This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

39622 

Vol. 83, No. 155 

Friday, August 10, 2018 

1 82 FR 39702 (Aug. 22, 2017). 

2This is consistent with the spirit of President 

Trump’s regulatory reform agenda and Executive 

Order 13777. Although the NCUA, as an 

independent agency, is not required to comply with 

Executive Order 13777, the Board has chosen to 

comply with it in spirit and has reviewed all of the 

NCUA’s regulations to that end. 

3 12 CFR 701.21. 

4 GAAP is defined as generally accepted 

accounting principles in the United States as set 

forth in the Financial Accounting Standards Board’s 

(FASB) Accounting Standards Codification (ASC). 

5 12 U.S.C. 1757(5). 

6 12 U.S.C. 1757(5)(A)(i) (emphasis added); 12 

CFR 701.21(g). 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 701 

[RIN 3133–AE88] 

Loans to Members and Lines of Credit 

to Members 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Proposed rule. 

SUMMARY: The NCUA Board (Board) 

proposes to amend its regulations 

regarding loans to members and lines of 

credit to members. The proposal would 

reduce regulatory burden by making 

amendments to improve clarity and to 

make compliance easier. Specifically, 

the Board proposes to make the NCUA’s 

loan maturity requirements more user 

friendly by identifying in one section all 

of the various maturity limits applicable 

to federal credit union (FCU) loans. The 

Board also proposes to make explicit in 

its regulations that the maturity date for 

a ‘‘new loan’’ under generally accepted 

accounting principles (GAAP) is 

calculated from the new date of 

origination. Additionally, the Board 

seeks comment on whether the agency 

should provide longer maturity limits 

for 1–4 family real estate loans and 

other loans permitted by the Federal 

Credit Union Act (FCU Act) such as 

home improvement, mobile home, and 

second mortgage loans. Finally, the 

Board proposes to more clearly express 

the limits for loans to a single borrower 

or group of associated borrowers. 

DATES: Comments must be received on 

or before October 9, 2018. 

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 website: https://

www.ncua.gov/regulation-supervision/ 

Pages/rules/proposed.aspx. Follow the 

instructions for submitting comments. 

• Email: Address to regcomments@

ncua.gov. Include ‘‘[Your name] 

Comments on Proposed Rule 701, Loans 

to Members and Lines of Credit to 

Members’’ in the email subject line. 

• Fax: (703) 518–6319. Use the 

subject line described above for email. 

• Mail: Address to Gerard S. Poliquin, 

Secretary of the Board, National Credit 

Union Administration, 1775 Duke 

Street, Alexandria, Virginia 22314– 

3428. 

• Hand Delivery/Courier: Same as 

mail address. 

Public Inspection: You may view all 

public comments on the NCUA’s 

website at https://www.ncua.gov/ 

regulation-supervision/Pages/rules/ 

proposed.aspx as submitted, except for 

those we cannot post for technical 

reasons. The NCUA will not edit or 

remove any identifying or contact 

information from the public comments 

submitted. You may inspect paper 

copies of comments in the 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 email to OGCMail@

ncua.gov. 

FOR FURTHER INFORMATION CONTACT: 

Thomas I. Zells, Staff Attorney, Office of 

General Counsel, at 1775 Duke Street, 

Alexandria, VA 22314 or telephone: 

(703) 548–2478. 

SUPPLEMENTARY INFORMATION: 

I. Background 

II. Summary of the Proposed Rule 

III. Section-by-Section Analysis 

IV. Regulatory Procedures 

I. Background 

In August 2017, the Board published 

and sought comment on the NCUA’s 

regulatory reform agenda (Agenda).1

The Agenda identifies those regulations 

the Board intends to amend or repeal 

because they are outdated, ineffective, 

or excessively burdensome.2

A number of the items in the Agenda 

relate to the NCUA’s regulations on 

loans to members and lines of credit to 

members.3 In order to provide 

regulatory relief to credit unions, the 

Board proposes to address in this 

rulemaking the substance of several of 

those items and request further public 

comment on another. More specifically, 

the Board proposes to make the NCUA’s 

regulations on loans to members and 

lines of credit to members more user 

friendly by: (1) Identifying in one 

section the various maturity limits 

applicable to FCU loans; (2) clarifying 

that the maturity for a lending action 

that qualifies as a ‘‘new loan’’ under 

GAAP is calculated from the new date 

of origination; 4 (3) seeking comment on 

whether the NCUA should provide for 

longer, more flexible maturity limits on 

certain loans; and (4) more clearly 

expressing the limits in place for loans 

to a single borrower or group of 

associated borrowers. 

