Community Development Revolving Loan Fund, 85110-85113 [2016-28229]
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85110
Federal Register / Vol. 81, No. 227 / Friday, November 25, 2016 / Rules and Regulations
production area to enter the fresh
market. The anticipated increase in
volume is expected to translate into
greater returns for handlers and
producers, and more purchasing options
for consumers.
After discussing possible alternatives
to this change, the Committee
determined that a relaxation in the
grade requirement for Size B red
potatoes should meet the industry’s
current needs while maintaining the
integrity of the order’s quality
objectives. During its deliberations, the
Committee considered making no
changes to the handling regulation, as
well as relaxing the grade requirement
for all Size B potatoes. The Committee
believes that a relaxation in the
handling regulation for Size B red
potatoes is necessary to allow handlers
to pursue new markets, but lowering the
grade requirement for all other types
and varieties of Size B potatoes to U.S.
No. 2 grade or better could erode the
quality reputation of the area’s
production. Therefore, the Committee
found that there were no other viable
alternatives to the proposal as
recommended.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the order’s information
collection requirements have been
previously approved by the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0178, (Generic
Vegetable and Specialty Crops). No
changes in those requirements as a
result of this action are necessary.
Should any changes become necessary,
they would be submitted to OMB for
approval.
This final rule relaxes the minimum
grade requirements under the Colorado
Area 2 potato marketing order.
Accordingly, this action will not impose
any additional reporting or
recordkeeping requirements on either
small or large potato handlers. As with
all Federal marketing order programs,
reports and forms are periodically
reviewed to reduce information
requirements and duplication by
industry and public sector agencies.
As noted in the initial regulatory
flexibility analysis, USDA has not
identified any relevant Federal rules
that duplicate, overlap or conflict with
this final rule.
AMS is committed to complying with
the E-Government Act, to promote the
use of the internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
In addition, the Committee’s meeting
was widely publicized throughout the
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14:00 Nov 23, 2016
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Colorado potato industry, and all
interested persons were invited to
attend the meeting and participate in
Committee deliberations on all issues.
Like all Committee meetings, the March
17, 2016, meeting was a public meeting,
and all entities, both large and small,
were able to express views on this issue.
A proposed rule concerning this
action was published in the Federal
Register on August 1, 2016 (81 FR
50406). Copies of the rule were made
available to all interested Colorado
potato producers and handlers. Finally,
the rule was made available through the
internet by USDA and the Office of the
Federal Register. A 60-day comment
period ending September 30, 2016, was
provided to allow interested persons to
respond to the proposal. No comments
were received.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
rules-regulations/moa/small-businesses.
Any questions about the compliance
guide should be sent to Richard Lower
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant
matter presented, including the
information and recommendation
submitted by the Committee and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
It is further found that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register (5
U.S.C. 553) because handlers are already
shipping potatoes from the 2016 crop,
and handlers want to take advantage of
the relaxation as soon as possible.
Further, handlers are aware of this rule,
which was recommended at a public
meeting. Also, a 60-day comment period
was provided for in the proposed rule.
List of Subjects in 7 CFR Part 948
Marketing agreements, Potatoes,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 948 is amended as
follows:
PART 948—IRISH POTATOES GROWN
IN COLORADO
1. The authority citation for 7 CFR
part 948 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. In § 948.386, paragraph (a)(3) is
revised to read as follows:
§ 948.386
Handling regulation.
*
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(a) * * *
(3) 11⁄2-inch minimum to 21⁄4-inch
maximum diameter (Size B). U.S.
Commercial grade or better, except that
red varieties may be U.S. No. 2 grade or
better.
*
*
*
*
*
Dated: November 18, 2016.
Bruce Summers,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2016–28252 Filed 11–23–16; 8:45 am]
BILLING CODE 3410–02–P
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Part 705
RIN 3133–AE58
Community Development Revolving
Loan Fund
National Credit Union
Administration (NCUA).
ACTION: Final rule.
AGENCY:
The NCUA Board (Board) is
finalizing a rule to make several
technical amendments to NCUA’s rule
governing the Community Development
Revolving Loan Fund (CDRLF). The
amendments will make the rule more
succinct and improve its transparency,
organization, and ease of use by credit
unions.
DATES: This rule is effective December
27, 2016.
FOR FURTHER INFORMATION CONTACT:
Geetha Valiyil, Manager, Grants and
Loans, Office of Small Credit Union
Initiatives, or Justin Anderson, Senior
Staff Attorney, Office of General
Counsel, at 1775 Duke Street,
Alexandria, VA 22314 or telephone
(703) 518–6645 (Ms. Valiyil) or (703)
518–6540 (Mr. Anderson).
SUPPLEMENTARY INFORMATION:
SUMMARY:
A. Background
In June 2016, the Board issued a
proposed rule to amend NCUA’s CDRLF
rule.1 The proposed amendments were
largely technical in nature or clarified
NCUA’s practices with respect to
disbursing money from the CDRLF.
