83 FR 25881 - Commercial Lending
NATIONAL CREDIT UNION ADMINISTRATION Federal Register Volume 83, Issue 108 (June 5, 2018)
Federal Register Volume 83, Issue 108 (June 5, 2018)
| Page Range | 25881-25882 | |
| FR Document | 2018-11946 |
[Federal Register Volume 83, Number 108 (Tuesday, June 5, 2018)] [Rules and Regulations] [Pages 25881-25882] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-11946] ======================================================================== 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. 108 / Tuesday, June 5, 2018 / Rules and Regulations [[Page 25881]] NATIONAL CREDIT UNION ADMINISTRATION 12 CFR Parts 702 and 723 RIN 3133-AE89 Commercial Lending AGENCY: National Credit Union Administration (NCUA). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The NCUA Board (Board) is amending the definition of member business loan (MBL) in its MBL rule with respect to 1- to 4- family dwellings. This regulatory change conforms to a recent amendment to the Federal Credit Act (FCU Act) by the Economic Growth, Regulatory Relief, and Consumer Protection Act (Economic Growth Act). DATES: This rule is effective June 5, 2018. FOR FURTHER INFORMATION CONTACT: Justin M. Anderson, Senior Staff Attorney, Office of General Counsel, 1775 Duke Street, Alexandria, VA 22314-3428 or telephone (703) 518-6540. SUPPLEMENTARY INFORMATION: I. Background II. Good Cause Exception III. Regulatory Procedures I. Background On May 24, 2018, the President signed the Economic Growth Act,\1\ which among other things, amended the definition section of the MBL provisions of the FCU Act.\2\ Prior to the Economic Growth Act, the FCU Act defined an MBL, in relevant part, as any loan, line of credit, or letter of credit, the proceeds of which will be used for a commercial, corporate or other business investment property or venture, or agricultural purpose but does not include an extension of credit that is fully secured by a lien on a 1-to 4- family dwelling that is the primary residence of a member.\3\ --------------------------------------------------------------------------- \1\ Economic Growth, Regulatory Relief, and Consumer Protection Act, S.2155, 115th Cong. (2018). \2\ Id. at sec. 105. \3\ 12 U.S.C. 1757a(c)(1)(B)(i). --------------------------------------------------------------------------- The Economic Growth Act removed from that definition the words ``that is the primary residence of a member.'' As a result, the definition of an MBL now excludes all extensions of credit that are fully secured by a lien on a 1- to 4- family dwelling regardless of the borrower's occupancy status. Because these kinds of loans are no longer considered MBLs, they do not count towards the aggregate MBL cap imposed on each federally insured credit union by the FCU Act. This statutory amendment became effective upon enactment of the Economic Growth Act. The Board is issuing this final rule to conform the NCUA's MBL rule to the revised FCU Act. This final rule also revises the NCUA's Prompt Corrective Action rule, part 702,\4\ by amending outdated citations to the NCUA's MBL rule. These changes are technical in nature and will not have any substantive effect. --------------------------------------------------------------------------- \4\ 12 CFR part 702. --------------------------------------------------------------------------- II. Good Cause Exception The Board is issuing this rule as final, without having first provided notice and an opportunity for public comment because the NCUA for good cause finds that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest pursuant to the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(3)(B). This rule implements a mandated statutory change that provides the NCUA with no choice and no discretion. The Board finds these reasons are good cause to dispense with the APA's notice and comment requirements. III. Regulatory Procedures 1. Paperwork Reduction Act In accordance with the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et seq.) (PRA), the NCUA may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The information collection requirements associated with part 723 are currently approved by OMB and assigned OMB control number 3133-0101. This rule will not impose any new paperwork burdens or amend existing paperwork burdens, as defined by the PRA. 2. Small Business Regulatory Enforcement Fairness Act The Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) provides generally for congressional review of agency rules. A reporting requirement is triggered in instances where the NCUA issues a final rule as defined by Section 551 of the APA. The NCUA believe this final rule is ``major'' within the meaning of the relevant sections of SBREFA. The NCUA has submitted the rule to the Office of Management and Budget for its determination in that regard. 