Federal Register / Vol. 79, No. 213 / Tuesday, November 4, 2014 / Proposed Rules 65353 

1 12 CFR part 704; 75 FR 64786 (Oct. 20, 2010). 

2 76 FR 23861 (Apr. 29, 2011); 76 FR 79531 (Dec. 

22, 2011). The Board also made technical changes 

to the regulations in 2011 and 2013. 76 FR 16235 

(Mar. 23, 2011); 78 FR 77563 (Dec. 24, 2013). 

reduces comment processing and 

posting time. 

Confidential Business Information. 

According to 10 CFR 1004.11, any 

person submitting information that he 

or she believes to be confidential and 

exempt by law from public disclosure 

should submit via email, postal mail, or 

hand delivery two well-marked copies: 

one copy of the document marked 

confidential including all the 

information believed to be confidential, 

and one copy of the document marked 

non-confidential with the information 

believed to be confidential deleted. 

Submit these documents via email or on 

a CD, if feasible. DOE will make its own 

determination about the confidential 

status of the information and treat it 

according to its determination. 

Factors of interest to DOE when 

evaluating requests to treat submitted 

information as confidential include: (1) 

A description of the items; (2) whether 

and why such items are customarily 

treated as confidential within the 

industry; (3) whether the information is 

generally known by or available from 

other sources; (4) whether the 

information has previously been made 

available to others without obligation 

concerning its confidentiality; (5) an 

explanation of the competitive injury to 

the submitting person which would 

result from public disclosure; (6) when 

such information might lose its 

confidential character due to the 

passage of time; and (7) why disclosure 

of the information would be contrary to 

the public interest. 

It is DOE’s policy that all comments 

may be included in the public docket, 

without change and as received, 

including any personal information 

provided in the comments (except 

information deemed to be exempt from 

public disclosure). 

Issued in Washington, DC, on October 29, 

2014. 

Kathleen B. Hogan, 

Deputy Assistant Secretary for Energy 

Efficiency, Energy Efficiency and Renewable 

Energy. 

[FR Doc. 2014–26166 Filed 11–3–14; 8:45 am] 

BILLING CODE 6450–01–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 704 

RIN 3133–AE43 

Corporate Credit Unions 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Proposed rule. 

SUMMARY: The NCUA Board (Board) is 

issuing proposed amendments to its 

regulations governing corporate credit 

unions (Corporates) and the scope of 

their activities. The proposed 

amendments clarify the mechanics of a 

number of substantive regulatory 

provisions and also make several nonsubstantive, technical corrections to 

various provisions. 

DATES: Comments must be received on 

or before January 5, 2015. 

ADDRESSES: You may submit comments 

by any of the following methods, but 

please send comments by one method 

only: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• NCUA Web site: http://

www.ncua.gov/

RegulationsOpinionsLaws/proposed_

regs/proposed_regs.html. Follow the 

instructions for submitting comments. 

• Email: Address to regcomments@

ncua.gov. Include ‘‘[Your name]— 

Comments on Proposed Rule— 

Corporate Credit Unions’’ in the email 

subject line. 

• Fax: (703) 518–6319. Use the 

subject line described above for email. 

• Mail: Address to Gerard Poliquin, 

Secretary of the Board, National Credit 

Union Administration, 1775 Duke 

Street, Alexandria, Virginia 22314– 

3428. 

• Hand Delivery/Courier: Same as 

mail address. 

FOR FURTHER INFORMATION CONTACT: 

David Shetler, Deputy Director, Office of 

National Examinations and Supervision, 

at the above address or telephone (703) 

518–6640; or Frank Kressman, Associate 

General Counsel, Office of General 

Counsel, at the above address or 

telephone (703) 518–6540. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Background 

II. Proposed Amendments 

III. Regulatory Procedures 

I. Background 

In 2010, the Board comprehensively 

revised the regulations governing 

Corporates and their activities.1 The 

Board also amended those regulations 

twice more in 2011.2 The Board has 

since identified the need to update the 

Corporate regulations by streamlining 

and clarifying certain provisions and 

incorporating a number of technical 

amendments to enhance readability. 

The amendments also provide a 

measure of regulatory relief to the 

Corporates. 

