law 
before 2011. Therefore, the Board refers to the June 2011 CPI-U to 
adjust this CMP for inflation.
    \17\ 15 U.S.C. 1639e(k) refers to 15 U.S.C. 1607(a), which 
authorizes the Board to enforce the appraisal independence 
requirements, among other provisions.
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4. 42 U.S.C. 4012a(f)(5)
    The Board is authorized to impose CMPs against a credit union that 
is found to have a pattern or practice of committing certain specified 
actions in violation of the National Flood Insurance Program. The Board 
first adjusted this CMP for inflation in 2000.\18\ At that time, 42 
U.S.C. 4012a(f)(5) authorized a $350 penalty for each violation, 
subject to an annual cap of $100,000. The Board also adjusted this CMP 
for inflation in 2004 \19\ and 2009.\20\ Congress amended this CMP in 
2012 to increase the amount per violation to $2,000 and eliminate the 
annual cap.\21\ NCUA's calculation of inflation results in no increase 
to this modified CMP, but the Board includes this description to 
explain that the CMP has changed.
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    \18\ 65 FR 57277 (Sept. 22, 2000).
    \19\ 69 FR 60077 (Oct. 7, 2004).
    \20\ 74 FR 9349 (Mar. 4, 2009).
    \21\ Public Law 112-141, section 100208, 126 Stat. 919 (Jul. 6, 
2012). The Board refers to the June 2012 CPI-U to adjust this CMP 
because Congress set the modified CMP in 2012.
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C. Conforming Amendments

    The Board is also making conforming amendments to other parts of 
NCUA's regulations that state a specific maximum dollar amount for a 
CMP.\22\ The final rule replaces the current specific dollar amounts 
with a non-numerical reference to the inflation-adjusted maximum 
amounts table at 12 CFR 747.1001.
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    \22\ 12 CFR 740.4(f); 12 CFR 741.4(k)(4)(i); 12 CFR 796.5(a)(2).
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III. Regulatory Procedures

A. Final Rule Under the Administrative Procedure Act

    The FCPIA Act requires adjustments of CMPs for inflation to occur 
at least every four years. Federal agencies have no discretion in 
calculating the adjustments. Thus, the Board cannot vary the amount of 
the adjustments to reflect any views or suggestions submitted by 
commenters. Further, the regulation is ministerial and technical. For 
all these reasons, public notice and comment for this new regulation is 
unnecessary, impracticable, and contrary to the public interest under 
the Administrative Procedure Act (APA).\23\ For the same reasons, there 
is no good cause to impose a 30-day delayed effective date requirement 
under the APA.\24\
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    \23\ 5 U.S.C. 553(b)(3)(B).
    \24\ 5 U.S.C. 553(d)(3).
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B. Regulatory Flexibility Act

    The Regulatory Flexibility Act requires the Board to prepare an 
analysis to describe any significant economic impact a regulation may 
have on a substantial number of small entities.\25\ For purposes of 
this analysis, the Board considers small credit unions to be those 
having under $50 million in assets.\26\ This final rule would not have 
a significant economic impact on a substantial number of small credit 
unions because it only affects the maximum amounts of CMPs that may be 
assessed in individual cases, which are not numerous and generally do 
not involve assessments at the maximum level. In addition, several of 
the CMPs are limited to a percentage of a credit union's assets. 
Finally, in assessing CMPs, the Board generally must consider a party's 
financial resources.\27\ Because this final rule would affect few, if 
any, small entities, the Board certifies that the final rule will not 
have a significant economic impact on small entities.
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    \25\ 5 U.S.C. 603(a).
    \26\ Interpretive Ruling and Policy Statement 03-2, 68 FR 31949 
(May 29, 2003), as amended by Interpretive Ruling and Policy 
Statement 13-1, 78 FR 4032 (Jan. 18, 2013).
    \27\ 12 U.S.C. 1786(k)(2)(G)(i).
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C. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in 
which an agency creates a new paperwork burden on regulated entities or 
modifies an existing burden.\28\ For purposes of the PRA, a paperwork 
burden may take the form of either a reporting or a recordkeeping 
requirement, both referred to as information collections. This final 
rule adjusts the maximum amounts of certain CMPs that the Board may 
assess against individuals, entities, or credit unions but does not 
require any reporting or recordkeeping. Therefore, this final rule will 
not create new paperwork burdens or modify any existing paperwork 
burdens.
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    \28\ 44 U.S.C. 3507(d); 5 CFR part 1320.
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D. Executive Order 13132

