Federal Register / Vol. 79, No. 91 / Monday, May 12, 2014 / Rules and Regulations 26831 

1This paragraph, as revised, will become the 

seventh full paragraph of the body of the 

Acknowledgment Letter set forth in Appendix B to 

17 CFR 1.20, after the format of that 

Acknowledgment Letter is conformed to the format 

of the Acknowledgment Letter set forth in 

Appendix B to 17 CFR 1.26. 

less potent or toxic may be excluded 

from the requirements of this part based 

upon a determination by the 

Administrator that the attenuated strain 

or modified toxin does not pose a severe 

threat to public health and safety, 

animal health, or animal products. 

* * * * * 

§ 121.5 [Amended] 

■ 10. In § 121.5, paragraph (a)(3)(i) is 

amended by removing the words ‘‘and 

swine’’ and adding the words ‘‘or 

swine’’ in their place. 

■ 11. Section 121.6 is amended as 

follows: 

■ a. In paragraph (a)(3)(i), by removing 

the second occurrence of the word 

‘‘and’’ and adding the word ‘‘or’’ in its 

place. 

■ b. By revising paragraphs (e) and (f). 

The revisions read as follows: 

§ 121.6 Exemptions for overlap select 

agents and toxins. 

* * * * * 

(e) If it is necessary to respond to a 

domestic or foreign agricultural 

emergency involving an overlap select 

agent or toxin, the Administrator may 

exempt an individual or entity from the 

requirements, in whole or in part, of this 

part for up to 30 calendar days. The 

Administrator may extend the 

exemption once for an additional 30 

days. 

(f) Upon request of the Secretary of 

Health and Human Services, the 

Administrator may exempt an 

individual or entity from the 

requirements, in whole or in part, of this 

part for up to 30 calendar days if the 

Secretary of Health and Human Services 

has granted an exemption for a public 

health emergency involving an overlap 

select agent or toxin. The Administrator 

may extend the exemption once for an 

additional 30 days. 

§ 121.9 [Amended] 

■ 12. In § 121.9, paragraph (c)(1) is 

amended by removing the words ‘‘and 

swine’’ and adding the words ‘‘or 

swine’’ in their place. 

§ 121.11 [Amended] 

■ 13. Section 121.11 is amended as 

follows: 

■ a. In paragraph (c)(2), by adding the 

words ‘‘(including arthropods)’’ after the 

word ‘‘animals’’. 

■ b. In paragraph (d)(2), by adding the 

words ‘‘if the potential to access to 

select agents or toxins exists’’ after the 

words ‘‘approved individual’’. 

■ c. In paragraph (g), by removing the 

word ‘‘Internet’’ and adding the words 

‘‘National Select Agent Registry’’ in its 

place. 

■ 14. Section 121.13 is amended as 

follows: 

■ a. By revising paragraph (a). 

■ b. By removing paragraph (b). 

■ c. By redesignating paragraphs (c) and 

(d) as paragraphs (b) and (c), 

respectively. 

■ d. In newly redesignated paragraph 

(b), by removing the words ‘‘paragraph 

(b)’’ and adding the words ‘‘paragraph 

(a)’’ in their place. 

■ e. In newly redesignated paragraph 

(c), by removing the words ‘‘paragraph 

(b)’’ and adding the words ‘‘paragraph 

(a)’’ in their place. 

The revision reads as follows: 

§ 121.13 Restricted experiments. 

(a) An individual or entity may not 

conduct, or possess products resulting 

from, the following experiments unless 

approved by and conducted in 

accordance with the conditions 

prescribed by the Administrator: 

(1) Experiments that involve the 

deliberate transfer of, or selection for, a 

drug resistance trait to select agents that 

are not known to acquire the trait 

naturally, if such acquisition could 

compromise the control of disease 

agents in humans, veterinary medicine, 

or agriculture. 

