81 FR 40197 - Community Development Revolving Loan Fund

NATIONAL CREDIT UNION ADMINISTRATION

Federal Register Volume 81, Issue 119 (June 21, 2016)

Page Range		40197-40201
FR Document		2016-14718
The NCUA Board (Board) proposes to make several technical amendments to NCUA's rule governing the Community Development Revolving Loan Fund (CDRLF). The proposed amendments would make the rule more succinct and update it to improve its transparency, organization, and ease of use by credit unions.
Federal Register, Volume 81 Issue 119 (Tuesday, June 21, 2016)
[Federal Register Volume 81, Number 119 (Tuesday, June 21, 2016)]
[Proposed Rules]
[Pages 40197-40201]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-14718]


=======================================================================
-----------------------------------------------------------------------

NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 705

RIN 3133-AE58


Community Development Revolving Loan Fund

AGENCY: National Credit Union Administration (NCUA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The NCUA Board (Board) proposes to make several technical 
amendments to NCUA's rule governing the Community Development Revolving 
Loan Fund (CDRLF). The proposed amendments would make the rule more 
succinct and update it to improve its transparency, organization, and 
ease of use by credit unions.

DATES: Comments must be received on or before August 22, 2016.

[[Page 40198]]


ADDRESSES: You may submit comments by any of the following methods 
(Please send comments by one method only):
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     NCUA Web site: https://www.ncua.gov/regulation-supervision/Pages/rules/proposed.aspx. Follow the instructions for 
submitting comments.
     Email: Address to [email protected]. Include ``[Your 
name] Comments on Proposed Rule 705, CDRLF Amendments'' in the email 
subject line.
     Fax: (703) 518-6319. Use the subject line described above 
for email.
     Mail: Address to Gerard Poliquin, Secretary of the Board, 
National Credit Union Administration, 1775 Duke Street, Alexandria, 
Virginia 22314-3428.
     Hand Delivery/Courier: Same as mail address.

FOR FURTHER INFORMATION CONTACT: Geetha Valiyil, Manager, Grants and 
Loans, Office of Small Credit Union Initiatives, or Justin Anderson, 
Senior Staff Attorney, Office of General Counsel, at 1775 Duke Street, 
Alexandria, VA 22314 or telephone (703) 518-6645 (Ms. Valiyil) or (703) 
518-6540 (Mr. Anderson).

SUPPLEMENTARY INFORMATION: 

A. Background

    Congress created the CDRLF in 1979 with an initial appropriation of 
$6 million and transferred its exclusive administration to NCUA in 
1986. The CDRLF is a source of financial support, in the form of loans 
and technical assistance grants, for credit unions serving 
predominantly low-income members. It also serves as a source of funding 
to help low-income credit unions respond to emergencies arising in 
their communities. The Board has delegated authority to the Office of 
Small Credit Union Initiatives to determine how to allocate the finite 
resources of the CDRLF among qualifying credit unions. Awards provided 
through the CDRLF have strengthened credit unions by enabling them to 
increase their capacity to support the communities in which they 
operate. This increased capacity has allowed credit unions to provide 
basic financial services to low-income residents in those communities, 
resulting in more opportunities for residents to improve their 
financial circumstances.
    In 2011, the Board substantially revised Part 705 to make the rule 
clearer and more user friendly, as well as to eliminate outdated and 
unnecessary provisions.\1\ The proposed amendments in this rule are 
largely technical in nature or help to clarify NCUA's practices with 
respect to disbursing money from the CDRLF.
---------------------------------------------------------------------------

    \1\ 76 FR 67583 (Nov. 2, 2011).
---------------------------------------------------------------------------

B. Section by Section Analysis

    Sec.  705.1. Authority, Purpose and Scope. The Board proposes to 
reorganize this section to make it clearer, including deleting 
unnecessary provisions. These proposed amendments do not include any 
substantive changes.
    Sec.  705.2. Definitions. The Board proposes to remove the 
definitions of the terms ``Board,'' ``Credit Union,'' and ``Fund'' from 
this section as these terms are defined elsewhere in part 705 or in 
part 700 of NCUA's regulations.\2\ The Board also proposes to remove 
the cross-reference to Sec.  705.6 in the definition of the term 
``Notice of Funding Opportunity'' as unnecessary.
---------------------------------------------------------------------------

    \2\ 12 CFR part 700.
---------------------------------------------------------------------------

    Sec.  705.5. Terms and Conditions. The Board proposes to add the 
words ``for loans'' to the title of this section to clarify that it 
only applies to CDRLF loans, and not technical assistance grants. As 
discussed in more detail below, the Board also proposes to add a 
separate ``terms and conditions'' section for technical assistance 
grants. This will improve the usability of the rule.
    Section 705.5(b) includes a maximum aggregate loan amount of 
$300,000 for CDRLF loans. The Board proposes to remove the dollar 
amount from this section, as it is unnecessary and inaccurate. NCUA may 
grant loans in any amount it sees fit. The dollar amount of individual 
CDRLF loans may continue to rise in connection with need and economic 
conditions. Rather than maintaining an outdated reference to a specific 
dollar amount in the rule, the Board proposes to amend the rule by 
providing that any CDRLF loan limits will be published in NCUA's Notice 
of Funding Opportunity.\3\ This approach is more practical than having 
to update the rule each time the loan funding limit changes. The Board 
proposes to make a similar amendment with respect to technical 
assistance grants.
---------------------------------------------------------------------------

    \3\ Notice of Funding Opportunity, as more fully defined in 
Sec.  705.6 of NCUA's regulations, means the notice NCUA publishes 
describing one or more loan or technical assistance grant programs 
or initiatives being supported by the CDRLF and inviting interested 
qualifying credit unions to submit applications to participate in 
the program or initiative.
---------------------------------------------------------------------------