II. Proposed Amendments 

1. Section 704.2—Definitions 

The current rule defines a number of 

terms that contain the word ‘‘capital’’ or 

otherwise relate to ‘‘capital.’’ Some of 

these terms are duplicative and 

unnecessary. Accordingly, the Board 

proposes to delete several of these terms 

and also redefine a number of other 

terms to minimize confusion and 

enhance the effectiveness of the 

regulation. The proposal deletes the 

distinct definitions of ‘‘adjusted core 

capital’’ and ‘‘core capital’’ and 

incorporates them into the definition of 

‘‘Tier 1 capital.’’ The proposal also 

deletes the term ‘‘capital’’ when used as 

a specific measure, and replaces it with 

the term ‘‘total capital.’’ Finally, the 

proposal deletes the definition of 

‘‘supplementary capital’’ and 

incorporates it into the definition of 

‘‘Tier 2 capital.’’ 

The proposal also deletes the 

definitions of the terms ‘‘asset-backed 

commercial paper program,’’ ‘‘credit 

enhancing interest-only strip,’’ and 

‘‘eligible ABCP facility,’’ all of which 

are used in Appendix C to part 704. 

Corporates generally do not engage in 

the kinds of activities described by these 

terms. By deleting these definitions, the 

Board emphasizes that these activities 

are not consistent with the regular 

business activities of Corporates. 

The proposal also modifies a number 

of definitions to provide greater clarity 

or to make them consistent with other 

NCUA regulations. These include the 

definitions of ‘‘available to cover losses 

that exceed retained earnings,’’ 

‘‘derivatives,’’ ‘‘equity investment,’’ 

‘‘equity security,’’ ‘‘fair value,’’ ‘‘internal 

control,’’ and ‘‘retained earnings.’’ 

Lastly, the current rule contains two 

definitions for ‘‘leverage ratio,’’ one for 

use before October 21, 2013, and one for 

use on or after that date. The proposal 

deletes the pre-October 21, 2013, 

definition and modifies the latter 

definition to reflect the proposed 

substitution of ‘‘Tier 1 capital’’ for 

‘‘adjusted core capital.’’ 

2. Section 704.3—Corporate Credit 

Union Capital 

The proposal amends §§ 704.3(b)(5) 

and 704.3(c)(3), regarding Corporate 

capital, to clarify that upon redeeming 

or calling nonperpetual capital accounts 

or perpetual contributed capital 

instruments, a Corporate must continue 

to meet its minimum required capital 


rmajette on DSK3VPTVN1PROD with PROPOSALS
65354 Federal Register / Vol. 79, No. 213 / Tuesday, November 4, 2014 / Proposed Rules 

3 12 CFR 712.3(d)(4) and (5); 78 FR 72537 (Dec. 

3, 2013). 

and net economic value ratios. These 

clarifications make the provisions 

consistent with each other and with the 

terms and conditions of contributed 

capital included in the Model Forms in 

Appendix A to part 704. The proposal 

also deletes § 704.3(f)(4), as that 

provision refers to a regulatory 

requirement that Corporates were to 

have complied with prior to December 

20, 2011. 

3. Section 704.5—Investments 

The proposal amends § 704.5(j) 

regarding grandfathering certain 

Corporate investments. The proposal 

clarifies that, while a Corporate may 

continue to hold an investment that was 

permissible at the time of purchase but 

later became impermissible because of a 

regulatory change, the investment is still 

subject to all other sections of part 704 

that apply to investments, including 

those pertaining to credit risk 

management, asset and liability 

management, liquidity management, 

and investment action plans. 

4. Section 704.6—Credit Risk 

Management 

Section 704.6 establishes issuer and 

sector concentration limits to control 

the credit risk of Corporate investment 

activities, but does not specify how to 

value investments when calculating 

aggregate amounts. In response to 

requests for clarification, the proposal 

states that the appropriate measure is 

the value of relevant investments 

recorded on the books of the Corporate. 

This measure includes the value of the 

investment after accreting or amortizing 

the investment purchase premium or 

discount, as applicable. 

5. Section 704.7—Lending 

Section 704.7(c) currently restricts a 

Corporate’s unsecured member lending 

to 50 percent of capital and its secured 

member lending to 100 percent of 

capital. First, the proposal amends the 

provision by basing the lending limit on 

the Corporate’s total capital, consistent 

with the definitional changes discussed 

above. Second, in response to requests 

by Corporates for greater flexibility, the 

proposal amends the provision to allow 

a higher level of secured lending. The 

rule continues to limit unsecured 

lending to 50 percent of total capital, 

but permits secured lending up to the 

full 150 percent of total capital limit. 

