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. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

60077

Vol. 69, No. 194

Thursday, October 7, 2004

1Pub. L. 104–134, 31001(s), 110 Stat. 1321–373, 

(Apr. 26, 1996). The Provision is codified at 28 

U.S.C. 2461 note.

2Pub. L. 101–410, 104 Stat. 890, (Oct. 5, 1990), 

also codified at 28 U.S.C. 2461 note.

3Section 3(2) of the amended FCPIA Act defines 

a CMP as any penalty, fine, or other sanction that: 

(1) Either is for a specific monetary amount as 

provided by Federal law or has a maximum amount 

provided for by Federal law; (2) is assessed or 

enforced by an agency pursuant to Federal law; and 

(3) is assessed or enforced pursuant to an 

administrative proceeding or a civil action in the 

Federal courts.

4The CPI is published by the Department of 

Labor, Bureau of Statistics, and is available at its 

Web site: http://data.bls.gov/cgi-bin/surveymost.

5 In 2000, NCUA recognized that the rounding 

provision of the FCPIA Act was capable of differing 

interpretations. Since then, the Comptroller General 

has interpreted the rounding requirements of the 

FCPIA Act the same way as NCUA did in 

calculating the 2000 inflation adjustments. Comp. 

Gen. B–290021, 2002 U.S. Comp. Gen. LEXIS 266, 

July 15, 2002.

6The previous inflation adjustments were made 

to 12 U.S.C. 1782. That provision has been 

redesignated as 1782a.

7 ‘‘Any increase determined under this subsection 

shall be rounded to the nearest–*** (3) 

multiple of $1,000 in the case of penalties greater 

than $1,000 but less than or equal to $10,000.’’ 

Section 5(a), FCPIA Act. Therefore, $144.10 is 

rounded to the nearest multiple of $1,000 or to $0.

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 747 

Civil Monetary Penalty Inflation 

Adjustment

AGENCY: National Credit Union 

Administration (NCUA).

ACTION: Final rule.

SUMMARY: Congress, in the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended by the Debt 

Collection Improvement Act of 1996, 

required all federal agencies with the 

authority to impose civil monetary 

penalties (CMPs) to regularly evaluate 

those CMPs to ensure that they continue 

to maintain their deterrent value. In 

order to comply with Congress’ mandate 

to adjust CMPs for inflation at least 

every four years, NCUA is issuing this 

final rule to implement the required 

adjustments to the CMPs authorized by 

the Federal Credit Union Act and other 

relevant laws.

DATES: Effective November 1, 2004.

FOR FURTHER INFORMATION CONTACT:

Allan Meltzer, Associate General 

Counsel, or Jon Canerday, Trial 

Attorney, Office of General Counsel, 

NCUA, 1775 Duke Street, Alexandria, 

Virginia 22314, or telephone (703) 518–

6540.

SUPPLEMENTARY INFORMATION:

A. Background 

The Debt Collection Improvement Act 

of 1996 1 (DCIA) amended the Federal 

Civil Penalties Inflation Adjustment Act 

of 1990 2 (FCPIA Act) to require every 

Federal agency to enact regulations that 

adjust each civil monetary penalty 

(CMP) 3 provided by law under its 

jurisdiction by the rate of inflation 

pursuant to the inflation adjustment 

formula in section 5(b) of the FCPIA 

Act. Each Federal agency was required 

to issue these implementing regulations 

by October 23, 1996, and at least once 

every 4 years thereafter. Section 6 of the 

amended FCPIA Act specifies that 

inflation-adjusted CMPs will only apply 

to violations that occur after the 

effective date of the adjustment. The 

inflation adjustment is based on the 

percentage increase in the Consumer 

Price Index (CPI).4 Specifically, section 

5(b) of the FCPIA Act defines the term 

‘‘cost-of-living adjustment’’ as ‘‘the 

percentage (if any) for each civil 

monetary penalty by which—(1) The 

Consumer Price Index for the month of 

June of the calendar year preceding the 

adjustment, exceeds (2) the Consumer 

Price Index for the month of June of the 

calendar year in which the amount of 

such civil monetary penalty was last set 

or adjusted pursuant to law.’’ 

