11622 Federal Register / Vol. 86, No. 37 / Friday, February 26, 2021 / Rules and Regulations 

nonbank financial institution would be 

a small entity. 

Foreign banks (including bridge 

banks) are already covered by FDICIA’s 

statutory definition of financial 

institution. Accordingly, while this final 

rule clarifies that foreign banks are 

financial institutions, it will not have 

any economic impact on foreign banks. 

List of Subjects in 12 CFR Part 231 

Banks, Banking, Financial 

institutions, Netting. 

For the reasons set forth in the 

preamble, the Board amends Regulation 

EE, 12 CFR part 231, as follows: 

PART 231—NETTING ELIGIBILITY FOR 

FINANCIAL INSTITUTIONS 

(REGULATION EE) 

■ 1. The authority citation for part 231 

continues to read as follows: 

Authority: 12 U.S.C. 4402(1)(B) and 

4402(9). 

■ 2. In § 231.2, redesignate paragraphs 

(c) through (f) as paragraphs (d) through 

(g), and add new paragraph (c) to read 

as follows: 

§ 231.2 Definitions. 

* * * * * 

(c) Bridge institution means a legal 

entity that has been established by a 

governmental authority to take over, 

transfer, or continue operating critical 

functions and viable operations of an 

entity in resolution. A bridge institution 

could include a bridge depository 

institution or a bridge financial 

company organized by the Federal 

Deposit Insurance Corporation in 

accordance with 12 U.S.C. 1821(n) or 

5390(h), respectively, or a similar entity 

organized under foreign law. 

■ 3. Amend § 231.3 by: 

■ a. Revising paragraph (a); 

■ b. Redesignating paragraphs (b) and 

(c) as paragraphs (c) and (d); 

■ c. Adding new paragraphs (b) and (e). 

The revision and additions read as 

follows: 

§ 231.3 Qualification as a financial 

institution. 

(a) A person qualifies as a financial 

institution for purposes of sections 401– 

407 of the Act if it represents, orally or 

in writing, that it will engage in 

financial contracts as a counterparty on 

both sides of one or more financial 

markets and either— 

(1) Had one or more financial 

contracts of a total gross dollar value of 

at least $1 billion in notional principal 

amount outstanding at such time or on 

any day during the previous 15-month 

period with counterparties that are not 

its affiliates; or 

(2) Had total gross mark-to-market 

positions of at least $100 million 

(aggregated across counterparties) in one 

or more financial contracts at such time 

or on any day during the previous 15- 

month period with counterparties that 

are not its affiliates. 

(b) After two or more persons 

consolidate, such as through a merger or 

acquisition, the surviving person meets 

the quantitative thresholds under 

paragraphs (a)(1) and (a)(2) if, on the 

same, single calendar day during the 

previous 15-month period, the aggregate 

financial contracts of the consolidated 

persons would have met such 

quantitative thresholds. 

* * * * * 

(e) A person qualifies as a financial 

institution for purposes of sections 401– 

407 of the Act if it is— 

(1) A swap dealer or major swap 

participant registered with the 

Commodity Futures Trading 

Commission pursuant to section 4s of 

the Commodity Exchange Act (7 U.S.C. 

6s); 

(2) A security-based swap dealer or 

major security-based swap participant 

registered with the U.S. Securities and 

Exchange Commission pursuant to 

section 15F of the Securities Exchange 

Act of 1934 (15 U.S.C. 78o–10); 

(3) A derivatives clearing organization 

registered with the Commodity Futures 

Trading Commission pursuant to 

section 5b(a) of the Commodity 

Exchange Act (7 U.S.C. 7a–1(a)) or a 

derivatives clearing organization that 

the Commodity Futures Trading 

Commission has exempted from 

registration by rule or order pursuant to 

section 5b(h) of the Commodity 

Exchange Act (7 U.S.C. 7a–1(h)); 

(4) A clearing agency registered with 

the U.S. Securities and Exchange 

Commission pursuant to section 17A(b) 

of the Securities Exchange Act of 1934 

(15 U.S.C. 78q–1(b)) or a clearing agency 

that the U.S. Securities and Exchange 

Commission has exempted from 

registration by rule or order pursuant to 

section 17A(k) of the Securities 

Exchange Act of 1934 (15 U.S.C. 78q– 

1(k)); 

(5) A financial market utility that the 

Financial Stability Oversight Council 

has designated as, or as likely to 

become, systemically important 

pursuant to 12 U.S.C. 5463; 

(6) A qualifying central counterparty 

under 12 CFR 217.2; 

(7) A nonbank financial company that 

the Financial Stability Oversight 

Council has determined shall be 

supervised by the Board and subject to 

prudential standards, pursuant to 12 

U.S.C. 5323; 

(8) A foreign bank as defined in 

section 1(b) of the International Banking 

Act of 1978 (12 U.S.C. 3101), including 

a foreign bridge bank; 

(9) A bridge institution established for 

the purpose of resolving a financial 

institution; 

(10) A Federal Reserve Bank or a 

foreign central bank; or 

(11) The Bank for International 

Settlements. 