II. Summary of the Proposed Rule 

A. Loan Maturity Limits for Federal 

Credit Unions 

Section 107(5) of the FCU Act grants 

FCUs the power ‘‘to make loans, the 

maturities of which shall not exceed 15 

years, except as otherwise provided 

herein. . . .’’ 5 The NCUA implemented 

this general maturity limit in 

§ 701.21(c)(4) of its regulations. Section 

107(5)(A)(i)–(iii) of the FCU Act provide 

exceptions to the general 15-year 

maturity limit, and have been 

implemented in § 701.21(e) through (g) 

of the NCUA’s regulations. Section 

107(5)(A)(i) of the FCU Act, 

implemented in § 701.21(g) of the 

NCUA’s regulations, states that ‘‘a 

residential real estate loan on a one-tofour-family dwelling, including an 

individual cooperative unit, that is or 

will be the principal residence of a 

credit union member, and which is 

secured by a first lien upon such 

dwelling, may have a maturity not 

exceeding thirty years or such other 

limits as shall be set by the National 

Credit Union Administration Board 

(except that a loan on an individual 

cooperative unit shall be adequately 

secured as defined by the Board), 

subject to the rules and regulations of 

the Board[.]’’ 6 Pursuant to the authority 


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Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Proposed Rules 39623 

7 12 CFR 701.21(g)(1) (stating that ‘‘[a] federal 

credit union may make residential real estate loans 

to members, including loans secured by 

manufactured homes permanently affixed to the 

land, with maturities of up to 40 years, or such 

longer period as may be permitted by the NCUA 

Board on a case-by-case basis, subject to the 

conditions of this paragraph[.]’’). 

8 12 U.S.C. 1757(5)(A)(ii) (emphasis added); 12 

CFR 701.21(f). 9 12 CFR 701.21(f)(1) (stating that 

‘‘[n]otwithstanding the general 15-year maturity 

limit on loans to members, a federal credit union 

may make loans with maturities of up to 20 years’’ 

for loans covered by this paragraph.). 10 12 U.S.C. 1757(5)(A)(iii); 12 CFR 701.21(e). 

11ASC 310–20–35–9 & 10. 

12 12 CFR 701.21(g)(1). 

13 12 U.S.C. 1757(5)(A)(x). 

14 12 CFR 701.21(c)(5). 