Furthermore, each CMP that has been 

adjusted for inflation must be rounded 

to a number prescribed by section 5(a) 

of the FCPIA Act.5

The CMPs which NCUA is authorized 

to impose were last adjusted by NCUA 

in either 1996 or 2000. For those CMPs 

that were adjusted in 2000, the current 

adjustment will be the percentage by 

which the CPI for the month of June 

2003 exceeds the CPI for the month of 

June 2000. According to the Bureau of 

Labor Statistics, the CPI for the month 

of June 2000 was 172.4 and the CPI for 

the month of June 2003 was 183.7. The 

percentage by which the 2003 figure 

exceeds the 2000 figure is 6.55 percent. 

Thus, the CMPs that were last adjusted 

in 2000 should be increased by 6.55 

percent to arrive at the new adjusted 

amounts (before required rounding). 

For those CMPs that were adjusted in 

1996, the current adjustment will be the 

percentage by which the CPI for the 

month of June 2003 exceeds the CPI for 

the month of June 1996. According to 

the Bureau of Labor Statistics, the CPI 

for the month of June 1996 was 156.7 

and the CPI for the month of June 2003 

was 183.7. The percentage by which the 

2003 figure exceeds the 1996 figure is 

17.23 percent. The CMPs that were last 

adjusted in 1996 should be increased by 

17.23 percent to arrive at the new 

adjusted amounts (before required 

rounding).

B. Mathematical Calculations of the 

Adjustments 

1. 12 U.S.C. 1782a(a)(3) 

NCUA is authorized to require credit 

unions to periodically provide reports of 

condition. The failure to submit a 

required report or the submission of a 

false or misleading report subjects a 

credit union to three levels of CMPs, 

depending upon the reasons for 

noncompliance. 

Calculation of the Adjustment 

The CMPs authorized by 12 U.S.C. 

1782a(a)(3) were last adjusted by NCUA 

in 2000.6 Therefore, these CMPs should 

be multiplied by 6.55 percent to arrive 

at the new adjusted amounts (before 

required rounding).

The maximum CMP authorized by 12 

U.S.C. 1782a(a)(3) for an inadvertent 

failure to submit a report or the 

inadvertent submission of a false or 

misleading report is $2,000 for each day 

the failure continues or such false or 

misleading information is not corrected. 

After the required adjustment for 

inflation in 2000, the maximum penalty 

was increased to $2,200 for each day. 

Multiplying the current penalty of 

$2,200 by 6.55 percent results in an 

increase of $144.10. When that number 

is rounded as required by the FCPIA 

Act,7 the inflation-adjusted maximum 

remains $2,200.

60078 Federal Register / Vol. 69, No. 194 / Thursday, October 7, 2004 / Rules and Regulations 

8 ‘‘Any increase determined under this subsection 

shall be rounded to the nearest-*** (4) multiple 

of $5,000 in the case of penalties greater than 

$10,000 but less than or equal to $100,000.’’ Section 

5(a), FCPIA Act. Therefore, $1,441 is rounded to the 

nearest multiple of $5,000 or to $0.

9 ‘‘Any increase determined under this subsection 

shall be rounded to the nearest-*** (6) multiple 

of $25,000 in the case of penalties greater than 

$200,000.’’ Section 5(a), FCPIA Act. Therefore, 

$72,050 is rounded to the nearest multiple of 

$75,000 or to $75,000.

10 ‘‘Any increase determined under this 

subsection shall be rounded to the nearest- * * * 

(3) multiple of $1,000 in the case of penalties 

greater than $1,000 but less than or equal to 

$10,000.’’ Section 5(a), FCPIA Act. Therefore, 

$144.10 is rounded to the nearest multiple of $1,000 

or to $0.

11 ‘‘Any increase determined under this 

subsection shall be rounded to the nearest- * * * 

(4) multiple of $5,000 in the case of penalties 

greater than $10,000 but less than or equal to 

$100,000.’’ Section 5(a), FCPIA Act. Therefore, 

$1,441 is rounded to the nearest multiple of $5,000 

or to $0.

12 ‘‘Any increase determined under this 

subsection shall be rounded to the nearest–

* * * (6) multiple of $25,000 in the case of 

penalties greater than $200,000.’’ Section 5(a), 

FCPIA Act. Therefore, $72,050 is rounded to the 

nearest multiple of $75,000 or to $75,000.

