57886

Proposed Rules Federal Register Vol. 82, No. 235

Friday, December 8, 2017

This section of the FEDERAL REGISTER All public comments are available emergency the Reserve Bank must have contains notices to the public of the proposed from the Board’s Web site at http:// established the primary credit rate at issuance of rules and regulations. The www.federalreserve.gov/generalinfo/ that rate.2 Second, the chairman of the purpose of these notices is to give interested foia/ProposedRegs.cfm, as submitted, Board of Governors (or, in the persons an opportunity to participate in the unless modified for technical reasons. chairman’s absence, the chairman’s rule making prior to the adoption of the final rules. Accordingly, your comments will not be designee) must certify that a quorum of edited to remove any identifying or the Board is not available to act on the contact information. Public comments Reserve Bank’s rate establishment.3 FEDERAL RESERVE SYSTEM may also be viewed electronically or in Finally, Regulation A defines a paper form in Room 3515, 1801 K Street ‘‘financial emergency’’ as ‘‘a significant 12 CFR Part 201 NW. (between 18th and 19th Street disruption to the U.S. money markets resulting from an act of war, military or [Docket No. R–1585; RIN 7100–AE 90] NW.), between 9:00 a.m. and 5:00 p.m. on weekdays. terrorist attack, natural disaster, or other 4 Regulation A: Extensions of Credit by FOR FURTHER INFORMATION CONTACT: catastrophic event.’’ Federal Reserve Banks Sophia H. Allison, Special Counsel, The Federal Open Market Committee (202–452–3565), Legal Division, or Lyle (FOMC) currently establishes a target AGENCY: Board of Governors of the Kumasaka, Senior Financial Analyst, range for the federal funds rate. Federal Reserve System. 202–452–2382), Division of Accordingly, the Board proposes to ACTION: Notice of proposed rulemaking. Monetary Affairs; for users of amend section 201.51(d)(1) of Regulation A to provide that, in a Telecommunications Device for the Deaf SUMMARY: The Board of Governors of the financial emergency, the primary credit (TDD) only, contact 202/263–4869; Federal Reserve System (‘‘Board’’) is rate is the target federal funds rate or, if Board of Governors of the Federal proposing to amend its Regulation A to; the FOMC has established a target range Reserve System, 20th and C Streets, revise the provisions regarding the for the federal funds rate, a rate NW., Washington, DC 20551. establishment of the primary credit rate corresponding to the top of the target in a financial emergency, and to delete SUPPLEMENTARY INFORMATION: The range. the provisions relating to the use of Federal Reserve Banks make primary, credit ratings for collateral for secondary, and seasonal credit available II. Credit Ratings for TALF extensions of credit under the former to depository institutions subject to On November 25, 2008, the Board and Term Asset-Backed Securities Loan rules and regulations prescribed by the Treasury announced the establishment Facility (TALF). The proposed Board. The primary, secondary, and of the TALF. The TALF was intended to amendments are intended to allow the seasonal credit rates are the interest assist financial markets in regulation to address circumstances in rates that the twelve Federal Reserve accommodating the credit needs of which the Federal Open Market Banks charge for extensions of credit consumers and businesses of all sizes Committee has established a target range under these programs. Under the during the financial crisis by facilitating for the federal funds rate rather than a primary credit program, Federal Reserve the issuance of asset-backed securities single target rate, and to reflect the Banks may extend credit on a very (‘‘ABS’’) collateralized by a variety of expiration of the TALF program. short-term basis, typically overnight, to consumer and business loans; it was DATES: Comments must be received no depository institutions that are in also intended to improve market later than January 8, 2018. generally sound condition in the conditions for ABS more generally. The ADDRESSES: You may submit comments, judgment of the Federal Reserve Bank. Board authorized the TALF pursuant to identified by Docket Number R–1585; In accordance with the Federal Reserve the then-current provisions of section RIN 7100 AE–90, by any of the Act, the primary credit rate is 13(3) of the Federal Reserve Act.5 All following methods: established by the boards of directors of TALF loans were extended by the • Agency Web site: http:// the Federal Reserve