27432 Federal Register / Vol. 80, No. 92 / Wednesday, May 13, 2015 / Notices 

7OCC does not anticipate that the proposed rule 

change will impact any of the banks already 

approved to issue letters of credit that may be 

deposited by clearing members as a form of margin 

since all such banks maintain amounts of Tier 1 

Capital that exceed, as applicable, $100 million for 

U.S. banks or $200 million for Non-U.S. banks. 

8See OCC Rule 604(c). For example, OCC accepts 

letters of credit issued by banks regulated by The 

Federal Reserve Board, The Office of the 

Comptroller of the Currency, The Australian 

Prudential Regulation Authority and The German 

Federal Financial Supervisory Authority. 

9 15 U.S.C. 78s(b)(2)(C). 

10 15 U.S.C. 78q–1(b)(3)(F). 

11 17 CFR 240.17Ad–22(d)(3). 

12 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

13 15 U.S.C. 78s(b)(2). 

14 17 CFR 200.30–3(a)(12). 

financial health. Should OCC need to 

demand payment on a letter of credit 

deposited by a clearing member as a 

margin asset, such as in the case of a 

clearing member default, it is less likely 

that the bank issuing such letter of 

credit will not perform upon its 

payment commitment because the bank 

will be required to hold a greater 

amount of capital in order to be an OCC 

letter of credit bank. In turn, credit risk 

presented to OCC as a result of 

accepting letters of credit as a form of 

margin asset is reduced.7

In light of the more universal 

acceptance of Tier 1 Capital for bank 

financial reporting standards and the 

potential to reduce the credit risk 

associated with the issuance of letters of 

credit, OCC is amending Rule 604, 

Interpretation and Policy .01, to 

substitute Tier 1 Capital for 

shareholders’ equity. Pursuant to the 

rule change, as approved, OCC is also 

adding paragraph ‘‘c’’ to Interpretation 

and Policy .01 under Rule 604 to adopt 

a definition of Tier 1 Capital that 

leverages the definition of Tier 1 Capital 

used by a bank’s regulatory agency. OCC 

believes that such a definition is 

appropriate given that OCC accepts 

letters of credit from banks regulated by 

different regulatory authorities.8 In 

addition, OCC is making a conforming 

change to OCC Rule 604, Interpretation 

and Policy .04, so that any one bank 

may not issue letters of credit for an 

individual clearing member exceeding 

15% of the bank’s Tier 1 Capital 

(instead of shareholders’ equity). 

II. Discussion and Commission 

Findings 

Section 19(b)(2)(C) of the Act 9 directs 

the Commission to approve a proposed 

rule change of a self-regulatory 

organization if it finds that the proposed 

rule change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

such organization. 

The Commission finds that the 

proposed rule change is consistent with 

Section 17A(b)(3)(F) of the Act, which 

requires, among other things, that the 

rules of a clearing agency are designed 

to assure the safeguarding of securities 

and funds which are in the custody and 

control of the clearing agency or for 

which it is responsible.10 The rule 

change, as proposed, should help ensure 

the safeguarding of securities and funds 

which are in the custody and control of 

OCC, or for which OCC is responsible, 

because OCC will assess banks that 

issue letters of credit to be deposited as 

margin by clearing members using a 

more conservative capital requirement. 

This more conservative capital 

requirement thereby increases the 

likelihood that the bank will have the 

ability to honor a demand for payment 

made by OCC. For the same reason, OCC 

believes that the adoption of a more 

conservative capital requirement for 

banks approved to issue letters of credit 

that may be deposited by clearing 

members as a form of margin asset is 

consistent with the requirement of Rule 

17Ad–22(d)(3), promulgated under the 

Act, which requires OCC hold assets in 

a manner that minimizes risk of loss or 

delay in access to them.11

III. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposal is 

consistent with the requirements of the 

Act, and in particular, with the 

requirements of Section 17A of the 

Act 12 and the rules and regulations 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,13 that the 

proposed rule change (SR–OCC–2015– 

007) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2015–11480 Filed 5–12–15; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 9132] 

Culturally Significant Objects Imported 

for Exhibition Determinations: ‘‘Three 

Paintings by Johan Christian Dahl’’ 

Exhibition 

SUMMARY: Notice is hereby given of the 

following Determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 

27, 1978, the Foreign Affairs Reform and 

Restructuring Act of 1998 (112 Stat. 

2681, et seq.; 22 U.S.C. 6501 note, et 

seq.), Delegation of Authority No. 234 of 

October 1, 1999, Delegation of Authority 

No. 236–3 of August 28, 2000 (and, as 

appropriate, Delegation of Authority No. 

257 of April 15, 2003), I hereby 

determine that the objects to be 

included in the exhibition ‘‘Three 

Paintings by Johan Christian Dahl,’’ 

imported from abroad for temporary 

exhibition within the United States, are 

of cultural significance. The objects are 

imported pursuant to a loan agreement 

with the foreign owner or custodian. I 

also determine that the exhibition or 

display of the exhibit objects at The 

Metropolitan Museum of Art, New York, 

New York, from on or about June 1, 

2015, until on or about June 30, 2016, 

and at possible additional exhibitions or 

venues yet to be determined, is in the 

national interest. I have ordered that 

Public Notice of these Determinations 

be published in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: For 

further information, including a list of 

the exhibit objects, contact the Office of 

Public Diplomacy and Public Affairs in 

the Office of the Legal Adviser, U.S. 

Department of State (telephone: 202– 

632–6471; email: section2459@

state.gov). The mailing address is U.S. 

Department of State, L/PD, SA–5, Suite 

5H03, Washington, DC 20522–0505. 

Dated: May 6, 2015. 

Kelly Keiderling, 

Principal Deputy Assistant Secretary, Bureau 

of Educational and Cultural Affairs, 

Department of State. 

[FR Doc. 2015–11557 Filed 5–12–15; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice 9131] 

In the Matter of the Review of the 

Designation of al-Qa’ida (and Other 

Aliases) as a Foreign Terrorist 

Organization Pursuant to Section 219 

of the Immigration and Nationality Act 

Based upon a review of the 

Administrative Record assembled in 

this matter pursuant to Section 

219(a)(4)(C) and (b) of the Immigration 

and Nationality Act, as amended (8 

U.S.C. 1189(a)(4)(C), (b)) (‘‘INA’’), and in 

consultation with the Attorney General 

and the Secretary of the Treasury, the 

Secretary of State concludes that the 

circumstances that were the basis for the 

2009 decision to maintain the 

designation of the aforementioned 


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