Federal Register / Vol. 78, No. 241 / Monday, December 16, 2013 / Rules and Regulations 76033 

1The responsibility for promulgating rules under 

TILA was transferred from the Board to the Bureau 

effective July 21, 2011. The Bureau restated 

Regulation Z on December 22, 2011, and the 

Bureau’s Regulation Z is located at 12 CFR part 

1026. 76 FR 79768 (Dec. 22, 2011). See sections 

1061 and 1100A of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act (Dodd-Frank 

Act), Public Law 11–203, 124 Stat. 1376 (2010). 

Section 1029 of the Dodd-Frank Act excludes from 

this transfer of authority, subject to certain 

exceptions, any rulemaking authority over a motor 

vehicle dealer that is predominantly engaged in the 

sale and servicing of motor vehicles, the leasing and 

servicing of motor vehicles, or both. 

6–156. Failure to file this certification is 

‘‘a fatal defect’’ in the nomination. Id. 1– 

106. 

Sections 6–114 and 6–116 vest special 

election nominating authority in the 

party committees, either directly or by 

operation of state party rules. Under 

these provisions, therefore, candidates 

are placed on the general election ballot 

‘‘in accordance with applicable state 

law’’ as ‘‘a direct result’’ of the relevant 

party committee vote. See 11 CFR 

100.2(c)(1). Accordingly, the party 

committee vote is a ‘‘primary election’’ 

within the meaning of the Act and 

Commission regulations. See Advisory 

Opinion 2004–20 (Farrell for Congress) 

(determining that party convention 

constituted primary election where 

convention’s endorsement of only one 

candidate caused candidate to be placed 

directly on general election ballot); 

Advisory Opinion 1992–25 (Owens for 

Senate Committee) (concluding that 

party convention constituted primary 

election where candidate would be 

placed directly on general election 

ballot if candidate received at least 70% 

of votes at convention). The subsequent 

filing of a certification formalizes the 

nomination, but such a filing is not the 

primary election itself. See FEC v. 

Citizens for Senator Wofford, No. 1:CV– 

94–2057, slip op. at 8–10 (M.D. Pa. Sept. 

27, 1995) (holding that state party 

convention constituted ‘‘primary 

election’’ under Act and Commission 

regulations even though state law 

required party to file subsequent 

certificate of nomination with state). 

For the foregoing reasons, the 

Commission issues this interpretive rule 

to clarify that the date of a special 

primary election held pursuant to N.Y. 

Elec. Law 6–114 or 6–116 is the date of 

the party committee’s nomination vote. 

To the extent that other states’ 

nominating procedures for special 

elections are materially 

indistinguishable from those of New 

York, the Commission anticipates that 

this interpretation would apply to such 

other states as well. 

This interpretive rule clarifies the 

Commission’s interpretation of existing 

statutory and regulatory provisions and 

therefore does not constitute an agency 

action subject to notice and comment 

requirements or a delayed effective date 

under the Administrative Procedure 

Act. See 5 U.S.C. 553. The provisions of 

the Regulatory Flexibility Act, which 

apply when notice and comment are 

required by the Administrative 

Procedure Act or another statute, do not 

apply. See 5 U.S.C. 603(a). The 

Commission is not required to submit 

this interpretive rule for congressional 

review. See 2 U.S.C. 438(d)(1), (4). 

Dated: December 5, 2013. 

On behalf of the Commission, 

Ellen L. Weintraub, 

Chair, Federal Election Commission. 

[FR Doc. 2013–29597 Filed 12–13–13; 8:45 am] 

BILLING CODE 6715–01–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1026 

Truth in Lending (Regulation Z) 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Final rule; official 

interpretation. 

