80 FR 73947 - Truth in Lending (Regulation Z)
FEDERAL RESERVE SYSTEM
BUREAU OF CONSUMER FINANCIAL PROTECTION Federal Register Volume 80, Issue 228 (November 27, 2015)
BUREAU OF CONSUMER FINANCIAL PROTECTION
Federal Register Volume 80, Issue 228 (November 27, 2015)
| Page Range | 73947-73949 | |
| FR Document | 2015-30091 |
[Federal Register Volume 80, Number 228 (Friday, November 27, 2015)] [Rules and Regulations] [Pages 73947-73949] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-30091] ----------------------------------------------------------------------- FEDERAL RESERVE SYSTEM 12 CFR Part 226 [Docket No. R-1520] RIN 7100 AE-36 BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1026 Truth in Lending (Regulation Z) AGENCIES: Board of Governors of the Federal Reserve System (Board); and Bureau of Consumer Financial Protection (Bureau). ACTION: Final rules, official interpretations and commentary. ----------------------------------------------------------------------- SUMMARY: The Board and the Bureau are publishing final rules amending the official interpretations and commentary for the agencies' regulations that implement the Truth in Lending Act (TILA). The Dodd- Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amended TILA by requiring that the dollar threshold for exempt consumer credit transactions be adjusted annually by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If there is no annual percentage increase in the CPI-W, the Board and Bureau will not adjust this exemption threshold from the prior year. Based on the annual percentage decrease in the CPI-W as of June 1, 2015, the exemption threshold will remain at $54,600 through December 31, 2016. Because the Dodd-Frank Act also requires similar adjustments in the Consumer Leasing Act's threshold for exempt consumer leases, the Board and the Bureau are making similar amendments to each of their respective regulations implementing the Consumer Leasing Act elsewhere in this issue of the Federal Register. DATES: This final rule is effective January 1, 2016. FOR FURTHER INFORMATION CONTACT: Board: Vivian W. Wong, Counsel, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, at (202) 452-3667; for users of Telecommunications Device for the Deaf (TDD) only, contact (202) 263- 4869. Bureau: James Wylie, Counsel, Office of Regulations, Bureau of Consumer Financial Protection, at (202) 435-7700. SUPPLEMENTARY INFORMATION: I. Background The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) increased the threshold in the Truth in Lending Act (TILA) for exempt consumer credit transactions \1\ from $25,000 to $50,000, effective July 21, 2011.\2\ In addition, the Dodd-Frank Act requires that this threshold be adjusted annually for inflation by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as published by the Bureau of Labor Statistics. In April 2011, the Board issued a final rule amending Regulation Z (which implements TILA) consistent [[Page 73948]] with these provisions of the Dodd-Frank Act along with a similar final rule amending Regulation M (which implements the Consumer Leasing Act) (collectively, the Board Final Threshold Rules).\3\ --------------------------------------------------------------------------- \1\ Although consumer credit transactions above the threshold are generally exempt, loans secured by real property or by personal property used or expected to be used as the principal dwelling of a consumer and private education loans are covered by TILA regardless of the loan amount. See 12 CFR 226.3(b)(1)(i) and 12 CFR 1026.3(b)(1)(i). \2\ Public Law 111-203 section 1100E, 124 Stat. 1376 (2010). \3\ 76 FR 18354 (Apr. 4, 2011); 76 FR 18349 (Apr. 4, 2011). --------------------------------------------------------------------------- Title X of the Dodd-Frank Act transferred rulemaking authority for a number of consumer financial protection laws from the Board to the Bureau, effective July 21, 2011. In connection with this transfer of rulemaking authority, the Bureau issued its own Regulation Z implementing TILA in an interim final rule, 12 CFR part 1026 (Bureau Interim Final Rule).