13336 Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Rules and Regulations 

1The OCC’s interim final rule refers to the AMLF 

as the ‘‘ABCP Lending Facility.’’ 

2See 12 CFR Part 3. 

3 73 FR 55704 (Sept. 26, 2008). 4 5 U.S.C. 553(d)(3). 

consumption in watts at the lowest and 

highest selectable output voltage, 

nameplate output power in watts, and, 

if missing from the nameplate, the 

output current in amperes. 

* * * * * 

[FR Doc. E9–6138 Filed 3–26–09; 8:45 am] 

BILLING CODE 6450–01–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Part 3 

[Docket ID OCC–2009–0002] 

RIN 1557–AD15 

Risk-Based Capital Guidelines—Money 

Market Mutual Funds 

AGENCY: Office of the Comptroller of the 

Currency, Treasury. 

ACTION: Final rule. 

SUMMARY: On September 19, 2008, the 

Board of Governors of the Federal 

Reserve System adopted the AssetBacked Commercial Paper Money 

Market Mutual Fund Liquidity Facility 

(the ‘‘AMLF’’ or ‘‘ABCP Lending 

Facility’’) which enables depository 

institutions and bank holding 

companies to borrow from the Federal 

Reserve Bank of Boston on a nonrecourse basis if they use the proceeds 

of the loan to purchase certain assetbacked commercial paper (ABCP) from 

money market mutual funds. The 

purpose of this action was to reduce 

strains being experienced by money 

market mutual funds. To facilitate 

national bank participation in the 

program, the Office of the Comptroller 

of the Currency (OCC) adopted on 

September 19, 2008, on an interim final 

basis, an exemption from its risk-based 

capital guidelines for ABCP held by a 

national bank as a result of its 

participation in this program. 

The AMLF was set to expire on 

January 30, 2009. However, to 

encourage the stability of money market 

mutual funds, the program has been 

extended to October 30, 2009. This rule 

finalizes the risk-based capital 

exemption and extends the risk-based 

capital exemption to ABCP purchased 

beyond the original January 30, 2009, 

date. This final rule applies the riskbased capital exemption to any ABCP 

purchased as a result of a national 

bank’s participation in the facility. The 

risk-based capital exemption will 

continue to apply if the AMLF is 

extended beyond October 30, 2009. 

DATES: Effective Date: March 27, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Margot Schwadron, Senior Risk Expert, 

(202) 874–6022, Capital Policy Division; 

Hugh Carney, Attorney; or Stuart 

Feldstein, Assistant Director, Legislative 

and Regulatory Activities Division, 

(202) 874–5090; Office of the 

Comptroller of the Currency, 250 E 

Street, SW., Washington, DC 20219. 

SUPPLEMENTARY INFORMATION: 

Introduction 

In light of the ongoing dislocations in 

the financial markets, and their impact 

on the functioning of the ABCP markets 

and the operations of money market 

mutual funds, the Board of Governors of 

the Federal Reserve System (FRB) 

adopted the AMLF on September 19, 

2008.1 Under the AMLF, depository 

institutions and bank holding 

companies (banking organizations) are 

able to borrow from the Federal Reserve 

Bank of Boston on a nonrecourse basis 

on condition that the banking 

organizations use the proceeds of the 

Federal Reserve credit to purchase, at 

amortized cost, certain highly rated U.S. 

dollar-denominated ABCP from money 

market mutual funds. The ABCP 

purchased must be used to secure the 

borrowing from the Reserve Bank. The 

purpose of the AMLF is to enable 

money market mutual funds to increase 

their liquidity by enabling them to sell 

some of their high-credit-quality 

secured assets at amortized cost. The 

AMLF was set to expire on January 30, 

2009. However, to promote continued 

stability in the money market mutual 

funds, the FRB extended the program 

until October 30, 2009. 

Description of Interim Final Rule 

National banks that participate in the 

AMLF must acquire and hold ABCP on 

their balance sheet. These ABCP 

holdings are subject to regulatory capital 

requirements under the OCC’s 

regulatory capital guidelines and rules.2

To facilitate national bank participation 

in the AMLF, the OCC adopted, on an 

interim final basis, an exemption from 

its risk-based capital guidelines for 

ABCP purchased by a national bank as 

a result of its participation in the 

facility.3 Specifically, the interim final 

rule amended the OCC’s risk-based 

capital guidelines to permit national 

banks to assign a zero percent risk 

weight to ABCP purchased as a result of 

participation in the facility. The interim 

final rule applied to ABCP purchased 

between September 19, 2008, and 

January 30, 2009. The OCC received one 

comment from an industry trade group 

that supported the rule and encouraged 

its adoption without change. 