Under the proposal, each Corporate may 

determine its preferred composition of 

secured versus unsecured lending. 

6. Section 704.8—Asset and Liability 

Management 

Section 704.8 establishes 

requirements to identify, measure, 

monitor, and control risk in the 

management of assets and liabilities. 

These include interest rate sensitivity 

analyses, net interest income modeling, 

and limiting the weighted average life of 

assets. Section 704.8(j) imposes 

reporting and other requirements on 

Corporates that experience a decline in 

net economic value (NEV) or other NEVrelated measures beyond certain 

thresholds. The proposal clarifies that if 

a Corporate does experience such NEVrelated breaches, but is able to adjust its 

balance sheet to meet required 

regulatory limits within 10 days, then 

the Corporate will not be considered to 

be in violation of the regulation. NCUA 

recognizes that, through the normal 

course of business, a Corporate may 

temporarily experience an NEV-related 

breach. Often, a Corporate can resolve 

the breach within a timely manner, 

which is why the current rule permits 

the Corporate to resolve any breach 

within 10 days prior to further 

regulatory action being taken. The 

proposed rule clarifies that only if a 

Corporate cannot resolve the breach in 

a timely manner would there be a cause 

for regulatory concern and, as such, be 

considered a regulatory violation. 

7. Section 704.9—Liquidity Management 

Section 704.9(b) currently restricts a 

Corporate’s borrowing to the lower of 10 

times capital or 50 percent of capital 

and shares. First, the proposal amends 

the provision by changing the limit to 

10 percent of total capital, consistent 

with the definitional changes discussed 

above. Second, recognizing that tying 

the borrowing limit to a percentage of 

shares may, in the event of a share 

outflow, limit a Corporate’s ability to 

borrow at a critical time, the proposal 

removes the restriction of 50 percent of 

capital and shares. Finally, the proposal 

increases the secured borrowing 

maturity limit from 30 to 120 days to 

accommodate seasonality in the 

borrowing patterns of member credit 

unions. NCUA believes that this 

extension will not materially increase 

risk and will allow Corporates to better 

serve their members. 

8. Section 704.11—Corporate Credit 

Union Service Organizations (CUSOs) 

Section 704.11(e) addresses 

permissible Corporate CUSO activities 

and includes implementing dates that 

were prospective when the Board 

adopted the provision in 2010. Those 

dates have passed, and the proposal 

simplifies the provision by removing 

them. 

Section 704.11(g) provides that before 

making an investment in or loan to a 

Corporate CUSO, a Corporate must 

obtain written agreement from the 

Corporate CUSO that the Corporate 

CUSO will meet certain requirements. 

These include following generally 

accepted accounting principles, 

providing financial statements to the 

Corporate, and obtaining an annual CPA 

audit. The proposal also adds the 

requirement that a Corporate CUSO 

provide to NCUA and, if applicable, the 

appropriate state supervisory authority 

(SSA) the kinds of informational reports 

required to be produced and submitted 

by natural person CUSOs pursuant to a 

recent revision to NCUA’s general 

CUSO rule.3 This additional 

information will enhance NCUA’s 

ability to monitor a Corporate’s CUSOrelated activities consistent with the 

monitoring adopted for natural person 

credit unions’ CUSOs. 

9. Section 704.14—Representation 

Section 704.14(a)(2) provides that an 

individual must hold a specified 

management position in a member 

credit union to be eligible to seek 

election to the board of directors of a 

Corporate. A question has arisen as to 

whether the individual must hold that 

position at the member credit union at 

the time his or her Corporate board 

service begins. The proposal amends 

this provision to clarify that an 

individual may run for a seat on the 

board of a Corporate only if he or she 

will continue to hold one of the 

required member management positions 

at the time he or she will serve on the 

Corporate board. The proposal also 

simplifies and corrects § 704.14 by 

removing expired implementing dates 

and replacing the term ‘‘Regional 

Director’’ with the term ‘‘ONES 

Director.’’ 

