71526 Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Rules and Regulations 

Paulding 

Putnam 

Van Wert 

Williams 

INDIANAPOLIS 

Survey Area 

Indiana: 

Boone 

Hamilton 

Hancock 

Hendricks 

Johnson 

Marion 

Morgan 

Shelby 

Area of Application. Survey area plus: 

Indiana: 

Bartholomew 

Benton 

Brown 

Carroll 

Clay 

Clinton 

Decatur 

Delaware 

Fayette 

Fountain 

Henry 

Howard 

Madison 

Montgomery 

Parke 

Putnam 

Rush 

Sullivan 

Tippecanoe 

Tipton 

Vermillion 

Vigo 

Warren 

* * * * * 

OHIO 

* * * * * 

CLEVELAND 

Survey Area 

Ohio: 

Cuyahoga 

Geauga 

Lake 

Medina 

Area of Application. Survey area plus: 

Ohio: 

Ashland 

Ashtabula 

Carroll 

Columbiana 

Erie 

Huron 

Lorain 

Mahoning 

Ottawa 

Portage 

Sandusky 

Seneca 

Stark 

Summit 

Trumbull 

Wayne 

* * * * * 

PENNSYLVANIA 

* * * * * 

PITTSBURGH 

Survey Area 

Pennsylvania: 

Allegheny 

Beaver 

Butler 

Washington 

Westmoreland 

Area of Application. Survey area plus: 

Pennsylvania: 

Armstrong 

Bedford 

Blair 

Cambria 

Cameron 

Centre 

Clarion 

Clearfield 

Clinton 

Crawford 

Elk (Does not include the Allegheny National Forest portion) 

Erie 

Fayette 

Forest (Does not include the Allegheny 

National Forest portion) 

Greene 

Huntingdon 

Indiana 

Jefferson 

Lawrence 

Mercer 

Potter 

Somerset 

Venango 

Ohio: 

Belmont 

Harrison 

Jefferson 

Tuscarawas 

West Virginia: 

Brooke 

Hancock 

Marshall 

Ohio 

* * * * * 

[FR Doc. 2010–29660 Filed 11–23–10; 8:45 am] 

BILLING CODE 6325–39–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 704 

RIN 3133–AD58 

Corporate Credit Unions, Technical 

Corrections 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Interim final rule with request 

for comments. 

SUMMARY: NCUA is issuing technical 

corrections to its corporate credit union 

rule, published in the Federal Register 

of October 20, 2010. The amendments: 

Correct the definition of collateralized 

debt obligation (CDO) in § 704.2; correct 

the list of investments exempt from the 

single obligor limits and credit rating 

requirements in § 704.6; and correct a 

date contained in Model Form H of 

Appendix A to part 704. 

DATES: Effective on January 18, 2011. 

Comments must be received by 

December 27, 2010. 

ADDRESSES: You may submit comments 

by any of the following methods (Please 

send comments by one method only): 

Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

NCUA Web site: http:// 

www.ncua.gov/Resources/ 

RegulationsOpinionsLaws/ 

ProposedRegulations.aspx. Follow the 

instructions for submitting comments. 

E-mail: Address to 

regcomments@ncua.gov. Include [Your 

name] Comments on ‘‘Interim Final 

Rulemaking for Part 704—Corporate 

Credit Unions’’ in the e-mail subject 

line. 

Fax: (703) 518–6319. Use the subject 

line described above for e-mail. 

Mail: Address to Mary Rupp, 

Secretary of the Board, National Credit 

Union Administration, 1775 Duke 

Street, Alexandria, Virginia 22314– 

3428. 

Hand Delivery/Courier: Same as mail 

address. 

Public Inspection: All public 

comments are available on the agency’s 

Web site at http://www.ncua.gov/ 

Resources/RegulationsOpinionsLaws/ 

ProposedRegulations.aspx as submitted, 

except as may not be possible for 

technical reasons. Public comments will 

not be edited to remove any identifying 

or contact information. Paper copies of 

comments may be inspected in NCUA’s 

law library at 1775 Duke Street, 

Alexandria, Virginia 22314, by 

appointment weekdays between 9 a.m. 

and 3 p.m. To make an appointment, 

call (703) 518–6546 or send an e-mail to 

OGCMail@ncua.gov. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth Wirick, Staff Attorney, Office 

of General Counsel, at the address above 

or telephone (703) 518–6540; or David 

Shetler, Deputy Director, Office of 

Corporate Credit Unions, at the address 

above or telephone (703) 518–6640. 

