Federal Register / Vol. 79, No. 183 / Monday, September 22, 2014 / Rules and Regulations 56483 

6See 5 U.S.C. 553(b)(B). 

7See 5 U.S.C. 603 and 604. 

8 44 U.S.C. 3506; 5 CFR 1320. 

2015, the threshold amount is $54,600. 

These revisions are effective January 1, 

2015. 

III. Administrative Law Matters 

Administrative Procedure Act 

Under the Administrative Procedure 

Act, notice and opportunity for public 

comment are not required if the Board 

and the Bureau find that notice and 

public comment are impracticable, 

unnecessary, or contrary to the public 

interest.6 This annual adjustment is 

required by statute. The amendment in 

this notice is technical and nondiscretionary, and it applies the method 

previously established in the agencies’ 

regulations for determining adjustments 

to the exemption threshold. For these 

reasons, the Board and the Bureau have 

determined that publishing a notice of 

proposed rulemaking and providing 

opportunity for public comment are 

unnecessary. Therefore, the 

amendments are adopted in final form. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking where a 

general notice of proposed rulemaking 

is not required.7 As noted previously, 

the agencies have determined that it is 

unnecessary to publish a general notice 

of proposed rulemaking for this joint 

final rule. Accordingly, the RFA’s 

requirements relating to an initial and 

final regulatory flexibility analysis do 

not apply. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995,8 the agencies 

reviewed this final rule. No collections 

of information pursuant to the 

Paperwork Reduction Act are contained 

in the final rule. 

List of Subjects 

12 CFR Part 213 

Advertising, Consumer leasing, 

Consumer protection, Federal Reserve 

System, Reporting and recordkeeping 

requirements. 

12 CFR Part 1013 

Advertising, Consumer leasing, 

Reporting and recordkeeping 

requirements. 

Board of Governors of the Federal 

Reserve System 

Text of Final Revisions 

For the reasons set forth in the 

preamble, the Board amends Regulation 

M, 12 CFR part 213, as set forth below: 

PART 213—CONSUMER LEASING 

(REGULATION M) 

■ 1. The authority citation for part 213 

is revised to read as follows: 

Authority: 15 U.S.C. 1604 and 1667f; Pub. 

L. No. 111–203 section 1100E, 124 Stat. 1376. 

■ 2. In Supplement I to Part 213, under 

Section 213.2—Definitions, under 2(e) 

Consumer Lease, paragraph 9.vi is 

added to read as follows: 

Supplement I to Part 213—Official Staff 

Interpretations 

* * * * * 

Section 213.2—Definitions 

* * * * * 

2(e) Consumer lease. 

9. Threshold amount. * * * 

vi. From January 1, 2015 through December 

31, 2015, the threshold amount is $54,600. 

* * * * * 

Bureau of Consumer Financial 

Protection 

Authority and Issuance 

For the reasons set forth in the 

preamble, the Bureau amends 

Regulation M, 12 CFR part 1013, as set 

forth below: 

PART 1013—CONSUMER LEASING 

(REGULATION M) 

■ 1. The authority citation for part 1013 

is revised to read as follows: 

Authority: 15 U.S.C. 1604 and 1667f; Pub. 

L. 111–203 section 1100E, 124 Stat. 1376. 

■ 2. In Supplement I to part 1013, under 

Section 1013.2—Definitions, under 2(e) 

Consumer Lease, paragraph 9.vi is 

added to read as follows: 

Supplement I to Part 1013—Official 

Interpretations 

* * * * * 

Section 1013.2—Definitions 

* * * * * 

2(e) Consumer Lease. * * * 

9. Threshold amount. * * * 

vi. From January 1, 2015 through December 

31, 2015, the threshold amount is $54,600. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, September 8, 2014. 

Robert deV. Frierson, 

Secretary of the Board. 

Dated: September 3, 2014. 

Richard Cordray, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2014–21847 Filed 9–19–14; 8:45 am] 

BILLING CODE 6210–01–P; 4810–AM–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 226 

[Docket No. R–1494] 

RIN 7100 ZA–08 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1026 

Truth in Lending (Regulation Z) 

AGENCY: Board of Governors of the 

Federal Reserve System (Board); and 

Bureau of Consumer Financial 

Protection (Bureau). 

ACTION: Final rule; official 

interpretations and commentary. 

SUMMARY: The Board and the Bureau are 

publishing final rules amending the 

official interpretations and commentary 

for the agencies’ regulations that 

implement the Truth in Lending Act 

(TILA). The Dodd-Frank Wall Street 

Reform and Consumer Protection Act 

(Dodd-Frank Act) amended TILA by 

requiring that the dollar threshold for 

exempt consumer credit transactions be 

adjusted annually by any annual 

percentage increase in the Consumer 

Price Index for Urban Wage Earners and 

Clerical Workers (CPI–W). Based on the 

annual percentage increase in the CPI– 

W as of June 1, 2014, the Board and the 

Bureau are adjusting the exemption 

threshold to $54,600, effective January 

1, 2015. 