\4\ The Bureau Interim Final Rule substantially duplicated the Board's Regulation Z, including the revisions to the threshold for exempt transactions made by the Board in April 2011. Although the Bureau has the authority to issue rules to implement TILA for most entities, the Board retains authority to issue rules under TILA for certain motor vehicle dealers covered by section 1029(a) of the Dodd-Frank Act, and the Board's Regulation Z continues to apply to those entities.\5\ --------------------------------------------------------------------------- \4\ 76 FR 79768 (Dec. 22, 2011). \5\ Section 1029(a) of the Dodd-Frank Act states: ``Except as permitted in subsection (b), the Bureau may not exercise any rulemaking, supervisory, enforcement, or any other authority . . . over a motor vehicle dealer that is predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both.'' 12 U.S.C. 5519(a). Section 1029(b) of the Dodd-Frank Act states: ``Subsection (a) shall not apply to any person, to the extent that such person (1) provides consumers with any services related to residential or commercial mortgages or self- financing transactions involving real property; (2) operates a line of business (A) that involves the extension of retail credit or retail leases involving motor vehicles; and (B) in which (i) the extension of retail credit or retail leases are provided directly to consumers; and (ii) the contract governing such extension of retail credit or retail leases is not routinely assigned to an unaffiliated third party finance or leasing source; or (3) offers or provides a consumer financial product or service not involving or related to the sale, financing, leasing, rental, repair, refurbishment, maintenance, or other servicing of motor vehicles, motor vehicle parts, or any related or ancillary product or service.'' 12 U.S.C. 5519(b). --------------------------------------------------------------------------- Section 226.3(b)(1)(ii) of the Board's Regulation Z and Sec. 1026.3(b)(1)(ii) of the Bureau's Regulation Z, and their accompanying commentaries, provide that the exemption threshold will be adjusted annually effective January 1 of each year based on any annual percentage increase in the CPI-W that was in effect on the preceding June 1. Any increase in the threshold amount will be rounded to the nearest $100 increment. For example, if the annual percentage increase in the CPI-W would result in a $950 increase in the threshold amount, the threshold amount will be increased by $1,000. However, if the annual percentage increase in the CPI-W would result in a $949 increase in the threshold amount, the threshold amount will be increased by $900.\6\ As stated in the Board Final Threshold Rules, if there is no annual percentage increase in the CPI-W, the Board and Bureau will not adjust the exemption threshold from the prior year.\7\ --------------------------------------------------------------------------- \6\ See comments 3(b)-1 in Supplements I of 12 CFR part 226 and 12 CFR part 1026. \7\ 76 FR 18354, 18355 n.1 (Apr. 4, 2011) (``[A]n annual period of deflation or no inflation would not require a change in the threshold amount.''). --------------------------------------------------------------------------- II. Adjustment and Commentary Revision Effective January 1, 2016, the exemption threshold amount remains at $54,600. This is based on the CPI-W in effect on June 1, 2015, which was reported on May 22, 2015. The Bureau of Labor Statistics publishes consumer-based indices monthly, but does not report a CPI change on June 1; adjustments are reported in the middle of the month. The CPI-W is a subset of the CPI-U index (based on all urban consumers) and represents approximately 28 percent of the U.S. population. Because the CPI-W reported on May 22, 2015 reflects a 0.8 percent decrease in the CPI-W from April 2014 to April 2015, the Board and the