31220 Federal Register / Vol. 76, No. 104 / Tuesday, May 31, 2011 / Rules and Regulations 

in an expeditious manner, in 

accordance with the provisions of 

§ 1980.374 of this subpart, the loan note 

guarantee shall cover interest until the 

claim is paid within the limit of the 

guarantee. 

(b) Indemnification. If RHS 

determines that a Lender did not 

originate a loan in accordance with the 

requirements in this subpart, and RHS 

pays a loss claim under the loan note 

guarantee as a result of the originating 

Lender’s nonconforming action or 

failure to act, RHS may revoke the 

originating Lender’s eligibility status in 

accordance with § 1980.309(h) of this 

subpart and may also require the 

originating Lender: 

(1) To indemnify RHS for the loss, if 

the payment under the guarantee was 

made within 24 months of loan closing, 

when one or more of the following 

conditions is satisfied: 

(i) The originating Lender utilized 

unsupported data or omitted material 

information when submitting the 

request for a conditional commitment to 

RHS; 

(ii) The originating Lender failed to 

properly verify and analyze the 

applicant’s income and employment 

history in accordance with Agency 

guidelines; 

(iii) The originating Lender failed to 

address property deficiencies identified 

in the appraisal or inspection report that 

affect the health and safety of the 

occupants or the structural integrity of 

the property; 

(iv) The originating Lender used an 

appraiser that was not properly licensed 

or certified, as appropriate, to make 

residential real estate appraisals in 

accordance with § 1980.334(a) of this 

subpart; or, 

(2) To indemnify RHS for the loss, 

regardless of how long ago the loan 

closed, if RHS determines that there was 

fraud or misrepresentation in 

connection with the origination of the 

loan of which the originating Lender 

had actual knowledge at the time it 

became such Lender or which the 

originating Lender participated in or 

condoned. Misrepresentation includes 

negligent misrepresentation. 

■ 3. Section 1980.320 is revised to read 

as follows: 

§ 1980.320 Interest rate. 

The interest rate must not exceed the 

established, applicable usury rate. Loans 

guaranteed under this subpart must bear 

a fixed interest rate over the life of the 

loan. The rate shall be agreed upon by 

the borrower and the Lender and must 

not be more than the current Fannie 

Mae rate as defined in § 1980.302(a) of 

this subpart. The Lender must 

document the rate and the date it was 

determined. 

■ 4. Section 1980.353(c)(4) is revised to 

read as follows: 

§ 1980.353 Filing and processing 

applications. 

* * * * * 

(c) * * * 

(4) Anticipated loan rates and terms, 

the date and amount of the Fannie Mae 

rate used to determine the interest rate, 

and the Lender’s certification that the 

proposed rate is in compliance with 

§ 1980.320 of this subpart. 

* * * * * 

■ 5. Section 1980.399(a)(2) is revised to 

read as follows: 

§ 1980.399 Appeals. 

* * * * * 

(a) * * * 

(2) The Lender may appeal without 

the borrower where RHS has: 

(i) Denied or reduced the amount of 

a loss payment to the Lender; or 

(ii) Required an originating Lender to 

indemnify RHS for a loss payment. 

* * * * * 

Dated: April 15, 2011. 

Dallas Tonsanger, 

Under Secretary, Rural Development. 

Dated: April 21, 2011. 

Michael Scuse, 

Acting Under Secretary, Farm and Foreign 

Agricultural Services. 

[FR Doc. 2011–13061 Filed 5–27–11; 8:45 am] 

BILLING CODE 3410–XV–P 

DEPARTMENT OF AGRICULTURE 

Animal and Plant Health Inspection 

Service 

9 CFR Part 93 

[Docket No. APHIS–2008–0112] 

RIN 0579–AD31 

Importation of Horses From 

Contagious Equine Metritis-Affected 

Countries 

AGENCY: Animal and Plant Health 

Inspection Service, USDA. 

ACTION: Interim rule; delay of 

enforcement. 

SUMMARY: On March 25, 2011, we 

published an interim rule in the Federal 

Register to amend the regulations 

regarding the importation of horses from 

countries affected with contagious 

equine metritis (CEM) by incorporating 

an additional certification requirement 

for imported horses 731 days of age or 

less and adding new testing protocols 

for test mares and imported stallions 

and mares more than 731 days of age. 

That interim rule became effective on 

March 25, 2011; however, we are 

delaying the enforcement of the interim 

rule until July 25, 2011. This action is 

necessary to provide CEM testing 

facilities time to make adjustments to 

their operating procedures that are 

necessary for the rule to be successfully 

implemented. 

DATES: Enforcement of the interim rule 

amending 9 CFR part 93, published at 

76 FR 16683–16686 on March 25, 2011, 

is delayed until July 25, 2011. 

FOR FURTHER INFORMATION CONTACT: Dr. 

