Commercial Lending, 25881-25882 [2018-11946]

Download as PDF 25881 Rules and Regulations Federal Register Vol. 83, No. 108 Tuesday, June 5, 2018 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. NATIONAL CREDIT UNION ADMINISTRATION 12 CFR Parts 702 and 723 RIN 3133–AE89 Commercial Lending National Credit Union Administration (NCUA). ACTION: Final rule. AGENCY: The NCUA Board (Board) is amending the definition of member business loan (MBL) in its MBL rule with respect to 1- to 4- family dwellings. This regulatory change conforms to a recent amendment to the Federal Credit Act (FCU Act) by the Economic Growth, Regulatory Relief, and Consumer Protection Act (Economic Growth Act). DATES: This rule is effective June 5, 2018. FOR FURTHER INFORMATION CONTACT: Justin M. Anderson, Senior Staff Attorney, Office of General Counsel, 1775 Duke Street, Alexandria, VA 22314–3428 or telephone (703) 518– 6540. SUPPLEMENTARY INFORMATION: SUMMARY: amozie on DSK3GDR082PROD with RULES I. Background II. Good Cause Exception III. Regulatory Procedures I. Background On May 24, 2018, the President signed the Economic Growth Act,1 which among other things, amended the definition section of the MBL provisions of the FCU Act.2 Prior to the Economic Growth Act, the FCU Act defined an MBL, in relevant part, as any loan, line of credit, or letter of credit, the proceeds of which will be used for a commercial, corporate or other business investment property or venture, or agricultural purpose but does not include an extension of credit that is fully secured 1 Economic Growth, Regulatory Relief, and Consumer Protection Act, S.2155, 115th Cong. (2018). 2 Id. at sec. 105. VerDate Sep<11>2014 16:50 Jun 04, 2018 Jkt 244001 by a lien on a 1-to 4- family dwelling that is the primary residence of a member.3 The Economic Growth Act removed from that definition the words ‘‘that is the primary residence of a member.’’ As a result, the definition of an MBL now excludes all extensions of credit that are fully secured by a lien on a 1- to 4family dwelling regardless of the borrower’s occupancy status. Because these kinds of loans are no longer considered MBLs, they do not count towards the aggregate MBL cap imposed on each federally insured credit union by the FCU Act. This statutory amendment became effective upon enactment of the Economic Growth Act. The Board is issuing this final rule to conform the NCUA’s MBL rule to the revised FCU Act. This final rule also revises the NCUA’s Prompt Corrective Action rule, part 702,4 by amending outdated citations to the NCUA’s MBL rule. These changes are technical in nature and will not have any substantive effect. II. Good Cause Exception The Board is issuing this rule as final, without having first provided notice and an opportunity for public comment because the NCUA for good cause finds that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest pursuant to the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(3)(B). This rule implements a mandated statutory change that provides the NCUA with no choice and no discretion. The Board finds these reasons are good cause to dispense with the APA’s notice and comment requirements. III. Regulatory Procedures 1. Paperwork Reduction Act In accordance with the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et seq.) (PRA), the NCUA may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The information collection requirements associated with 3 12 4 12 PO 00000 U.S.C. 1757a(c)(1)(B)(i). CFR part 702. Frm 00001 Fmt 4700 Sfmt 4700 part 723 are currently approved by OMB and assigned OMB control number 3133–0101. This rule will not impose any new paperwork burdens or amend existing paperwork burdens, as defined by the PRA. 2. Small Business Regulatory Enforcement Fairness Act The Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) provides generally for congressional review of agency rules. A reporting requirement is triggered in instances where the NCUA issues a final rule as defined by Section 551 of the APA. The NCUA believe this final rule is ‘‘major’’ within the meaning of the relevant sections of SBREFA. The NCUA has submitted the rule to the Office of Management and Budget for its determination in that regard. 3. Executive Order 13132 Executive Order 13132 encourages independent regulatory agencies to consider the impact of their actions on state and local interests. The NCUA, an independent regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies with the executive order to adhere to fundamental federalism principles. The final rule does not have substantial direct effects on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. The NCUA has therefore determined that this final rule does not constitute a policy that has federalism implications for purposes of the executive order. 4. Assessment of Federal Regulations and Policies on Families The NCUA has determined that this rule will not affect family well-being within the meaning of section 654 of the Treasury and General Government Appropriations Act, 1999, Public Law 105–277, 112 Stat. 2681 (1998). List of Subjects 12 CFR Part 702 Credit unions, Reporting and recordkeeping requirements. 