B. Summary of Comments
NCUA received three comments on
the proposed rule, all of which were
generally supportive of the rule. One
commenter, however, did request
additional changes and clarifications.
■
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1 81
FR 40197 (June 21, 2016).
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These comments are addressed in the
section-by-section analysis below.
C. Section-by-Section Analysis
As the Board did not receive any
comments on the amendments to
§§ 705.1, 705.6, and 705.9, which relate
to the authority and purpose of the part,
terms for grants, and reporting, the
Board is finalizing these amendments as
proposed.
§ 705.2 Definitions. This section
provides definitions used throughout
the rule. The proposed rule removed
unnecessary and duplicative
definitions. One commenter requested
that the Board reconsider the removal of
the definition of ‘‘Fund.’’ The
commenter stated that this term is
specifically relevant to the CDRLF rule
and should remain. As noted in the
preamble, this term is already defined in
§ 705.1. The Board continues to believe
a second definition of ‘‘Fund’’ is
unnecessary and is, therefore, finalizing
the amendments to this section as
proposed.
§ 705.5. Terms and Conditions. This
section outlines the terms and
conditions for CDRLF loans. Currently,
this section has an aggregate loan limit
of $300,000, which prevents NCUA
from making loans that exceed this
amount. As noted in the proposal, the
Board sought to remove this limit to
allow NCUA to grant loans in excess of
$300,000 and to provide more flexibility
for the agency to meet changing loan
demands. One commenter believed that
the proposed removal of the aggregate
loan limit from the rule could lead to
NCUA instituting lower aggregate limits,
which could harm credit unions. This
commenter suggested including
language in the rule that explicitly
instructs that there is no aggregate limit
for loans or technical assistance grants.
As noted in the preamble to the
proposed rule, the Board proposed
eliminating the aggregate loan limit to
help credit unions. As the current
aggregate loan limit is an upper limit,
NCUA is currently free to set a lower
amount for CDRLF loans but cannot
offer a higher amount. The proposed
removal of this limit will allow NCUA
to offer higher loan amounts. As the
proposed removal of the limit will help,
rather than harm credit unions, the
Board is adopting this change as
proposed. Further, as there is currently
no aggregate limit for technical
assistance grants and the grant amounts
vary each year, the Board does not
believe it is necessary to add the
additional language suggested by this
commenter.
This commenter also requested more
substantive terms and conditions for
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technical assistance grants. While the
commenter did not specify what
additional terms and conditions the
Board should add, the commenter did
suggest that the terms and conditions for
grants are ‘‘scarce in comparison’’ to
those for loans. The Board notes that as
grants are not required to be repaid,
unlike loans made under the CDRLF
program, there is no need for more
comprehensive terms and conditions.
Further, the Board’s goal in proposing
amendments to the CDRLF rule was to
make the rule more user friendly and
simpler; adding additional terms and
conditions where they are not needed
would frustrate that purpose. Finally, as
noted in the proposed rule, any
additional terms and conditions for
loans or grants will be specified in the
Notice of Funding Opportunity and not
in the regulatory text.
Current § 705.6. Application and
award processes. This section specifies
the procedures a credit union must
follow to apply for a loan or grant from
the CDRLF. The Board sought to make
this section clearer and more accurate
by proposing amendments that made
this section easier to follow and more
reflective of NCUA’s current practices.
One commenter requested clarification
on whether a credit union is required to
obtain approval from the applicable
regional director before submitting an
application. NCUA has never required
such prior approval in the past, and the
Board clarifies it is not doing so now.
§ 705.10. Appeals. The Board
proposed to add this new section to
contain all applicable appeals language
in one section, which would make the
rule more user friendly. One commenter
requested clarification on the appeal
rights in proposed § 705.10(a).
Specifically, this commenter believes
that this section could be interpreted as
only applying to loans and not to grants.
In relevant portion, proposed § 705.10(a)
reads as follows: ‘‘Appeals of NonQualification. A Qualifying Credit
Union whose application for a loan or
technical assistance grant has been
denied, under § 705.7(f) of this part, for
failure of a qualification may appeal that
decision to the NCUA Board in
accordance with the following . . .’’
The Board believes this section
clearly applies to both loans and
technical assistance grants. Conversely
subsection (b) of this proposed section
states that it only applies to technical
assistance grants. The Board is adopting
the amendments to this section as
proposed.
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Regulatory Procedures
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
requires NCUA to prepare an analysis to
describe any significant economic
impact any proposed regulation may
have on a substantial number of small
entities. NCUA considers credit unions
having less than $100 million in assets
to be small for purposes of RFA. The
revisions to part 705 are designed to
update and streamline the rule, thereby
reducing the burden for credit unions
that are seeking financial awards,
whether in the form of a technical
assistance grant or a loan. NCUA has
determined and certifies that this rule,
if adopted, will not have a significant
economic impact on a substantial
number of small credit unions.
