Corporate Credit Unions, 57283-57284 [2015-24160]
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57283
Rules and Regulations
Federal Register
Vol. 80, No. 184
Wednesday, September 23, 2015
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. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
EXECUTIVE OFFICE OF THE
PRESIDENT
Office of National Drug Control Policy
21 CFR Parts 1403, 1404, and 1405
[FR Doc. 2015–24114 Filed 9–22–15; 8:45 am]
RIN 3201–AA00
BILLING CODE 3280–F5–P
Uniform Administrative Requirements,
Cost Principles, and Audit
Requirements for Federal Awards
Office of National Drug Control
Policy, Executive Office of the
President.
ACTION: Final rule.
AGENCY:
The Office of National Drug
Control Policy (ONDCP), Executive
Office of the President, finalizes its
portion of the uniform Federal
assistance rule published by the Office
of Management and Budget, in the
Federal Register on December 19, 2014.
DATES: This rule is effective on
September 23, 2015.
FOR FURTHER INFORMATION CONTACT:
David A. Shull, Deputy General
Counsel, Office of National Drug Control
Policy, 750 17th Street NW.,
Washington, DC 20504. Telephone:
(202) 395–6650.
SUPPLEMENTARY INFORMATION: On
December 19, 2014, the Office of
Information and Regulatory Affairs
(OIRA) of the Office of Management and
Budget, published an interim final rule
that provided comprehensive
modifications to the principles and
requirements for Federal awards (79 FR
75871). The uniform rules were initially
published as 2 CFR part 200. As a part
of that rulemaking, the Office of
National Drug Control Policy (ONDCP)
adopted 2 CFR part 200 in a new part
3603 and removed and reserved its past
rules from 21 CFR parts 1403–1405.
The ONDCP received no relevant
comments in response to the rule.
mstockstill on DSK4VPTVN1PROD with RULES
SUMMARY:
16:11 Sep 22, 2015
Regulatory Analysis
For the regulatory findings and
analysis regarding this rulemaking,
please refer to the analysis prepared by
OIRA in the interim final rule, which is
incorporated herein (79 FR at 75876).
Accordingly, the interim rule adding
2 CFR part 3603 and amending 21 CFR
parts 1403, 1404, and 1405, which was
published at 79 FR 75871 on December
19, 2014, is adopted as a final rule
without change.
Dated: September 16, 2015.
David A. Shull,
Deputy General Counsel.
2 CFR Part 3603
VerDate Sep<11>2014
Therefore, 2 CFR part 3603, as described
in the interim final rule, is adopted with
no changes.
Jkt 235001
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Part 704
Corporate Credit Unions
National Credit Union
Administration (NCUA).
ACTION: Final rule.
AGENCY:
The NCUA Board (Board) is
issuing this final rule to exclude Central
Liquidity Facility-related bridge loans
(CLF-related bridge loans) from the
aggregate unsecured lending cap to one
borrower applicable to corporate credit
unions (Corporates). Specifically, a CLFrelated bridge loan that is exempt from
that cap is a bridge loan made by a
Corporate to a natural person credit
union where the natural person credit
union has been approved for a loan by
the CLF and is awaiting funding from
the CLF. Additionally, this rule
excludes CLF-related bridge loans from
the calculation of ‘‘net assets’’ and ‘‘net
risk weighted assets’’ for determining
minimum capital requirements.
DATES: This rule is effective October 23,
2015.
FOR FURTHER INFORMATION CONTACT: J.
Owen Cole, President, Central Liquidity
Facility, at 1775 Duke Street,
Alexandria, VA 22314 or telephone
(703) 518–6360; David Shetler, Deputy
Director, Office of National
Examinations and Supervision, at the
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Comment Summary and Final
Amendments
III. Regulatory Procedures
I. Background
At its April 2015 meeting,1 the Board
issued a proposed rule to exclude CFLrelated bridge loans from the aggregate
unsecured lending cap to one borrower
applicable to Corporates. The Board
issued this proposed rule to provide
flexibility to Corporates to enhance their
ability to serve natural person credit
unions. That proposal was largely in
response to comments received on a
November 2014 proposed rule that
made several technical amendments to
NCUA’s corporate regulation.2
II. Comment Summary and Final
Amendments
RIN 3133–AE52
SUMMARY:
above address or telephone (703) 518–
6640; or Justin M. Anderson, Senior
Staff Attorney, Office of General
Counsel, at the above address or
telephone (703) 518–6540.
