Federal Register / Vol. 80, No. 199 / Thursday, October 15, 2015 / Rules and Regulations 61981 

This interpretive rule is issued pursuant to these 

statutory mandates. 

today’s Federal Register, HUD provides 

specific POCs at HUD’s Home 

Ownership Centers (HOCs) that holders 

of liens on HUD single family property 

may use to present requests for 

payment. The publication and use of 

these POCs by the public should help 

obviate the need for litigation to enforce 

non-payment of liens against FHA 

properties. This interpretive rule 

provides the process for initiating suit 

against FHA if for some reason payment 

is not made and the taxing authority or 

other entity has a lien that it seeks to 

foreclose. 

B. HOC POCs 

Ancillary to the interpretive rule, 

HUD is providing POCs in each of its 

four HOCs to receive tax bills and 

similar billings. Each HOC oversees on 

average 13 states/jurisdictions for FHA 

activities and has an REO division that 

handles the day-to-day oversight of 

FHA’s acquired properties. In most 

cases, having a known POC to send 

billings should obviate the need to have 

to bring suit against HUD to levy on a 

property. 

C. Jurisdiction 

In the unlikely event it becomes 

necessary for a taxing authority or HOA, 

CA or special assessment entity to 

proceed against HUD’s property, this 

interpretive rule explains the exclusive 

federal jurisdiction for such an action. 

Section 1 title I, of the NHA provides a 

limited waiver of sovereign immunity. 

Under that provision: ‘‘[T]he Secretary 

shall, in carrying out the functions of 

this title and titles II, III . . . be 

authorized, in his official capacity, to 

sue and be sued in any court of 

competent jurisdiction, State or 

Federal.’’ (Underlining is provided for 

emphasis). This section was added to 

the NHA by the Banking Act of 1935, 

sec. 334, Title III, Public Law 74–305, 49 

Stat. 684, approved August 23, 1935). In 

1972, Congress passed the Quiet Title 

Act (QTA) (Pub. L. 92–562, 86 Stat. 

1176). The QTA made two changes to 

Title 28 of the United States Code, 

which title of the code governs the 

federal judicial system and judiciary 

procedures. First, the QTA created a 

new 28 U.S.C. 2409a, entitled ‘‘Real 

Property Quiet Title Actions.’’ 

Paragraph (a) of section 2409a states, 

‘‘The United States may be named as a 

party defendant in a civil action under 

this section to adjudicate a disputed 

title to real property in which the 

United States claims an interest.’’ 

Second, QTA amended 28 U.S.C. 1346, 

entitled ‘‘United States as defendant’’ by 

adding a new paragraph (f), which 

states, ‘‘The district courts shall have 

exclusive original jurisdiction of civil 

actions under section 2409a to quiet 

title to an estate or interest in property 

in which an interest is claimed by the 

United States.’’ 

The Supreme Court succinctly 

explained the lack of jurisdiction in 

state courts and the exclusivity of 

federal court jurisdiction in QTA 

actions in California v. Arizona, 440 

U.S. 59 (1979): 

[T]he intent of Congress seems reasonably 

clear. The congressional purpose was simply 

to confine jurisdiction to the federal courts 

and to exclude the courts of the States, which 

otherwise might be presumed to have 

jurisdiction over quiet-title suits against the 

United States, once its sovereign immunity 

had been waived. . . . We find, therefore, 

that section 1346(f), by vesting ‘exclusive 

original jurisdiction’ of quiet title actions 

against the United States in the federal 

district courts did no more than assure that 

such jurisdiction was not conferred upon the 

courts of any State. 

Federal courts have consistently held 

that 28 U.S.C. 2409a authorizes owners 

of an interest in real property in which 

an agency such as HUD holds an 

interest, including an ownership 

interest, to bring suit to foreclose the 

government’s interest in the property. 

The QTA applies to lawsuits involving 

interests that could cloud title, not just 

traditional quiet title actions, as the 

terminology of the QTA by its terms 

includes any adjudication of a 

‘‘disputed title’’ to real property. See, 

United States v. Bedford Associates, 657 

F. 2d 1300, 1316 (2d Cir. 1981), cert. 

den. 456 U.S. 914 (1982); Robinson v. 

United States, 586 F. 3d 683, 687 (9th 

Cir. 2009); Delta Sav. & Loan Ass’n. v. 

I.R.S., 847 F. 2d 248, 249 n. 1 (5th Cir. 

1988); George v. United States, 672 F. 

3d 942 (10th Cir. 2012), cert. den. 133 

S. Ct. 432, __ U.S. __, 2012 U.S. LEXIS 

7933 (2012). 