10. Section 704.15—Audit and 

Reporting Requirements 

Section 704.15 establishes auditing 

and reporting requirements for 

Corporates. When adopted in 2011, the 

provision contained implementing dates 

that have since passed. The proposal 

makes technical changes to the 

provision by eliminating those dates 

and correcting a typographical error. 

11. Section 704.18—Fidelity Bond 

Coverage 

Section 704.18 establishes fidelity 

bond requirements for Corporate 


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Federal Register / Vol. 79, No. 213 / Tuesday, November 4, 2014 / Proposed Rules 65355 

4 5 U.S.C. 603(a); 12 U.S.C. 1787(c)(1). 

5 44 U.S.C. 3507(d); 5 CFR part 1320. 

employees and officials, with maximum 

deductibles based on a Corporate’s 

capital. The proposal changes the 

measure from core capital to total 

capital, consistent with the definitional 

changes discussed above. NCUA 

believes this change will have an 

immaterial effect on maximum 

deductible levels. 

12. Section 704.21—Enterprise Risk 

Management 

Section 704.21 requires a Corporate to 

develop and follow an enterprise risk 

management policy, establish an 

enterprise risk management committee, 

and include an independent risk 

management expert on the committee. 

Paragraph (c) of this section lists the 

minimum qualifications for the 

independent expert, including specific 

educational and background 

requirements. NCUA recognizes the 

minimum qualifications may be overly 

prescriptive and subject to differences 

in interpretation. The critical factors are 

an individual’s independence and 

experience that is commensurate with 

the Corporate’s operations and 

complexity. Accordingly, the proposal 

removes the minimum requirements for 

the independent risk management 

expert. The Board believes this will 

make it easier for corporates to attract 

and hire qualified individuals for the 

position. 

13. Appendix A to Part 704—Capital 

Prioritization and Model Forms 

Appendix A to part 704 includes 

Model Forms A–H for use by Corporates 

when accepting contributed capital from 

members. Model Forms A, B, E, and F 

were designed for use before October 20, 

2011, and the proposed rule removes 

those expired forms and redesignates 

the remaining forms as A–D. The 

proposal also removes a sentence from 

the introductory note to current Model 

Form G, redesignated as Model Form C, 

to clarify that in some instances 

previously issued ‘‘paid-in capital’’ may 

not be considered perpetual contributed 

capital. 

14. Appendix B to Part 704—Expanded 

Authorities and Requirements 

Appendix B to part 704 describes 

expanded authorities available to 

Corporates and the procedures for 

obtaining such authorities. Consistent 

with the earlier discussion regarding the 

simplification of terms relating to 

capital, the proposal substitutes 

‘‘leverage ratio’’ for ‘‘capital ratio’’ and 

‘‘total capital’’ for ‘‘capital.’’ 

15. Appendix C to Part 704—Risk-Based 

Capital Credit Risk-Weight Categories 

Appendix C to 704 explains how a 

Corporate must compute its riskweighted assets for the purpose of 

determining its capital ratios. Several of 

the assets and activities discussed such 

as ‘‘asset-backed commercial paper 

program,’’ ‘‘credit enhancing interestonly strip,’’ and ‘‘eligible ABCP facility’’ 

are not consistent with the regular 

business activities of Corporates. To 

reduce confusion, the proposal removes 

references to those assets and activities. 

III. Regulatory Procedures 

1. Regulatory Flexibility Act 

The Regulatory Flexibility Act 

requires NCUA to prepare an analysis of 

any significant economic impact a 

regulation may have on a substantial 

number of small entities (primarily 

those under $50 million in assets).4 This 

proposed rule only affects Corporates, 

all of which have more than $50 million 

in assets. Furthermore, the proposed 

rule consists primarily of technical and 

clarifying amendments. Accordingly, 

NCUA certifies the rule will not have a 

significant economic impact on a 

substantial number of small credit 

unions. 

2. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(PRA) applies to rulemakings in which 

an agency by rule creates a new 

paperwork burden or increases an 

existing burden.5 For purposes of the 

PRA, a paperwork burden may take the 

form of a reporting or recordkeeping 

requirement, both referred to as 

information collections. Under the 

proposed rule, a Corporate with an 

investment in or loan to a Corporate 

CUSO will need to revise the current 

agreement it has with the Corporate 

CUSO to provide that the Corporate 

CUSO will prepare and submit basic or 

expanded reports directly to NCUA and 

the appropriate SSA. 