Description of Final Rule 

The OCC continues to believe that the 

ABCP acquired by a national bank 

pursuant to the AMLF does not expose 

the participating national banks to 

credit or market risk because of the nonrecourse nature of the Federal Reserve’s 

credit extension. Therefore, the OCC 

concludes that it would be 

appropriate—and consistent with the 

economic substance of the 

transactions—to continue to apply the 

risk-based capital exemption to a 

national bank that serves as an 

intermediary in the AMLF. In light of 

the Federal Reserve’s extension of the 

AMLF program, the OCC has 

determined to extend the risk-based 

capital exemption to ABCP purchased 

beyond the original January 30, 2009 

date. The risk-based capital exemption 

applies to any ABCP purchased as a 

result of a national bank’s participation 

in the facility. The risk-based capital 

exemption will continue to apply if the 

Federal Reserve further extends the 

AMLF program beyond October 30, 

2009. 

Consistent with generally accepted 

accounting principles, the OCC would 

expect national banks to report 

purchased ABCP as an investment 

security (for example, held-to-maturity). 

These assets would be reflected at the 

time of purchase at the national bank’s 

best estimate of fair value. The nonrecourse nature of the transaction would 

impact the valuation of the liability to 

the Federal Reserve. After reflecting any 

appropriate discounts on the assets and 

associated liabilities, national banks are 

not expected to report any material net 

gains or losses at the time of purchase. 

Effective Date 

This final rule is effective 

immediately upon publication. An 

agency may publish a final rule with an 

immediate effective date if the agency 

finds good cause and publishes such 

with the final rule.4

The OCC finds that good cause exists 

for an immediate effective date. As 

previously described in this preamble, 

modification of the risk-based capital 

guidelines is critical to maintain the 

orderly functioning of financial markets, 

to provide market liquidity, and to 

encourage stability of the operations of 

money market mutual funds. In the 

current market environment, a 30 day 

delayed effective date is impracticable 


sroberts on PROD1PC70 with RULES
Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Rules and Regulations 13337 

5 5 U.S.C. 601(2). 

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

7 73 FR 55704 (Sept. 26, 2008). 

and inconsistent with the public interest 

since it may result in undue constraint 

on national banks’ ability to perform 

critical lending and financial 

intermediary roles, which are necessary 

for the orderly functioning and liquidity 

of financial markets. Issuance of this 

final rule furthers the public interest 

because it will reduce liquidity and 

other strains being experienced by 

money market mutual funds. 

Regulatory Analysis 

Executive Order 12866 

The OCC has determined that this 

final rule is not a significant regulatory 

action under Executive Order 12866. 

The changes made by this final rule will 

not have an annual effect on the 

economy of $100 million or more within 

the meaning of Executive Order 12866. 

Regulatory Flexibility Act Analysis 

The Regulatory Flexibility Act (Pub. 

L. 96–354, Sept. 19, 1980) (RFA) applies 

only to rules for which an agency 

publishes a general notice of proposed 

rulemaking pursuant to 5 U.S.C. 553(b).5

Pursuant to the Administrative 

Procedure Act (APA) at 5 U.S.C. 

553(b)(B), general notice and an 

opportunity for public comment are not 

required prior to the issuance of a final 

rule when an agency, for good cause, 

finds that ‘‘notice and public procedure 

thereon are impracticable, unnecessary, 

or contrary to the public interest.’’6

For the reasons set forth in the interim 

final rule,7 the OCC determined for good 

cause that the APA did not require 

general notice and public comment on 

the interim final rule and, therefore, did 

not publish a general notice of proposed 

rulemaking. Thus, the RFA, pursuant to 

5 U.S.C. 601(2), does not apply to this 

final rule. 

Paperwork Reduction Act 

In accordance with the requirements 

of the Paperwork Reduction Act of 1995 

(44 U.S.C. 3506), the OCC has reviewed 

the final rule and determined that it 

contains no collections of information 

as defined by the Paperwork Reduction 

Act. 

