Federal Register / Vol. 80, No. 72 / Wednesday, April 15, 2015 / Rules and Regulations 20153

approved spent fuel storage casks.’’ The ADAMS Section 72.44(g) also issued under Nuclear revision consists of Amendment No. 5, accession No./ Waste Policy Act secs. 142(b) and 148(c), (d) (42 U.S.C. 10162(b), 10168(c), (d)). Section which adds a new damaged fuel Document web link/ assembly; revises the maximum or Federal 72.46 also issued under Atomic Energy Act Register sec. 189 (42 U.S.C. 2239); Nuclear Waste minimum enrichments for three fuel citation Policy Act sec. 134 (42 U.S.C. 10154). Section assembly designs; adds four-zone new 72.96(d) also issued under Nuclear Waste preferential loading for pressurized- Supplemental Information for Policy Act sec. 145(g) (42 U.S.C. 10165(g)). water reactor fuel assemblies; increases Proposed Action Dated Subpart J also issued under Nuclear Waste the maximum dose rates in LCO 3.3.1; June 13, 2014 ...... ML14170A032 Policy Act secs. 117(a), 141(h) (42 U.S.C. and makes other editorial changes to 10137(a), 10161(h)). Subpart K also issued Appendices A and B to the TSs. The The NRC may post materials related under Nuclear Waste Policy Act sec. 218(a) revised TSs are identified in the SER. to this document, including public (42 U.S.C. 10198). Amendment No. 5 to CoC No. 1031 comments, on the Federal rulemaking ■ 2. In § 72.214, Certificate of for the NAC International, Inc., Web site at http://www.regulations.gov Compliance No. 1031 is revised to read ® MAGNASTOR System was not under Docket ID NRC–2014–0261. The as follows: submitted in response to new NRC Federal rulemaking Web site allows you requirements, or an NRC request for to receive alerts when changes or § 72.214 List of approved spent fuel amendment. Amendment No. 5 applies additions occur in a docket folder. To storage casks. only to new casks fabricated and used subscribe: (1) Navigate to the docket * * * * * under Amendment No. 5. These changes folder (NRC–2014–0261); (2) click the Certificate Number: 1031. do not affect existing users of the ‘‘Sign up for Email Alerts’’ link; and (3) Initial Certificate Effective Date: MAGNASTOR® System, and the current enter your email address and select how February 4, 2009. amendments continue to be effective for frequently you would like to receive Amendment Number 1 Effective Date: existing users. While any current CoC emails (daily, weekly, or monthly). August 30, 2010. Amendment Number 2 Effective Date: users may comply with the new List of Subjects in 10 CFR Part 72 requirements in Amendment No. 5, this January 30, 2012. would be a voluntary decision on the Administrative practice and Amendment Number 3 Effective Date: part of current users. For these reasons, procedure, Criminal penalties, July 25, 2013. Amendment Number 4 Effective Date: Amendment No. 5 to CoC No. 1031 does Manpower training programs, Nuclear April 14, 2015. not constitute backfitting under 10 CFR materials, Occupational safety and Amendment Number 5 Effective Date: 72.62, 10 CFR 50.109(a)(1), or otherwise health, Penalties, Radiation protection, June 29, 2015. represent an inconsistency with the Reporting and recordkeeping SAR Submitted by: NAC issue finality provisions applicable to requirements, Security measures, Spent International, Inc. combined licenses in 10 CFR part 52. fuel, Whistleblowing. SAR Title: Final Safety Analysis Accordingly, no backfit analysis or For the reasons set out in the Report for the MAGNASTOR® System. additional documentation addressing preamble and under the authority of the Docket Number: 72–1031. issue finality criteria in 10 CFR part 52 Atomic Energy Act of 1954, as amended; Certificate Expiration Date: February has been prepared by the staff. 4, 2029. the Energy Reorganization Act of 1974, ® XIII. Congressional Review Act as amended; the Nuclear Waste Policy Model Number: MAGNASTOR . Act of 1982, as amended; and 5 U.S.C. * * * * * This action is not a major rule as 552 and 553; the NRC is adopting the defined in the Congressional Review Dated at Rockville, Maryland, this 29th day following amendments to 10 CFR part Act (5 U.S.C. 801–808). of January, 2015. 