83_FR_2039 83 FR 2029 - Civil Monetary Penalty Inflation Adjustment

83 FR 2029 - Civil Monetary Penalty Inflation Adjustment

NATIONAL CREDIT UNION ADMINISTRATION

Federal Register Volume 83, Issue 10 (January 16, 2018)

Page Range2029-2032
FR Document2018-00488

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 and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

Federal Register, Volume 83 Issue 10 (Tuesday, January 16, 2018)
[Federal Register Volume 83, Number 10 (Tuesday, January 16, 2018)]
[Rules and Regulations]
[Pages 2029-2032]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00488]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

========================================================================


Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / 
Rules and Regulations

[[Page 2029]]



NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 747

RIN 3133-AE83


Civil Monetary Penalty Inflation Adjustment

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final rule.

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SUMMARY: The NCUA Board (Board) is amending its regulations to adjust 
the maximum amount of each civil monetary penalty (CMP) within its 
jurisdiction to account for inflation. This action, including the 
amount of the adjustments, is required under the Federal Civil 
Penalties Inflation Adjustment Act of 1990, as amended by the Debt 
Collection Improvement Act of 1996 and the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015.

DATES: This final rule is effective January 15, 2018.

FOR FURTHER INFORMATION CONTACT: Ian Marenna, Senior Trial Attorney, at 
1775 Duke Street, Alexandria, VA 22314, or telephone: (703) 518-6540.

SUPPLEMENTARY INFORMATION:
I. Legal Background
II. Calculation of Adjustments
III. Regulatory Procedures

I. Legal Background

A. Statutory Requirements and OMB Guidance

    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.
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    \1\ Public Law 104-134, 31001(s), 110 Stat. 1321-373 (Apr. 26, 
1996). The law is codified at 28 U.S.C. 2461 note.
    \2\ Public Law 101-410, 104 Stat. 890 (Oct. 5, 1990), codified 
at 28 U.S.C. 2461 note.
---------------------------------------------------------------------------

    In November 2015, Congress further amended the CMP inflation 
requirements in the Bipartisan Budget Act of 2015,\3\ which contains 
the Federal Civil Penalties Inflation Adjustment Act Improvements Act 
of 2015 (the 2015 amendments).\4\ This legislation provided for an 
initial ``catch-up'' adjustment of CMPs in 2016, followed by annual 
adjustments. The catch-up adjustment re-set CMP maximum amounts by 
setting aside the inflation adjustments that agencies made in prior 
years and instead calculated inflation with reference to the year when 
each CMP was enacted or last modified by Congress. Agencies were 
required to publish their catch-up adjustments in an interim final rule 
by July 1, 2016 and make them effective by August 1, 2016.\5\ The NCUA 
complied with these requirements in a June 2016 interim final rule, 
followed by an October 2016 final rule to confirm the adjustments as 
final.\6\
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    \3\ Public Law 114-74, 129 Stat. 584 (Nov. 2, 2015).
    \4\ 129 Stat. 599.
    \5\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov. 
2, 2015).
    \6\ 81 FR 40152 (June 21, 2016); 81 FR 78028 (Nov. 7, 2016).
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    The 2015 amendments also specified how agencies must conduct annual 
inflation adjustments after the 2016 catch-up adjustment. Following the 
catch-up adjustment, agencies must make the required adjustments and 
publish them in the Federal Register by January 15 each year.\7\ The 
NCUA issued an interim final rule on January 6, 2017,\8\ followed by a 
final rule issued on June 23, 2017.\9\ This final rule will satisfy the 
agency's requirement for the 2018 annual adjustments.
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    \7\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov. 
2, 2015).
    \8\ 82 FR 7640 (Jan. 23, 2017).
    \9\ 82 FR 29710 (June 30, 2017).
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    The statute provides that the adjustments shall be made 
notwithstanding the section of the Administrative Procedure Act (APA) 
that requires prior notice and public comment for agency 
rulemaking.\10\ The 2015 amendments also specify that each CMP maximum 
must be increased by the percentage by which the consumer price index 
for urban consumers (CPI-U) \11\ for October of the year immediately 
preceding the year the adjustment is made exceeds the CPI-U for October 
of the prior year.\12\ For example, for the adjustment made in 2018, 
agencies must compare the October 2016 and 2017 CPI-U figures.
---------------------------------------------------------------------------

    \10\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov. 
2, 2015).
    \11\ This index is published by the Department of Labor, Bureau 
of Labor Statistics, and is available at its website: http://www.bls.gov/cpi/.
    \12\ Public Law 114-74, Sec. 701(b)(1)(2)(B), 129 Stat. 584, 600 
(Nov. 2, 2015).
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    The 2015 amendments also provide that agencies may forgo the 
required annual adjustments in certain circumstances. Specifically, in 
a subsection titled ``Other Adjustments Made,'' the statute provides 
that an agency is not required to make an annual adjustment to a CMP if 
it has been increased by a greater amount than the contemplated annual 
adjustment in the preceding 12 months.\13\ When these criteria are met, 
the agency has discretion not to make the adjustments otherwise 
required by the statute.
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    \13\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 600 (Nov. 
2, 2015).
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    In addition, the 2015 amendments directed the Office of Management 
and Budget (OMB) to issue guidance to agencies on implementing the 
inflation adjustments.\14\ OMB is required to issue its guidance each 
December and did so on December 15, 2017.\15\ This OMB guidance for the 
2018 adjustments includes an inflationary multiplier (1.02041) to apply 
to each current CMP maximum amount to determine the adjusted maximum. 
The guidance also addresses rulemaking procedures and agency reporting 
and oversight requirements for CMPs.\16\
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    \14\ Public Law 114-74, Sec. 701(b)(4), 129 Stat. 584, 601 (Nov. 
2, 2015).
    \15\ Id.; OMB, Implementation of Penalty Inflation Adjustments 
for 2018, Pursuant to the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015, M-18-03 (Dec. 15, 2017), 
available at https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf (noting that the applicable 2017 CMP-adjustment 
multiplier is 1.02041).
    \16\ Id.
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    The next section sets forth the Board's calculation of the 
adjustments for 2018, in accordance with the foregoing requirements.