By order of the Board of Governors of the 

Federal Reserve System, February 17, 2021. 

Ann Misback, 

Secretary of the Board. 

[FR Doc. 2021–03596 Filed 2–25–21; 8:45 am] 

BILLING CODE P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 272 

Federal Open Market Committee; Rules 

of Procedure 

AGENCY: Federal Open Market 

Committee. 

ACTION: Final rule. 

SUMMARY: The Federal Open Market 

Committee is amending its Rules of 

Procedure to replace the terms 

‘‘Chairman’’ and ‘‘Vice Chairman’’ with 

‘‘Chair’’ and Vice Chair,’’ respectively. 

DATES: Effective February 26, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Matthew Luecke, Deputy Secretary of 

the Federal Open Market Committee, 

(202) 452–2576, 20th and C Streets NW, 

Washington, DC 20551; or Alye S. 

Foster, Deputy Associate General 

Counsel (202–452–5289), Legal 

Division, Board of Governors of the 

Federal Reserve System. 

SUPPLEMENTARY INFORMATION: The 

Federal Open Market Committee 

(Committee) is replacing the references 

in its Rules of Procedure to ‘‘Chairman’’ 

and ‘‘Vice Chairman,’’ with the genderneutral equivalent terms of ‘‘Chair’’ and 

‘‘Vice Chair’’. Although the terms 

‘‘Chairman’’ and ‘‘Vice Chairman’’ are 

referenced in the Federal Reserve Act, 

traditionally these terms have been used 

to refer to persons regardless of gender. 

As the terms are not intended to be and, 

in practice, are not gender-specific, the 

Committee is replacing of the terms 

‘‘Chairman’’ and ‘‘Vice Chairman’’ in 

the Committee’s Rules of Procedure 

with their gender-neutral equivalents of 

‘‘Chair’’ and ‘‘Vice Chair,’’ respectively. 

This change also aligns the Committee’s 

Rules of Procedure with its practice. 

Because the amended rule relates 

solely to the internal organization, 

procedure, or practice of the Committee, 

the public notice, public comment, and 


khammond on DSKJM1Z7X2PROD with RULES
Federal Register / Vol. 86, No. 37 / Friday, February 26, 2021 / Rules and Regulations 11623 

1 85 FR 86402 (Dec. 29, 2020); 85 FR 86308 (Dec. 

29, 2020). 

2Qualified Mortgage Definition Under the Truth 

in Lending Act (Regulation Z): Extension of Sunset 

Date, 85 FR 67938 (Oct. 26, 2020). 

delayed effective date provisions of the 

Administrative Procedure Act do not 

apply to the amended rule. See 5 U.S.C. 

553(b) and (d). Because public notice 

and comment is not required, the 

Regulatory Flexibility Act, 5 U.S.C. 601 

et seq., also does not apply to the 

amended rule. 

Authority and Issuance 

For the reasons set forth in the 

SUPPLEMENTARY INFORMATION, the 

Federal Open Market Committee 

amends 12 CFR part 272 to read as 

follows: 

PART 272—RULES OF PROCEDURE 

■ 1. The authority citation for part 272 

continues to read as follows: 

Authority: 5 U.S.C. 552. 

PART 272—[AMENDED] 

■ 2. In part 272, revise all references to 

‘‘Chairman’’ and ‘‘Vice Chairman’’ to 

read ‘‘Chair’’ and ‘‘Vice Chair’’, 

respectively. 

By order of the Federal Open Market 

Committee. 

Matthew M. Luecke, 

Deputy Secretary, Federal Open Market 

Committee. 

[FR Doc. 2021–04039 Filed 2–25–21; 8:45 am] 

BILLING CODE 6210–01–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1026 

Public Statement on General QM and 

Seasoned QM Final Rules 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Public statement; status of 

published final rules. 

SUMMARY: The Bureau of Consumer 

Financial Protection (Bureau) has 

released a public statement regarding 

the mandatory compliance date of the 

Bureau’s General QM Final Rule and 

possible reconsideration of the General 

QM Final Rule and the Seasoned QM 

Final Rule. 

DATES: The public statement was 

released on the Bureau’s website on 

February 23, 2021. 