13 ‘‘Any increase determined under this 

subsection shall be rounded to the nearest- * * * 

(2) multiple of $100 in the case of penalties greater 

than $100 but less than or equal to $1,000.’’ Section 

5(a), FCPIA Act. Therefore, $7.21 is rounded to the 

nearest multiple of $100 or to $0.

The maximum CMP authorized by 12 

U.S.C. 1782a(a)(3) for a non-inadvertent 

failure to submit a report or the noninadvertent submission of a false or 

misleading report is $20,000 for each 

day the failure continues or such false 

or misleading information is not 

corrected. After the required adjustment 

for inflation in 2000, the maximum 

penalty was increased to $22,000 for 

each day. Multiplying the current 

penalty of $22,000 by 6.55 percent 

results in an increase of $1,441. When 

that number is rounded as required by 

the FCPIA Act,8 the inflation-adjusted 

maximum remains $22,000.

The maximum CMP authorized by 12 

U.S.C. 1782a(a)(3) for a failure to submit 

a report or the submission of a false or 

misleading report done knowingly or 

with reckless disregard is $1,000,000 or 

1 percent of the total assets of the credit 

union, whichever is less, for each day 

the failure continues or such false or 

misleading information is not corrected. 

After the required adjustment for 

inflation in 2000, the maximum penalty 

was increased to $1,100,000 for each 

day. Multiplying the current penalty of 

$1,100,000 by 6.55 percent results in an 

increase of $72,050. When that number 

is rounded as required by the FCPIA 

Act,9 the inflation-adjusted maximum 

becomes $1,175,000 or 1 percent of the 

total assets of the credit union, 

whichever is less, per day.

2. 12 U.S.C. 1782a(d)(2) 

In a provision similar to that 

discussed above, NCUA is authorized to 

require each credit union to provide 

periodic certified statements of the 

amount of insured shares in the credit 

union, as well as to pay required 

deposits into the National Credit Union 

Share Insurance Fund. The failure to 

submit a required certified statement or 

the submission of a false or misleading 

statement subjects a credit union to 

three levels or tiers of CMPs, depending 

upon the reasons for noncompliance. 

Calculation of the Adjustment 

The CMPs authorized by 12 U.S.C. 

1782a(d)(2) were last adjusted by NCUA 

in 2000. Therefore, these CMPs should 

be multiplied by 6.55 percent to arrive 

at the new adjusted amounts (before 

required rounding).

First Tier CMPs 

The maximum CMP authorized by 12 

U.S.C. 1782a(d)(2)(A) for an inadvertent 

failure to timely submit a certified 

statement or an inadvertent submission 

of a false or misleading certified 

statement is $2,000 for each day the 

failure continues or such false or 

misleading information is not corrected. 

After the required adjustment for 

inflation in 2000, the maximum penalty 

was increased to $2,200 for each day. 

Multiplying the current penalty of 

$2,200 by 6.55 percent results in an 

increase of $144.10. When that number 

is rounded as required by the FCPIA 

Act,10 the inflation-adjusted maximum 

remains $2,200.

Second Tier CMPs 

The maximum CMP authorized by 12 

U.S.C. 1782a(d)(2)(B) for a noninadvertent failure to timely submit a 

certified statement, or a non-inadvertent 

submission of a false or misleading 

certified statement, or the failure or 

refusal to pay any required deposit or 

premium for insurance is $20,000 for 

each day the failure continues or such 

false or misleading information is not 

corrected. After the required adjustment 

for inflation in 2000, the maximum 

penalty was increased to $22,000 for 

each day. Multiplying the current 

penalty of $22,000 by 6.55 percent 

results in an increase of $1,441. When 

that number is rounded as required by 

the FCPIA Act,11 the inflation-adjusted 

maximum remains $22,000.

Third Tier CMPs 

The maximum CMP authorized by 12 

U.S.C. 1782a(d)(2)(C) for a failure to 

submit a report or the submission of a 

false or misleading report done 

knowingly or with reckless disregard is 

$1,000,000 or 1 percent of the total 

assets of the credit union, whichever is 

less, for each day the failure continues 

or such false or misleading information 

is not corrected. After the required 

adjustment for inflation in 2000, the 

maximum penalty was increased to 

$1,100,000 for each day. Multiplying the 

current penalty of $1,100,000 by 6.55 

percent results in an increase of 

$72,050. When that number is rounded 

as required by the FCPIA Act,12 the 

inflation-adjusted maximum becomes 

$1,175,000 or 1 percent of the total 

assets of the credit union, whichever is 

less, per day.