    The Board proposes to amend Sec.  705.5(h) by adding ``security 
agreements'' to the list of terms and conditions that the section 
provides will be addressed in the related Notice of Funding Opportunity 
or applicable loan documents. The Board notes that this is not a 
substantive change, but rather reflects NCUA's current practice of 
including other terms and conditions related to loans in a Notice of 
Funding Opportunity or loan documents, including security agreements.
    Current Sec.  705.10. Technical assistance grants. Current Sec.  
705.10 contains some provisions detailing the terms and conditions that 
apply to technical assistance grants. The Board, proposes to simplify 
and condense this provision and to include most of that information in 
the Notice of Funding Opportunity. The amended regulatory language will 
then be redesignated as proposed Sec.  705.6. This proposed amendment 
is not a substantive change. Rather, it is a reorganization that 
reflects NCUA's preference to provide such pertinent information in a 
Notice of Funding Opportunity. The Board notes that these amendments 
preserve NCUA's flexibility to issue grants based on the needs of 
credit unions.
    Current Sec.  705.6. Application and award processes. In conformity 
with the above amendment regarding terms and conditions for technical 
assistance grants, the Board proposes to redesignate current Sec.  
705.6 as proposed Sec.  705.7. Further, the Board proposes to amend the 
application and award processes provisions of current Sec.  705.6 to 
more accurately reflect NCUA's actual practices as follows.
    The Board proposes to remove any reference to NCUA publishing a 
Notice of Funding Opportunity on other government Web sites. NCUA is 
not legally required to do so and it currently does not do so. NCUA 
currently publishes a Notice of Funding Opportunity on its Web site and 
in the Federal Register. The Board also proposes to provide that NCUA 
uses press releases as one method of supplementing information in a 
Notice of Funding Opportunity. This amendment only clarifies current 
NCUA practice.
    The current rule states that NCUA will only provide a CDRLF loan or 
technical assistance grant with the concurrence of the applicable 
regional director.\4\ NCUA's practice, however, is to only require 
regional director concurrence for loans, not technical assistance 
grants. Accordingly, the Board proposes to remove from the rule the 
current requirement for regional

[[Page 40199]]

director concurrence for technical assistance grants.
---------------------------------------------------------------------------

    \4\ 12 CFR 705.6(c)(4).
---------------------------------------------------------------------------

    With respect to CDRLF loan approval for federally insured, state-
chartered credit unions (FISCUs), the Board proposes to make the 
concurrence process more efficient. Specifically, rather than requiring 
a FISCU to obtain concurrence from its state supervisory authority 
(SSA) before NCUA considers the FISCU's loan application, the Board 
proposes to clarify that, while SSA concurrence is still required, a 
FISCU is not required to obtain such concurrence before applying for a 
loan. Under this proposed rule, NCUA would obtain concurrence directly 
from the SSA rather than through the FISCU. However, the Board 
encourages a FISCU applying for a loan to notify its SSA of its 
application. This amendment will make the overall application process 
less burdensome for FISCUs.
    The Board proposes to reorganize and consolidate the disbursement 
provisions for loans (current Sec.  705.6(g)) and technical assistance 
grants (current Sec.  705.10) to better organize the rule. The Board 
also proposes to reorganize the appeals provisions and consolidate them 
into proposed Sec.  705.10 (appeals).
    Sec.  705.9. Reporting and Monitoring. This section requires all 
participating credit unions to report to their members their progress 
in providing community support. Credit unions are also required to 
submit a copy of any such report to NCUA. The Board notes, however, 
that NCUA's current practice is only to monitor reports relating to 
CDRLF loans, not technical assistance grants. While the Board believes 
all credit unions should be as transparent as possible to members, the 
Board also wants to eliminate unnecessary burdens on participating 
credit unions. Therefore, the Board proposes to clarify that NCUA 
encourages rather than mandates credit union reporting to members with 
respect to technical assistance grants. This does not change the 
reporting requirement related to CDRLF loans. The Board notes that a 
credit union may satisfy the requirements of this section by using any 
method that results in all members receiving a copy of the written 
report, including emailing a copy of the report to members that have 
access to email.

Regulatory Procedures

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires NCUA to prepare an 
analysis to describe any significant economic impact any proposed 
regulation may have on a substantial number of small entities. NCUA 
considers credit unions having less than ten million dollars in assets 
to be small for purposes of RFA. The proposed revisions to part 705 are 
designed to update and streamline the rule, thereby reducing the burden 
for credit unions that are seeking financial awards, whether in the 
form of a technical assistance grant or a loan. NCUA has determined and 
certifies that this proposed rule, if adopted, will not have a 
significant economic impact on a substantial number of small credit 
unions. Accordingly, the NCUA has determined that an RFA analysis is 
not required.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in 
which an agency by rule creates a new paperwork burden or increases an 
existing burden. For purposes of the PRA, a paperwork burden may take 
the form of a reporting or recordkeeping requirement, both referred to 
as information collections. The proposed changes in this rulemaking are 
technical in nature and will not create new paperwork burdens or modify 
any existing paperwork burdens.

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 rulemaking 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. NCUA has 
determined that this proposal does not constitute a policy that has 
federalism implications for purposes of the executive order.

The Treasury and General Government Appropriations Act, 1999--
Assessment of Federal Regulations and Policies on Families

    The NCUA has determined that this proposed rule will not affect 
family well-being within the meaning of section 654 of the Treasury and 
General Government Appropriations Act, 1999, Public Law 105-277, 112 
Stat. 2681 (1998).

List of Subjects in 12 CFR Part 705

    Community programs, Credit unions, Grants, Loans, Low income, 
Revolving fund.

    By the National Credit Union Administration Board on June 16, 
2016.
Gerard Poliquin,
Secretary of the Board.
    For the reasons stated above, NCUA proposes to amend 12 CFR part 
705 as follows:

PART 705--COMMUNITY DEVELOPMENT REVOLVING LOAN FUND FOR CREDIT 
UNIONS

0
1. The authority citation for part 705 continues to read as follows:

    Authority:  12 U.S.C. 1756, 1757(5)(D), and (7)(I), 1766, 1782, 
1784, 1785 and 1786.