Because the Dodd-Frank Act also 

requires similar adjustments in the 

Consumer Leasing Act’s threshold for 

exempt consumer leases, the Board and 

the Bureau are making similar 

amendments to each of their respective 

regulations implementing the Consumer 

Leasing Act in a joint rulemaking 

published elsewhere in this issue of the 

Federal Register. 

DATES: This final rule is effective 

January 1, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Board: Vivian W. Wong, Counsel, 

Division of Consumer and Community 

Affairs, Board of Governors of the 

Federal Reserve System, at (202) 452– 


asabaliauskas on DSK5VPTVN1PROD with RULES
56484 Federal Register / Vol. 79, No. 183 / Monday, September 22, 2014 / Rules and Regulations 

1Although consumer credit transactions above 

the threshold are generally exempt, loans secured 

by real property or by personal property used or 

expected to be used as the principal dwelling of a 

consumer and private education loans are covered 

by TILA regardless of the loan amount. See 12 CFR 

226.3(b)(1)(i) and 12 CFR 1026.3(b)(1)(i). 

2Public Law 111–203 section 1100E, 124 Stat. 

1376 (2010). 

3 76 FR 18354 (Apr. 4, 2011). 

4 76 FR 79768 (Dec. 22, 2011). 

5See also 12 U.S.C. 5519(b). 

6See comments 3(b)–1 in Supplements I of 12 

CFR part 226 and 12 CFR part 1026. 

7 5 U.S.C. 553(b)(B). 

8 5 U.S.C. 603 and 604. 

9 44 U.S.C. 3506; 5 CFR 1320. 

3667; for users of Telecommunications 

Device for the Deaf (TDD) only, contact 

(202) 263–4869. 

Bureau: David Friend, Counsel, Office 

of Regulations, Bureau of Consumer 

Financial Protection, at (202) 435–7700. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Dodd-Frank Wall Street Reform 

and Consumer Protection Act of 2010 

(Dodd-Frank Act) increased the 

threshold in the Truth in Lending Act 

(TILA) for exempt consumer credit 

transactions 1 from $25,000 to $50,000, 

effective July 21, 2011.2 In addition, the 

Dodd-Frank Act requires that this 

threshold be adjusted annually for 

inflation by the annual percentage 

increase in the Consumer Price Index 

for Urban Wage Earners and Clerical 

Workers (CPI–W), as published by the 

Bureau of Labor Statistics. In April 

2011, the Board issued a final rule 

amending Regulation Z (which 

implements TILA) consistent with these 

provisions of the Dodd-Frank Act.3

Title X of the Dodd-Frank Act 

transferred rulemaking authority for a 

number of consumer financial 

protection laws from the Board to the 

Bureau, effective July 21, 2011. In 

connection with this transfer of 

rulemaking authority, the Bureau issued 

its own Regulation Z implementing 

TILA in an interim final rule, 12 CFR 

part 1026 (Bureau Interim Final Rule).4

The Bureau Interim Final Rule 

substantially duplicated the Board’s 

Regulation Z, including the revisions to 

the threshold for exempt transactions 

made by the Board in April 2011. 

Although the Bureau has the authority 

to issue rules to implement TILA for 

most entities, the Board retains 

authority to issue rules under TILA for 

certain motor vehicle dealers covered by 

section 1029(a) of the Dodd-Frank Act, 

and the Board’s Regulation Z continues 

to apply to those entities.5

Section 226.3(b)(1)(ii) of the Board’s 

Regulation Z and § 1026.3(b)(1)(ii) of the 

Bureau’s Regulation Z, and their 

accompanying commentaries, provide 

that the exemption threshold will be 

adjusted annually effective January 1 of 

each year based on any annual 

percentage increase in the CPI–W that 

was in effect on the preceding June 1. 

Any increase in the threshold amount 

will be rounded to the nearest $100 

increment. For example, if the annual 

percentage increase in the CPI–W would 

result in a $950 increase in the 

threshold amount, the threshold amount 

will be increased by $1,000. However, if 

the annual percentage increase in the 

CPI–W would result in a $949 increase 

in the threshold amount, the threshold 

amount will be increased by $900.6

II. Adjustment and Commentary 

Revision 

Effective January 1, 2015, the adjusted 

exemption threshold amount is $54,600. 