SUPPLEMENTARY INFORMATION

A. Background 

The NCUA published a final rule in 

the Federal Register of October 20, 

2010, at 75 FR 64786, containing 

extensive revisions to its corporate 

credit union rule, 12 CFR part 704. The 


jlentini on DSKJ8SOYB1PROD with RULES
Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Rules and Regulations 71527 

final revisions require three technical 

corrections. The following corrections 

reflect the intent of the original 

revisions as described in the preamble 

to the October 20, 2010 rulemaking. 

B. Corrections 

Section 704.2 Definition of 

‘‘collateralized debt obligation’’ 

The final revisions to part 704 

prohibited corporate credit unions 

(corporates) from purchasing certain 

overly complex or leveraged 

investments, including collateralized 

debt obligations (CDOs). 75 FR 64786, 

64793 (October 20, 2010). These 

prohibitions were intended to protect 

the corporates from the potential for 

excessive investment losses. 74 FR 

65210, 65237 (December 9, 2009) 

(preamble to proposed part 704 

revisions). The proposed (and final) 

definition of CDO, however, was overly 

broad, in that it inadvertently included 

particular investments that did not— 

when subject to the other credit risk and 

asset liability management limitations of 

part 704—present the risk of excessive 

losses. 

This interim final rule amends the 

CDO definition to ensure the following 

are not prohibited: Commercial 

mortgage backed securities; securities 

collateralized by Agency mortgagebacked securities (Agency MBS); and 

securities that are fully guaranteed as to 

principal and interest by the United 

States Government and its agencies and 

government sponsored enterprises. 

The final rulemaking published 

October 20, 2010, revises § 704.2 twice. 

The first § 704.2 revision is effective 

January 18, 2011, and the second 

revision is effective October 20, 2011. 

This technical correction to the 

definition of ‘‘collateralized debt 

obligation’’ must be included in both 

revisions. Accordingly, the rule text 

below has two separate instructions for 

the CDO definition. 

Paragraph 704.6(b) Exemptions to 

§ 704.6 

Section 704.6 generally requires 

corporate investments meet certain 

single obligor concentration limits, 

sector concentration limits, and credit 

rating requirements. Paragraph 704.6(b) 

exempts certain investments, including 

investments generally issued by or 

guaranteed by the U.S. Government or 

its agencies or sponsored enterprises, 

from the requirements of § 704.6. As 

stated in the preamble to the recent 

corporate rule revisions, however, the 

Board did not intend for this exemption 

to apply to agency MBS in the context 

of sector limits. 75 FR 64786, 64806 

(Oct. 20, 2010) (discussing paragraph 

704.6(d)(1)(i)). As drafted, however, not 

only the sector limits apply to agency 

MBS, but the other requirements, 

including single obligor limits and 

credit rating requirements, inadvertently 

apply to agency MBS. This correction 

clarifies the list of exemptions in 

§ 704.6(b) to make clear that Agency 

MBS are subject to the sector 

concentration limits in 704.6(d) but not 

the other requirements of § 704.6. 

Appendix A, Model Form H 

The rule as published included an 

incorrect date instruction on Model 

Form H in Appendix A. Id. at 64851. 

Model Form H included introductory 

text indicating that the form was for use 

before October 20, 2011. In fact, because 

Model Form H deals with perpetual 

contributed capital, the form should be 

used only on and after October 20, 2011. 

The correction replaces the phrase 

‘‘before’’ with the phrase ‘‘on or after.’’ 

C. Interim Final Rule 

NCUA is issuing this rulemaking as 

an interim final rule effective as of 

January 18, 2011, which is the date the 

relevant provisions of the previous 

corporate rulemaking will take effect. 

