Federal Register / Vol. 78, No. 211 / Thursday, October 31, 2013 / Rules and Regulations 65151 

must take the results of the stress tests 

conducted under paragraphs (c)(2)(i)(A) 

and (c)(2)(ii) of this section (including 

any revisions required under paragraph 

(e)(3) of this section) as well as OSMO’s 

assessment into account in making 

changes, as appropriate, to Farmer 

Mac’s capital structure (including the 

level and composition of capital); its 

exposures, concentrations, and risk 

positions; any plans for recovery and 

resolution; and to improve overall risk 

management. Farmer Mac must 

document in writing its actions in 

response to the stress tests and 

assessment, as well as decisions not to 

take actions in response to any issues 

raised in the assessment. 

§ 652.62 Notice to OSMO of capital 

distributions. 

(a) Farmer Mac must provide OSMO 

with notice 15 calendar days prior to a 

board consideration of a declaration of 

a capital distribution or any material 

changes in capital distributions policies. 

(b) Except as provided in paragraph 

(c), notice under paragraph (a) of this 

section is not required with respect to 

capital distributions set forth (i.e., 

specifically scheduled as to amount and 

timing along with a discussion of the 

planned distribution) in the capital plan 

or a regular periodic payment of 

dividends on common stock and 

preferred stock when there is no change 

in the amount of payment per share 

from the previous period. 

(c) In the event that OSMO 

determines a capital plan has not 

adequately taken into account OSMO’s 

assessment as required under 

§ 652.61(f), the exception described in 

paragraph (b) of this section shall not 

apply, and Farmer Mac must provide 

notification of any and all capital 

distributions as set forth in paragraph 

(a) of this section. 

Dated: October 25, 2013. 

Mary Alice Donner, 

Acting Secretary, Farm Credit Administration 

Board. 

[FR Doc. 2013–25892 Filed 10–30–13; 8:45 am] 

BILLING CODE 6705–01–P 

DEPARTMENT OF THE TREASURY 

Community Development Financial 

Institutions Fund 

12 CFR Part 1805 

Modification of Financial Reporting 

Requirements for Non-Profit 

Organizations 

AGENCY: Community Development 

Financial Institutions Fund (CDFI 

Fund), Department of the Treasury. 

ACTION: Interim rule. 

SUMMARY: The mission of the 

Community Development Financial 

Institutions Fund (CDFI Fund) is to 

increase economic opportunity and 

promote community development 

investments for underserved 

populations in distressed communities 

in the United States. Its long-term vision 

is to economically empower America’s 

underserved and distressed 

communities. The purpose of the 

Community Development Financial 

Institutions Program (CDFI Program) is 

to promote economic revitalization and 

community development through 

investment in and assistance to 

Community Development Financial 

Institutions (CDFIs). Under the CDFI 

Program, the CDFI Fund provides 

financial assistance in the form of 

grants, loans, equity investments and 

deposits to CDFIs selected through a 

merit-based application process. The 

CDFI Fund provides financial assistance 

to CDFIs to enhance their ability to 

make loans and investments, and to 

provide related services for the benefit 

of designated investment areas, targeted 

populations, or both. In addition, 

through the CDFI Program, the CDFI 

Fund provides technical assistance 

grants to CDFIs and entities that propose 

to become CDFIs, for the purpose of 

increasing their capacity to serve their 

target markets. 

The CDFI Fund is amending its 

regulations regarding the financial 

reporting requirements for non-profit 

organizations. The regulatory change 

requires CDFI Program awardees that 

are non-profit organizations to provide 

audited financial statements within 180 

days after the end of the awardee’s fiscal 

year end. This regulatory action 

conforms to the financial reporting 

requirements for non-profit awardees to 

the statutory provisions governing the 

CDFI Program. 

DATES: Effective date: October 31, 2013. 

Comment due date: December 30, 2013. 

ADDRESSES: All comments concerning 

this interim rule should be addressed to 

the CDFI Program Manager, Community 

Development Financial Institutions 

Fund, Department of the Treasury, 1500 

Pennsylvania Avenue NW., Washington 

DC 20220; by email to; by email to 

cdfihelp@cdfi.treas.gov; or by facsimile 

at (202) 453–2466. 

Electronic Submission of Comments: 

Interested persons are encouraged to 

submit comments electronically through 

the Federal eRulemaking Portal at 

http://www.regulations.gov. Electronic 

submission of comments allows the 

commenter maximum time to prepare 

and submit a comment, ensures timely 

receipt, and enables the Department to 

make them available to the public. 

Comments submitted electronically 

through the http://www.regulations.gov 

Web site can be viewed by other 

commenters and interested members of 

the public. Commenters should follow 

the instructions provided on that site to 

submit comments electronically. 

