Federal Register / Vol. 87, No. 9 / Thursday, January 13, 2022 / Rules and Regulations 2031 

1Public Law 101–410, 104 Stat. 890 (Oct. 5, 

1990), as amended by Public Law 104–134, title III, 

§ 31001(s)(1), 110 Stat. 1321–373 (Apr. 26, 1996); 

Public Law 105–362, title XIII, § 1301(a), 112 Stat. 

3293 (Nov. 10, 1998); Public Law 114–74, title VII, 

§ 701(b), 129 Stat. 599 (Nov. 2, 2015), codified at 

28 U.S.C. 2461 note. 

2Under the amended Inflation Adjustment Act, a 

CMP is defined as any penalty, fine, or other 

sanction that: (1) Either is for a specific monetary 

amount as provided by Federal law or has a 

maximum amount provided for by Federal law; (2) 

is assessed or enforced by an agency pursuant to 

Federal law; and (3) is assessed or enforced 

pursuant to an administrative proceeding or a civil 

action in the Federal courts. All three requirements 

must be met for a fine to be considered a CMP. 

3 12 U.S.C. 2277a–14(c). 

4 12 U.S.C. 2277a–14(d). 

5See Office of Mgmt. & Budget, Exec. Office of 

the President, OMB Memorandum No. M–22–07, 

Implementation of Penalty Inflation Adjustments 

for 2020, Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 2015 

(December 15, 2021). 

§ 209.4 Amounts and payments for 

subscriptions and cancellations; timing and 

rate of dividends. 

(a) Amount of subscription. The total 

subscription of a member bank (other 

than a mutual savings bank) shall equal 

six percent of its capital and surplus as 

shown on its most recent Call Report. 

After a member bank files a Call Report, 

the appropriate Reserve Bank will adjust 

the member bank’s Reserve Bank capital 

stock subscription to equal six percent 

of the member bank’s capital and 

surplus. 

(b) Mutual savings banks. The total 

subscription of a member bank that is a 

mutual savings bank shall equal sixtenths of 1 percent of its total deposit 

liabilities as shown on its most recent 

Call Report. After a member bank that 

is a mutual savings bank files a Call 

Report, the appropriate Reserve Bank 

will adjust the member bank’s Reserve 

Bank capital stock subscription to equal 

six-tenths of 1 percent of the member 

bank’s total deposit liabilities. If a 

mutual savings bank has a deposit with 

the appropriate Reserve Bank in lieu of 

Reserve Bank capital stock, its deposit 

obligation shall be adjusted in a like 

manner. 

(c) * * * 

(1) When a Reserve Bank issues 

capital stock to a member bank (or 

accepts a deposit in lieu thereof), the 

member bank shall pay the Reserve 

Bank— 

* * * * * 

(2) A Reserve Bank shall obtain 

settlement for the payment described in 

paragraph (c)(1) of this section by debit 

to an account on the Reserve Bank’s 

books or other form of settlement to 

which the Reserve Bank agrees. 

* * * * * 

(d) * * * 

(1) When a Reserve Bank cancels 

Reserve Bank capital stock of a member 

bank, or (in the case of involuntary 

termination of membership) upon the 

effective date of cancellation specified 

in § 209.3(c)(3), the Reserve Bank 

shall— 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System. 

Ann Misback, 

Secretary of the Board. 

[FR Doc. 2022–00503 Filed 1–12–22; 8:45 am] 

BILLING CODE 6210–01–P 

FARM CREDIT SYSTEM INSURANCE 

CORPORATION 

12 CFR Part 1411 

RIN 3055–AA18 

Rules of Practice and Procedure; 

Adjusting Civil Money Penalties for 

Inflation 

AGENCY: Farm Credit System Insurance 

Corporation. 

ACTION: Final rule. 

SUMMARY: This rule implements 

inflation adjustments to civil money 

penalties (CMPs) that the Farm Credit 

System Insurance Corporation (FCSIC) 

may impose under the Farm Credit Act 

of 1971, as amended. These adjustments 

are required by 2015 amendments to the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990. 

DATES: Effective date: This regulation is 

effective on January 13, 2022. 