Ellen Buck, Senior Staff Veterinarian, 

Equine Imports, National Center for 

Import and Export, VS, APHIS, 4700 

River Road Unit 36, Riverdale, MD 

20737–1231; (301) 734–8364. 

SUPPLEMENTARY INFORMATION: 

Background 

The regulations in 9 CFR part 93 

(referred to below as the regulations) 

prohibit or restrict the importation of 

certain animals into the United States to 

prevent the introduction of 

communicable diseases of livestock and 

poultry. ‘‘Subpart C—Horses,’’ §§ 93.300 

through 93.326, pertains to the 

importation of horses into the United 

States. Sections 93.301 and 93.304 of 

the regulations contain specific 

provisions for the importation of horses 

from regions affected with contagious 

equine metritis (CEM), which is a highly 

contagious venereal disease of horses 

and other equines caused by an 

infection with the bacterium Taylorella 

equigenitalis. 

On March 25, 2011, we published an 

interim rule in the Federal Register (76 

FR 16683–16686, Docket No. APHIS– 

2008–0112) to amend the regulations 

regarding the importation of horses from 

countries affected with CEM by 

incorporating an additional certification 

requirement for imported horses 731 

days of age or less and adding new 

testing protocols for test mares and 

imported stallions and mares more than 

731 days of age. The provisions of the 

interim rule became effective March 25, 

2011, and we will consider all 

comments on the interim rule received 

on or before May 24, 2011. 

Delay of Enforcement 

After the publication of the interim 

rule, we received comments that raised 

a variety of issues, including the 

feasibility of immediately implementing 

certain requirements. 

Based on our review of the comments 

received to date, we consider it 

advisable to delay our enforcement of 


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Federal Register / Vol. 76, No. 104 / Tuesday, May 31, 2011 / Rules and Regulations 31221 

the interim rule until July 25, 2011. This 

additional time will allow CEM testing 

facilities to make any adjustments to 

their operating procedures that may be 

necessary in order to successfully 

implement the interim rule. 

Accordingly, we are delaying 

enforcement of the interim rule 

amending 9 CFR part 93, published at 

76 FR 16683–16686 on March 25, 2011, 

until July 25, 2011. 

Authority: 7 U.S.C. 1622 and 8301–8317; 

21 U.S.C. 136 and 136a; 31 U.S.C. 9701; 7 

CFR 2.22, 2.80, and 371.4. 

Done in Washington, DC, this 25th day of 

May 2011. 

Kevin Shea, 

Acting Administrator, Animal and Plant 

Health Inspection Service. 

[FR Doc. 2011–13360 Filed 5–27–11; 8:45 am] 

BILLING CODE 3410–34–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 226 

[Docket No. R–1393] 

RIN 7100–AD55 

Truth in Lending; Correction 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Final rule; correction. 

SUMMARY: This document corrects 

certain typographical errors in the 

regulation and the staff commentary of 

the final rule published in the Federal 

Register of April 25, 2011. The final rule 

amends Regulation Z, which 

implements the Truth in Lending Act, 

in order to clarify certain aspects of the 

rules that implement the Credit Card 

Accountability Responsibility and 

Disclosure Act of 2009. 

DATES: Effective Date: October 1, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Stephen Shin, Attorney, or Benjamin K. 

Olson, Counsel, Division of Consumer 

and Community Affairs, Board of 

Governors of the Federal Reserve 

System, at (202) 452–3667 or 452–2412; 

for users of Telecommunications Device 

for the Deaf (TDD) only, contact (202) 

263–4869. 

SUPPLEMENTARY INFORMATION: The Board 

published a final rule in the Federal 

Register of April 25, 2011 (76 FR 22948) 

(FR Doc. 2011–8843), amending 

Regulation Z and the staff commentary 

to the regulation, in order to clarify 

certain aspects of the rules that 

implement the Credit Card 

Accountability Responsibility and 

Disclosure Act of 2009. As published, 

the final rule inadvertently omits the 

revisions to redesignated § 226.58(b)(7) 

and the revised commentary to 

§ 226.55(b)(6). In addition, the 

published final rule misprints comment 

51(b)(2)–1 and contains other 

typographical errors. 

Accordingly, in the final rule, FR Doc. 

2011–8843, published on April 25, 

2011, (76 FR 22948) make the following 

corrections: 

PART 226—[CORRECTED] 

§ 226.9 [Corrected] 

■ 1. On page 23000, in the third column, 

line 55, correct amendatory instruction 

7 to read as follows: 

Section 226.9 is amended by adding 

paragraph (b)(3)(iii) and by revising 

paragraphs (c)(2)(i)A), (c)(2)(ii), 

(c)(2)(iii), (c)(2)(iv)(A)(1), (c)(2)(iv)(B), 

(c)(2)(iv)(D), (c)(2)(v)(B)(1) through (3), 

(c)(2)(v)(C), and (c)(2)(v)(D). 