All properly submitted comments will 

be available for inspection and 

downloading at http://

www.regulations.gov. In general, 

comments received, including 

attachments and other supporting 

materials, are part of the public record 

and are available to the public. Do not 

submit any information in your 

comment or supporting materials that 

you consider confidential or 

inappropriate for public disclosure. 

FOR FURTHER INFORMATION CONTACT: 

Adam Martinez, Program Manager, CDFI 

Program, by mail to the CDFI Fund, 

Department of the Treasury, 1500 

Pennsylvania Avenue NW., Washington 

DC 20220; by email to cdfihelp@

cdfi.treas.gov; or by facsimile at (202) 

453–2466 (This is not a toll free 

number). 

SUPPLEMENTARY INFORMATION: 

Background 

The CDFI Fund was established as a 

wholly owned government corporation 

by the Community Development 

Banking and Financial Institutions Act 

of 1994, as amended (12 U.S.C. 4701 et 

seq.) (the Act). Subsequent legislation 

placed the CDFI Fund within the 

Department of the Treasury and gave the 

Secretary of the Treasury all powers and 

rights of the Administrator of the CDFI 

Fund as set forth in the Act. 

The CDFI Fund’s programs are 

designed to facilitate the flow of lending 

and investment capital to distressed 

communities and to individuals who 

have been unable to take full advantage 

of the financial services industry. 

Access to credit, investment capital, and 

financial services are essential 

ingredients for creating and retaining 

jobs, developing affordable housing, 


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65152 Federal Register / Vol. 78, No. 211 / Thursday, October 31, 2013 / Rules and Regulations 

revitalizing neighborhoods, unleashing 

the economic potential of small 

businesses, and empowering people. 

The CDFI Fund was established to 

promote economic revitalization and 

community development through, 

among other things, investment in and 

assistance to CDFIs, which specialize in 

serving underserved markets and the 

people who live there. CDFIs—while 

highly effective—are typically small in 

scale and often have difficulty raising 

the capital needed to meet the demands 

for their products and services. Through 

the CDFI Program, the CDFI Fund 

provides CDFIs with financial assistance 

in the form of grants, loans, equity 

investments, and deposits in order to 

enhance their ability to make loans and 

investments, and provide services for 

the benefit of designated investment 

areas, targeted populations or both. 

Additionally, many CDFIs are in 

formation or in the early stages of 

development in many markets 

underserved by traditional financial 

institutions, including rural and Native 

American communities. The CDFI 

Program assists such entities—as well as 

established CDFIs—by providing grants 

through which they may acquire 

technical assistance to build their 

capacity to serve their target markets. 

Applicants participate in the CDFI 

Program through a merit-based 

qualitative application and selection 

process in which the CDFI Fund makes 

funding decisions based on preestablished evaluation criteria. An 

entity generally receives financial 

assistance monies from the CDFI Fund 

only after being certified as a CDFI and 

entering into an assistance agreement 

with the CDFI Fund. These assistance 

agreements include performance goals, 

matching funds requirements and 

reporting requirements. 

On December 13, 2005, the CDFI 

Fund published in the Federal Register 

a revised interim rule (70 FR 73887) 

implementing the CDFI Program (the 

current rule). 

Current Financial Reporting 

Requirements for Non-Profit 

Organizations 

Part 1805 of the CDFI Fund 

regulations (12 CFR part 1805) sets forth 

the requirements under the Act for Data 

Collection and Reporting by CDFI 

Program awardees. Section 

1805.804(e)(1) (12 CFR 1805.804(e)(1)) 

states that all non-profit organizations 

must submit to the CDFI Fund financial 

statements that have been reviewed by 

an independent certified public 

accountant in accordance with 

standards issued by the American 

Institute of Certified Public 

Accountants, no later than 180 days 

after the end of the Awardee’s fiscal 

year; and that audited financial 

statements can be provided by the due 

date in lieu of reviewed statements, if 

available. 

Statutory Financial Reporting 

Requirements for CDFI Program 

Awardees 

The Act requires the CDFI Fund to 

ensure that each CDFI Program awardee 

(other than an insured CDFI or 

depository institution holding company) 

submit, not less than once during each 

18-month period, a statement of 

financial condition audited by an 

independent certified public accountant 

as part of the awardee’s annual report to 

the CDFI Fund required by section 

4714(e)(1) of the Act. 

Conforming CDFI Program Regulations 

to the Act 

The CDFI Program Regulations 

currently permit non-profit CDFI 

awardees to submit financial statements 

that are reviewed but not audited by 

independent certified public accounts 

as part of their annual report to the CDFI 

Fund. This was done in part out of a 

recognition of the cost and time 

constraints non-profit awardees face in 

obtaining audited financial statements 

within the allotted 180-day period 

following the end of their fiscal year. 