Applicability date: The adjusted 

amounts of civil money penalties in this 

rule are applicable to penalties assessed 

on or after January 15, 2022, for conduct 

occurring on or after November 2, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Lynn M. Powalski, General Counsel, 

Farm Credit System Insurance 

Corporation, 1501 Farm Credit Drive, 

McLean, Virginia 22102, (703) 883– 

4380, TTY (703) 883–4390. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (the 2015 Act) amended the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990 (the Inflation 

Adjustment Act) 1 to improve the 

effectiveness of civil monetary penalties 

and to maintain their deterrent effect. 

The Inflation Adjustment Act provides 

for the regular evaluation of CMPs and 

requires FCSIC, and every other Federal 

agency with authority to impose CMPs, 

to ensure that CMPs continue to 

maintain their deterrent values.2

FCSIC must enact regulations that 

annually adjust its CMPs pursuant to 

the inflation adjustment formula of the 

amended Inflation Adjustment Act and 

rounded using a method prescribed by 

the Inflation Adjustment Act. The new 

amounts are applicable to penalties 

assessed on or after January 15, 2022, for 

conduct occurring on or after November 

2, 2015. Agencies do not have discretion 

in choosing whether to adjust a CMP, by 

how much to adjust a CMP, or the 

methods used to determine the 

adjustment. 

II. CMPs Imposed Pursuant to Section 

5.65 of the Farm Credit Act 

First, section 5.65(c) of the Farm 

Credit Act, as amended (Act), provides 

that any insured Farm Credit System 

bank that willfully fails or refuses to file 

any certified statement or pay any 

required premium shall be subject to a 

penalty of not more than $100 for each 

day that such violations continue, 

which penalty FCSIC may recover for its 

use.3 Second, section 5.65(d) of the Act 

provides that, except with the prior 

written consent of the Farm Credit 

Administration, it shall be unlawful for 

any person convicted of any criminal 

offense involving dishonesty or a breach 

of trust to serve as a director, officer, or 

employee of any System institution.4

For each willful violation of section 

5.65(d), the institution involved shall be 

subject to a penalty of not more than 

$100 for each day during which the 

violation continues, which FCSIC may 

recover for its use. 

FCSIC’s current § 1411.1 provides that 

FCSIC can impose a maximum penalty 

of $217 per day for a violation under 

section 5.65(c) and (d) of the Act. 

III. Required Adjustments 

The 2015 Act requires agencies to 

make annual adjustments for inflation. 

Annual inflation adjustments are based 

on the percent change between the 

October Consumer Price Index for all 

Urban Consumers (CPI–U) preceding the 

date of the adjustment, and the prior 

year’s October CPI–U. Based on the CPI– 

U for October 2021, not seasonally 

adjusted, the cost-of-living adjustment 

multiplier for 2022 is 1.06222.5

Multiplying 1.06222 times the current 

penalty amount of $217, after rounding 

to the nearest dollar as required by the 


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2032 Federal Register / Vol. 87, No. 9 / Thursday, January 13, 2022 / Rules and Regulations 

2015 Act, results in a new penalty 

amount of $231. 

IV. Notice and Comment Not Required 

by Administrative Procedure Act 

In accordance with the 2015 Act, 

Federal agencies shall adjust civil 

monetary penalties ‘‘notwithstanding’’ 

Section 553 of the Administrative 

Procedures Act. This means that public 

procedure generally required for agency 

rulemaking—notice, an opportunity for 

comment, and a delay in effective 

date—is not required for agencies to 

issue regulations implementing the 

annual adjustment. 

List of Subjects in 12 CFR Part 1411 

Banks, Banking, Civil money 

penalties, Penalties. 

For the reasons stated in the 

preamble, part 1411 of chapter XIV, title 

12 of the Code of Federal Regulations is 

amended as follows: 

PART 1411—RULES OF PRACTICE 

AND PROCEDURE 

■ 1. The authority citation for part 1411 

continues to read as follows: 

Authority: Secs. 5.58(10), 5.65(c) and (d) 

of the Farm Credit Act (12 U.S.C. 2277a– 

7(10), 2277a–14(c) and (d)); 28 U.S.C. 2461 

note. 

■ 2. Revise § 1411.1 to read as follows: 

§ 1411.1 Inflation adjustment of civil 

money penalties for failure to file a certified 

statement, pay any premium required or 

obtain approval before employment of 

persons convicted of criminal offenses. 