B. Application to the 2018 Adjustments

    This section applies the statutory requirements and OMB's guidance 
to the NCUA's CMPs.
    As explained above, the 2015 amendments require the NCUA to adjust

[[Page 2030]]

the maximum amounts of its CMPs by the percentage by which the October 
2017 CPI-U (246.663) exceeds the October 2016 CPI-U (241.729). The 
percentage change is 2.041. This percentage increase can be expressed 
as an inflation multiplier (the quotient of the October 2017 figure 
divided by the October 2016 figure). Accordingly, each CMP maximum 
amount should be multiplied by 1.02041 to determine the adjusted 
maximum amount. OMB's guidance identifies the same multiplier.
    The Board has considered the exception in the 2015 amendments for 
adjustments made in the preceding 12 months, discussed above, and has 
determined that it does not apply. All of the adjustments calculated 
below are equal to or greater than the adjustments made in January 2017 
for each CMP. Accordingly, the exception for greater adjustments in the 
preceding 12 months does not apply. Thus, the Board lacks discretion to 
decline to make the adjustments calculated below.
    The table below presents the adjustment calculations. The current 
maximums are found at 12 CFR 747.1001, as adjusted in January 2017. 
This amount is multiplied by the inflation multiplier to calculate the 
new maximum in the far right column. Only these adjusted maximum 
amounts, and not the calculations, will be codified at 12 CFR 747.1001 
under this final rule. The adjusted amounts will be effective January 
15, 2018, and can be applied to violations that occurred on or after 
November 2, 2015, the date the 2015 amendments were enacted. The table 
to be published in the CFR adds a separate row for tier 3 penalties 
against insured credit unions under 12 U.S.C. 1786(k). This is a format 
change to conform the table in the CFR with the table below, which 
lists the tier 3 penalties against credit unions and natural persons 
separately, following the structure of the statute.
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    \17\ The table uses condensed descriptions of CMP tiers. Refer 
to the U.S. Code citations for complete descriptions.

                                  Table--Calculation of Maximum CMP Adjustments
----------------------------------------------------------------------------------------------------------------
                                                                                               Adjusted maximum
                                                                                                 ($) (current
                                                            Current maximum                        maximum x
            Citation               Description/tier 17            ($)           Multiplier        multiplier,
                                                                                              rounded to nearest
                                                                                                    dollar)
----------------------------------------------------------------------------------------------------------------
12 U.S.C. 1782(a)(3)...........  Inadvertent failure to   3,849.............         1.02041  3,928.
                                  submit a report or the
                                  inadvertent submission
                                  of a false or
                                  misleading report.
12 U.S.C. 1782(a)(3)...........  Non-inadvertent failure  38,492............         1.02041  39,278.
                                  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                  1.02041  Lesser of
                                  report or the            1,924,589 or 1%                     1,963,870 or 1%
                                  submission of a false    of total CU                         of total CU
                                  or misleading report     assets.                             assets.
                                  done knowingly or with
                                  reckless disregard.
12 U.S.C. 1782(d)(2)(A)........  Tier 1 CMP for           3,519.............         1.02041  3,591.
                                  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-      35,186............         1.02041  35,904.
                                  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   Lesser of                  1.02041  Lesser of
                                  to submit a certified    1,759,309 or 1%                     1,795,216 or 1%
                                  statement or the         of total CU                         of total CU
                                  submission of a false    assets.                             assets.
                                  or misleading
                                  statement done
                                  knowingly or with
                                  reckless disregard.
12 U.S.C. 1785(a)(3)...........  Non-compliance with      120...............         1.02041  122.
                                  insurance logo
                                  requirements.
12 U.S.C. 1785(e)(3)...........  Non-compliance with      279...............         1.02041  285.
                                  NCUA security
                                  requirements.
12 U.S.C. 1786(k)(2)(A)........  Tier 1 CMP for           9,623.............         1.02041  9,819.
                                  violations of law,
                                  regulation, and other
                                  orders or agreements.
12 U.S.C. 1786(k)(2)(B)........  Tier 2 CMP for           48,114............         1.02041  49,096.
                                  violations 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           1,924,589.........         1.02041  1,963,870.
                                  knowingly committing
                                  the violations under
                                  Tier 1 or 2 (natural
                                  person).
12 U.S.C. 1786(k)(2)(C)........  Tier 3 (same) (CU).....  Lesser of                  1.02041  Lesser of
                                                           1,924,589 or 1%                     1,963,870 or 1%
                                                           of total CU                         of total CU
                                                           assets.                             assets.
12 U.S.C. 1786(w)(5)(A)(ii)....  Non-compliance with      316,566...........         1.02041  323,027.
                                  senior examiner post-
                                  employment
                                  restrictions.
15 U.S.C. 1639e(k).............  Non-compliance with      11,053............         1.02041  11,279.
                                  appraisal independence
                                  standards (first
                                  violation).
15 U.S.C. 1639e(k).............  Subsequent violations    22,105............         1.02041  22,556.
                                  of the same.
42 U.S.C. 4012a(f)(5)..........  Non-compliance with      2,090.............         1.02041  2,133.
                                  flood insurance
                                  requirements.
----------------------------------------------------------------------------------------------------------------


