Federal Register / Vol. 87, No. 6 / Monday, January 10, 2022 / Rules and Regulations 1065 

1 86 FR 6742 (Jan. 22, 2021); 12 CFR 337.6. 

2 12 U.S.C. 1831f. 

3 86 FR 6742, 6749 (Jan. 22, 2021). 

4 Id. at 6755; 12 CFR 337.6(a)(5)(v)(I)(1)(xiv). 

VI. Severity of Violations 

* * * * * 

(b) * * * 

(1) * * * A Severity Level I violation 

would be subject to a base civil penalty 

of up to 100% of the maximum base 

civil penalty of $106,790. 

(2) * * * A Severity Level II violation 

would be subject to a base civil penalty 

up to 50% of the maximum base civil 

penalty ($53,395). 

* * * * * 

IX. Enforcement Actions 

* * * * * 

1. Notice of Violation 

* * * * * 

(e) * * * 

(1) DOE may assess civil penalties of 

up to $106,790 per violation per day on 

contractors (and their subcontractors 

and suppliers) that are indemnified by 

the Price-Anderson Act, 42 U.S.C. 

2210(d). See 10 CFR 851.5(a). 

* * * * * 

PART 1013—PROGRAM FRAUD CIVIL 

REMEDIES AND PROCEDURES 

■ 24. The authority citation for part 

1013 continues to reads as follows: 

Authority: 31 U.S.C. 3801–3812; 28 U.S.C. 

2461 note. 

■ 25. Section 1013.3 is amended by 

revising paragraphs (a)(1)(iv) and 

(b)(1)(ii) to read as follows: 

§ 1013.3 Basis for civil penalties and 

assessments. 

(a) * * * 

(1) * * * 

(iv) Is for payment for the provision 

of property or services which the person 

has not provided as claimed, shall be 

subject, in addition to any other remedy 

that may be prescribed by law, to a civil 

penalty of not more than $12,537 for 

each such claim. 

* * * * * 

(b) * * * 

(1) * * * 

(ii) Contains or is accompanied by an 

express certification or affirmation of 

the truthfulness and accuracy of the 

contents of the statement, shall be 

subject, in addition to any other remedy 

that may be prescribed by law, to a civil 

penalty of not more than $12,537 for 

each such statement. 

* * * * * 

PART 1017—IDENTIFICATION AND 

PROTECTION OF UNCLASSIFIED 

CONTROLLED NUCLEAR 

INFORMATION 

■ 26. The authority citation for part 

1017 continues to read as follows: 

Authority: 42 U.S.C. 7101 et seq.; 50 

U.S.C. 2401 et seq.; 42 U.S.C. 2168; 28 U.S.C. 

2461 note. 

■ 27. Section 1017.29 is amended by 

revising paragraph (c) to read as follows: 

§ 1017.29 Civil penalty. 

* * * * * 

(c) Amount of penalty. The Director 

may propose imposition of a civil 

penalty for violation of a requirement of 

a regulation under paragraph (a) of this 

section or a compliance order issued 

under paragraph (b) of this section, not 

to exceed $296,132 for each violation. 

* * * * * 

PART 1050—FOREIGN GIFTS AND 

DECORATIONS 

■ 28. The authority citation for part 

1050 continues to read as follows: 

Authority: The Constitution of the United 

States, Article I, Section 9; 5 U.S.C. 7342; 22 

U.S.C. 2694; 42 U.S.C. 7254 and 7262; 28 

U.S.C. 2461 note. 

■ 29. Section 1050.303 is amended by 

revising the last sentence in paragraph 

(d) to read as follows: 

§ 1050.303 Enforcement. 

* * * * * 

(d) * * * The court in which such 

action is brought may assess a civil 

penalty against such employee in any 

amount not to exceed the retail value of 

the gift improperly solicited or received 

plus $22,450. 

[FR Doc. 2021–28446 Filed 1–7–22; 8:45 am] 

BILLING CODE 6450–01–P 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 337 

RIN 3064–ZA30 

Unsafe and Unsound Banking 

Practices: Brokered Deposits 

AGENCY: Federal Deposit Insurance 

Corporation (FDIC). 

ACTION: Notification of additional 

designated business relationship that 

meets the primary purpose exception. 