Banks, subject to Federal Reserve Bank of New York www.federalreserve.gov. Follow the the review and determination of the (‘‘FRBNY’’).6 instructions for submitting comments at Board. The primary credit rate is set On December 9, 2009, the Board http://www.federalreserve.gov/ forth in section 201.51 of Regulation A. adopted an amendment to Regulation A generalinfo/foia/ProposedRegs.cfm. to provide a process by which the • Federal eRulemaking Portal: http:// I. Primary Credit Rate in a Financial FRBNY could determine the eligibility www.regulations.gov. Follow the Emergency of credit rating agencies and the ratings instructions for submitting comments. Regulation A currently provides a • Email: regs.comments@ procedure for establishing the primary 2 Section 201.51(d)(1)(i) of Regulation A, 12 CFR federalreserve.gov. Include docket credit rate in a financial emergency. 201.51(d)(1)(i). number in the subject line of the 3 Section 201.51(d)(1)(ii) of Regulation A, 12 CFR Section 201.51(d) of Regulation A 201.51(d)(1)(ii). message. currently provides that the primary 4 • Section 201.51(d)(2) of Regulation A, 12 CFR Fax: (202) 452–3819 or (202) 452– credit rate at a Federal Reserve Bank is 201.51(d)(2). 3102. ‘‘the target federal funds rate of the 5 Former 12 U.S.C. 343. • 6 Mail: Ann E. Misback, Secretary, Federal Open Market Committee’’ if two The U.S. Treasury Department—under the Board of Governors of the Federal conditions are met.1 First, in a financial Troubled Assets Relief Program (TARP) of the Reserve System, 20th Street and Emergency Economic Stabilization Act of 2008— provided $20 billion of credit protection to the Constitution Avenue NW., Washington, 1 Section 201.51(d)(1) of Regulation A, 12 CFR FRBNY in connection with the TALF. See https:// DC 20551. 201.51(d)(1). www.federalreserve.gov/monetarypolicy/talf.htm.

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they issue for use in the TALF, for 1,567 depository institutions that are believes that a reasonable basis exists which the Board had expressly set a able to request primary credit that meet for assuming costs would be de minimis particular credit rating requirement for the definition of ‘‘small’’ business or insignificant for small entities collateral offered by the borrower.7 The entity, out of a total of 2,808 institutions affected by the proposed amendment. purpose of the amendment was to that are able to request primary credit. B. Paperwork Reduction Act Analysis provide the FRBNY with a consistent Section 201.3(d) of Regulation A. The framework for determining the proposed amendment to section Office of Management and Budget eligibility of ratings issued by 201.3(d) of Regulation A, relates to use (OMB) regulations implementing the individual credit rating agencies when of credit ratings for borrowers under the Paperwork Reduction Act (PRA) state used in conjunction with a separate TALF program. A small credit rating that agencies must submit ‘‘collections asset-level risk assessment process. agency is one with $15.0 million or less of information’’ contained in proposed Pursuant to this process, FRBNY in assets.10 rules published for public comment in determined that ratings from five credit 2. Economic Impacts on Small Entities the Federal Register in accordance with ratings agencies became eligible for use OMB regulations. OMB regulations in TALF. The Board certifies that the proposed define a ‘‘collection of information’’ as On June 30, 2010, the TALF was amendments will have no economic obtaining, causing to be obtained, closed for new loan extensions, and the impacts on any small entities. soliciting, or requiring the disclosure to final outstanding TALF loan was repaid Section 201.51(d) of Regulation A. an agency, third parties or the public of 8 in full in October 2014. Accordingly, The proposed amendments to section information by or for an agency ‘‘by the Board proposes to delete current 201.51(d) of Regulation A relate to the means of identical questions posed to, section 201.3(d) of Regulation A as its establishment of a rate for primary or identical reporting, recordkeeping, or provisions are no longer necessary. credit in a financial emergency. The disclosure requirements imposed on, proposed amendments make a III. Administrative Law Matters ten or more persons, whether such ministerial amendment to conform the collection of information is mandatory, A. Regulatory Flexibility Act provision to the current operating voluntary, or required to obtain or retain Congress enacted the Regulatory framework of the FOMC in establishing a benefit.’’ Flexibility Act (RFA) (5 U.S.C. 601 et a target range for the federal funds rate. The provision subject to the proposed In accordance with the PRA, the seq.) to address concerns related to the Board reviewed the proposed rule under effects of agency rules on small entities amendments affects the actions of the Federal Reserve Banks and the Board, the authority delegated to the Board by and the Board is sensitive to the impact OMB. its rules may impose on small entities. and requires no action or changes in The RFA requires agencies either to procedures for any depository Section 201.51(d) of Regulation A. provide an initial regulatory flexibility institution, large or small, and so there The proposed amendments to section analysis with a proposed rule or to are no costs associated with the 201.51(d) contain no requirements certify that the proposed rule will not proposed amendments. In addition, the subject to the PRA. Specifically, the have a significant economic impact on proposed amendments clarify the proposed amendments do not require a substantial number of small entities. operation of the provision for reducing any change to any collection of Under regulations issued by the Small the primary credit rate in a financial information related to the primary credit Business Administration (SBA), a emergency from its current level to a program under Regulation A, but apply depository institution is a ‘‘small entity’’ lower level based on the target federal only to the process by which the Federal if it is an institution with assets of $550 funds rate or the target range for the Reserve Banks and the Board establish million or less, determined by averaging federal funds rate. Any economic the primary credit rate in a financial the assets reported on its four quarterly impact of the proposed amendment on emergency. financial statements for the preceding small entities would be beneficial Section 201.3(d) of Regulation A. The year. A credit rating agency is a ‘‘small because, if the emergency provision proposed amendments to section entity’’ if it is a credit rating agency with took effect, they would be able to obtain 201.3(d) of Regulation A contain no $15 million or less in assets. primary credit at an interest rate that requirements subject to the PRA. would be lower than the existing 1. Description of Small Entities Affected primary credit rate. Accordingly, the C. Plain Language Section 201.51(d) of Regulation A. Board believes that a reasonable basis Each Federal banking agency, The proposed amendment to section exists for assuming costs would be de including the Board, is required to use 201.51(d) of Regulation A would affect minimis or insignificant for small plain language in all proposed and final depository institutions that are able to entities affected by the proposed rulemakings published after January 1, request primary credit from a Federal amendment. 2000. 12 U.S.C. 4809. The Board has Reserve Bank and that have $550 Section 201.3(d) of Regulation A. The sought to present the proposed million or less in assets, determined by proposed amendments to section amendments, to the extent possible, in averaging the assets reported on its four 201.3(d) of Regulation A relate to a simple and straightforward manner. quarterly financial statements for the deleting obsolete provisions applicable The Board invites comment on whether preceding year.9 Currently, there are to credit extended under the TALF there are additional steps that could be program. Since the TALF program no taken to make the proposed 7 74 FR 65014 (December 9, 2009). longer exists, the deletion of regulatory amendments easier to understand, such 8 https://www.federalreserve.gov/monetarypolicy/ provisions governing the use of credit as with respect to the organization of the talf.htm. ratings in it will have no impact, materials or the clarity of the 9 U.S. Small Business Administration, Table of economic or otherwise, on any credit Small Business Size Standards (eff. Oct. 1, 2017) at presentation. 28 (NAICS Codes 52110 (Commercial Banking), ratings agency. Accordingly, the Board 52120 (Savings Institutions), 52130 (Credit Unions), List of Subjects in 12 CFR Part 201 and 52190) (Other Depository Credit 10 U.S. Small Business Administration, Table of Intermediation); see id. at 41 n. 8 (calculation of Small Business Size Standards (eff. Oct. 1, 2017) at Banks, Banking, Federal Reserve asset size). 33 (NAICS Code 561450 (Credit Bureaus)). System, Reporting and recordkeeping.