This adjustment is based on the CPI–W 

index in effect on June 1, 2014, which 

was reported on May 15, 2014. The 

Bureau of Labor Statistics publishes 

consumer-based indices monthly, but 

does not report a CPI change on June 1; 

adjustments are reported in the middle 

of the month. The CPI–W is a subset of 

the CPI–U index (based on all urban 

consumers) and represents 

approximately 28 percent of the U.S. 

population. The adjustment reflects a 2 

percent increase in the CPI–W from 

April 2013 to April 2014 and is rounded 

to the nearest $100 increment. 

Accordingly, the Board and the Bureau 

are revising the commentaries to their 

respective regulations to add new 

comment 3(b)–1.vi to state that, from 

January 1, 2015 through December 31, 

2015, the threshold amount is $54,600. 

These revisions are effective January 1, 

2015. 

III. Administrative Law Matters 

Administrative Procedure Act 

Under the Administrative Procedure 

Act, notice and opportunity for public 

comment are not required if the Board 

and the Bureau find that notice and 

public comment are impracticable, 

unnecessary, or contrary to the public 

interest.7 This annual adjustment is 

required by statute. The amendment in 

this notice is technical and nondiscretionary, and it applies the method 

previously established in the agencies’ 

regulations for determining adjustments 

to the exemption threshold. For these 

reasons, the Board and the Bureau have 

determined that publishing a notice of 

proposed rulemaking and providing 

opportunity for public comment are 

unnecessary. Therefore, the 

amendments are adopted in final form. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking where a 

general notice of proposed rulemaking 

is not required.8 As noted previously, 

the agencies have determined that it is 

unnecessary to publish a general notice 

of proposed rulemaking for this joint 

final rule. Accordingly, the RFA’s 

requirements relating to an initial and 

final regulatory flexibility analysis do 

not apply. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995,9 the agencies 

reviewed this final rule. No collections 

of information pursuant to the 

Paperwork Reduction Act are contained 

in the final rule. 

List of Subjects 

12 CFR Part 226 

Advertising, Consumer protection, 

Federal Reserve System, Reporting and 

recordkeeping requirements, Truth in 

lending. 

12 CFR Part 1026 

Advertising, Consumer protection, 

Credit, Credit unions, Mortgages, 

National banks, Reporting and 

recordkeeping requirements, Savings 

associations, Truth in lending. 

Board of Governors of the Federal 

Reserve System 

Text of Final Revisions 

For the reasons set forth in the 

preamble, the Board amends Regulation 

Z, 12 CFR part 226, as set forth below: 

PART 226—TRUTH IN LENDING 

(REGULATION Z) 

■ 1. The authority citation for part 226 

continues to read as follows: 

Authority: 12 U.S.C. 3806; 15 U.S.C. 1604, 

1637(c)(5), and 1639(l); Pub. L. 111–24 

section 2, 123 Stat. 1734; Pub. L. 111–203, 

124 Stat. 1376. 

Subpart A—General 

■ 2. In Supplement I to part 226, under 

Section 226.3—Exempt Transactions, 

under 3(b) Credit over applicable 

threshold amount, paragraph 1.vi is 

added to read as follows: 

Supplement I to Part 226—Official Staff 

Interpretations 

* * * * * 

Subpart A—General 

* * * * * 


asabaliauskas on DSK5VPTVN1PROD with RULES
Federal Register / Vol. 79, No. 183 / Monday, September 22, 2014 / Rules and Regulations 56485 

Section 226.3—Exempt Transactions 

* * * * * 

3(b) Credit over applicable threshold 

amount. 

1. Threshold amount. * * * 

vi. From January 1, 2015 through December 

31, 2015, the threshold amount is $54,600. 

* * * * * 

Bureau of Consumer Financial 

Protection 

Authority and Issuance 

For the reasons set forth in the 

preamble, the Bureau amends 

Regulation Z, 12 CFR part 1026, as set 

forth below: 

PART 1026—TRUTH IN LENDING 

(REGULATION Z) 

■ 1. The authority citation for part 1026 

continues to read as follows: 

Authority: 12 U.S.C. 2601, 2603–2605, 

2607, 2609, 2617, 5511, 5512, 5532, 5581; 15 

U.S.C. 1601 et seq. 

■ 2. In Supplement I to part 1026, under 

Section 1026.3—Exempt Transactions, 

under 3(b) Credit Over Applicable 

Threshold Amount, paragraph 1.vi is 

added to read as follows: 

Supplement I to Part 1026—Official 

Interpretations 

* * * * * 

Subpart A—General 

* * * * * 

Section 1026.3—Exempt Transactions 

* * * * * 

3(b) Credit Over Applicable Threshold 

Amount 

1. Threshold amount. * * * 

vi. From January 1, 2015 through December 

31, 2015, the threshold amount is $54,600. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, September 8, 2014. 