SUMMARY: The Bureau of Consumer 

Financial Protection (Bureau) is 

publishing this final rule amending the 

regulatory text and official 

interpretations for Regulation Z, which 

implements the Truth in Lending Act 

(TILA). The Bureau is required to 

calculate annually the dollar amounts 

for several provisions in Regulation Z; 

this final rule reviews the dollar 

amounts for provisions implementing 

amendments to TILA under the Credit 

Card Accountability Responsibility and 

Disclosure Act of 2009 (CARD Act) and 

the Home Ownership and Equity 

Protection Act of 1994 (HOEPA). These 

amounts are adjusted, where 

appropriate, based on the annual 

percentage change reflected in the 

Consumer Price Index in effect on June 

1, 2013. The minimum interest charge 

disclosure thresholds will remain 

unchanged in 2014. The adjusted dollar 

amount for the penalty fees safe harbor 

in 2014 is $26 for a first late payment 

and $37 for each subsequent violation 

within the following six months. The 

adjusted statutory fee trigger for HOPEA 

loans is $632, effective January 1, 2014. 

DATES: This final rule is effective 

January 1, 2014. 

FOR FURTHER INFORMATION CONTACT: 

David Friend, Counsel, Office of 

Regulations, Consumer Financial 

Protection Bureau, 1700 G Street NW., 

Washington, DC 20552 at (202) 435– 

7700. 

SUPPLEMENTARY INFORMATION:

I. Background 

A. CARD Act Annual Adjustments 

In 2010, the Board of Governors of the 

Federal Reserve System (Board) 

published amendments to Regulation Z 

implementing the Credit Card 

Accountability Responsibility and 

Disclosure Act of 2009 (CARD Act), 

which amended the Truth in Lending 

Act (TILA). Public Law 111–24, 123 

Stat. 1734 (2009). Pursuant to the CARD 

Act, the Board’s Regulation Z 

amendments established new 

requirements with respect to open-end 

consumer credit plans, including 

requirements for the disclosure of 

minimum interest charge amounts and 

the establishment of a safe harbor 

provision allowing card issuers to 

impose penalty fees for violating 

account terms without violating the 

restrictions on penalty fees established 

by the CARD Act. See 75 FR 7658, 7799 

(Feb. 22, 2010) and 75 FR 37526, 37527 

(June 29, 2010). The final rule issued by 

the Board required that these thresholds 

be calculated annually using the 

Consumer Price Index as published by 

the Bureau of Labor Statistics.1

Minimum Interest Charge Disclosure 

Thresholds 

Sections 1026.6(b)(2)(iii) and 

1026.60(b)(3) of the Bureau’s Regulation 

Z provide that the minimum interest 

charge thresholds will be re-calculated 

annually using the Consumer Price 

Index for Urban Wage Earners and 

Clerical Workers (CPI–W) that was in 

effect on the preceding June 1. When the 

cumulative change in the adjusted 

minimum value derived from applying 

the annual CPI–W level to the current 

amounts in §§ 1026.6(b)(2)(iii) and 

1026.60(b)(3) has risen by a whole 

dollar, the minimum interest charge 

amounts set forth in the regulation will 

be increased by $1.00. The Bureau of 

Labor Statistics publishes consumerbased 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 

0.9 percent increase in the CPI–W from 

April 2012 to April 2013 and is rounded 

to the nearest $1 increment. This 

increase in the CPI–W when applied to 

the current amounts in 

§§ 1026.6(b)(2)(iii) and 1026.60(b)(3) did 

not trigger an increase in the minimum 

interest charge threshold of at least 


pmangrum on DSK3VPTVN1PROD with RULES
76034 Federal Register / Vol. 78, No. 241 / Monday, December 16, 2013 / Rules and Regulations 

$1.00, and therefore the Bureau is not 

amending §§ 1026.6(b)(2)(iii) and 

1026.60(b)(3). 

Penalty Fees Safe Harbor 

The Bureau’s Regulation Z provides 

that the safe harbor provision which 

establishes the permissible fee 

thresholds in § 1026.52(b)(1)(ii)(A) and 

(B) will be re-calculated annually using 

the CPI–W that was in effect on the 

preceding June 1. This adjustment is 

based on the CPI–W index in effect on 

June 1, 2013, which was reported on 

May 16, 2013. 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. When 

the cumulative change in the adjusted 

minimum value derived from applying 

the annual CPI–W level to the current 

amounts in § 1026.52(b)(1)(ii)(A) and (B) 

has risen by a whole dollar, those 

amounts will be increased by $1.00. 

