83 FR 39622 - Loans to Members and Lines of Credit to Members
NATIONAL CREDIT UNION ADMINISTRATION Federal Register Volume 83, Issue 155 (August 10, 2018)
Federal Register Volume 83, Issue 155 (August 10, 2018)
| Page Range | 39622-39626 | |
| FR Document | 2018-17087 |
[Federal Register Volume 83, Number 155 (Friday, August 10, 2018)] [Proposed Rules] [Pages 39622-39626] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-17087] ======================================================================== Proposed Rules Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. ======================================================================== Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Proposed Rules [[Page 39622]] NATIONAL CREDIT UNION ADMINISTRATION 12 CFR Part 701 [RIN 3133-AE88] Loans to Members and Lines of Credit to Members AGENCY: National Credit Union Administration (NCUA). ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: The NCUA Board (Board) proposes to amend its regulations regarding loans to members and lines of credit to members. The proposal would reduce regulatory burden by making amendments to improve clarity and to make compliance easier. Specifically, the Board proposes to make the NCUA's loan maturity requirements more user friendly by identifying in one section all of the various maturity limits applicable to federal credit union (FCU) loans. The Board also proposes to make explicit in its regulations that the maturity date for a ``new loan'' under generally accepted accounting principles (GAAP) is calculated from the new date of origination. Additionally, the Board seeks comment on whether the agency should provide longer maturity limits for 1-4 family real estate loans and other loans permitted by the Federal Credit Union Act (FCU Act) such as home improvement, mobile home, and second mortgage loans. Finally, the Board proposes to more clearly express the limits for loans to a single borrower or group of associated borrowers. DATES: Comments must be received on or before October 9, 2018. ADDRESSES: You may submit comments by any of the following methods (Please send comments by one method only):Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. NCUA website: https://www.ncua.gov/regulation-supervision/Pages/rules/proposed.aspx. Follow the instructions for submitting comments. Email: Address to [email protected]. Include ``[Your name] Comments on Proposed Rule 701, Loans to Members and Lines of Credit to Members'' in the email subject line. Fax: (703) 518-6319. Use the subject line described above for email. Mail: Address to Gerard S. Poliquin, Secretary of the Board, National Credit Union Administration, 1775 Duke Street, Alexandria, Virginia 22314-3428. Hand Delivery/Courier: Same as mail address. Public Inspection: You may view all public comments on the NCUA's website at https://www.ncua.gov/regulation-supervision/Pages/rules/proposed.aspx as submitted, except for those we cannot post for technical reasons. The NCUA will not edit or remove any identifying or contact information from the public comments submitted. You may inspect paper copies of comments in the NCUA's law library at 1775 Duke Street, Alexandria, Virginia 22314, by appointment weekdays between 9 a.m. and 3 p.m. To make an appointment, call (703) 518-6546 or send an email to [email protected]. FOR FURTHER INFORMATION CONTACT: Thomas I. Zells, Staff Attorney, Office of General Counsel, at 1775 Duke Street, Alexandria, VA 22314 or telephone: (703) 548-2478. SUPPLEMENTARY INFORMATION: I. Background II. Summary of the Proposed Rule III. Section-by-Section Analysis IV. Regulatory Procedures I. Background In August 2017, the Board published and sought comment on the NCUA's regulatory reform agenda (Agenda).\1\ The Agenda identifies those regulations the Board intends to amend or repeal because they are outdated, ineffective, or excessively burdensome.\2\ --------------------------------------------------------------------------- \1\ 82 FR 39702 (Aug. 22, 2017). \2\ This is consistent with the spirit of President Trump's regulatory reform agenda and Executive Order 13777. Although the NCUA, as an independent agency, is not required to comply with Executive Order 13777, the Board has chosen to comply with it in spirit and has reviewed all of the NCUA's regulations to that end. --------------------------------------------------------------------------- A number of the items in the Agenda relate to the NCUA's regulations on loans to members and lines of credit to members.\3\ In order to provide regulatory relief to credit unions, the Board proposes to address in this rulemaking the substance of several of those items and request further public comment on another. More specifically, the Board proposes to make the NCUA's regulations on loans to members and lines of credit to members more user friendly by: (1) Identifying in one section the various maturity limits applicable to FCU loans; (2) clarifying that the maturity for a lending action that qualifies as a ``new loan'' under GAAP is calculated from the new date of origination; \4\ (3) seeking comment on whether the NCUA should provide for longer, more flexible maturity limits on certain loans; and (4) more clearly expressing the limits in place for loans to a single borrower or group of associated borrowers. --------------------------------------------------------------------------- \3\ 12 CFR 701.21. \4\ GAAP is defined as generally accepted accounting principles in the United States as set forth in the Financial Accounting Standards Board's (FASB) Accounting Standards Codification (ASC). --------------------------------------------------------------------------- II. Summary of the Proposed Rule A. Loan Maturity Limits for Federal Credit Unions Section 107(5) of the FCU Act grants FCUs the power ``to make loans, the maturities of which shall not exceed 15 years, except as otherwise provided herein. . . .'' \5\ The NCUA implemented this general maturity limit in Sec. 701.21(c)(4) of its regulations. Section 107(5)(A)(i)-(iii) of the FCU Act provide exceptions to the general 15-year maturity limit, and have been implemented in Sec. 701.21(e) through (g) of the NCUA's regulations. Section 107(5)(A)(i) of the FCU Act, implemented in Sec. 701.21(g) of the NCUA's regulations, states that ``a residential real estate loan on a one-to- four-family dwelling, including an individual cooperative unit, that is or will be the principal residence of a credit union member, and which is secured by a first lien upon such dwelling, may have a maturity not exceeding thirty years or such other limits as shall be set by the National Credit Union Administration Board (except that a loan on an individual cooperative unit shall be adequately secured as defined by the Board), subject to the rules and regulations of the Board[.]'' \6\ Pursuant to the authority [[Page 39623]] Sec. 107(5)(A)(i) of the FCU Act grants the Board to set alternate maturities for covered 1-4 family real estate loans, the Board has established a 40-year maximum maturity for such loans and has provided that longer periods may be permitted by the Board on a case-by-case basis.\7\ Section 107(5)(A)(ii) of the FCU Act, implemented in Sec. 701.21(f) of the NCUA's regulations, states that ``a loan to finance the purchase of a mobile home, which shall be secured by a first lien on such mobile home, to be used by the credit union member as his residence, a loan for the repair, alteration, or improvement of a residential dwelling which is the residence of a credit union member, or a second mortgage loan secured by a residential dwelling which is the residence of a credit union member, shall have a maturity not to exceed 15 years or any longer term which the Board may allow[.]'' \8\ Pursuant to the authority section 107(5)(A)(ii) grants the Board to set alternate maturities for covered loans, the Board has established a 20- year maximum maturity for such loans.