FOR FURTHER INFORMATION CONTACT: Ben 

Cady, Mark Morelli, Amanda Quester, 

or Jane Raso, Senior Counsels, Office of 

Regulations, at 202–435–7700. If you 

require this document in an alternative 

electronic format, please contact CFPB_

Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: On 

December 10, 2020, the Bureau issued 

two final rules relating to the qualified 

mortgage (QM) definition under the 

Truth in Lending Act: A final rule 

entitled ‘‘Qualified Mortgage Definition 

under the Truth in Lending Act 

(Regulation Z): General QM Loan 

Definition’’ (General QM Final Rule) 

and a final rule entitled ‘‘Qualified 

Mortgage Definition under the Truth in 

Lending Act (Regulation Z): Seasoned 

QM Loan Definition’’ (Seasoned QM 

Final Rule).1 March 1, 2021, is the 

effective date of both the General QM 

Final Rule and the Seasoned QM Final 

Rule. The Bureau also established a 

mandatory compliance date for the 

General QM Final Rule of July 1, 2021. 

Another category of QMs currently 

available under Regulation Z consists of 

loans that are eligible for purchase or 

guarantee by either the Federal National 

Mortgage Association or the Federal 

Home Loan Mortgage Corporation 

(collectively, the GSEs), while operating 

under the conservatorship or 

receivership of the Federal Housing 

Finance Agency (FHFA) (Temporary 

GSE QM loan definition). Pursuant to a 

final rule issued on October 20, 2020, 

the Temporary GSE QM loan definition 

is scheduled to expire on (1) the 

mandatory compliance date of the 

General QM Final Rule or (2) with 

respect to each GSE when that GSE 

ceases to operate under the 

conservatorship of FHFA, whichever 

happens earlier.2

The Bureau is considering whether to 

initiate a rulemaking to revisit the 

Seasoned QM Final Rule. If the Bureau 

decides to do so, it expects that it will 

consider in that rulemaking whether 

any potential final rule revoking or 

amending the Seasoned QM Final Rule 

should affect covered transactions for 

which an application was received 

during the period from March 1, 2021, 

until the effective date of such a final 

rule. 

The Bureau also expects to issue 

shortly a proposed rule that would 

delay the July 1, 2021 mandatory 

compliance date of the General QM 

Final Rule. If such a proposed rule were 

finalized, creditors would be able to use 

either the current General QM loan 

definition or the revised General QM 

loan definition for applications received 

during the period from March 1, 2021, 

until the delayed mandatory compliance 

date. Furthermore, the Bureau 

anticipates that the Temporary GSE QM 

loan definition will remain in effect 

until the new mandatory compliance 

date, in accordance with the October 20, 

2020 final rule described above, except 

that the Temporary GSE QM loan 

definition would expire with respect to 

a GSE if that GSE ceases to operate 

under conservatorship prior to the new 

mandatory compliance date. 

The Bureau will consider at a later 

date whether to initiate another 

rulemaking to reconsider other aspects 

of the General QM Final Rule. 

Dated: February 22, 2021. 

David Uejio, 

Acting Director, Bureau of Consumer 

Financial Protection. 

[FR Doc. 2021–03987 Filed 2–23–21; 4:15 pm] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Parts 11, 21, 43, and 107 

[Docket No. FAA–2018–1087] 

RIN 2120–AK85 

Operation of Small Unmanned Aircraft 

Systems Over People; Delay of 

Effective Date; Correction 

AGENCY: Federal Aviation 

Administration (FAA). 

ACTION: Final rule; delay of effective; 

correction. 

SUMMARY: In accordance with the 

memorandum of January 20, 2021, from 

the Assistant to the President and Chief 

of Staff, titled ‘‘Regulatory Freeze 

Pending Review,’’ the Agency delays the 

March 1, 2021 effective date of the final 

rule, Operation of Small Unmanned 

Aircraft Systems Over People, until 

March 16, 2021. 

DATES: As of February 26, 2021, the 

March 1, 2021 effective date of the final 

rule published on January 15, 2021, at 

86 FR 4314, is delayed to March 16, 

2021. The corrections are effective 

March 16, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Michael Machnik, General Aviation and 

Commercial Division, Flight Standards 

Service, Federal Aviation 

Administration, 55 M Street SE, 8th 

Floor, Washington, DC 20003; telephone 

1–844–FLY–MYUAS; email: UASHelp@

faa.gov. 

SUPPLEMENTARY INFORMATION: 

Electronic Access and Filing 

A copy of the notice of proposed 

rulemaking (NPRM) (84 FR 3856, Feb. 


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