Similarly, when the cumulative change 

in the adjusted minimum value derived 

from applying the annual CPI–W level 

to the current amounts in 

§ 1026.52(b)(1)(ii)(A) and (B) has 

decreased by a whole dollar, those 

amounts will be decreased by $1.00. See 

comment 52(b)(1)(ii)–2. The adjustment 

to the permissible fee thresholds being 

adopted here reflects a 0.9 percent 

increase in the CPI–W from April 2012 

to April 2013 and is rounded to the 

nearest $1 increment. 

B. HOEPA Annual Threshold 

Adjustment 

In 1995, the Board of Governors of the 

Federal Reserve System (Board) 

published amendments to Regulation Z 

implementing the Home Ownership and 

Equity Protection Act of 1994 (HOEPA), 

which amended TILA and was 

contained in the Riegle Community 

Development and Regulatory 

Improvement Act of 1994, Public Law 

103–325, 108 Stat. 2160. These 

amendments impose substantive 

limitations and additional disclosure 

requirements on certain closed-end 

home mortgage loans bearing annual 

percentage rates or points and fees 

above a certain percentage or amount. 

As enacted, the statute requires 

creditors to comply with the HOEPA 

requirements if the total points and fees 

payable by the consumer at 

consummation exceed the greater of 

$400 or 8 percent of the total loan 

amount. TILA and Regulation Z provide 

that the $400 figure shall be adjusted 

annually on January 1 by the annual 

percentage change in the Consumer 

Price Index (CPI) that was reported on 

the preceding June 1. 15 U.S.C. 

1602(bb)(3); 12 CFR 1026.32(a)(1)(ii). 

The Bureau uses the Consumer Price 

Index for All Urban Consumers (CPI–U) 

index, as published by the Bureau of 

Labor Statistics (BLS), as the index for 

adjusting the $400 figure. The CPI–U is 

based on all urban consumers and 

represents approximately 88 percent of 

the U.S. population, The BLS publishes 

consumer-based indices monthly, but 

does not report a CPI change on June 1; 

adjustments are reported in the middle 

of each month. The adjustment to the 

CPI–U index reported by BLS on May 

16, 2013, was the CPI–U index in effect 

on June 1, and reflects the percentage 

change from April 2012 to April 2013. 

The adjustment to the $400 figure being 

adopted here reflects a 1.1 percent 

increase in the CPI–U index for this 

period and is rounded to whole dollars 

for ease of compliance. 

The fee trigger being adjusted in this 

Federal Register notice pursuant to 

TILA section 103(bb) is used in 

determining whether a loan is covered 

by § 1026.32. Such loans have generally 

been known as ‘‘HOEPA loans.’’ On 

January 10, 2013, the Bureau issued a 

final rule pursuant to, inter alia, section 

1431 of the Dodd-Frank Act, which 

revised the statutory fee trigger for 

HOEPA loans. 78 FR 6856 (Jan. 31, 

2013) (2013 HOEPA Final Rule). The 

amendments adopted in the 2013 

HOEPA Final Rule, including the 

revised fee trigger, apply to loans for 

which the creditor received an 

application on or after January 10, 2014. 

Id. at 6939. The Bureau is mindful of the 

need to coordinate implementation of 

this final rule with the effective date of 

the January 10th final rule adopting 

revisions to the HOEPA fee trigger. 

Accordingly, the adjustment to the fee 

trigger that is being published today will 

become effective on January 1, 2014, 

will apply to loans consummated on or 

after January 1, 2014, and will apply 

until the revised HOEPA fee trigger 

takes effect. Pursuant to section 1431 of 

the Dodd Frank Act and 

§ 1026.32(a)(1)(ii) as amended by the 

2013 HOEPA Final Rule, 

implementation of the 2013 HOEPA 

Final Rule will change the HOEPA fee 

trigger to $1,000, which will be adjusted 

annually thereafter in accordance with 

§ 1026.32(a)(1)(ii) as amended by the 

2013 HOEPA Final Rule. Id. at 6968. 

II. Adjustment and Commentary 

Revision 

A. CARD Act Annual Adjustments 

Minimum Interest Charge Disclosure 

Thresholds—§§ 1026.6(b)(1)(ii) and 

1026.60(b)(3) 

The minimum interest charge 

amounts for §§ 1026.6(b)(2)(iii) and 

1026.60(b)(3) will remain unchanged for 

the year 2014. Accordingly, the Bureau 

is not amending these sections. 