72. For the Nuclear Regulatory Commission. XIV. Availability of Documents PART 72—LICENSING Mark A. Satorius, The documents identified in the REQUIREMENTS FOR THE Executive Director for Operations. following table are available to INDEPENDENT STORAGE OF SPENT [FR Doc. 2015–08679 Filed 4–14–15; 8:45 am] interested persons through one or more NUCLEAR FUEL, HIGH-LEVEL BILLING CODE 7590–01–P of the following methods, as indicated. RADIOACTIVE WASTE, AND REACTOR-RELATED GREATER THAN ADAMS accession No./ CLASS C WASTE FEDERAL RESERVE SYSTEM Document web link/ Federal ■ 1. The authority citation for part 72 12 CFR Parts 217, 225, and 238 Register citation continues to read as follows: [Docket No. R–1509] Authority: Atomic Energy Act secs. 51, 53, RIN 1700–AE 30 Proposed CoC No. 1031, 57, 62, 63, 65, 69, 81, 161, 182, 183, 184, 186, Amendment No. 5 ...... ML14216A197 187, 189, 223, 234, 274 (42 U.S.C. 2071, 2073, Regulations Q, Y, and LL: Small Bank Proposed TS, Appendix A .... ML14216A257 2077, 2092, 2093, 2095, 2099, 2111, 2201, Proposed TS, Appendix B .... ML14216A270 2232, 2233, 2234, 2236, 2237, 2239, 2273, Holding Company Policy Statement; Preliminary SER ...... ML14216A310 2282, 2021); Energy Reorganization Act secs. Capital Adequacy of Board-Regulated Request to Amend Ref- 201, 202, 206, 211 (42 U.S.C. 5841, 5842, Institutions; Bank Holding Companies; erence 1 Dated December 5846, 5851); National Environmental Policy Savings and Loan Holding Companies 19, 2013 ...... ML13361A144 Act sec. 102 (42 U.S.C. 4332); Nuclear Waste Request to Amend Ref- Policy Act secs. 131, 132, 133, 135, 137, 141, AGENCY: Board of Governors of the erence 3 Dated March 19, 148 (42 U.S.C. 10151, 10152, 10153, 10155, Federal Reserve System (Board). 2014 ...... ML14079A525 10157, 10161, 10168); Government ACTION: Final rule. Request for Additional Infor- Paperwork Elimination Act sec. 1704 (44 mation (RAI) Dated May U.S.C. 3504 note); Energy Policy Act of 2005, SUMMARY: The Board is adopting final 15, 2014 ...... ML14140A239 Pub. L. 109–58, 119 Stat. 549 (2005). amendments (Final Rule) to the Small

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Bank Holding Company Policy allow bank holding companies and subsidiary; 5 and (iii) did not have a Statement (Regulation Y, Appendix C) savings and loan holding companies material amount of debt or equity (Policy Statement) that: raise from $500 with less than $1 billion in total securities outstanding (other than trust million to $1 billion the asset threshold consolidated assets to qualify under the preferred securities) that are registered to qualify for the Policy Statement; and Policy Statement, provided the holding with the Securities and Exchange expand the scope of companies eligible companies also comply with three Commission. The Board last raised the under the Policy Statement to include qualitative requirements (Qualitative asset threshold in 2006 when it savings and loan holding companies. Requirements). Previously, only bank increased it from $150 million to $500 The Board is also adopting final holding companies with less than $500 million.6 conforming revisions to Regulation Y million in total consolidated assets that Under the Policy Statement, holding and Regulation LL, the Board’s complied with the Qualitative companies that meet the Qualitative regulations governing the operations Requirements could qualify under the Requirements may use debt to finance and activities of bank holding Policy Statement. With the exception of up to 75 percent of the purchase price companies and savings and loan the proposed changes to the reporting of an acquisition (that is, they may have holding companies, respectively, and requirements, the Board is adopting as a debt-to-equity ratio of up to 3.0:1), but Regulation Q, the Board’s regulatory final the Proposed Rule without are subject to a number of ongoing capital rules. changes.4 requirements. The principal ongoing DATES: The final rule is effective May The Board issued the Policy requirements are that a qualifying 15, 2015. Statement in 1980 to facilitate the holding company: (i) Reduce its parent FOR FURTHER INFORMATION CONTACT: transfer of ownership of small company debt in such a manner that all Constance M. Horsley, Assistant community-based banks in a manner debt is retired within 25 years of being Director, (202) 452–5239, Cynthia consistent with bank safety and incurred; (ii) reduce its debt-to equity Ayouch, Manager, (202) 452–2204, soundness. The Board has generally ratio to .30:1 or less within 12 years of Thomas Boemio, Manager, (202) 452– discouraged the use of debt by bank the debt being incurred; (iii) ensure that 2982, Douglas Carpenter, Senior holding companies to finance the each of its subsidiary insured depository Supervisory Financial Analyst, (202) acquisition of banks or other companies institutions is well capitalized; and (iv) 452–2205, Page Conkling, Supervisory