0
2. Revise Sec.  705.1(c) through (e) to read as follows:


Sec.  705.1  Authority, purpose, and scope.

* * * * *
    (c) NCUA's policy is to revolve the loan funds to credit unions as 
often as practical in order to achieve maximum economic impact on as 
many credit unions as possible.
    (d) The financial awards provided to credit unions through the Fund 
will better enable them to support the communities in which they 
operate; provide basic financial services to low-income residents of 
these communities, and result in more opportunities for the residents 
of those communities to improve their financial circumstances.
    (e) The Fund is intended to support the efforts of credit unions 
through loans and technical assistance grants needed for:
    (1) Providing basic financial and related services to residents in 
their communities;
    (2) Enhancing their capacity to better serve their members and the 
communities in which they operate; and
    (3) Responding to emergencies.
0
3. Revise Sec.  705.2 to read as follows:


Sec.  705.2  Definitions.

    For purposes of this part, the following terms shall have the 
meanings assigned to them in this section.
    Application means a form supplied by the NCUA by which a Qualifying 
Credit Union may apply for a loan or a technical assistance grant from 
the Fund.
    Loan is an award in the form of an extension of credit from the 
Fund to a Participating Credit Union that must be repaid, with 
interest.
    Low-income Members are those members defined in Sec.  701.34 of 
this chapter.
    Notice of Funding Opportunity means the Notice NCUA publishes 
describing one or more loan or technical assistance grant programs or 
initiatives currently being supported by the Fund and

[[Page 40200]]

inviting Qualifying Credit Unions to submit applications to participate 
in the program(s) or initiatives(s).
    Participating Credit Union refers to a Qualifying Credit Union that 
has submitted an application for a loan or a technical assistance grant 
from the Fund which has been approved by NCUA. A Participating Credit 
Union shall not be deemed to be an agency, department, or 
instrumentality of the United States because of its receipt of a 
financial award from the Fund.
    Program means the Community Development Revolving Loan Fund Program 
under which NCUA makes loans and technical assistance grants available 
to credit unions.
    Qualifying Credit Union means a credit union that may be, or has 
agreed to be, examined by NCUA, with a current low-income designation 
pursuant to Sec.  701.34(a)(1) or Sec.  741.204 of this chapter or, in 
the case of a non-federally insured, state-chartered credit union, a 
low-income designation from a state regulator, made under appropriate 
state standards with the concurrence of NCUA. Services to low-income 
members must include, at a minimum, offering share accounts and loans.
    Technical Assistance Grant means an award of money from the Fund to 
a Participating Credit Union that does not have to be repaid.
0
4. Amend Sec.  705.5 by:
0
a. Revising the section heading and paragraph (b); and
0
b. In paragraph (h) adding the words ``security agreements (if any),'' 
between the words ``repayment obligations,'' and ``and covenants''.
    The revisions read as follows:


Sec.  705.5  Terms and conditions for loans.

* * * * *
    (b) Funding limits. NCUA will publish any applicable loan funding 
limits in the applicable Notice of Funding Opportunity.
* * * * *


Sec. Sec.  705.6 and 705.7   [Redesignated as Sec. Sec.  705.7 and 
705.8]

0
5. Redesignate Sec. Sec.  705.6 and 705.7 as Sec. Sec.  705.7 and 
705.8, respectively.
0
6. Add new Sec.  705.6 to read as follows:


Sec.  705.6  Terms and conditions for technical assistance grants.

    (a) Participating Credit Unions must comply with the terms and 
conditions for technical assistance grants specified for each funding 
opportunity offered under a Notice of Funding Opportunity.
    (b) NCUA will establish applicable funding limits for technical 
assistance grants in the Notice of Funding Opportunity.
0
7. Amend newly redesignated Sec.  705.7 by revising paragraphs (a), 
(c)(4), (f), and (g) to read as follows:


Sec.  705.7  Application and award processes.

    (a) Notice of Funding Opportunity. NCUA will publish a Notice of 
Funding Opportunity in the Federal Register and on its Web site. The 
Notice of Funding Opportunity will describe the loan and technical 
assistance grant programs for the period in which funds are available. 
It also will announce special initiatives, the amount of funds 
available, funding priorities, permissible uses of funds, funding 
limits, deadlines, and other pertinent details. The Notice of Funding 
Opportunity will also advise potential applicants on how to obtain an 
Application and related materials. NCUA may supplement the information 
contained in the Notice of Funding Opportunity through such other media 
as it determines appropriate, including Letters to Credit Unions, press 
releases, direct notices to Qualifying Credit Unions, and announcements 
on its Web site.
* * * * *
    (c) * * *
    (4) Examination information and applicable concurrence. In 
evaluating a Qualifying Credit Union, NCUA will consider all 
information provided by NCUA staff or state supervisory authority staff 
that performed the Qualifying Credit Union's most recent examination. 
In addition:
    (i) NCUA will only provide a loan to a qualifying federal credit 
union with the concurrence of that credit union's supervising Regional 
Director; and
    (ii) NCUA will only provide a loan to a qualifying state-charted 
credit union with the written concurrence of the applicable Regional 
Director and the credit union's state supervisory authority. A 
qualifying state-chartered credit union should notify its state 
supervisory authority that it is applying for a loan from the Fund 
before submitting its application to NCUA. However, a qualifying state-
chartered credit union is not required to obtain concurrence before 
applying for a loan. NCUA will obtain the concurrence directly from the 
state supervisory authority rather than through the qualifying state-
chartered credit union. Additionally, before NCUA will provide a loan 
to a qualifying state-charted credit union the credit union must make 
copies of its state examination reports available to NCUA and agree to 
examination by NCUA.
* * * * *
    (f) Notice of award. NCUA will determine whether an application 
meets NCUA's standards established by this part and the related Notice 
of Funding Opportunity. NCUA will provide written notice to a 
Qualifying Credit Union as to whether or not it has qualified for a 
loan or technical assistance grant under this part. A Qualifying Credit 
Union whose application has been denied for failure of a qualification 
may appeal that decision in accordance with Sec.  705.10.
    (g) Disbursement--(1) Loans. Before NCUA will disburse a loan, the 
Participating Credit Union must sign the loan agreement, promissory 
note, and any other loan related documents. NCUA may, in its 
discretion, choose not to disburse the entire amount of the loan at 
once.
    (2) Technical assistance grants. NCUA will disburse technical 
assistance grants in such amounts, and in accordance with such terms 
and conditions, as NCUA may establish. In general, technical assistance 
grants are provided on a reimbursement basis, to cover expenditures 
approved in advance by NCUA and supported by receipts evidencing 
payment by the Participating Credit Union.
0
8. Revise Sec.  705.9(b) to read as follows:


Sec.  705.9  Reporting and monitoring.

* * * * *
    (b) Reporting--(1) Reporting to NCUA. A Participating Credit Union 
must complete and submit to NCUA all required reports, at such times 
and in such formats as NCUA will direct. Such reports must describe how 
the Participating Credit Union has used the loan or technical 
assistance grant proceeds and the results it has obtained, in relation 
to the programs, policies, or initiatives identified by the 
Participating Credit Union in its application. NCUA may request 
additional information as it determines appropriate.
    (2) Reporting to members.--(i) Loans. A Participating Credit Union 
that receives a loan under this part must report on the progress of 
providing needed community services to the Participating Credit Union's 
members once a year, either at the annual meeting or in a written 
report sent to all members. The Participating Credit Union must also 
submit to NCUA the written report or a summary of the report provided 
to members.
    (ii) Technical assistance grants. A Participating Credit Union that 
receives a technical assistance grant under this part should report on 
the progress of providing needed community services to the 
Participating Credit Union's members once a year, either at the

[[Page 40201]]

annual meeting or in a written report sent to all members.
* * * * *
0
9. Revise Sec.  705.10 to read as follows:


Sec.  705.10  Appeals.

    (a) Appeals of non-qualification. A Qualifying Credit Union whose 
application for a loan or technical assistance grant has been denied, 
under Sec.  705.7(f), for failure of a qualification may appeal that 
decision to the NCUA Board in accordance with the following:
    (1) Within thirty days of its receipt of a notice of non-
qualification, a credit union may appeal the decision to the NCUA 
Board. The scope of the NCUA Board's review is limited to the threshold 
question of qualification and not the issue of whether, among qualified 
applicants, a particular loan or technical assistance grant is funded.
    (2) The foregoing procedure shall apply only with respect to 
Applications received by NCUA during an open period in which funds are 
available and NCUA has called for Applications. Any Application 
submitted by an applicant during a period in which NCUA has not called 
for Applications will be rejected, except for those Applications 
submitted under Sec.  705.8. Any such rejection shall not be subject to 
appeal or review by the NCUA Board.
    (b) Appeals of technical assistance grant reimbursement denials. 
Pursuant to NCUA Interpretative Ruling and Policy Statement 11-1, any 
Participating Credit Union may appeal a denial of a technical 
assistance grant reimbursement to NCUA's Supervisory Review Committee. 
All appeals of technical assistance grant reimbursements must be 
submitted to the Supervisory Review Committee within 30 days from the 
date of the denial. The decisions of the Supervisory Review Committee 
are final and may not be appealed to the NCUA Board.

