78296 Federal Register / Vol. 79, No. 249 / Tuesday, December 30, 2014 / Rules and Regulations 

8The Board expects to evaluate jointly with the 

OCC and Federal Deposit Insurance Corporation 

whether foreign special resolution regimes meet the 

requirements of this paragraph. 

1The Board expects to evaluate jointly with the 

OCC and Federal Deposit Insurance Corporation 

whether foreign special resolution regimes meet the 

requirements of this paragraph. 

order to facilitate the orderly resolution 

of the defaulting counterparty; or 

(ii) Where the agreement is subject by 

its terms to, or incorporates, any of the 

laws referenced in paragraph (2)(i) of 

this definition; 

(3) The agreement does not contain a 

walkaway clause (that is, a provision 

that permits a non-defaulting 

counterparty to make a lower payment 

than it otherwise would make under the 

agreement, or no payment at all, to a 

defaulter or the estate of a defaulter, 

even if the defaulter or the estate of the 

defaulter is a net creditor under the 

agreement); and 

(4) In order to recognize an agreement 

as a qualifying master netting agreement 

for purposes of this subpart, a Boardregulated institution must comply with 

the requirements of § 217.3(d) with 

respect to that agreement. 

* * * * * 

Repo-style transaction means a 

repurchase or reverse repurchase 

transaction, or a securities borrowing or 

securities lending transaction, including 

a transaction in which the Boardregulated institution acts as agent for a 

customer and indemnifies the customer 

against loss, provided that: 

(3) * * * 

(ii) * * * 

(A) The transaction is executed under 

an agreement that provides the Boardregulated institution the right to 

accelerate, terminate, and close-out the 

transaction on a net basis and to 

liquidate or set-off collateral promptly 

upon an event of default, including 

upon an event of receivership, 

insolvency, liquidation, or similar 

proceeding, of the counterparty, 

provided that, in any such case, any 

exercise of rights under the agreement 

will not be stayed or avoided under 

applicable law in the relevant 

jurisdictions, other than in receivership, 

conservatorship, or resolution under the 

Federal Deposit Insurance Act, Title II 

of the Dodd-Frank Act, or under any 

similar insolvency law applicable to 

GSEs, or laws of foreign jurisdictions 

that are substantially similar 8 to the 

U.S. laws referenced in this paragraph 

(3)(ii)(a) in order to facilitate the orderly 

resolution of the defaulting 

counterparty; or 

* * * * * 

PART 249—LIQUIDITY RISK 

MEASUREMENT STANDARDS 

(REGULATION WW) 

■ 7. The authority citation for part 249 

continues to read as follows: 

Authority: 12 U.S.C. 248(a), 321–338a, 

481–486, 1467a(g)(1), 1818, 1828, 1831p–1, 

1831o–1, 1844(b), 5365, 5366, 5368. 

■ 8. Section 249.3 is amended by: 

■ a. Revising the definition of 

‘‘qualifying master netting agreement’’; 

and 

■ b. In paragraph (2) of the definition of 

‘‘regulated financial company’’, 

redesignating footnote 1 as footnote 2. 

§ 249.3 Definitions. 

* * * * * 

Qualifying master netting agreement 

means a written, legally enforceable 

agreement provided that: 

(1) The agreement creates a single 

legal obligation for all individual 

transactions covered by the agreement 

upon an event of default following any 

stay permitted by paragraph (2) of this 

definition, including upon an event of 

receivership, conservatorship, 

insolvency, liquidation, or similar 

proceeding, of the counterparty; 

(2) The agreement provides the Boardregulated institution the right to 

accelerate, terminate, and close-out on a 

net basis all transactions under the 

agreement and to liquidate or set-off 

collateral promptly upon an event of 

default, including upon an event of 

receivership, conservatorship, 

insolvency, liquidation, or similar 

proceeding, of the counterparty, 

provided that, in any such case, any 

exercise of rights under the agreement 

will not be stayed or avoided under 

applicable law in the relevant 

jurisdictions, other than: 