[[Page 2031]]

III. Regulatory Procedures

A. Final Rule Under the APA

    In the 2015 amendments to the FCPIA Act, Congress provided that 
agencies shall make the required inflation adjustments in 2017 and 
subsequent years notwithstanding 5 U.S.C. 553,\18\ which requires 
agencies to follow notice-and-comment procedures in rulemaking and to 
make rules effective no sooner than 30 days after publication in the 
Federal Register. The 2015 amendments provide a clear exception to 
these requirements.\19\ In addition, the Board finds that notice-and-
comment procedures would be impracticable and unnecessary under the APA 
because of the largely ministerial and technical nature of the rule, 
which affords agencies limited discretion in promulgating the rule, and 
the statutory deadline for making the adjustments.\20\ In these 
circumstances, the Board finds good cause to issue a final rule without 
issuing a notice of proposed rulemaking or soliciting public comments. 
The Board also finds good cause to make the final rule effective upon 
publication because of the statutory deadline. Accordingly, this final 
rule is issued without prior notice and comment and will become 
effective immediately upon publication.
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    \18\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov. 
2, 2015).
    \19\ See 5 U.S.C. 559; Asiana Airlines v. Fed. Aviation Admin., 
134 F.3d 393, 396-99 (D.C. Cir. 1998).
    \20\ 5 U.S.C. 553(b)(3)(B); see Mid-Tex Elec. Co-op., Inc. v. 
Fed. Energy Regulatory Comm'n, 822 F.2d 1123, 1133-34 (D.C. Cir. 
1987).
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B. Regulatory Flexibility Act

    The Regulatory Flexibility Act requires the Board to prepare an 
analysis to describe any significant economic impact a regulation may 
have on a substantial number of small entities.\21\ For purposes of 
this analysis, the Board considers small credit unions to be those 
having under $100 million in assets.\22\ This final rule will 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.\23\ Because this final rule will affect few, if 
any, small credit unions, the Board certifies that the final rule will 
not have a significant economic impact on small entities.
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    \21\ 5 U.S.C. 603(a).
    \22\ Interpretive Ruling and Policy Statement 15-1, 80 FR 57512 
(Sept. 24, 2015).
    \23\ 12 U.S.C. 1786(k)(2)(G)(i).
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C. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in 
which an agency creates a new paperwork burden on regulated entities or 
modifies an existing burden.\24\ 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.
---------------------------------------------------------------------------

    \24\ 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,
    The 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 
final 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 that this final 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.\25\
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    \25\ 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 \26\ 
(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 APA.\27\ The Board has 
submitted this final rule to OMB for it to determine whether it is a 
``major rule'' within the meaning of the relevant sections of SBREFA.
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    \26\ Public Law 104-121, 110 Stat. 857 (Mar. 29, 1996).
    \27\ 5 U.S.C. 551.
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List of Subjects in 12 CFR Part 747

    Credit unions, Civil monetary penalties.

    By the National Credit Union Administration Board on January 9, 
2018.
Gerard S. Poliquin,
Secretary of the Board.
    For the reasons stated above, the NCUA Board amends 12 CFR part 747 
as follows:

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

0
1. The authority for part 747 continues 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; Pub. L. 114-74.

Subpart K--Inflation Adjustment of Civil Monetary Penalties

0
2. Revise Sec.  747.1001 to read as follows:


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

    (a) The 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 adjusted amounts, as calculated pursuant to the 
statute:

[[Page 2032]]



------------------------------------------------------------------------
     U.S. Code citation          CMP description     New maximum amount
------------------------------------------------------------------------
(1) 12 U.S.C. 1782(a)(3)....  Inadvertent failure   $3,928.
                               to submit a report
                               or the inadvertent
                               submission of a
                               false or misleading
                               report.
(2) 12 U.S.C. 1782(a)(3)....  Non-inadvertent       $39,278.
                               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   $1,963,870 or 1
                               report or the         percent of the
                               submission of a       total assets of the
                               false or misleading   credit union,
                               report done           whichever is less.
                               knowingly or with
                               reckless disregard.
(4) 12 U.S.C. 1782(d)(2)(A).  Tier 1 CMP for        $3,591.
                               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-   $35,904.
                               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        $1,795,216 or 1
                               failure to submit a   percent of the
                               certified statement   total assets of the
                               or the submission     credit union,
                               of a false or         whichever is less.
                               misleading
                               statement done
                               knowingly or with
                               reckless disregard.
(7) 12 U.S.C. 1785(a)(3)....  Non-compliance with   $122.
                               insurance logo
                               requirements.
(8) 12 U.S.C. 1785(e) (3)...  Non-compliance with   $285.
                               NCUA security
                               requirements.
(9) 12 U.S.C. 1786(k)(2)(A).  Tier 1 CMP for        $9,819.
                               violations of law,
                               regulation, and
                               other orders or
                               agreements.
(10) 12 U.S.C. 1786(k)(2)(A)  Tier 2 CMP for        $49,096.
                               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        $1,963,870.
                               knowingly
                               committing the
                               violations under
                               Tier 1 or 2
                               (natural person).
(12) 12 U.S.C. 1786(k)(2)(A)  Tier 3 CMP for        $1,963,870 or 1
                               knowingly             percent of the
                               committing the        total assets of the
                               violations under      credit union,
                               Tier 1 or 2           whichever is less.
                               (insured credit
                               union).
(13) 12 U.S.C.                Non-compliance with   $323,027.
 1786(w)(5)(ii).               senior examiner
                               post-employment
                               restrictions.
(14) 15 U.S.C. 1639e(k).....  Non-compliance with   First violation:
                               appraisal             $11,279.
                               independence         Subsequent
                               requirements.         violations:
                                                     $22,556.
(15) 42 U.S.C. 4012a(f)(5)..  Non-compliance with   $2,133.
                               flood insurance
                               requirements.
------------------------------------------------------------------------

    (b) The adjusted amounts displayed in paragraph (a) of this section 
apply to civil monetary penalties that are assessed after the date the 
increase takes effect, including those whose associated violation or 
violations pre-dated the increase and occurred after November 2, 2015.