3. 12 U.S.C. 1785(e)(3) 

Pursuant to 12 U.S.C. 1785(e)(1), 

NCUA is authorized to promulgate 

regulations to provide minimum 

standards with which each insured 

credit union must comply with respect 

to security devices and procedures to 

discourage robberies, burglaries and 

larcenies and to assist in the 

identification and apprehension of 

persons who commit such acts. A credit 

union that violates such a regulation is 

subject to a CMP for each day the 

violation continues. 

Calculation of the Adjustment 

The CMPs authorized by 12 U.S.C. 

1785(e)(3) were last adjusted by NCUA 

in 2000. Therefore, these CMPs should 

be multiplied by 6.55 percent to arrive 

at the new adjusted amounts (before 

required rounding). 

The maximum CMP authorized by 12 

U.S.C. 1785(e)(3) for non-compliance 

with NCUA security regulations is $100 

for each day the violation continues. 

After the required adjustment for 

inflation in 2000, the maximum penalty 

was increased to $110 for each day. 

Multiplying the current penalty of $110 

by 6.55 percent results in an increase of 

$7.21. When that number is rounded as 

required by the FCPIA Act,13 the 

inflation-adjusted maximum remains 

$110.

4. 12 U.S.C. 1786(k)(2) 

NCUA is authorized to impose three 

levels or tiers of CMPs upon insured 

credit unions or institution-affiliated 

parties for certain conduct. First and 

second tier CMPs were not increased for 

inflation in 2000 because the amount of 

the increase was not large enough as a 

result of the rounding rules. Because 

these CMPs were last adjusted for 

inflation in 1996, they should now be 

increased by 17.23 percent to arrive at 

the new adjusted amounts (before 

Federal Register / Vol. 69, No. 194 / Thursday, October 7, 2004 / Rules and Regulations 60079

14 ‘‘Any increase determined under this 

subsection shall be rounded to the nearest- * * * 

(3) multiple of $1,000 in the case of penalties 

greater than $1,000 but less than or equal to 

$10,000.’’ Section 5(a), FCPIA Act. Therefore, 

$947.65 is rounded to the nearest multiple of $1,000 

or to $1,000.

15 ‘‘Any increase determined under this 

subsection shall be rounded to the nearest- * * * 

(4) multiple of $5,000 in the case of penalties 

greater than $10,000 but less than or equal to 

$100,000.’’ Section 5(a), FCPIA Act. Therefore, 

$4,738.25 is rounded to the nearest multiple of 

$5,000 or to $5,000.

16 ‘‘Any increase determined under this 

subsection shall be rounded to the nearest- * * * 

(6) multiple of $25,000 in the case of penalties 

greater than $200,000.’’ Section 5(a), FCPIA Act. 

Therefore, $76,962.50 is rounded to the nearest 

multiple of $25,000 or to $75,000.

17 ‘‘Any increase determined under this 

subsection shall be rounded to the nearest- * * * 

(2) multiple of $100 in the case of penalties greater 

than $100 but less than or equal to $1,000.’’ Section 

5(a), FCPIA Act. Therefore, $25.22 is rounded to the 

nearest multiple of $100 or to $0.

18 ‘‘Any increase determined under this 

subsection shall be rounded to the nearest- * * * 

(5) multiple of $10,000 in the case of penalties 

greater than $100,000 but less than or equal to 

$200,000.’’ Section 5(a), FCPIA Act. Therefore, 

$7,205 is rounded to the nearest multiple of $10,000 

or to $10,000.

required rounding). Third tier CMPs 

were increased for inflation in 2000 and 

therefore, should now be increased by 

6.55 percent (before required rounding). 

First Tier CMPs 

First tier CMPs, 12 U.S.C. 