(2) Experiments involving the 

deliberate formation of synthetic or 

recombinant DNA containing genes for 

the biosynthesis of select toxins lethal 

for vertebrates at an LD[50] <100 ng/kg 

body weight. 

* * * * * 

Done in Washington, DC, this 1st day of 

May 2014. 

Kevin Shea, 

Administrator, Animal and Plant Health 

Inspection Service. 

[FR Doc. 2014–10741 Filed 5–9–14; 8:45 am] 

BILLING CODE 3410–34–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 1 

RIN 3038–AD88 

Enhancing Protections Afforded 

Customers and Customer Funds Held 

by Futures Commission Merchants 

and Derivatives Clearing 

Organizations; Correction 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Correcting amendments. 

SUMMARY: The Commodity Futures 

Trading Commission (‘‘Commission’’ or 

‘‘CFTC’’) is correcting final rules 

published in the Federal Register of 

November 14, 2013 (78 FR 68506). 

Those rules, 17 CFR Parts 1, 3, 22, 30, 

and 140, took effect on January 13, 2014. 

This correction amends Appendix B to 

17 CFR 1.20 and Appendix B to 17 CFR 

1.26 by removing a phrase from both 

appendices. 

DATES: Effective on May 12, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Parisa Abadi, Attorney-Advisor, 202– 

418–6620, pabadi@cftc.gov, Division of 

Clearing and Risk, Commodity Futures 

Trading Commission, Three Lafayette 

Centre, 1155 21st Street NW., 

Washington, DC 20581. 

SUPPLEMENTARY INFORMATION: In the 

Federal Register of November 14, 2013 

(78 FR 68506), the Commission 

published final rules adopting new 

regulations and amending existing 

regulations to require enhanced 

customer protections, risk management 

programs, internal monitoring and 

controls, capital and liquidity standards, 

customer disclosures, and auditing and 

examination programs for futures 

commission merchants (‘‘FCMs’’). The 

final rules also address certain related 

issues concerning derivatives clearing 

organizations (‘‘DCOs’’), including the 

requirement that a DCO obtain a written 

acknowledgment from each depository 

or money market mutual fund with 

which the DCO holds or invests 

customer funds, in the form of a 

standard template letter set forth in 

Appendix B to 17 CFR 1.20— 

Derivatives Clearing Organization 

Acknowledgment Letter for CFTC 

Regulation 1.20 Customer Segregated 

Account, and in Appendix B to 17 CFR 

1.26—Derivatives Clearing Organization 

Acknowledgment Letter for CFTC 

Regulation 1.26 Customer Segregated 

Money Market Mutual Fund Account, 

respectively (each an ‘‘Acknowledgment 

Letter’’). 

The sixth full paragraph 1 of the body 

of the Acknowledgment Letter set forth 

in Appendix B to 17 CFR 1.20 and the 

seventh full paragraph of the body of the 

Acknowledgment Letter set forth in 

Appendix B to 17 CFR 1.26 address the 

depository’s or money market mutual 

fund’s obligations in the event of the 

bankruptcy of the DCO account holder. 

The provisions are intended to relate 

exclusively to the bankruptcy of the 

account holder and should not 

additionally refer to the bankruptcy of 


emcdonald on DSK67QTVN1PROD with RULES
26832 Federal Register / Vol. 79, No. 91 / Monday, May 12, 2014 / Rules and Regulations 

‘‘any of our futures commission 

merchant clearing members.’’ 

To correct this error, the Commission 

is making a correcting amendment to 

remove the reference to ‘‘futures 

commission merchant clearing 

members’’ found in the text of 

Appendix B to 17 CFR 1.20 and 

Appendix B to 17 CFR 1.26. The 

Commission is also adopting 

conforming changes in grammar, 

punctuation, and formatting. 

List of Subjects in 17 CFR Part 1 

Brokers, Commodity futures, 

Consumer protection, Reporting and 

recordkeeping requirements. 