Unfunded Mandates Reform Act of 1995 

Section 202 of the Unfunded 

Mandates Reform Act of 1995, Public 

Law 104–4 (2 U.S.C. 1532) (Unfunded 

Mandates Act), requires that an agency 

prepare a budgetary impact statement 

before promulgating any rule likely to 

result in a Federal mandate that may 

result in the expenditure by State, local, 

and tribal governments, in the aggregate, 

or by the private sector, of $100 million 

or more in any one year. The OCC has 

determined that there is no Federal 

mandate imposed by this rulemaking. 

Accordingly, the final rule is not subject 

to section 202 of the Unfunded 

Mandates Act. 

List of Subjects in 12 CFR Part 3 

Administrative practices and 

procedure, Capital, National banks, 

Reporting and recordkeeping 

requirements, Risk. 

12 CFR Chapter I 

Authority and Issuance 

■ For the reasons stated in the preamble, 

the Office of the Comptroller of the 

Currency amends Part 3 of chapter I of 

Title 12, Code of Federal Regulations, as 

follows: 

PART 3—MINIMUM CAPITAL RATIOS; 

ISSUANCE OF DIRECTIVES 

■ 1. The authority citation for part 3 

continues to read as follows: 

Authority: 12 U.S.C. 93a, 161, 1818, 

1828(n), 1828 note, 1831n note, 1835, 3907, 

and 3909. 

■ 2. In Appendix A to part 3, section 

3(a)(1) is amended by revising 

paragraph (ix) to read as follows: 

Appendix A to Part 3—Risk-Based 

Capital Guidelines 

* * * * * 

Section 3. Risk Categories/Weights for OnBalance Sheet Assets and Off-Balance Sheet 

Items 

* * * * * 

(a) * * * 

(1) Zero percent risk weight. * * * 

(ix) Asset-backed commercial paper 

(ABCP) that is: 

(A) Purchased by the bank on or after 

September 19, 2008, from a Securities and 

Exchange Commission (SEC)-registered openend investment company that holds itself out 

as a money market mutual fund under SEC 

Rule 2a–7 (17 CFR 270.2a–7); and 

(B) Pledged by the bank to a Federal 

Reserve Bank to secure financing from the 

ABCP lending facility (AMLF) established by 

the Federal Reserve Board on September 19, 

2008. 

* * * * * 

Dated: March 19, 2009. 

John C. Dugan, 

Comptroller of the Currency. 

[FR Doc. E9–6864 Filed 3–26–09; 8:45 am] 

BILLING CODE 4810–33–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2009–0270; Directorate 

Identifier 2008–NE–30–AD; Amendment 39– 

15865; AD 2009–07–06] 

RIN 2120–AA64 

Airworthiness Directives; Hamilton 

Sundstrand Propellers Model 568F 

Propellers 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule; request for 

comments. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for 

Hamilton Sundstrand Propellers model 

568F propellers with certain part 

number (P/N) and serial number (SN) 

blades. This AD requires removing 

affected propeller blades from service 

for rework. This AD results from reports 

of blades with corrosion pits in the tulip 

area of the blades. We are issuing this 

AD to prevent cracks from developing in 

the tulip area of the blade, which could 

result in separation of the blade and loss 

of airplane control. 

DATES: This AD becomes effective May 

1, 2009. 

We must receive any comments on 

this AD by May 26, 2009. 

ADDRESSES: Use one of the following 

addresses to comment on this AD: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov and follow 

the instructions for sending your 

comments electronically. 

• Mail: U.S. Docket Management 

Facility, Department of Transportation, 

1200 New Jersey Avenue, SE., West 

Building Ground Floor, Room W12–140, 

Washington, DC 20590–0001. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

• Fax: (202) 493–2251. 

Contact Hamilton Sundstrand 

Propeller Technical Team, One 

Hamilton Road, Mail Stop 1–3–AB43, 

Windsor Locks, CT 06096–1010; fax 

(860) 654–5107, for the service 

information identified in this AD. 

FOR FURTHER INFORMATION CONTACT: 

Terry Fahr, Aerospace Engineer, Boston 

Aircraft Certification Office, FAA, 

Engine & Propeller Directorate, 12 New 

England Executive Park, Burlington, MA 

01803; e-mail: terry.fahr@faa.gov; 

telephone (781) 238–7155; fax (781) 

238–7170. 


sroberts on PROD1PC70 with RULES