Bureau are not adjusting the exemption threshold amount. The Board and the Bureau are revising the commentaries to their respective regulations to add new comment 3(b)-1.vii to state that, from January 1, 2016 through December 31, 2016, the threshold amount is $54,600. These revisions are effective January 1, 2016. III. Administrative Law Matters Administrative Procedure Act Under the Administrative Procedure Act, notice and opportunity for public comment are not required if the Board and the Bureau find that notice and public comment are impracticable, unnecessary, or contrary to the public interest.\8\ The amendment in this notice is technical and applies the method previously set forth in the Board Final Threshold Rules.\9\ For these reasons, the Board and the Bureau have determined that publishing a notice of proposed rulemaking and providing opportunity for public comment are unnecessary. Therefore, the amendments are adopted in final form. --------------------------------------------------------------------------- \8\ 5 U.S.C. 553(b)(B). \9\ See supra note 7. --------------------------------------------------------------------------- Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) does not apply to a rulemaking where a general notice of proposed rulemaking is not required.\10\ As noted previously, the agencies have determined that it is unnecessary to publish a general notice of proposed rulemaking for this joint final rule. Accordingly, the RFA's requirements relating to an initial and final regulatory flexibility analysis do not apply. --------------------------------------------------------------------------- \10\ 5 U.S.C. 603 and 604. --------------------------------------------------------------------------- Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995,\11\ the agencies reviewed this final rule. No collections of information pursuant to the Paperwork Reduction Act are contained in the final rule. --------------------------------------------------------------------------- \11\ 44 U.S.C. 3506; 5 CFR part 1320. --------------------------------------------------------------------------- List of Subjects 12 CFR Part 226 Advertising, Consumer protection, Federal Reserve System, Reporting and recordkeeping requirements, Truth in lending. 12 CFR Part 1026 Advertising, Consumer protection, Credit, Credit unions, Mortgages, National banks, Reporting and recordkeeping requirements, Savings associations, Truth in lending. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Text of Final Revisions For the reasons set forth in the preamble, the Board amends Regulation Z, 12 CFR part 226, as set forth below: PART 226--TRUTH IN LENDING (REGULATION Z) 0 1. The authority citation for part 226 continues to read as follows: Authority: 12 U.S.C. 3806; 15 U.S.C. 1604, 1637(c)(5), and 1639(l); Pub. L. 111-24, section 2, 123 Stat. 1734; Pub. L. 111-203, 124 Stat. 1376. 0 2. In Supplement I to part 226, under Section 226.3--Exempt Transactions, under 3(b) Credit over applicable threshold amount, paragraph 1.vii is added to read as follows: Supplement I to Part 226--Official Staff Interpretations * * * * * Subpart A--General * * * * * [[Page 73949]] Section 226.3--Exempt Transactions * * * * * 3(b) Credit over applicable threshold amount. 1. * * * vii. From January 1, 2016 through December 31, 2016, the threshold amount is $54,600. * * * * * BUREAU OF CONSUMER FINANCIAL PROTECTION Authority and Issuance For the reasons set forth in the preamble, the Bureau amends Regulation Z, 12 CFR part 1026, as set forth below: PART 1026--TRUTH IN LENDING (REGULATION Z) 0 3. The authority citation for part 1026 continues to read as follows: Authority: 12 U.S.C. 2601, 2603-2605, 2607, 2609, 2617, 3353, 5511, 5512, 5532, 5581; 15 U.S.C. 1601 et seq. 0 4. In Supplement I to part 1026, under Section 1026.3--Exempt Transactions, under 3(b) Credit Over Applicable Threshold Amount, paragraph 1.vii is added to read as follows: Supplement I to Part 1026--Official Interpretations * * * * * Subpart A--General * * * * * Section 1026.3--Exempt Transactions * * * * * 3(b) Credit Over Applicable Threshold Amount 1. * * * vii. From January 1, 2016 through December 31, 2016, the threshold amount is $54,600. * * * * * By order of the Board of Governors of the Federal Reserve System, November 18, 2015. Robert deV. Frierson, Secretary of the Board. Dated: September 22, 2015. Richard Cordray, Director, Bureau of Consumer Financial Protection. [FR Doc. 2015-30091 Filed 11-25-15; 8:45 am] BILLING CODE: 6210-01-P; 4810-AM-P
![Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Rules and Regulations 73947
general notice of proposed rulemaking Bureau of Consumer Financial for the agencies’ regulations that
is not required.9 As noted previously, Protection implement the Truth in Lending Act
the agencies have determined that it is (TILA). The Dodd-Frank Wall Street
Authority and Issuance
unnecessary to publish a general notice Reform and Consumer Protection Act
of proposed rulemaking for this joint For the reasons set forth in the (Dodd-Frank Act) amended TILA by
final rule. Accordingly, the RFA’s preamble, the Bureau amends requiring that the dollar threshold for
requirements relating to an initial and Regulation M, 12 CFR part 1013, as set exempt consumer credit transactions be
final regulatory flexibility analysis do forth below: adjusted annually by the annual
not apply. percentage increase in the Consumer
PART 1013—CONSUMER LEASING Price Index for Urban Wage Earners and
Paperwork Reduction Act (REGULATION M) Clerical Workers (CPI–W). If there is no
annual percentage increase in the CPI–
In accordance with the Paperwork ■ 3. The authority citation for part 1013 W, the Board and Bureau will not adjust
Reduction Act of 1995,10 the agencies continues to read as follows: this exemption threshold from the prior
reviewed this final rule. No collections Authority: 15 U.S.C. 1604 and 1667f; Pub. year. Based on the annual percentage
of information pursuant to the L. 111–203 section 1100E, 124 Stat. 1376. decrease in the CPI–W as of June 1,
Paperwork Reduction Act are contained 2015, the exemption threshold will
in the final rule. ■ 4. In Supplement I to part 1013, under
remain at $54,600 through December 31,
Section 1013.2—Definitions, under 2(e)
2016.
List of Subjects Consumer Lease, paragraph 9.vii is Because the Dodd-Frank Act also
added to read as follows: requires similar adjustments in the
12 CFR Part 213
Supplement I to Part 1013—Official Consumer Leasing Act’s threshold for
Advertising, Consumer leasing, Interpretations exempt consumer leases, the Board and
Consumer protection, Federal Reserve the Bureau are making similar
System, Reporting and recordkeeping * * * * *
amendments to each of their respective
requirements. Section 1013.2—Definitions regulations implementing the Consumer
* * * * * Leasing Act elsewhere in this issue of
12 CFR Part 1013 the Federal Register.
2(e) Consumer Lease. * * * .
Advertising, Consumer leasing, 9. * * * DATES: This final rule is effective
vii. From January 1, 2016 through January 1, 2016.
Reporting and recordkeeping December 31, 2016, the threshold amount is
requirements. FOR FURTHER INFORMATION CONTACT:
$54,600.
Board: Vivian W. Wong, Counsel,
Board of Governors of the Federal * * * * * Division of Consumer and Community
Reserve System By order of the Board of Governors of the Affairs, Board of Governors of the
Federal Reserve System, November 18, 2015. Federal Reserve System, at (202) 452–
Text of Final Revisions
Robert deV. Frierson, 3667; for users of Telecommunications
For the reasons set forth in the Secretary of the Board. Device for the Deaf (TDD) only, contact
preamble, the Board amends Regulation Dated: September 22, 2015. (202) 263–4869.
M, 12 CFR part 213, as set forth below: Richard Cordray, Bureau: James Wylie, Counsel, Office
Director, Bureau of Consumer Financial of Regulations, Bureau of Consumer
PART 213—CONSUMER LEASING Protection. Financial Protection, at (202) 435–7700.
