38080 Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Proposed Rules 

comment may not be viewable for up to 

several weeks. Please keep the comment 

tracking number that http://

www.regulations.gov provides after you 

have successfully uploaded your 

comment. 

Submitting comments via email, hand 

delivery, or mail. Comments and 

documents submitted via email, hand 

delivery, or mail also will be posted to 

http://www.regulations.gov. If you do 

not want your personal contact 

information to be publicly viewable, do 

not include it in your comment or any 

accompanying documents. Instead, 

provide your contact information on a 

cover letter. Include your first and last 

names, email address, telephone 

number, and optional mailing address. 

The cover letter will not be publicly 

viewable as long as it does not include 

any comments. 

Include contact information each time 

you submit comments, data, documents, 

and other information to DOE. If you 

submit via mail or hand delivery, please 

provide all items on a CD, if feasible. It 

is not necessary to submit printed 

copies. No facsimiles (faxes) will be 

accepted. 

Comments, data, and other 

information submitted to DOE 

electronically should be provided in 

PDF (preferred), Microsoft Word or 

Excel, WordPerfect, or text (ASCII) file 

format. Provide documents that are not 

secured, written in English and free of 

any defects or viruses. Documents 

should not contain special characters or 

any form of encryption and, if possible, 

they should carry the electronic 

signature of the author. 

Campaign form letters. Please submit 

campaign form letters by the originating 

organization in batches of between 50 to 

500 form letters per PDF or as one form 

letter with a list of supporters’ names 

compiled into one or more PDFs. This 

reduces comment processing and 

posting time. 

Confidential Business Information. 

According to 10 CFR 1004.11, any 

person submitting information that he 

or she believes to be confidential and 

exempt by law from public disclosure 

should submit via email, postal mail, or 

hand delivery two well-marked copies: 

One copy of the document marked 

confidential including all the 

information believed to be confidential, 

and one copy of the document marked 

‘‘non-confidential’’ with the information 

believed to be confidential deleted. 

Submit these documents via email or on 

a CD, if feasible. DOE will make its own 

determination about the confidential 

status of the information and treat it 

according to its determination. 

Factors of interest to DOE when 

evaluating requests to treat submitted 

information as confidential include (1) a 

description of the items, (2) whether 

and why such items are customarily 

treated as confidential within the 

industry, (3) whether the information is 

generally known by or available from 

other sources, (4) whether the 

information has previously been made 

available to others without obligation 

concerning its confidentiality, (5) an 

explanation of the competitive injury to 

the submitting person which would 

result from public disclosure, (6) when 

such information might lose its 

confidential character due to the 

passage of time, and (7) why disclosure 

of the information would be contrary to 

the public interest. 

It is DOE’s policy that all comments 

may be included in the public docket, 

without change and as received, 

including any personal information 

provided in the comments (except 

information deemed to be exempt from 

public disclosure). 

DOE considers public participation to 

be a very important part of the process 

for developing test procedures and 

energy conservation standards. DOE 

actively encourages the participation 

and interaction of the public during the 

comment period in each stage of the 

rulemaking process. Interactions with 

and between members of the public 

provide a balanced discussion of the 

issues and assist DOE in the rulemaking 

process. Anyone who wishes to be 

added to the DOE mailing list to receive 

future notices and information about 

this process should contact Appliance 

and Equipment Standards Program staff 

at (202) 287–1445 or via email at 

Manufactured_Housing@ee.doe.gov. 

Signed in Washington, DC, on July 31, 

2018. 

Cathy Tripodi, 

Acting Assistant Secretary, Energy Efficiency 

and Renewable Energy. 

[FR Doc. 2018–16650 Filed 8–2–18; 8:45 am] 

BILLING CODE 6450–01–P 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Parts 308 and 327 

RIN 3064–AE75 

Rules of Practice and Procedure 

AGENCY: Federal Deposit Insurance 

Corporation. 

ACTION: Notice of proposed rulemaking 

and request for comments. 

SUMMARY: The Federal Deposit 

Insurance Corporation (FDIC) proposes 

to amend its rules of practice and 

procedure to remove duplicative, 

descriptive regulatory language related 

to civil money penalty (CMP) amounts 

that restates existing statutory language 

regarding such CMPs, codify Congress’s 

recent change to CMP inflationadjustments in the FDIC’s regulations, 

and direct readers to an annually 

published notice in the Federal 

Register—rather than the Code of 

Federal Regulations (CFR)—for 

information regarding the maximum 

CMP amounts that can be assessed after 

inflation adjustments. These revisions 

are intended to simplify the CFR by 

removing unnecessary and redundant 

text and to make it easier for readers to 

locate the current, inflation-adjusted 

maximum CMP amounts by presenting 

these amounts in an annually published 

chart. Additionally, the FDIC proposes 

to correct four errors and revise crossreferences currently found in its rules of 

practice and procedure. 

DATES: Comments must be received by 

October 2, 2018. 

ADDRESSES: You may submit comments, 

identified by RIN 3064–AE75, by any of 

the following methods: 

• Agency website: http://

www.fdic.gov/regulations/laws/Federal/. 