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Authority and Issuance International-Richards Field Airport. authority described in Subtitle VII, Part For the reasons set forth in the Controlled airspace is necessary for the A, Subpart I, Section 40103. Under that preamble, the Board proposes to amend safety and management of instrument section, the FAA is charged with 12 CFR Chapter II as follows: flight rules (IFR) operations at the prescribing regulations to assign the use airport. This action also would update of airspace necessary to ensure the PART 201—EXTENSIONS OF CREDIT the geographic coordinates of the safety of aircraft and the efficient use of BY FEDERAL RESERVE BANKS airport. airspace. This regulation is within the (REGULATION A) DATES: Comments must be received on scope of that authority as it would or before January 22, 2018. amend Class E surface airspace and ■ 1. The authority citation for part 201 ADDRESSES: Send comments on this rule Class E airspace extending upward from continues to read as follows: to: U. S. Department of Transportation, 700 feet above the surface at Massena Authority: 12 U.S.C. 248(i)–(j) and (s), 343 Docket Operations, 1200 New Jersey International-Richards Field Airport, et seq., 347a, 347b, 347c, 348 et seq., 357, Avenue SE., West Bldg Ground Floor Massena, NY, to support IFR operations 374, 374a, and 461. Rm W12–140, Washington, DC, 20590; at the airport. SUPPLEMENTARY INFORMATION § 201.3 [Amended] Telephone: 1(800) 647–5527, or (202) : 366–9826.You must identify the Docket Comments Invited ■ 2. Section 201.3 is amended by No. FAA–2017–0953; Airspace Docket removing paragraph (e). No. 17–AEA–15, at the beginning of Interested persons are invited to ■ 3. Section 201.51 is amended by your comments. You may also submit comment on this rule by submitting revising paragraph (d)(1) introductory and review received comments through such written data, views, or arguments, text to read as follows: the Internet at http:// as they may desire. Comments that www.regulations.gov. You may review provide the factual basis supporting the § 201.51 Interest rates applicable to credit views and suggestions presented are extended by a Federal Reserve Bank. the public docket containing the proposal, any comments received, and particularly helpful in developing * * * * * any final disposition in person in the reasoned regulatory decisions on the (d) * * * Dockets Office between 9:00 a.m. and proposal. Comments are specifically (1) The primary credit rate at a 5:00 p.m., Monday through Friday, invited on the overall regulatory, Federal Reserve Bank is the target except federal holidays. aeronautical, economic, environmental, federal funds rate of the Federal Open FAA Order 7400.11B, Airspace and energy-related aspects of the Market Committee or, if the Federal Designations and Reporting Points, and proposal. Open Market Committee has set a target subsequent amendments can be viewed Communications should identify both range for the federal funds rate, the rate on line at http://www.faa.gov/air_ docket numbers (FAA Docket No. FAA– corresponding to the top of the target traffic/publications/. For further 2017–0953; Airspace Docket No. 17– range, if: information, you can contact the AEA–15) and be submitted in triplicate * * * * * Airspace Policy Group, Federal Aviation to the Docket Management System (see By the Board of Governors of the Federal Administration, 800 Independence ADDRESSES section for address and Reserve System, December 1, 2017. Avenue SW., Washington, DC, 20591; phone number). You may also submit Ann E. Misback, telephone: (202) 267–8783. The Order is comments through the Internet at http:// Secretary of the Board. also available for inspection at the www.regulations.gov. [FR Doc. 2017–26465 Filed 12–7–17; 8:45 am] National Archives and Records Persons wishing the FAA to Administration (NARA). For acknowledge receipt of their comments BILLING CODE 6210–01–P information on the availability of FAA on this action must submit with those Order 7400.11B at NARA, call (202) comments a self-addressed stamped 741–6030, or go to https:// postcard on which the following DEPARTMENT OF TRANSPORTATION www.archives.gov/federal-register/cfr/ statement is made: ‘‘Comments to Federal Aviation Administration ibr-locations.html. Docket No. FAA–2014–0953; Airspace FAA Order 7400.11, Airspace Docket No. 17–AEA–15.’’ The postcard 14 CFR Part 71 Designations and Reporting Points, is will be date/time stamped and returned published yearly and effective on to the commenter. [Docket No. FAA–2017–0953; Airspace September 15. All communications received before Docket No. 17–AEA–15] FOR FURTHER INFORMATION CONTACT: John the specified closing date for comments Proposed Amendment of Class E Fornito, Operations Support Group, will be considered before taking action Airspace; Massena, NY Eastern Service Center, Federal Aviation on the proposed rule. The proposal Administration, P.O. Box 20636, contained in this notice may be changed AGENCY: Federal Aviation Atlanta, Georgia 30320; telephone (404) in light of the comments received. A Administration (FAA), DOT. 305–6364. report summarizing each substantive ACTION: Notice of proposed rulemaking SUPPLEMENTARY INFORMATION: public contact with FAA personnel (NPRM). concerned with this rulemaking will be Authority for This Rulemaking filed in the docket. SUMMARY: This action proposes to The FAA’s authority to issue rules amend Class E surface airspace and regarding aviation safety is found in Availability of NPRMs Class E airspace extending upward from Title 49 of the United States Code. An electronic copy of this document 700 feet above the surface at Massena, Subtitle I, Section 106 describes the may be downloaded from and NY, as the Massena collocated VHF authority of the FAA Administrator. comments submitted through http:// omnidirectional range tactical air Subtitle VII, Aviation Programs, www.regulations.gov. Recently navigation system (VORTAC) has been describes in more detail the scope of the published rulemaking documents can decommissioned, requiring airspace agency’s authority. This proposed also be accessed through the FAA’s Web reconfiguration at Massena rulemaking is promulgated under the page at http://www.faa.gov/

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