\9\ Finally, section 107(5)(A)(iii) of the FCU Act, implemented in Sec. 701.21(e) of the NCUA's regulations, states that ``a loan secured by the insurance or guarantee of, or with advance commitment to purchase the loan by, the Federal Government, a State government, or any agency of either may be made for the maturity and under the terms and conditions specified in the law under which such insurance, guarantee, or commitment is provided[.]'' \10\ --------------------------------------------------------------------------- \5\ 12 U.S.C. 1757(5). \6\ 12 U.S.C. 1757(5)(A)(i) (emphasis added); 12 CFR 701.21(g). \7\ 12 CFR 701.21(g)(1) (stating that ``[a] federal credit union may make residential real estate loans to members, including loans secured by manufactured homes permanently affixed to the land, with maturities of up to 40 years, or such longer period as may be permitted by the NCUA Board on a case-by-case basis, subject to the conditions of this paragraph[.]''). \8\ 12 U.S.C. 1757(5)(A)(ii) (emphasis added); 12 CFR 701.21(f). \9\ 12 CFR 701.21(f)(1) (stating that ``[n]otwithstanding the general 15-year maturity limit on loans to members, a federal credit union may make loans with maturities of up to 20 years'' for loans covered by this paragraph.). \10\ 12 U.S.C. 1757(5)(A)(iii); 12 CFR 701.21(e). --------------------------------------------------------------------------- i. Identifying the Various Maturity Limits in One Section Presently, Sec. 701.21 of the NCUA's regulations addresses various loan maturity limits in paragraphs (c), (e), (f), and (g). Paragraph (c) provides the general rules applicable to all loans to members and, where indicated, all lines of credit (including credit cards) to members, except as otherwise provided in the remaining provisions of Sec. 701.21. Paragraph (c)(4) implements the general 15-year maturity limit that section 107(5) of the FCU Act places on loans to members. Paragraphs (e), (f), and (g) of Sec. 701.21 implement the three exceptions to this general 15-year limit that appear in section 107(5)(A)(i)-(iii) of the FCU Act. Having the various maturity limits spread among numerous sections of the NCUA's regulations, often separated by large amounts of regulatory text unrelated to maturities, can be confusing to the reader and makes it more difficult to understand the lending regulations. To remedy this, the Board proposes to make the NCUA's loan maturity requirements more understandable and user-friendly by identifying in one section (Sec. 701.21(c)(4)), including cross-citations, all of the maturity limits applicable to FCU loans. ii. The Treatment of Maturities for Lending Actions That Qualify as ``New Loans'' Under GAAP The proposal also clarifies that in the case of a lending action qualifying as a ``new loan'' under GAAP, the maturity limit is calculated from the new date of origination.\11\ The Board proposes to accomplish this by adding language to Sec. 701.21(c)(4), which articulates the general 15-year maturity limit. --------------------------------------------------------------------------- \11\ ASC 310-20-35-9 & 10. --------------------------------------------------------------------------- iii. Request for Comment on Providing Longer Maturity Limits for Certain Loans The Board is considering providing longer maturity limits for 1-4 family real estate loans and other loans (such as certain home improvement, mobile home, and second mortgage loans) as permitted by section 107(5)(A)(i)-(ii) of the FCU Act and removing the case-by-case exception the Board can grant. As discussed earlier, these maturity limits are implemented in Sec. 701.21(f) and (g) of the NCUA's regulations. The case-by-case exception is located in Sec. 701.21(g)(1) of the NCUA's regulations and provides that the Board can permit an FCU to make loans with maturities that exceed the regulation's 40-year limit ``on a case-by-case basis, subject to the conditions of this paragraph (g).'' \12\ The Board believes that more input is necessary to determine whether longer maturity limits should be adopted and, if so, the proper maturity lengths and the reasons such longer maturities are warranted. As such, the Board asks that commenters provide detailed comments addressing: (1) Whether the NCUA should provide longer maturity limits for certain lending actions permitted by section 107(5)(A)(i)-(ii) of the FCU Act; (2) the appropriate maturity limits for such lending actions; (3) whether the case-by-case Board exemption should be retained and, if so, under what circumstances would such exemptions be appropriate; and (4) any other issues stakeholders believe relevant. The Board also requests that commenters consider FCU Act limitations when requesting relief and changes in this area. --------------------------------------------------------------------------- \12\ 12 CFR 701.21(g)(1). --------------------------------------------------------------------------- B. Single Borrower and Group of Associated Borrowers Limits i. More Clearly Identifying the Various Limits Currently, three provisions of the NCUA's regulations address limits on loans to a single borrower or group of associated borrowers: (1) Sec. 701.21(c)(5) addresses the general limit; (2) Sec. 701.22(b)(5)(iv) addresses the limit on loan participations; and (3) Sec. 723.4(c) addresses the limit on commercial loans. Because these provisions are spread among several sections of the NCUA's regulations, some stakeholders are not aware that there are multiple limits that apply in different contexts. To rectify this, the proposal makes clear that all three of these limits exist. Rather than move the loans to one borrower or group of associated borrowers limits that specifically apply to loan participations and commercial loans from their current regulatory sections to the general limit section, the Board proposes to include cross-citations to the more specific loan participation and commercial loan limits in the general limit section (Sec. 701.21(c)(5)). The Board believes that inserting cross-citations is a more efficient and user friendly way to identify that there are multiple lending limits throughout the NCUA's regulations. Section 701.21(c)(5), as part of the general rules on loans and lines of credit to members, imposes the FCU Act's ten percent limit on loans and lines of credit to any member.\13\ Specifically, Sec. 701.21(c)(5) requires that ``[n]o loan or line of credit advance may be made to any member if such loan or advance would cause that member to be indebted to the Federal credit union upon loans and advances made to the member in the aggregate amount exceeding 10% of the credit union's total unimpaired capital and surplus.'' \14\ Section 701.21(c)(5) also provides an outdated cross-citation to part 723 for the specific limit on commercial lending. The Board proposes to remove this outdated cross-citation and provide updated references to both the current loan participation [[Page 39624]] limit in Sec. 701.22(b)(5) and the commercial lending limit in Sec. 723.4(c). --------------------------------------------------------------------------- \13\ 12 U.S.C. 1757(5)(A)(x). \14\ 12 CFR 701.21(c)(5). --------------------------------------------------------------------------- The NCUA also proposes to make conforming amendments to update cross-citations to the single borrower and group of associated borrower limits in Sec. Sec. 701.20(c)(2) and 701.22(b)(1). ii. Request for Comment Regarding the Limits Applicable to Loan Participations and Commercial Loans In addition, the NCUA believes that providing a universal standard limit for loans to a single borrower or group of associated borrowers, in lieu of the current loan product specific standards, may help facilitate compliance and reduce regulatory burden. As such, the agency seeks stakeholder input on whether the agency should provide such a universal standard limit. Currently, a limit of 15 percent of a federally insured credit union's net worth exists for both commercial loans and loan participations that may be purchased with respect to a single borrower or group of associated borrowers. However, a waiver is available in the case of the loan participations limit and an alternate limit is available for commercial loans. More specifically, the 15 percent limit on the aggregate amount of loan participations that may be purchased with respect to a single borrower or group of associated borrowers can be waived by the appropriate regional director, and, in the case of a federally insured, state-chartered credit union, with prior written concurrence of the appropriate state supervisory authority.