Follow the instructions for submitting 

comments on the Agency website. 

• Email: Comments@fdic.gov. Include 

the RIN 3064–AE75 in the subject line 

of the message. 

• Mail: Robert E. Feldman, Executive 

Secretary, Attention: Comments, Federal 

Deposit Insurance Corporation, 550 17th 

Street NW, Washington, DC 20429. 

• Hand Delivery: Comments may be 

hand-delivered to the guard station at 

the rear of the 550 17th Street Building 

(located on F Street) on business days 

between 7 a.m. and 5 p.m. 

Public Inspection: All comments 

received must include the agency name 

and RIN for this rulemaking. All 

comments received will be posted 

without change to http://www.fdic.gov/ 

regulations/laws/Federal/—including 

any personal information provided—for 

public inspection. Paper copies of 

public comments may be ordered from 

the FDIC Public Information Center, 

3501 North Fairfax Drive, Room E–1002, 

Arlington, VA 22226 by telephone at 

(877) 275–3342 or (703) 562–2200. 

FOR FURTHER INFORMATION CONTACT: 

Graham N. Rehrig, Senior Attorney, 

Legal Division, (202) 898–3829, 

grehrig@fdic.gov, or Sydney Mayer, 

Attorney, Legal Division, (202) 898– 

3669. 

SUPPLEMENTARY INFORMATION: 


amozie on DSK3GDR082PROD with PROPOSALS1
Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Proposed Rules 38081 

1See 12 CFR 19.240 and 83 FR 1657 (Jan. 12, 

2018) (table containing the CMP adjustments 

published by the Office of the Comptroller of 

Currency); 12 CFR 263.65 (table containing the CMP 

adjustments published by the Board of Governors 

of the Federal Reserve System); 12 CFR 747.1001 

(table containing the CMP adjustments published 

by the National Credit Union Association). 

2See, e.g., 12 U.S.C. 1972(2)(F) (authorizing the 

FDIC to impose CMPs for violations of the Bank 

Holding Company Act of 1970 related to prohibited 

tying arrangements); 15 U.S.C. 78u-2 (authorizing 

the FDIC to impose CMPs for violations of certain 

provisions of the Securities Exchange Act of 1934); 

42 U.S.C. 4012a(f) (authorizing the FDIC to impose 

CMPs for pattern or practice violations of the Flood 

Disaster Protection Act). 

3For example, 12 U.S.C. 1818(i)(2) provides for 

three tiers of CMPs, with the size of the CMP 

increasing with the gravity of the misconduct. 

4See The Federal Civil Penalties Inflation 

Adjustment Act of 1990, Public Law 101–410. 

5See section 2 of the Federal Civil Penalties 

Inflation Adjustment Act of 1990. Public Law 101– 

410, 104 Stat. 890 (amended 2015) (codified as 

amended at 28 U.S.C. 2461 note). 

6See The Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 2015, Public 

Law 114–74, sec. 701, 129 Stat. 584 (2015 

Adjustment Act). Although the 2015 Adjustment 

Act increased the maximum penalty that may be 

assessed under each applicable statute, the FDIC 

still possesses discretion to impose CMP amounts 

below the maximum level in accordance with the 

severity of the misconduct at issue. When making 

a determination as to the appropriate level of any 

given penalty, the FDIC is guided by statutory 

factors set forth in 12 U.S.C. 1818(i)(2)(G) and those 

factors identified in the Interagency Policy 

Statement Regarding the Assessment of CMPs by 

the Federal Financial Institutions Regulatory 

Agencies. See 63 FR 30227 (June 3, 1998). Such 

factors include, but are not limited to, the gravity 

and duration of the misconduct and the intent 

related to the misconduct. 

7See 2015 Adjustment Act at sec. 701(b). 

8See Public Law 101–410, sec. 3(2), 104 Stat. 890 

(amended 2015) (codified as amended at 28 U.S.C. 

2461 note). 

9Public Law 114–74, sec. 701(b), 129 Stat. 584. 

10See 83 FR 1519, available at https://

www.fdic.gov/news/board/2017/2017-12-19-noticesum-b-fr.pdf. 

11See Public Law 114–74, sec. 701(b), 129 Stat. 

584. 

12OMB, Implementation of Penalty Inflation 

Adjustments for 2018, Pursuant to the Federal Civil 

Penalties Inflation Adjustment Act Improvements 

Act of 2015, M–18–03 (OMB Guidance), available 

at https://www.whitehouse.gov/wp-content/ 

uploads/2017/11/M-18-03.pdf. 

13OMB Guidance at 4 (citing 81 FR 41438 (June 

27, 2016) (Social Security Administration) (codified 

at 29 CFR 498.103(g))). 

14The OCC, the FRB, and the National Credit 

Union Association (NCUA) provide a simplified list 

in a tabular format, identifying each enabling 

statute and the associated maximum CMP amount, 

adjusted for inflation. See 12 CFR 19.240 and 83 FR 

1657 (Jan. 12, 2018) (table containing the OCC’s 

CMP adjustments); 12 CFR 263.65 (table containing 

the FRB’s CMP adjustments); 12 CFR 747.1001 

(table containing the NCUA’s CMP adjustments). 