12 CFR Part 723 Credit, Credit unions, Reporting and recordkeeping requirements. E:\FR\FM\05JNR1.SGM 05JNR1 25882 Federal Register / Vol. 83, No. 108 / Tuesday, June 5, 2018 / Rules and Regulations By the National Credit Union Administration Board on May 30, 2018. Gerard Poliquin, Secretary of the Board. DEPARTMENT OF TRANSPORTATION Federal Aviation Administration For the reasons discussed above, the NCUA amends 12 CFR parts 702 and 723 as follows: 14 CFR Part 39 [Docket No. FAA–2017–1246; Product Identifier 2017–NM–086–AD; Amendment 39–19297; AD 2018–11–09] PART 702—CAPITAL ADEQUACY RIN 2120–AA64 1. The authority citation for part 702 continues to read as follows: Airworthiness Directives; Bombardier, Inc., Airplanes ■ § 702.104 [Amended] 2. In § 702.104, amend paragraphs (a), (b), and (g) by removing the citation ‘‘12 CFR 723.1’’ and adding in its place ‘‘12 CFR 723.8(b)’’ and by removing the citation ‘‘12 CFR 723.20’’ and adding in its place ‘‘12 CFR 723.10’’ wherever they appear. ■ PART 723—MEMBER BUSINESS LOANS; COMMERCIAL LENDING 3. The authority citation for part 723 continues to read as follows: ■ Authority: 12 U.S.C. 1756, 1757, 1757A, 1766, 1785, 1789. 4. In § 723.8, add paragraph (b)(3) and revise paragraph (c) to read as follows: ■ § 723.8 Aggregate member business loan limit; exclusions and exceptions. * * * * * (b) * * * (3) Any loan that is fully secured by a lien on a 1- to 4- family dwelling. (c) Exception. Any loan secured by a vehicle manufactured for household use that will be used for a commercial, corporate, or other business investment property or venture, or agricultural purpose, is not a commercial loan but it is a member business loan (if the outstanding aggregate net member business loan balance is $50,000 or greater) and must be counted toward the aggregate limit on a federally insured credit union’s member business loans. * * * * * [FR Doc. 2018–11946 Filed 6–4–18; 8:45 am] amozie on DSK3GDR082PROD with RULES BILLING CODE 7535–01–P VerDate Sep<11>2014 16:50 Jun 04, 2018 Jkt 244001 Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. AGENCY: Authority: 12 U.S.C. 1766(a), 1790d. We are superseding Airworthiness Directive (AD) 2014–02– 01, which applied to certain Bombardier, Inc., Model CL–600–2C10 (Regional Jet Series 700, 701, & 702), Model CL–600–2D15 (Regional Jet Series 705), and Model CL–600–2D24 (Regional Jet Series 900) airplanes. AD 2014–02–01 required repetitive inspections of the rudder travel limiter (RTL) return springs and primary actuator, and corrective actions if necessary; and replacement of certain RTL return springs. This AD requires an inspection of the RTL return springs for signs of chafing; an inspection of the casing of the primary actuator for signs of chafing or missing paint; replacement of the RTL return springs; and an inspection of the lugs of the RTL limiter arm assembly for cracks, and modification or replacement, as applicable; and applicable corrective actions. This AD also adds airplanes to the applicability. This AD was prompted by reports that when installing the RTL return springs, the RTL limiter arm assembly lug(s) can become deformed. We are issuing this AD to address the unsafe condition on these products. DATES: This AD is effective July 10, 2018. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of July 10, 2018. ADDRESSES: For service information identified in this final rule, contact ˆ Bombardier, Inc., 400 Cote-Vertu Road ´ West, Dorval, Quebec H4S 1Y9, Canada; Widebody Customer Response Center North America toll-free telephone: 1– 866–538–1247 or direct-dial telephone: 1–514–855–2999; fax 514–855–7401; email: ac.yul@aero.bombardier.com; internet: https://www.bombardier.com. You may view this referenced service information at the FAA, Transport Standards Branch, 2200 South 216th St., SUMMARY: PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 Des Moines, WA. For information on the availability of this material at the FAA, call 206–231–3195. It is also available on the internet at https:// www.regulations.gov by searching for and locating Docket No. FAA–2017– 1246. 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–2017– 1246; or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this AD, the regulatory evaluation, any comments received, and other information. The address for the Docket Office (telephone: 800–647– 5527) is Docket Management Facility, U.S. Department of Transportation, Docket Operations, M–30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE, Washington, DC 20590. FOR FURTHER INFORMATION CONTACT: Cesar Gomez, Aerospace Engineer, Airframe and Mechanical Systems Section, FAA, New York ACO Branch, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone: 516– 228–7318; fax: 516–794–5531. SUPPLEMENTARY INFORMATION: Discussion We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 to supersede AD 2014–02–01, Amendment 39–17729 (79 FR 7382, February 7, 2014) (‘‘AD 2014–02–01’’). AD 2014–02–01 applied to certain Bombardier, Inc., Model CL–600–2C10 (Regional Jet Series 700, 701, & 702), Model CL–600–2D15 (Regional Jet Series 705), and Model CL–600–2D24 (Regional Jet Series 900) airplanes. The NPRM published in the Federal Register on January 16, 2018 (83 FR 2090). The NPRM was prompted by reports that when installing RTL return spring part number BA–670–93468–1, the RTL limiter arm assembly lug(s) can become deformed when the RTL return spring attachment bolt is torqued; and the determination that additional airplanes are affected by the unsafe condition. The NPRM proposed to require an inspection of the RTL return springs for signs of chafing; an inspection of the casing of the primary actuator for signs of chafing or missing paint; replacement of the RTL return springs; and an inspection of the lugs of the RTL limiter arm assembly for cracks, and modification or replacement, as applicable; and applicable corrective E:\FR\FM\05JNR1.SGM 05JNR1