III. This Interpretive Rule 

In order to have a uniform process 

that both the public and HUD can use, 

and which will ensure that HUD can act 

in a timely, accurate, and consistent 

manner to protect properties that are 

assets of the MMIF, it is HUD’s 

interpretation that the sue and be sued 

clause in 12 U.S.C. 1702, specifically 

the words ‘‘court of competent 

jurisdiction’’ means, for purposes of 

foreclosing tax, HOA, CA, special 

assessment (i.e., for sidewalks, septic or 

water systems and the like), or similar 

fees and assessments that result in liens 

on HUD properties, the United States 

District Court in the jurisdiction where 

the HUD property that is to be the 

subject of the lien foreclosure is situated 

or in Washington, DC. This 

interpretation is based on the provisions 

of the QTA, and the Supreme Court’s 

analysis of the same in California v. 

Arizona and similar cases. 

As the exclusive venue for foreclosing 

a lien on HUD-owned property is a 

United States District Court, the Federal 

Rules of Civil Procedure (FRCP) must be 

followed. Rule 4(i) sets out the 

procedures to serve Federal agencies. 

Under that rule, the head of the agency 

or his or her designee must be served, 

as well as the United States Attorney 

General and the United States Attorney 

in the applicable district. HUD, by 

separate notice in today’s Federal 

Register, pursuant to previously 

published delegations of authority, 

authorizes Regional Counsel in each of 

HUD’s 10 Regional Counsel Offices to 

redelegate to staff within their 

operational jurisdictions the authority to 

accept service of process in those cases 

where FHA owns a property, a taxing 

authority, HOA, CA, or other entity 

purports to bring suit due to a 

nonpayment of taxes or other fees and 

assessments, and the entity seeks to 

foreclose its lien in order to obtain title 

to the property. 

IV. Conclusion 

Accordingly, HUD interprets the ‘‘sue 

and be sued’’ clause of section 1 of title 

1 of the NHA as requiring suit to be 

brought exclusively in the Federal 

District Court where the property is 

located (or in the Federal District Court 

for the District of Columbia) if a 

lienholder wishes to enforce a lien 

against a single family property owned 

by HUD as the result of the payment of 

a mortgage insurance claim. 

Dated: October 7, 2015. 

Helen R. Kanovsky, 

General Counsel. 

[FR Doc. 2015–26160 Filed 10–14–15; 8:45 am] 

BILLING CODE 4210–67–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Part 4022 

Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions 

for Paying Benefits 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: This final rule amends the 

Pension Benefit Guaranty Corporation’s 

regulation on Benefits Payable in 


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61982 Federal Register / Vol. 80, No. 199 / Thursday, October 15, 2015 / Rules and Regulations 

1Appendix B to PBGC’s regulation on Allocation 

of Assets in Single-Employer Plans (29 CFR part 

4044) prescribes interest assumptions for valuing 

benefits under terminating covered single-employer 

plans for purposes of allocation of assets under 

ERISA section 4044. Those assumptions are 

updated quarterly. 

Terminated Single-Employer Plans to 

prescribe interest assumptions under 

the regulation for valuation dates in 

November 2015. The interest 

assumptions are used for paying 

benefits under terminating singleemployer plans covered by the pension 

insurance system administered by 

PBGC. 

DATES: Effective November 1, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Catherine B. Klion (Klion.Catherine@

pbgc.gov), Assistant General Counsel for 

Regulatory Affairs, Pension Benefit 

Guaranty Corporation, 1200 K Street 

NW., Washington, DC 20005, 202–326– 

4024. (TTY/TDD users may call the 

Federal relay service toll-free at 1–800– 

877–8339 and ask to be connected to 

202–326–4024.) 

SUPPLEMENTARY INFORMATION: PBGC’s 

regulation on Benefits Payable in 

Terminated Single-Employer Plans (29 

CFR part 4022) prescribes actuarial 

assumptions—including interest 

assumptions—for paying plan benefits 

under terminating single-employer 

plans covered by title IV of the 

Employee Retirement Income Security 

Act of 1974. The interest assumptions in 

the regulation are also published on 

PBGC’s Web site (http://www.pbgc.gov). 

PBGC uses the interest assumptions in 

appendix B to part 4022 to determine 

whether a benefit is payable as a lump 

sum and to determine the amount to 

pay. Appendix C to part 4022 contains 

interest assumptions for private-sector 

pension practitioners to refer to if they 

wish to use lump-sum interest rates 

determined using PBGC’s historical 

methodology. Currently, the rates in 

appendices B and C of the benefit 

payment regulation are the same. 

The interest assumptions are intended 

to reflect current conditions in the 

financial and annuity markets. 