Accordingly, the NCUA has determined
that an RFA analysis is not required.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(PRA) applies to rulemakings in which
an agency by rule creates a new
paperwork burden or increases an
existing burden. For purposes of the
PRA, a paperwork burden may take the
form of a reporting or recordkeeping
requirement, both referred to as
information collections. The changes in
this rule are technical in nature and will
not create new paperwork burdens or
modify any existing paperwork burdens.
Executive Order 13132
Executive Order 13132 encourages
independent regulatory agencies to
consider the impact of their actions on
state and local interests. In adherence to
fundamental federalism principles,
NCUA, an independent regulatory
agency as defined in 44 U.S.C. 3502(5),
voluntarily complies with the executive
order. This rulemaking will not have a
substantial direct effect on the states, on
the connection between the national
government and the states, or on the
distribution of power and
responsibilities among the various
levels of government. NCUA has
determined that this rule does not
constitute a policy that has federalism
implications for purposes of the
executive order.
The Treasury and General Government
Appropriations Act, 1999—Assessment
of Federal Regulations and Policies on
Families
The NCUA has determined that this
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).
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Federal Register / Vol. 81, No. 227 / Friday, November 25, 2016 / Rules and Regulations
List of Subjects in 12 CFR Part 705
Community programs, Credit unions,
Grants, Loans, Low income, Revolving
fund.
By the National Credit Union
Administration Board on November 17, 2016.
Gerard Poliquin,
Secretary of the Board.
For the reasons stated above, NCUA
amends 12 CFR part 705 as follows:
PART 705—COMMUNITY
DEVELOPMENT REVOLVING LOAN
FUND FOR CREDIT UNIONS
1. The authority citation for part 705
continues to read as follows:
■
Authority: 12 U.S.C. 1756, 1757(5)(D), and
(7)(I), 1766, 1782, 1784, 1785 and 1786.
2. Amend § 705.1 by revising
paragraphs (c) through (e) to read as
follows:
■
§ 705.1
Authority, purpose, and scope.
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*
*
(c) NCUA’s policy is to revolve the
loan funds to credit unions as often as
practical in order to achieve maximum
economic impact on as many credit
unions as possible.
(d) The financial awards provided to
credit unions through the Fund will
better enable them to support the
communities in which they operate;
provide basic financial services to lowincome residents of these communities,
and result in more opportunities for the
residents of those communities to
improve their financial circumstances.
(e) The Fund is intended to support
the efforts of credit unions through
loans and technical assistance grants
needed for:
(1) Providing basic financial and
related services to residents in their
communities;
(2) Enhancing their capacity to better
serve their members and the
communities in which they operate; and
(3) Responding to emergencies.
■ 3. Revise § 705.2 to read as follows:
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§ 705.2
Definitions.
14:00 Nov 23, 2016
4. Amend § 705.5 as follows:
a. Revise the section heading.
■ b. Revise paragraph (b).
■ c. Amend paragraph (h) by adding the
words ‘‘security agreements (if any),’’
between the words ‘‘repayment
obligations,’’ and ‘‘and covenants,’’.
The revisions read as follows:
■
■
§ 705.5
Terms and conditions for loans.
*
For purposes of this part, the
following terms shall have the meanings
assigned to them in this section.
Application means a form supplied by
the NCUA by which a Qualifying Credit
Union may apply for a loan or a
technical assistance grant from the
Fund.
Loan is an award in the form of an
extension of credit from the Fund to a
Participating Credit Union that must be
repaid, with interest.
Low-income Members are those
members defined in § 701.34 of this
chapter.
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Notice of Funding Opportunity means
the Notice NCUA publishes describing
one or more loan or technical assistance
grant programs or initiatives currently
being supported by the Fund and
inviting Qualifying Credit Unions to
submit applications to participate in the
program(s) or initiatives(s).
Participating Credit Union refers to a
Qualifying Credit Union that has
submitted an application for a loan or a
technical assistance grant from the Fund
which has been approved by NCUA. A
Participating Credit Union shall not be
deemed to be an agency, department, or
instrumentality of the United States
because of its receipt of a financial
award from the Fund.
Program means the Community
Development Revolving Loan Fund
Program under which NCUA makes
loans and technical assistance grants
available to credit unions.
Qualifying Credit Union means a
credit union that may be, or has agreed
to be, examined by NCUA, with a
current low-income designation
pursuant to § 701.34(a)(1) or § 741.204
of this chapter or, in the case of a nonfederally insured, state-chartered credit
union, a low-income designation from a
state regulator, made under appropriate
state standards with the concurrence of
NCUA. Services to low-income
members must include, at a minimum,
offering share accounts and loans.
Technical Assistance Grant means an
award of money from the Fund to a
Participating Credit Union that does not
have to be repaid.
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(b) Funding Limits. NCUA will
publish any applicable loan funding
limits in the applicable Notice of
Funding Opportunity.
*
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*
§ 705.8
■
[Removed]
5. Remove § 705.8.
§§ 705.6 and 705.7 [Redesignated as
§§ 705.7 and 705.8]
6. Redesignate §§ 705.6 and 705.7 as
§§ 705.7 and 705.8, respectively;
■
■
7. Add new § 705.6 to read as follows:
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§ 705.6 Terms and conditions for technical
assistance grants.