In response to the April 2015
proposal, the Board received seven
comment letters. The commenters were
comprised of Corporates and credit
union trade associations. All of the
commenters supported the proposed
changes and did not recommend any
amendments. Accordingly, for the
reasons set forth in the preamble to the
April 2015 proposal, the Board is
finalizing that proposed rule as
published.
III. Regulatory Procedures
1. Regulatory Flexibility Act
The Regulatory Flexibility Act
requires NCUA to prepare an analysis of
any significant economic impact a
regulation may have on a substantial
number of small entities (primarily
those under $50 million in assets).3 This
rule only affects Corporates, all of which
have more than $50 million in assets.
Accordingly, NCUA certifies the rule
will not have a significant economic
impact on a substantial number of small
credit unions.
1 80
FR 27108 (May 12, 2015).
FR 65353 (Nov. 4, 2014).
3 5 U.S.C. 603(a); 12 U.S.C. 1787(c)(1).
2 79
E:\FR\FM\23SER1.SGM
23SER1
57284
Federal Register / Vol. 80, No. 184 / Wednesday, September 23, 2015 / Rules and Regulations
2. Paperwork Reduction Act.
The Paperwork Reduction Act of 1995
(PRA) applies to rulemakings in which
an agency by rule creates a new
paperwork burden or increases an
existing burden.4 For purposes of the
PRA, a paperwork burden may take the
form of a reporting or recordkeeping
requirement, both referred to as
information collections. This rule does
not create any new burdens or increase
any existing burdens. Therefore, a PRA
analysis is not required.
3. Executive Order 13132
Executive Order 13132 encourages
independent regulatory agencies to
consider the impact of their actions on
state and local interests. 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 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. NCUA has,
therefore, determined that this 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
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).
mstockstill on DSK4VPTVN1PROD with RULES
5. 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 NCUA issues a final
rule as defined by Section 551 of the
Administrative Procedure Act. NCUA
does not believe this final rule is a
‘‘major rule’’ within the meaning of the
relevant sections of SBREFA. NCUA has
submitted the rule to the Office of
Management and Budget for its
determination in that regard.
4 44
U.S.C. 3507(d); 5 CFR part 1320.
VerDate Sep<11>2014
16:11 Sep 22, 2015
Jkt 235001
List of Subjects in 12 CFR Part 704
Credit unions, Corporate credit
unions, Reporting and recordkeeping
requirements.
Gerard Poliquin,
Secretary of the Board.
For the reasons discussed above, the
National Credit Union Administration
amends 12 CFR part 704 as follows:
PART 704—CORPORATE CREDIT
UNIONS
1. The authority citation for part 704
continues to read as follows:
■
Authority: 12 U.S.C. 1766(a), 1781, and
1789.
2. Amend § 704.2 by adding a
definition for CLF-related bridge loan in
alphabetical order and revising the
definitions of Net assets and Net riskweighted assets to read as follows:
■
§ 704.2
Definitions.
*
*
*
*
*
CLF-related bridge loan means
interim financing, extending up to ten
business days, that a corporate credit
union provides for a natural person
credit union from the time the CLF
approves a loan to the natural person
credit union until the CLF funds the
loan. To repay a CLF-related bridge
loan, the borrowing natural person
credit union assigns the proceeds of the
CLF advance to the corporate credit
union making the CLF-related bridge
loan for the duration of the bridge loan.
*
*
*
*
*
Net assets means total assets less
Central Liquidity Facility (CLF) stock
subscriptions, CLF-related bridge loans,
loans guaranteed by the National Credit
Union Share Insurance Fund (NCUSIF),
and member reverse repurchase
transactions. For its own account, a
corporate credit union’s payables under
reverse repurchase agreements and
receivables under repurchase
agreements may be netted out if the
GAAP conditions for offsetting are met.
Also, any amounts deducted in
calculating Tier 1 capital are also
deducted from net assets.
*
*
*
*
*
Net risk-weighted assets means riskweighted assets less CLF stock
subscriptions, CLF-related bridge loans,
loans guaranteed by the NCUSIF, and
member reverse repurchase
transactions. For its own account, a
corporate credit union’s payables under
reverse repurchase agreements and
receivables under repurchase
agreements may be netted out if the
GAAP conditions for offsetting are met.