Accordingly, 17 CFR part 1 is 

corrected by making the following 

correcting amendments: 

PART 1—GENERAL REGULATIONS 

UNDER THE COMMODITY EXCHANGE 

ACT 

■ 1. The authority citation for part 1 

continues to read as follows: 

Authority: 7 U.S.C. 1a, 2, 5, 6, 6a, 6b, 6c, 

6d, 6e, 6f, 6g, 6h, 6i, 6k, 6l, 6m, 6n, 6o, 6p, 

6r, 6s, 7, 7a–1, 7a–2, 7b, 7b–3, 8, 9, 10a, 12, 

12a, 12c, 13a, 13a–1, 16, 16a, 19, 21, 23, and 

24, as amended by Title VII of the DoddFrank Wall Street Reform and Consumer 

Protection Act, Pub. L. 111–203, 124 Stat. 

1376 (2010). 

■ 2. Revise Appendix B to § 1.20 to read 

as follows: 

§ 1.20 Futures customer funds to be 

segregated and separately accounted for. 

* * * * * 

Appendix B to § 1.20—Derivatives 

Clearing Organization 

Acknowledgment Letter for CFTC 

Regulation 1.20 Customer Segregated 

Account 

[Date] 

[Name and Address of Bank or Trust 

Company] 

We refer to the Segregated Account(s) 

which [Name of Derivatives Clearing 

Organization] (‘‘we’’ or ‘‘our’’) have opened 

or will open with [Name of Bank or Trust 

Company] (‘‘you’’ or ‘‘your’’) entitled: 

[Name of Derivatives Clearing Organization] 

Futures Customer Omnibus Account, CFTC 

Regulation 1.20 Customer Segregated 

Account under Sections 4d(a) and 4d(b) of 

the Commodity Exchange Act [and, if 

applicable, ‘‘, Abbreviated as [short title 

reflected in the depository’s electronic 

system]’’] 

Account Number(s): [ ] 

(collectively, the ‘‘Account(s)’’). 

You acknowledge that we have opened or 

will open the above-referenced Account(s) 

for the purpose of depositing, as applicable, 

money, securities and other property 

(collectively the ‘‘Funds’’) of customers who 

trade commodities, options, swaps, and other 

products, as required by Commodity Futures 

Trading Commission (‘‘CFTC’’) Regulations, 

including Regulation 1.20, as amended; that 

the Funds held by you, hereafter deposited 

in the Account(s) or accruing to the credit of 

the Account(s), will be separately accounted 

for and segregated on your books from our 

own funds and from any other funds or 

accounts held by us in accordance with the 

provisions of the Commodity Exchange Act, 

as amended (the ‘‘Act’’), and Part 1 of the 

CFTC’s regulations, as amended; and that the 

Funds must otherwise be treated in 

accordance with the provisions of Section 4d 

of the Act and CFTC regulations thereunder. 

Furthermore, you acknowledge and agree 

that such Funds may not be used by you or 

by us to secure or guarantee any obligations 

that we might owe to you, and they may not 

be used by us to secure or obtain credit from 

you. You further acknowledge and agree that 

the Funds in the Account(s) shall not be 

subject to any right of offset or lien for or on 

account of any indebtedness, obligations or 

liabilities we may now or in the future have 

owing to you. This prohibition does not 

affect your right to recover funds advanced 

in the form of cash transfers, lines of credit, 

repurchase agreements or other similar 

liquidity arrangements you make in lieu of 

liquidating non-cash assets held in the 

Account(s) or in lieu of converting cash held 

in the Account(s) to cash in a different 

currency. 

You agree to reply promptly and directly 

to any request for confirmation of account 

balances or provision of any other 

information regarding or related to the 

Account(s) from the director of the Division 

of Clearing and Risk of the CFTC or the 

director of the Division of Swap Dealer and 

Intermediary Oversight of the CFTC, or any 

successor divisions, or such directors’ 

designees, and this letter constitutes the 

authorization and direction of the 

undersigned on our behalf to release the 

requested information without further notice 

to or consent from us. 