\15\ The limit on commercial loans does not provide for waiver. Instead, it provides that ``the aggregate dollar amount of commercial loans to any one borrower or group of associated borrowers may not exceed the greater of 15 percent of the federally insured credit union's net worth or $100,000, plus an additional 10 percent of the credit union's net worth if the amount that exceeds the credit union's 15 percent general limit is fully secured at all times with a perfected security interest by readily marketable collateral as defined in Sec. 723.2 of this part. Any insured or guaranteed portion of a commercial loan made through a program in which a federal or state agency (or its political subdivision) insures repayment, guarantees repayment, or provides an advance commitment to purchase the loan in full, is excluded from this limit.'' \16\ --------------------------------------------------------------------------- \15\ 12 CFR 701.22(b)(5)(iv). \16\ 12 CFR 723.4(c). --------------------------------------------------------------------------- The Board believes that more input is necessary to determine whether a universal limit would be beneficial and should be adopted in place of the current product specific limits. As such, the Board asks that commenters provide comments addressing: (1) Whether the NCUA should provide a single universal standard limit for commercial loans and loan participations that may be purchased with respect to a single borrower or group of associated borrowers; (2) if so, the appropriate limit for such a standard; (3) if not, why not; and (4) any other issues stakeholders believe are relevant to this determination. The Board also requests that commenters consider FCU Act limitations, specifically the general limit on loans to a single borrower of ``10 per centum of the credit union's unimpaired capital and surplus'' in section 107(5)(A)(x), when commenting.\17\ --------------------------------------------------------------------------- \17\ 12 U.S.C. 1757(5)(A)(x). --------------------------------------------------------------------------- III. Section-by-Section Analysis This proposed rule reduces regulatory burden and makes the NCUA's regulations more user-friendly for credit unions. As such, it is largely clarifying and technical in nature and would maintain most of the current language in Sec. 701.21. The proposed changes to Sec. 701.21 and the conforming amendments to Sec. Sec. 701.20 and 701.22 are discussed in more detail below.\18\ --------------------------------------------------------------------------- \18\ All citations to Sec. Sec. 701.20, 701.21, 701.22, and part 723 in this preamble section refer to the NCUA's regulations in 12 CFR chapter VII. --------------------------------------------------------------------------- Section 701.20 Suretyship and Guaranty The proposal would make minor conforming amendments to Sec. 701.20(c). The proposal would make conforming amendments to the section governing requirements for suretyship or guaranty agreements by removing outdated cross-citations to the loans to one borrower or group of associated borrowers limit in Sec. Sec. 723.2 and 723.8 of the member business lending regulation and adding updated cross-citations to 701.22(b)(5)(iv) of the NCUA's loan participation regulation and 723.4(c) of the NCUA's member business lending regulation. Section 701.21 The proposal would divide current Sec. 701.21(c)(4) into two new subparagraphs. One paragraph, Sec. 701.21(c)(4)(i), would state the general rule that loans carry a 15-year maturity. The other, Sec. 701.21(c)(4)(ii), would make more explicit that there are exceptions to the general 15-year maturity limit in Sec. 701.21 (e) through (g) for various types of credit union loans. The proposal would maintain all of current Sec. 701.21(c)(4) in proposed Sec. 701.21(c)(4)(i), which articulates the general 15-year maturity limit that exists on FCU loans. However, the proposal also would add language to clarify that the maturity for a lending action that qualifies as a new loan under GAAP is calculated from the new date of origination. Section 701.21(c)(4)(ii) of the proposal would explicitly state, in three subparagraphs, that three exceptions exist to the general 15-year maturity limit and cross-cite to Sec. Sec. 701.21(e)-(g), which detail them as follows: Paragraph (c)(4)(ii)(A) of the proposal would explicitly cross-cite to the exception to the general 15-year maturity limit that exists in Sec. 701.21(e) regarding covered loans secured, in full or in part, by the insurance or guarantee of, or with an advance commitment to purchase the loan, in full or in part, by the Federal Government, a State government or any agency of either. Paragraph (c)(4)(ii)(B) of the proposal would explicitly cross-cite to the exception to the general 15-year maturity limit that exists in Sec. 701.21(f) regarding covered home improvement, mobile home, and second mortgage loans. Paragraph (c)(4)(ii)(C) of the proposal would explicitly cross-cite to the exception to the general 15-year maturity limit that exists in Sec. 701.21(g) regarding covered 1-4 family real estate loans. The proposal would revise Sec. 701.21(c)(5) to add cross-citations to the specific requirements that exist on loans to a single borrower or group of associated borrowers in the loan participation rule, Sec. 701.22(b)(5)(iv), and member business lending rule, Sec. 723.4(c). The proposal would revise Sec. 701.21(e) to make more explicit that the maturity limits applicable to loans covered by paragraph (e) are notwithstanding the general 15-year limit in paragraph (c)(4). The proposal would also add a cross-citation to paragraph (c)(4). The proposal would retain almost all of current Sec. 701.21(f), but would insert some additional language to improve clarity. The proposal would revise Sec. 701.21(f)(1) to make more explicit that the maturity limit applicable to loans covered by paragraph (f) is notwithstanding the general 15-year limit in paragraph (c)(4). The proposal would also add a cross-citation to paragraph (c)(4). The proposal would retain almost all of current Sec. 701.21(g), but would insert some additional language to improve clarity. [[Page 39625]] The proposal would revise Sec. 701.21(g)(1) to make more explicit that the maturity limit applicable to loans covered by paragraph (g) is notwithstanding the general 15-year limit in paragraph (c)(4). The proposal would also add a cross-citation to paragraph (c)(4). Section 701.22 As described in more detail below, the proposal would make minor conforming amendments to Sec. 701.22(b) regarding loan participations. The proposal would update the cross-citation in Sec. 701.22(b)(1), which provides that for a federally insured credit union to purchase a participation interest in a loan, the loan must comply with all regulatory requirements to the same extent as if the purchasing federally insured credit union had originated the loan. Specifically, the cross-reference in Sec. 701.22(b)(1) is outdated and would be changed from Sec. 723.8 to Sec. 723.4(c). IV. Regulatory Procedures A. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) generally requires that, in connection with a notice of proposed rulemaking, an agency prepare and make available for public comment an initial regulatory flexibility analysis that describes the impact of a proposed rule on small entities. A regulatory flexibility analysis is not required, however, if the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities (defined for purposes of the RFA to include credit unions with assets less than $100 million) and publishes its certification and a short, explanatory statement in the Federal Register together with the rule. The proposed rule reduces regulatory burden through clarifying and technical changes and will not have an impact on small credit unions. Accordingly, the NCUA certifies that the proposed rule will not have a significant economic impact on a substantial number of small credit unions. B. Paperwork Reduction Act The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in which an agency creates new or amends existing information collection requirements.\19\ For purposes of the PRA, an information collection requirement may take the form of a reporting, recordkeeping, or a third-party disclosure requirement. The proposed rule does not contain information collection requirements that require approval by OMB under the PRA.\20\ The proposed rule would only make clarifying and technical changes. --------------------------------------------------------------------------- \19\ 44 U.S.C. 3507(d); 5 CFR part 1320. \20\ 44 U.S.C. chap. 35. --------------------------------------------------------------------------- C. 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 rulemaking will not have a substantial direct effect on the states, on the connection between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. The NCUA has determined that this proposal does not constitute a policy that has federalism implications for purposes of the executive order. D. Assessment of Federal Regulations and Policies on Families The NCUA 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.\21\ --------------------------------------------------------------------------- \21\ Public Law 105-277, 112 Stat. 2681 (1998). --------------------------------------------------------------------------- List of Subjects in 12 CFR Part 701 Credit, Credit unions, Reporting and recordkeeping requirements. By the National Credit Union Administration Board on August 2, 2018. Gerard Poliquin, Secretary of the Board. For the reasons discussed above, the NCUA Board proposes to amend 12 CFR part 701 as follows: PART 701--ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS 0 1. The authority citation for part 701 continues to read as follows: Authority: 12 U.S.C. 1752(5), 1755, 1756, 1757, 1758, 1759, 1761a, 1761b, 1766, 1767, 1782, 1784, 1785, 1786, 1787, 1788, 1789. Section 701.6 is also authorized by 15 U.S.C. 3717. Section 701.31 is also authorized by 15 U.S.C. 1601 et seq.; 42 U.S.C. 1981 and 3601-3610. Section 701.35 is also authorized by 42 U.S.C. 4311-4312. Sec. 701.20 [Amended] 0 2. Amend Sec. 701.20(c)(2) by removing the citation ``723.2 and 723.8'' and adding in its place ``701.22(b)(5)(iv) and 723.4(c)''. 0 3. Amend Sec. 701.21 by revising paragraphs (c)(4) and (5), (e), (f)(1) introductory text, and (g)(1) to read as follows: Sec. 701.21 Loans to members and lines of credit to members. * * * * * (c) * * * (4) Maturity--(i) In general. The maturity of a loan to a member may not exceed 15 years. Lines of credit are not subject to a statutory or regulatory maturity limit. Amortization of line of credit balances and the type and amount of security on any line of credit shall be as determined by contract between the Federal credit union and the member/ borrower. In the case of a lending action that qualifies as a ``new loan'' under GAAP, the new loan's maturity is calculated from the new date of origination. (ii) Exceptions. Notwithstanding the general 15-year maturity limit on loans to members, a federal credit union may make loans with maturities: (A) As specified in the law, regulations or program under which a loan is secured, in full or in part, by the insurance or guarantee of, or with an advance commitment to purchase the loan, in full or in part, by the Federal Government, a State government or any agency of either, as provided in paragraph (e) of this section; (B) Of up to 20 years or such longer term as is provided in paragraph (f) of this section; and (C) Of up to 40 years or such longer term as is provided in paragraph (g) of this section. (5) Ten percent limit. No loan or line of credit advance may be made to any member if such loan or advance would cause that member to be indebted to the Federal credit union upon loans and advances made to the member in an aggregate amount exceeding 10% of the credit union's total unimpaired capital and surplus. In the case of loan participations as defined in Sec. 701.22(a) of this part and commercial loans as defined in Sec. 723.2 of this chapter, additional limitations apply as set forth in Sec. 701.22(b)(5)(iv) of this part and Sec. 723.4(c) of this chapter. * * * * * (e) Insured, guaranteed and advance commitment loans. Notwithstanding the general 15-year maturity limit on loans to members in paragraph (c)(4) of this section, a loan secured, in full or in part, by the insurance or guarantee of, or with an advance commitment to purchase the loan, in full or in part, by the Federal Government, a State government or any agency of either, may be made for the maturity and under the terms and [[Page 39626]] conditions, including rate of interest, specified in the law, regulations or program under which the insurance, guarantee or commitment is provided. (f) 20-year loans. (1) Notwithstanding the general 15-year maturity limit on loans to members in paragraph (c)(4) of this section, a federal credit union may make loans with maturities of up to 20 years in the case of: * * * * * (g) Long-term mortgage loans--(1) Authority. Notwithstanding the general 15-year maturity limit on loans to members in paragraph (c)(4) of this section, a federal credit union may make residential real estate loans to members, including loans secured by manufactured homes permanently affixed to the land, with maturities of up to 40 years, or such longer period as may be permitted by the NCUA Board on a case-by- case basis, subject to the conditions of this paragraph (g). * * * * * Sec. 701.22 [Amended] 0 3. Amend Sec. 701.22(b)(1) by removing the citation ``Sec. 723.8'' and adding in its place ``Sec. 723.4''. [FR Doc. 2018-17087 Filed 8-9-18; 8:45 am] BILLING CODE 7535-01-P
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Proposed Rules Federal Register
Vol. 83, No. 155
Friday, August 10, 2018
This section of the FEDERAL REGISTER • Email: Address to regcomments@ regulatory relief to credit unions, the
contains notices to the public of the proposed ncua.gov. Include ‘‘[Your name] Board proposes to address in this
issuance of rules and regulations. The Comments on Proposed Rule 701, Loans rulemaking the substance of several of
purpose of these notices is to give interested to Members and Lines of Credit to those items and request further public
persons an opportunity to participate in the Members’’ in the email subject line. comment on another. More specifically,
rule making prior to the adoption of the final • Fax: (703) 518–6319. Use the the Board proposes to make the NCUA’s
rules.