15See 56 FR 37968 (Aug. 9, 1991). 

I. Policy Objectives 

The policy objective of the Proposed 

Rule is to simplify the presentation of 

maximum CMP amounts within 12 CFR 

part 308 to support ease of reference and 

public understanding. The Proposed 

Rule will amend the presentation of 

maximum CMP limits to help ensure 

consistency with similar statutes of 

other Federal financial regulators.1

Additionally, the Proposed Rule will 

implement recent Office of Management 

and Budget (OMB) guidance on 

simplifying the publication of annual 

inflation adjustments. 

II. Background 

The FDIC assesses CMPs under 

section 8(i) of the Federal Deposit 

Insurance Act (FDIA) (12 U.S.C. 1818) 

and a variety of other statutes.2 Congress 

has established maximum penalties that 

can be assessed under these statutes. In 

many cases, these statutes contain 

multiple penalty tiers, permitting the 

assessment of penalties at various levels 

depending on the severity of the 

misconduct at issue.3

Since 1990, Congress has required 

Federal agencies with authority to 

impose CMPs to periodically adjust the 

maximum CMP amounts these agencies 

are authorized to impose.4 These 

periodic updates have helped to 

‘‘maintain the deterrent effect of civil 

monetary penalties and promote 

compliance with the law.’’ 5 In 2015, 

Congress revised the process by which 

Federal agencies adjust applicable CMPs 

for inflation.6 Under the 2015 

Adjustment Act, the FDIC is required to 

make annual adjustments to its 

maximum CMP amounts to account for 

inflation.7 These adjustments apply to 

all CMPs covered by the 2015 

Adjustment Act.8 The 2015 Adjustment 

Act requires annual adjustments be 

made by January 15 of each year.9 The 

FDIC’s 2018 adjustments were 

published on January 12, 2018.10

The 2015 Adjustment Act directs 

Federal agencies to follow guidance 

issued by the OMB by December 15 of 

each year when calculating new 

maximum penalty amounts.11 The OMB 

issued guidance for the 2018 CMP 

adjustments on December 15, 2017.12

The OMB Guidance noted, ‘‘Some 

agencies have chosen to remove their 

specific penalty amounts from the CFR 

and have instead codified the statutory 

formula for inflation adjustments. 

Agencies must still calculate and 

publish their penalty adjustments in the 

Federal Register.’’ 13

III. Description and Expected Effects of 

the Proposed Rule 

The FDIC proposes amending its rules 

of practice and procedure to remove 

from the CFR descriptive regulatory 

language related to maximum CMP 

amounts that duplicates statutory 

language, codify the statutory formula 

for inflation adjustments to the 

maximum CMP amounts, and direct 

readers to a table published annually in 

the Federal Register, containing the 

inflation-adjusted maximum CMP 

amounts. These proposed changes 

would be consistent with the OMB 

Guidance and the practices of other 

Federal regulators. 

Currently, 12 CFR 308.116(b) and 

308.132(d) contain the maximum CMP 

amounts that may be assessed for 

violations of various statutes, along with 

lengthy descriptions of these statutes. 

Rather than providing any interpretation 

of these statutes or providing guidance 

regarding the assessment of CMPs for 

violations of these statutes, the 

descriptive language contained in 

§§ 308.116(b) and 308.132(d) merely 

restates the enabling statutory language. 

The FDIC’s current format for 

identifying inflation-adjusted CMP 

figures differs significantly from the 

formats published by other prudential 

regulators 14 and makes it more difficult 

for readers to locate applicable 

maximum CMP amounts. Accordingly, 

the FDIC proposes removing descriptive 

language found in §§ 308.116(b) and 

308.132(d). The FDIC believes that these 

changes will remove unnecessary and 

redundant language from the CFR and 

improve readability. 

A sample annual table containing the 

current maximum CMP amounts— 

effective as of January 15, 2018— 

appears at the end of this section, for 

reference. Under the Proposed Rule, the 

FDIC would calculate and publish a 

similar chart with inflation-adjusted 

figures in the Federal Register on or 

before January 15 of each calendar year. 

The FDIC, however, proposes to retain 

language in § 308.116(a), (c), and (d) 

concerning violations of the Change in 

Bank Control Act. These regulations, 

which the FDIC implemented in 1991, 

address requests for a hearing, 

mitigating factors, and the consequences 

of a respondent’s failure to answer.15

The language in current § 308.116(b)(1) 

through (3), however, repeats the 

relevant statutory language of 12 U.S.C. 

1817(j)(16)(A)-(D). Further, current 

§ 308.116(b)(4) merely contains inflation 

adjustments. Therefore, the FDIC 

proposes removing current § 308.116(b) 

and instead directing readers to 

§ 308.132(d) to determine current 

maximum CMP amounts. 