1786(k)(2)(A), may be imposed for the 

violation of any law or regulation, the 

violation of certain final orders or 

temporary orders, the violation of 

conditions imposed in writing by the 

NCUA Board, or the violation of any 

written agreement between the credit 

union and NCUA. The statute provides 

that first tier CMPs shall not be more 

than $5,000 for each day the violation 

continues. After the required adjustment 

for inflation in 1996, the maximum 

penalty was increased to $5,500 for each 

day. Multiplying the current penalty of 

$5,500 by 17.23 percent results in an 

increase of $947.65. When that number 

is rounded as required by the FCPIA 

Act,14 the inflation-adjusted maximum 

for a first tier CMP becomes $6,500.

Second Tier CMPs

Second tier CMPs, 12 U.S.C. 

1786(k)(2)(B), are authorized for 

violations described in first tier CMPs, 

the reckless engaging in an unsafe or 

unsound practice in conducting the 

affairs of a credit union, or the breach 

of any fiduciary duty, when the 

violation, practice or breach is part of a 

pattern of misconduct, or causes or is 

likely to cause more than a minimal loss 

to the credit union, or results in 

pecuniary gain or other benefit. The 

statute provides a maximum second tier 

CMP of $25,000 for each day the 

violation, practice or breach continues. 

After the required 1996 adjustment for 

inflation, the maximum penalty was 

increased to $27,500 per day. 

Multiplying the current penalty of 

$27,500 by 17.23 percent results in an 

increase of $4,738.25. When that 

number is rounded as required by the 

FCPIA Act,15 the inflation-adjusted 

maximum for a second tier CMP 

becomes $32,500.

Third Tier CMPs 

Third tier CMPs, 12 U.S.C. 

1786(k)(2)(C), may be imposed for any 

of the acts described in second tier 

CMPs that cause a substantial loss to the 

credit union or a substantial pecuniary 

gain or other benefit. The amount of 

third tier CMPs depends upon the status 

of the respondent required to pay the 

CMP, 12 U.S.C. 1786(k)(2)(D). For a 

person other than an insured credit 

union, under the statute, the maximum 

third tier CMP is $1,000,000 for each 

day the violation, practice or breach 

continues. For an insured credit union, 

the statute provides a daily maximum 

CMP of the lesser of $1,000,000 or 1 

percent of the total assets of the credit 

union. In 2000, the maximum CMP for 

a person other than an insured credit 

union was increased for inflation to 

$1,175,000 per day. At the same time, 

the maximum CMP for an insured credit 

union was increased to the lesser of 

$1,175,000 or 1 percent of the total 

assets of the credit union. Multiplying 

the current penalty of $1,175,000 by 

6.55 percent results in an increase of 

$76,962.50. When that number is 

rounded as required by the FCPIA Act,16

the new maximum inflation-adjusted 

third tier CMP becomes $1,250,000.

5. 42 U.S.C. 4012a(f) 

Pursuant to 42 U.S.C. 4012a(f), NCUA 

is authorized to impose CMPs against a 

credit union that is found to have a 

pattern or practice of committing certain 

specified actions in violation of the 

National Flood Insurance Program. 

Calculation of the Adjustment 

The CMPs authorized by 42 U.S.C. 

4012a(f) were last adjusted by NCUA in 

2000. Therefore, these CMPs should be 

multiplied by 6.55 percent to arrive at 

the new adjusted amounts (before 

required rounding). 

The maximum CMP authorized by 42 

U.S.C. 4012a(f) is $350 for each 

violation, up to a maximum of $100,000 

per calendar year. After the required 

adjustments for inflation in 2000, the 

maximum penalty was increased to 

$385 for each day, up to a maximum of 

$110,000 per calendar year. Multiplying 

the current penalty of $385 by 6.55 

percent results in an increase of $25.22. 

When that number is rounded as 

required by the FCPIA Act,17 the 

inflation-adjusted maximum remains 

$385. Multiplying the current annual 

maximum of $110,000 by 6.55 percent 

results in an increase of $7,205. When 

that number is rounded as required by 

the FCPIA Act,18 the inflation-adjusted 

annual maximum penalty becomes 

$120,000 per calendar year.

The NCUA Board now adopts this 

final rule to adjust the forgoing CMPs 

for the rate of inflation, as required by 

the FCPIA Act. As provided in the final 

rule, the revised CMP amounts will only 

apply to violations that occur after the 

effective date of the final rule. 