§ 107(5)(A)(i) of the FCU Act grants the 

Board to set alternate maturities for 

covered 1–4 family real estate loans, the 

Board has established a 40-year 

maximum maturity for such loans and 

has provided that longer periods may be 

permitted by the Board on a case-bycase basis.7 Section 107(5)(A)(ii) of the 

FCU Act, implemented in § 701.21(f) of 

the NCUA’s regulations, states that ‘‘a 

loan to finance the purchase of a mobile 

home, which shall be secured by a first 

lien on such mobile home, to be used 

by the credit union member as his 

residence, a loan for the repair, 

alteration, or improvement of a 

residential dwelling which is the 

residence of a credit union member, or 

a second mortgage loan secured by a 

residential dwelling which is the 

residence of a credit union member, 

shall have a maturity not to exceed 15 

years or any longer term which the 

Board may allow[.]’’ 8 Pursuant to the 

authority section 107(5)(A)(ii) grants the 

Board to set alternate maturities for 

covered loans, the Board has established 

a 20-year maximum maturity for such 

loans.9 Finally, section 107(5)(A)(iii) of 

the FCU Act, implemented in 

§ 701.21(e) of the NCUA’s regulations, 

states that ‘‘a loan secured by the 

insurance or guarantee of, or with 

advance commitment to purchase the 

loan by, the Federal Government, a State 

government, or any agency of either may 

be made for the maturity and under the 

terms and conditions specified in the 

law under which such insurance, 

guarantee, or commitment is 

provided[.]’’ 10

i. Identifying the Various Maturity 

Limits in One Section 

Presently, § 701.21 of the NCUA’s 

regulations addresses various loan 

maturity limits in paragraphs (c), (e), (f), 

and (g). Paragraph (c) provides the 

general rules applicable to all loans to 

members and, where indicated, all lines 

of credit (including credit cards) to 

members, except as otherwise provided 

in the remaining provisions of § 701.21. 

Paragraph (c)(4) implements the general 

15-year maturity limit that section 

107(5) of the FCU Act places on loans 

to members. Paragraphs (e), (f), and (g) 

of § 701.21 implement the three 

exceptions to this general 15-year limit 

that appear in section 107(5)(A)(i)–(iii) 

of the FCU Act. 

Having the various maturity limits 

spread among numerous sections of the 

NCUA’s regulations, often separated by 

large amounts of regulatory text 

unrelated to maturities, can be 

confusing to the reader and makes it 

more difficult to understand the lending 

regulations. To remedy this, the Board 

proposes to make the NCUA’s loan 

maturity requirements more 

understandable and user-friendly by 

identifying in one section 

(§ 701.21(c)(4)), including crosscitations, all of the maturity limits 

applicable to FCU loans. 

ii. The Treatment of Maturities for 

Lending Actions That Qualify as ‘‘New 

Loans’’ Under GAAP 

The proposal also clarifies that in the 

case of a lending action qualifying as a 

‘‘new loan’’ under GAAP, the maturity 

limit is calculated from the new date of 

origination.11 The Board proposes to 

accomplish this by adding language to 

§ 701.21(c)(4), which articulates the 

general 15-year maturity limit. 

iii. Request for Comment on Providing 

Longer Maturity Limits for Certain 

Loans 

The Board is considering providing 

longer maturity limits for 1–4 family 

real estate loans and other loans (such 

as certain home improvement, mobile 

home, and second mortgage loans) as 

permitted by section 107(5)(A)(i)–(ii) of 

the FCU Act and removing the case-bycase exception the Board can grant. As 

discussed earlier, these maturity limits 

are implemented in § 701.21(f) and (g) of 

the NCUA’s regulations. The case-bycase exception is located in 

§ 701.21(g)(1) of the NCUA’s regulations 

and provides that the Board can permit 

an FCU to make loans with maturities 

that exceed the regulation’s 40-year 

limit ‘‘on a case-by-case basis, subject to 

the conditions of this paragraph (g).’’ 12

The Board believes that more input is 

necessary to determine whether longer 

maturity limits should be adopted and, 

if so, the proper maturity lengths and 

the reasons such longer maturities are 

warranted. As such, the Board asks that 

commenters provide detailed comments 

addressing: (1) Whether the NCUA 

should provide longer maturity limits 

for certain lending actions permitted by 

section 107(5)(A)(i)–(ii) of the FCU Act; 

(2) the appropriate maturity limits for 

such lending actions; (3) whether the 

case-by-case Board exemption should be 

retained and, if so, under what 

circumstances would such exemptions 

be appropriate; and (4) any other issues 

stakeholders believe relevant. The Board 

also requests that commenters consider 

FCU Act limitations when requesting 

relief and changes in this area. 

B. Single Borrower and Group of 

Associated Borrowers Limits 

i. More Clearly Identifying the Various 

Limits 

Currently, three provisions of the 

NCUA’s regulations address limits on 

loans to a single borrower or group of 

associated borrowers: (1) § 701.21(c)(5) 

addresses the general limit; (2) 

§ 701.22(b)(5)(iv) addresses the limit on 

loan participations; and (3) § 723.4(c) 

addresses the limit on commercial 

loans. Because these provisions are 

spread among several sections of the 

NCUA’s regulations, some stakeholders 

are not aware that there are multiple 

limits that apply in different contexts. 