[FR Doc. 2016-14718 Filed 6-20-16; 8:45 am]
 BILLING CODE 7535-01-P
40197

Proposed Rules Federal Register
Vol. 81, No. 119

Tuesday, June 21, 2016

This section of the FEDERAL REGISTER 1000 Independence Avenue SW., submitting written comments, data, and
contains notices to the public of the proposed Washington, DC 20585–0121. If information by July 18, 2016. DOE has
issuance of rules and regulations. The possible, please submit all items on a received a request from the Compressed
purpose of these notices is to give interested compact disc (CD), in which case it is Air & Gas Institute (CAGI), dated May
persons an opportunity to participate in the not necessary to include printed copies. 25, 2016, to provide additional time in
rule making prior to the adoption of the final
rules.
[Please note that comments and CDs which to submit comments pertaining to
sent by mail are often delayed and may the rulemaking for compressors. This
be damaged by mail screening request can be found at: https://
DEPARTMENT OF ENERGY processes.] www.regulations.gov/
• Hand Delivery/Courier: Ms. Brenda #!documentDetail;D=EERE-2013-BT-
10 CFR Part 431 Edwards, U.S. Department of Energy, STD-0040-0039. An extension of the
Building Technologies Program, 950 comment period would allow additional
[Docket Number EERE–2013–BT–STD–
0040]
L’Enfant Plaza SW., Suite 600, time for CAGI and other interested
Washington, DC 20024. Telephone (202) parties to examine the data, information,
RIN 1904–AC83 586–2945. If possible, please submit all and analysis presented in the
items on CD, in which case it is not compressors Technical Support
Energy Conservation Program: Energy necessary to include printed copies. Document (TSD), gather any additional
Conservation Standards for Docket: The docket is available for data and information to address the
Compressors; Extension of Comment review at www.regulations.gov, proposed standards, and submit
Period including Federal Register notices, comments to DOE. The TSD can be
AGENCY: Office of Energy Efficiency and framework documents, public meeting found at: https://www.regulations.gov/
Renewable Energy, Department of attendee lists and transcripts, #!documentDetail;D=EERE-2013-BT-
Energy. comments, and other supporting STD-0040-0037. In view of the request
ACTION: Extension of public comment
documents/materials. All documents in from CAGI, DOE has determined that a
period. the docket are listed in the 30-day extension of the public comment
www.regulations.gov index. However, period is appropriate. The comment
SUMMARY: On May 19, 2016, the U.S. not all documents listed in the index period is extended to August 17, 2016.
Department of Energy (DOE) published may be publicly available, such as Issued in Washington, DC, on June 13,
in the Federal Register a notice of information that is exempt from public 2016.
proposed rulemaking (NOPR) for disclosure. Kathleen B. Hogan,
compressor energy conservation The rulemaking Web page can be
found at: https://www1.eere.energy.gov/ Deputy Assistant Secretary for Energy
standards. This document announces an Efficiency, Energy Efficiency and Renewable
extension of the public comment period buildings/appliance_standards/ Energy.
for submitting comments on the NOPR product.aspx/productid/78. The Web
[FR Doc. 2016–14480 Filed 6–20–16; 8:45 am]
or any other aspect of the energy page contains a link to the docket for
BILLING CODE 6450–01–P
conservation standards rulemaking for this document on the
compressors. The comment period is www.regulations.gov site. The
extended to August 17, 2016. www.regulations.gov Web page contains
DATES: The comment period for the instructions on how to access all NATIONAL CREDIT UNION
proposed rule published on May 19, documents in the docket, including ADMINISTRATION
2016 (81 FR 31679), is extended. DOE public comments.
will accept comments, data, and FOR FURTHER INFORMATION CONTACT: Mr. 12 CFR Part 705
information regarding this rulemaking James Raba, U.S. Department of Energy,
RIN 3133–AE58
received no later than August 17, 2016. Office of Energy Efficiency and
ADDRESSES: Interested persons may Renewable Energy, Building Community Development Revolving
submit comments, identified by docket Technologies Office, EE–5B, 1000 Loan Fund
number EERE–2013–BT–STD–0040 Independence Avenue SW.,
and/or Regulation Identifier Number Washington, DC 20585–0121. AGENCY: National Credit Union
(RIN) 1904–AC83, by any of the Telephone: (202) 586–8654. Email: Administration (NCUA).
following methods: Jim.Raba@ee.doe.gov. ACTION: Proposed rule.
• Federal eRulemaking Portal: For legal issues, please contact Mr.
www.regulations.gov. Follow the Peter Cochran, U.S. Department of SUMMARY: The NCUA Board (Board)
instructions for submitting comments. Energy, Office of the General Counsel, proposes to make several technical
• Email: GC–33, 1000 Independence Avenue amendments to NCUA’s rule governing
rmajette on DSK2TPTVN1PROD with PROPOSALS

AirCompressors2013STD0040@ SW., Washington, DC 20585–0121. the Community Development Revolving
ee.doe.gov. Include the docket number Telephone: (202) 586–9496. Email: Loan Fund (CDRLF). The proposed
EERE–2013–BT–STD–0040 and/or RIN Peter.Cochran@hq.doe.gov. amendments would make the rule more
1904–AC83 in the subject line of the SUPPLEMENTARY INFORMATION: On May succinct and update it to improve its
message. 19, 2016, DOE published in the Federal transparency, organization, and ease of
• Mail: Ms. Brenda Edwards, U.S. Register a notice of proposed use by credit unions.
Department of Energy, Building rulemaking (NOPR) for compressors. 81 DATES: Comments must be received on
Technologies Program, Mailstop EE–5B, FR 31679. The document provided for or before August 22, 2016.

VerDate Sep<11>2014 14:42 Jun 20, 2016 Jkt 238001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\21JNP1.SGM 21JNP1
40198 Federal Register / Vol. 81, No. 119 / Tuesday, June 21, 2016 / Proposed Rules