The parties agree that all actions on your 

part to respond to the above information 

requests will be made in accordance with, 

and subject to, such usual and customary 

authorization verification and authentication 

policies and procedures as may be employed 

by you to verify the authority of, and 

authenticate the identity of, the individual 

making any such information request, in 

order to provide for the secure transmission 

and delivery of the requested information to 

the appropriate recipient(s). 

We will not hold you responsible for acting 

pursuant to any information request from the 

director of the Division of Clearing and Risk 

of the CFTC or the director of the Division 

of Swap Dealer and Intermediary Oversight 

of the CFTC, or any successor divisions, or 

such directors’ designees, upon which you 

have relied after having taken measures in 

accordance with your applicable policies and 

procedures to assure that such request was 

provided to you by an individual authorized 

to make such a request. 

In the event that we become subject to 

either a voluntary or involuntary petition for 

relief under the U.S. Bankruptcy Code, we 

acknowledge that you will have no obligation 

to release the Funds held in the Account(s), 

except upon instruction of the Trustee in 

Bankruptcy or pursuant to the Order of the 

respective U.S. Bankruptcy Court. 

Notwithstanding anything in the foregoing 

to the contrary, nothing contained herein 

shall be construed as limiting your right to 

assert any right of offset or lien on assets that 

are not Funds maintained in the Account(s), 

or to impose such charges against us or any 

proprietary account maintained by us with 

you. Further, it is understood that amounts 

represented by checks, drafts or other items 

shall not be considered to be part of the 

Account(s) until finally collected. 

Accordingly, checks, drafts and other items 

credited to the Account(s) and subsequently 

dishonored or otherwise returned to you or 

reversed, for any reason, and any claims 

relating thereto, including but not limited to 

claims of alteration or forgery, may be 

charged back to the Account(s), and we shall 

be responsible to you as a general endorser 

of all such items whether or not actually so 

endorsed. 

You may conclusively presume that any 

withdrawal from the Account(s) and the 

balances maintained therein are in 

conformity with the Act and CFTC 

regulations without any further inquiry, 

provided that, in the ordinary course of your 

business as a depository, you have no notice 

of or actual knowledge of a potential 

violation by us of any provision of the Act 

or the CFTC regulations that relates to the 

segregation of customer funds; and you shall 

not in any manner not expressly agreed to 

herein be responsible to us for ensuring 

compliance by us with such provisions of the 

Act and CFTC regulations; however, the 

aforementioned presumption does not affect 

any obligation you may otherwise have under 

the Act or CFTC regulations. 

You may, and are hereby authorized to, 

obey the order, judgment, decree or levy of 

any court of competent jurisdiction or any 

governmental agency with jurisdiction, 

which order, judgment, decree or levy relates 

in whole or in part to the Account(s). In any 

event, you shall not be liable by reason of any 

action or omission to act pursuant to any 

such order, judgment, decree or levy, to us 

or to any other person, firm, association or 

corporation even if thereafter any such order, 

decree, judgment or levy shall be reversed, 

modified, set aside or vacated. 

The terms of this letter agreement shall 

remain binding upon the parties, their 

successors and assigns and, for the avoidance 

of doubt, regardless of a change in the name 

of either party. This letter agreement 

supersedes and replaces any prior agreement 

between the parties in connection with the 

Account(s), including but not limited to any 

prior acknowledgment letter agreement, to 

the extent that such prior agreement is 

inconsistent with the terms hereof. In the 

event of any conflict between this letter 

agreement and any other agreement between 

the parties in connection with the 

Account(s), this letter agreement shall govern 

with respect to matters specific to Section 4d 

of the Act and the CFTC’s regulations 

thereunder, as amended. 

