80 FR 57284 - Civil Monetary Penalty Inflation Adjustment
NATIONAL CREDIT UNION ADMINISTRATION Federal Register Volume 80, Issue 184 (September 23, 2015)
Federal Register Volume 80, Issue 184 (September 23, 2015)
| Page Range | 57284-57289 | |
| FR Document | 2015-24157 |
[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] ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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/. --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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\ -------------------------------------------------------------------------------------------------------------------------------------------------------- 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. -------------------------------------------------------------------------------------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \22\ 12 CFR 740.4(f); 12 CFR 741.4(k)(4)(i); 12 CFR 796.5(a)(2). --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \23\ 5 U.S.C. 553(b)(3)(B). \24\ 5 U.S.C. 553(d)(3). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \28\ 44 U.S.C. 3507(d); 5 CFR part 1320. --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \29\ Public Law 105-277, 112 Stat. 2681 (Oct. 21, 1998). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \30\ Public Law 104-121, 110 Stat. 857 (Mar. 29, 1996). \31\ 5 U.S.C. 551. --------------------------------------------------------------------------- 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
![57284 Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Rules and Regulations
2. Paperwork Reduction Act. List of Subjects in 12 CFR Part 704 calculating Tier 1 capital are also
Credit unions, Corporate credit deducted from net risk-weighted assets.
The Paperwork Reduction Act of 1995
unions, Reporting and recordkeeping * * * * *
(PRA) applies to rulemakings in which ■ 3. Amend § 704.7 by revising
requirements.
an agency by rule creates a new paragraph (c)(1)(i) and revising
paperwork burden or increases an Gerard Poliquin, paragraph (d)(1) to read as follows:
existing burden.4 For purposes of the Secretary of the Board.
PRA, a paperwork burden may take the § 704.7 Lending.
For the reasons discussed above, the
form of a reporting or recordkeeping National Credit Union Administration * * * * *
requirement, both referred to as amends 12 CFR part 704 as follows: (c) * * *
information collections. This rule does (1) * * *
not create any new burdens or increase PART 704—CORPORATE CREDIT (i) The maximum aggregate amount in
any existing burdens. Therefore, a PRA UNIONS unsecured loans and lines of credit from
analysis is not required. a corporate credit union to any one
■ 1. The authority citation for part 704 member credit union, excluding CLF-
3. Executive Order 13132 continues to read as follows: related bridge loans and pass-through
Authority: 12 U.S.C. 1766(a), 1781, and and guaranteed loans from the CLF and
Executive Order 13132 encourages
1789. the NCUSIF, must not exceed 50 percent
independent regulatory agencies to
■ 2. Amend § 704.2 by adding a of the corporate credit union’s total
consider the impact of their actions on
definition for CLF-related bridge loan in capital.
state and local interests. NCUA, an
independent regulatory agency as alphabetical order and revising the * * * * *
definitions of Net assets and Net risk- (d) * * *
defined in 44 U.S.C. 3502(5), voluntarily
weighted assets to read as follows: (1) Credit unions. A loan to a
complies with the executive order to
nonmember credit union, other than
adhere to fundamental federalism § 704.2 Definitions. through a loan participation with
principles. The rule does not have * * * * * another corporate credit union or a CLF-
substantial direct effects on the states, CLF-related bridge loan means related bridge loan, is only permissible
on the relationship between the national interim financing, extending up to ten if the loan is for an overdraft related to
government and the states, or on the business days, that a corporate credit the providing of correspondent services
distribution of power and union provides for a natural person pursuant to § 704.12. Generally, such a
responsibilities among the various credit union from the time the CLF loan will have a maturity of one
levels of government. NCUA has, approves a loan to the natural person business day.
therefore, determined that this rule does credit union until the CLF funds the * * * * *
not constitute a policy that has loan. To repay a CLF-related bridge [FR Doc. 2015–24160 Filed 9–22–15; 8:45 am]
federalism implications for purposes of loan, the borrowing natural person BILLING CODE 7535–01–P
the executive order. credit union assigns the proceeds of the
CLF advance to the corporate credit
4. Assessment of Federal Regulations union making the CLF-related bridge NATIONAL CREDIT UNION
and Policies on Families loan for the duration of the bridge loan. ADMINISTRATION
NCUA has determined that this rule * * * * *
Net assets means total assets less 12 CFR Parts 740, 741, 747, and 796
will not affect family well-being within
Central Liquidity Facility (CLF) stock RIN 3133–AE56
the meaning of section 654 of the
subscriptions, CLF-related bridge loans,
Treasury and General Government loans guaranteed by the National Credit
Appropriations Act, 1999, Public Law Civil Monetary Penalty Inflation
Union Share Insurance Fund (NCUSIF), Adjustment
105–277, 112 Stat. 2681 (1998). and member reverse repurchase
5. Small Business Regulatory transactions. For its own account, a AGENCY: National Credit Union
corporate credit union’s payables under Administration (NCUA).