To rectify this, the proposal makes clear 

that all three of these limits exist. Rather 

than move the loans to one borrower or 

group of associated borrowers limits 

that specifically apply to loan 

participations and commercial loans 

from their current regulatory sections to 

the general limit section, the Board 

proposes to include cross-citations to 

the more specific loan participation and 

commercial loan limits in the general 

limit section (§ 701.21(c)(5)). The Board 

believes that inserting cross-citations is 

a more efficient and user friendly way 

to identify that there are multiple 

lending limits throughout the NCUA’s 

regulations. 

Section 701.21(c)(5), as part of the 

general rules on loans and lines of credit 

to members, imposes the FCU Act’s ten 

percent limit on loans and lines of 

credit to any member.13 Specifically, 

§ 701.21(c)(5) requires that ‘‘[n]o loan or 

line of credit advance may be made to 

any member if such loan or advance 

would cause that member to be indebted 

to the Federal credit union upon loans 

and advances made to the member in 

the aggregate amount exceeding 10% of 

the credit union’s total unimpaired 

capital and surplus.’’ 14 Section 

701.21(c)(5) also provides an outdated 

cross-citation to part 723 for the specific 

limit on commercial lending. The Board 

proposes to remove this outdated crosscitation and provide updated references 

to both the current loan participation 


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39624 Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Proposed Rules 

15 12 CFR 701.22(b)(5)(iv). 

16 12 CFR 723.4(c). 

17 12 U.S.C. 1757(5)(A)(x). 

18All citations to §§ 701.20, 701.21, 701.22, and 

part 723 in this preamble section refer to the 

NCUA’s regulations in 12 CFR chapter VII. 

limit in § 701.22(b)(5) and the 

commercial lending limit in § 723.4(c). 

The NCUA also proposes to make 

conforming amendments to update 

cross-citations to the single borrower 

and group of associated borrower limits 

in §§ 701.20(c)(2) and 701.22(b)(1). 

ii. Request for Comment Regarding the 

Limits Applicable to Loan Participations 

and Commercial Loans 

In addition, the NCUA believes that 

providing a universal standard limit for 

loans to a single borrower or group of 

associated borrowers, in lieu of the 

current loan product specific standards, 

may help facilitate compliance and 

reduce regulatory burden. As such, the 

agency seeks stakeholder input on 

whether the agency should provide such 

a universal standard limit. Currently, a 

limit of 15 percent of a federally insured 

credit union’s net worth exists for both 

commercial loans and loan 

participations that may be purchased 

with respect to a single borrower or 

group of associated borrowers. However, 

a waiver is available in the case of the 

loan participations limit and an 

alternate limit is available for 

commercial loans. 

More specifically, the 15 percent limit 

on the aggregate amount of loan 

participations that may be purchased 

with respect to a single borrower or 

group of associated borrowers can be 

waived by the appropriate regional 

director, and, in the case of a federally 

insured, state-chartered credit union, 

with prior written concurrence of the 

appropriate state supervisory 

authority.15 The limit on commercial 

loans does not provide for waiver. 

Instead, it provides that ‘‘the aggregate 

dollar amount of commercial loans to 

any one borrower or group of associated 

borrowers may not exceed the greater of 

15 percent of the federally insured 

credit union’s net worth or $100,000, 

plus an additional 10 percent of the 

credit union’s net worth if the amount 

that exceeds the credit union’s 15 

percent general limit is fully secured at 

all times with a perfected security 

interest by readily marketable collateral 

as defined in § 723.2 of this part. Any 

insured or guaranteed portion of a 

commercial loan made through a 

program in which a federal or state 

agency (or its political subdivision) 