ADDRESSES: You may submit comments provisions.1 The proposed amendments conditions that the section provides will
by any of the following methods (Please in this rule are largely technical in be addressed in the related Notice of
send comments by one method only): nature or help to clarify NCUA’s Funding Opportunity or applicable loan
• Federal eRulemaking Portal: http:// practices with respect to disbursing documents. The Board notes that this is
www.regulations.gov. Follow the money from the CDRLF. not a substantive change, but rather
instructions for submitting comments. reflects NCUA’s current practice of
B. Section by Section Analysis
• NCUA Web site: https:// including other terms and conditions
www.ncua.gov/regulation-supervision/ § 705.1. Authority, Purpose and related to loans in a Notice of Funding
Pages/rules/proposed.aspx. Follow the Scope. The Board proposes to Opportunity or loan documents,
instructions for submitting comments. reorganize this section to make it including security agreements.
• Email: Address to regcomments@ clearer, including deleting unnecessary Current § 705.10. Technical assistance
ncua.gov. Include ‘‘[Your name] provisions. These proposed grants. Current § 705.10 contains some
Comments on Proposed Rule 705, amendments do not include any provisions detailing the terms and
CDRLF Amendments’’ in the email substantive changes. conditions that apply to technical
subject line. § 705.2. Definitions. The Board assistance grants. The Board, proposes
• Fax: (703) 518–6319. Use the proposes to remove the definitions of to simplify and condense this provision
subject line described above for email. the terms ‘‘Board,’’ ‘‘Credit Union,’’ and and to include most of that information
• Mail: Address to Gerard Poliquin, ‘‘Fund’’ from this section as these terms in the Notice of Funding Opportunity.
Secretary of the Board, National Credit are defined elsewhere in part 705 or in The amended regulatory language will
Union Administration, 1775 Duke part 700 of NCUA’s regulations.2 The then be redesignated as proposed
Street, Alexandria, Virginia 22314– Board also proposes to remove the § 705.6. This proposed amendment is
3428. cross-reference to § 705.6 in the not a substantive change. Rather, it is a
• Hand Delivery/Courier: Same as definition of the term ‘‘Notice of reorganization that reflects NCUA’s
mail address. Funding Opportunity’’ as unnecessary. preference to provide such pertinent
FOR FURTHER INFORMATION CONTACT: § 705.5. Terms and Conditions. The information in a Notice of Funding
Geetha Valiyil, Manager, Grants and Board proposes to add the words ‘‘for Opportunity. The Board notes that these
Loans, Office of Small Credit Union loans’’ to the title of this section to amendments preserve NCUA’s
Initiatives, or Justin Anderson, Senior clarify that it only applies to CDRLF flexibility to issue grants based on the
Staff Attorney, Office of General loans, and not technical assistance needs of credit unions.
Counsel, at 1775 Duke Street, grants. As discussed in more detail
below, the Board also proposes to add Current § 705.6. Application and
Alexandria, VA 22314 or telephone award processes. In conformity with the
(703) 518–6645 (Ms. Valiyil) or (703) a separate ‘‘terms and conditions’’
section for technical assistance grants. above amendment regarding terms and
518–6540 (Mr. Anderson). conditions for technical assistance
SUPPLEMENTARY INFORMATION:
This will improve the usability of the
rule. grants, the Board proposes to
A. Background Section 705.5(b) includes a maximum redesignate current § 705.6 as proposed
aggregate loan amount of $300,000 for § 705.7. Further, the Board proposes to
Congress created the CDRLF in 1979 amend the application and award
with an initial appropriation of $6 CDRLF loans. The Board proposes to
remove the dollar amount from this processes provisions of current § 705.6
million and transferred its exclusive to more accurately reflect NCUA’s
administration to NCUA in 1986. The section, as it is unnecessary and
inaccurate. NCUA may grant loans in actual practices as follows.
CDRLF is a source of financial support,
in the form of loans and technical any amount it sees fit. The dollar The Board proposes to remove any
assistance grants, for credit unions amount of individual CDRLF loans may reference to NCUA publishing a Notice
serving predominantly low-income continue to rise in connection with need of Funding Opportunity on other
members. It also serves as a source of and economic conditions. Rather than government Web sites. NCUA is not
funding to help low-income credit maintaining an outdated reference to a legally required to do so and it currently
unions respond to emergencies arising specific dollar amount in the rule, the does not do so. NCUA currently
in their communities. The Board has Board proposes to amend the rule by publishes a Notice of Funding
delegated authority to the Office of providing that any CDRLF loan limits Opportunity on its Web site and in the
Small Credit Union Initiatives to will be published in NCUA’s Notice of Federal Register. The Board also
determine how to allocate the finite Funding Opportunity.3 This approach is proposes to provide that NCUA uses
resources of the CDRLF among more practical than having to update the press releases as one method of
qualifying credit unions. Awards rule each time the loan funding limit supplementing information in a Notice
provided through the CDRLF have changes. The Board proposes to make a of Funding Opportunity. This
strengthened credit unions by enabling similar amendment with respect to amendment only clarifies current NCUA
them to increase their capacity to technical assistance grants. practice.
support the communities in which they The Board proposes to amend The current rule states that NCUA
operate. This increased capacity has § 705.5(h) by adding ‘‘security will only provide a CDRLF loan or
allowed credit unions to provide basic agreements’’ to the list of terms and technical assistance grant with the
financial services to low-income concurrence of the applicable regional
rmajette on DSK2TPTVN1PROD with PROPOSALS

1 76 FR 67583 (Nov. 2, 2011).
residents in those communities, 2 12
director.4 NCUA’s practice, however, is
CFR part 700.
resulting in more opportunities for 3 Notice of Funding Opportunity, as more fully
to only require regional director
residents to improve their financial defined in § 705.6 of NCUA’s regulations, means the concurrence for loans, not technical
circumstances. notice NCUA publishes describing one or more loan assistance grants. Accordingly, the
In 2011, the Board substantially or technical assistance grant programs or initiatives Board proposes to remove from the rule
being supported by the CDRLF and inviting the current requirement for regional
revised Part 705 to make the rule clearer interested qualifying credit unions to submit
and more user friendly, as well as to applications to participate in the program or
eliminate outdated and unnecessary initiative. 4 12 CFR 705.6(c)(4).

VerDate Sep<11>2014 14:42 Jun 20, 2016 Jkt 238001 PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\21JNP1.SGM 21JNP1
Federal Register / Vol. 81, No. 119 / Tuesday, June 21, 2016 / Proposed Rules 40199