Assumptions under the benefit 

payments regulation are updated 

monthly. This final rule updates the 

benefit payments interest assumptions 

for November 2015.1

The November 2015 interest 

assumptions under the benefit payments 

regulation will be 1.25 percent for the 

period during which a benefit is in pay 

status and 4.00 percent during any years 

preceding the benefit’s placement in pay 

status. In comparison with the interest 

assumptions in effect for October 2015, 

these interest assumptions are 

unchanged. 

PBGC has determined that notice and 

public comment on this amendment are 

impracticable and contrary to the public 

interest. This finding is based on the 

need to determine and issue new 

interest assumptions promptly so that 

the assumptions can reflect current 

market conditions as accurately as 

possible. 

Because of the need to provide 

immediate guidance for the payment of 

benefits under plans with valuation 

dates during November 2015, PBGC 

finds that good cause exists for making 

the assumptions set forth in this 

amendment effective less than 30 days 

after publication. 

PBGC has determined that this action 

is not a ‘‘significant regulatory action’’ 

under the criteria set forth in Executive 

Order 12866. 

Because no general notice of proposed 

rulemaking is required for this 

amendment, the Regulatory Flexibility 

Act of 1980 does not apply. See 5 U.S.C. 

601(2). 

List of Subjects in 29 CFR Part 4022 

Employee benefit plans, Pension 

insurance, Pensions, Reporting and 

recordkeeping requirements. 

In consideration of the foregoing, 29 

CFR part 4022 is amended as follows: 

PART 4022—BENEFITS PAYABLE IN 

TERMINATED SINGLE-EMPLOYER 

PLANS 

■ 1. The authority citation for part 4022 

continues to read as follows: 

Authority: 29 U.S.C. 1302, 1322, 1322b, 

1341(c)(3)(D), and 1344. 

■ 2. In appendix B to part 4022, Rate Set 

265 is added to the table to read as 

follows: 

Appendix B to Part 4022—Lump Sum 

Interest Rates for PBGC Payments 

* * * * * 

Rate set 

For plans with a 

valuation date Immediate 

annuity rate 

(percent) 

Deferred annuities 

(percent) 

On or after Before i1 i2 i3 n1 n2

*******

265 11–1–15 12–1–15 1.25 4.00 4.00 4.00 7 8 

■ 3. In appendix C to part 4022, Rate Set 

265 is added to the table to read as 

follows: 

Appendix C to Part 4022—Lump Sum 

Interest Rates for Private-Sector 

Payments 

* * * * * 

Rate set 

For plans with a 

valuation date Immediate 

annuity rate 

(percent) 

Deferred annuities 

(percent) 

On or after Before i1 i2 i3 n1 n2

*******

265 11–1–15 12–1–15 1.25 4.00 4.00 4.00 7 8 


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Federal Register / Vol. 80, No. 199 / Thursday, October 15, 2015 / Rules and Regulations 61983 

Issued in Washington, DC, on this 7th day 

of October 2015. 

Judith Starr, 

General Counsel, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2015–26241 Filed 10–14–15; 8:45 am] 

BILLING CODE 7709–02–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2015–0809] 

RIN 1625–AA00 

Safety Zone, Atlantic Intracoastal 

Waterway; Oak Island, NC 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary safety zone on 

the navigable waters of the Atlantic 

Intracoastal Waterway near Oak Island, 

North Carolina. This action is necessary 

to provide the safety of mariners on 

navigable waters due to the transfer of 

power cables across the Atlantic 

Intracoastal Waterway. Entry into or 

movement within the safety zone during 

the enforcement period is prohibited 

without approval of the Captain of the 

Port. 

DATES: This rule is effective without 

actual notice from October 15, 2015 

until October 20, 2015. For the purposes 

of enforcement, actual notice will be 

used from October 12, 2015 until 

October 15, 2015. 

ADDRESSES: Documents mentioned in 

this preamble are part of docket [USCG– 

2015–0809]. To view documents 

mentioned in this preamble as being 

available in the docket, go to http://

www.regulations.gov, type the docket 

number in the ‘‘SEARCH’’ box and click 

‘‘SEARCH.’’ Click on Open Docket 

Folder on the line associated with this 

rulemaking. You may also visit the 

Docket Management Facility in Room 

W12–140 on the ground floor of the 

Department of Transportation West 

Building, 1200 New Jersey Avenue SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

email LT Derek J. Burrill, Waterways 

Management Division Chief, Sector 

North Carolina, Coast Guard; telephone 

(910) 772–2230, email Derek.J.Burrill@

uscg.mil. If you have questions on 

viewing or submitting material to the 

docket, call Cheryl Collins, Program 

Manager, Docket Operations, telephone 

(202) 366–9826. 