    Executive Order 13132 encourages independent regulatory agencies to 
consider the impact of their actions on state and local interests. In 
adherence to fundamental federalism principles, NCUA, an independent 
regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies 
with the executive order. This final rule adjusts the maximum amounts 
of certain CMPs that the Board may assess against individuals, 
entities, and federally insured credit unions, including state-
chartered credit unions. However, the final rule does not create any 
new authority or alter the underlying statutory authorities that enable 
the Board to assess CMPs. Accordingly, this rule will not have a 
substantial direct effect on the states, on the connection between the 
national government and the states, or on the distribution of power and 
responsibilities among the various levels of government. The Board has 
determined this rule does not constitute a policy that has federalism 
implications for purposes of the executive order.

E. Assessment of Federal Regulations and Policies on Families

    The Board has determined that this final rule will not affect 
family well-being within the meaning of Section 654 of the Treasury and 
General Government Appropriations Act, 1999.\29\
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    \29\ Public Law 105-277, 112 Stat. 2681 (Oct. 21, 1998).
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F. Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act of 1996 \30\ 
(SBREFA) provides generally for congressional review of agency rules. A 
reporting requirement is triggered in instances where the Board issues 
a final rule as defined by Section 551 of the Administrative Procedure 
Act.\31\ The Office of Management and Budget has determined that this 
final rule is not a ``major rule'' within the meaning of the relevant 
sections of SBREFA.
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    \30\ Public Law 104-121, 110 Stat. 857 (Mar. 29, 1996).
    \31\ 5 U.S.C. 551.
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List of Subjects

12 CFR Part 740

    Advertisements, Credit unions.

12 CFR Part 741

    Credit, Credit unions, Reporting and recordkeeping requirements, 
Share insurance.

12 CFR Part 747

    Credit unions, Civil monetary penalties.

[[Page 57288]]

12 CFR Part 796

    Conflicts of interest, Credit unions, Ethical conduct, Government 
employees.

    By the National Credit Union Administration Board on September 
17, 2015.
Gerard S. Poliquin,
Secretary of the Board.

    For the reasons stated above, the NCUA Board amends 12 CFR parts 
740, 741, 747, and 796 as follows:

PART 740--ACCURACY OF ADVERTISING AND NOTICE OF INSURED STATUS

0
1. The authority citation for part 740 continues to read as follows:

    Authority:  12 U.S.C. 1766, 1781, 1785, and 1789.

0
2. In Sec.  740.4, paragraph (f) is revised to read as follows:


Sec.  740.4  Requirements for the official sign.

* * * * *
    (f) An insured credit union that fails to comply with Section 
205(a) of the Federal Credit Union Act regarding the official sign, 12 
U.S.C. 1785(a), or any requirement in this part is subject to a daily 
penalty in the amount set forth in Sec.  747.1001 of this chapter.

PART 741--REQUIREMENTS FOR INSURANCE

0
3. The authority citation for part 741 continues to read as follows:

    Authority:  12 U.S.C. 1757, 1766(a), 1781-1790, and 1790d; 31 
U.S.C. 3717.


0
4. In Sec.  741.4, paragraph (k)(4)(i) is revised to read as follows:


Sec.  741.4  Insurance premium and one percent deposit.

* * * * *
    (k) * * *
    (4) * * *
    (i) Section 202(d)(2)(B) of the Act (12 U.S.C. 1782(d)(2)(B)) 
provides that the Board may assess and collect a penalty from an 
insured credit union, up to the amount specified in Sec.  747.1001 of 
this chapter, for each day the credit union fails or refuses to pay any 
deposit or premium due to the fund; and
* * * * *

PART 747--ADMINISTRATIVE ACTIONS, ADJUDICATIVE HEARINGS, RULES OF 
PRACTICE AND PROCEDURE, AND INVESTIGATIONS

0
5. The authority for part 747 is revised to read as follows:

    Authority:  12 U.S.C. 1766, 1782, 1784, 1785, 1786, 1787, 1790a, 
1790d; 15 U.S.C. 1639e; 42 U.S.C. 4012a; Pub. L. 101-410; Pub. L. 
104-134; Pub. L. 109-351; 120 Stat. 1966.

0
6. Section 747.1001 is revised to read as follows:


Sec.  747.1001  Adjustment of civil monetary penalties by the rate of 
inflation.