subject line described above for email. regulations on loans to members and
• Mail: Address to Gerard S. Poliquin, lines of credit to members more user
NATIONAL CREDIT UNION Secretary of the Board, National Credit friendly by: (1) Identifying in one
ADMINISTRATION Union Administration, 1775 Duke section the various maturity limits
Street, Alexandria, Virginia 22314– applicable to FCU loans; (2) clarifying
12 CFR Part 701 3428. that the maturity for a lending action
• Hand Delivery/Courier: Same as that qualifies as a ‘‘new loan’’ under
mail address. GAAP is calculated from the new date
[RIN 3133–AE88] Public Inspection: You may view all of origination; 4 (3) seeking comment on
public comments on the NCUA’s whether the NCUA should provide for
Loans to Members and Lines of Credit
website at https://www.ncua.gov/ longer, more flexible maturity limits on
to Members
regulation-supervision/Pages/rules/ certain loans; and (4) more clearly
AGENCY: National Credit Union proposed.aspx as submitted, except for expressing the limits in place for loans
Administration (NCUA). those we cannot post for technical to a single borrower or group of
ACTION: Proposed rule. reasons. The NCUA will not edit or associated borrowers.
remove any identifying or contact
SUMMARY: The NCUA Board (Board) information from the public comments II. Summary of the Proposed Rule
proposes to amend its regulations submitted. You may inspect paper A. Loan Maturity Limits for Federal
regarding loans to members and lines of copies of comments in the NCUA’s law Credit Unions
credit to members. The proposal would library at 1775 Duke Street, Alexandria,
Virginia 22314, by appointment Section 107(5) of the FCU Act grants
reduce regulatory burden by making
weekdays between 9 a.m. and 3 p.m. To FCUs the power ‘‘to make loans, the
amendments to improve clarity and to
make an appointment, call (703) 518– maturities of which shall not exceed 15
make compliance easier. Specifically,
6546 or send an email to OGCMail@ years, except as otherwise provided
the Board proposes to make the NCUA’s
ncua.gov. herein. . . .’’ 5 The NCUA implemented
loan maturity requirements more user
this general maturity limit in
friendly by identifying in one section all FOR FURTHER INFORMATION CONTACT: § 701.21(c)(4) of its regulations. Section
of the various maturity limits applicable Thomas I. Zells, Staff Attorney, Office of 107(5)(A)(i)–(iii) of the FCU Act provide
to federal credit union (FCU) loans. The General Counsel, at 1775 Duke Street, exceptions to the general 15-year
Board also proposes to make explicit in Alexandria, VA 22314 or telephone: maturity limit, and have been
its regulations that the maturity date for (703) 548–2478. implemented in § 701.21(e) through (g)
a ‘‘new loan’’ under generally accepted SUPPLEMENTARY INFORMATION: of the NCUA’s regulations. Section
accounting principles (GAAP) is
I. Background 107(5)(A)(i) of the FCU Act,
calculated from the new date of II. Summary of the Proposed Rule implemented in § 701.21(g) of the
origination. Additionally, the Board III. Section-by-Section Analysis NCUA’s regulations, states that ‘‘a
seeks comment on whether the agency IV. Regulatory Procedures residential real estate loan on a one-to-
should provide longer maturity limits
I. Background four-family dwelling, including an
for 1–4 family real estate loans and
individual cooperative unit, that is or
other loans permitted by the Federal In August 2017, the Board published
will be the principal residence of a
Credit Union Act (FCU Act) such as and sought comment on the NCUA’s
credit union member, and which is
home improvement, mobile home, and regulatory reform agenda (Agenda).1
secured by a first lien upon such
second mortgage loans. Finally, the The Agenda identifies those regulations
dwelling, may have a maturity not
Board proposes to more clearly express the Board intends to amend or repeal
exceeding thirty years or such other
the limits for loans to a single borrower because they are outdated, ineffective,
limits as shall be set by the National
or group of associated borrowers. or excessively burdensome.2
A number of the items in the Agenda Credit Union Administration Board
DATES: Comments must be received on (except that a loan on an individual
or before October 9, 2018. relate to the NCUA’s regulations on
loans to members and lines of credit to cooperative unit shall be adequately
ADDRESSES: You may submit comments secured as defined by the Board),
members.3 In order to provide
by any of the following methods (Please subject to the rules and regulations of
daltland on DSKBBV9HB2PROD with PROPOSALS
send comments by one method only): 1 82 FR 39702 (Aug. 22, 2017). the Board[.]’’ 6 Pursuant to the authority
• Federal eRulemaking Portal: http:// 2 Thisis consistent with the spirit of President
www.regulations.gov. Follow the Trump’s regulatory reform agenda and Executive 4 GAAP is defined as generally accepted
instructions for submitting comments. Order 13777. Although the NCUA, as an accounting principles in the United States as set
forth in the Financial Accounting Standards Board’s
• NCUA website: https:// independent agency, is not required to comply with
(FASB) Accounting Standards Codification (ASC).
Executive Order 13777, the Board has chosen to
www.ncua.gov/regulation-supervision/ comply with it in spirit and has reviewed all of the 5 12 U.S.C. 1757(5).
Pages/rules/proposed.aspx. Follow the NCUA’s regulations to that end. 6 12 U.S.C. 1757(5)(A)(i) (emphasis added); 12
instructions for submitting comments. 3 12 CFR 701.21. CFR 701.21(g).