This letter agreement shall be governed by 

and construed in accordance with the laws 


emcdonald on DSK67QTVN1PROD with RULES
Federal Register / Vol. 79, No. 91 / Monday, May 12, 2014 / Rules and Regulations 26833 

of [Insert governing law] without regard to 

the principles of choice of law. 

Please acknowledge that you agree to abide 

by the requirements and conditions set forth 

above by signing and returning to us the 

enclosed copy of this letter agreement, and 

that you further agree to provide a copy of 

this fully executed letter agreement directly 

to the CFTC (via electronic means in a format 

and manner determined by the CFTC). We 

hereby authorize and direct you to provide 

such copy without further notice to or 

consent from us, no later than three business 

days after opening the Account(s) or revising 

this letter agreement, as applicable. 

[Name of Derivatives Clearing Organization] 

By: 

Print Name: 

Title: 

ACKNOWLEDGED AND AGREED: 

[Name of Bank or Trust Company] 

By: 

Print Name: 

Title: 

Contact Information: [Insert phone number 

and email address] 

DATE: 

■ 3. Revise Appendix B to § 1.26 to read 

as follows: 

§ 1.26 Deposit of instruments purchased 

with futures customer funds. 

* * * * * 

Appendix B to § 1.26—Derivatives 

Clearing Organization 

Acknowledgment Letter for CFTC 

Regulation 1.26 Customer Segregated 

Money Market Mutual Fund Account 

[Date] 

[Name and Address of Money Market Mutual 

Fund] 

We propose to invest funds held by [Name 

of Derivatives Clearing Organization] (‘‘we’’ 

or ‘‘our’’) on behalf of customers in shares of 

[Name of Money Market Mutual Fund] 

(‘‘you’’ or ‘‘your’’) under account(s) entitled 

(or shares issued to): 

[Name of Derivatives Clearing Organization] 

Futures Customer Omnibus Account, CFTC 

Regulation 1.26 Customer Segregated 

Money Market Mutual Fund Account 

under Sections 4d(a) and 4d(b) of the 

Commodity Exchange Act [and, if 

applicable, ‘‘, Abbreviated as [short title 

reflected in the depository’s electronic 

system]’’] 

Account Number(s): [ ] 

(collectively, the ‘‘Account(s)’’). 

You acknowledge that we are holding these 

funds, including any shares issued and 

amounts accruing in connection therewith 

(collectively, the ‘‘Shares’’), for the benefit of 

customers who trade commodities, options, 

swaps and other products, as required by 

Commodity Futures Trading Commission 

(‘‘CFTC’’) Regulation 1.26, as amended; that 

the Shares held by you, hereafter deposited 

in the Account(s) or accruing to the credit of 

the Account(s), will be separately accounted 

for and segregated on your books from our 

own funds and from any other funds or 

accounts held by us in accordance with the 

provisions of the Commodity Exchange Act, 

as amended (the ‘‘Act’’), and Part 1 of the 

CFTC’s regulations, as amended; and that the 

Shares must otherwise be treated in 

accordance with the provisions of Section 4d 

of the Act and CFTC regulations thereunder. 

Furthermore, you acknowledge and agree 

that such Shares may not be used by you or 

by us to secure or guarantee any obligations 

that we might owe to you, and they may not 

be used by us to secure or obtain credit from 

you. You further acknowledge and agree that 

the Shares in the Account(s) shall not be 

subject to any right of offset or lien for or on 

account of any indebtedness, obligations or 

liabilities we may now or in the future have 

owing to you. 

You agree to reply promptly and directly 

to any request for confirmation of account 

balances or provision of any other 

information regarding or related to the 

Account(s) from the director of the Division 

of Clearing and Risk of the CFTC or the 

director of the Division of Swap Dealer and 

Intermediary Oversight of the CFTC, or any 

successor divisions, or such directors’ 

designees, and this letter constitutes the 

authorization and direction of the 

undersigned on our behalf to release the 

requested information without further notice 

to or consent from us. 