insures repayment, guarantees 

repayment, or provides an advance 

commitment to purchase the loan in 

full, is excluded from this limit.’’ 16

The Board believes that more input is 

necessary to determine whether a 

universal limit would be beneficial and 

should be adopted in place of the 

current product specific limits. As such, 

the Board asks that commenters provide 

comments addressing: (1) Whether the 

NCUA should provide a single universal 

standard limit for commercial loans and 

loan participations that may be 

purchased with respect to a single 

borrower or group of associated 

borrowers; (2) if so, the appropriate 

limit for such a standard; (3) if not, why 

not; and (4) any other issues 

stakeholders believe are relevant to this 

determination. The Board also requests 

that commenters consider FCU Act 

limitations, specifically the general limit 

on loans to a single borrower of ‘‘10 per 

centum of the credit union’s unimpaired 

capital and surplus’’ in section 

107(5)(A)(x), when commenting.17

III. Section-by-Section Analysis 

This proposed rule reduces regulatory 

burden and makes the NCUA’s 

regulations more user-friendly for credit 

unions. As such, it is largely clarifying 

and technical in nature and would 

maintain most of the current language in 

§ 701.21. The proposed changes to 

§ 701.21 and the conforming 

amendments to §§ 701.20 and 701.22 are 

discussed in more detail below.18

Section 701.20 Suretyship and 

Guaranty 

The proposal would make minor 

conforming amendments to § 701.20(c). 

The proposal would make conforming 

amendments to the section governing 

requirements for suretyship or guaranty 

agreements by removing outdated crosscitations to the loans to one borrower or 

group of associated borrowers limit in 

§§ 723.2 and 723.8 of the member 

business lending regulation and adding 

updated cross-citations to 

701.22(b)(5)(iv) of the NCUA’s loan 

participation regulation and 723.4(c) of 

the NCUA’s member business lending 

regulation. 

Section 701.21 

The proposal would divide current 

§ 701.21(c)(4) into two new 

subparagraphs. One paragraph, 

§ 701.21(c)(4)(i), would state the general 

rule that loans carry a 15-year maturity. 

The other, § 701.21(c)(4)(ii), would 

make more explicit that there are 

exceptions to the general 15-year 

maturity limit in § 701.21 (e) through (g) 

for various types of credit union loans. 

The proposal would maintain all of 

current § 701.21(c)(4) in proposed 

§ 701.21(c)(4)(i), which articulates the 

general 15-year maturity limit that exists 

on FCU loans. However, the proposal 

also would add language to clarify that 

the maturity for a lending action that 

qualifies as a new loan under GAAP is 

calculated from the new date of 

origination. 

Section 701.21(c)(4)(ii) of the proposal 

would explicitly state, in three 

subparagraphs, that three exceptions 

exist to the general 15-year maturity 

limit and cross-cite to §§ 701.21(e)–(g), 

which detail them as follows: 

Paragraph (c)(4)(ii)(A) of the proposal 

would explicitly cross-cite to the 

exception to the general 15-year 

maturity limit that exists in § 701.21(e) 

regarding covered loans secured, in full 

or in part, by the insurance or guarantee 

of, or with an advance commitment to 

purchase the loan, in full or in part, by 

the Federal Government, a State 

government or any agency of either. 

Paragraph (c)(4)(ii)(B) of the proposal 

would explicitly cross-cite to the 

exception to the general 15-year 

maturity limit that exists in § 701.21(f) 

regarding covered home improvement, 

mobile home, and second mortgage 

loans. 

Paragraph (c)(4)(ii)(C) of the proposal 

would explicitly cross-cite to the 

exception to the general 15-year 

maturity limit that exists in § 701.21(g) 

regarding covered 1–4 family real estate 

loans. 

The proposal would revise 

§ 701.21(c)(5) to add cross-citations to 

the specific requirements that exist on 

loans to a single borrower or group of 

associated borrowers in the loan 

participation rule, § 701.22(b)(5)(iv), and 

member business lending rule, 

§ 723.4(c). 

The proposal would revise § 701.21(e) 

to make more explicit that the maturity 

limits applicable to loans covered by 

paragraph (e) are notwithstanding the 

general 15-year limit in paragraph (c)(4). 

The proposal would also add a crosscitation to paragraph (c)(4). 

The proposal would retain almost all 

of current § 701.21(f), but would insert 

some additional language to improve 

clarity. 

The proposal would revise 

§ 701.21(f)(1) to make more explicit that 

the maturity limit applicable to loans 

covered by paragraph (f) is 

notwithstanding the general 15-year 

limit in paragraph (c)(4). The proposal 

would also add a cross-citation to 

paragraph (c)(4). 