Currently, there are 14 Corporates and 

approximately 16 Corporate CUSOs, 13 

of which provide the complex or highrisk services that require expanded 

reporting. The information collection 

burdens imposed, on an annual basis, 

are analyzed below. 

Changing the written agreement 

relating to reports to NCUA. 

Frequency of response: One-time. 

Initial hour burden: 4. 

4 hours × 14 = 56 hours 

Initial Corporate CUSO reporting to 

NCUA and SSA—basic information. 

Frequency of response: One-time. 

Initial hour burden: 0.5. 

0.5 hours × 16 = 8 hours 

Initial Corporate CUSO reporting to 

NCUA and SSA—expanded 

information. 

Frequency of response: One-time. 

Initial hour burden: 3. 

3 hours × 13 = 39 hours 

Annual Corporate CUSO reporting to 

NCUA and SSA—expanded 

information. 

Frequency of response: Annual. 

Annual hour burden: 3. 

3 hours × 13 = 39 hours 

As required by the PRA, NCUA is 

submitting a copy of this proposal to 

OMB for its review and approval. 

Persons interested in submitting 

comments with respect to the 

information collection aspects of the 

proposed rule should submit them to 

OMB at the address noted below. 

NCUA considers comments by the 

public on this proposed collection of 

information in: 

• evaluating whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of NCUA, including whether 

the information will have a practical 

use; 

• evaluating the accuracy of NCUA’s 

estimate of the burden of the proposed 

collection of information, including the 

validity of the methodology and 

assumptions used; 

• enhancing the quality, usefulness, 

and clarity of the information to be 

collected; and 

• minimizing the burden of collecting 

information on those who are to 

respond, including through the use of 

appropriate automated, electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology; e.g., permitting 

electronic submission of responses. 

OMB will make a decision concerning 

the collection of information contained 

in this proposed regulation between 30 

and 60 days after publication of this 

document in the Federal Register. 

Therefore, a comment to OMB is best 

assured of having its full effect if OMB 

receives it within 30 days of 

publication. This does not affect the 

deadline for the public to comment to 

NCUA on the substantive aspects of this 

proposed regulation. 

Comments on the proposed 

information collection requirements 

should be sent to: Office of Information 

and Regulatory Affairs, OMB, New 

Executive Office Building, Washington, 

DC 20503; Attention: NCUA Desk 

Officer, with a copy to Amanda Wallace 


rmajette on DSK3VPTVN1PROD with PROPOSALS
65356 Federal Register / Vol. 79, No. 213 / Tuesday, November 4, 2014 / Proposed Rules 

at the National Credit Union 

Administration, 1775 Duke Street, 

Alexandria, Virginia 22314–3428. 

3. Executive Order 13132 

Executive Order 13132 encourages 

independent regulatory agencies to 

consider the impact of their actions on 

state and local interests. NCUA, an 

independent regulatory agency as 

defined in 44 U.S.C. 3502(5), voluntarily 

complies with the executive order to 

adhere to fundamental federalism 

principles. The proposed rule does not 

have substantial direct effects on the 

states, on the relationship between the 

national government and the states, or 

on the distribution of power and 

responsibilities among the various 

levels of government. NCUA has, 

therefore, determined that this proposal 

does not constitute a policy that has 

federalism implications for purposes of 

the executive order. 

4. Assessment of Federal Regulations 

and Policies on Families 

NCUA has determined that this 

proposed rule will not affect family 

well-being within the meaning of 

section 654 of the Treasury and General 

Government Appropriations Act, 1999, 

Public Law 105–277, 112 Stat. 2681 

(1998). 

List of Subjects in 12 CFR Part 704 

Credit unions, Corporate credit 

unions, Reporting and recordkeeping 

requirements. 

By the National Credit Union 

Administration Board on October 23, 2014. 

Gerard Poliquin, 

Secretary of the Board. 

For the reasons discussed above, the 

National Credit Union Administration 

proposes to amend 12 CFR part 704 as 

follows: 

PART 704—CORPORATE CREDIT 

UNIONS 

■ 1. The authority citation for part 704 

continues to read as follows: 

Authority: 12 U.S.C. 1766(a), 1781, and 

1789. 