Robert deV. Frierson. 

Secretary of the Board. 

Dated: September 3, 2014. 

Richard Cordray, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2014–21849 Filed 9–19–14; 8:45 am] 

BILLING CODE 6210–01–P; 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 25 

[Docket No. FAA–2013–0900; Special 

Conditions No. 25–540–SC] 

Special Conditions: Airbus Model 

A350–900 airplane; General Limiting 

Requirements 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final special conditions. 

SUMMARY: These special conditions are 

issued for Airbus Model A350–900 

airplanes. These airplanes will have a 

novel or unusual design feature 

associated with general limiting 

requirements of its flight-envelope 

protection features. The applicable 

airworthiness regulations do not contain 

adequate or appropriate safety standards 

for this design feature. These special 

conditions contain the additional safety 

standards that the Administrator 

considers necessary to establish a level 

of safety equivalent to that established 

by the existing airworthiness standards. 

DATES: Effective September 22, 2014. 

FOR FURTHER INFORMATION CONTACT: Joe 

Jacobsen, FAA, Airplane and Flightcrew 

Interface, ANM–111, Transport Airplane 

Directorate, Aircraft Certification 

Service, 1601 Lind Avenue SW., 

Renton, Washington 98057–3356; 

telephone (425) 227–2011; facsimile 

(425) 227–1320. 

SUPPLEMENTARY INFORMATION: 

Background 

On August 25, 2008, Airbus applied 

for a type certificate for their new Model 

A350–900 airplane. Later, Airbus 

requested, and the FAA approved, an 

extension to the application for FAA 

type certification to November 15, 2009. 

The Model A350–900 airplane has a 

conventional layout with twin wingmounted Rolls-Royce Trent XWB 

engines. It features a twin aisle, 9- 

abreast, economy-class layout, and 

accommodates side-by-side placement 

of LD–3 containers in the cargo 

compartment. The basic Model A350– 

900 airplane configuration will 

accommodate 315 passengers in a 

standard two-class arrangement. The 

design cruise speed is Mach 0.85 with 

a maximum take-off weight of 602,000 

lbs. 

Type Certification Basis 

Under Title 14, Code of Federal 

Regulations (14 CFR) 21.17, Airbus must 

show that the Model A350–900 airplane 

meets the applicable provisions of 14 

CFR part 25, as amended by 

Amendments 25–1 through 25–129. 

If the Administrator finds that the 

applicable airworthiness regulations 

(i.e., 14 CFR part 25) do not contain 

adequate or appropriate safety standards 

for the Model A350–900 airplane 

because of a novel or unusual design 

feature, special conditions are 

prescribed under § 21.16. 

Special conditions are initially 

applicable to the model for which they 

are issued. Should the type certificate 

for that model be amended later to 

include any other model that 

incorporates the same or similar novel 

or unusual design feature, the special 

conditions would also apply to the other 

model under § 21.101. 

In addition to the applicable 

airworthiness regulations and special 

conditions, the Model A350–900 

airplane must comply with the fuel-vent 

and exhaust-emission requirements of 

14 CFR part 34, and the noisecertification requirements of 14 CFR 

part 36. The FAA must issue a finding 

of regulatory adequacy under § 611 of 

Public Law 92–574, the ‘‘Noise Control 

Act of 1972.’’ 

The FAA issues special conditions, as 

defined in 14 CFR 11.19, under § 11.38, 

and they become part of the typecertification basis under § 21.17(a)(2). 

Novel or Unusual Design Features 

The Airbus Model A350–900 airplane 

incorporates the following novel or 

unusual design features: General 

limiting requirements for the flightenvelope protection system. 

Discussion 

These special conditions, and the 

following that pertain to flight-envelope 

protection, present general limiting 

requirements for all the unique flightenvelope protection features of the basic 

Model A350 airplane’s electronic flightcontrol system (EFCS) design. Current 

regulations do not address these types of 

protection features. The general limiting 

requirements are necessary to ensure a 

smooth transition from normal flight to 

the protection mode and adequate 

maneuver capability. The general 

limiting requirements also ensure that 

the structural limits of the airplane are 

not exceeded. Furthermore, failure of 

the flight-envelope protection feature 

must not create hazardous flight 

conditions. Envelope-protection 

parameters include angle of attack, 

normal load factor, bank angle, pitch 

angle, and speed. To accomplish these 

envelope protections, one or more 

significant changes occur in the EFCS 

control laws as the normal flightVerDate Sep<11>2014 16:51 Sep 19, 2014 Jkt 232001 PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 E:\FR\FM\22SER1.SGM 22SER1

asabaliauskas on DSK5VPTVN1PROD with RULES