Agencies

National Credit Union Administration

[Federal Register Volume 83, Number 108 (Tuesday, June 5, 2018)]
[Rules and Regulations]
[Pages 25881-25882]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-11946]



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

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

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

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


Federal Register / Vol. 83, No. 108 / Tuesday, June 5, 2018 / Rules 
and Regulations

[[Page 25881]]



NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Parts 702 and 723

RIN 3133-AE89


Commercial Lending

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The NCUA Board (Board) is amending the definition of member 
business loan (MBL) in its MBL rule with respect to 1- to 4- family 
dwellings. This regulatory change conforms to a recent amendment to the 
Federal Credit Act (FCU Act) by the Economic Growth, Regulatory Relief, 
and Consumer Protection Act (Economic Growth Act).

DATES: This rule is effective June 5, 2018.

FOR FURTHER INFORMATION CONTACT: Justin M. Anderson, Senior Staff 
Attorney, Office of General Counsel, 1775 Duke Street, Alexandria, VA 
22314-3428 or telephone (703) 518-6540.

SUPPLEMENTARY INFORMATION:

I. Background
II. Good Cause Exception
III. Regulatory Procedures

I. Background

    On May 24, 2018, the President signed the Economic Growth Act,\1\ 
which among other things, amended the definition section of the MBL 
provisions of the FCU Act.\2\ Prior to the Economic Growth Act, the FCU 
Act defined an MBL, in relevant part, as any loan, line of credit, or 
letter of credit, the proceeds of which will be used for a commercial, 
corporate or other business investment property or venture, or 
agricultural purpose but does not include an extension of credit that 
is fully secured by a lien on a 1-to 4- family dwelling that is the 
primary residence of a member.\3\
---------------------------------------------------------------------------

    \1\ Economic Growth, Regulatory Relief, and Consumer Protection 
Act, S.2155, 115th Cong. (2018).
    \2\ Id. at sec. 105.
    \3\ 12 U.S.C. 1757a(c)(1)(B)(i).
---------------------------------------------------------------------------

    The Economic Growth Act removed from that definition the words 
``that is the primary residence of a member.'' As a result, the 
definition of an MBL now excludes all extensions of credit that are 
fully secured by a lien on a 1- to 4- family dwelling regardless of the 
borrower's occupancy status. Because these kinds of loans are no longer 
considered MBLs, they do not count towards the aggregate MBL cap 
imposed on each federally insured credit union by the FCU Act.
    This statutory amendment became effective upon enactment of the 
Economic Growth Act. The Board is issuing this final rule to conform 
the NCUA's MBL rule to the revised FCU Act.
    This final rule also revises the NCUA's Prompt Corrective Action 
rule, part 702,\4\ by amending outdated citations to the NCUA's MBL 
rule. These changes are technical in nature and will not have any 
substantive effect.
---------------------------------------------------------------------------