(i) In receivership, conservatorship, or 

resolution under the Federal Deposit 

Insurance Act, Title II of the DoddFrank Act, or under any similar 

insolvency law applicable to GSEs, or 

laws of foreign jurisdictions that are 

substantially similar 1 to the U.S. laws 

referenced in this paragraph (2)(i) in 

order to facilitate the orderly resolution 

of the defaulting counterparty; or 

(ii) Where the agreement is subject by 

its terms to, or incorporates, any of the 

laws referenced in paragraph (2)(i) of 

this definition; 

(3) The agreement does not contain a 

walkaway clause (that is, a provision 

that permits a non-defaulting 

counterparty to make a lower payment 

than it otherwise would make under the 

agreement, or no payment at all, to a 

defaulter or the estate of a defaulter, 

even if the defaulter or the estate of the 

defaulter is a net creditor under the 

agreement); and 

(4) In order to recognize an agreement 

as a qualifying master netting agreement 

for purposes of this subpart, a Boardregulated institution must comply with 

the requirements of § 249.4(a) with 

respect to that agreement. 

* * * * * 

Dated: December 16, 2014. 

Thomas J. Curry, 

Comptroller of the Currency. 

By order of the Board of Governors of the 

Federal Reserve System, December 16, 2014. 

Margaret McCloskey Shanks, 

Deputy Secretary of the Board. 

[FR Doc. 2014–30218 Filed 12–29–14; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Part 34 

[Docket No. OCC–2014–0027] 

RIN 1557–AD90 

BOARD OF GOVERNORS OF THE 

FEDERAL RESERVE SYSTEM 

12 CFR Part 226 

[Docket No. R–1443] 

RIN 7100–AD 90 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1026 

RIN 3170–AA11 

Appraisals for Higher-Priced Mortgage 

Loans Exemption Threshold 

Adjustment—Final Rule 

AGENCY: Board of Governors of the 

Federal Reserve System (Board); Bureau 

of Consumer Financial Protection 

(Bureau); and Office of the Comptroller 

of the Currency, Treasury (OCC). 

ACTION: Final rule; official staff 

interpretations; technical amendment. 

SUMMARY: The OCC, the Board and the 

Bureau are publishing final rules 

amending the official staff 

interpretations for their regulations that 

implement section 129H of the Truth in 

Lending Act (TILA). Section 129H of 

TILA establishes special appraisal 

requirements for ‘‘higher-risk 


tkelley on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 79, No. 249 / Tuesday, December 30, 2014 / Rules and Regulations 78297 

1Public Law 111–203 section 1471, 124 Stat. 

1376 (2010), codified at TILA section 129H, 15 

U.S.C. 1639h. 

2 78 FR 10368 (Feb. 13, 2013). 

3 78 FR 78520 (Dec. 26, 2013) 

4See NCUA: 12 CFR 722.3; FHFA: 12 CFR part 

1222. Although the FDIC adopted the Bureau’s 

version of the regulation, the FDIC did not issue its 

own regulation containing a cross-reference to the 

Bureau’s version. See 78 FR 10368, 10370 (Feb. 13, 

2013). 

5See 12 CFR part 34, Appendix C to Subpart G, 

comment 203(b)(2)–1 (OCC); 12 CFR part 226, 

Supplement I, comment 43(b)(2)–1 (Board); and 12 

CFR part 1026, Supplement I, comment 35(c)(2)(ii)– 

1 (Bureau). 

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

7 5 U.S.C. 553(d)(3). 

mortgages,’’ termed ‘‘higher-priced 

mortgages’’ or ‘‘HPMLs’’ in the agencies’ 

regulations. The OCC, the Board, the 

Bureau, the Federal Deposit Insurance 

Corporation (FDIC), the National Credit 

Union Administration (NCUA) and the 

Federal Housing Finance Agency 

(FHFA) (collectively, the Agencies) 

issued joint final rules implementing 

these requirements, effective January 18, 

2014. The Agencies’ rules exempted, 

among other loan types, transactions of 

$25,000 or less, and required that this 

loan amount be adjusted annually based 

on 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 OCC, the Board and 

the Bureau are adjusting the exemption 

threshold to $25,500, effective January 

1, 2015. 