because high levels of debt can impair refrain from paying dividends until Financial Analyst, (202) 912–4647, or the ability of the holding company to such time as it reduces its debt-to-equity Noah Cuttler, Senior Financial Analyst, serve as a source of strength to its ratio to 1.0:1 or less. The Policy (202) 912–4678, Division of Banking subsidiary banks. The Board has Statement also specifically provides that Supervision and Regulation; Laurie recognized, however, that small bank a qualifying bank holding company may Schaffer, Associate General Counsel, holding companies have less access to not use the expedited procedures for (202) 452–2272, or Tate Wilson, equity financing than larger bank obtaining approval of acquisition Counsel, (202) 452–3696, Legal holding companies and that the transfer proposals or obtaining a waiver of the Division; Board of Governors of the of ownership of small banks often stock redemption filing requirements Federal Reserve System, 20th and C requires the use of acquisition debt. applicable to bank holding companies Streets NW., Washington, DC 20551. Accordingly, the Board adopted the under the Board’s Regulation Y (12 CFR Policy Statement to permit the SUPPLEMENTARY INFORMATION: 225.4(b), 225.14, and 225.23) unless the formation and expansion of small bank bank holding company has a pro forma Table of Contents holding companies with debt levels that debt-to-equity ratio of 1.0:1 or less. are higher than typically permitted for I. Background II. Overview of Comments II. Overview of Comments larger bank holding companies. The III. Summary of the Final Rule Policy Statement contains several The Board received 11 comments on IV. Administrative Law Matters conditions and restrictions designed to the Proposed Rule. Comments were A. Regulatory Flexibility Act ensure that small bank holding submitted by financial trade B. Paperwork Reduction Act companies that operate with the higher associations, individuals associated C. Plain Language levels of debt permitted by the Policy with financial institutions, and a law I. Background Statement do not present an undue risk firm that represents bank holding On February 3, 2015, the Board to the safety and soundness of their companies and savings and loan invited comment on a proposed rule subsidiary banks. holding companies. While each Previously, the Policy Statement (Proposed Rule) 1 to implement Public commenter expressed general support applied only to bank holding companies Law 113–250 (the Act).2 The Proposed for the Proposed Rule, some with pro forma consolidated assets of Rule proposed increasing the amount of commenters recommended revisions to less than $500 million that met the assets qualifying holding companies the Proposed Rule. For instance, one following Qualitative Requirements: (i) may have, expanding the application of commenter expressed support for the Policy Statement to qualifying Were not engaged in significant raising the asset threshold higher than savings and loan holding companies, nonbanking activities either directly or $1 billion. Another commenter revising the applicability of the Board’s through a nonbank subsidiary; (ii) did expressed support for the nonbanking regulatory capital rules 3 to exclude not conduct significant off-balance sheet and off-balance sheet activity savings and loan holding companies activities (including securitization and requirements but suggested that the subject to the Policy Statement, and asset management or administration) Board consider rescinding or revising revising certain reporting requirements. either directly or through a nonbank Specifically, the Proposed Rule would 5 The examples provided in the Policy 4 The comment period for the proposed changes Statement—securitization and asset management or to the reporting requirements in the Proposed Rule administration—are not exhaustive and serve to 1 80 FR 5694 (February 3, 2015) (Proposed Rule). runs through April 6, 2015. Once the comment highlight off-balance sheet activities that may 2 Pub. L. 113–250 (December 18, 2014) (Pub. L. period for the proposed reporting requirements involve substantial risk. Other activities may 113–250). The Act was enacted on December 18, closes, the Board will consider any and all reporting present similar concerns. See also 71 FR 9897, 2014, and became immediately effective. and Paperwork Reduction Act-related comments 9899, fn. 2 (February 28, 2006) (2006 Final Rule). 3 12 CFR part 217 (Regulation Q). before finalizing any reporting changes. 6 See 2006 Final Rule.