(a) Participating Credit Unions must
comply with the terms and conditions
for technical assistance grants specified
for each funding opportunity offered
under a Notice of Funding Opportunity.
(b) NCUA will establish applicable
funding limits for technical assistance
grants in the Notice of Funding
Opportunity.
■ 8. Amend redesignated § 705.7 as
follows:
■ a. Revise paragraph (a).
■ b. Revise paragraph (c)(4).
■ c. Revise paragraphs (f) and (g).
The revisions read as follows:
§ 705.7
Application and award processes.
(a) Notice of Funding Opportunity.
NCUA will publish a Notice of Funding
Opportunity in the Federal Register and
on its Web site. The Notice of Funding
Opportunity will describe the loan and
technical assistance grant programs for
the period in which funds are available.
It also will announce special initiatives,
the amount of funds available, funding
priorities, permissible uses of funds,
funding limits, deadlines, and other
pertinent details. The Notice of Funding
Opportunity will also advise potential
applicants on how to obtain an
Application and related materials.
NCUA may supplement the information
contained in the Notice of Funding
Opportunity through such other media
as it determines appropriate, including
Letters to Credit Unions, press releases,
direct notices to Qualifying Credit
Unions, and announcements on its Web
site.
*
*
*
*
*
(c) * * *
(4) Examination Information and
Applicable Concurrence. In evaluating a
Qualifying Credit Union, NCUA will
consider all information provided by
NCUA staff or state supervisory
authority staff that performed the
Qualifying Credit Union’s most recent
examination. In addition:
(i) NCUA will only provide a loan to
a qualifying federal credit union with
the concurrence of that credit union’s
supervising Regional Director; and
(ii) NCUA will only provide a loan to
a qualifying state-charted credit union
with the written concurrence of the
applicable Regional Director and the
credit union’s state supervisory
authority. A qualifying state-chartered
credit union should notify its state
supervisory authority that it is applying
for a loan from the Fund before
submitting its application to NCUA.
However, a qualifying state-chartered
credit union is not required to obtain
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Federal Register / Vol. 81, No. 227 / Friday, November 25, 2016 / Rules and Regulations
concurrence before applying for a loan.
NCUA will obtain the concurrence
directly from the state supervisory
authority rather than through the
qualifying state-chartered credit union.
Additionally, before NCUA will provide
a loan to a qualifying state-charted
credit union the credit union must make
copies of its state examination reports
available to NCUA and agree to
examination by NCUA.
*
*
*
*
*
(f) Notice of Award. NCUA will
determine whether an application meets
NCUA’s standards established by this
part and the related Notice of Funding
Opportunity. NCUA will provide
written notice to a Qualifying Credit
Union as to whether or not it has
qualified for a loan or technical
assistance grant under this part. A
Qualifying Credit Union whose
application has been denied for failure
of a qualification may appeal that
decision in accordance with § 705.10 of
this part.
(g) Disbursement—(1) Loans. Before
NCUA will disburse a loan, the
Participating Credit Union must sign the
loan agreement, promissory note, and
any other loan related documents.
NCUA may, in its discretion, choose not
to disburse the entire amount of the loan
at once.
(2) Technical Assistance Grants.
NCUA will disburse technical assistance
grants in such amounts, and in
accordance with such terms and
conditions, as NCUA may establish. In
general, technical assistance grants are
provided on a reimbursement basis, to
cover expenditures approved in advance
by NCUA and supported by receipts
evidencing payment by the Participating
Credit Union.
■ 9. Revise § 705.9(b) to read as follows:
§ 705.9
Reporting and monitoring.
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*
*
*
*
*
(b) Reporting—(1) Reporting to NCUA.
A Participating Credit Union must
complete and submit to NCUA all
required reports, at such times and in
such formats as NCUA will direct. Such
reports must describe how the
Participating Credit Union has used the
loan or technical assistance grant
proceeds and the results it has obtained,
in relation to the programs, policies, or
initiatives identified by the Participating
Credit Union in its application. NCUA
may request additional information as it
determines appropriate.
(2) Reporting to Members—(i) Loans.
A Participating Credit Union that
receives a loan under this part must
report on the progress of providing
needed community services to the
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14:00 Nov 23, 2016
Jkt 241001
Participating Credit Union’s members
once a year, either at the annual meeting
or in a written report sent to all
members. The Participating Credit
Union must also submit to NCUA the
written report or a summary of the
report provided to members.
(ii) Technical Assistance Grants. A
Participating Credit Union that receives
a technical assistance grant under this
part should report on the progress of
providing needed community services
to the Participating Credit Union’s
members once a year, either at the
annual meeting or in a written report
sent to all members.
*
*
*
*
*
■
10. Revise § 705.10 to read as follows:
§ 705.10
Appeals.