[FR Doc. 2018-00488 Filed 1-12-18; 8:45 am]
 BILLING CODE 7535-01-P



                                                                                                                                                                                                          2029

                                             Rules and Regulations                                                                                            Federal Register
                                                                                                                                                              Vol. 83, No. 10

                                                                                                                                                              Tuesday, January 16, 2018



                                             This section of the FEDERAL REGISTER                    its jurisdiction by the rate of inflation at             U) 11 for October of the year
                                             contains regulatory documents having general            least once every four years.                             immediately preceding the year the
                                             applicability and legal effect, most of which              In November 2015, Congress further                    adjustment is made exceeds the CPI–U
                                             are keyed to and codified in the Code of                                                                         for October of the prior year.12 For
                                                                                                     amended the CMP inflation
                                             Federal Regulations, which is published under                                                                    example, for the adjustment made in
                                             50 titles pursuant to 44 U.S.C. 1510.                   requirements in the Bipartisan Budget
                                                                                                     Act of 2015,3 which contains the                         2018, agencies must compare the
                                             The Code of Federal Regulations is sold by              Federal Civil Penalties Inflation                        October 2016 and 2017 CPI–U figures.
                                             the Superintendent of Documents.                        Adjustment Act Improvements Act of                          The 2015 amendments also provide
                                                                                                     2015 (the 2015 amendments).4 This                        that agencies may forgo the required
                                                                                                     legislation provided for an initial                      annual adjustments in certain
                                             NATIONAL CREDIT UNION                                   ‘‘catch-up’’ adjustment of CMPs in 2016,                 circumstances. Specifically, in a
                                             ADMINISTRATION                                          followed by annual adjustments. The                      subsection titled ‘‘Other Adjustments
                                                                                                     catch-up adjustment re-set CMP                           Made,’’ the statute provides that an
                                             12 CFR Part 747                                                                                                  agency is not required to make an
                                                                                                     maximum amounts by setting aside the
                                                                                                     inflation adjustments that agencies                      annual adjustment to a CMP if it has
                                             RIN 3133–AE83                                                                                                    been increased by a greater amount than
                                                                                                     made in prior years and instead
                                             Civil Monetary Penalty Inflation                        calculated inflation with reference to                   the contemplated annual adjustment in
                                             Adjustment                                              the year when each CMP was enacted or                    the preceding 12 months.13 When these
                                                                                                     last modified by Congress. Agencies                      criteria are met, the agency has
                                             AGENCY:  National Credit Union                          were required to publish their catch-up                  discretion not to make the adjustments
                                             Administration (NCUA).                                  adjustments in an interim final rule by                  otherwise required by the statute.
                                             ACTION: Final rule.                                     July 1, 2016 and make them effective by                     In addition, the 2015 amendments
                                                                                                     August 1, 2016.5 The NCUA complied                       directed the Office of Management and
                                             SUMMARY:   The NCUA Board (Board) is                    with these requirements in a June 2016                   Budget (OMB) to issue guidance to
                                             amending its regulations to adjust the                  interim final rule, followed by an                       agencies on implementing the inflation
                                             maximum amount of each civil                            October 2016 final rule to confirm the                   adjustments.14 OMB is required to issue
                                             monetary penalty (CMP) within its                       adjustments as final.6                                   its guidance each December and did so
                                             jurisdiction to account for inflation.                     The 2015 amendments also specified                    on December 15, 2017.15 This OMB
                                             This action, including the amount of the                how agencies must conduct annual                         guidance for the 2018 adjustments
                                             adjustments, is required under the                      inflation adjustments after the 2016                     includes an inflationary multiplier
                                             Federal Civil Penalties Inflation                       catch-up adjustment. Following the                       (1.02041) to apply to each current CMP
                                             Adjustment Act of 1990, as amended by                   catch-up adjustment, agencies must                       maximum amount to determine the
                                             the Debt Collection Improvement Act of                  make the required adjustments and                        adjusted maximum. The guidance also
                                             1996 and the Federal Civil Penalties                    publish them in the Federal Register by                  addresses rulemaking procedures and
                                             Inflation Adjustment Act Improvements                   January 15 each year.7 The NCUA                          agency reporting and oversight
                                             Act of 2015.                                            issued an interim final rule on January                  requirements for CMPs.16
                                             DATES: This final rule is effective                     6, 2017,8 followed by a final rule issued                   The next section sets forth the Board’s
                                             January 15, 2018.                                       on June 23, 2017.9 This final rule will                  calculation of the adjustments for 2018,
                                             FOR FURTHER INFORMATION CONTACT: Ian                    satisfy the agency’s requirement for the                 in accordance with the foregoing
                                             Marenna, Senior Trial Attorney, at 1775                 2018 annual adjustments.                                 requirements.
                                             Duke Street, Alexandria, VA 22314, or                      The statute provides that the                         B. Application to the 2018 Adjustments
                                             telephone: (703) 518–6540.                              adjustments shall be made                                  This section applies the statutory
                                             SUPPLEMENTARY INFORMATION:                              notwithstanding the section of the                       requirements and OMB’s guidance to
                                             I. Legal Background                                     Administrative Procedure Act (APA)                       the NCUA’s CMPs.
                                             II. Calculation of Adjustments                          that requires prior notice and public                      As explained above, the 2015
                                             III. Regulatory Procedures                              comment for agency rulemaking.10 The                     amendments require the NCUA to adjust
                                             I. Legal Background                                     2015 amendments also specify that each
                                                                                                     CMP maximum must be increased by                            11 This index is published by the Department of
                                             A. Statutory Requirements and OMB                       the percentage by which the consumer                     Labor, Bureau of Labor Statistics, and is available
                                             Guidance                                                price index for urban consumers (CPI–                    at its website: http://www.bls.gov/cpi/.
                                                                                                                                                                 12 Public Law 114–74, Sec. 701(b)(1)(2)(B), 129
                                               The Debt Collection Improvement Act                                                                            Stat. 584, 600 (Nov. 2, 2015).
                                             of 1996 1 (DCIA) amended the Federal                      3 Public  Law 114–74, 129 Stat. 584 (Nov. 2, 2015).       13 Public Law 114–74, Sec. 701(b)(1), 129 Stat.
                                                                                                       4 129  Stat. 599.
                                             Civil Penalties Inflation Adjustment Act                                                                         584, 600 (Nov. 2, 2015).
                                                                                                        5 Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584,
                                             of 1990 2 (FCPIA Act) to require every                                                                              14 Public Law 114–74, Sec. 701(b)(4), 129 Stat.
                                                                                                     599 (Nov. 2, 2015).                                      584, 601 (Nov. 2, 2015).
                                             federal agency to enact regulations that
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                                                                                                        6 81 FR 40152 (June 21, 2016); 81 FR 78028 (Nov.
                                                                                                                                                                 15 Id.; OMB, Implementation of Penalty Inflation
                                             adjust each CMP provided by law under                   7, 2016).                                                Adjustments for 2018, Pursuant to the Federal Civil
                                                                                                        7 Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584,
                                                                                                                                                              Penalties Inflation Adjustment Act Improvements
                                               1 Public Law 104–134, 31001(s), 110 Stat. 1321–       599 (Nov. 2, 2015).                                      Act of 2015, M–18–03 (Dec. 15, 2017), available at
                                                                                                        8 82 FR 7640 (Jan. 23, 2017).
                                             373 (Apr. 26, 1996). The law is codified at 28 U.S.C.                                                            https://www.whitehouse.gov/wp-content/uploads/
                                             2461 note.                                                 9 82 FR 29710 (June 30, 2017).                        2017/11/M-18-03.pdf (noting that the applicable
                                               2 Public Law 101–410, 104 Stat. 890 (Oct. 5,             10 Public Law 114–74, Sec. 701(b)(1), 129 Stat.       2017 CMP-adjustment multiplier is 1.02041).
                                             1990), codified at 28 U.S.C. 2461 note.                 584, 599 (Nov. 2, 2015).                                    16 Id.