The FDIC also proposes to keep 

language concerning the late filing of 

Call Reports at current § 308.132(d)(1) 

and (d)(3). 12 U.S.C. 1817(a) provides 

the maximum CMP amounts for the late 


amozie on DSK3GDR082PROD with PROPOSALS1
38082 Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Proposed Rules 

16See 56 FR 37968, 37992–93 (Aug. 9, 1991). 17For example, current section 

308.132(d)(1)(i)(A) states, ‘‘the amount assessed 

shall be the greater of [an inflation-adjusted daily 

penalty] or 1⁄1,000th of the institution’s total assets 

(1/10th of a basis point)’’ when it should read, ‘‘the 

amount assessed shall be the greater of [an 

inflation-adjusted daily penalty] or 1/100,000th of 

the institution’s total assets (1/10th of a basis 

point).’’ (Emphasis added). 18The maximum penalty amount is per day, 

unless otherwise indicated. 19The maximum penalty amount for an 

institution is the lesser of this amount or 1 percent 

of total assets. 20 12 U.S.C. 1817(a) provides the maximum CMP 

amounts for the late filing of Call Reports. In 1991, 

however, the FDIC issued regulations that further 

subdivided these amounts based upon the size of 

the institution and the lateness of the filing. See 56 

FR 37968, 37992–93 (Aug. 9, 1991), to be recodified at 12 CFR 308.132(e)(1). These adjusted 

subdivided amounts are found at the end of this 

chart. 

21The maximum penalty amount for an 

institution is the lesser of this amount or 1 percent 

of total assets. 

22The maximum penalty amount for an 

institution is the lesser of this amount or 1 percent 

of total assets. 

23The maximum penalty amount for an 

institution is the lesser of this amount or 1 percent 

of total assets. 

24These amounts also apply to CMPs in statutes 

that cross-reference 12 U.S.C. 1818, such as 12 

U.S.C. 2601, 2804(b), 3108(b), 3349(b), 4009(a), 

4309(a), 4717(b); 15 U.S.C. 1607(a), 1681s(b), 

1691(b), 1691c(a), 1693o(a); 42 U.S.C. 3601. 

25The maximum penalty amount for an 

institution is the lesser of this amount or 1 percent 

of total assets. 

26The $122-per-day maximum CMP under 12 

U.S.C. 1828(h), for failure or refusal to pay any 

assessment, applies only when the assessment is 

less than $10,000. When the amount of the 

assessment is $10,000 or more, the maximum CMP 

under section 1828(h) is 1 percent of the amount 

of the assessment for each day that the failure or 

refusal continues. 

27The maximum penalty amount for an 

institution is the lesser of this amount or 1 percent 

of total assets. 

28The maximum penalty amount for an 

institution is the greater of this amount or 1/ 

100,000th of the institution’s total assets. 

29The maximum penalty amount for an 

institution is the greater of this amount or 1/ 

50,000th of the institution’s total assets. 

30The maximum penalty amount for an 

institution is the lesser of this amount or 1 percent 

of total assets. 

filing of Call Reports. In 1991, however, 

the FDIC issued regulations that further 

subdivided these amounts based upon 

the size of the institution and the 

lateness of the filing.16 These 

regulations accordingly differ from other 

provisions found in § 308.132(d) that 

simply restate relevant statutory 

language regarding maximum CMP 

amounts. The Proposed Rule would 

merge language from current 

§ 308.132(d)(1) and (3) into a new 

§ 308.132(e), since, aside from the 

differing penalty amounts, these two 

current subsections contain similar 

language. The new § 308.132(e) would 

direct readers to the Federal Register to 

determine the applicable inflationadjusted penalty amounts. 

The FDIC proposes correcting four 

errors currently located at 

§ 308.132(d)(1) and (3) concerning the 

maximum amount that generally will be 

assessed for violations of 12 U.S.C. 

1464(v) and 1817(a) regarding the late 

filing of Call Reports by certain small 

institutions. The current text contains 

the inadvertent overstatement of four 

fractions of an institution’s total assets 

that are paired with correctly stated 

basis-point figures. These corrections 

would align the listed fractions of an 

institution’s total assets with the listed 

basis-point calculations, and these 

corrections would be reflected in the 

annual Federal Register CMP notice.17

Lastly, the FDIC proposes to revise 

cross-references found at 12 CFR 

308.502(a)(6), 12 CFR 308.502(b)(4), 12 

CFR 308.530, and 12 CFR 327.3(c) to 

reflect the proposed revisions to 12 CFR 

308.132(d). 

Since the Proposed Rule would 

amend the presentation of maximum 

CMP levels in the Federal Register, the 

FDIC believes the rule will not pose any 

regulatory costs to IDIs or cost to the 

public in general. 