Enforcement Fairness Act
reverse repurchase agreements and ACTION: Final rule.
The Small Business Regulatory receivables under repurchase
Enforcement Fairness Act of 1996 agreements may be netted out if the SUMMARY: The NCUA Board (Board) is
(SBREFA) provides generally for GAAP conditions for offsetting are met. amending its regulations to adjust the
congressional review of agency rules. A Also, any amounts deducted in maximum amount of each civil
reporting requirement is triggered in calculating Tier 1 capital are also monetary penalty (CMP) within its
deducted from net assets. jurisdiction to account for inflation.
instances where NCUA issues a final
This action, including the amount of the
rule as defined by Section 551 of the * * * * *
Net risk-weighted assets means risk- adjustments, is required under the
Administrative Procedure Act. NCUA Federal Civil Penalties Inflation
does not believe this final rule is a weighted assets less CLF stock
subscriptions, CLF-related bridge loans, Adjustment Act of 1990, as amended by
‘‘major rule’’ within the meaning of the the Debt Collection Improvement Act of
relevant sections of SBREFA. NCUA has loans guaranteed by the NCUSIF, and
member reverse repurchase 1996.
submitted the rule to the Office of
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transactions. For its own account, a DATES: This rule is effective September
Management and Budget for its 23, 2015.
determination in that regard. corporate credit union’s payables under
reverse repurchase agreements and FOR FURTHER INFORMATION CONTACT: Ian
receivables under repurchase Marenna, Trial Attorney, Office of
agreements may be netted out if the General Counsel, 1775 Duke Street,
GAAP conditions for offsetting are met. Alexandria, VA 22314, or by telephone
4 44 U.S.C. 3507(d); 5 CFR part 1320. Also, any amounts deducted in (703) 518–6540.
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![Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Rules and Regulations 57289
(b) The adjustments displayed in • Federal eRegulations Portal: Go to Special con-
paragraph (a) of this section apply to http://www.regulations.gov and follow dition num- Company/airplane model
acts occurring after the date of the online instructions for sending your ber
publication in the Federal Register. comments electronically. 23–237–SC Spectrum Aeronautical Model
PART 796—POST-EMPLOYMENT • Mail: Send comments to Docket S–40.
Operations, M–30, U.S. Department of 23–246–SC Cirrus Design Corporation
RESTRICTIONS FOR CERTAIN NCUA Model SF50.
EXAMINERS Transportation (DOT), 1200 New Jersey
Avenue SE., Room W12–140, West 23–253–SC Diamond Aircraft Industries
Model DA–40NG.
■ 7. The authority citation for part 796 Building Ground Floor, Washington,
continues to read as follows: DC, 20590–0001.
Comments Invited
Authority: 12 U.S.C. 1786(w). • Hand Delivery of Courier: Take
We invite interested people to take
■ 8. In § 796.5, paragraph (a)(2) is comments to Docket Operations in
part in this rulemaking by sending
revised to read as follows: Room W12–140 of the West Building
written comments, data, or views. The
Ground Floor at 1200 New Jersey most helpful comments reference a
§ 796.5 What are the penalties for violating Avenue SE., Washington, DC, between 9
these special post-employment specific portion of the special
a.m., and 5 p.m., Monday through conditions, explain the reason for any
restrictions?
Friday, except Federal holidays. recommended change, and include
(a) * * *
(2) Assessed a civil monetary penalty • Fax: Fax comments to Docket supporting data. We ask that you send
up to the amount specified in Operations at 202–493–2251. us two copies of written comments.
§ 747.1001 of this chapter. Privacy: The FAA will post all We will consider all comments we
* * * * * comments it receives, without change, receive on or before the closing date for
comments. We will consider comments
[FR Doc. 2015–24157 Filed 9–22–15; 8:45 am] to http://regulations.gov, including any
filed late if it is possible to do so
BILLING CODE 7535–01–P personal information the commenter
without incurring expense or delay. We
provides. Using the search function of
may change these special conditions
the docket Web site, anyone can find based on the comments we receive.