3. Executive Order 13132 Executive Order 13132 encourages independent regulatory agencies to consider the impact of their actions on state and local interests. The NCUA, an independent regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies with the executive order to adhere to fundamental federalism principles. The final rule does not have substantial direct effects on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. The NCUA has therefore determined that this final rule does not constitute a policy that has federalism implications for purposes of the executive order. 4. Assessment of Federal Regulations and Policies on Families The NCUA has determined that this 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 12 CFR Part 702 Credit unions, Reporting and recordkeeping requirements. 12 CFR Part 723 Credit, Credit unions, Reporting and recordkeeping requirements. [[Page 25882]] By the National Credit Union Administration Board on May 30, 2018. Gerard Poliquin, Secretary of the Board. For the reasons discussed above, the NCUA amends 12 CFR parts 702 and 723 as follows: PART 702--CAPITAL ADEQUACY 0 1. The authority citation for part 702 continues to read as follows: Authority: 12 U.S.C. 1766(a), 1790d. Sec. 702.104 [Amended] 0 2. In Sec. 702.104, amend paragraphs (a), (b), and (g) by removing the citation ``12 CFR 723.1'' and adding in its place ``12 CFR 723.8(b)'' and by removing the citation ``12 CFR 723.20'' and adding in its place ``12 CFR 723.10'' wherever they appear. PART 723--MEMBER BUSINESS LOANS; COMMERCIAL LENDING 0 3. The authority citation for part 723 continues to read as follows: Authority: 12 U.S.C. 1756, 1757, 1757A, 1766, 1785, 1789. 0 4. In Sec. 723.8, add paragraph (b)(3) and revise paragraph (c) to read as follows: Sec. 723.8 Aggregate member business loan limit; exclusions and exceptions. * * * * * (b) * * * (3) Any loan that is fully secured by a lien on a 1- to 4- family dwelling. (c) Exception. Any loan secured by a vehicle manufactured for household use that will be used for a commercial, corporate, or other business investment property or venture, or agricultural purpose, is not a commercial loan but it is a member business loan (if the outstanding aggregate net member business loan balance is $50,000 or greater) and must be counted toward the aggregate limit on a federally insured credit union's member business loans. * * * * * [FR Doc. 2018-11946 Filed 6-4-18; 8:45 am] BILLING CODE 7535-01-P
![25882 Federal Register / Vol. 83, No. 108 / Tuesday, June 5, 2018 / Rules and Regulations
By the National Credit Union DEPARTMENT OF TRANSPORTATION Des Moines, WA. For information on the
Administration Board on May 30, 2018. availability of this material at the FAA,
Gerard Poliquin, Federal Aviation Administration call 206–231–3195. It is also available
Secretary of the Board. on the internet at http://
14 CFR Part 39 www.regulations.gov by searching for
For the reasons discussed above, the and locating Docket No. FAA–2017–
NCUA amends 12 CFR parts 702 and [Docket No. FAA–2017–1246; Product
Identifier 2017–NM–086–AD; Amendment 1246.
723 as follows: 39–19297; AD 2018–11–09] Examining the AD Docket
PART 702—CAPITAL ADEQUACY RIN 2120–AA64 You may examine the AD docket on
the internet at http://
■ 1. The authority citation for part 702 Airworthiness Directives; Bombardier,
www.regulations.gov by searching for
continues to read as follows: Inc., Airplanes
and locating Docket No. FAA–2017–
Authority: 12 U.S.C. 1766(a), 1790d. AGENCY: Federal Aviation 1246; or in person at the Docket
Administration (FAA), Department of Management Facility between 9 a.m.
§ 702.104 [Amended] Transportation (DOT). and 5 p.m., Monday through Friday,
ACTION: Final rule. except Federal holidays. The AD docket
■ 2. In § 702.104, amend paragraphs (a), contains this AD, the regulatory
(b), and (g) by removing the citation ‘‘12 SUMMARY: We are superseding evaluation, any comments received, and
CFR 723.1’’ and adding in its place ‘‘12 Airworthiness Directive (AD) 2014–02– other information. The address for the
CFR 723.8(b)’’ and by removing the 01, which applied to certain Docket Office (telephone: 800–647–
citation ‘‘12 CFR 723.20’’ and adding in Bombardier, Inc., Model CL–600–2C10 5527) is Docket Management Facility,
its place ‘‘12 CFR 723.10’’ wherever (Regional Jet Series 700, 701, & 702), U.S. Department of Transportation,
they appear. Model CL–600–2D15 (Regional Jet Docket Operations, M–30, West
Series 705), and Model CL–600–2D24 Building Ground Floor, Room W12–140,
PART 723—MEMBER BUSINESS (Regional Jet Series 900) airplanes. AD 1200 New Jersey Avenue SE,
LOANS; COMMERCIAL LENDING 2014–02–01 required repetitive Washington, DC 20590.