The proposal would retain almost all 

of current § 701.21(g), but would insert 

some additional language to improve 

clarity. 


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19 44 U.S.C. 3507(d); 5 CFR part 1320. 

20 44 U.S.C. chap. 35. 

21Public Law 105–277, 112 Stat. 2681 (1998). 

The proposal would revise 

§ 701.21(g)(1) to make more explicit that 

the maturity limit applicable to loans 

covered by paragraph (g) is 

notwithstanding the general 15-year 

limit in paragraph (c)(4). The proposal 

would also add a cross-citation to 

paragraph (c)(4). 

Section 701.22 

As described in more detail below, 

the proposal would make minor 

conforming amendments to § 701.22(b) 

regarding loan participations. 

The proposal would update the crosscitation in § 701.22(b)(1), which 

provides that for a federally insured 

credit union to purchase a participation 

interest in a loan, the loan must comply 

with all regulatory requirements to the 

same extent as if the purchasing 

federally insured credit union had 

originated the loan. Specifically, the 

cross-reference in § 701.22(b)(1) is 

outdated and would be changed from 

§ 723.8 to § 723.4(c). 

IV. Regulatory Procedures 

A. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

generally requires that, in connection 

with a notice of proposed rulemaking, 

an agency prepare and make available 

for public comment an initial regulatory 

flexibility analysis that describes the 

impact of a proposed rule on small 

entities. A regulatory flexibility analysis 

is not required, however, if the agency 

certifies that the rule will not have a 

significant economic impact on a 

substantial number of small entities 

(defined for purposes of the RFA to 

include credit unions with assets less 

than $100 million) and publishes its 

certification and a short, explanatory 

statement in the Federal Register 

together with the rule. The proposed 

rule reduces regulatory burden through 

clarifying and technical changes and 

will not have an impact on small credit 

unions. Accordingly, the NCUA certifies 

that the proposed rule will not have a 

significant economic impact on a 

substantial number of small credit 

unions. 

B. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(PRA) applies to rulemakings in which 

an agency creates new or amends 

existing information collection 

requirements.19 For purposes of the 

PRA, an information collection 

requirement may take the form of a 

reporting, recordkeeping, or a thirdparty disclosure requirement. The 

proposed rule does not contain 

information collection requirements that 

require approval by OMB under the 

PRA.20 The proposed rule would only 

make clarifying and technical changes. 

C. 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, the 

NCUA, an independent regulatory 

agency as defined in 44 U.S.C. 3502(5), 

voluntarily complies with the executive 

order. This rulemaking will not have a 

substantial direct effect 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. The NCUA has 

determined that this proposal does not 

constitute a policy that has federalism 

implications for purposes of the 

executive order. 

D. Assessment of Federal Regulations 

and Policies on Families 

The NCUA has determined that this 

final rule will not affect family wellbeing within the meaning of Section 654 

of the Treasury and General 

Government Appropriations Act, 

1999.21

List of Subjects in 12 CFR Part 701 

Credit, Credit unions, Reporting and 

recordkeeping requirements. 

By the National Credit Union 

Administration Board on August 2, 2018. 

Gerard Poliquin, 

Secretary of the Board. 

For the reasons discussed above, the 

NCUA Board proposes to amend 12 CFR 

part 701 as follows: 

PART 701—ORGANIZATION AND 

OPERATION OF FEDERAL CREDIT 

UNIONS 

■ 1. The authority citation for part 701 

continues to read as follows: 

Authority: 12 U.S.C. 1752(5), 1755, 1756, 

1757, 1758, 1759, 1761a, 1761b, 1766, 1767, 

1782, 1784, 1785, 1786, 1787, 1788, 1789. 

Section 701.6 is also authorized by 15 U.S.C. 

3717. Section 701.31 is also authorized by 15 

U.S.C. 1601 et seq.; 42 U.S.C. 1981 and 3601– 

3610. Section 701.35 is also authorized by 42 

U.S.C. 4311–4312. 