SUPPLEMENTARY INFORMATION: 

Table of Acronyms 

DHS Department of Homeland Security 

FR Federal Register 

NPRM Notice of Proposed Rulemaking 

A. Regulatory History and Information 

The Coast Guard is issuing this 

temporary final rule without prior 

notice and opportunity to comment 

pursuant to authority under section 4(a) 

of the Administrative Procedure Act 

(APA) (5 U.S.C. 553(b)). This provision 

authorizes an agency to issue a rule 

without prior notice and opportunity to 

comment when the agency for good 

cause finds that those procedures are 

‘‘impracticable, unnecessary, or contrary 

to the public interest.’’ Under 5 U.S.C. 

553(b)(B), the Coast Guard finds that 

good cause exists for not publishing a 

notice of proposed rulemaking (NPRM) 

with respect to this rule because final 

project details were not submitted to the 

Coast Guard until September 4, 2015. As 

such, it’s impractical to provide a full 

comment period due to lack of time. 

Delaying the effective date for comment 

would be contrary to the public interest, 

since immediate action is needed to 

ensure protection of persons and vessels 

transiting the area. 

For similar reasons, under 5 U.S.C. 

553(d)(3), the Coast Guard finds that 

good cause exists for making this rule 

effective less than 30 days after 

publication in the Federal Register. Due 

to the need for immediate action, the 

restriction of vessel traffic is necessary 

to protect life, property and the 

environment. Therefore, a 30-day notice 

is impracticable. The Coast Guard will 

provide advance notifications to users 

via marine information broadcasts and 

local notice to mariners. 

B. Basis and Purpose 

The legal basis for this rule is 33 

U.S.C. 1231; 46 U.S.C. Chapter 701, 

3306, 3703; 50 U.S.C. 191, 195; 33 CFR 

1.05–1, 6.04–1, 6.04–6, 160.5; Public 

Law 107–295, 116 Stat. 2064; and DHS 

Delegation No. 0170.1. Under these 

authorities the Coast Guard may 

establish a safety zone in defined water 

areas that are determined to have 

hazardous conditions and in which 

vessel traffic can be regulated in the 

interest of safety. 

On October 12, 13, 19, and 20, 2015 

Coastal Power will be installing power 

cables that will run across the Atlantic 

Intracoastal Waterway at latitude 

33°55′11′′ N, longitude 078°03′24′′ W in 

Oak Island, North Carolina. To facilitate 

the safety of mariners and the public, 

the U.S Coast Guard will require 

temporary closures of the channel on 

October 12, 13, 19, 20, 2015. 

C. Discussion of the Final Rule 

The Coast Guard is establishing a 

temporary safety zone on the navigable 

waters of the Atlantic Intracoastal 

Waterway within a 100 yard radius of 

latitude 33°55′11′′ N, longitude 

078°03′24′′ W in Oak Island, North 

Carolina. This safety zone will be 

established in the interest of public 

safety due to the transfer of power 

cables across the Atlantic Intracoastal 

Waterway. The regulated area for this 

safety zone includes all the water of the 

Atlantic Intracoastal Waterway within a 

100 yard radius of latitude 33°55′11′′ N, 

longitude 078°03′24′′ W, a position 

located north of the Oak Island Fixed 

Bridge in Oak Island, North Carolina. 

This rule will be enforced on October 

12, 13, 19, 20, 2015 during the times of 

09:00 a.m. to 12:00 p.m. and 01:00 p.m. 

to 04:00 p.m. Vessels authorized by the 

Captain of the Port or his/her 

Representative to enter or remain in the 

safety zone during the above listed time 

frame must have a height clearance of 

30 feet and greater and are required to 

notify on scene Coastal Power and 

Electric work boats at a minimum of 40 

minutes prior to transiting the area on 

VHF marine radio channels 13 or 16 or 

via phone at 910–512–1645. 

Except for vessels authorized by the 

Captain of the Port or his/her 

Representative, no person or vessel may 

enter or remain in the safety zone 

during the time frame listed. The 

Captain of the Port will give notice of 

the enforcement of the safety zone by all 

appropriate means to provide the widest 

dissemination of notice among the 

affected segments of the public. This 

will include publication in the Local 

Notice to Mariners and Marine 

Information Broadcasts. 

D. Regulatory Analyses 

We developed this rule after 

considering numerous statutes and 

executive orders related to rulemaking. 

Below we summarize our analyses 

based on these statutes and executive 

orders. 

1. Regulatory Planning and Review 

This rule is not a significant 

regulatory action under section 3(f) of 

Executive Order 12866, Regulatory 

Planning and Review, as supplemented 

by Executive Order 13563, Improving 

Regulation and Regulatory Review, and 

does not require an assessment of 

potential costs and benefits under 


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