Penalty Fees Safe Harbor— 

§ 1026.52(b)(1)(ii)(A) and (B) 

Effective January 1, 2014, the 

permissible fee threshold amounts are 

$26 for § 1026.52(b)(1)(ii)(A) and $37 for 

§ 1026.52(b)(1)(ii)(B). Accordingly, the 

Bureau is revising § 1026.52(b)(1)(ii)(A) 

and (B) to state that the fee imposed for 

violating the terms or other 

requirements of an account shall not 

exceed $26 and $37 respectively. The 

Bureau is also adopting new comment 

52(b)(1)(ii)–2.i to preserve a list of the 

historical thresholds for this provision. 

B. HOEPA Annual Threshold 

Adjustment—Comment 32(a)(1)(ii)–2 

Effective January 1, 2014, for purposes 

of determining whether a consumer 

credit transaction that is secured by a 

consumer’s principal dwelling and is 

not otherwise exempt is covered by 

§ 1026.32 (based on the total points and 

fees payable by the consumer at 

consummation), a loan is covered if the 

points and fees exceed $632 or 8 percent 

of the total loan amount, whichever is 

greater. Comment 32(a)(1)(ii)–2, which 

lists the adjustments for each year, is 

amended to reflect the new dollar 

threshold amount for 2014. 

III. Administrative Law Matters 

A. Administrative Procedure Act 

Under the Administrative Procedure 

Act, notice and opportunity for public 

comment are not required if the Bureau 

finds that notice and public comment 

are impracticable, unnecessary, or 

contrary to the public interest. 5 U.S.C. 

553(b). The amendments in this notice 

are technical and non-discretionary, and 

they apply the method previously 

established in the agency’s regulations 

for determining adjustments to the 

thresholds. For these reasons, the 

Bureau has determined that publishing 

a notice of proposed rulemaking and 

providing opportunity for public 

comment are unnecessary. Therefore, 

the amendments are adopted in final 

form. 

Section 553(d) of the Administrative 

Procedure Act generally requires 

publication of a final rule not less than 


pmangrum on DSK3VPTVN1PROD with RULES
Federal Register / Vol. 78, No. 241 / Monday, December 16, 2013 / Rules and Regulations 76035 

30 days before its effective date, except 

for (1) a substantive rule which grants 

or recognizes an exemption or relieves 

a restriction; (2) interpretive rules and 

statements of policy; or (3) as otherwise 

provided by the agency for good cause 

found and published with the rule. 5 

U.S.C. 553(d). At a minimum, the 

Bureau believes the amendments fall 

under the third exception to section 

553(d). The Bureau finds that there is 

good cause to make the amendments 

effective on January 1, 2014. The 

amendments in this notice are technical 

and non-discretionary, and they apply 

the method previously established in 

the agency’s regulations for determining 

adjustments to the thresholds. 

B. Regulatory Flexibility Act 

Because no notice of proposed 

rulemaking is required, the Regulatory 

Flexibility Act does not require an 

initial or final regulatory flexibility 

analysis. 5 U.S.C. 603(a), 604(a). 

C. Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3506; 

5 CFR 1320), the agency reviewed this 

final rule. No collections of information 

pursuant to the Paperwork Reduction 

Act are contained in the final rule. 

List of Subjects in 12 CFR Part 1026 

Advertising, Consumer protection, 

Credit, Credit unions, Mortgages, 

National banks, Reporting and 

recordkeeping requirements, Savings 

associations, Truth in lending. 

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. 

Subpart G—Special Rules Applicable 

to Credit Card Accounts and Open End 

Credit Offered to College Students 

■ 2. Section 1026.52(b)(1)(ii)(A) and (B) 

is revised to read as follows: 

§ 1026.52 Limitations on fees. 