director concurrence for technical having less than ten million dollars in By the National Credit Union
assistance grants. assets to be small for purposes of RFA. Administration Board on June 16, 2016.
With respect to CDRLF loan approval The proposed revisions to part 705 are Gerard Poliquin,
for federally insured, state-chartered designed to update and streamline the Secretary of the Board.
credit unions (FISCUs), the Board rule, thereby reducing the burden for For the reasons stated above, NCUA
proposes to make the concurrence credit unions that are seeking financial proposes to amend 12 CFR part 705 as
process more efficient. Specifically, awards, whether in the form of a follows:
rather than requiring a FISCU to obtain technical assistance grant or a loan.
concurrence from its state supervisory NCUA has determined and certifies that PART 705—COMMUNITY
authority (SSA) before NCUA considers this proposed rule, if adopted, will not DEVELOPMENT REVOLVING LOAN
the FISCU’s loan application, the Board have a significant economic impact on FUND FOR CREDIT UNIONS
proposes to clarify that, while SSA a substantial number of small credit
concurrence is still required, a FISCU is unions. Accordingly, the NCUA has ■ 1. The authority citation for part 705
not required to obtain such concurrence determined that an RFA analysis is not continues to read as follows:
before applying for a loan. Under this required. Authority: 12 U.S.C. 1756, 1757(5)(D), and
proposed rule, NCUA would obtain (7)(I), 1766, 1782, 1784, 1785 and 1786.
Paperwork Reduction Act
concurrence directly from the SSA ■ 2. Revise § 705.1(c) through (e) to read
rather than through the FISCU. The Paperwork Reduction Act of 1995 as follows:
However, the Board encourages a FISCU (PRA) applies to rulemakings in which
applying for a loan to notify its SSA of an agency by rule creates a new § 705.1 Authority, purpose, and scope.
its application. This amendment will paperwork burden or increases an * * * * *
make the overall application process existing burden. For purposes of the (c) NCUA’s policy is to revolve the
less burdensome for FISCUs. PRA, a paperwork burden may take the loan funds to credit unions as often as
The Board proposes to reorganize and form of a reporting or recordkeeping practical in order to achieve maximum
consolidate the disbursement provisions requirement, both referred to as economic impact on as many credit
for loans (current § 705.6(g)) and information collections. The proposed unions as possible.
technical assistance grants (current changes in this rulemaking are technical (d) The financial awards provided to
§ 705.10) to better organize the rule. The in nature and will not create new credit unions through the Fund will
Board also proposes to reorganize the paperwork burdens or modify any better enable them to support the
appeals provisions and consolidate existing paperwork burdens. communities in which they operate;
them into proposed § 705.10 (appeals). provide basic financial services to low-
§ 705.9. Reporting and Monitoring. Executive Order 13132 income residents of these communities,
This section requires all participating Executive Order 13132 encourages and result in more opportunities for the
credit unions to report to their members independent regulatory agencies to residents of those communities to
their progress in providing community consider the impact of their actions on improve their financial circumstances.
support. Credit unions are also required state and local interests. In adherence to (e) The Fund is intended to support
to submit a copy of any such report to fundamental federalism principles, the efforts of credit unions through
NCUA. The Board notes, however, that NCUA, an independent regulatory loans and technical assistance grants
NCUA’s current practice is only to agency as defined in 44 U.S.C. 3502(5), needed for:
monitor reports relating to CDRLF loans, voluntarily complies with the executive (1) Providing basic financial and
not technical assistance grants. While order. This rulemaking will not have a related services to residents in their
the Board believes all credit unions substantial direct effect on the states, on communities;
should be as transparent as possible to the connection between the national (2) Enhancing their capacity to better
members, the Board also wants to government and the states, or on the serve their members and the
eliminate unnecessary burdens on distribution of power and communities in which they operate; and
participating credit unions. Therefore, responsibilities among the various (3) Responding to emergencies.
the Board proposes to clarify that NCUA ■ 3. Revise § 705.2 to read as follows:
levels of government. NCUA has
encourages rather than mandates credit determined that this proposal does not § 705.2 Definitions.
union reporting to members with constitute a policy that has federalism For purposes of this part, the
respect to technical assistance grants. implications for purposes of the following terms shall have the meanings
This does not change the reporting executive order. assigned to them in this section.
requirement related to CDRLF loans.
The Treasury and General Government Application means a form supplied by
The Board notes that a credit union may
Appropriations Act, 1999—Assessment the NCUA by which a Qualifying Credit
satisfy the requirements of this section
of Federal Regulations and Policies on Union may apply for a loan or a
by using any method that results in all
Families technical assistance grant from the
members receiving a copy of the written
Fund.
report, including emailing a copy of the The NCUA has determined that this Loan is an award in the form of an
report to members that have access to proposed rule will not affect family extension of credit from the Fund to a
email. well-being within the meaning of Participating Credit Union that must be
Regulatory Procedures section 654 of the Treasury and General repaid, with interest.
rmajette on DSK2TPTVN1PROD with PROPOSALS

Government Appropriations Act, 1999, Low-income Members are those
Regulatory Flexibility Act Public Law 105–277, 112 Stat. 2681 members defined in § 701.34 of this
The Regulatory Flexibility Act (RFA) (1998). chapter.
requires NCUA to prepare an analysis to List of Subjects in 12 CFR Part 705 Notice of Funding Opportunity means
describe any significant economic the Notice NCUA publishes describing
impact any proposed regulation may Community programs, Credit unions, one or more loan or technical assistance
have on a substantial number of small Grants, Loans, Low income, Revolving grant programs or initiatives currently
entities. NCUA considers credit unions fund. being supported by the Fund and

VerDate Sep<11>2014 14:42 Jun 20, 2016 Jkt 238001 PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 E:\FR\FM\21JNP1.SGM 21JNP1
Federal Register / Vol. 81, No. 119 / Tuesday, June 21, 2016 / Proposed Rules 40201