The parties agree that all actions on your 

part to respond to the above information 

requests will be made in accordance with, 

and subject to, such usual and customary 

authorization verification and authentication 

policies and procedures as may be employed 

by you to verify the authority of, and 

authenticate the identity of, the individual 

making any such information request, in 

order to provide for the secure transmission 

and delivery of the requested information to 

the appropriate recipient(s). 

We will not hold you responsible for acting 

pursuant to any information request from the 

director of the Division of Clearing and Risk 

of the CFTC or the director of the Division 

of Swap Dealer and Intermediary Oversight 

of the CFTC, or any successor divisions, or 

such directors’ designees, upon which you 

have relied after having taken measures in 

accordance with your applicable policies and 

procedures to assure that such request was 

provided to you by an individual authorized 

to make such a request. 

In the event that we become subject to 

either a voluntary or involuntary petition for 

relief under the U.S. Bankruptcy Code, we 

acknowledge that you will have no obligation 

to release the Shares held in the Account(s), 

except upon instruction of the Trustee in 

Bankruptcy or pursuant to the Order of the 

respective U.S. Bankruptcy Court. 

Notwithstanding anything in the foregoing 

to the contrary, nothing contained herein 

shall be construed as limiting your right to 

assert any right of offset or lien on assets that 

are not Shares maintained in the Account(s), 

or to impose such charges against us or any 

proprietary account maintained by us with 

you. Further, it is understood that amounts 

represented by checks, drafts or other items 

shall not be considered to be part of the 

Account(s) until finally collected. 

Accordingly, checks, drafts and other items 

credited to the Account(s) and subsequently 

dishonored or otherwise returned to you or 

reversed, for any reason, and any claims 

relating thereto, including but not limited to 

claims of alteration or forgery, may be 

charged back to the Account(s), and we shall 

be responsible to you as a general endorser 

of all such items whether or not actually so 

endorsed. 

You may conclusively presume that any 

withdrawal from the Account(s) and the 

balances maintained therein are in 

conformity with the Act and CFTC 

regulations without any further inquiry, 

provided that, in the ordinary course of your 

business as a depository, you have no notice 

of or actual knowledge of a potential 

violation by us of any provision of the Act 

or the CFTC regulations that relates to the 

segregation of customer funds; and you shall 

not in any manner not expressly agreed to 

herein be responsible to us for ensuring 

compliance by us with such provisions of the 

Act and CFTC regulations; however, the 

aforementioned presumption does not affect 

any obligation you may otherwise have under 

the Act or CFTC regulations. 

You may, and are hereby authorized to, 

obey the order, judgment, decree or levy of 

any court of competent jurisdiction or any 

governmental agency with jurisdiction, 

which order, judgment, decree or levy relates 

in whole or in part to the Account(s). In any 

event, you shall not be liable by reason of any 

action or omission to act pursuant to any 

such order, judgment, decree or levy, to us 

or to any other person, firm, association or 

corporation even if thereafter any such order, 

decree, judgment or levy shall be reversed, 

modified, set aside or vacated. 

We are permitted to invest customers’ 

funds in money market mutual funds 

pursuant to CFTC Regulation 1.25. That rule 

sets forth the following conditions, among 

others, with respect to any investment in a 

money market mutual fund: 

(1) The net asset value of the fund must be 

computed by 9:00 a.m. of the business day 

following each business day and be made 

available to us by that time; 

(2) The fund must be legally obligated to 

redeem an interest in the fund and make 

payment in satisfaction thereof by the close 

of the business day following the day on 

which we make a redemption request except 

as otherwise specified in CFTC Regulation 

1.25(c)(5)(ii); and, 

(3) The agreement under which we invest 

customers’ funds must not contain any 

provision that would prevent us from 

pledging or transferring fund shares. 