C. Regulatory Procedures 

Final Rule Under the Administrative 

Procedures Act 

The FCPIA Act requires adjustments 

of CMPs for inflation to occur at least 

every four years. Additionally, the 

FCPIA Act provides federal agencies 

with no discretion in the adjustment of 

CMPs for inflation. Thus, NCUA is 

unable to vary the amount of the 

adjustments to reflect any views or 

suggestions provided by commenters. 

Further, the regulation is ministerial 

and technical. For all of these reasons, 

the NCUA Board finds good cause to 

determine that public notice and 

comment for this new regulation is 

unnecessary, impractical and contrary 

to the public interest, pursuant to the 

Administrative Procedure Act (APA), 5 

U.S.C. 553(b)(3)(B). 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

requires NCUA to prepare an analysis to 

describe any significant economic 

impact a proposed rule may have on a 

substantial number of small credit 

unions (those under ten million dollars 

in assets). The proposed rule would not 

have a significant economic impact on 

a substantial number of small credit 

unions, and, therefore, a regulatory 

flexibility analysis is not required. 

Paperwork Reduction Act 

NCUA has determined that the 

proposed rule would not increase 

paperwork requirements under the 

Paperwork Reduction Act of 1995 and 

regulations of the Office of Management 

and Budget. 

Executive Order 13132 

Executive Order 13132 encourages 

independent regulatory agencies to 

consider the impact of their regulatory 

60080 Federal Register / Vol. 69, No. 194 / Thursday, October 7, 2004 / Rules and Regulations 

actions on state and local interests. In 

adherence to fundamental federalism 

principles, NCUA, an independent 

regulatory agency as defined in 44 

U.S.C. 3502(5), voluntarily complies 

with the Executive Order. This final rule 

will apply to all federally-insured credit 

unions, but it will 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. NCUA has 

determined the final rule does not 

constitute a policy that has federalism 

implications for purposes of the 

Executive Order. 

The Treasury and General Government 

Appropriations Act, 1999—Assessment 

of Federal Regulations and Policies on 

Families 

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, Pub. L. 105–

277, 112 Stat. 2681 (1998). 

Small Business Regulatory Enforcement 

Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act of 1996 (Pub. 

L. 104–21) provides generally for 

congressional review of agency rules. A 

reporting requirement is triggered in 

instances where NCUA issues a final 

rule as defined by Section 551 of the 

Administrative Procedures Act. 5 U.S.C. 

551. The Office of Management and 

Budget has reviewed this rule and has 

determined that for purposes of the 

Small Business Regulatory Enforcement 

Fairness Act of 1996, it is not a major 

rule.

List of Subjects in 12 CFR Part 747 

Credit unions, Civil monetary 

penalties.

By the National Credit Union 

Administration Board on September 27, 

2004. 

Mary Rupp, 

Secretary of the Board.

■ Accordingly, the NCUA amends 12 

CFR part 747 as follows:

PART 747—ADMINISTRATIVE 

ACTIONS, ADJUDICATIVE HEARINGS, 

RULES OF PRACTICE AND 

PROCEDURE, AND INVESTIGATIONS

■ 1. The authority citation for part 747 

continues to read as follows:

Authority: 12 U.S.C. 1766, 1782, 1784, 

1785, 1786, 1787; 42 U.S.C. 4012a; Pub. L. 

101–410; Pub. L. 104–134.

■ 2. Part 747, Subpart K is revised to read 

as follows:

Subpart K—Inflation Adjustment of 

Civil Monetary Penalties

§ 747.1001 Adjustment of civil money 

penalties by the rate of inflation. 

(a) NCUA is required by the Federal 

Civil Penalties Inflation Adjustment Act 

of 1990 (Public Law 101–410, 104 Stat. 

890, as amended (28 U.S.C. 2461 note)) 

to adjust the maximum amount of each 

civil money penalty within its 

jurisdiction by the rate of inflation. The 

following chart displays those 

adjustments, as calculated pursuant to 

the statute:

U.S. Code citation CMP description New maximum amount 

(1) 12 U.S.C. 1782(a)(3) .................................... Inadvertent failure to submit a report or the inadvertent submission of a false or misleading report.$22,000. 

(2) 12 U.S.C. 1782(a)(3) .................................... Non-inadvertent failure to submit a report or 

the non-inadvertent submission of a false or 

misleading report.