SUMMARY: The FDIC is identifying an 

additional business relationship, or 

‘‘designated exception,’’ that meets the 

‘‘primary purpose’’ exception to the 

deposit broker definition. The business 

relationship relates to specific, nondiscretionary custodial services offered 

by third parties to depositors or 

depositors’ agents. Entities that meet the 

criteria detailed below will be permitted 

to rely upon the primary purpose 

exception without submitting a notice 

or application. 

DATES: 

Effective date: January 10, 2022. 

Applicability date: December 29, 

2021. 

FOR FURTHER INFORMATION CONTACT: 

Division of Risk Management 

Supervision: Rae-Ann Miller, Associate 

Director, (202) 898–3898, rmiller@

fdic.gov. Legal Division: Vivek V. Khare, 

Counsel, (202) 898–6847, vkhare@

fdic.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On December 15, 2020, the FDIC 

adopted a final rule on brokered 

deposits and the interest rate 

restrictions that apply to less than well 

capitalized insured depository 

institutions (‘‘IDIs’’).1 For brokered 

deposits, the final rule established a 

new framework for analyzing certain 

parts of the ‘‘deposit broker’’ definition, 

including a new interpretation for the 

‘‘primary purpose’’ exception and the 

business relationships that meet the 

exception. The final rule took effect on 

April 1, 2021. Full compliance with the 

rule was extended to January 1, 2022. 

II. Primary Purpose Exception 

Section 29 of the FDI Act provides 

that the primary purpose exception 

applies to an ‘‘agent or nominee whose 

primary purpose is not the placement of 

funds with depository institutions.’’ 2 In 

the final rule, the FDIC provided that 

the primary purpose exception will 

apply when the primary purpose of the 

agent or nominee’s business 

relationship with its customers is not 

the placement of funds with depository 

institutions.3 In addition, the FDIC 

identified a number of business 

relationships (or ‘‘designated 

exceptions’’) that meet the ‘‘primary 

purpose’’ exception. The final rule also 

provided that, as part of the enumerated 

list of designated exceptions, the FDIC 

would make publicly available any 

additional business arrangements not 

described in the rulemaking that the 

FDIC later determines meet the primary 

purpose exception (without requiring an 

application).4

III. Additional Designated Exception 

As described below, the FDIC has 

identified the following additional 

business arrangement that meets the 

primary purpose exception and intends 


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1066 Federal Register / Vol. 87, No. 6 / Monday, January 10, 2022 / Rules and Regulations 

5The additional designated exception will be 

posted to the FDIC’s Banker Resource Center 

(Brokered Deposits web page), available at: https:// 

www.fdic.gov/resources/bankers/brokered-deposits/ 

, will be updated to reflect this additional 

designated business exception. 

6 12 CFR 337.6(a)(5)(i)(A). 

to make conforming changes to the Call 

Report instructions in coordination with 

the Federal Financial Institutions 

Examination Council.5

The agent or nominee is ‘‘engaged in the 

business of placing’’ customer funds at IDIs, 

in a custodial capacity, based upon 

instructions received from a depositor or 

depositor’s agent specific to each IDI and 

deposit account, and the agent or nominee 

neither plays any role in determining at 

which IDI(s) to place any customers’ funds, 

nor negotiates or set rates, terms, fees, or 

conditions, for the deposit account. 

Over the past several months, in 

response to questions received, the FDIC 

has been considering the role that 

certain custodial agents play in various 

deposit placement arrangements. 

Specifically, in some deposit placement 

arrangements, a depositor, or a 

depositor’s agent, uses a custodial agent 

in placing depositor or customer funds 

at IDIs. Based on the ‘‘deposit broker’’ 

definition, these agents likely meet the 

‘‘engaged in the business of placing’’ 

part of the definition because they 

receive third party funds and place 

those funds at more than one IDI.6

The FDIC recognizes, however, that in 

certain arrangements, the agent or 

nominee, in a custodial capacity, places 

deposits but has no discretion over 

where the deposits are placed and acts 

solely upon instructions given by the 

depositor or the depositor’s agent 

specific to each deposit account. 

Moreover, in these arrangements, when 

the agent or nominee, acting in a 

custodial capacity, places deposits 

based upon instructions received from a 

depositor or depositor’s agent, it does so 

without playing any role in determining 

at which banks the depositor’s funds are 

to be placed nor does the agent negotiate 

or set rates, terms, fees, or conditions for 

the deposit account. 