annual meeting or in a written report Notice of proposed rulemaking
ACTION: and 5 p.m., Monday through Friday,
sent to all members. (NPRM). except Federal holidays. The AD docket
* * * * * contains this proposed AD, the
SUMMARY: We propose to adopt a new regulatory evaluation, any comments
■ 9. Revise § 705.10 to read as follows:
airworthiness directive (AD) for certain received, and other information. The
§ 705.10 Appeals. Airbus Model A330–200, –200 street address for the Docket Operations
(a) Appeals of non-qualification. A Freighter, and –300 series airplanes; and office (telephone 800–647–5527) is in
Qualifying Credit Union whose Model A340–500 and –600 series the ADDRESSES section. Comments will
application for a loan or technical airplanes. This proposed AD was be available in the AD docket shortly
assistance grant has been denied, under prompted by a quality control review on after receipt.
§ 705.7(f), for failure of a qualification the final assembly line, which
FOR FURTHER INFORMATION CONTACT:
may appeal that decision to the NCUA determined that the wrong aluminum
alloy was used to manufacture several Vladimir Ulyanov, Aerospace Engineer,
Board in accordance with the following: International Branch, ANM–116,
(1) Within thirty days of its receipt of structural parts. This proposed AD
would require a one-time eddy current Transport Airplane Directorate, FAA,
a notice of non-qualification, a credit 1601 Lind Avenue SW., Renton, WA
union may appeal the decision to the conductivity measurement of certain
cabin and cargo compartment structural 98057–3356; telephone 425–227–1138;
NCUA Board. The scope of the NCUA fax 425–227–1149.
Board’s review is limited to the parts to determine if an incorrect
aluminum alloy was used, and SUPPLEMENTARY INFORMATION:
threshold question of qualification and
not the issue of whether, among replacement of any affected part with a Comments Invited
qualified applicants, a particular loan or serviceable part. We are proposing this
AD to detect and replace structural parts We invite you to send any written
technical assistance grant is funded. relevant data, views, or arguments about
(2) The foregoing procedure shall made of incorrect aluminum alloy. This
condition could result in reduced this proposed AD. Send your comments
apply only with respect to Applications to an address listed under the
received by NCUA during an open structural integrity of the airplane.
ADDRESSES section. Include ‘‘Docket No.
period in which funds are available and DATES: We must receive comments on
this proposed AD by August 5, 2016. FAA–2016–7264; Directorate Identifier
NCUA has called for Applications. Any 2015–NM–185–AD’’ at the beginning of
Application submitted by an applicant ADDRESSES: You may send comments,
your comments. We specifically invite
during a period in which NCUA has not using the procedures found in 14 CFR comments on the overall regulatory,
called for Applications will be rejected, 11.43 and 11.45, by any of the following economic, environmental, and energy
except for those Applications submitted methods: aspects of this proposed AD. We will
under § 705.8. Any such rejection shall • Federal eRulemaking Portal: Go to
consider all comments received by the
not be subject to appeal or review by the http://www.regulations.gov. Follow the
closing date and may amend this
NCUA Board. instructions for submitting comments.
• Fax: 202–493–2251. proposed AD based on those comments.
(b) Appeals of technical assistance We will post all comments we
grant reimbursement denials. Pursuant • Mail: U.S. Department of
Transportation, Docket Operations, M– receive, without change, to http://
to NCUA Interpretative Ruling and www.regulations.gov, including any
Policy Statement 11–1, any Participating 30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE., personal information you provide. We
Credit Union may appeal a denial of a will also post a report summarizing each
technical assistance grant Washington, DC 20590.
• Hand Delivery: U.S. Department of substantive verbal contact we receive
reimbursement to NCUA’s Supervisory about this proposed AD.
Transportation, Docket Operations, M–
Review Committee. All appeals of
30, West Building Ground Floor, Room Discussion
technical assistance grant
W12–140, 1200 New Jersey Avenue SE.,
reimbursements must be submitted to The European Aviation Safety Agency
Washington, DC, between 9 a.m. and 5
the Supervisory Review Committee (EASA), which is the Technical Agent
p.m., Monday through Friday, except
within 30 days from the date of the for the Member States of the European
Federal holidays.
denial. The decisions of the Supervisory For service information identified in Union, has issued EASA Airworthiness
Review Committee are final and may this NPRM, contact Airbus SAS, Directive 2015–0206, dated October 12,
not be appealed to the NCUA Board. Airworthiness Office—EAL, 1 Rond 2015 (referred to after this as the
[FR Doc. 2016–14718 Filed 6–20–16; 8:45 am] Point Maurice Bellonte, 31707 Blagnac Mandatory Continuing Airworthiness
BILLING CODE 7535–01–P Cedex, France; telephone +33 5 61 93 36 Information, or ‘‘the MCAI’’), to correct
96; fax +33 5 61 93 45 80; email an unsafe condition for certain Airbus
airworthiness.A330–A340@airbus.com; Model A330–200, –200 Freighter, and
Internet http://www.airbus.com. You –300 series airplanes; and Model A340–
DEPARTMENT OF TRANSPORTATION 500 and –600 series airplanes. The
may view this referenced service
Federal Aviation Administration information at the FAA, Transport MCAI states:
Airplane Directorate, 1601 Lind Avenue Following an Airbus quality control review
14 CFR Part 39 SW., Renton, WA. For information on on the final assembly line, it was discovered
the availability of this material at the that wrong aluminum alloy was used to
[Docket No. FAA–2016–7264; Directorate FAA, call 425–227–1221. manufacture several structural parts.
rmajette on DSK2TPTVN1PROD with PROPOSALS

Identifier 2015–NM–185–AD] This condition, if not detected and
Examining the AD Docket corrected, could reduce the structural
RIN 2120–AA64 You may examine the AD docket on integrity of the aeroplane.
To address this potential unsafe condition,
Airworthiness Directives; Airbus the Internet at http:// Airbus issued Service Bulletin (SB) A330–
Airplanes www.regulations.gov by searching for 53–3261, SB A330–53–3262, and SB A340–
and locating Docket No. FAA–2016– 53–5072, as applicable to aeroplane type, to
AGENCY:Federal Aviation 7264; or in person at the Docket provide instructions to identify the affected
Administration (FAA), DOT. Management Facility between 9 a.m. parts.

VerDate Sep<11>2014 14:42 Jun 20, 2016 Jkt 238001 PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 E:\FR\FM\21JNP1.SGM 21JNP1
Document Created: 2016-06-21 01:30:32
Document Modified: 2016-06-21 01:30:32
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		Proposed Rules
Action		Proposed rule.
Dates		Comments must be received on or before August 22, 2016.
Contact		Geetha Valiyil, Manager, Grants and Loans, Office of Small Credit Union Initiatives, or Justin Anderson, Senior Staff Attorney, Office of General Counsel, at 1775 Duke Street, Alexandria, VA 22314 or telephone (703) 518-6645 (Ms. Valiyil) or (703) 518-6540 (Mr. Anderson).
FR Citation		81 FR 40197
RIN Number		3133-AE58
CFR Associated		Community Programs; Credit Unions; Grants; Loans; Low Income and Revolving Fund