    (a) NCUA is required by the Federal Civil Penalties Inflation 
Adjustment Act of 1990 (Pub. L. 101-410, 104 Stat. 890, as amended (28 
U.S.C. 2461 note)) to adjust the maximum amount of each civil monetary 
penalty within its jurisdiction by the rate of inflation. The following 
chart displays those adjustments, as calculated pursuant to the 
statute:

------------------------------------------------------------------------
                                                           New maximum
      U.S. Code citation            CMP description          amount
------------------------------------------------------------------------
(1) 12 U.S.C. 1782(a)(3)......  Inadvertent failure to  $3,200.
                                 submit a report or
                                 the inadvertent
                                 submission of a false
                                 or misleading report.
(2) 12 U.S.C. 1782(a)(3)......  Non-inadvertent         $32,000.
                                 failure to submit a
                                 report or the non-
                                 inadvertent
                                 submission of a false
                                 or misleading report.
(3) 12 U.S.C. 1782(a)(3)......  Failure to submit a     $1,425,000 or 1
                                 report or the           percent of the
                                 submission of a false   total assets of
                                 or misleading report    the credit
                                 done knowingly or       union,
                                 with reckless           whichever is
                                 disregard.              less.
(4) 12 U.S.C. 1782(d)(2)(A)...  Tier 1 CMP for          $3,200.
                                 inadvertent failure
                                 to submit certified
                                 statement of insured
                                 shares and charges
                                 due to NCUSIF, or
                                 inadvertent
                                 submission of false
                                 or misleading
                                 statement.
(5) 12 U.S.C. 1782(d)(2)(B)...  Tier 2 CMP for non-     $32,000.
                                 inadvertent failure
                                 to submit certified
                                 statement or
                                 submission of false
                                 or misleading
                                 statement.
(6) 12 U.S.C. 1782(d)(2)(C)...  Tier 3 CMP for failure  $1,425,000 or 1
                                 to submit a certified   percent of the
                                 statement or the        total assets of
                                 submission of a false   the credit
                                 or misleading           union,
                                 statement done          whichever is
                                 knowingly or with       less.
                                 reckless disregard.
(7) 12 U.S.C. 1785(a)(3)......  Non-compliance with     $110.
                                 insurance logo
                                 requirements.
(8) 12 U.S.C. 1785(e) (3).....  Non-compliance with     $110.
                                 NCUA security
                                 requirements.
(9) 12 U.S.C. 1786(k)(2)(A)...  Tier 1 CMP for          $8,500.
                                 violations of law,
                                 regulation, and other
                                 orders or agreements.
(10) 12 U.S.C. 1786(k)(2)(A)..  Tier 2 CMP for          $42,500.
                                 violations of law,
                                 regulation, and other
                                 orders or agreements
                                 and for recklessly
                                 engaging in unsafe or
                                 unsound practices or
                                 breaches of fiduciary
                                 duty.
(11) 12 U.S.C. 1786(k)(2)(A)..  Tier 3 CMP for          For a person
                                 knowingly committing    other than an
                                 the violations under    insured credit
                                 Tier 1 or 2 (natural    union:
                                 person).                $1,525,000; For
                                                         an insured
                                                         credit union:
                                                         $1,525,000 or 1
                                                         percent of the
                                                         total assets of
                                                         the credit
                                                         union,
                                                         whichever is
                                                         less.
(12) 12 U.S.C. 1786(w)(5)(ii).  Non-compliance with     $275,000.
                                 senior examiner post-
                                 employment
                                 restrictions.
(13) 15 U.S.C. 1639e(k).......  Non-compliance with     First violation:
                                 appraisal               $11,000
                                 independence            Subsequent
                                 requirements.           violations:
                                                         $20,000.
(14) 42 U.S.C. 4012a(f)(5)....  Non-compliance with     $2,000.
                                 flood insurance
                                 requirements.
------------------------------------------------------------------------


[[Page 57289]]

    (b) The adjustments displayed in paragraph (a) of this section 
apply to acts occurring after the date of publication in the Federal 
Register.

PART 796--POST-EMPLOYMENT RESTRICTIONS FOR CERTAIN NCUA EXAMINERS

0
7. The authority citation for part 796 continues to read as follows:

    Authority:  12 U.S.C. 1786(w).


0
8. In Sec.  796.5, paragraph (a)(2) is revised to read as follows:


Sec.  796.5  What are the penalties for violating these special post-
employment restrictions?

    (a) * * *
    (2) Assessed a civil monetary penalty up to the amount specified in 
Sec.  747.1001 of this chapter.
* * * * *
[FR Doc. 2015-24157 Filed 9-22-15; 8:45 am]
 BILLING CODE 7535-01-P