DATES: This final rule is effective 

January 1, 2015. 

FOR FURTHER INFORMATION CONTACT: 

OCC: Beth Knickerbocker, Counsel, 

Legislative & Regulatory Activities 

Division, at (202) 649–5490; for persons 

who are deaf and hard of hearing, TTY, 

(202) 649–5597. 

Board: Lorna M. Neill, Counsel, 

Division of Consumer and Community 

Affairs, Board of Governors of the 

Federal Reserve System, at (202) 452– 

3667; for users of Telecommunications 

Device for the Deaf (TDD) only, contact 

(202) 263–4869. 

Bureau: James Wylie, 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) amended the Truth in 

Lending Act (TILA) to add special 

appraisal requirements for ‘‘higher-risk 

mortgages.’’ 1 In January 2013, the 

Agencies issued a joint final rule 

implementing these requirements and 

adopted the term ‘‘higher-priced 

mortgage loan’’ (HPML) instead of 

‘‘higher-risk mortgage’’ (the January 

2013 Final Rule).2 In December 2013, 

the Agencies issued a supplemental 

final rule with additional exemptions 

from the January 2013 Final Rule (the 

December 2013 Supplemental Final 

Rule).3 Among other exemptions, the 

Agencies adopted an exemption from 

the new HPML appraisal rules for 

transactions of $25,000 or less, to be 

adjusted annually for inflation. 

The Bureau’s, the OCC’s, and the 

Board’s versions of the January 2013 

Final Rule and December 2013 

Supplemental Final Rule and 

corresponding official interpretations 

are substantively identical. The FDIC, 

NCUA, and FHFA adopted the Bureau’s 

version of the regulations under the 

January 2013 Final Rule and December 

2013 Supplemental Final Rule.4

Section 34.203(b)(2) of Subpart G of 

part 34 of the OCC’s regulations, 

§ 226.43(b)(2) of the Board’s Regulation 

Z, and § 1026.35(c)(2)(ii) of the Bureau’s 

Regulation Z, and their accompanying 

interpretations, provide that the 

exemption threshold for smaller loans 

will be adjusted effective January 1 of 

each year based on any annual 

percentage increase in the Consumer 

Price Index for Urban Wage Earners and 

Clerical Workers (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 $900.5

II. Adjustment and Commentary 

Revision 

Effective January 1, 2015, the adjusted 

exemption threshold amount is $25,500. 

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. Accordingly, 

the OCC, the Board, and the Bureau are 

revising the interpretations to their 

respective regulations to add new 

comments as follows: 

• Comment 203(b)(2)–1.ii to 12 CFR 

part 34, Appendix C to Subpart G 

(OCC); 

• Comment 43(b)(2)–1.ii to 

Supplement I of 12 CFR part 226 

(Board); and 

• Comment 35(c)(2)(ii)–1.ii in 

Supplement I of 12 CFR part 1026 

(Bureau). 

These new comments state that, from 

January 1, 2015 through December 31, 

2015, the threshold amount is $25,500. 

These revisions are effective January 1, 

2015. 

III. Administrative Law Matters 

Administrative Procedure Act 

Under the Administrative Procedure 

Act (APA), notice and opportunity for 

public comment are not required if an 

agency finds that notice and public 

comment are impracticable, 

unnecessary, or contrary to the public 

interest.6 This annual adjustment is 

required by the December 2013 

Supplemental Final Rule. The 

amendment in this notice is technical 

and non-discretionary, and it applies 

the method previously established, 

through notice and comment, in the 

Agencies’ regulations for determining 

adjustments to the exemption threshold. 

For these reasons, the OCC, 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. 