* * * * * 

(b * * * 

(1) * * * 

(ii) * * * 

(A) $26; 

(B) $37 if the card issuer previously 

imposed a fee pursuant to paragraph 

(b)(1)(ii)(A) of this section for a violation 

of the same type that occurred during 

the same billing cycle or one of the next 

six billing cycles; or 

* * * * * 

■ 3. In Supplement I to part 1026— 

Official Interpretations: 

■ A. Under Section 1026.32— 

Requirements for Certain Closed-End 

Home Mortgages, 32(a) Coverage, 

Paragraph 32(a)(1)(ii), paragraph 2.xix is 

added. 

■ B. Under Section 1026.52— 

Limitations on Fees, 52(b) Limitations 

on Penalty Fees, 52(b)(1)(ii) Safe 

Harbors, subheading i and paragraph 

2.i.A are added. 

The additions read as follows: 

SUPPLEMENT I TO PART 1026— 

OFFICIAL INTERPRETATIONS 

* * * * * 

Subpart E—Special Rules for Certain 

Home Mortgage Transactions 

* * * * * 

Section 1026.32—Requirements for 

Certain Closed-End Home Mortgages 

32(a) Coverage. 

* * * * * 

Paragraph 32(a)(1)(ii). 

* * * * * 

2. Annual adjustment of $400 

amount. * * * 

xix. For 2014, $632, reflecting a 1.1 

percent increase in the CPI–U from June 

2012 to June 2013, rounded to the 

nearest whole dollar. 

* * * * * 

Subpart G—Special Rules Applicable 

to Credit Card Accounts and Open-End 

Credit Offered to College Students 

Section 1026.52—Limitations on Fees 

* * * * * 

52(b)(1)(ii) Safe harbors 

* * * * * 

2. Adjustments based on Consumer 

Price Index. * * * 

i. Historical thresholds. 

A. Card issuers were permitted to 

impose a fee for violating the terms of 

an agreement if the fee did not exceed 

$25 under § 1026.52(b)(1)(ii)(A) and $35 

under § 1026.52(b)(1)(ii)(B), through 

December 31, 2013. 

Richard Cordray, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2013–29844 Filed 12–13–13; 8:45 am] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2013–0725; Directorate 

Identifier 98–CE–01–AD; Amendment 39– 

17690; AD 98–15–18 R1] 

RIN 2120–AA64 

Airworthiness Directives; Maule 

Aerospace Technology, Inc. Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are revising Airworthiness 

Directive (AD) 98–15–18 that applies to 

certain Maule Aerospace Technology, 

Inc. Models M–4, M–5, M–6, M–7, MT– 

7, MX–7, MXT–7, and M–8 airplanes 

that are equipped with rear wing lift 

struts, part number (P/N) 2079E, and/or 

front wing lift struts, P/N 2080E. AD 98– 

15–18 required repetitively inspecting 

certain wing lift struts for internal 

corrosion and replacing of any wing lift 

strut where corrosion was found. Since 

we issued AD 98–15–18, we were 

informed by the manufacturer that 

Model MXT–7–420 airplanes are no 

longer in existence, are no longer type 

certificated, and should be removed 

from the Applicability section. We were 

also informed that paragraph (b) in AD 

98–15–18 had been misinterpreted and 

caused confusion. This AD removes 

Model MXT–7–420 airplanes from the 

Applicability section and clarifies the 

intent of the language in paragraph (b) 

of AD 98–15–18. This AD also retains 

all other requirements of AD 98–15–18. 

We are issuing this AD to correct the 

unsafe condition on these products. 

DATES: This AD is effective January 21, 

2014. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of January 26, 1996 (61 FR 623, 

January 9, 1996). 

ADDRESSES: For service information 

identified in this AD, contact Maule Air, 

Inc., 2099 GA Hwy 133 South, Moultrie, 

Georgia 31768; telephone: (229) 985– 

2045; fax: (229) 890–2402; Internet: 

http://www.mauleairinc.com/pdf/

servicebulletins/service_bulletin_11_

old.pdf. You may review copies of the 

referenced service information at the 

FAA, Small Airplane Directorate, 901 

Locust, Kansas City, Missouri 64106. 

For information on the availability of 

this material at the FAA, call (816) 329– 

4148. 


pmangrum on DSK3VPTVN1PROD with RULES