SAMPLE CIVIL MONEY PENALTY TABLE

U.S. Code citation Adjusted Maximum CMP18

(Beginning January 15, 2018) 

12 U.S.C. 1464(v): 

Tier One CMP ........................................................................................................ $3,928 

Tier Two CMP ........................................................................................................ $39,278 

Tier Three CMP19 .................................................................................................. $1,963,870 

12 U.S.C. 1467(d) ......................................................................................................... $9,819 

12 U.S.C. 1817(a): 

Tier One CMP20 .................................................................................................... $3,928 

Tier Two CMP ........................................................................................................ $39,278 

Tier Three CMP21 .................................................................................................. $1,963,870 

12 U.S.C. 1817(c): 

Tier One CMP ........................................................................................................ $3,591 

Tier Two CMP ........................................................................................................ $35,904 

Tier Three CMP22 .................................................................................................. $1,795,216 

12 U.S.C. 1817(j)(16): 

Tier One CMP ........................................................................................................ $9,819 

Tier Two CMP ........................................................................................................ $49,096 

Tier Three CMP23 .................................................................................................. $1,963,870 

12 U.S.C. 1818(i)(2) 24

Tier One CMP ........................................................................................................ $9,819 

Tier Two CMP ........................................................................................................ $49,096 

Tier Three CMP25 .................................................................................................. $1,963,870 

12 U.S.C. 1820(e)(4) ..................................................................................................... $8,977

12 U.S.C. 1820(k)(6) ..................................................................................................... $323,027 

12 U.S.C. 1828(a)(3) ..................................................................................................... $122 

12 U.S.C. 1828(h) 26

For assessments < $10,000 .................................................................................. $122 

12 U.S.C. 1829b(j) ........................................................................................................ $20,521 

12 U.S.C. 1832(c) ......................................................................................................... $2,852 

12 U.S.C. 1884 .............................................................................................................. $285 

12 U.S.C. 1972(2)(F): 

Tier One CMP ........................................................................................................ $9,819 

Tier Two CMP ........................................................................................................ $49,096 


amozie on DSK3GDR082PROD with PROPOSALS1
Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Proposed Rules 38083 

31 12 U.S.C. 4802. 32 5 U.S.C. 601 et seq. 

SAMPLE CIVIL MONEY PENALTY TABLE—Continued 

U.S. Code citation Adjusted Maximum CMP18

(Beginning January 15, 2018) 

Tier Three CMP27 .................................................................................................. $1,963,870 

12 U.S.C. 3909(d) $2,443 

15 U.S.C. 78u–2 

Tier One CMP (individuals) .................................................................................... $9,239 

Tier One CMP (others) .......................................................................................... $92,383 

Tier Two CMP (individuals) .................................................................................... $92,383 

Tier Two CMP (others) .......................................................................................... $461,916 

Tier Three CMP (individuals) ................................................................................. $184,767 

Tier Three penalty (others) .................................................................................... $923,831 

15 U.S.C. 1639e(k): 

First violation .......................................................................................................... $11,279 

Subsequent violations ............................................................................................ $22,556 

31 U.S.C. 3802 $11,181 

42 U.S.C. 4012a(f) $2,133 

CFR Citation Adjusted Presumptive CMP 

(Beginning January 15, 2018) 

12 CFR 308.132(e)(1)(i): 

Institutions with $25 million or more in assets: 

1 to 15 days late ............................................................................................. $538 

16 or more days late ....................................................................................... $1,078 

Institutions with less than $25 million in assets: 

1 to 15 days late 28 ......................................................................................... $180 

16 or more days late 29 ................................................................................... $359 

12 CFR 308.132(e)(1)(ii): 

Institutions with $25 million or more in assets 

1 to 15 days late ............................................................................................. $897 

16 or more days late ..................................................................................................... $1,795

Institutions with less than $25 million in assets 

1 to 15 days late .................................................................................................... 1/50,000th of the institution’s total assets. 

16 or more days late .............................................................................................. 1/25,000th of the institution’s total assets. 

12 CFR 308.132(e)(2) ................................................................................................... $39,278 

12 CFR 308.132(e)(3): 

Tier One CMP ........................................................................................................ $3,928 

Tier Two CMP ........................................................................................................ $39,278 

Tier Three CMP30 .................................................................................................. $1,963,870 

IV. Alternatives Considered 

During preliminary discussions 

regarding the Proposed Rule, the FDIC 

considered possible alternatives to 

issuing the Proposed Rule. The primary 

alternative the FDIC considered was to 

maintain the current statutory language 

in the CFR and Federal Register as well 

as the CMP presentation format. This 

alternative (1) keeps the redundant 

statutory language in the CFR and 

Federal Register, (2) does not improve 

the clarity and readability of the 

maximum CMPs, and (3) does not 

address the fact that the CMP 

presentation format is inconsistent with 

the other prudential regulators. 

Therefore, the FDIC believes the 

Proposed Rule will support ease of 

reference and public understanding 

more so than the alternative. 

V. Request for Comment 

The FDIC believes that these changes 

to Part 308 are ministerial and technical 

and that, therefore, notice-and-comment 

rulemaking is unnecessary. Nonetheless, 

in the interest of transparency, the FDIC 

invites comments on all aspects of this 

Proposed Rule. Commenters are 

specifically encouraged to identify any 

technical issues raised by the Proposed 

Rule. 