The effective date of this final rule is 

January 1, 2015. Under the APA, the 

required publication or service of a 

substantive rule shall be made not less 

than 30 days before its effective date, 

except, among other things, as provided 

by the agency for good cause found and 

published with the rule.7 Because this 

rule adjusts the exemption threshold 

consistent with the procedural 

requirements of the official staff 

interpretations, the OCC, the Board and 

the Bureau conclude that it is not 

substantive within the meaning of the 

APA’s delayed effective date provision. 

Moreover, the agencies find that there is 

good cause for dispensing with the 

delayed effective date requirement, even 

if it applied, because their current rules 

already provide notice that the 

exemption threshold will be adjusted 

effective January 1 based on any annual 

percentage increase in the CPI–W that 

was in effect on the preceding June 1. 


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78298 Federal Register / Vol. 79, No. 249 / Tuesday, December 30, 2014 / Rules and Regulations 

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

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

10 2 U.S.C. 1532. 

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. 

Unfunded Mandates Reform Act 

The OCC analyzes proposed rules for 

the factors listed in Section 202 of the 

Unfunded Mandates Reform Act of 

1995, before promulgating a final rule 

for which a general notice of proposed 

rulemaking was published.10 As 

discussed above, the OCC had 

determined that the publication of a 

general notice of proposed rulemaking 

is unnecessary. 

List of Subjects 

12 CFR Part 34 

Appraisal, Appraiser, Banks, Banking, 

Consumer protection, Credit, Mortgages, 

National banks, Reporting and 

recordkeeping requirements, Savings 

associations, Truth in lending. 

12 CFR Part 226 

Advertising, Appraisal, Appraiser, 

Consumer protection, Credit, Federal 

Reserve System, Mortgages, Reporting 

and recordkeeping requirements, Truth 

in lending. 

12 CFR Part 1026 

Advertising, Appraisal, Appraiser, 

Banking, Banks, Consumer protection, 

Credit, Credit unions, Mortgages, 

National banks, Reporting and 

recordkeeping requirements, Savings 

associations, Truth in lending. 

Department of the Treasury 

Office of the Comptroller of the 

Currency 

Authority and Issuance 

For the reasons set forth in the 

preamble, the OCC amends 12 CFR part 

34 as set forth below: 

PART 34—REAL ESTATE LENDING 

AND APPRAISALS 

■ 1. The authority citation for part 34 

continues to read as follows: 

Authority: 12 U.S.C. 1 et seq., 25b, 29, 93a, 

371, 1463, 1464, 1465,1701j–3, 1828(o), 3331 

et seq., 5101 et seq., 5412(b)(2)(B) and 15 

U.S.C. 1639h. 

Subpart G—Appraisals for HigherPriced Mortgage Loans 

■ 2. In Appendix C to Subpart G, under 

Section 34.203—Appraisals for HigherPriced Mortgage Loans, paragraph 

34.203(b)(2)–1.ii is added to read as 

follows: 

Appendix C to Subpart G—OCC 

Interpretations 

* * * * * 

Section 34.203—Appraisals for Higher-Priced 

Mortgage Loans 

* * * * * 

34.203(b) Exemptions 

* * * * * 

Paragraph 34.203(b)(2) 

1. Threshold amount. * * * 

ii. From January 1, 2015 through December 

31, 2015, the threshold amount is $25,500. 

* * * * * 

Board of Governors of the Federal 

Reserve System 

Authority and Issuance 

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) 

■ 3. 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), 1639(l), and 1639h; Pub. L. 111– 

24 § 2, 123 Stat. 1734; Pub. L. 111–203, 124 

Stat. 1376. 

Subpart A—General 

■ 4. In Supplement I to part 226, under 

Section 226.43—Appraisals for HigherPriced Mortgage Loans, under Paragraph 

43(b)(2), paragraph 43(b)(2)–1.ii is 

added to read as follows: 

Supplement I to Part 226—Official Staff 

Interpretations 

* * * * * 

Subpart E—Special Rules for Certain Home 

Mortgage Transactions 

* * * * * 

Section 226.43—Appraisals for Higher-Priced 

Mortgage Loans 

* * * * * 

43(b) Exemptions 

* * * * * 

Paragraph 43(b)(2) 

1. Threshold amount. * * * 

ii. From January 1, 2015 through December 

31, 2015, the threshold amount is $25,500. 