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![Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Proposed Rules 39623
§ 107(5)(A)(i) of the FCU Act grants the 107(5) of the FCU Act places on loans (2) the appropriate maturity limits for
Board to set alternate maturities for to members. Paragraphs (e), (f), and (g) such lending actions; (3) whether the
covered 1–4 family real estate loans, the of § 701.21 implement the three case-by-case Board exemption should be
Board has established a 40-year exceptions to this general 15-year limit retained and, if so, under what
maximum maturity for such loans and that appear in section 107(5)(A)(i)–(iii) circumstances would such exemptions
has provided that longer periods may be of the FCU Act. be appropriate; and (4) any other issues
permitted by the Board on a case-by- Having the various maturity limits stakeholders believe relevant. The Board
case basis.7 Section 107(5)(A)(ii) of the spread among numerous sections of the also requests that commenters consider
FCU Act, implemented in § 701.21(f) of NCUA’s regulations, often separated by FCU Act limitations when requesting
the NCUA’s regulations, states that ‘‘a large amounts of regulatory text relief and changes in this area.
loan to finance the purchase of a mobile unrelated to maturities, can be
home, which shall be secured by a first confusing to the reader and makes it B. Single Borrower and Group of
lien on such mobile home, to be used more difficult to understand the lending Associated Borrowers Limits
by the credit union member as his regulations. To remedy this, the Board i. More Clearly Identifying the Various
residence, a loan for the repair, proposes to make the NCUA’s loan Limits
alteration, or improvement of a maturity requirements more
residential dwelling which is the understandable and user-friendly by Currently, three provisions of the
residence of a credit union member, or identifying in one section NCUA’s regulations address limits on
a second mortgage loan secured by a (§ 701.21(c)(4)), including cross- loans to a single borrower or group of
residential dwelling which is the citations, all of the maturity limits associated borrowers: (1) § 701.21(c)(5)
residence of a credit union member, applicable to FCU loans. addresses the general limit; (2)
shall have a maturity not to exceed 15 § 701.22(b)(5)(iv) addresses the limit on
ii. The Treatment of Maturities for loan participations; and (3) § 723.4(c)
years or any longer term which the Lending Actions That Qualify as ‘‘New
Board may allow[.]’’ 8 Pursuant to the addresses the limit on commercial
Loans’’ Under GAAP loans. Because these provisions are
authority section 107(5)(A)(ii) grants the
Board to set alternate maturities for The proposal also clarifies that in the spread among several sections of the
covered loans, the Board has established case of a lending action qualifying as a NCUA’s regulations, some stakeholders
a 20-year maximum maturity for such ‘‘new loan’’ under GAAP, the maturity are not aware that there are multiple
loans.9 Finally, section 107(5)(A)(iii) of limit is calculated from the new date of limits that apply in different contexts.
the FCU Act, implemented in origination.11 The Board proposes to To rectify this, the proposal makes clear
§ 701.21(e) of the NCUA’s regulations, accomplish this by adding language to that all three of these limits exist. Rather
states that ‘‘a loan secured by the § 701.21(c)(4), which articulates the than move the loans to one borrower or
insurance or guarantee of, or with general 15-year maturity limit. group of associated borrowers limits
advance commitment to purchase the that specifically apply to loan
iii. Request for Comment on Providing participations and commercial loans
loan by, the Federal Government, a State Longer Maturity Limits for Certain
government, or any agency of either may from their current regulatory sections to
Loans the general limit section, the Board
be made for the maturity and under the
terms and conditions specified in the The Board is considering providing proposes to include cross-citations to
law under which such insurance, longer maturity limits for 1–4 family the more specific loan participation and
guarantee, or commitment is real estate loans and other loans (such commercial loan limits in the general
provided[.]’’ 10 as certain home improvement, mobile limit section (§ 701.21(c)(5)). The Board
home, and second mortgage loans) as believes that inserting cross-citations is
i. Identifying the Various Maturity permitted by section 107(5)(A)(i)–(ii) of a more efficient and user friendly way
Limits in One Section the FCU Act and removing the case-by- to identify that there are multiple
Presently, § 701.21 of the NCUA’s case exception the Board can grant. As lending limits throughout the NCUA’s
regulations addresses various loan discussed earlier, these maturity limits regulations.
maturity limits in paragraphs (c), (e), (f), are implemented in § 701.21(f) and (g) of Section 701.21(c)(5), as part of the
and (g). Paragraph (c) provides the the NCUA’s regulations. The case-by- general rules on loans and lines of credit
general rules applicable to all loans to case exception is located in to members, imposes the FCU Act’s ten
members and, where indicated, all lines § 701.21(g)(1) of the NCUA’s regulations percent limit on loans and lines of
of credit (including credit cards) to and provides that the Board can permit credit to any member.13 Specifically,
members, except as otherwise provided an FCU to make loans with maturities § 701.21(c)(5) requires that ‘‘[n]o loan or
in the remaining provisions of § 701.21. that exceed the regulation’s 40-year line of credit advance may be made to
Paragraph (c)(4) implements the general limit ‘‘on a case-by-case basis, subject to any member if such loan or advance
15-year maturity limit that section the conditions of this paragraph (g).’’ 12 would cause that member to be indebted
The Board believes that more input is to the Federal credit union upon loans
7 12 CFR 701.21(g)(1) (stating that ‘‘[a] federal
necessary to determine whether longer and advances made to the member in
credit union may make residential real estate loans
to members, including loans secured by
maturity limits should be adopted and, the aggregate amount exceeding 10% of
manufactured homes permanently affixed to the if so, the proper maturity lengths and the credit union’s total unimpaired
land, with maturities of up to 40 years, or such the reasons such longer maturities are capital and surplus.’’ 14 Section
longer period as may be permitted by the NCUA warranted. As such, the Board asks that 701.21(c)(5) also provides an outdated
daltland on DSKBBV9HB2PROD with PROPOSALS
Board on a case-by-case basis, subject to the
conditions of this paragraph[.]’’). commenters provide detailed comments cross-citation to part 723 for the specific
8 12 U.S.C. 1757(5)(A)(ii) (emphasis added); 12 addressing: (1) Whether the NCUA limit on commercial lending. The Board
CFR 701.21(f). should provide longer maturity limits proposes to remove this outdated cross-
9 12 CFR 701.21(f)(1) (stating that
for certain lending actions permitted by citation and provide updated references
‘‘[n]otwithstanding the general 15-year maturity
limit on loans to members, a federal credit union
section 107(5)(A)(i)–(ii) of the FCU Act; to both the current loan participation
may make loans with maturities of up to 20 years’’
for loans covered by this paragraph.). 11 ASC 310–20–35–9 & 10. 13 12 U.S.C. 1757(5)(A)(x).
10 12 U.S.C. 1757(5)(A)(iii); 12 CFR 701.21(e). 12 12 CFR 701.21(g)(1). 14 12 CFR 701.21(c)(5).