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                                             2030                Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations

                                             the maximum amounts of its CMPs by                          determined that it does not apply. All of                           not the calculations, will be codified at
                                             the percentage by which the October                         the adjustments calculated below are                                12 CFR 747.1001 under this final rule.
                                             2017 CPI–U (246.663) exceeds the                            equal to or greater than the adjustments                            The adjusted amounts will be effective
                                             October 2016 CPI–U (241.729). The                           made in January 2017 for each CMP.                                  January 15, 2018, and can be applied to
                                             percentage change is 2.041. This                            Accordingly, the exception for greater                              violations that occurred on or after
                                             percentage increase can be expressed as                     adjustments in the preceding 12 months                              November 2, 2015, the date the 2015
                                             an inflation multiplier (the quotient of                    does not apply. Thus, the Board lacks                               amendments were enacted. The table to
                                             the October 2017 figure divided by the                      discretion to decline to make the                                   be published in the CFR adds a separate
                                             October 2016 figure). Accordingly, each                     adjustments calculated below.                                       row for tier 3 penalties against insured
                                             CMP maximum amount should be                                  The table below presents the
                                                                                                                                                                             credit unions under 12 U.S.C. 1786(k).
                                             multiplied by 1.02041 to determine the                      adjustment calculations. The current
                                                                                                         maximums are found at 12 CFR                                        This is a format change to conform the
                                             adjusted maximum amount. OMB’s
                                                                                                         747.1001, as adjusted in January 2017.                              table in the CFR with the table below,
                                             guidance identifies the same multiplier.
                                               The Board has considered the                              This amount is multiplied by the                                    which lists the tier 3 penalties against
                                             exception in the 2015 amendments for                        inflation multiplier to calculate the new                           credit unions and natural persons
                                             adjustments made in the preceding 12                        maximum in the far right column. Only                               separately, following the structure of the
                                             months, discussed above, and has                            these adjusted maximum amounts, and                                 statute.

                                                                                           TABLE—CALCULATION OF MAXIMUM CMP ADJUSTMENTS
                                                                                                                                                                                                    Adjusted maximum ($)
                                                                                                                                                                                                     (current maximum ×
                                                      Citation                                  Description/tier 17                              Current maximum ($)                  Multiplier     multiplier, rounded to
                                                                                                                                                                                                        nearest dollar)