(a) Appeals of non-qualification. A
Qualifying Credit Union whose
application for a loan or technical
assistance grant has been denied, under
§ 705.7(f), for failure of a qualification
may appeal that decision to the NCUA
Board in accordance with the following:
(1) Within thirty days of its receipt of
a notice of non-qualification, a credit
union may appeal the decision to the
NCUA Board. The scope of the NCUA
Board’s review is limited to the
threshold question of qualification and
not the issue of whether, among
qualified applicants, a particular loan or
technical assistance grant is funded.
(2) The foregoing procedure shall
apply only with respect to Applications
received by NCUA during an open
period in which funds are available and
NCUA has called for Applications. Any
Application submitted by an applicant
during a period in which NCUA has not
called for Applications will be rejected,
except for those Applications submitted
under § 705.8. Any such rejection shall
not be subject to appeal or review by the
NCUA Board.
(b) Appeals of technical assistance
grant reimbursement denials. Pursuant
to NCUA Interpretative Ruling and
Policy Statement 11–1, any Participating
Credit Union may appeal a denial of a
technical assistance grant
reimbursement to NCUA’s Supervisory
Review Committee. All appeals of
technical assistance grant
reimbursements must be submitted to
the Supervisory Review Committee
within 30 days from the date of the
denial. The decisions of the Supervisory
Review Committee are final and may
not be appealed to the NCUA Board.
[FR Doc. 2016–28229 Filed 11–23–16; 8:45 am]
BILLING CODE 7535–01–P
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85113
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2016–5597; Directorate
Identifier 2016–NM–009–AD; Amendment
39–18715; AD 2016–23–08]
RIN 2120–AA64
Airworthiness Directives; The Boeing
Company Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
We are adopting a new
airworthiness directive (AD) for all The
Boeing Company Model 737–400 series
airplanes. This AD was prompted by
reports of cracks in the upper chord of
the overwing stub beams at body station
(STA) 578 emanating from the rivet
location common to the crease beam
inner chord and the overwing stub beam
upper chord. This AD requires
repetitive inspections for cracking, and
related investigative and corrective
actions if necessary. We are issuing this
AD to prevent the unsafe condition on
these products.
DATES: This AD is effective December
30, 2016.
The Director of the Federal Register
approved the incorporation by reference
of a certain publication listed in this AD
as of December 30, 2016.
ADDRESSES: For service information
identified in this final rule, contact
Boeing Commercial Airplanes,
Attention: Contractual & Data Services
(C&DS), 2600 Westminster Blvd., MC
110–SK57, Seal Beach, CA 90740–5600;
telephone 562–797–1717; Internet
https://www.myboeingfleet.com. You
may view this referenced service
information at the FAA, Transport
Airplane Directorate, 1601 Lind Avenue
SW., Renton, WA. You may view this
referenced service information at the
FAA, Transport Airplane Directorate,
1601 Lind Avenue SW., Renton, WA.
For information on the availability of
this material at the FAA, call 425–227–
1221. It is also available on the Internet
at https://www.regulations.gov by
searching for and locating Docket No.
FAA–2016–5597.
SUMMARY:
Examining the AD Docket
You may examine the AD docket on
the Internet at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2016–
5597; or in person at the Docket
Management Facility between 9 a.m.
and 5 p.m., Monday through Friday,
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]]>Agencies
[Federal Register Volume 81, Number 227 (Friday, November 25, 2016)]
[Rules and Regulations]
[Pages 85110-85113]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28229]
=======================================================================
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 705
RIN 3133-AE58
Community Development Revolving Loan Fund
AGENCY: National Credit Union Administration (NCUA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The NCUA Board (Board) is finalizing a rule to make several
technical amendments to NCUA's rule governing the Community Development
Revolving Loan Fund (CDRLF). The amendments will make the rule more
succinct and improve its transparency, organization, and ease of use by
credit unions.
DATES: This rule is effective December 27, 2016.
FOR FURTHER INFORMATION CONTACT: Geetha Valiyil, Manager, Grants and
Loans, Office of Small Credit Union Initiatives, or Justin Anderson,
Senior Staff Attorney, Office of General Counsel, at 1775 Duke Street,
Alexandria, VA 22314 or telephone (703) 518-6645 (Ms. Valiyil) or (703)
518-6540 (Mr. Anderson).
SUPPLEMENTARY INFORMATION:
A. Background
In June 2016, the Board issued a proposed rule to amend NCUA's
CDRLF rule.\1\ The proposed amendments were largely technical in nature
or clarified NCUA's practices with respect to disbursing money from the
CDRLF.
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\1\ 81 FR 40197 (June 21, 2016).
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B. Summary of Comments
NCUA received three comments on the proposed rule, all of which
were generally supportive of the rule. One commenter, however, did
request additional changes and clarifications.
[[Page 85111]]
These comments are addressed in the section-by-section analysis below.
C. Section-by-Section Analysis
As the Board did not receive any comments on the amendments to
Sec. Sec. 705.1, 705.6, and 705.9, which relate to the authority and
purpose of the part, terms for grants, and reporting, the Board is
finalizing these amendments as proposed.