The Administrative Procedure Act 

(APA), 5 U.S.C. 553, generally requires 

that before a rulemaking can be 

finalized it must first be published as a 

notice of proposed rulemaking with the 

opportunity for public comment, unless 

the agency for good cause finds that 

notice and public comment are 

impracticable, unnecessary, or contrary 

to the public interest. In this regard, 

NCUA believes good cause exists for 

issuing these clarifying amendments as 

an interim final rule, in order to 

coordinate with the effective date of the 

recent final revisions as well as 

eliminate as soon as possible any 

confusion resulting from preamble 

language that is inconsistent with, or 

makes ambiguous, the associated 

regulatory text. To that extent, NCUA 

believes issuing this rulemaking as an 

interim final rule is in the public 

interest. NCUA does not anticipate 

comments on these changes and so is 

allowing only a 30-day comment period. 

D. Regulatory Procedures 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

requires NCUA to prepare an analysis to 

describe any significant economic 

impact any proposed regulation may 

have on a substantial number of small 

entities (those under $10 million in 

assets). The interim final rule applies 

only to corporate credit unions, all of 

which have assets well in excess of $10 

million. Accordingly, the interim final 

rule will not have a significant 

economic impact on a substantial 

number of small credit unions and, 

therefore, a regulatory flexibility 

analysis is not required. 

Small Business Regulatory Enforcement 

Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act (SBREFA) of 

1996, Public Law 104–121, 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. While NCUA views 

these clarifying amendments as minor, 

the formal determination by the Office 

of Information and Regulatory Affairs is 

pending. 

Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(PRA) applies to rulemakings in which 

an agency by rule creates a new 

paperwork burden on regulated entities 

or modifies an existing burden. 44 

U.S.C. 3507(d); 5 CFR part 1320. For 

purposes of the PRA, a paperwork 

burden may take the form of either a 

reporting or a recordkeeping 

requirement, both referred to as 

information collections. These technical 

corrections do not impose any new 

paperwork burden. 

Executive Order 13132 

Executive Order 13132 encourages 

independent regulatory agencies to 

consider the impact of their 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. 

The interim final rule would not have 

substantial direct effects on the states, 

on the connection between the national 

government and the states, or on the 

distribution of power and 

responsibilities among the various 

levels of government. NCUA has 

determined that this 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 

The NCUA has determined that this 

interim final rule will not affect family 

well-being within the meaning of 

section 654 of the Treasury and General 


jlentini on DSKJ8SOYB1PROD with RULES
71528 Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Rules and Regulations 

Government Appropriations Act, 1999, 

Public Law 105–277, 112 Stat. 2681 

(1998). 

List of Subjects in 12 CFR Part 704 

Credit unions, Corporate credit 

unions, Reporting and recordkeeping 

requirements. 

By the National Credit Union 

Administration Board on November 18, 2010. 

Mary F. Rupp, 

Secretary of the Board. 

■ For the reasons stated in the preamble, 

the National Credit Union 

Administration amends 12 CFR part 704 

as set forth below: 

PART 704—CORPORATE CREDIT 

UNIONS 

■ 1. The authority citation for part 704 

continues to read as follows: 

Authority: 12 U.S.C. 1762, 1766(a), 1772a, 

1781, 1789, and 1795e. 

■ 2. Revise the definition of 

‘‘collateralized debt obligation’’ in 

§ 704.2 to read as follows: 

§ 704.2 Definitions. 

* * * * * 

Collateralized debt obligation (CDO) 

means a debt security collateralized by 

mortgage-backed securities, other assetbacked securities, or corporate 

obligations in the form of nonmortgage 

loans or debt. For purposes of part 704, 

the term CDO does not include: 

(1) Senior tranches of Re-REMIC’s 

consisting of senior mortgage-and assetbacked securities; 

(2) Any security that is fully 

guaranteed as to principal and interest 

by the U.S. Government or its agencies 

or its sponsored enterprises; or 

(3) Any security collateralized by 

other securities where all the underlying 

securities are fully guaranteed as to 

principal and interest by the U.S. 