* * * * * 

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) 

■ 5. 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. 

■ 6. In Supplement I to part 1026, under 

Section 1026.35—Requirements for 

Higher-Priced Mortgage Loans, under 

Paragraph 35(c)(2)(ii), paragraph 

35(c)(2)(ii)–1.ii is added to read as 

follows: 

Supplement I to Part 1026—Official 

Interpretations 

* * * * * 

Subpart E—Special Rules for Certain Home 

Mortgage Transactions 

* * * * * 

Section 1026.35—Requirements for HigherPriced Mortgage Loans 

* * * * * 

35(c) Appraisals 

* * * * * 

35(c)(2) Exemptions 

* * * * * 

Paragraph 35(c)(2)(ii) 

1. Threshold amount. * * * 

ii. From January 1, 2015 through December 

31, 2015, the threshold amount is $25,500. 

* * * * * 

Dated: December 11, 2014. 

Amy Friend, 

Senior Deputy Comptroller and Chief 

Counsel. 

By order of the Board of Governors of the 

Federal Reserve System, acting through the 


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Federal Register / Vol. 79, No. 249 / Tuesday, December 30, 2014 / Rules and Regulations 78299 

Secretary of the Board under delegated 

authority, December 19, 2014. 

Robert deV. Frierson, 

Secretary of the Board. 

Dated: December 18, 2014. 

Richard Cordray, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2014–30419 Filed 12–29–14; 8:45 am] 

BILLING CODE 4810–33–P; 6210–01–P; 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 91 

[Docket No. FAA–2014–0708; Amendment 

No. 91–334; SFAR No. 114] 

RIN 2120–AK61 

Prohibition Against Certain Flights 

Within the Damascus (OSTT) Flight 

Information Region (FIR) 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Immediately adopted final rule. 

SUMMARY: This action prohibits certain 

flight operations in the Damascus 

(OSTT) Flight Information Region (FIR) 

by all U.S. air carriers; U.S. commercial 

operators; persons exercising the 

privileges of a U.S. airman certificate, 

except when such persons are operating 

a U.S.-registered aircraft for a foreign air 

carrier; and operators of U.S.-registered 

civil aircraft, except when such 

operators are foreign air carriers. The 

FAA previously prohibited such flight 

operations in a Notice to Airmen 

(NOTAM) 4/4936, which was issued on 

August 18, 2014, and absent this rule, 

would have remained in effect until 

December 31, 2014. This Special 

Federal Aviation Regulation (SFAR) 

adopts the prohibitions currently in 

effect via the NOTAM, and requires 

compliance with the prohibitions for 2 

years from the date of publication of this 

final rule, unless the FAA determines 

that it is necessary to amend or rescind 

this rule based on the situation in the 

region. The FAA finds that this action 

is necessary to address a potential 

hazard to persons and aircraft engaged 

in such flight operations. 

DATES: This final rule is effective on 

December 30, 2014, and remains in 

effect through December 30, 2016. 

FOR FURTHER INFORMATION CONTACT: For 

technical questions about this action, 

contact Will Gonzalez, Air 

Transportation Division, AFS–220, 

Flight Standards Service, Federal 

Aviation Administration, 800 

Independence Avenue SW., 

Washington, DC 20591; telephone: 202– 

267–8166; email: will.gonzalez@faa.gov. 

For legal questions concerning this 

action, contact: Robert Frenzel, Office of 

the Chief Counsel, AGC–200, Federal 

Aviation Administration, 800 

Independence Avenue SW., 

Washington, DC 20591; telephone (202) 

267–7638. 

SUPPLEMENTARY INFORMATION: 

Good Cause for Immediate Adoption 

Section 553(b)(3)(B) of title 5, U.S. 