■ 2. Amend § 704.2 by: 

■ a. Removing the definitions of 

‘‘Adjusted core capital’’, ‘‘Asset-backed 

commercial paper program’’, ‘‘Capital’’, 

‘‘Capital ratio’’, ‘‘Core capital’’, ‘‘Core 

capital ratio’’, ‘‘Credit-enhancing 

interest-only strip’’, ‘‘Eligible ABCP 

liquidity facility’’, the two definitions of 

‘‘Leverage ratio’’, and ‘‘Supplementary 

capital’’; 

■ b. Revising the first two sentences of 

the definition of ‘‘Available to cover 

losses that exceed retained earnings’’ 

and the definitions of ‘‘Derivatives’’, 

‘‘Equity investment’’, ‘‘Equity security’’, 

‘‘Fair value’’, ‘‘Internal control’’, ‘‘Net 

assets’’, ‘‘Net risk-weighted assets’’, 

‘‘Retained earnings’’, ‘‘Tier 1 capital’’, 

‘‘Tier 2 capital’’, and ‘‘Total capital’’; 

and 

■ c. Adding definitions, in alphabetical 

order, for ‘‘Leverage ratio’’ and ‘‘Tier 1 

risk-based capital ratio’’. 

The revisions and additions read as 

follows: 

§ 704.2 Definitions. 

* * * * * 

Available to cover losses that exceed 

retained earnings means that the funds 

are available to cover operating losses 

realized, in accordance with generally 

accepted accounting principles (GAAP), 

by the corporate credit union that 

exceed retained earnings and equity 

acquired in a combination. Likewise, 

available to cover losses that exceed 

retained earnings and perpetual 

contributed capital (PCC) means that the 

funds are available to cover operating 

losses realized, in accordance with 

GAAP, by the corporate credit union 

that exceed retained earnings and equity 

acquired in a combination and PCC. 

* * * 

* * * * * 

Derivatives means a financial contract 

which derives its value from the value 

and performance of some other 

underlying financial instrument or 

variable, such as an index or interest 

rate. 

* * * * * 

Equity investment means an 

investment in an equity security and 

other ownership interest, including, for 

example, an investment in a partnership 

or limited liability company. 

Equity security means any security 

representing an ownership interest in an 

enterprise (for example, common, 

preferred, or other capital stock) or the 

right to acquire (for example, warrants 

and call options) or dispose of (for 

example, put options) an ownership 

interest in an enterprise at fixed or 

determinable prices. However, the term 

does not include Federal Home Loan 

Bank stock, convertible debt, or 

preferred stock that by its terms either 

must be redeemed by the issuing 

enterprise or is redeemable at the option 

of the investor. 

* * * * * 

Fair value means the price that would 

be received to sell an asset, or paid to 

transfer a liability, in an orderly 

transaction between market participants 

at the measurement date, as defined by 

GAAP. 

* * * * * 

Internal control means the process, 

established by the corporate credit 

union’s board of directors, officers and 

employees, designed to provide 

reasonable assurance of reliable 

financial reporting and safeguarding of 

assets against unauthorized acquisition, 

use, or disposition. A credit union’s 

internal control structure generally 

consists of five components: control 

environment; risk assessment; control 

activities; information and 

communication; and monitoring. 

Reliable financial reporting refers to 

preparation of Call Reports as well as 

financial data published and presented 

to members that meet management’s 

financial reporting objectives. Internal 

control over safeguarding of assets 

against unauthorized acquisition, use, or 

disposition refers to prevention or 

timely detection of transactions 

involving such unauthorized access, 

use, or disposition of assets which could 

result in a loss that is material to the 

financial statements. 

* * * * * 

Leverage ratio means the ratio of Tier 

1 capital to moving daily average net 

assets. 

* * * * * 

Net assets means total assets less 

Central Liquidity Facility (CLF) stock 

subscriptions, loans guaranteed by the 

National Credit Union Share Insurance 

Fund (NCUSIF), and member reverse 

repurchase transactions. For its own 

account, a corporate credit union’s 

payables under reverse repurchase 

agreements and receivables under 

repurchase agreements may be netted 

out if the GAAP conditions for offsetting 

are met. Also, any amounts deducted in 

calculating Tier 1 capital are also 

deducted from net assets. 