§ 701.20 [Amended] 

■ 2. Amend § 701.20(c)(2) by removing 

the citation ‘‘723.2 and 723.8’’ and 

adding in its place ‘‘701.22(b)(5)(iv) and 

723.4(c)’’. 

■ 3. Amend § 701.21 by revising 

paragraphs (c)(4) and (5), (e), (f)(1) 

introductory text, and (g)(1) to read as 

follows: 

§ 701.21 Loans to members and lines of 

credit to members. 

* * * * * 

(c) * * * 

(4) Maturity—(i) In general. The 

maturity of a loan to a member may not 

exceed 15 years. Lines of credit are not 

subject to a statutory or regulatory 

maturity limit. Amortization of line of 

credit balances and the type and amount 

of security on any line of credit shall be 

as determined by contract between the 

Federal credit union and the member/ 

borrower. In the case of a lending action 

that qualifies as a ‘‘new loan’’ under 

GAAP, the new loan’s maturity is 

calculated from the new date of 

origination. 

(ii) Exceptions. Notwithstanding the 

general 15-year maturity limit on loans 

to members, a federal credit union may 

make loans with maturities: 

(A) As specified in the law, 

regulations or program under which a 

loan is secured, in full or in part, by the 

insurance or guarantee of, or with an 

advance commitment to purchase the 

loan, in full or in part, by the Federal 

Government, a State government or any 

agency of either, as provided in 

paragraph (e) of this section; 

(B) Of up to 20 years or such longer 

term as is provided in paragraph (f) of 

this section; and 

(C) Of up to 40 years or such longer 

term as is provided in paragraph (g) of 

this section. 

(5) Ten percent limit. No loan or line 

of credit advance may be made to any 

member if such loan or advance would 

cause that member to be indebted to the 

Federal credit union upon loans and 

advances made to the member in an 

aggregate amount exceeding 10% of the 

credit union’s total unimpaired capital 

and surplus. In the case of loan 

participations as defined in § 701.22(a) 

of this part and commercial loans as 

defined in § 723.2 of this chapter, 

additional limitations apply as set forth 

in § 701.22(b)(5)(iv) of this part and 

§ 723.4(c) of this chapter. 

* * * * * 

(e) Insured, guaranteed and advance 

commitment loans. Notwithstanding the 

general 15-year maturity limit on loans 

to members in paragraph (c)(4) of this 

section, a loan secured, in full or in part, 

by the insurance or guarantee of, or with 

an advance commitment to purchase the 

loan, in full or in part, by the Federal 

Government, a State government or any 

agency of either, may be made for the 

maturity and under the terms and 


daltland on DSKBBV9HB2PROD with PROPOSALS
39626 Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Proposed Rules 

conditions, including rate of interest, 

specified in the law, regulations or 

program under which the insurance, 

guarantee or commitment is provided. 

(f) 20-year loans. (1) Notwithstanding 

the general 15-year maturity limit on 

loans to members in paragraph (c)(4) of 

this section, a federal credit union may 

make loans with maturities of up to 20 

years in the case of: 

* * * * * 

(g) Long-term mortgage loans—(1) 

Authority. Notwithstanding the general 

15-year maturity limit on loans to 

members in paragraph (c)(4) of this 

section, a federal credit union may make 

residential real estate loans to members, 

including loans secured by 

manufactured homes permanently 

affixed to the land, with maturities of up 

to 40 years, or such longer period as 

may be permitted by the NCUA Board 

on a case-by-case basis, subject to the 

conditions of this paragraph (g). 

* * * * * 

§ 701.22 [Amended] 

■ 3. Amend § 701.22(b)(1) by removing 

the citation ‘‘§ 723.8’’ and adding in its 

place ‘‘§ 723.4’’. 

[FR Doc. 2018–17087 Filed 8–9–18; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2018–0642; Product 

Identifier 2018–NM–087–AD] 

RIN 2120–AA64 

Airworthiness Directives; Dassault 

Aviation Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for all 

Dassault Aviation Model Falcon 10 

airplanes. This proposed AD was 

prompted by a determination that more 

restrictive maintenance requirements 

and airworthiness limitations are 

necessary. This proposed AD would 

require revising the maintenance or 

inspection program, as applicable, to 

incorporate new or more restrictive 

maintenance requirements and 

airworthiness limitations. We are 

proposing this AD to address the unsafe 

condition on these products. 