(REGULATION M) [FR Doc. 2015–30071 Filed 11–25–15; 8:45 am] SUPPLEMENTARY INFORMATION:
BILLING CODE 4810–AM–P; 6210–01–P I. Background
■ 1. The authority citation for part 213
continues to read as follows: The Dodd-Frank Wall Street Reform
FEDERAL RESERVE SYSTEM and Consumer Protection Act (Dodd-
Authority: 15 U.S.C. 1604 and 1667f; Pub. Frank Act) increased the threshold in
L. 111–203 section 1100E, 124 Stat. 1376. the Truth in Lending Act (TILA) for
12 CFR Part 226
■ 2. In Supplement I to Part 213, under exempt consumer credit transactions 1
[Docket No. R–1520] from $25,000 to $50,000, effective July
Section 213.2—Definitions, under 2(e)
Consumer Lease, paragraph 9.vii is RIN 7100 AE–36 21, 2011.2 In addition, the Dodd-Frank
added to read as follows: Act requires that this threshold be
BUREAU OF CONSUMER FINANCIAL adjusted annually for inflation by the
Supplement I to Part 213—Official Staff PROTECTION annual percentage increase in the
Commentary to Regulation M Consumer Price Index for Urban Wage
12 CFR Part 1026 Earners and Clerical Workers (CPI–W),
* * * * *
as published by the Bureau of Labor
Section 213.2—Definitions Truth in Lending (Regulation Z) Statistics. In April 2011, the Board
* * * * * issued a final rule amending Regulation
AGENCIES: Board of Governors of the
2(e) Consumer Lease. Z (which implements TILA) consistent
Federal Reserve System (Board); and
9. * * * Bureau of Consumer Financial
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1 Although consumer credit transactions above
vii. From January 1, 2016 through Protection (Bureau). the threshold are generally exempt, loans secured
December 31, 2016, the threshold amount is by real property or by personal property used or
ACTION: Final rules, official
$54,600. expected to be used as the principal dwelling of a
interpretations and commentary. consumer and private education loans are covered
* * * * *
by TILA regardless of the loan amount. See 12 CFR
SUMMARY: The Board and the Bureau are 226.3(b)(1)(i) and 12 CFR 1026.3(b)(1)(i).
9 See 5 U.S.C. 603 and 604. publishing final rules amending the 2 Public Law 111–203 section 1100E, 124 Stat.
10 44 U.S.C. 3506; 5 CFR part 1320. official interpretations and commentary 1376 (2010).
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with these provisions of the Dodd-Frank threshold amount, the threshold amount Regulatory Flexibility Act
Act along with a similar final rule will be increased by $1,000. However, if
The Regulatory Flexibility Act (RFA)
amending Regulation M (which the annual percentage increase in the
does not apply to a rulemaking where a
implements the Consumer Leasing Act) CPI–W would result in a $949 increase
general notice of proposed rulemaking
(collectively, the Board Final Threshold in the threshold amount, the threshold is not required.10 As noted previously,
Rules).3 amount will be increased by $900.6 As
Title X of the Dodd-Frank Act the agencies have determined that it is
stated in the Board Final Threshold unnecessary to publish a general notice
transferred rulemaking authority for a Rules, if there is no annual percentage
number of consumer financial of proposed rulemaking for this joint
increase in the CPI–W, the Board and final rule. Accordingly, the RFA’s
protection laws from the Board to the Bureau will not adjust the exemption
Bureau, effective July 21, 2011. In requirements relating to an initial and
threshold from the prior year.7 final regulatory flexibility analysis do
connection with this transfer of
rulemaking authority, the Bureau issued II. Adjustment and Commentary not apply.
its own Regulation Z implementing Revision Paperwork Reduction Act
TILA in an interim final rule, 12 CFR
part 1026 (Bureau Interim Final Rule).4 Effective January 1, 2016, the In accordance with the Paperwork
The Bureau Interim Final Rule exemption threshold amount remains at Reduction Act of 1995,11 the agencies
substantially duplicated the Board’s $54,600. This is based on the CPI–W in reviewed this final rule. No collections
Regulation Z, including the revisions to effect on June 1, 2015, which was of information pursuant to the
the threshold for exempt transactions reported on May 22, 2015. The Bureau Paperwork Reduction Act are contained
made by the Board in April 2011. of Labor Statistics publishes consumer- in the final rule.