Sec. 705.2 Definitions. This section provides definitions used
throughout the rule. The proposed rule removed unnecessary and
duplicative definitions. One commenter requested that the Board
reconsider the removal of the definition of ``Fund.'' The commenter
stated that this term is specifically relevant to the CDRLF rule and
should remain. As noted in the preamble, this term is already defined
in Sec. 705.1. The Board continues to believe a second definition of
``Fund'' is unnecessary and is, therefore, finalizing the amendments to
this section as proposed.
Sec. 705.5. Terms and Conditions. This section outlines the terms
and conditions for CDRLF loans. Currently, this section has an
aggregate loan limit of $300,000, which prevents NCUA from making loans
that exceed this amount. As noted in the proposal, the Board sought to
remove this limit to allow NCUA to grant loans in excess of $300,000
and to provide more flexibility for the agency to meet changing loan
demands. One commenter believed that the proposed removal of the
aggregate loan limit from the rule could lead to NCUA instituting lower
aggregate limits, which could harm credit unions. This commenter
suggested including language in the rule that explicitly instructs that
there is no aggregate limit for loans or technical assistance grants.
As noted in the preamble to the proposed rule, the Board proposed
eliminating the aggregate loan limit to help credit unions. As the
current aggregate loan limit is an upper limit, NCUA is currently free
to set a lower amount for CDRLF loans but cannot offer a higher amount.
The proposed removal of this limit will allow NCUA to offer higher loan
amounts. As the proposed removal of the limit will help, rather than
harm credit unions, the Board is adopting this change as proposed.
Further, as there is currently no aggregate limit for technical
assistance grants and the grant amounts vary each year, the Board does
not believe it is necessary to add the additional language suggested by
this commenter.
This commenter also requested more substantive terms and conditions
for technical assistance grants. While the commenter did not specify
what additional terms and conditions the Board should add, the
commenter did suggest that the terms and conditions for grants are
``scarce in comparison'' to those for loans. The Board notes that as
grants are not required to be repaid, unlike loans made under the CDRLF
program, there is no need for more comprehensive terms and conditions.
Further, the Board's goal in proposing amendments to the CDRLF rule was
to make the rule more user friendly and simpler; adding additional
terms and conditions where they are not needed would frustrate that
purpose. Finally, as noted in the proposed rule, any additional terms
and conditions for loans or grants will be specified in the Notice of
Funding Opportunity and not in the regulatory text.
Current Sec. 705.6. Application and award processes. This section
specifies the procedures a credit union must follow to apply for a loan
or grant from the CDRLF. The Board sought to make this section clearer
and more accurate by proposing amendments that made this section easier
to follow and more reflective of NCUA's current practices. One
commenter requested clarification on whether a credit union is required
to obtain approval from the applicable regional director before
submitting an application. NCUA has never required such prior approval
in the past, and the Board clarifies it is not doing so now.
Sec. 705.10. Appeals. The Board proposed to add this new section
to contain all applicable appeals language in one section, which would
make the rule more user friendly. One commenter requested clarification
on the appeal rights in proposed Sec. 705.10(a). Specifically, this
commenter believes that this section could be interpreted as only
applying to loans and not to grants. In relevant portion, proposed
Sec. 705.10(a) reads as follows: ``Appeals of Non-Qualification. A
Qualifying Credit Union whose application for a loan or technical
assistance grant has been denied, under Sec. 705.7(f) of this part,
for failure of a qualification may appeal that decision to the NCUA
Board in accordance with the following . . .''
The Board believes this section clearly applies to both loans and
technical assistance grants. Conversely subsection (b) of this proposed
section states that it only applies to technical assistance grants. The
Board is adopting the amendments to this section as proposed.
Regulatory Procedures
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) requires NCUA to prepare an
analysis to describe any significant economic impact any proposed
regulation may have on a substantial number of small entities. NCUA
considers credit unions having less than $100 million in assets to be
small for purposes of RFA. The revisions to part 705 are designed to
update and streamline the rule, thereby reducing the burden for credit
unions that are seeking financial awards, whether in the form of a
technical assistance grant or a loan. NCUA has determined and certifies
that this rule, if adopted, will not have a significant economic impact
on a substantial number of small credit unions. Accordingly, the NCUA
has determined that an RFA analysis is not required.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in
which an agency by rule creates a new paperwork burden or increases an
existing burden. For purposes of the PRA, a paperwork burden may take
the form of a reporting or recordkeeping requirement, both referred to
as information collections. The changes in this rule are technical in
nature and will not create new paperwork burdens or modify any existing
paperwork burdens.
Executive Order 13132
Executive Order 13132 encourages independent regulatory agencies to
consider the impact of their actions on state and local interests. In
adherence to fundamental federalism principles, NCUA, an independent
regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies
with the executive order. This rulemaking will not have a substantial
direct effect on the states, on the connection between the national
government and the states, or on the distribution of power and
responsibilities among the various levels of government. NCUA has
determined that this rule does not constitute a policy that has
federalism implications for purposes of the executive order.
The Treasury and General Government Appropriations Act, 1999--
Assessment of Federal Regulations and Policies on Families
The NCUA has determined that this 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).