The terms of this letter agreement shall 

remain binding upon the parties, their 

successors and assigns and, for the avoidance 

of doubt, regardless of a change in the name 

of either party. This letter agreement 

supersedes and replaces any prior agreement 

between the parties in connection with the 

Account(s), including but not limited to any 

prior acknowledgment letter agreement, to 

the extent that such prior agreement is 

inconsistent with the terms hereof. In the 

event of any conflict between this letter 

agreement and any other agreement between 

the parties in connection with the 


emcdonald on DSK67QTVN1PROD with RULES
26834 Federal Register / Vol. 79, No. 91 / Monday, May 12, 2014 / Rules and Regulations 

Account(s), this letter agreement shall govern 

with respect to matters specific to Section 4d 

of the Act and the CFTC’s regulations 

thereunder, as amended. 

This letter agreement shall be governed by 

and construed in accordance with the laws 

of [Insert governing law] without regard to 

the principles of choice of law. 

Please acknowledge that you agree to abide 

by the requirements and conditions set forth 

above by signing and returning to us the 

enclosed copy of this letter agreement, and 

that you further agree to provide a copy of 

this fully executed letter agreement directly 

to the CFTC (via electronic means in a format 

and manner determined by the CFTC) in 

accordance with CFTC Regulation 1.20. We 

hereby authorize and direct you to provide 

such copy without further notice to or 

consent from us, no later than three business 

days after opening the Account(s) or revising 

this letter agreement, as applicable. 

[Name of Derivatives Clearing Organization] 

By: 

Print Name: 

Title: 

ACKNOWLEDGED AND AGREED: 

[Name of Money Market Mutual Fund] 

By: 

Print Name: 

Title: 

Contact Information: [Insert phone number 

and email address] 

DATE: 

Issued in Washington, DC, on May 5, 2014, 

by the Commission. 

Christopher J. Kirkpatrick, 

Deputy Secretary of the Commission. 

[FR Doc. 2014–10650 Filed 5–9–14; 8:45 am] 

BILLING CODE 6351–01–P 

AGENCY FOR INTERNATIONAL 

DEVELOPMENT 

22 CFR Part 234 

Ukraine Guarantees Issued Under the 

Support for the Sovereignty, Integrity, 

Democracy, and Economic Stability of 

Ukraine Act of 2014—Standard Terms 

and Conditions 

AGENCY: Agency for International 

Development (USAID). 

ACTION: Final rule. 

SUMMARY: This regulation prescribes the 

procedures and standard terms and 

conditions applicable to loan guarantees 

to be issued for the benefit of Ukraine 

pursuant to the Support for the 

Sovereignty, Integrity, Democracy, and 

Economic Stability of Ukraine Act of 

2014. 

DATES: Effective May 9, 2014. 

FOR FURTHER INFORMATION CONTACT: D. 

Bruce McPherson, Office of General 

Counsel, U.S. Agency for International 

Development, Washington, DC 20523– 

6601; tel. 202–712–1611, fax 202–216– 

3055. 

SUPPLEMENTARY INFORMATION: Pursuant 

to the Support for the Sovereignty, 

Integrity, Democracy, and Economic 

Stability of Ukraine Act of 2014 (Pub. L. 

113–95), the United States of America, 

acting through the U.S. Agency for 

International Development, may issue 

certain loan guarantees applicable to 

sums borrowed by Ukraine (the 

‘‘Borrower’’), not exceeding an aggregate 

total of U.S. $1 billion in principal 

amount. Upon issuance, the loan 

guarantees shall ensure the Borrower’s 

repayment of 100% of principal and 

interest due under such borrowings and 

the full faith and credit of the United 

States of America shall be pledged for 

the full payment and performance of 

such guarantee obligations. 

This rulemaking document is not 

subject to rulemaking under 5 U.S.C. 

553 or to regulatory review under 

Executive Order 12866 because it 

involves a foreign affairs function of the 

United States. The provisions of the 

Paperwork Reduction Act (44 U.S.C. 