Although the Bureau has the authority based indices monthly, but does not List of Subjects
to issue rules to implement TILA for report a CPI change on June 1;
most entities, the Board retains adjustments are reported in the middle 12 CFR Part 226
authority to issue rules under TILA for of the month. The CPI–W is a subset of Advertising, Consumer protection,
certain motor vehicle dealers covered by the CPI–U index (based on all urban Federal Reserve System, Reporting and
section 1029(a) of the Dodd-Frank Act, consumers) and represents recordkeeping requirements, Truth in
and the Board’s Regulation Z continues approximately 28 percent of the U.S. lending.
to apply to those entities.5 population. Because the CPI–W reported
Section 226.3(b)(1)(ii) of the Board’s on May 22, 2015 reflects a 0.8 percent 12 CFR Part 1026
Regulation Z and § 1026.3(b)(1)(ii) of the decrease in the CPI–W from April 2014 Advertising, Consumer protection,
Bureau’s Regulation Z, and their to April 2015, the Board and the Bureau Credit, Credit unions, Mortgages,
accompanying commentaries, provide are not adjusting the exemption National banks, Reporting and
that the exemption threshold will be threshold amount. The Board and the recordkeeping requirements, Savings
adjusted annually effective January 1 of Bureau are revising the commentaries to associations, Truth in lending.
each year based on any annual their respective regulations to add new
percentage increase in the CPI–W that comment 3(b)–1.vii to state that, from BOARD OF GOVERNORS OF THE
was in effect on the preceding June 1. January 1, 2016 through December 31, FEDERAL RESERVE SYSTEM
Any increase in the threshold amount 2016, the threshold amount is $54,600. Text of Final Revisions
will be rounded to the nearest $100 These revisions are effective January 1,
increment. For example, if the annual For the reasons set forth in the
2016.
percentage increase in the CPI–W would preamble, the Board amends Regulation
result in a $950 increase in the III. Administrative Law Matters Z, 12 CFR part 226, as set forth below:
Administrative Procedure Act PART 226—TRUTH IN LENDING
3 76 FR 18354 (Apr. 4, 2011); 76 FR 18349 (Apr.
4, 2011). (REGULATION Z)
Under the Administrative Procedure
4 76 FR 79768 (Dec. 22, 2011).
5 Section 1029(a) of the Dodd-Frank Act states:
Act, notice and opportunity for public ■ 1. The authority citation for part 226
‘‘Except as permitted in subsection (b), the Bureau comment are not required if the Board continues to read as follows:
may not exercise any rulemaking, supervisory, and the Bureau find that notice and
enforcement, or any other authority . . . over a public comment are impracticable, Authority: 12 U.S.C. 3806; 15 U.S.C. 1604,
motor vehicle dealer that is predominantly engaged 1637(c)(5), and 1639(l); Pub. L. 111–24,
unnecessary, or contrary to the public section 2, 123 Stat. 1734; Pub. L. 111–203,
in the sale and servicing of motor vehicles, the
leasing and servicing of motor vehicles, or both.’’ interest.8 The amendment in this notice 124 Stat. 1376.
12 U.S.C. 5519(a). Section 1029(b) of the Dodd- is technical and applies the method
Frank Act states: ‘‘Subsection (a) shall not apply to previously set forth in the Board Final ■ 2. In Supplement I to part 226, under
any person, to the extent that such person (1) Threshold Rules.9 For these reasons, the Section 226.3—Exempt Transactions,
provides consumers with any services related to
residential or commercial mortgages or self- Board and the Bureau have determined under 3(b) Credit over applicable
financing transactions involving real property; (2) that publishing a notice of proposed threshold amount, paragraph 1.vii is
operates a line of business (A) that involves the rulemaking and providing opportunity added to read as follows:
extension of retail credit or retail leases involving
motor vehicles; and (B) in which (i) the extension
for public comment are unnecessary. Supplement I to Part 226—Official Staff
of retail credit or retail leases are provided directly Therefore, the amendments are adopted Interpretations
to consumers; and (ii) the contract governing such in final form.