    \4\ 12 CFR part 702.
---------------------------------------------------------------------------

II. Good Cause Exception

    The Board is issuing this rule as final, without having first 
provided notice and an opportunity for public comment because the NCUA 
for good cause finds that notice and public procedure thereon are 
impracticable, unnecessary, or contrary to the public interest pursuant 
to the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(3)(B). This 
rule implements a mandated statutory change that provides the NCUA with 
no choice and no discretion. The Board finds these reasons are good 
cause to dispense with the APA's notice and comment requirements.

III. Regulatory Procedures

1. Paperwork Reduction Act

    In accordance with the requirements of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501, et seq.) (PRA), the NCUA may not conduct or 
sponsor, and the respondent is not required to respond to, an 
information collection unless it displays a currently valid Office of 
Management and Budget (OMB) control number. The information collection 
requirements associated with part 723 are currently approved by OMB and 
assigned OMB control number 3133-0101. This rule will not impose any 
new paperwork burdens or amend existing paperwork burdens, as defined 
by the PRA.

2. Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA) provides generally for congressional review of agency rules. A 
reporting requirement is triggered in instances where the NCUA issues a 
final rule as defined by Section 551 of the APA. The NCUA believe this 
final rule is ``major'' within the meaning of the relevant sections of 
SBREFA. The NCUA has submitted the rule to the Office of Management and 
Budget for its determination in that regard.

3. Executive Order 13132

    Executive Order 13132 encourages independent regulatory agencies to 
consider the impact of their actions on state and local interests. The 
NCUA, an independent regulatory agency as defined in 44 U.S.C. 3502(5), 
voluntarily complies with the executive order to adhere to fundamental 
federalism principles. The final rule does not have substantial direct 
effects on the states, on the relationship between the national 
government and the states, or on the distribution of power and 
responsibilities among the various levels of government. The NCUA has 
therefore determined that this final rule does not constitute a policy 
that has federalism implications for purposes of the executive order.

4. Assessment of Federal Regulations and Policies on Families

    The NCUA has determined that this rule will not affect family well-
being within the meaning of section 654 of the Treasury and General 
Government Appropriations Act, 1999, Public Law 105-277, 112 Stat. 2681 
(1998).

List of Subjects

12 CFR Part 702

    Credit unions, Reporting and recordkeeping requirements.

12 CFR Part 723

    Credit, Credit unions, Reporting and recordkeeping requirements.



[[Page 25882]]


    By the National Credit Union Administration Board on May 30, 
2018.
Gerard Poliquin,
Secretary of the Board.
    For the reasons discussed above, the NCUA amends 12 CFR parts 702 
and 723 as follows:

PART 702--CAPITAL ADEQUACY

0
1. The authority citation for part 702 continues to read as follows:

    Authority: 12 U.S.C. 1766(a), 1790d.


Sec.  702.104  [Amended]

0
2. In Sec.  702.104, amend paragraphs (a), (b), and (g) by removing the 
citation ``12 CFR 723.1'' and adding in its place ``12 CFR 723.8(b)'' 
and by removing the citation ``12 CFR 723.20'' and adding in its place 
``12 CFR 723.10'' wherever they appear.

PART 723--MEMBER BUSINESS LOANS; COMMERCIAL LENDING

0
3. The authority citation for part 723 continues to read as follows:

    Authority: 12 U.S.C. 1756, 1757, 1757A, 1766, 1785, 1789.

0
4. In Sec.  723.8, add paragraph (b)(3) and revise paragraph (c) to 
read as follows:


Sec.  723.8  Aggregate member business loan limit; exclusions and 
exceptions.

* * * * *
    (b) * * *
    (3) Any loan that is fully secured by a lien on a 1- to 4- family 
dwelling.
    (c) Exception. Any loan secured by a vehicle manufactured for 
household use that will be used for a commercial, corporate, or other 
business investment property or venture, or agricultural purpose, is 
not a commercial loan but it is a member business loan (if the 
outstanding aggregate net member business loan balance is $50,000 or 
greater) and must be counted toward the aggregate limit on a federally 
insured credit union's member business loans.
* * * * *
[FR Doc. 2018-11946 Filed 6-4-18; 8:45 am]
BILLING CODE 7535-01-P

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