Also, any amounts deducted in
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
calculating Tier 1 capital are also
deducted from net risk-weighted assets.
*
*
*
*
*
■ 3. Amend § 704.7 by revising
paragraph (c)(1)(i) and revising
paragraph (d)(1) to read as follows:
§ 704.7
Lending.
*
*
*
*
*
(c) * * *
(1) * * *
(i) The maximum aggregate amount in
unsecured loans and lines of credit from
a corporate credit union to any one
member credit union, excluding CLFrelated bridge loans and pass-through
and guaranteed loans from the CLF and
the NCUSIF, must not exceed 50 percent
of the corporate credit union’s total
capital.
*
*
*
*
*
(d) * * *
(1) Credit unions. A loan to a
nonmember credit union, other than
through a loan participation with
another corporate credit union or a CLFrelated bridge loan, is only permissible
if the loan is for an overdraft related to
the providing of correspondent services
pursuant to § 704.12. Generally, such a
loan will have a maturity of one
business day.
*
*
*
*
*
[FR Doc. 2015–24160 Filed 9–22–15; 8:45 am]
BILLING CODE 7535–01–P
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Parts 740, 741, 747, and 796
RIN 3133–AE56
Civil Monetary Penalty Inflation
Adjustment
National Credit Union
Administration (NCUA).
ACTION: Final rule.
AGENCY:
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.
DATES: This rule is effective September
23, 2015.
FOR FURTHER INFORMATION CONTACT: Ian
Marenna, Trial Attorney, Office of
General Counsel, 1775 Duke Street,
Alexandria, VA 22314, or by telephone
(703) 518–6540.
SUMMARY:
E:\FR\FM\23SER1.SGM
23SER1
]]>Agencies
[Federal Register Volume 80, Number 184 (Wednesday, September 23, 2015)]
[Rules and Regulations]
[Pages 57283-57284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-24160]
=======================================================================
-----------------------------------------------------------------------
NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 704
RIN 3133-AE52
Corporate Credit Unions
AGENCY: National Credit Union Administration (NCUA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The NCUA Board (Board) is issuing this final rule to exclude
Central Liquidity Facility-related bridge loans (CLF-related bridge
loans) from the aggregate unsecured lending cap to one borrower
applicable to corporate credit unions (Corporates). Specifically, a
CLF-related bridge loan that is exempt from that cap is a bridge loan
made by a Corporate to a natural person credit union where the natural
person credit union has been approved for a loan by the CLF and is
awaiting funding from the CLF. Additionally, this rule excludes CLF-
related bridge loans from the calculation of ``net assets'' and ``net
risk weighted assets'' for determining minimum capital requirements.
DATES: This rule is effective October 23, 2015.
FOR FURTHER INFORMATION CONTACT: J. Owen Cole, President, Central
Liquidity Facility, at 1775 Duke Street, Alexandria, VA 22314 or
telephone (703) 518-6360; David Shetler, Deputy Director, Office of
National Examinations and Supervision, at the above address or
telephone (703) 518-6640; or Justin M. Anderson, Senior Staff Attorney,
Office of General Counsel, at the above address or telephone (703) 518-
6540.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Comment Summary and Final Amendments
III. Regulatory Procedures
I. Background
At its April 2015 meeting,\1\ the Board issued a proposed rule to
exclude CFL-related bridge loans from the aggregate unsecured lending
cap to one borrower applicable to Corporates. The Board issued this
proposed rule to provide flexibility to Corporates to enhance their
ability to serve natural person credit unions. That proposal was
largely in response to comments received on a November 2014 proposed
rule that made several technical amendments to NCUA's corporate
regulation.\2\
---------------------------------------------------------------------------
\1\ 80 FR 27108 (May 12, 2015).
\2\ 79 FR 65353 (Nov. 4, 2014).
---------------------------------------------------------------------------
II. Comment Summary and Final Amendments
In response to the April 2015 proposal, the Board received seven
comment letters. The commenters were comprised of Corporates and credit
union trade associations. All of the commenters supported the proposed
changes and did not recommend any amendments. Accordingly, for the
reasons set forth in the preamble to the April 2015 proposal, the Board
is finalizing that proposed rule as published.
III. Regulatory Procedures
1. Regulatory Flexibility Act
The Regulatory Flexibility Act requires NCUA to prepare an analysis
of any significant economic impact a regulation may have on a
substantial number of small entities (primarily those under $50 million
in assets).\3\ This rule only affects Corporates, all of which have
more than $50 million in assets. Accordingly, NCUA certifies the rule
will not have a significant economic impact on a substantial number of
small credit unions.