In accordance with the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended, a civil money 

penalty imposed pursuant to section 

5.65(c) or (d) of the Farm Credit Act of 

1971, as amended, shall not exceed 

$231 per day for each day the violation 

continues. 

Dated: January 10, 2022. 

Ashley Waldron, 

Secretary, Farm Credit System Insurance 

Corporation. 

[FR Doc. 2022–00577 Filed 1–12–22; 8:45 am] 

BILLING CODE 6710–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2021–0820; Airspace 

Docket No. 21–ASO–29] 

RIN 2120–AA66 

Amendment of Class E Airspace; 

Covington, GA 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: This action amends Class E 

airspace extending upward from 700 

feet above the surface for Covington 

Municipal Airport, Covington, GA. This 

action is the result of an airspace review 

caused by the decommissioning of the 

ALCOVY Non-directional Beacon (NDB) 

and cancellation of the associated 

approaches. Controlled airspace is 

necessary for the safety and 

management of instrument flight rules 

(IFR) operations in the area. 

DATES: Effective 0901 UTC, March 24, 

2022. The Director of the Federal 

Register approves this incorporation by 

reference action under 1 CFR part 51, 

subject to the annual revision of FAA 

Order JO 7400.11 and publication of 

conforming amendments. 

ADDRESSES: FAA Order JO 7400.11F, 

Airspace Designations and Reporting 

Points, and subsequent amendments can 

be viewed online at https://

www.faa.gov/air_traffic/publications/. 

For further information, you can contact 

the Airspace Policy Group, Federal 

Aviation Administration, 800 

Independence Avenue SW, Washington, 

DC 20591; Telephone: (202) 267–8783. 

FAA Order JO 7400.11F is also available 

for inspection at the National Archives 

and Records Administration (NARA). 

For information on the availability of 

FAA Order JO 7400.11F at NARA, email 

fr.inspection@nara.gov or go to https:// 

www.archives.gov/federal-register/cfr/ 

ibr-locations.html. 

FOR FURTHER INFORMATION CONTACT: John 

Fornito, Operations Support Group, 

Eastern Service Center, Federal Aviation 

Administration, 1701 Columbia Ave., 

College Park, GA 30337; Telephone 

(404) 305–6364. 

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code. 

Subtitle I, Section 106, describes the 

authority of the FAA Administrator. 

Subtitle VII, Aviation Programs, 

describes in more detail the scope of the 

agency’s authority. This rulemaking is 

promulgated under the authority 

described in Subtitle VII, Part A, 

Subpart I, Section 40103. Under that 

section, the FAA is charged with 

prescribing regulations to assign the use 

of airspace necessary to ensure the 

safety of aircraft and the efficient use of 

airspace. This regulation is within the 

scope of that authority as it amends the 

Class E airspace extending upward from 

700 feet above the surface for Covington 

Municipal Airport, Covington, GA, to 

support IFR operations in the area. 

History 

The FAA published a notice of 

proposed rulemaking in the Federal 

Register (86 FR 57083, October 14, 

2021) for Docket No. FAA–2021–0820 to 

amend Class E airspace extending 

upward from 700 feet above the surface 

at Covington Municipal Airport, 

Covington, GA. 

Interested parties were invited to 

participate in this rulemaking effort by 

submitting written comments on the 

proposal to the FAA. No comments 

were received. 

Class E airspace designations are 

published in Paragraph 6005, of FAA 

Order JO 7400.11F, dated August 10, 

2021, and effective September 15, 2021, 

which is incorporated by reference in 14 

CFR 71.1. The Class E airspace 

designations listed in this document 

will be published subsequently in FAA 

Order JO 7400.11F. 

Availability and Summary of 

Documents for Incorporation by 

Reference 

This document amends FAA Order JO 

7400.11F, Airspace Designations and 

Reporting Points, dated August 10, 

2021, and effective September 15, 2021. 

FAA Order JO 7400.11F is publicly 

available as listed in the ADDRESSES

section of this document. FAA Order JO 

7400.11F lists Class A, B, C, D, and E 

airspace areas, air traffic routes, and 

reporting points. 

The Rule 

The FAA is amending 14 CFR part 71 

by amending the Class E airspace 

extending upward from 700 feet above 

the surface at Covington Municipal 

Airport, Covington, GA, as the ACOVY 

NDB is being decommissioned. 


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