VI. Regulatory Analysis 

Riegle Community Development and 

Regulatory Improvement Act 

Section 302 of the Riegle Community 

Development and Regulatory 

Improvement Act of 1994 31 requires 

that each Federal banking agency, in 

determining the effective date and 

administrative compliance requirements 

for new regulations that impose 

additional reporting, disclosure, or other 

requirements on insured depository 

institutions, consider, consistent with 

principles of safety and soundness and 

the public interest, any administrative 

burdens that such regulations would 

place on depository institutions, 

including small depository institutions, 

and customers of depository 

institutions, as well as the benefits of 

such regulations. In addition, in order to 

provide an adequate transition period, 

new regulations that impose additional 

reporting, disclosures, or other new 

requirements on IDIs generally must 

take effect on the first day of a calendar 

quarter that begins on or after the date 

on which the regulations are published 

in final form. 

The Proposed Rule would not impose 

any new or additional reporting, 

disclosures, or other requirements on 

insured depository institutions. 

Therefore, the Proposed Rule is not 

subject to the requirements of this 

statute. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

generally requires that, in connection 

with a rulemaking, an agency prepare 

and make available for public comment 

an initial regulatory flexibility analysis 

describing the impact of the Proposed 

Rule on small entities.32 A regulatory 

flexibility analysis is not required, 


amozie on DSK3GDR082PROD with PROPOSALS1
38084 Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Proposed Rules 

33 13 CFR 121.201 (as amended, effective 

December 2, 2014). 

34FDIC-supervised institutions are set forth in 12 

U.S.C. 1813(q)(2). 

35Public Law 105–277, 112 Stat. 2681 (1998). 

36 44 U.S.C. 3501 et seq. 

37Public Law 106–102, 113 Stat. 1338 (Nov. 12, 

1999). 

however, if the agency certifies that the 

rule will not have a significant 

economic impact on a substantial 

number of small entities. The Small 

Business Administration has defined 

‘‘small entities’’ to include banking 

organizations with total assets less than 

or equal to $550 million.33 The FDIC 

supervises 3,603 depository 

institutions,34 of which 2,885 are 

defined as small banking entities by the 

terms of the RFA. For the reasons 

described below and under section 

605(b) of the RFA, the FDIC certifies 

that the Proposed Rule will not have a 

significant economic impact on a 

substantial number of small entities. 

The FDIC believes the proposed 

amendments to 12 CFR part 308 will 

have a negligible impact on small 

entities. For a detailed description of the 

Proposed Rule and its expected effects, 

please review Section III above. The 

proposed revisions are intended to 

simplify the text of the CFR by removing 

unnecessary and redundant text in order 

to make it easier for readers to reference 

and understand the current maximum 

CMP amounts. 

The Omnibus Consolidated and 

Emergency Supplemental 

Appropriations Act, 1999: Assessment 

of Federal Regulations and Policies on 

Families 

The FDIC determined that the 

Proposed Rule will not affect family 

wellbeing within the meaning of section 

654 of the Omnibus Consolidated and 

Emergency Supplemental 

Appropriations Act, 1999.35

Paperwork Reduction Act 

The Proposed Rule does not create 

any new, or revise any existing, 

collections of information under section 

3504(h) of the Paperwork Reduction Act 

of 1980.36 Consequently, no information 

collection request will be submitted to 

the OMB for review. 

Plain Language Act 

Section 722 of the Gramm-LeachBliley Act requires the FDIC to use plain 

language in all proposed and final rules 

published after January 1, 2000.37

Accordingly, the FDIC has attempted to 

write the Proposed Rule in clear and 

comprehensible language. 

List of Subjects 

12 CFR Part 308 

Administrative practice and 

procedure, Bank deposit insurance, 

Banks, Banking, Claims, Crime, Equal 

access to justice, Fraud, Investigations, 

Lawyers, Penalties. 

12 CFR Part 327 

Bank deposit insurance, Banks, 

Savings Associations. 

For the reasons set forth in the 

preamble, the FDIC proposes to amend 

12 CFR parts 308 and 327 as follows: 

PART 308—RULES OF PRACTICE AND 

PROCEDURE 

■ 1. The authority citation for part 308 

continues to read as follows: 

Authority: 5 U.S.C. 504, 554–557; 12 

U.S.C. 93(b), 164, 505, 1464, 1467(d), 1467a, 

1468, 1815(e), 1817, 1818, 1819, 1820, 1828, 

1829, 1829(b), 1831i, 1831m(g)(4), 1831o, 

1831p–1, 1832(c), 1884(b), 1972, 3102, 

3108(a), 3349, 3909, 4717, 5412(b)(2)(C), 

5414(b)(3); 15 U.S.C. 78(h) and (i), 78o(c)(4), 

78o–4(c), 78o–5, 78q–1, 78s, 78u, 78u–2, 

78u–3, 78w, 6801(b), 6805(b)(1); 28 U.S.C. 

2461 note; 31 U.S.C. 330, 5321; 42 U.S.C. 