$22,000. 

(3) 12 U.S.C. 1782(a)(3) .................................... Failure to submit a report or the submission of 

a false or misleading report done knowingly 

or with reckless disregard.

$1,175,000 or 1 percent of the total assets of 

the credit union, whichever is less. 

(4) 12 U.S.C. 1782(d)(2)(A) ................................ First tier ............................................................ $2,200. 

(5) 12 U.S.C. 1782(d)(2)(B) ................................ Second tier ....................................................... $22,000. 

(6) 12 U.S.C. 1782(d)(2)(C) ............................... Third tier ........................................................... $1,175,000 or 1 percent of the total assets of 

the credit union, whichever is less. 

(7) 12 U.S.C. 1785(e)(3) .................................... Non-compliance with NCUA security regulations.$110. 

(8) 12 U.S.C. 1786(k)(2)(A) ................................ First tier ............................................................ $6,500. 

(9) 12 U.S.C. 1786(k)(2)(B) ................................ Second tier ....................................................... $32,500. 

(10) 12 U.S.C. 1786(k)(2)(C) .............................. Third tier ........................................................... For a person other than an insured credit 

union: $1,250,000; For an insured credit 

union $1,250,000 or 1 percent of the total 

assets of the credit union, whichever is 

less. 

(11) 42 U.S.C. 4012a(f) ...................................... Per violation ..................................................... $385 

Per calendar year ............................................ $120,000. 

Federal Register / Vol. 69, No. 194 / Thursday, October 7, 2004 / Rules and Regulations 60081

(b) The adjustments displayed in 

paragraph (a) of this section apply to 

acts occurring beginning on November 

1, 2004.

[FR Doc. 04–22537 Filed 10–6–04; 8:45 am] 

BILLING CODE 7535–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. 2003–CE–40–AD; Amendment 

39–13795; AD 2004–19–01] 

RIN 2120–AA64 

Airworthiness Directives; Cessna 

Aircraft Company 120, 140, 140A, 150, 

F150, 170, 172, F172, FR172, P172D, 

175, 177, 180, 182, 185, A185E, 190, 

195, 206, P206, U206, TP206, TU206, 

207, T207, 210, T210, 336, 337, and 

T337 Series Airplanes

AGENCY: Federal Aviation 

Administration (FAA), DOT.

ACTION: Final rule; correction.

SUMMARY: This document makes a 

correction to Airworthiness Directive 

(AD) 2004–19–04, which was published 

in the Federal Register on September 

17, 2004 (69 FR 55943), and applies to 

certain Cessna Aircraft Company 

(Cessna) 120, 140, 140A, 150, F150, 170, 

172, F172, FR172, P172D, 175, 177, 180, 

182, 185, A185E, 190, 195, 205, 205A, 

206, P206, P206E, TP206A, TU206, 

TU206E, U206, U206E, 207, T207, 210, 

T210, 336, 337, and T337 series 

airplanes. We incorrectly referenced the 

AD number as AD 2004–19–04. The 

correct AD number is 2004–19–01. This 

action corrects the regulatory text.

DATES: The effective date of this AD 

remains November 1, 2004.

FOR FURTHER INFORMATION CONTACT: Gary 

D. Park, Aerospace Engineer, FAA, 

Wichita Aircraft Certification Office, 

1801 Airport Road, Room 100, MidContinent Airport, Wichita, Kansas 

67209; telephone: (316) 946–4123; 

facsimile: (316) 946–4107.

SUPPLEMENTARY INFORMATION: 

Discussion 

On September 8, 2004, FAA issued 

AD 2004–19–04, Amendment 39–13795 

(69 FR 55943, September 17, 2004), 

which applies to certain Cessna 120, 

140, 140A, 150, F150, 170, 172, F172, 

FR172, P172D, 175, 177, 180, 182, 185, 

A185E, 190, 195, 205, 205A, 206, P206, 

P206E, TP206A, TU206, TU206E, U206, 

U206E, 207, T207, 210, T210, 336, 337, 

and T337 series airplanes. This AD 

supersedes AD 86–26–04 with a new 

AD that requires you to inspect and, if 

necessary, modify the pilot/co-pilot 

upper shoulder harness adjusters that 

have certain Cessna accessory kits 

incorporated. 