inspections of the rudder travel limiter FOR FURTHER INFORMATION CONTACT:
■ 3. The authority citation for part 723 (RTL) return springs and primary Cesar Gomez, Aerospace Engineer,
continues to read as follows: actuator, and corrective actions if Airframe and Mechanical Systems
Authority: 12 U.S.C. 1756, 1757, 1757A,
necessary; and replacement of certain Section, FAA, New York ACO Branch,
1766, 1785, 1789. RTL return springs. This AD requires an 1600 Stewart Avenue, Suite 410,
inspection of the RTL return springs for Westbury, NY 11590; telephone: 516–
■ 4. In § 723.8, add paragraph (b)(3) and signs of chafing; an inspection of the 228–7318; fax: 516–794–5531.
revise paragraph (c) to read as follows: casing of the primary actuator for signs
SUPPLEMENTARY INFORMATION:
of chafing or missing paint; replacement
§ 723.8 Aggregate member business loan of the RTL return springs; and an Discussion
limit; exclusions and exceptions.
inspection of the lugs of the RTL limiter We issued a notice of proposed
* * * * * arm assembly for cracks, and rulemaking (NPRM) to amend 14 CFR
(b) * * * modification or replacement, as part 39 to supersede AD 2014–02–01,
applicable; and applicable corrective Amendment 39–17729 (79 FR 7382,
(3) Any loan that is fully secured by
actions. This AD also adds airplanes to February 7, 2014) (‘‘AD 2014–02–01’’).
a lien on a 1- to 4- family dwelling.
the applicability. This AD was AD 2014–02–01 applied to certain
(c) Exception. Any loan secured by a prompted by reports that when Bombardier, Inc., Model CL–600–2C10
vehicle manufactured for household use installing the RTL return springs, the (Regional Jet Series 700, 701, & 702),
that will be used for a commercial, RTL limiter arm assembly lug(s) can Model CL–600–2D15 (Regional Jet
corporate, or other business investment become deformed. We are issuing this Series 705), and Model CL–600–2D24
property or venture, or agricultural AD to address the unsafe condition on (Regional Jet Series 900) airplanes. The
purpose, is not a commercial loan but it these products. NPRM published in the Federal
is a member business loan (if the DATES: This AD is effective July 10, Register on January 16, 2018 (83 FR
outstanding aggregate net member 2018. 2090). The NPRM was prompted by
business loan balance is $50,000 or The Director of the Federal Register reports that when installing RTL return
greater) and must be counted toward the approved the incorporation by reference spring part number BA–670–93468–1,
aggregate limit on a federally insured of a certain publication listed in this AD the RTL limiter arm assembly lug(s) can
credit union’s member business loans. as of July 10, 2018. become deformed when the RTL return
* * * * * ADDRESSES: For service information spring attachment bolt is torqued; and
[FR Doc. 2018–11946 Filed 6–4–18; 8:45 am] identified in this final rule, contact the determination that additional
BILLING CODE 7535–01–P
Bombardier, Inc., 400 Côte-Vertu Road airplanes are affected by the unsafe
West, Dorval, Québec H4S 1Y9, Canada; condition. The NPRM proposed to
Widebody Customer Response Center require an inspection of the RTL return
North America toll-free telephone: 1– springs for signs of chafing; an
866–538–1247 or direct-dial telephone: inspection of the casing of the primary
amozie on DSK3GDR082PROD with RULES
1–514–855–2999; fax 514–855–7401; actuator for signs of chafing or missing
email: ac.yul@aero.bombardier.com; paint; replacement of the RTL return
internet: http://www.bombardier.com. springs; and an inspection of the lugs of
You may view this referenced service the RTL limiter arm assembly for cracks,
information at the FAA, Transport and modification or replacement, as
Standards Branch, 2200 South 216th St., applicable; and applicable corrective
VerDate Sep<11>2014 16:50 Jun 04, 2018 Jkt 244001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\05JNR1.SGM 05JNR1](https://thefederalregister.org/doc/83_FR_25989/page/2.svg)
Document Created: 2018-11-02 11:47:07
Document Modified: 2018-11-02 11:47:07
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule is effective June 5, 2018. | |
| Contact | Justin M. Anderson, Senior Staff Attorney, Office of General Counsel, 1775 Duke Street, Alexandria, VA 22314-3428 or telephone (703) 518-6540. | |
| FR Citation | 83 FR 25881 | |
| RIN Number | 3133-AE89 | |
| CFR Citation | 12
CFR
702 12 CFR 723 | |
| CFR Associated | Credit Unions; Reporting and Recordkeeping Requirements and Credit |
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