DEPARTMENT OF TRANSPORTATION and read the electronic form of all
comments received into any FAA Background
Federal Aviation Administration docket, including the name of the On September 9, 2008, Cirrus Design
individual sending the comment (or Corporation applied for a type
14 CFR Part 23 signing the comment for an association, certificate for their new Model SF50. On
[Docket No. FAA–2015–3881; Special business, labor union, etc.). DOT’s December 11, 2012, Cirrus Design
Conditions No. 23–267–SC] complete Privacy Act Statement can be Corporation requested to revise the
found in the Federal Register published SF50 part 23 certification basis to
Special Conditions: Cirrus Design on April 11, 2000 (65 FR 19477–19478), include amendment 23–62. The Cirrus
Corporation, SF50; Full Authority as well as at http://DocketsInfo.dot.gov. Design Corporation SF50 is a low-wing,
Digital Engine Control (FADEC) seven-seat, single-engine turbofan-
System Docket: Background documents or
comments received may be read at powered airplane. It incorporates an
AGENCY: Federal Aviation http://www.regulations.gov at any time. Electronic Flight Information System
Administration (FAA), DOT. Follow the online instructions for (EFIS), pressurized cabin, retractable
ACTION: Final special conditions; request gear, and a V-tail. The turbofan engine
accessing the docket or go to the Docket
for comments. is mounted on the upper fuselage/tail
Operations in Room W12–140 of the
cone along the aircraft centerline. It is
SUMMARY: These special conditions are West Building Ground Floor at 1200
constructed largely of carbon and
issued for the Cirrus Design Corporation New Jersey Avenue SE., Washington, fiberglass composite materials. Like
SF50 airplane. This airplane will have DC, between 9 a.m., and 5 p.m., Monday other Cirrus products, the SF50 includes
a novel or unusual design feature(s) through Friday, except Federal holidays. an airframe ballistic parachute system.
associated with the use of an electronic FOR FURTHER INFORMATION CONTACT: Jeff The model SF50 has a maximum
engine control system instead of a Pretz, Federal Aviation Administration, operating altitude of 28,000 feet, where
traditional mechanical control system. Small Airplane Directorate, ACE–111, it cruises at speeds up to 300 knots true
The applicable airworthiness 901 Locust, Room 301, Kansas City, MO airspeed. Its maximum operating limit
regulations do not contain adequate or 64106; telephone (816) 329–3239; speed (VMO) will not exceed 0.62 Mach.
appropriate safety standards for this facsimile (816) 329–4090. The maximum takeoff weight will be at
design feature. These special conditions or below 6,000 pounds with a range at
contain the additional safety standards SUPPLEMENTARY INFORMATION: The FAA economy cruise of roughly 1,000
that the Administrator considers has determined, in accordance with 5 nautical miles. Cirrus intends for the
necessary to establish a level of safety U.S.C. 553(b)(3)(B) and 553(d)(3), that SF50 to be certified for single-pilot
equivalent to that established by the notice and opportunity for prior public operations under 14 CFR parts 91 and
existing airworthiness standards. comment hereon are unnecessary 135 operating rules. The following
DATES: The effective date of these because the substance of these special operating conditions will be included:
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special conditions is September 23, conditions has been subject to the • Day and Night VFR
2015. public comment process in several prior • IFR
We must receive your comments by instances with no substantive comments • Flight Into Known Icing
October 23, 2015. received. The FAA therefore finds that The Cirrus Design Corporation SF50
ADDRESSES: Send comments identified good cause exists for making these airplane is equipped with a Williams
by docket number FAA–2015–3881 special conditions effective upon International FJ33–5A turbofan engine,
using any of the following methods: issuance. which uses an Electronic Engine Control
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Document Created: 2015-12-15 09:44:40
Document Modified: 2015-12-15 09:44:40
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule is effective September 23, 2015. | |
| Contact | Ian Marenna, Trial Attorney, Office of General Counsel, 1775 Duke Street, Alexandria, VA 22314, or by telephone (703) 518-6540. | |
| FR Citation | 80 FR 57284 | |
| RIN Number | 3133-AE56 | |
| CFR Citation | 12
CFR
740 12 CFR 741 12 CFR 747 12 CFR 796 | |
| CFR Associated | Advertisements; Credit Unions; Credit; Reporting and Recordkeeping Requirements; Share Insurance; Civil Monetary Penalties; Conflicts of Interest; Ethical Conduct and Government Employees |
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