* * * * * 

Net risk-weighted assets means riskweighted assets less CLF stock 

subscriptions, CLF loans guaranteed by 

the NCUSIF, and member reverse 

repurchase transactions. For its own 

account, a corporate credit union’s 

payables under reverse repurchase 

agreements and receivables under 

repurchase agreements may be netted 

out if the GAAP conditions for offsetting 

are met. Also, any amounts deducted in 

calculating Tier 1 capital are also 

deducted from net risk-weighted assets. 

* * * * * 

Retained earnings means undivided 

earnings, regular reserve, reserve for 

contingencies, supplemental reserves, 

reserve for losses, and other 

appropriations from undivided earnings 

as designated by management or NCUA. 

* * * * * 


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Federal Register / Vol. 79, No. 213 / Tuesday, November 4, 2014 / Proposed Rules 65357 

Tier 1 capital means the sum of 

paragraphs (1) through (4) of this 

definition from which paragraphs (5) 

through (9) of this definition are 

deducted: 

(1) Retained earnings; 

(2) Perpetual contributed capital; 

(3) The retained earnings of any 

acquired credit union, or of an 

integrated set of activities and assets, 

calculated at the point of acquisition, if 

the acquisition was a mutual 

combination; 

(4) Minority interests in the equity 

accounts of CUSOs that are fully 

consolidated; 

(5) Deduct the amount of the 

corporate credit union’s intangible 

assets that exceed one half percent of its 

moving daily average net assets 

(however, NCUA may direct the 

corporate credit union to add back some 

of these assets on NCUA’s own 

initiative, by petition from the 

applicable state regulator, or upon 

application from the corporate credit 

union); 

(6) Deduct investments, both equity 

and debt, in unconsolidated CUSOs; 

(7) Deduct an amount equal to any 

PCC or NCA that the corporate credit 

union maintains at another corporate 

credit union; 

(8) Beginning on October 20, 2016, 

and ending on October 20, 2020, deduct 

any amount of PCC that causes PCC 

minus retained earnings, all divided by 

moving daily net average assets, to 

exceed two percent; and 

(9) Beginning after October 20, 2020, 

deduct any amount of PCC that causes 

PCC to exceed retained earnings. 

Tier 1 risk-based capital ratio means 

the ratio of Tier 1 capital to the moving 

monthly average net risk-weighted 

assets. 

Tier 2 capital means the sum of 

paragraphs (1) through (4) of this 

definition: 

(1) Nonperpetual capital accounts, as 

amortized under § 704.3(b)(3); 

(2) Allowance for loan and lease 

losses calculated under GAAP to a 

maximum of 1.25 percent of riskweighted assets; 

(3) Any PCC deducted from Tier 1 

capital; and 

(4) Forty-five percent of unrealized 

gains on available-for-sale equity 

securities with readily determinable fair 

values. Unrealized gains are unrealized 

holding gains, net of unrealized holding 

losses, calculated as the amount, if any, 

by which fair value exceeds historical 

cost. NCUA may disallow such 

inclusion in the calculation of Tier 2 

capital if NCUA determines that the 

securities are not prudently valued. 

* * * * * 

Total capital means the sum of Tier 

1 capital and Tier 2 capital, less the 

corporate credit union’s equity 

investments not otherwise deducted 

when calculating Tier 1 capital. 

* * * * * 

■ 3. Amend § 704.3 by revising 

paragraphs (b)(5), (c)(3), and (e)(3)(i) and 

removing paragraph (f)(4) to read as 

follows: 

§ 704.3 Corporate credit union capital. 

* * * * * 

(b) * * * 

(5) Redemption. A corporate credit 

union may redeem NCAs prior to 

maturity or prior to the end of the notice 

period only if it meets its minimum 

required capital and net economic value 

ratios after the funds are redeemed and 

only with the prior approval of NCUA 

and, for state chartered corporate credit 

unions, the applicable state regulator. 

* * * * * 

(c) * * * 

(3) Callability. A corporate credit 

union may call PCC instruments only if 

it meets its minimum required capital 

and net economic value ratios after the 

funds are called and only with the prior 

approval of the NCUA and, for state 

chartered corporate credit unions, the 

applicable state regulator. PCC accounts 

are callable on a pro-rata basis across an 

issuance class. 