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![Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Proposed Rules 39625
The proposal would revise information collection requirements that ■ 3. Amend § 701.21 by revising
§ 701.21(g)(1) to make more explicit that require approval by OMB under the paragraphs (c)(4) and (5), (e), (f)(1)
the maturity limit applicable to loans PRA.20 The proposed rule would only introductory text, and (g)(1) to read as
covered by paragraph (g) is make clarifying and technical changes. follows:
notwithstanding the general 15-year
limit in paragraph (c)(4). The proposal C. Executive Order 13132 § 701.21 Loans to members and lines of
credit to members.
would also add a cross-citation to Executive Order 13132 encourages
paragraph (c)(4). independent regulatory agencies to * * * * *
consider the impact of their actions on (c) * * *
Section 701.22 (4) Maturity—(i) In general. The
state and local interests. In adherence to
As described in more detail below, fundamental federalism principles, the maturity of a loan to a member may not
the proposal would make minor NCUA, an independent regulatory exceed 15 years. Lines of credit are not
conforming amendments to § 701.22(b) agency as defined in 44 U.S.C. 3502(5), subject to a statutory or regulatory
regarding loan participations. voluntarily complies with the executive maturity limit. Amortization of line of
The proposal would update the cross- order. This rulemaking will not have a credit balances and the type and amount
citation in § 701.22(b)(1), which substantial direct effect on the states, on of security on any line of credit shall be
provides that for a federally insured the connection between the national as determined by contract between the
credit union to purchase a participation government and the states, or on the Federal credit union and the member/
interest in a loan, the loan must comply distribution of power and borrower. In the case of a lending action
with all regulatory requirements to the responsibilities among the various that qualifies as a ‘‘new loan’’ under
same extent as if the purchasing levels of government. The NCUA has GAAP, the new loan’s maturity is
federally insured credit union had determined that this proposal does not calculated from the new date of
originated the loan. Specifically, the constitute a policy that has federalism origination.
cross-reference in § 701.22(b)(1) is (ii) Exceptions. Notwithstanding the
implications for purposes of the
outdated and would be changed from general 15-year maturity limit on loans
executive order.
§ 723.8 to § 723.4(c). to members, a federal credit union may
D. Assessment of Federal Regulations make loans with maturities:
IV. Regulatory Procedures and Policies on Families (A) As specified in the law,
A. Regulatory Flexibility Act regulations or program under which a
The NCUA has determined that this
loan is secured, in full or in part, by the
The Regulatory Flexibility Act (RFA) final rule will not affect family well-
generally requires that, in connection insurance or guarantee of, or with an
being within the meaning of Section 654
with a notice of proposed rulemaking, advance commitment to purchase the
of the Treasury and General
an agency prepare and make available loan, in full or in part, by the Federal
Government Appropriations Act,
for public comment an initial regulatory Government, a State government or any
1999.21
flexibility analysis that describes the agency of either, as provided in
impact of a proposed rule on small List of Subjects in 12 CFR Part 701 paragraph (e) of this section;
Credit, Credit unions, Reporting and (B) Of up to 20 years or such longer
entities. A regulatory flexibility analysis
recordkeeping requirements. term as is provided in paragraph (f) of
is not required, however, if the agency
certifies that the rule will not have a this section; and
By the National Credit Union (C) Of up to 40 years or such longer
significant economic impact on a Administration Board on August 2, 2018. term as is provided in paragraph (g) of
substantial number of small entities Gerard Poliquin, this section.
(defined for purposes of the RFA to Secretary of the Board. (5) Ten percent limit. No loan or line
include credit unions with assets less of credit advance may be made to any
than $100 million) and publishes its For the reasons discussed above, the
NCUA Board proposes to amend 12 CFR member if such loan or advance would
certification and a short, explanatory
part 701 as follows: cause that member to be indebted to the
statement in the Federal Register
Federal credit union upon loans and
together with the rule. The proposed
PART 701—ORGANIZATION AND advances made to the member in an
rule reduces regulatory burden through
OPERATION OF FEDERAL CREDIT aggregate amount exceeding 10% of the
clarifying and technical changes and
UNIONS credit union’s total unimpaired capital
will not have an impact on small credit
and surplus. In the case of loan
unions. Accordingly, the NCUA certifies 1. The authority citation for part 701
■ participations as defined in § 701.22(a)
that the proposed rule will not have a continues to read as follows: of this part and commercial loans as
significant economic impact on a
Authority: 12 U.S.C. 1752(5), 1755, 1756, defined in § 723.2 of this chapter,
substantial number of small credit
unions. 1757, 1758, 1759, 1761a, 1761b, 1766, 1767, additional limitations apply as set forth
1782, 1784, 1785, 1786, 1787, 1788, 1789. in § 701.22(b)(5)(iv) of this part and
B. Paperwork Reduction Act Section 701.6 is also authorized by 15 U.S.C. § 723.4(c) of this chapter.
3717. Section 701.31 is also authorized by 15 * * * * *
The Paperwork Reduction Act of 1995
U.S.C. 1601 et seq.; 42 U.S.C. 1981 and 3601– (e) Insured, guaranteed and advance
(PRA) applies to rulemakings in which 3610. Section 701.35 is also authorized by 42
an agency creates new or amends U.S.C. 4311–4312.
commitment loans. Notwithstanding the
existing information collection general 15-year maturity limit on loans
daltland on DSKBBV9HB2PROD with PROPOSALS
requirements.19 For purposes of the § 701.20 [Amended] to members in paragraph (c)(4) of this
PRA, an information collection ■ 2. Amend § 701.20(c)(2) by removing section, a loan secured, in full or in part,
requirement may take the form of a the citation ‘‘723.2 and 723.8’’ and by the insurance or guarantee of, or with
reporting, recordkeeping, or a third- adding in its place ‘‘701.22(b)(5)(iv) and an advance commitment to purchase the
party disclosure requirement. The 723.4(c)’’. loan, in full or in part, by the Federal
proposed rule does not contain Government, a State government or any
20 44 U.S.C. chap. 35. agency of either, may be made for the
19 44 U.S.C. 3507(d); 5 CFR part 1320. 21 Public Law 105–277, 112 Stat. 2681 (1998). maturity and under the terms and
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![39626 Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Proposed Rules
conditions, including rate of interest, DATES: We must receive comments on all comments received by the closing
specified in the law, regulations or this proposed AD by September 24, date and may amend this NPRM
program under which the insurance, 2018. because of those comments.
guarantee or commitment is provided. ADDRESSES: You may send comments, We will post all comments we
(f) 20-year loans. (1) Notwithstanding using the procedures found in 14 CFR receive, without change, to http://
the general 15-year maturity limit on 11.43 and 11.45, by any of the following www.regulations.gov, including any
loans to members in paragraph (c)(4) of methods: personal information you provide. We
this section, a federal credit union may • Federal eRulemaking Portal: Go to will also post a report summarizing each
make loans with maturities of up to 20 http://www.regulations.gov. Follow the substantive verbal contact we receive
years in the case of: instructions for submitting comments. about this NPRM.