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the requirement relating to outstanding holding companies.10 The Board Requirements concerning nonbanking debt or equity securities registered with therefore will treat subsidiary savings and off-balance sheet activities.13 the SEC. The Board’s responses to these associations of savings and loan holding One commenter urged the Board to comments are discussed below. companies as if they were banks for rescind the Qualitative Requirement purposes of applying the Policy III. Summary of the Final Rule that would disqualify a bank holding Statement. company or savings and loan holding Increase in Amount of Qualifying Assets As is the case with bank holding company with a material amount of Under the Final Rule, a holding companies, whether a savings and loan outstanding SEC-registered debt or company with less than $1 billion in holding company engages in equity securities. In the alternative, the total consolidated assets may qualify ‘‘significant’’ nonbanking activities will commenter suggested the Board clarify under the Policy Statement, provided it depend on the scope of the activities of whether bank holding companies and also complies with the Qualitative the savings and loan holding company, savings and loan holding companies Requirements. This new asset limit is the nature and level of risk of the that meet the asset size threshold and set by statute.7 As noted above, activities, the condition of the savings would otherwise qualify under the commenters generally supported the and loan holding company, and other Policy Statement but for having SEC- Board’s proposal to increase the scope criteria as appropriate.11 registered debt or equity could qualify of the Policy Statement by allowing Consistent with the Policy under the Policy Statement. firms with less than $1 billion in total Statement’s provisions for bank holding assets to qualify. One commenter The exclusion from the Policy companies, the Board retains the right to Statement of any bank holding company suggested that the threshold be exclude any savings and loan holding increased to $5 billion. The Act directs that has a material amount of SEC- company, regardless of size, from the registered debt or equity securities the Board to increase the threshold to $1 Policy Statement if the Board billion, and section 171 of the Dodd- reflected the view that SEC registrants determines that such action is typically exhibited a degree of Frank Wall Street Reform and Consumer warranted for supervisory purposes. Protection Act (Dodd-Frank Act) 8 complexity of operations and access to effectively prevents the threshold from Policy Statement’s Qualitative multiple funding sources that warranted being raised any higher. Requirements exclusion from the Policy Statement.14 Determinations of materiality are made Policy Statement’s Application to The Final Rule retains the Qualitative on a case-by-case basis in order to assess Savings and Loan Holding Companies Requirements without change. One the complexity of a firm. In considering The Act also directs the Board to commenter noted that the Qualitative whether a savings and loan holding propose revisions to the Policy Requirements concerning nonbanking company or bank holding company has Statement that would extend its and off-balance sheet activities a material amount of SEC-registered application to certain savings and loan adequately cover bank holding debt or equity securities outstanding holding companies. Consistent with the companies and savings and loan that contributes to its complexity (other holding companies that meet the size Proposed Rule, the Final Rule applies than trust preferred securities), the threshold but have unusually complex the revised Policy Statement to savings Board may consider, among other activities at the holding company level. and loan holding companies by factors: The number and type of classes None of the commenters expressed amending Appendix C to 12 CFR part and series of stock issued; the holding concerns related to the nonbanking or 225 and adding new section 238.9 to company’s market capitalization; the off-balance sheet activities Subpart A of Regulation LL. number of outstanding shares; the requirements. Consistent with the As explained in the Proposed Rule, average trading volume; the holding Board’s previously-issued guidance on this change requires other modifications company’s history of issuing equity and these two Qualitative Requirements,12 to the Policy Statement to take into debt securities, including whether the whether a bank holding company or account the status of savings entity has issued any other securities savings and loan holding company associations under the Bank Holding that are not registered with the SEC Company Act of 1956, as amended (BHC engages in significant nonbanking or off- balance sheet activities will continue to (e.g., privately-placed securities); the Act). The first Qualitative Requirement nature and distribution of ownership; uses the terms ‘‘nonbanking activities’’ depend on a consideration of the scope of the activities, the nature and level of whether the securities are listed on a and ‘‘nonbank subsidiary’’ to refer to the national exchange; whether the holding activities of a bank holding company. risk of the activities, the condition of the holding company and its subsidiary company qualifies as a ‘‘smaller Under the BHC Act, however, control of reporting company’’ pursuant to the a savings association by a bank holding depository institution, and other criteria as appropriate. As previously stated, SEC’s regulations and related company is considered a nonbanking interpretations; and the amount, type, activity.9 Because savings and loan determinations of significance are made on a case-by-case basis, and relatively and terms of any debt instruments holding companies control savings issued by the entity. While the Policy associations, all activities of savings and few bank holding companies or savings and loan holding companies are likely Statement has included the loan holding companies, including the ‘‘materiality’’ standard since 2006, as a control of savings associations would be to be excluded from the Policy general matter, application of this considered nonbanking activities under Statement due to the Qualitative standard has not resulted in many bank the Policy Statement. holding companies being excluded from This outcome would be inconsistent 10 See, e.g., Pub. L. 113–250, sec. 2(b). the Policy Statement. After considering with Congressional intent to apply the 11 For purposes of applying the Policy Statement the concerns raised by the commenter, Policy Statement to savings and loan to savings and loan holding companies, the term ‘‘nonbank subsidiary’’ as used in the Policy the Board is adopting the Qualitative Statement refers to a subsidiary of a savings and Requirements unchanged. 7 Public Law 113–250. loan holding company other than a savings 8 12 U.S.C. 5371, as amended. association or a subsidiary of a savings association. 9 See 12 U.S.C. 1841(c)(2)(B), 1841(j), and 12 See Proposed Rule, 80 FR 5695; 2006 Final 13 2006 Final Rule, 71 FR 9900. 1843(i)(1). Rule, 71 FR 9899–9900. 14 2006 Final Rule, 71 FR 9899.