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extension of retail credit or retail leases is not * * * * *
routinely assigned to an unaffiliated third party 6 See
finance or leasing source; or (3) offers or provides comments 3(b)–1 in Supplements I of 12
CFR part 226 and 12 CFR part 1026. Subpart A—General
a consumer financial product or service not
7 76 FR 18354, 18355 n.1 (Apr. 4, 2011) (‘‘[A]n
involving or related to the sale, financing, leasing, * * * * *
rental, repair, refurbishment, maintenance, or other annual period of deflation or no inflation would not
servicing of motor vehicles, motor vehicle parts, or require a change in the threshold amount.’’).
8 5 U.S.C. 553(b)(B). 10 5 U.S.C. 603 and 604.
any related or ancillary product or service.’’ 12
U.S.C. 5519(b). 9 See supra note 7. 11 44 U.S.C. 3506; 5 CFR part 1320.
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Section 226.3—Exempt Transactions DEPARTMENT OF TRANSPORTATION Examining the AD Docket
* * * * * Federal Aviation Administration You may examine the AD docket on
3(b) Credit over applicable threshold the Internet at http://
amount. 14 CFR Part 39 www.regulations.gov by searching for
and locating Docket No. FAA–2014–
1. * * * 0346; or in person at the Docket
[Docket No. FAA–2014–0346; Directorate
vii. From January 1, 2016 through Identifier 2014–NM–010–AD; Amendment Management Facility between 9 a.m.
December 31, 2016, the threshold 39–18324; AD 2015–23–08] and 5 p.m., Monday through Friday,
amount is $54,600. except Federal holidays. The AD docket
* * * * * RIN 2120–AA64 contains this AD, the regulatory
evaluation, any comments received, and
BUREAU OF CONSUMER FINANCIAL Airworthiness Directives; The Boeing other information. The address for the
PROTECTION Company Airplanes Docket Office (phone: 800–647–5527) is
Authority and Issuance AGENCY: Federal Aviation Docket Management Facility, U.S.
Administration (FAA), DOT. Department of Transportation, Docket
For the reasons set forth in the Operations, M–30, West Building
ACTION: Final rule.
preamble, the Bureau amends Ground Floor, Room W12–140, 1200
Regulation Z, 12 CFR part 1026, as set SUMMARY: We are adopting a new New Jersey Avenue SE., Washington,
forth below: airworthiness directive (AD) for certain DC 20590.
The Boeing Company Model 737–100,– FOR FURTHER INFORMATION CONTACT:
PART 1026—TRUTH IN LENDING 200,–200C,–300,–400, and –500 series Galib Abumeri, Aerospace Engineer,
(REGULATION Z) airplanes. This AD was prompted by Airframe Branch, ANM–120L, FAA, Los
reports of cracks in fuselage frames, and Angeles Aircraft Certification Office,
■ 3. The authority citation for part 1026 a report of a missing strap that was not 3960 Paramount Boulevard, Lakewood,
continues to read as follows: installed on a fuselage frame during CA 90712–4137; phone: 562–627–5324;
Authority: 12 U.S.C. 2601, 2603–2605,
production. This AD requires an fax: 562–627–5210; email:
2607, 2609, 2617, 3353, 5511, 5512, 5532,
inspection to determine if the strap galib.abumeri@faa.gov.