The CDFI Fund is issuing this interim 

rule to conform the regulatory reporting 

requirements to the requirements of the 

Act. 

Regulatory Analysis and Notices 

Executive Order 12866 

It has been determined that this final 

rule is not a significant regulatory action 

as defined in Executive Order 12866. 

Therefore, a regulatory assessment is not 

required. 

Regulatory Flexibility Act 

Because no notice of proposed 

rulemaking is required under the 

Administrative Procedure Act (5 U.S.C. 

553) or any other law, the Regulatory 

Flexibility Act does not apply. 

Paperwork Reduction Act 

The collections of information 

contained in this interim rule have been 

previously reviewed and approved by 

the Office of Management and Budget 

(OMB) in accordance with the 

Paperwork Reduction Act of 1995 and 

assigned OMB Control Numbers 1559– 

0006, 1559–0021, and 1559–0022. An 

agency may not conduct or sponsor, and 

a person is not required to respond to, 

a collection of information unless it 

displays a valid control number 

assigned by OMB. This document 

restates the collections of information 

without substantive change. 

National Environmental Policy Act 

This interim rule has been reviewed 

in accordance with 12 CFR part 1815. 

The CDFI Fund’s Environmental 

Regulations under the National 

Environmental Protection Act of 1969 

(NEPA) require that the CDFI Fund 

adequately consider the cumulative 

impact proposed activities have upon 

the human environment. It is the 

determination of the CDFI Fund that the 

interim rule does not constitute a major 

federal action significantly affecting the 

quality of the human environment and, 

in accordance with the NEPA and the 

CDFI Fund Environmental Quality 

Regulations, 12 CFR part 1815, neither 

an Environmental Assessment nor an 

Environmental Impact Statement is 

required. 

Administrative Procedure Act 

Because this interim rule relates to 

loans and grants, notice and public 

procedure and a delayed effective date 

are not required pursuant to the 

Administrative Procedure Act, 5 U.S.C. 

553(a)(2). 

Catalogue of Federal Domestic 

Assistance Number 

Community Development Financial 

Institutions Program—21.020. 

List of Subjects in 12 CFR Part 1805 

Community development, Grant 

programs—housing and community 

development, Loan programs—housing 

and community development, Reporting 

and recordkeeping requirements, Small 

businesses. 

Amendment to the Regulations 

For the reasons discussed in the 

preamble, the CDFI Fund is amending 

12 CFR part 1805 as follows: 

PART 1805—COMMUNITY 

DEVELOPMENT FINANCIAL 

INSTITUTIONS PROGRAM 

■ 1. The authority citation for part 1805 

continues to read as follows: 

Authority: 12 U.S.C. 4703, 4703 note, 4710, 

4717; and 31 U.S.C. 321. 

■ 2. In § 1805.804, paragraph (e)(1)(i) is 

revised to read as follows: 

§ 1805.804 Data collection and reporting. 

* * * * * 

(e) * * * 

(1) * * * 

(i) All non-profit organizations 

(excluding Insured CDFIs and StateInsured Credit Unions) must submit to 


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Federal Register / Vol. 78, No. 211 / Thursday, October 31, 2013 / Rules and Regulations 65153 

the CDFI Fund financial statements that 

have been audited by an independent 

certified public accountant in 

accordance with generally accepted 

auditing standards as promulgated by 

the American Institute of Certified 

Public Accountants, no later than 180 

days after the end of the Awardee’s 

fiscal year. Non-profit organizations 

(excluding Insured CDFIs and StateInsured Credit Unions) that are required 

to have their financial statements 

audited pursuant to OMB Circular A– 

133 Audits of States, Local Governments 

and Non-Profit Organizations, must also 

submit their A–133 audited financial 

statements to the CDFI Fund no later 

than 270 days after the end of the 

Awardee’s fiscal year. Non-profit 

organizations (excluding Insured CDFIs 

and State-Insured Credit Unions) that 

are not required to have financial 

statements audited pursuant to OMB 

Circular A–133, Audits of States, Local 

Governments and Non-Profit 

Organizations, must submit to the CDFI 

Fund a statement signed by the 

Awardee’s Authorized Representative or 

certified public accountant, asserting 

that the Awardee is not required to have 

a single audit pursuant OMB Circular 

A–133. 

* * * * * 

Dated: October 24, 2013. 

Donna J. Gambrell, 

Director, Community Development Financial 

Institutions Fund. 

[FR Doc. 2013–25872 Filed 10–30–13; 8:45 am] 

BILLING CODE 4810–70–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 25 

[Docket No. FAA–2013–0920; Special 

Conditions No. 25–13–12–SC] 

Special Conditions: Learjet Model 45 

Series Airplanes; Aircraft Electronic 

System Security Protection From 

Unauthorized External Access 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final special condition; request 

for comments. 