[[Page 85112]]
List of Subjects in 12 CFR Part 705
Community programs, Credit unions, Grants, Loans, Low income,
Revolving fund.
By the National Credit Union Administration Board on November
17, 2016.
Gerard Poliquin,
Secretary of the Board.
For the reasons stated above, NCUA amends 12 CFR part 705 as
follows:
PART 705--COMMUNITY DEVELOPMENT REVOLVING LOAN FUND FOR CREDIT
UNIONS
0
1. The authority citation for part 705 continues to read as follows:
Authority: 12 U.S.C. 1756, 1757(5)(D), and (7)(I), 1766, 1782,
1784, 1785 and 1786.
0
2. Amend Sec. 705.1 by revising paragraphs (c) through (e) to read as
follows:
Sec. 705.1 Authority, purpose, and scope.
* * * * *
(c) NCUA's policy is to revolve the loan funds to credit unions as
often as practical in order to achieve maximum economic impact on as
many credit unions as possible.
(d) The financial awards provided to credit unions through the Fund
will better enable them to support the communities in which they
operate; provide basic financial services to low-income residents of
these communities, and result in more opportunities for the residents
of those communities to improve their financial circumstances.
(e) The Fund is intended to support the efforts of credit unions
through loans and technical assistance grants needed for:
(1) Providing basic financial and related services to residents in
their communities;
(2) Enhancing their capacity to better serve their members and the
communities in which they operate; and
(3) Responding to emergencies.
0
3. Revise Sec. 705.2 to read as follows:
Sec. 705.2 Definitions.
For purposes of this part, the following terms shall have the
meanings assigned to them in this section.
Application means a form supplied by the NCUA by which a Qualifying
Credit Union may apply for a loan or a technical assistance grant from
the Fund.
Loan is an award in the form of an extension of credit from the
Fund to a Participating Credit Union that must be repaid, with
interest.
Low-income Members are those members defined in Sec. 701.34 of
this chapter.
Notice of Funding Opportunity means the Notice NCUA publishes
describing one or more loan or technical assistance grant programs or
initiatives currently being supported by the Fund and inviting
Qualifying Credit Unions to submit applications to participate in the
program(s) or initiatives(s).
Participating Credit Union refers to a Qualifying Credit Union that
has submitted an application for a loan or a technical assistance grant
from the Fund which has been approved by NCUA. A Participating Credit
Union shall not be deemed to be an agency, department, or
instrumentality of the United States because of its receipt of a
financial award from the Fund.
Program means the Community Development Revolving Loan Fund Program
under which NCUA makes loans and technical assistance grants available
to credit unions.
Qualifying Credit Union means a credit union that may be, or has
agreed to be, examined by NCUA, with a current low-income designation
pursuant to Sec. 701.34(a)(1) or Sec. 741.204 of this chapter or, in
the case of a non-federally insured, state-chartered credit union, a
low-income designation from a state regulator, made under appropriate
state standards with the concurrence of NCUA. Services to low-income
members must include, at a minimum, offering share accounts and loans.
Technical Assistance Grant means an award of money from the Fund to
a Participating Credit Union that does not have to be repaid.
0
4. Amend Sec. 705.5 as follows:
0
a. Revise the section heading.
0
b. Revise paragraph (b).
0
c. Amend paragraph (h) by adding the words ``security agreements (if
any),'' between the words ``repayment obligations,'' and ``and
covenants,''.
The revisions read as follows:
Sec. 705.5 Terms and conditions for loans.
* * * * *
(b) Funding Limits. NCUA will publish any applicable loan funding
limits in the applicable Notice of Funding Opportunity.
* * * * *
Sec. 705.8 [Removed]
0
5. Remove Sec. 705.8.
Sec. Sec. 705.6 and 705.7 [Redesignated as Sec. Sec. 705.7 and
705.8]
0
6. Redesignate Sec. Sec. 705.6 and 705.7 as Sec. Sec. 705.7 and
705.8, respectively;
0
7. Add new Sec. 705.6 to read as follows:
Sec. 705.6 Terms and conditions for technical assistance grants.
(a) Participating Credit Unions must comply with the terms and
conditions for technical assistance grants specified for each funding
opportunity offered under a Notice of Funding Opportunity.
(b) NCUA will establish applicable funding limits for technical
assistance grants in the Notice of Funding Opportunity.
0
8. Amend redesignated Sec. 705.7 as follows:
0
a. Revise paragraph (a).
0
b. Revise paragraph (c)(4).
0
c. Revise paragraphs (f) and (g).
The revisions read as follows:
Sec. 705.7 Application and award processes.
(a) Notice of Funding Opportunity. NCUA will publish a Notice of
Funding Opportunity in the Federal Register and on its Web site. The
Notice of Funding Opportunity will describe the loan and technical
assistance grant programs for the period in which funds are available.