4012a; Pub. L. 104–134, sec. 31001(s), 110 

Stat. 1321; Pub. L. 109–351, 120 Stat. 1966; 

Pub. L. 111–203, 124 Stat. 1376; Pub. L. 114– 

74, sec. 701, 129 Stat. 584. 

■ 2. Amend § 308.116 by revising 

paragraph (b) to read as follows: 

§ 308.116 Assessment of penalties. 

* * * * * 

(b) Maximum penalty amounts. Under 

12 U.S.C. 1817(j)(16), a civil money 

penalty may be assessed for violations 

of change in control of insured 

depository institution provisions in the 

maximum amounts calculated and 

published in accordance with 12 CFR 

308.132(d). 

* * * * * 

■ 3. Amend § 308.132 by revising 

paragraph (d) and adding paragraph (e) 

to read as follows: 

§ 308.132 Assessment of penalties. 

* * * * * 

(d) Maximum civil money penalty 

amounts. Under the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015, the Board of 

Directors or its designee may assess civil 

money penalties in the maximum 

amounts using the following framework: 

(1) Statutory formula to calculate 

inflation adjustments. The FDIC is 

required by statute to annually adjust 

for inflation the maximum amount of 

each civil money penalty within its 

jurisdiction to administer. The inflation 

adjustment is calculated by multiplying 

the maximum dollar amount of the civil 

money penalty for the previous calendar 

year by the cost-of-living inflation 

adjustment multiplier provided 

annually by the Office of Management 

and Budget and rounding the total to the 

nearest dollar. 

(2) Notice of inflation adjustments. By 

January 15 of each calendar year, the 

FDIC will announce in the Federal 

Register the maximum penalties that 

may be assessed after each January 15, 

based on the formula in paragraph (d)(1) 

of this section, for conduct occurring on 

or after November 2, 2015. 

(e) Civil money penalties for 

violations of 12 U.S.C. 1464(v) and 12 

U.S.C. 1817(a)—(1) Late Filing—Tier 

One penalties. Where an institution fails 

to make or publish its Report of 

Condition and Income (Call Report) 

within the appropriate time periods, but 

where the institution maintains 

procedures in place reasonably adapted 

to avoid inadvertent error and the late 

filing occurred unintentionally and as a 

result of such error, or where the 

institution inadvertently transmitted a 

Call Report that is minimally late, the 

Board of Directors or its designee may 

assess a Tier One civil money penalty. 

The amount of such a penalty shall not 

exceed the maximum amount calculated 

and published annually in the Federal 

Register under paragraph (d)(2) of this 

section. Such a penalty may be assessed 

for each day that the violation 

continues. 

(i) First offense. Generally, in such 

cases, the amount assessed shall be an 

amount calculated and published 

annually in the Federal Register under 

paragraph (d)(2) of this section. The 

Federal Register document will contain 

a presumptive penalty amount per day 

for each of the first 15 days for which 

the failure continues, and a presumptive 

amount per day for each subsequent 

days the failure continues, beginning on 

the 16th day. The annual Federal 

Register notice will also provide penalty 

amounts that generally may be assessed 

for institutions with less than 

$25,000,000 in assets. 

(ii) Subsequent offense. The FDIC will 

calculate and publish in the Federal 

Register a presumptive daily Tier One 

penalty to be imposed where an 

institution has been delinquent in 

making or publishing its Call Report 

within the preceding five quarters. The 

published penalty shall identify the 

amount that will generally be imposed 

per day for each of the first 15 days for 

which the failure continues, and the 

amount that will generally be imposed 

per day for each subsequent day the 

failure continues, beginning on the 16th 

day. The annual Federal Register 


amozie on DSK3GDR082PROD with PROPOSALS1
Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Proposed Rules 38085 

document will also provide penalty 

amounts that generally may be assessed 

for institutions with less than 

$25,000,000 in assets. 

(iii) Lengthy or repeated violations. 

The amounts set forth in this paragraph 

(e)(1) will be assessed on a case-by-case 

basis where the amount of time of the 

institution’s delinquency is lengthy or 

the institution has been delinquent 

repeatedly in making or publishing its 

Call Reports. 

(iv) Waiver. Absent extraordinary 

circumstances outside the control of the 

institution, penalties assessed for late 

filing shall not be waived. 

(2) Late-filing—Tier Two penalties. 

Where an institution fails to make or 

publish its Call Report within the 

appropriate time period, the Board of 

Directors or its designee may assess a 

Tier Two civil money penalty for each 

day the failure continues. The amount 

of such a penalty will not exceed the 

maximum amount calculated and 

published annually in the Federal 

Register under paragraph (d)(2) of this 

section. 

(3) False or misleading reports or 

information—(i) Tier One penalties. In 

cases in which an institution submits or 

publishes any false or misleading Call 

Report or information, the Board of 

Directors or its designee may assess a 

Tier One civil money penalty for each 

day the information is not corrected, 

where the institution maintains 

procedures in place reasonably adapted 

to avoid inadvertent error and the 

violation occurred unintentionally and 

as a result of such error, or where the 

institution inadvertently transmits a 

Call Report or information that is false 

or misleading. The amount of such a 

penalty will not exceed the maximum 

amount calculated and published 

annually in the Federal Register under 

paragraph (d)(2) of this section. 