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Regulation Q Change 225) applies to entities with less than $1 rulemaking. Thus, no issues were raised billion of total assets. in public comments related to the When the Board proposed the • Proposed Rule, the Board separately In section 225.4(b)(2)(iii), different Board’s initial regulatory flexibility act revised Regulation Q, 12 CFR part 217, pro forma financial information is analysis and no changes are being made through issuance of an interim final rule required of smaller bank holding in response to such comments. (Interim Final Rule), to exclude a companies with less than $1 billion in The Final Rule impacts small bank qualifying savings and loan holding total assets than for larger bank holding holding companies and small savings company from consolidated regulatory companies under section 225.4(b)(1) of and loan holding companies with total 15 the Board’s Regulation Y. consolidated assets of $500 to $550 capital requirements. The Interim • Final Rule gave effect to the Act, which In section 225.14(a)(1)(v), different million that meet the Qualitative immediately excepted savings and loan pro forma financial information is Requirements by providing an exclusion holding companies that complied with required of smaller bank holding for these companies from Regulation Q. the Policy Statement then in effect from companies with less than $1 billion in The Board believes that most affected the provisions of section 171 of the total assets than for larger bank holding small banking organizations already Dodd-Frank Act.16 At that time, the companies under section 225.14 of the hold more capital than is required under Board’s Regulation Y. Regulation Q, so the burden reduction Policy Statement applied to firms with • less than $500 million in total In section 225.17(a)(6), footnote 6, a from the exclusion from Regulation Q is consolidated assets so the Interim Final bank holding company with less than $1 primarily related to compliance and Rule contained the same limit. In the billion in assets can satisfy the debt systems necessary to comply with Proposed Rule, the Board proposed requirement if it complies with the Regulation Q. In addition, affected small Policy Statement. bank holding companies will now be further revisions to Regulation Q that • would expand the scope of the In section 225.23(a)(1)(iii), different able to take advantage of the exclusion for savings and loan holding pro forma financial information is applications processing procedures companies to firms with less than $1 required of smaller bank holding provided to qualifying companies under billion in total consolidated assets that companies with less than $1 billion in the Policy Statement. also meet the Qualitative Requirements. total assets than for larger bank holding There are no significant alternatives to The proposed revisions to Regulation Q companies under section 225.23 of the the Final Rule that have less economic in the Proposed Rule would supersede Board’s Regulation Y. impact on small banking organizations, the changes to Regulation Q from the IV. Administrative Law Matters and the Final Rule significantly reduces Interim Final Rule. The Board did not burden on nearly all small banking receive any comments concerning the A. Regulatory Flexibility Act Analysis organizations. proposed change to Regulation Q. The The Board is providing a final B. Paperwork Reduction Act Board is adopting as final the proposed regulatory flexibility analysis with revisions to Regulation Q that conform respect to the Final Rule. As discussed At this time, the Board is not adopting it to reflect the revised Policy Statement. above, the Final Rule reduces regulatory as final the changes to reporting requirements in the Proposed Rule. The Conforming Amendments burden on small entities by excluding many bank holding companies and comment period for the proposed A number of filing and other savings and loan holding companies changes to the reporting requirements in provisions in Regulations Y and LL are with total consolidated assets of less the Proposed Rule runs through April 6, triggered by the asset size established in than $1 billion that meet the Qualitative 2015. Once the comment period for the the Policy Statement. The Board is Requirements from the application of proposed reporting requirements closes, adopting as final the proposed changes Regulation Q. the Board will consider any and all that enable qualifying small bank The Regulatory Flexibility Act, 5 reporting and Paperwork Reduction Act- holding companies and savings and U.S.C. 601 et seq., generally requires related comments before finalizing any loan holding companies to take that an agency provide a final regulatory reporting changes. advantage of the streamlined flexibility analysis in connection with a C. Plain Language informational, notice, and other final rule. Under regulations issued by regulatory requirements. These the Small Business Administration, a Section 722 of the