Government or its agencies or its 

sponsored enterprises. 

* * * * * 

■ 3. Effective October 20, 2011, revise 

the definition of ‘‘collateralized debt 

obligation’’ in § 704.2 to read as follows: 

§ 704.2 Definitions. 

* * * * * 

Collateralized debt obligation (CDO) 

means a debt security collateralized by 

mortgage-backed securities, other assetbacked securities, or corporate 

obligations in the form of nonmortgage 

loans or debt. For purposes of Part 704, 

the term CDO does not include: 

(1) Senior tranches of Re-REMIC’s 

consisting of senior mortgage-and assetbacked securities; 

(2) Any security that is fully 

guaranteed as to principal and interest 

by the U.S. Government or its agencies 

or its sponsored enterprises; or 

(3) Any security collateralized by 

other securities where all the underlying 

securities are fully guaranteed as to 

principal and interest by the U.S. 

Government or its agencies or its 

sponsored enterprises. 

* * * * * 

■ 4. Revise paragraph (b) in § 704.6 to 

read as follows: 

§ 704.6 Credit risk management. 

* * * * * 

(b) Exemption. The limitations and 

requirements of this section do not 

apply to certain assets, whether or not 

considered investments under this part, 

including fixed assets, individual loans 

and loan participation interests, 

investments in CUSOs, investments that 

are issued or fully guaranteed as to 

principal and interest by the U.S. 

government or its agencies or its 

sponsored enterprises (but not 

exempting, for purposes of paragraph 

(d) of this section, mortgage backed 

securities), investments that are fully 

insured or guaranteed (including 

accumulated dividends and interest) by 

the NCUSIF or the Federal Deposit 

Insurance Corporation, and settlement 

funds in federally insured depository 

institutions. 

* * * * * 

■ 5. Revise the introductory note in 

Model Form H, Appendix A, to read as 

follows: 

Appendix A to Part 704—Capital 

Prioritization and Model Forms 

* * * * * 

Model Form H 

Note: This form is for use on or after 

October 20, 2011 in the circumstances where 

the credit union has determined that it will 

give newly issued capital priority over older 

capital as described in Part I of this 

Appendix. Also, capital previously issued 

under the nomenclature ‘‘paid-in capital’’ is 

considered perpetual contributed capital. 

* * * * * 

[FR Doc. 2010–29547 Filed 11–23–10; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2010–0760; Directorate 

Identifier 2010–NM–086–AD; Amendment 

39–16520; AD 2010–24–02] 

RIN 2120–AA64 

Airworthiness Directives; DassaultAviation Model FALCON 7X Airplanes 

AGENCY: Federal Aviation 

Administration, Department of 

Transportation. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for the 

products listed above. This AD results 

from mandatory continuing 

airworthiness information (MCAI) 

originated by an aviation authority of 

another country to identify and correct 

an unsafe condition on an aviation 

product. The MCAI describes the unsafe 

condition as: 

A design review has shown that the 

Lightning Sensor System (LSS) antenna 

which is optionally installed on certain 

Falcon 7X aeroplanes might, in the event of 

belly or gear-up landing, puncture the rear 

fuel tank, which could result in fuel leakage 

and post-landing fire. 

We are issuing this AD to require 

actions to correct the unsafe condition 

on these products. 

DATES: This AD becomes effective 

December 29, 2010. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of December 29, 2010. 

ADDRESSES: You may examine the AD 

docket on the Internet at http:// 

www.regulations.gov or in person at the 

U.S. Department of Transportation, 

Docket Operations, M–30, West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue, SE., 

Washington, DC. 

FOR FURTHER INFORMATION CONTACT: Tom 

Rodriguez, Aerospace Engineer, 

International Branch, ANM–116, 

Transport Airplane Directorate, FAA, 

1601 Lind Avenue, SW., Renton, 

Washington 98057–3356; telephone 

(425) 227–1137; fax (425) 227–1149. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to include an AD that would 

apply to the specified products. That 

NPRM was published in the Federal 

Register on August 5, 2010 (75 FR 


jlentini on DSKJ8SOYB1PROD with RULES