DATES: We must receive comments on 

this proposed AD by September 24, 

2018. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

For service information identified in 

this NPRM, contact Dassault Falcon Jet 

Corporation, Teterboro Airport, P.O. 

Box 2000, South Hackensack, NJ 07606; 

telephone 201–440–6700; internet 

http://www.dassaultfalcon.com. You 

may view this service information at the 

FAA, Transport Standards Branch, 2200 

South 216th St., Des Moines, WA. For 

information on the availability of this 

material at the FAA, call 206–231–3195. 

Examining the AD Docket 

You may examine the AD docket on 

the internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2018– 

0642; or in person at Docket Operations 

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

through Friday, except Federal holidays. 

The AD docket contains this NPRM, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for Docket Operations 

(phone: 800–647–5527) is in the 

ADDRESSES section. Comments will be 

available in the AD docket shortly after 

receipt. 

FOR FURTHER INFORMATION CONTACT: Tom 

Rodriguez, Aerospace Engineer, 

International Section, Transport 

Standards Branch, FAA, 2200 South 

216th St., Des Moines, WA 98198; 

telephone and fax 206–231–3226. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposal. Send your comments to 

an address listed under the ADDRESSES

section. Include ‘‘Docket No. FAA– 

2018–0642; Product Identifier 2018– 

NM–087–AD’’ at the beginning of your 

comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this NPRM. We will consider 

all comments received by the closing 

date and may amend this NPRM 

because of those comments. 

We will post all comments we 

receive, without change, to http://

www.regulations.gov, including any 

personal information you provide. We 

will also post a report summarizing each 

substantive verbal contact we receive 

about this NPRM. 

Discussion 

The European Aviation Safety Agency 

(EASA), which is the Technical Agent 

for the Member States of the European 

Union, has issued EASA AD 2018–0078, 

dated April 9, 2018 (referred to after this 

as the Mandatory Continuing 

Airworthiness Information, or ‘‘the 

MCAI’’), to correct an unsafe condition 

for all Dassault Aviation Model Falcon 

10 airplanes. The MCAI states: 

The airworthiness limitations and 

certification maintenance instructions for the 

Dassault Falcon 10 aeroplanes, which are 

approved by EASA, are currently defined and 

published in the Dassault Falcon 10 

[Airplane Maintenance Manual] AMM, 

Chapter 5–40. These instructions have been 

identified as mandatory for continued 

airworthiness. 

Failure to accomplish these instructions 

could result in an unsafe condition [fatigue 

cracking and damage in principal structural 

elements, which could result in reduced 

structural integrity of the airplane.] 

Previously, EASA issued AD 2008–0221 to 

require accomplishment of the maintenance 

tasks, and implementation of the 

airworthiness limitations, as specified in the 

Dassault Falcon 10 AMM, Chapter 5–40, at 

Revision 8. 

Since that [EASA] AD was issued, Dassault 

issued the [Airworthiness Limitations 

Section] ALS, which introduces new and 

more restrictive maintenance requirements 

and/or airworthiness limitations. 

For the reason described above, this 

[EASA] AD takes over the requirements for 

Falcon 10 aeroplanes from EASA AD 2008– 

0221, and requires accomplishment of the 

actions specified in the ALS. 

You may examine the MCAI in the 

AD docket on the internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2018– 

0642. 

Related Service Information Under 1 

CFR Part 51 

Dassault has issued Falcon 10 

Maintenance Manual, Airworthiness 

Limitations, Chapter 5–40–00, Revision 

13, dated July 2017. This service 

information describes repetitive 

mandatory maintenance tasks. This 

service information is reasonably 

available because the interested parties 

have access to it through their normal 

course of business or by the means 

identified in the ADDRESSES section. 


daltland on DSKBBV9HB2PROD with PROPOSALS