It also will announce special initiatives, the amount of funds
available, funding priorities, permissible uses of funds, funding
limits, deadlines, and other pertinent details. The Notice of Funding
Opportunity will also advise potential applicants on how to obtain an
Application and related materials. NCUA may supplement the information
contained in the Notice of Funding Opportunity through such other media
as it determines appropriate, including Letters to Credit Unions, press
releases, direct notices to Qualifying Credit Unions, and announcements
on its Web site.
* * * * *
(c) * * *
(4) Examination Information and Applicable Concurrence. In
evaluating a Qualifying Credit Union, NCUA will consider all
information provided by NCUA staff or state supervisory authority staff
that performed the Qualifying Credit Union's most recent examination.
In addition:
(i) NCUA will only provide a loan to a qualifying federal credit
union with the concurrence of that credit union's supervising Regional
Director; and
(ii) NCUA will only provide a loan to a qualifying state-charted
credit union with the written concurrence of the applicable Regional
Director and the credit union's state supervisory authority. A
qualifying state-chartered credit union should notify its state
supervisory authority that it is applying for a loan from the Fund
before submitting its application to NCUA. However, a qualifying state-
chartered credit union is not required to obtain
[[Page 85113]]
concurrence before applying for a loan. NCUA will obtain the
concurrence directly from the state supervisory authority rather than
through the qualifying state-chartered credit union. Additionally,
before NCUA will provide a loan to a qualifying state-charted credit
union the credit union must make copies of its state examination
reports available to NCUA and agree to examination by NCUA.
* * * * *
(f) Notice of Award. NCUA will determine whether an application
meets NCUA's standards established by this part and the related Notice
of Funding Opportunity. NCUA will provide written notice to a
Qualifying Credit Union as to whether or not it has qualified for a
loan or technical assistance grant under this part. A Qualifying Credit
Union whose application has been denied for failure of a qualification
may appeal that decision in accordance with Sec. 705.10 of this part.
(g) Disbursement--(1) Loans. Before NCUA will disburse a loan, the
Participating Credit Union must sign the loan agreement, promissory
note, and any other loan related documents. NCUA may, in its
discretion, choose not to disburse the entire amount of the loan at
once.
(2) Technical Assistance Grants. NCUA will disburse technical
assistance grants in such amounts, and in accordance with such terms
and conditions, as NCUA may establish. In general, technical assistance
grants are provided on a reimbursement basis, to cover expenditures
approved in advance by NCUA and supported by receipts evidencing
payment by the Participating Credit Union.
0
9. Revise Sec. 705.9(b) to read as follows:
Sec. 705.9 Reporting and monitoring.
* * * * *
(b) Reporting--(1) Reporting to NCUA. A Participating Credit Union
must complete and submit to NCUA all required reports, at such times
and in such formats as NCUA will direct. Such reports must describe how
the Participating Credit Union has used the loan or technical
assistance grant proceeds and the results it has obtained, in relation
to the programs, policies, or initiatives identified by the
Participating Credit Union in its application. NCUA may request
additional information as it determines appropriate.
(2) Reporting to Members--(i) Loans. A Participating Credit Union
that receives a loan under this part must report on the progress of
providing needed community services to the Participating Credit Union's
members once a year, either at the annual meeting or in a written
report sent to all members. The Participating Credit Union must also
submit to NCUA the written report or a summary of the report provided
to members.
(ii) Technical Assistance Grants. A Participating Credit Union that
receives a technical assistance grant under this part should report on
the progress of providing needed community services to the
Participating Credit Union's members once a year, either at the annual
meeting or in a written report sent to all members.
* * * * *
0
10. Revise Sec. 705.10 to read as follows:
Sec. 705.10 Appeals.
(a) Appeals of non-qualification. A Qualifying Credit Union whose
application for a loan or technical assistance grant has been denied,
under Sec. 705.7(f), for failure of a qualification may appeal that
decision to the NCUA Board in accordance with the following:
(1) Within thirty days of its receipt of a notice of non-
qualification, a credit union may appeal the decision to the NCUA
Board. The scope of the NCUA Board's review is limited to the threshold
question of qualification and not the issue of whether, among qualified
applicants, a particular loan or technical assistance grant is funded.
(2) The foregoing procedure shall apply only with respect to
Applications received by NCUA during an open period in which funds are
available and NCUA has called for Applications. Any Application
submitted by an applicant during a period in which NCUA has not called
for Applications will be rejected, except for those Applications
submitted under Sec. 705.8. Any such rejection shall not be subject to
appeal or review by the NCUA Board.
(b) Appeals of technical assistance grant reimbursement denials.
Pursuant to NCUA Interpretative Ruling and Policy Statement 11-1, any
Participating Credit Union may appeal a denial of a technical
assistance grant reimbursement to NCUA's Supervisory Review Committee.
All appeals of technical assistance grant reimbursements must be
submitted to the Supervisory Review Committee within 30 days from the
date of the denial. The decisions of the Supervisory Review Committee
are final and may not be appealed to the NCUA Board.
[FR Doc. 2016-28229 Filed 11-23-16; 8:45 am]
BILLING CODE 7535-01-P