3501 et seq.) do not apply. 

List of Subjects in 22 CFR Part 234 

Foreign aid, Foreign relations, 

Guaranteed loans, Loan programs— 

foreign relations. 

Authority and Issuance 

Accordingly, a new part 234 is added 

to Title 22, Chapter II, of the Code of 

Federal Regulations, as follows: 

PART 234—UKRAINE LOAN 

GUARANTEES ISSUED UNDER THE 

SUPPORT FOR THE SOVEREIGNTY, 

INTEGRITY, DEMOCRACY, AND 

ECONOMIC STABILITY OF UKRAINE 

ACT OF 2014, PUB. L. 113–95— 

STANDARD TERMS AND CONDITIONS 

Sec. 

234.1 Purpose. 

234.2 Definitions. 

234.3 The Guarantee. 

234.4 Guarantee eligibility. 

234.5 Non-impairment of the Guarantee. 

234.6 Transferability of Guarantee; Note 

Register. 

234.7 Fiscal Agent obligations. 

234.8 Event of Default; Application for 

Compensation; payment. 

234.9 No acceleration of Eligible Notes. 

234.10 Payment to USAID of excess 

amounts received by a Noteholder. 

234.11 Subrogation of USAID. 

234.12 Prosecution of claims. 

234.13 Change in agreements. 

234.14 Arbitration. 

234.15 Notice. 

234.16 Governing Law. 

Appendix A to Part 234—Application for 

Compensation 

Authority: Pub. L. 113–95, 128 Stat. 1088. 

§ 234.1 Purpose. 

The purpose of the regulations in this 

part is to prescribe the procedures and 

standard terms and conditions 

applicable to loan guarantees issued for 

the benefit of the Borrower, pursuant to 

the Support for the Sovereignty, 

Integrity, Democracy, and Economic 

Stability of Ukraine Act of 2014 (Pub. L. 

113–95). The loan guarantees will be 

issued as provided herein pursuant to 

the Loan Guarantee Agreement, dated 

April 14, 2014, between the United 

States of America and Ukraine (the 

‘‘Loan Guarantee Agreement’’). The loan 

guarantee will apply to sums borrowed 

during a period beginning on the date 

that the Loan Guarantee Agreement 

enters into force and ending thirty days 

after such date, not exceeding an 

aggregate total of one billion United 

States Dollars ($1,000,000,000) in 

principal amount. The loan guarantees 

shall ensure the Borrower’s repayment 

of 100% of principal and interest due 

under such borrowings. The full faith 

and credit of the United States of 

America is pledged for the full payment 

and performance of such guarantee 

obligations. 

§ 234.2 Definitions. 

Wherever used in the standard terms 

and conditions set out in this part: 

Applicant means a Noteholder who 

files an Application for Compensation 

with USAID, either directly or through 

the Fiscal Agent acting on behalf of a 

Noteholder. 

Application for Compensation means 

an executed application in the form of 

Appendix A to this part which a 

Noteholder, or the Fiscal Agent on 

behalf of a Noteholder, files with USAID 

pursuant to § 234.8. 

Borrower means Ukraine. 

Business Day means any day other 

than a day on which banks in New 

York, NY are closed or authorized to be 

closed or a day which is observed as a 

federal holiday in Washington, DC, by 

the United States Government. 

Date of Application means the date on 

which an Application for Compensation 

is actually received by USAID pursuant 

to § 234.15. 

Defaulted Payment means, as of any 

date and in respect of any Eligible Note, 

any Interest Amount and/or Principal 

Amount not paid when due. 

Eligible Note(s) means [a] Note[s] 

meeting the eligibility criteria set out in 

§ 234.4. 

Fiscal Agency Agreement means the 

agreement among USAID, the Borrower 

and the Fiscal Agent pursuant to which 

the Fiscal Agent agrees to provide fiscal 

agency and trust services in respect of 

the Note[s], a copy of which Fiscal 


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