Need for the Correction 

The FAA incorrectly referenced the 

AD number as 2004–19–04. The correct 

AD number is AD 2004–19–01. This 

correction is needed to ensure that the 

correct AD number is entered in the 

logbook and to eliminate 

misunderstanding in the field.

Correction of Publication

■ Accordingly, the publication of 

September 17, 2004 (69 FR 55943), of 

Amendment 39–13795; AD 2004–19–04, 

which was the subject of FR Doc. 04–

20774, is corrected as follows:

§ 39.13 [Corrected]

■ On page 55945, in section 39.13 

[Amended], replace 2004–19–04 with 

2004–19–01. 

Action is taken herein to correct this 

reference in AD 2004–19–04 and to add 

this AD correction to section 39.13 of 

the Federal Aviation Regulations (14 

CFR 39.13). 

The effective date remains November 

1, 2004.

Issued in Kansas City, Missouri, on 

September 23, 2004. 

David R. Showers, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service.

[FR Doc. 04–21814 Filed 10–6–04; 8:45 am] 

BILLING CODE 4910–13–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. 97–NM–235–AD; Amendment 

39–12861; AD 2002–16–22] 

RIN 2120–AA64 

Airworthiness Directives; Boeing 

Model 727 Series Airplanes Modified in 

Accordance With Supplemental Type 

Certificate SA1444SO, SA1509SO, 

SA1543SO, or SA1896SO

AGENCY: Federal Aviation 

Administration, DOT.

ACTION: Final rule; correction.

SUMMARY: This document corrects an 

error that appeared in airworthiness 

directive (AD) 2002–16–22 (final rule, 

correction) that was published in the 

Federal Register on August 16, 2004 (69 

FR 50299). The error resulted in an 

incorrect reference to certain 

supplemental type certificates. This AD 

is applicable to certain Boeing Model 

727 series airplanes that have been 

converted from a passenger- to a cargocarrying (‘‘freighter’’) configuration. 

This AD requires, among other actions, 

installation of a fail-safe hinge, 

redesigned main deck cargo door 

warning and power control systems, and 

9g crash barrier.

DATES: Effective September 19, 2002.

FOR FURTHER INFORMATION CONTACT: M. 

Hassan Amani, Aerospace Engineer, 

Airframe Branch, ACE–117A, FAA, 

Atlanta Aircraft Certification Office, 

One Crown Center, 1895 Phoenix 

Boulevard, suite 450, Atlanta, Georgia 

30349; telephone (770) 703–6080; fax 

(770) 703–6097.

SUPPLEMENTARY INFORMATION:

Airworthiness Directive (AD) 2002–16–

22, amendment 39–12861, applicable to 

certain Boeing Model 727 series 

airplanes that have been converted from 

a passenger- to a cargo-carrying 

(‘‘freighter’’) configuration, was 

published in the Federal Register on 

August 15, 2002 (67 FR 53434). That AD 

requires, among other actions, 

installation of a fail-safe hinge, 

redesigned main deck cargo door 

warning and power control systems, and 

9g crash barrier. 

On August 16, 2004, we issued a final 

rule, correction (69 FR 50299, August 

16, 2004), to AD 2002–16–22. The final 

rule, correction corrects an error that 

resulted in an incorrect reference to a 

supplemental type certificate. As 

published, the title of final rule, 

correction states ‘‘Boeing Model 727 

Series Airplanes Modified with 

Supplemental Type Certificate 

SA1767S0 or SA1768SO.’’ However, the 

correct applicable supplemental type 

certificates (STC) are SA1444SO, 

SA1509SO, SA1543SO, or SA1896SO, 

as specified in AD 2002–16–22. 

Since no other part of the regulatory 

information has been changed, the final 

rule is not being republished in the 

Federal Register. 

The effective date of this AD remains 

September 19, 2002.

§ 39.13 [Corrected]

■ On page 50299, in the second column, 

the title of AD 2002–16–22 is corrected 

to read as follows:

* * * * *

Airworthiness Directives; Boeing 

Model 727 Series Airplanes Modified in 

Accordance with Supplemental Type 

Certificate SA1444SO, SA1509SO, 

SA1543SO, or SA1896SO.

* * * * *