5581; 15 U.S.C. 1601 et seq.
adjacent to a certain stringer is installed, SUPPLEMENTARY INFORMATION:
and repair if it is missing; repetitive
inspections of the frame for cracking or Discussion
■ 4. In Supplement I to part 1026, under
Section 1026.3—Exempt Transactions, a severed frame web; and related We issued a notice of proposed
under 3(b) Credit Over Applicable investigative and corrective actions if rulemaking (NPRM) to amend 14 CFR
Threshold Amount, paragraph 1.vii is necessary. This AD also provides part 39 by adding an AD that would
optional actions to terminate certain apply to certain The Boeing Company
added to read as follows:
repetitive inspections. We are issuing Model 737–100,–200,–200C–300,–400,
Supplement I to Part 1026—Official this AD to detect and correct missing and–500 series airplanes. The NPRM
Interpretations fuselage frame straps and frame cracking published in the Federal Register on
that can result in severed frames which, June 30, 2014 (79 FR 36672). The NPRM
* * * * * with multiple adjacent severed frames, was prompted by reports of cracks in
or the combination of a severed frame fuselage frames, and a report of a
Subpart A—General
and fuselage skin chemical mill cracks, missing strap that was not installed on
* * * * * can result in uncontrolled a fuselage frame during production. The
decompression of the airplane. NPRM proposed to require an
Section 1026.3—Exempt Transactions
DATES: This AD is effective January 4, inspection to determine if the strap
* * * * * 2016. adjacent to a certain stringer is installed,
3(b) Credit Over Applicable Threshold The Director of the Federal Register and repair if it is missing; repetitive
Amount approved the incorporation by reference inspections of the frame for cracking or
of a certain publication listed in this AD a severed frame web; and related
1. * * * as of January 4, 2016. investigative and corrective actions if
vii. From January 1, 2016 through ADDRESSES: For service information necessary. The NPRM also provided
December 31, 2016, the threshold identified in this AD, contact Boeing optional actions to terminate certain
amount is $54,600. Commercial Airplanes, Attention: Data repetitive inspections. We are issuing
* * * * * & Services Management, P.O. Box 3707, this AD to detect and correct missing
MC 2H–65, Seattle, WA 98124–2207; fuselage frame straps and frame cracking
By order of the Board of Governors of the
telephone 206–544–5000, extension 1; that can result in severed frames.
Federal Reserve System, November 18, 2015.
fax 206–766–5680; Internet https:// Continued operation of the airplane
Robert deV. Frierson, www.myboeingfleet.com. You may view with multiple adjacent severed frames,
Secretary of the Board. this referenced service information at or the combination of a severed frame
Dated: September 22, 2015. the FAA, Transport Airplane and fuselage skin chemical mill cracks,
Richard Cordray, Directorate, 1601 Lind Avenue SW., can result in uncontrolled
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Director, Bureau of Consumer Financial
Renton, WA. For information on the decompression of the airplane.
Protection. availability of this material at the FAA,
Comments
call 425–227–1221. It is also available
[FR Doc. 2015–30091 Filed 11–25–15; 8:45 am]
on the Internet at http:// We gave the public the opportunity to
BILLING CODE: 6210–01–P; 4810–AM–P
www.regulations.gov by searching for participate in developing this AD. The
and locating Docket No. FAA–2014– following presents the comments
0346.’’ received on the NPRM (79 FR 36672,
VerDate Sep<11>2014 16:09 Nov 25, 2015 Jkt 238001 PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 E:\FR\FM\27NOR1.SGM 27NOR1](https://thefederalregister.org/doc/80_FR_74175/page/3.svg)
Document Created: 2015-12-14 14:05:00
Document Modified: 2015-12-14 14:05:00
| 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 rules, official interpretations and commentary. | |
| Dates | This final rule is effective January 1, 2016. | |
| Contact | Board: Vivian W. Wong, Counsel, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, at (202) 452-3667; for users of Telecommunications Device for the Deaf (TDD) only, contact (202) 263- 4869. | |
| FR Citation | 80 FR 73947 | |
| RIN Number | 7100 AE36 | |
| CFR Citation | 12
CFR
1026 12 CFR 226 | |
| CFR Associated | Credit; Credit Unions; Mortgages; National Banks; Savings Associations; Advertising; Consumer Protection; Federal Reserve System; Reporting and Recordkeeping Requirements and Truth in Lending |
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