As such, in these specific 

arrangements, it is the FDIC’s view that 

the agent or nominee’s primary purpose 

in placing deposits at IDIs is to provide 

non-discretionary custodial services on 

behalf of the depositor or depositor’s 

agent. Therefore, such entities will be 

deemed to meet the primary purpose 

exception. Accordingly, through this 

Notice, the FDIC is identifying this 

specific business relationship as a 

designated business relationship that 

meets the primary purpose exception. 

Entities that meet the criteria described 

in this Notice will be permitted to rely 

upon the exception without the 

submission of an application or notice. 

As noted above, a custodial agent that 

plays any role in determining at which 

IDI(s) to place any customers’ funds will 

not be eligible for the designated 

exception. As an example, a custodial 

agent that plays any role in creating, 

operating, or using an algorithm that is 

used to determine or recommend at 

which IDI(s) any customer funds are 

placed would be viewed as playing a 

role in determining at which banks the 

depositor’s funds are to be placed and 

thus not eligible for the designated 

exception. 

Involvement of Additional Third Party 

Deposit Brokers 

The FDIC notes that a depositor or 

depositor’s agent that meets the deposit 

broker definition and uses the services 

of a custodial agent that meets this 

designated exception to place deposits 

would result in such deposits being 

classified as brokered deposits. The 

involvement of the non-discretionary 

custodial agent does not change the 

classification of deposits placed by, or 

through the facilitation of, an entity that 

otherwise meets the deposit broker 

definition. 

Federal Deposit Insurance Corporation. 

Dated at Washington, DC, on December 29, 

2021. 

James P. Sheesley, 

Assistant Executive Secretary. 

[FR Doc. 2021–28540 Filed 1–7–22; 8:45 am] 

BILLING CODE 6714–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 25 

[Docket No. FAA–2014–1075; Special 

Conditions No. 25–599A–SC] 

Special Conditions: Dassault Aviation 

Model Falcon 6X Airplane; 

Hydrophobic Windshield Coatings in 

Lieu of Windshield Wipers 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final special conditions, 

amendment. 

SUMMARY: These amended special 

conditions are issued for the Dassault 

Model Falcon 6X airplane. This airplane 

will have a novel or unusual design 

feature when compared to the state of 

technology envisioned in the 

airworthiness standards for transportcategory airplanes. This design feature 

is hydrophobic windshield coatings in 

lieu of windshield wipers. 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: This action is effective on 

Dassault on January 10, 2022. 

FOR FURTHER INFORMATION CONTACT: Paul 

Pellicano, AIR–625, Performance and 

Environment Section, Technical 

Innovation Policy Branch, Policy and 

Innovation Division, Federal Aviation 

Administration, 1701 Columbia Avenue, 

College Park, GA 30337; telephone and 

fax 404–474–5558, email 

Paul.Pellicano@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On July 1, 2012, Dassault Aviation 

applied for a type certificate for their 

new Model Falcon 5X airplane. Special 

conditions were issued for that design 

on September 15, 2015 (80 FR 55226). 

However, Dassault has decided not to 

release an airplane under the model 

designation Falcon 5X, instead choosing 

to change that model designation to 

Falcon 6X. 

In February of 2018, due to engine 

supplier issues, Dassault extended the 

type certificate application date for their 

Model Falcon 5X airplane under new 

Model Falcon 6X. This amendment to 

the original special conditions reflects 

the model-name change. This airplane is 

a twin-engine business jet with seating 

for 19 passengers and a maximum 

takeoff weight of 77,460 pounds. The 

Dassault Model Falcon 6X airplane 

design remains unchanged from the 

Model Falcon 5X in all material respects 

other than different engines. 

Type Certification Basis 

Under the provisions of Title 14, Code 

of Federal Regulations (14 CFR) 21.17, 

Dassault Aviation must show that the 

Model Falcon 6X airplane meets the 

applicable provisions of part 25, as 

amended by Amendments 25–1 through 

25–146. 

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 Dassault Model Falcon 6X 

airplane because of a novel or unusual 

design feature, special conditions are 

prescribed under the provisions of 

§ 21.16. 

Special conditions are initially 

applicable to the model for which they 


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