                                             12 U.S.C. 1782(a)(3) .....     Inadvertent failure to submit a report or the in-                  3,849 ............................         1.02041   3,928.
                                                                              advertent submission of a false or misleading
                                                                              report.
                                             12 U.S.C. 1782(a)(3) .....     Non-inadvertent failure to submit a report or the                  38,492 ..........................          1.02041   39,278.
                                                                              non-inadvertent submission of a false or mis-
                                                                              leading report.
                                             12 U.S.C. 1782(a)(3) .....     Failure to submit a report or the submission of                    Lesser of 1,924,589 or                     1.02041   Lesser of 1,963,870 or
                                                                              a false or misleading report done knowingly                        1% of total CU as-                                   1% of total CU as-
                                                                              or with reckless disregard.                                        sets.                                                sets.
                                             12 U.S.C. 1782(d)(2)(A)        Tier 1 CMP for inadvertent failure to submit cer-                  3,519 ............................         1.02041   3,591.
                                                                              tified statement of insured shares and
                                                                              charges due to NCUSIF, or inadvertent sub-
                                                                              mission of false or misleading statement.
                                             12 U.S.C. 1782(d)(2)(B)        Tier 2 CMP for non-inadvertent failure to submit                   35,186 ..........................          1.02041   35,904.
                                                                              certified statement or submission of false or
                                                                              misleading statement.
                                             12 U.S.C. 1782(d)(2)(C)        Tier 3 CMP for failure to submit a certified                       Lesser of 1,759,309 or                     1.02041   Lesser of 1,795,216 or
                                                                              statement or the submission of a false or                          1% of total CU as-                                   1% of total CU as-
                                                                              misleading statement done knowingly or with                        sets.                                                sets.
                                                                              reckless disregard.
                                             12 U.S.C. 1785(a)(3) .....     Non-compliance with insurance logo require-                        120 ...............................        1.02041   122.
                                                                              ments.
                                             12 U.S.C. 1785(e)(3) .....     Non-compliance with NCUA security require-                         279 ...............................        1.02041   285.
                                                                              ments.
                                             12 U.S.C. 1786(k)(2)(A)        Tier 1 CMP for violations of law, regulation, and                  9,623 ............................         1.02041   9,819.
                                                                              other orders or agreements.
                                             12 U.S.C. 1786(k)(2)(B)        Tier 2 CMP for violations of law, regulation, and                  48,114 ..........................          1.02041   49,096.
                                                                              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 committing the viola-                     1,924,589 .....................            1.02041   1,963,870.
                                                                              tions under Tier 1 or 2 (natural person).
                                             12 U.S.C. 1786(k)(2)(C)        Tier 3 (same) (CU) .............................................   Lesser of 1,924,589 or                     1.02041   Lesser of 1,963,870 or
                                                                                                                                                 1% of total CU as-                                   1% of total CU as-
                                                                                                                                                 sets.                                                sets.
                                             12 U.S.C.                      Non-compliance with senior examiner post-em-                       316,566 ........................           1.02041   323,027.
                                               1786(w)(5)(A)(ii).             ployment restrictions.
                                             15 U.S.C. 1639e(k) .......     Non-compliance with appraisal independence                         11,053 ..........................          1.02041   11,279.
                                                                              standards (first violation).
                                             15 U.S.C. 1639e(k) .......     Subsequent violations of the same ....................             22,105 ..........................          1.02041   22,556.
                                             42 U.S.C. 4012a(f)(5) ....     Non-compliance with flood insurance require-                       2,090 ............................         1.02041   2,133.
                                                                              ments.
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                                                17 The table uses condensed descriptions of CMP

                                             tiers. Refer to the U.S. Code citations for complete
                                             descriptions.

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                                                               Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations                                                        2031