§ 226.58 [Corrected] 

■ 2. On page 23003, in the third column, 

line 48, correct amendatory instruction 

14.B. to read as follows: 

B. Redesignating paragraphs (b)(4) 

through (7) as paragraphs (b)(5) through 

(8), and revising redesignated paragraph 

(b)(7); 

■ 3. On page 23004, in the first column, 

line 24, in § 226.58, correct paragraph 

(b) by adding paragraph (b)(7) to read as 

follows: 

(7) Pricing information. For purposes 

of this section, ‘‘pricing information’’ 

means the information listed in 

§ 226.6(b)(2)(i) through (b)(2)(xii). 

Pricing information does not include 

temporary or promotional rates and 

terms or rates and terms that apply only 

to protected balances. 

* * * * * 

Supplement I to Part 226 [Corrected] 

■ 4. On page 23016, in the first column, 

line 3, italicize the heading ‘‘9(c) 

Change in terms.’’ 

■ 5. On page 23021, in the third column, 

line 29, correct paragraph 1. of 51(b)(2) 

to read as follows: 

1. Credit line request by joint 

accountholder aged 21 or older. The 

requirement under § 226.51(b)(2) that a 

cosigner, guarantor, or joint accountholder 

for a credit card account opened pursuant to 

§ 226.51(b)(1)(ii) must agree in writing to 

assume liability for the increase before a 

credit line is increased, does not apply if the 

cosigner, guarantor or joint accountholder 

who is at least 21 years old initiates the 

request for the increase. 

■ 6. On page 23034, in the first column, 

line 24, correct 55(b) by adding 55(b)(6) 

to read as follows: 

55(b)(6) Servicemembers Civil Relief Act 

exception. 

1. Rate, fee, or charge that does not exceed 

rate, fee, or charge that applied before 

decrease. When a rate or a fee or charge 

subject to § 226.55 has been decreased 

pursuant to 50 U.S.C. app. 527 or a similar 

federal or state statute or regulation, 

§ 226.55(b)(6) permits the card issuer to 

increase the rate, fee, or charge once 50 

U.S.C. app. 527 or the similar statute or 

regulation no longer applies. However, 

§ 226.55(b)(6) prohibits the card issuer from 

applying to any transactions that occurred 

prior to the decrease a rate, fee, or charge that 

exceeds the rate, fee, or charge that applied 

to those transactions prior to the decrease 

(except to the extent permitted by one of the 

other exceptions in § 226.55(b)). For example, 

if a temporary rate applied prior to a decrease 

in rate pursuant to 50 U.S.C. app. 527 and 

the temporary rate expired during the period 

that 50 U.S.C. app. 527 applied to the 

account, the card issuer may apply an 

increased rate once 50 U.S.C. app. 527 no 

longer applies to the extent consistent with 

§ 226.55(b)(1). Similarly, if a variable rate 

applied prior to a decrease in rate pursuant 

to 50 U.S.C. app. 527, the card issuer may 

apply any increase in that variable rate once 

50 U.S.C. app. 527 no longer applies to the 

extent consistent with § 226.55(b)(2). 

2. Decreases in rates, fees, and charges to 

amounts consistent with 50 U.S.C. app. 527 

or similar statute or regulation. If a card 

issuer deceases an annual percentage rate or 

a fee or charge subject to § 226.55 pursuant 

to 50 U.S.C. app. 527 or a similar federal or 

state statute or regulation and if the card 

issuer also decreases other rates, fees, or 

charges (such as the rate that applies to new 

transactions) to amounts that are consistent 

with 50 U.S.C. app. 527 or a similar federal 

or state statute or regulation, the card issuer 

may increase those rates, fees, and charges 

consistent with § 226.55(b)(6). 

3. Example. Assume that on December 31 

of year one the annual percentage rate that 

applies to a $5,000 balance on a credit card 

account is a variable rate that is determined 

by adding a margin of 10 percentage points 

to a publicly-available index that is not under 

the card issuer’s control. The account is also 

subject to a monthly maintenance fee of $10. 

On January 1 of year two, the card issuer 

reduces the rate that applies to the $5,000 

balance to a non-variable rate of 6% and 

ceases to impose the $10 monthly 

maintenance fee and other fees (including 

late payment fees) pursuant to 50 U.S.C. app. 

527. The card issuer also decreases the rate 

that applies to new transactions to 6%. 

During year two, the consumer uses the 

account for $1,000 in new transactions. On 

January 1 of year three, 50 U.S.C. app. 527 

ceases to apply and the card issuer provides 

a notice pursuant to § 226.9(c) informing the 

consumer that on February 15 of year three 

the variable rate determined using the 10- 

point margin will apply to any remaining 

portion of the $5,000 balance and to any 

remaining portion of the $1,000 balance. The 

notice also states that the $10 monthly 

maintenance fee and other fees (including 

late payment fees) will resume on February 

15 of year three. Consistent with 

§ 226.9(c)(2)(iv)(B), the card issuer is not 

required to provide a right to reject in these 


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