Gramm-Leach- technical and conforming amendments small bank holding company, bank, or Bliley Act (Pub. L. 106–102, 113 Stat. provide relief to most bank holding savings and loan holding company is 1338, 1471, 12 U.S.C. 4809) requires the companies and savings and loan defined as having assets of $550 million Federal banking agencies to use ‘‘plain holding companies with less than $1 or less (collectively, small banking language’’ in all proposed and final billion of total consolidated assets. The organizations).17 As of December 31, rules published after January 1, 2000. In Final Rule includes the following 2014, there were approximately 3,862 light of this requirement, the Board has technical and conforming amendments: sought to present the Final Rule in a • In section 217.1(c)(1)(iii), small bank holding companies and 275 small savings and loan holding simple and straightforward manner. The Regulation Q (12 CFR part 217) excludes Board sought to present the Proposed savings and loan holding companies companies. The Board received no comments Rule in a simple and straightforward that are subject to the Policy Statement from the public or from the Chief manner and solicited comment on how through operation of section 238.9 of the to make the Proposed Rule easier to Board’s Regulation LL (12 CFR part Counsel for Advocacy of the Small Business Administration in response to understand. No comments were 238). received on the use of plain language. • In section 225.2(r), footnote 2, the the initial regulatory flexibility analysis footnote describing the application of provided with the notice of proposed List of Subjects the definition of ‘‘well-capitalized’’ in 17 12 CFR Part 217 the Board’s Regulation Y (12 CFR part See 13 CFR 121.201. Effective July 14, 2014, the Small Business Administration revised the size standards for banking organizations to $550 million Administrative practice and 15 80 FR 5666 (February 3, 2015). in assets from $500 million in assets. 79 FR 33647 procedure, Banks, banking, Capital, 16 See Pub. L. 113–250. (June 12, 2014). Federal Reserve System, Holding

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companies, Reporting and Authority: 12 U.S.C. 1817(j)(13), 1818, sheet as of the most recent quarter recordkeeping requirements, Securities. 1828(o), 1831i, 1831p–1, 1843(c)(8), 1844(b), showing credit and debit adjustments 1972(1), 3106, 3108, 3310, 3331–3351, 3906, that reflect the proposed transaction, 12 CFR Part 225 3907, and 3909; 15 U.S.C. 1681s, 1681w, and a description of the purchase price, 6801 and 6805. Administrative practice and the terms and sources of funding for the procedure, Banks, banking, Federal ■ 4. In § 225.2, paragraph (r), revise transaction, and the sources and Reserve System, Holding companies, footnote 2 to read as follows: schedule for retiring any debt incurred Reporting and recordkeeping in the transaction; § 225.2 Definitions. requirements. * * * * * * * * * * 12 CFR Part 238 (r) * * * ■ 7. In § 225.17, in paragraph (a)(6), revise footnote 6 to read as follows: Administrative practice and Footnote 2: For purposes of this subpart and procedure, Banks, banking, Federal subparts B and C of this part, a bank holding § 225.17 Notice procedure for one-bank Reserve System, Holding companies, company with consolidated assets of less holding company formations. Reporting and recordkeeping than $1 billion that is subject to the Small * * * * * requirements. Bank Holding Company Policy Statement in (a) * * * appendix C of this part will be deemed to be Federal Reserve System ‘‘well-capitalized’’ if the bank holding (6) * * * 12 CFR CHAPTER II company meets the requirements for Footnote 6—For a banking organization with expedited/waived processing in appendix C. consolidated assets, on a pro forma basis, of Authority and Issuance ■ less than $1 billion (other than a banking 5. In § 225.4, revise paragraph organization that will control a de novo For the reasons set forth in the (b)(2)(iii) to read as follows: preamble, chapter II of title 12 of the bank), this requirement is satisfied if the § 225.4 Corporate practices. proposal complies with the Board’s Small Code of Federal Regulations is amended Bank Holding Company Policy Statement as set forth below: * * * * * (appendix C of this part). (b) * * * ■ PART 217—CAPITAL ADEQUACY OF (2) * * * 8. In § 225.23, revise paragraph BANK HOLDING COMPANIES, (iii)(A) If the bank holding company (a)(1)(iii) to read as follows: SAVINGS AND LOAN HOLDING has consolidated assets of $1 billion or § 225.23 Expedited action for certain COMPANIES, AND STATE MEMBER more, consolidated pro forma risk-based nonbanking proposals by well-run bank BANKS (REGULATION Q) capital and leverage ratio calculations holding companies. for the bank holding company as of the ■ 1. The authority citation for part 217 * * * * * most recent quarter, and, if the continues to read as follows: (a) * * * redemption is to be debt funded, a (1) * * * Authority: 12 U.S.C. 248(a), 321–338a, parent-only pro forma balance sheet as (iii) If the proposal involves an 481–486, 1462a, 1467a, 1818, 1828, 1831n, of the most recent quarter; or acquisition of a going concern: 1831o, 1831p–l, 1831w, 1835, 1844(b), 1851, (B) If the bank holding company has (A) If the bank holding company has 3904, 3906–3909, 4808, 5365, 5368, 5371. consolidated assets of less than $1 consolidated assets of $1 billion or ■ 2. In § 217.1, revise paragraph billion, a pro forma parent-only balance more, an abbreviated consolidated pro (c)(1)(iii) to read as follows: sheet as of the most recent quarter, and, forma balance sheet for the acquiring § 217.1 Purpose, applicability, if the redemption is to be debt funded, bank holding company as of the most reservations of authority, and timing. one-year income statement and cash recent quarter showing credit and debit flow projections. * * * * * adjustments that reflect the proposed (c) * * * * * * * * transaction, consolidated pro forma (1) * * * ■ 6. In § 225.14, revise paragraph risk-based capital ratios for the (iii) A covered savings and loan (a)(1)(v) to read as follows: acquiring bank holding company as of holding company domiciled in the the most recent quarter, a description of United States, other than a savings and § 225.14 Expedited action for certain bank the purchase price and the terms and loan holding company that has total acquisitions by well-run bank holding sources of funding for the transaction, companies. consolidated assets of less than $1 and the total revenue and net income of billion and meets the requirements of 12 * * * * * the company to be acquired; CFR part 225, appendix C, as if the (a) * * * (B) If the bank holding company has savings and loan holding company were (1) * * * consolidated assets of less than $1 a bank holding company and the (v)(A) If the bank holding company billion, a pro forma parent-only balance savings association were a bank. For has consolidated assets of $1 billion or sheet as of the most recent quarter purposes of compliance with the capital more, an abbreviated consolidated pro showing credit and debit adjustments adequacy requirements and calculations forma balance sheet as of the most that reflect the proposed transaction, a in this part, savings and loan holding recent quarter showing credit and debit description of the purchase price and companies that do not file the FR Y–9C adjustments that reflect the proposed the terms and sources of funding for the should follow the instructions to the FR transaction, consolidated pro forma transaction and the sources and Y–9C. risk-based capital ratios for the schedule for retiring any debt incurred acquiring bank holding company as of * * * * * in the transaction, and the total assets, the most recent quarter, and a off-balance sheet items, revenue and net PART 225—BANK HOLDING description of the purchase price and income of the company to be acquired; COMPANIES AND CHANGE IN BANK the terms and sources of funding for the (C) For each insured depository CONTROL (REGULATION Y) transaction; institution whose Tier 1 capital, total (B) If the bank holding company has capital, total assets or risk-weighted ■ 3. The authority citation for part 225 consolidated assets of less than $1 assets change as a result of the continues to read as follows: billion, a pro forma parent-only balance transaction, the total risk-weighted

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assets, total assets, Tier 1 capital and Statement refers to a subsidiary of a whether a benefit is payable as a lump total capital of the institution on a pro savings and loan holding company other sum and to determine the amount to forma basis; than a savings association or a pay. Appendix C to Part 4022 contains * * * * * subsidiary of a savings association. interest assumptions for private-sector ■ 9. In appendix C to part 225, revise (b) The Board may exclude any pension practitioners to refer to if they the heading and, under section 1, revise savings and loan holding company, wish to use lump-sum interest rates the first undesignated paragraph to read regardless of asset size, from the Policy determined using PBGC’s historical as follows: Statement under paragraph (a) of this methodology. Currently, the rates in section if the Board determines that Appendices B and C of the benefit Appendix C to Part 225—Small Bank such action is warranted for supervisory payment regulation are the same. Holding Company and Savings and purposes. The interest assumptions are intended Loan Holding Company Policy By order of the Board of Governors of the to reflect current conditions in the Statement Federal Reserve System, April 9, 2015. financial and annuity markets. * * * * * Margaret McCloskey Shanks, Assumptions under the benefit Deputy Secretary of the Board. payments regulation are updated 1. Applicability of Policy Statement monthly. This final rule updates the [FR Doc. 2015–08513 Filed 4–14–15; 8:45 am] This policy statement applies only to bank benefit payments interest assumptions holding companies with pro forma BILLING