                                             III. Regulatory Procedures                              a significant economic impact on small                  Government Appropriations Act,
                                                                                                     entities.                                               1999.25
                                             A. Final Rule Under the APA
                                                In the 2015 amendments to the FCPIA                  C. Paperwork Reduction Act                              F. Small Business Regulatory
                                             Act, Congress provided that agencies                                                                            Enforcement Fairness Act
                                                                                                       The Paperwork Reduction Act of 1995
                                             shall make the required inflation                       (PRA) applies to rulemakings in which                      The Small Business Regulatory
                                             adjustments in 2017 and subsequent                      an agency creates a new paperwork                       Enforcement Fairness Act of 1996 26
                                             years notwithstanding 5 U.S.C. 553,18                   burden on regulated entities or modifies                (SBREFA) provides generally for
                                             which requires agencies to follow                       an existing burden.24 For purposes of                   congressional review of agency rules. A
                                             notice-and-comment procedures in                        the PRA, a paperwork burden may take                    reporting requirement is triggered in
                                             rulemaking and to make rules effective                  the form of either a reporting or a                     instances where the Board issues a final
                                             no sooner than 30 days after publication                recordkeeping requirement, both                         rule as defined by Section 551 of the
                                             in the Federal Register. The 2015                       referred to as information collections.                 APA.27 The Board has submitted this
                                             amendments provide a clear exception                    This final rule adjusts the maximum                     final rule to OMB for it to determine
                                             to these requirements.19 In addition, the               amounts of certain CMPs that the Board                  whether it is a ‘‘major rule’’ within the
                                             Board finds that notice-and-comment                     may assess against individuals, entities,               meaning of the relevant sections of
                                             procedures would be impracticable and                   or credit unions but does not require                   SBREFA.
                                             unnecessary under the APA because of                    any reporting or recordkeeping.
                                             the largely ministerial and technical                                                                           List of Subjects in 12 CFR Part 747
                                                                                                     Therefore, this final rule will not create
                                             nature of the rule, which affords                       new paperwork burdens or modify any                       Credit unions, Civil monetary
                                             agencies limited discretion in                          existing paperwork burdens.                             penalties.
                                             promulgating the rule, and the statutory
                                                                                                     D. Executive Order 13132                                  By the National Credit Union
                                             deadline for making the adjustments.20                                                                          Administration Board on January 9, 2018.
                                             In these circumstances, the Board finds                   Executive Order 13132 encourages                      Gerard S. Poliquin,
                                             good cause to issue a final rule without                independent regulatory agencies to
                                             issuing a notice of proposed rulemaking                                                                         Secretary of the Board.
                                                                                                     consider the impact of their actions on                   For the reasons stated above, the
                                             or soliciting public comments. The                      state and local interests. In adherence to
                                             Board also finds good cause to make the                                                                         NCUA Board amends 12 CFR part 747
                                                                                                     fundamental federalism principles,                      as follows:
                                             final rule effective upon publication
                                             because of the statutory deadline.                        The NCUA, an independent
                                             Accordingly, this final rule is issued                  regulatory agency as defined in 44                      PART 747—ADMINISTRATIVE
                                             without prior notice and comment and                    U.S.C. 3502(5), voluntarily complies                    ACTIONS, ADJUDICATIVE HEARINGS,
                                             will become effective immediately upon                  with the executive order. This final rule               RULES OF PRACTICE AND
                                             publication.                                            adjusts the maximum amounts of                          PROCEDURE, AND INVESTIGATIONS
                                                                                                     certain CMPs that the Board may assess
                                             B. Regulatory Flexibility Act                           against individuals, entities, and                      ■ 1. The authority for part 747
                                                The Regulatory Flexibility Act                       federally insured credit unions,                        continues to read as follows:
                                             requires the Board to prepare an                        including state-chartered credit unions.                  Authority: 12 U.S.C. 1766, 1782, 1784,
                                             analysis to describe any significant                    However, the final rule does not create                 1785, 1786, 1787, 1790a, 1790d; 15 U.S.C.
                                             economic impact a regulation may have                   any new authority or alter the                          1639e; 42 U.S.C. 4012a; Pub. L. 101–410;
                                             on a substantial number of small                        underlying statutory authorities that                   Pub. L. 104–134; Pub. L. 109–351; Pub. L.
                                                                                                     enable the Board to assess CMPs.                        114–74.
                                             entities.21 For purposes of this analysis,
                                             the Board considers small credit unions                 Accordingly, this final rule will not
                                                                                                                                                             Subpart K—Inflation Adjustment of
                                             to be those having under $100 million                   have a substantial direct effect on the
                                                                                                                                                             Civil Monetary Penalties
                                             in assets.22 This final rule will not have              states, on the connection between the
                                             a significant economic impact on a                      national government and the states, or                  ■ 2. Revise § 747.1001 to read as
                                             substantial number of small credit                      on the distribution of power and                        follows:
                                             unions because it only affects the                      responsibilities among the various
                                             maximum amounts of CMPs that may be                     levels of government. The Board has                     § 747.1001 Adjustment of civil monetary
                                             assessed in individual cases, which are                 determined that this final rule does not                penalties by the rate of inflation.
                                             not numerous and generally do not                       constitute a policy that has federalism                   (a) The NCUA is required by the
                                             involve assessments at the maximum                      implications for purposes of the                        Federal Civil Penalties Inflation
                                             level. In addition, several of the CMPs                 executive order.                                        Adjustment Act of 1990 (Pub. L. 101–
                                             are limited to a percentage of a credit                                                                         410, 104 Stat. 890, as amended (28
                                                                                                     E. Assessment of Federal Regulations
                                             union’s assets. Finally, in assessing                                                                           U.S.C. 2461 note)), to adjust the
                                                                                                     and Policies on Families
                                             CMPs, the Board generally must                                                                                  maximum amount of each civil
                                             consider a party’s financial resources.23                  The Board has determined that this                   monetary penalty within its jurisdiction
                                             Because this final rule will affect few, if             final rule will not affect family well-                 by the rate of inflation. The following
                                             any, small credit unions, the Board                     being within the meaning of Section 654                 chart displays those adjusted amounts,
                                             certifies that the final rule will not have             of the Treasury and General                             as calculated pursuant to the statute:
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                                               18 Public Law 114–74, Sec. 701(b)(1), 129 Stat.         20 5 U.S.C. 553(b)(3)(B); see Mid-Tex Elec. Co-op.,       24 44   U.S.C. 3507(d); 5 CFR part 1320.
                                             584, 599 (Nov. 2, 2015).                                Inc. v. Fed. Energy Regulatory Comm’n, 822 F.2d             25 Public   Law 105–277, 112 Stat. 2681 (Oct. 21,
                                               19 See 5 U.S.C. 559; Asiana Airlines v. Fed.          1123, 1133–34 (D.C. Cir. 1987).                         1998).
                                                                                                       21 5 U.S.C. 603(a).
                                             Aviation Admin., 134 F.3d 393, 396–99 (D.C. Cir.                                                                  26 Public Law 104–121, 110 Stat. 857 (Mar. 29,
                                                                                                       22 Interpretive Ruling and Policy Statement 15–1,
                                             1998).                                                                                                          1996).
                                                                                                     80 FR 57512 (Sept. 24, 2015).
                                                                                                                                                               27 5 U.S.C. 551.
                                                                                                       23 12 U.S.C. 1786(k)(2)(G)(i).