SUMMARY: These special conditions are 

issued for the Learjet Model 45 series 

airplanes. These airplanes will have a 

novel or unusual design feature 

associated with the architecture and 

connectivity capabilities of the 

airplanes’ computer systems and 

networks. Connectivity to, or access by, 

external systems and networks may 

result in security vulnerabilities to the 

airplanes’ systems. The applicable 

airworthiness regulations do not contain 

adequate or appropriate safety standards 

for this design feature. These special 

conditions contain the additional safety 

standards that the Administrator 

considers necessary to establish a level 

of safety equivalent to that established 

by the existing airworthiness standards. 

DATES: The effective date of these 

special conditions is October 31, 2013. 

We must receive your comments by 

December 16, 2013. 

ADDRESSES: Send comments identified 

by docket number FAA–2013–0920 

using any of the following methods: 

• Federal eRegulations Portal: Go to 

http://www.regulations.gov/ and follow 

the online instructions for sending your 

comments electronically. 

Mail: Send comments to Docket 

Operations, M–30, U.S. Department of 

Transportation (DOT), 1200 New Jersey 

Avenue SE, Room W12–140, West 

Building Ground Floor, Washington, 

DC, 20590–0001. 

Hand Delivery or Courier: Take 

comments to Docket Operations in 

Room W12–140 of the West Building 

Ground Floor at 1200 New Jersey 

Avenue SE., Washington, DC, between 8 

a.m. and 5 p.m., Monday through 

Friday, except federal holidays. 

Fax: Fax comments to Docket 

Operations at 202–493–2251. 

Privacy: The FAA will post all 

comments it receives, without change, 

to http://www.regulations.gov/, 

including any personal information the 

commenter provides. Using the search 

function of the docket Web site, anyone 

can find and read the electronic form of 

all comments received into any FAA 

docket, including the name of the 

individual sending the comment (or 

signing the comment for an association, 

business, labor union, etc.). DOT’s 

complete Privacy Act Statement can be 

found in the Federal Register published 

on April 11, 2000 (65 FR 19477–19478), 

as well as at http://DocketsInfo.dot 

.gov/. 

Docket: Background documents or 

comments received may be read at 

http://www.regulations.gov/ at any time. 

Follow the online instructions for 

accessing the docket or go to the Docket 

Operations in Room W12–140 of the 

West Building Ground Floor at 1200 

New Jersey Avenue SE., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except federal holidays. 

FOR FURTHER INFORMATION CONTACT: 

Varun Khanna, FAA, Airplane and 

Flight Crew Interface Branch, ANM– 

111, Transport Airplane Directorate, 

Aircraft Certification Service, 1601 Lind 

Avenue SW., Renton, Washington 

98057–3356; telephone 425–227–1298; 

facsimile 425–227–1149. 

SUPPLEMENTARY INFORMATION: The FAA 

has determined that notice of, and 

opportunity for prior public comment 

on, these special conditions are 

impracticable because these procedures 

would significantly delay issuance of 

the design approval and thus delivery of 

the affected aircraft. The FAA has also 

determined that notice of these special 

conditions is unnecessary because the 

substance of these special conditions 

has been subject to the public comment 

process in several prior instances with 

no substantive comments received. The 

FAA therefore finds that good cause 

exists for making these special 

conditions effective upon publication in 

the Federal Register. 

Comments Invited 

We invite interested people to take 

part in this rulemaking by sending 

written comments, data, or views. The 

most helpful comments reference a 

specific portion of the special 

conditions, explain the reason for any 

recommended change, and include 

supporting data. 

We will consider all comments we 

receive by the closing date for 

comments. We may change these special 

conditions based on the comments we 

receive. 

Background 

On April 21, 2010, Learjet applied for 

both a change to Type Certificate No. 

T00008WI and for a supplemental type 

certificate (STC) for an installation of an 

avionics upgrade in the Learjet Model 

45 series airplanes. The Model 45 series 

airplanes are swept-wing aircraft 

equipped with two Honeywell TFE731– 

40BR turbojet engines, weighing 13,890 

pounds empty and capable of carrying 

up to nine passengers and two crew 

members. 

The proposed Learjet Model 45 

avionics architecture is new and novel 

for commercial transport airplanes by 

allowing connection to airplane 

electronic systems and networks, and 

access from aircraft external sources 

(e.g., wireless devices, Internet 

connectivity) to the previously isolated 

airplane electronic assets. 

Learjet’s proposed design is 

considered by the FAA to be an 

architecture which introduces potential 

security risks and vulnerabilities not 

addressed in current regulations and 

aircraft-level or system-level safety 

assessment methods. Consequently, 

these special conditions address 

security and safety issues arising from 

the use of this type of architecture, and 


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