CODE 6210–01–P for May 2015.1 consolidated assets of less than $1 billion The May 2015 interest assumptions that (i) are not engaged in significant under the benefit payments regulation nonbanking activities either directly or PENSION BENEFIT GUARANTY will be 0.75 percent for the period through a nonbank subsidiary; (ii) do not CORPORATION conduct significant off-balance sheet during which a benefit is in pay status activities (including securitization and asset 29 CFR Part 4022 and 4.00 percent during any years management or administration) either preceding the benefit’s placement in pay directly or through a nonbank subsidiary; Benefits Payable in Terminated Single- status. In comparison with the interest and (iii) do not have a material amount of Employer Plans; Interest Assumptions assumptions in effect for April 2015, debt or equity securities outstanding (other for Paying Benefits these interest assumptions are than trust preferred securities) that are unchanged. registered with the Securities and Exchange AGENCY: Pension Benefit Guaranty PBGC has determined that notice and Commission. The Board may in its discretion Corporation. exclude any bank holding company, public comment on this amendment are regardless of asset size, from the policy ACTION: Final rule. impracticable and contrary to the public statement if such action is warranted for interest. This finding is based on the SUMMARY: supervisory purposes.1 With the exception of This final rule amends the need to determine and issue new section 4 (Additional Application Pension Benefit Guaranty Corporation’s interest assumptions promptly so that Requirements for Expedited/Waived regulation on Benefits Payable in the assumptions can reflect current Processing), the policy statement applies to Terminated Single-Employer Plans to market conditions as accurately as savings and loan holding companies as if prescribe interest assumptions under possible. they were bank holding companies. the regulation for valuation dates in Because of the need to provide May 2015. The interest assumptions are * * * * * immediate guidance for the payment of used for paying benefits under benefits under plans with valuation PART 238—SAVINGS AND LOAN terminating single-employer plans dates during May 2015, PBGC finds that HOLDING COMPANIES (REGULATION covered by the pension insurance good cause exists for making the LL) system administered by PBGC. assumptions set forth in this DATES: Effective May 1, 2015. ■ 10. The authority citation for part 238 amendment effective less than 30 days continues to read as follows: FOR FURTHER INFORMATION CONTACT: after publication. Catherine B. Klion (Klion.Catherine@ PBGC has determined that this action Authority: 5 U.S.C. 552, 559; 12 U.S.C. pbgc.gov), Assistant General Counsel for 1462, 1462a, 1463, 1464, 1467, 1467a, 1468, is not a ‘‘significant regulatory action’’ 1813, 1817, 1829e, 1831i, 1972; 15 U.S.C. 78l. Regulatory Affairs, Pension Benefit under the criteria set forth in Executive Guaranty Corporation, 1200 K Street ■ 11. Add § 238.9 to subpart A to read Order 12866. NW., Washington, DC 20005, 202–326– as follows: Because no general notice of proposed 4024. (TTY/TDD users may call the rulemaking is required for this § 238.9 Small Bank Holding Company Federal relay service toll-free at 1–800– amendment, the Regulatory Flexibility Policy Statement. 877–8339 and ask to be connected to Act of 1980 does not apply. See 5 U.S.C. (a) The Board’s Small Bank Holding 202–326–4024.) 601(2). Company Policy Statement (12 CFR part SUPPLEMENTARY INFORMATION: PBGC’s List of Subjects in 29 CFR Part 4022 225, appendix C) (Policy Statement) regulation on Benefits Payable in applies to savings and loan holding Terminated Single-Employer Plans (29 Employee benefit plans, Pension companies as if they were bank holding CFR part 4022) prescribes actuarial insurance, Pensions, Reporting and companies. To qualify or rely on the assumptions—including interest recordkeeping requirements. Policy Statement, savings and loan assumptions—for paying plan benefits In consideration of the foregoing, 29 holding companies must meet all under terminating single-employer CFR part 4022 is amended as follows: qualifying requirements in the Policy plans covered by title IV of the Statement as if they were a bank holding Employee Retirement Income Security 1 Appendix B to PBGC’s regulation on Allocation company. For purposes of applying the Act of 1974. The interest assumptions in of Assets in Single-Employer Plans (29 CFR part Policy Statement, the term ‘‘nonbank the regulation are also published on 4044) prescribes interest assumptions for valuing benefits under terminating covered single-employer subsidiary’’ as used in the Policy PBGC’s Web site (http://www.pbgc.gov). plans for purposes of allocation of assets under PBGC uses the interest assumptions in ERISA section 4044. Those assumptions are 1 Footnote 1: [Reserved] Appendix B to Part 4022 to determine updated quarterly.

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