* * * * * • Fax: 202–493–2251. Discussion
(g) Long-term mortgage loans—(1) • Mail: U.S. Department of
The European Aviation Safety Agency
Authority. Notwithstanding the general Transportation, Docket Operations, M–
(EASA), which is the Technical Agent
15-year maturity limit on loans to 30, West Building Ground Floor, Room
for the Member States of the European
members in paragraph (c)(4) of this W12–140, 1200 New Jersey Avenue SE,
Union, has issued EASA AD 2018–0078,
section, a federal credit union may make Washington, DC 20590.
dated April 9, 2018 (referred to after this
residential real estate loans to members, • Hand Delivery: Deliver to Mail
as the Mandatory Continuing
including loans secured by address above between 9 a.m. and 5
Airworthiness Information, or ‘‘the
manufactured homes permanently p.m., Monday through Friday, except
MCAI’’), to correct an unsafe condition
affixed to the land, with maturities of up Federal holidays.
For service information identified in for all Dassault Aviation Model Falcon
to 40 years, or such longer period as
this NPRM, contact Dassault Falcon Jet 10 airplanes. The MCAI states:
may be permitted by the NCUA Board
on a case-by-case basis, subject to the Corporation, Teterboro Airport, P.O. The airworthiness limitations and
conditions of this paragraph (g). Box 2000, South Hackensack, NJ 07606; certification maintenance instructions for the
telephone 201–440–6700; internet Dassault Falcon 10 aeroplanes, which are
* * * * * approved by EASA, are currently defined and
http://www.dassaultfalcon.com. You published in the Dassault Falcon 10
§ 701.22 [Amended] may view this service information at the [Airplane Maintenance Manual] AMM,
■ 3. Amend § 701.22(b)(1) by removing FAA, Transport Standards Branch, 2200 Chapter 5–40. These instructions have been
the citation ‘‘§ 723.8’’ and adding in its South 216th St., Des Moines, WA. For identified as mandatory for continued
place ‘‘§ 723.4’’. information on the availability of this airworthiness.
[FR Doc. 2018–17087 Filed 8–9–18; 8:45 am] material at the FAA, call 206–231–3195. Failure to accomplish these instructions
could result in an unsafe condition [fatigue
BILLING CODE 7535–01–P Examining the AD Docket cracking and damage in principal structural
You may examine the AD docket on elements, which could result in reduced
the internet at http:// structural integrity of the airplane.]
Previously, EASA issued AD 2008–0221 to
DEPARTMENT OF TRANSPORTATION www.regulations.gov by searching for require accomplishment of the maintenance
and locating Docket No. FAA–2018– tasks, and implementation of the
Federal Aviation Administration 0642; or in person at Docket Operations airworthiness limitations, as specified in the
between 9 a.m. and 5 p.m., Monday Dassault Falcon 10 AMM, Chapter 5–40, at
14 CFR Part 39 through Friday, except Federal holidays. Revision 8.
The AD docket contains this NPRM, the Since that [EASA] AD was issued, Dassault
[Docket No. FAA–2018–0642; Product regulatory evaluation, any comments issued the [Airworthiness Limitations
Identifier 2018–NM–087–AD] received, and other information. The Section] ALS, which introduces new and
street address for Docket Operations more restrictive maintenance requirements
RIN 2120–AA64 and/or airworthiness limitations.
(phone: 800–647–5527) is in the For the reason described above, this
ADDRESSES section. Comments will be [EASA] AD takes over the requirements for
Airworthiness Directives; Dassault available in the AD docket shortly after Falcon 10 aeroplanes from EASA AD 2008–
Aviation Airplanes receipt. 0221, and requires accomplishment of the
AGENCY: Federal Aviation FOR FURTHER INFORMATION CONTACT: Tom actions specified in the ALS.
Administration (FAA), DOT. Rodriguez, Aerospace Engineer, You may examine the MCAI in the
ACTION: Notice of proposed rulemaking International Section, Transport AD docket on the internet at http://
(NPRM). Standards Branch, FAA, 2200 South www.regulations.gov by searching for
216th St., Des Moines, WA 98198; and locating Docket No. FAA–2018–
SUMMARY: We propose to adopt a new telephone and fax 206–231–3226. 0642.
airworthiness directive (AD) for all SUPPLEMENTARY INFORMATION:
Dassault Aviation Model Falcon 10 Related Service Information Under 1
airplanes. This proposed AD was Comments Invited CFR Part 51
prompted by a determination that more We invite you to send any written Dassault has issued Falcon 10
restrictive maintenance requirements relevant data, views, or arguments about Maintenance Manual, Airworthiness
and airworthiness limitations are this proposal. Send your comments to Limitations, Chapter 5–40–00, Revision
daltland on DSKBBV9HB2PROD with PROPOSALS
necessary. This proposed AD would an address listed under the ADDRESSES 13, dated July 2017. This service
require revising the maintenance or section. Include ‘‘Docket No. FAA– information describes repetitive
inspection program, as applicable, to 2018–0642; Product Identifier 2018– mandatory maintenance tasks. This
incorporate new or more restrictive NM–087–AD’’ at the beginning of your service information is reasonably
maintenance requirements and comments. We specifically invite available because the interested parties
airworthiness limitations. We are comments on the overall regulatory, have access to it through their normal
proposing this AD to address the unsafe economic, environmental, and energy course of business or by the means
condition on these products. aspects of this NPRM. We will consider identified in the ADDRESSES section.
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Document Created: 2018-08-10 01:57:19
Document Modified: 2018-08-10 01:57:19
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Proposed rule. | |
| Dates | Comments must be received on or before October 9, 2018. | |
| Contact | Thomas I. Zells, Staff Attorney, Office of General Counsel, at 1775 Duke Street, Alexandria, VA 22314 or telephone: (703) 548-2478. | |
| FR Citation | 83 FR 39622 | |
| CFR Associated | Credit; Credit Unions and Reporting and Recordkeeping Requirements |
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