(ii) Tier Two penalties. Where an 

institution submits or publishes any 

false or misleading Call Report or other 

information, the Board of Directors or its 

designee may assess a Tier Two civil 

money penalty for each day the 

information is not corrected. The 

amount of such a penalty will not 

exceed the maximum amount calculated 

and published annually in the Federal 

Register under paragraph (d)(2) of this 

section. 

(iii) Tier Three penalties. Where an 

institution knowingly or with reckless 

disregard for the accuracy of any Call 

Report or information submits or 

publishes any false or misleading Call 

Report or other information, the Board 

of Directors or its designee may assess 

a Tier Three civil money penalty for 

each day the information is not 

corrected. The penalty shall not exceed 

the lesser of 1 percent of the 

institution’s total assets per day or the 

amount calculated and published 

annually in the Federal Register under 

paragraph (d)(2) of this section. 

(4) Mitigating factors. The amounts set 

forth in paragraphs (e)(1) through (3) of 

this section may be reduced based upon 

the factors set forth in paragraph (b) of 

this section. 

■ 4. Amend § 308.502 by revising 

paragraphs (a)(6) and (b)(4) to read as 

follows: 

§ 308.502 Basis for civil penalties and 

assessments. 

(a) * * * 

(6) The amount of any penalty 

assessed under paragraph (a)(1) of this 

section will be adjusted for inflation in 

accordance with section 308.132(d) of 

this part. 

* * * * * 

(b) * * * 

(4) The amount of any penalty 

assessed under paragraph (a)(1) of this 

section will be adjusted for inflation in 

accordance with section 308.132(d) of 

this part. 

* * * * * 

■ 5. Amend § 308.530 by revising 

paragraph (d) to read as follows: 

§ 308.530 Determining the amount of 

penalties and assessments. 

* * * * * 

(d) Civil money penalties that are 

assessed under this subpart are subject 

to annual adjustments to account for 

inflation as required by the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015 (Pub. L. 114– 

74, sec. 701, 129 Stat. 584) (see also 12 

CFR 308.132(d)). 

PART 327—ASSESSMENTS 

■ 6. The authority citation for part 327 

continues to read as follows: 

Authority: 12 U.S.C. 1441, 1813, 1815, 

1817–19, 1821. 

* * * * * 

■ 7. Amend § 327.3 by revising 

paragraph (c) to read as follows: 

§ 327.3 Payment of assessments. 

* * * * * 

(c) Necessary action, sufficient 

funding by institution. Each insured 

depository institution shall take all 

actions necessary to allow the 

Corporation to debit assessments from 

the insured depository institution’s 

designated deposit account. Each 

insured depository institution shall, 

prior to each payment date indicated in 

paragraph (b)(2) of this section, ensure 

that funds in an amount at least equal 

to the amount on the quarterly certified 

statement invoice are available in the 

designated account for direct debit by 

the Corporation. Failure to take any 

such action or to provide such funding 

of the account shall be deemed to 

constitute nonpayment of the 

assessment. Penalties for failure to 

timely pay assessments will be 

calculated and published in accordance 

with 12 CFR 308.132(d). 

* * * * * 

Dated at Washington, DC, on July 19, 2018. 

By order of the Board of Directors. 

Federal Deposit Insurance Corporation. 

Valerie Best, 

Assistant Executive Secretary. 

[FR Doc. 2018–16548 Filed 8–2–18; 8:45 am] 

BILLING CODE 6714–01–P 

FEDERAL HOUSING FINANCE 

AGENCY 

12 CFR Parts 1206 and 1240 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

Office of Federal Housing Enterprise 

Oversight 

12 CFR Part 1750 

RIN 2590–AA95 

Enterprise Capital Requirements 

AGENCY: Federal Housing Finance 

Agency; Office of Federal Housing 

Enterprise Oversight; Department of 

Housing and Urban Development. 

ACTION: Notice of proposed rulemaking; 

extension of comment period. 

SUMMARY: On July 17, 2018, the Federal 

Housing Finance Agency (FHFA) 

published in the Federal Register a 

notice of proposed rulemaking for 

public comment that proposes a new 

regulatory capital framework for the 

Federal National Mortgage Association 

(Fannie Mae) and the Federal Home 

Loan Mortgage Corporation (Freddie 

Mac). The comment period was set to 

expire on September 17, 2018. This 

notice extends the comment period by 

an additional 60 days to allow the 

public additional time to comment on 

the proposed rule. 

DATES: The comment period for the 

proposed rule published at 83 FR 33312 

(July 17, 2018) is extended. Written 

comments must be received on or before 

November 16, 2018. 

ADDRESSES: You may submit your 

comments on the proposed rule, 

identified by regulatory information 


amozie on DSK3GDR082PROD with PROPOSALS1