Code, authorizes agencies to dispense 

with notice and comment procedures 

for rules when the agency for ‘‘good 

cause’’ finds that those procedures are 

‘‘impracticable, unnecessary, or contrary 

to the public interest.’’ In this instance, 

the FAA finds that notice and public 

comment to this immediately adopted 

final rule, as well as any delay in the 

effective date of this rule, are contrary 

to the public interest due to the 

immediate need to address the potential 

hazard to civil aviation that exists in the 

OSTT FIR, as described in the 

Background section of this final rule. 

Authority for This Rulemaking 

The FAA is responsible for the safety 

of flight in the United States and for the 

safety of U.S. civil operators, U.S.- 

registered civil aircraft, and U.S.- 

certificated airmen throughout the 

world. The FAA’s authority to issue 

rules on aviation safety is found in title 

49 of the U.S. Code. Subtitle I, section 

106(f), describes the authority of the 

FAA Administrator. Subtitle VII of title 

49, Aviation Programs, describes in 

more detail the scope of the agency’s 

authority. Section 40101(d)(1) provides 

that the Administrator shall consider in 

the public interest, among other matters, 

assigning, maintaining, and enhancing 

safety and security as the highest 

priorities in air commerce. Section 

40105(b)(1)(A) requires the 

Administrator to exercise his authority 

consistently with the obligations of the 

U.S. Government under international 

agreements. 

This SFAR is promulgated under the 

authority described in Title 49, Subtitle 

VII, Part A, Subpart III, section 44701, 

General requirements. Under that 

section, the FAA is charged broadly 

with promoting safe flight of civil 

aircraft in air commerce by prescribing, 

among other things, regulations and 

minimum standards for practices, 

methods, and procedures that the 

Administrator finds necessary for safety 

in air commerce and national security. 

This regulation is within the scope of 

that authority because it prohibits 

certain flight operations in the OSTT 

FIR due to the potential hazard to 

persons and aircraft engaged in such 

flight operations that is described in the 

‘‘Background’’ section of this final rule. 

I. Overview of Immediately Adopted 

Final Rule 

This action prohibits certain flight 

operations in the OSTT FIR, by all U.S. 

air carriers; U.S. commercial operators; 

persons exercising the privileges of a 

U.S. airman certificate, except when 

such persons are operating a U.S.- 

registered aircraft for a foreign air 

carrier; and operators of U.S.-registered 

civil aircraft, except when such 

operators are foreign air carriers. The 

FAA previously prohibited such flight 

operations in FDC NOTAM 4/4936, 

which was issued on August 18, 2014. 

This action incorporates that 

prohibition into the Code of Federal 

Regulations (CFR). The FAA finds this 

action necessary to address a potential 

hazard to persons and aircraft engaged 

in such flight operations, as described 

below. 

II. Background 

Due to the ongoing armed conflict and 

volatile security environment in Syria, 

the FAA has serious concerns regarding 

potential hazards to U.S. civil flight 

operations in the OSTT FIR. A number 

of armed extremist groups are known to 

be equipped with a variety of antiaircraft weapons that have the capability 

to threaten civil aircraft. These groups 

have successfully shot down Syrian 

military aircraft and have previously 

warned civil air carriers against 

providing service to Syria. Due to the 

presence of these weapons, threats made 

by the extremist groups, and ongoing 

fighting throughout Syria involving 

various forms of weaponry used by 

various groups, as well as military 

fighter aircraft used by the Syrian Air 

Force, the FAA believes there is a 

significant threat to U.S. civil aviation 

operating in the OSTT FIR at any 

altitude. 

On August 18, 2014, in response to 

the potentially hazardous situation 

created by the armed conflict in Syria, 

the FAA issued FDC NOTAM 4/4936, 

which prohibited flight operations in 

the OSTT FIR by all U.S. air carriers; 

U.S. commercial operators; persons 

exercising the privileges of a U.S. 

airman certificate, except when such 

persons are operating a U.S.-registered 

aircraft for a foreign air carrier; and 

operators of U.S.-registered civil aircraft, 

except when such operators are foreign 

air carriers. In addition, on September 

23, 2014, the President announced that 

U.S. and allied forces had begun 

airstrikes against the Islamic State in 


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