---------------------------------------------------------------------------
\3\ 5 U.S.C. 603(a); 12 U.S.C. 1787(c)(1).
---------------------------------------------------------------------------
[[Page 57284]]
2. Paperwork Reduction Act.
The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in
which an agency by rule creates a new paperwork burden or increases an
existing burden.\4\ For purposes of the PRA, a paperwork burden may
take the form of a reporting or recordkeeping requirement, both
referred to as information collections. This rule does not create any
new burdens or increase any existing burdens. Therefore, a PRA analysis
is not required.
---------------------------------------------------------------------------
\4\ 44 U.S.C. 3507(d); 5 CFR part 1320.
---------------------------------------------------------------------------
3. Executive Order 13132
Executive Order 13132 encourages independent regulatory agencies to
consider the impact of their actions on state and local interests.
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 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. NCUA has,
therefore, determined that this 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
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).
5. 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 NCUA issues a
final rule as defined by Section 551 of the Administrative Procedure
Act. NCUA does not believe this final rule is a ``major rule'' within
the meaning of the relevant sections of SBREFA. NCUA has submitted the
rule to the Office of Management and Budget for its determination in
that regard.
List of Subjects in 12 CFR Part 704
Credit unions, Corporate credit unions, Reporting and recordkeeping
requirements.
Gerard Poliquin,
Secretary of the Board.
For the reasons discussed above, the National Credit Union
Administration amends 12 CFR part 704 as follows:
PART 704--CORPORATE CREDIT UNIONS
0
1. The authority citation for part 704 continues to read as follows:
Authority: 12 U.S.C. 1766(a), 1781, and 1789.
0
2. Amend Sec. 704.2 by adding a definition for CLF-related bridge loan
in alphabetical order and revising the definitions of Net assets and
Net risk-weighted assets to read as follows:
Sec. 704.2 Definitions.
* * * * *
CLF-related bridge loan means interim financing, extending up to
ten business days, that a corporate credit union provides for a natural
person credit union from the time the CLF approves a loan to the
natural person credit union until the CLF funds the loan. To repay a
CLF-related bridge loan, the borrowing natural person credit union
assigns the proceeds of the CLF advance to the corporate credit union
making the CLF-related bridge loan for the duration of the bridge loan.
* * * * *
Net assets means total assets less Central Liquidity Facility (CLF)
stock subscriptions, CLF-related bridge loans, loans guaranteed by the
National Credit Union Share Insurance Fund (NCUSIF), and member reverse
repurchase transactions. For its own account, a corporate credit
union's payables under reverse repurchase agreements and receivables
under repurchase agreements may be netted out if the GAAP conditions
for offsetting are met. Also, any amounts deducted in calculating Tier
1 capital are also deducted from net assets.
* * * * *
Net risk-weighted assets means risk-weighted assets less CLF stock
subscriptions, CLF-related bridge loans, loans guaranteed by the
NCUSIF, and member reverse repurchase transactions. For its own
account, a corporate credit union's payables under reverse repurchase
agreements and receivables under repurchase agreements may be netted
out if the GAAP conditions for offsetting are met. Also, any amounts
deducted in calculating Tier 1 capital are also deducted from net risk-
weighted assets.
* * * * *
0
3. Amend Sec. 704.7 by revising paragraph (c)(1)(i) and revising
paragraph (d)(1) to read as follows:
Sec. 704.7 Lending.
* * * * *
(c) * * *
(1) * * *
(i) The maximum aggregate amount in unsecured loans and lines of
credit from a corporate credit union to any one member credit union,
excluding CLF-related bridge loans and pass-through and guaranteed
loans from the CLF and the NCUSIF, must not exceed 50 percent of the
corporate credit union's total capital.
* * * * *
(d) * * *
(1) Credit unions. A loan to a nonmember credit union, other than
through a loan participation with another corporate credit union or a
CLF-related bridge loan, is only permissible if the loan is for an
overdraft related to the providing of correspondent services pursuant
to Sec. 704.12. Generally, such a loan will have a maturity of one
business day.
* * * * *
[FR Doc. 2015-24160 Filed 9-22-15; 8:45 am]
BILLING CODE 7535-01-P