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                                             2032                 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations

                                                               U.S. Code citation                                           CMP description                                  New maximum amount

                                             (1) 12 U.S.C. 1782(a)(3) ....................................   Inadvertent failure to submit a report or the in-   $3,928.
                                                                                                               advertent submission of a false or mis-
                                                                                                               leading report.
                                             (2) 12 U.S.C. 1782(a)(3) ....................................   Non-inadvertent failure to submit a report or       $39,278.
                                                                                                               the non-inadvertent submission of a false or
                                                                                                               misleading report.
                                             (3) 12 U.S.C. 1782(a)(3) ....................................   Failure to submit a report or the submission of     $1,963,870 or 1 percent of the total assets of
                                                                                                               a false or misleading report done knowingly         the credit union, whichever is less.
                                                                                                               or with reckless disregard.
                                             (4) 12 U.S.C. 1782(d)(2)(A) ................................    Tier 1 CMP for inadvertent failure to submit        $3,591.
                                                                                                               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-inadvertent failure to sub-      $35,904.
                                                                                                               mit certified statement or submission of
                                                                                                               false or misleading statement.
                                             (6) 12 U.S.C. 1782(d)(2)(C) ...............................     Tier 3 CMP for failure to submit a certified        $1,795,216 or 1 percent of the total assets of
                                                                                                               statement or the submission of a false or           the credit union, whichever is less.
                                                                                                               misleading statement done knowingly or
                                                                                                               with reckless disregard.
                                             (7) 12 U.S.C. 1785(a)(3) ....................................   Non-compliance with insurance logo require-         $122.
                                                                                                               ments.
                                             (8) 12 U.S.C. 1785(e) (3) ...................................   Non-compliance with NCUA security require-          $285.
                                                                                                               ments.
                                             (9) 12 U.S.C. 1786(k)(2)(A) ................................    Tier 1 CMP for violations of law, regulation,       $9,819.
                                                                                                               and other orders or agreements.
                                             (10) 12 U.S.C. 1786(k)(2)(A) ..............................     Tier 2 CMP for violations of law, regulation,       $49,096.
                                                                                                               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 knowingly committing the vio-        $1,963,870.
                                                                                                               lations under Tier 1 or 2 (natural person).
                                             (12) 12 U.S.C. 1786(k)(2)(A) ..............................     Tier 3 CMP for knowingly committing the vio-        $1,963,870 or 1 percent of the total assets of
                                                                                                               lations under Tier 1 or 2 (insured credit           the credit union, whichever is less.
                                                                                                               union).
                                             (13) 12 U.S.C. 1786(w)(5)(ii) ..............................    Non-compliance with senior examiner post-           $323,027.
                                                                                                               employment restrictions.
                                             (14) 15 U.S.C. 1639e(k) .....................................   Non-compliance with appraisal independence          First violation: $11,279.
                                                                                                               requirements.                                     Subsequent violations: $22,556.
                                             (15) 42 U.S.C. 4012a(f)(5) .................................    Non-compliance with flood insurance require-        $2,133.
                                                                                                               ments.



                                                (b) The adjusted amounts displayed in                        ACTION:Final special conditions; request              • Federal eRegulations Portal: Go to
                                             paragraph (a) of this section apply to                          for comment.                                        http://www.regulations.gov/ and follow
                                             civil monetary penalties that are                                                                                   the online instructions for sending your
                                             assessed after the date the increase takes                      SUMMARY:   These special conditions are             comments electronically.
                                             effect, including those whose associated                        issued for non-rechargeable lithium                   • Mail: Send comments to Docket
                                             violation or violations pre-dated the                           battery installations on the Dassault               Operations, M–30, U.S. Department of
                                             increase and occurred after November 2,                         Aviation (Dassault) Model Falcon 5X                 Transportation (DOT), 1200 New Jersey
                                             2015.                                                           airplane. Non-rechargeable lithium                  Avenue SE, Room W12–140, West
                                                                                                             batteries are a novel or unusual design             Building Ground Floor, Washington, DC
                                             [FR Doc. 2018–00488 Filed 1–12–18; 8:45 am]
                                                                                                             feature when compared to the state of               20590–0001.
                                             BILLING CODE 7535–01–P
                                                                                                             technology envisioned in the                          • Hand Delivery or Courier: Take
                                                                                                             airworthiness standards for transport               comments to Docket Operations in
                                                                                                             category airplanes. The applicable                  Room W12–140 of the West Building
                                             DEPARTMENT OF TRANSPORTATION                                    airworthiness regulations do not contain            Ground Floor at 1200 New Jersey
                                                                                                             adequate or appropriate safety standards            Avenue SE, Washington, DC, between 9
                                             Federal Aviation Administration
                                                                                                             for this design feature. These special              a.m. and 5 p.m., Monday through
                                                                                                             conditions contain the additional safety            Friday, except Federal holidays.
                                             14 CFR Part 25
                                                                                                             standards that the Administrator                      • Fax: Fax comments to Docket
                                             [Docket No. FAA–2017–1141; Special                              considers necessary to establish a level            Operations at 202–493–2251.
                                             Conditions No. 25–710–SC]                                       of safety equivalent to that established               Privacy: The FAA will post all
                                                                                                             by the existing airworthiness standards.            comments it receives, without change,
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                                             Special Conditions: Dassault Aviation                           DATES: This action is effective on                  to http://www.regulations.gov/,
                                             Model Falcon 5X Airplanes; Non-                                 Dassault Aviation on January 16, 2018.              including any personal information the
                                             Rechargeable Lithium Battery                                    Send your comments by March 2, 2018.                commenter provides. Using the search
                                             Installations
                                                                                                             ADDRESSES: Send comments identified                 function of the docket website, anyone
                                             AGENCY:Federal Aviation                                         by docket number FAA–2017–1141                      can find and read the electronic form of
                                             Administration (FAA), DOT.                                      using any of the following methods:                 all comments received into any FAA


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Document Created: 2018-01-13 02:02:18
Document Modified: 2018-01-13 02:02:18
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis final rule is effective January 15, 2018.
ContactIan Marenna, Senior Trial Attorney, at 1775 Duke Street, Alexandria, VA 22314, or telephone: (703) 518-6540.
FR Citation83 FR 2029 
RIN Number3133-AE83
CFR AssociatedCredit Unions and Civil Monetary Penalties

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