* * * * * 

(e) * * * 

(3) * * * (i) Notwithstanding the 

definitions of Tier 1 capital and Tier 2 

capital in § 704.2, NCUA may find that 

a particular asset or Tier 1 capital or 

Tier 2 capital component has 

characteristics or terms that diminish its 

contribution to a corporate credit 

union’s ability to absorb losses, and 

NCUA may require the discounting or 

deduction of such asset or component 

from the computation of Tier 1 capital, 

Tier 2 capital, or total capital. 

* * * * * 

■ 4. Amend § 704.5 by revising 

paragraph (j) to read as follows: 

§ 704.5 Investments. 

* * * * * 

(j) Grandfathering. A corporate credit 

union’s authority to hold an investment 

is governed by the regulation in effect at 

the time of purchase. However, all 

grandfathered investments are subject to 

the other requirements of this part. 

■ 5. Amend § 704.6 by revising 

paragraphs (c), (d), and (e) to read as 

follows: 

§ 704.6 Credit risk management. 

* * * * * 

(c) Issuer concentration limits—(1) 

General rule. The aggregate value 

recorded on the books of the corporate 

credit union of all investments in any 

single obligor is limited to 25 percent of 

total capital or $5 million, whichever is 

greater. 

(2) Exceptions. (i) Investments in one 

obligor where the remaining maturity of 

all obligations is less than 30 days are 

limited to 50 percent of total capital; 

(ii) Investments in credit card master 

trust asset-backed securities are limited 

to 50 percent of total capital in any 

single obligor; 

(iii) Aggregate investments in 

repurchase and securities lending 

agreements with any one counterparty 

are limited to 200 percent of total 

capital; 

(iv) Investments in non-money market 

registered investment companies are 

limited to 50 percent of total capital in 

any single obligor; 

(v) Investments in money market 

registered investment companies are 

limited to 100 percent of total capital in 

any single obligor; and 

(vi) Investments in corporate CUSOs 

are subject to the limitations of § 704.11. 

(d) Sector concentration limits. (1) A 

corporate credit union must establish 

sector limits based on the value 

recorded on the books of the corporate 

credit union that do not exceed the 

following maximums: 

(i) Mortgage-backed securities 

(inclusive of commercial mortgagebacked securities)—the lower of 1000 

percent of total capital or 50 percent of 

assets; 

(ii) Commercial mortgage-backed 

securities—the lower of 300 percent of 

total capital or 15 percent of assets; 

(iii) Federal Family Education Loan 

Program student loan asset-backed 

securities—the lower of 1000 percent of 

total capital or 50 percent of assets; 

(iv) Private student loan asset-backed 

securities—the lower of 500 percent of 

total capital or 25 percent of assets; 

(v) Auto loan/lease asset-backed 

securities—the lower of 500 percent of 

total capital or 25 percent of assets; 

(vi) Credit card asset-backed 

securities—the lower of 500 percent of 

total capital or 25 percent of assets; 

(vii) Other asset-backed securities not 

listed in paragraphs (d)(1)(ii) through 

(vi) of this section—the lower of 500 

percent of total capital or 25 percent of 

assets; 

(viii) Corporate debt obligations—the 

lower of 1000 percent of total capital or 

50 percent of assets; and 

(ix) Municipal securities—the lower 

of 1000 percent of total capital or 50 

percent of assets. 

(2) Registered investment 

companies—A corporate credit union 

must limit its investment in registered 


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investment companies to the lower of 

1000 percent of total capital or 50 

percent of assets. In addition to 

applying the limit in this paragraph 

(d)(2), a corporate credit union must 

also include the underlying assets in 

each registered investment company in 

the relevant sectors described in 

paragraph (d)(1) of this section when 

calculating those sector limits. 

(3) A corporate credit union must 

limit its aggregate holdings in any 

investments not described in paragraphs 

(d)(1) or (2) of this section to the lower 

of 100 percent of total capital or 5 

percent of assets. The NCUA may 

approve a higher percentage in 

appropriate cases. 

(4) Investments in other federally 

insured credit unions, deposits and 

federal funds investments in other 

federally insured depository 

institutions, and investment repurchase 

agreements are excluded from the 

concentration limits in paragraphs 

(d)(1), (2), and (3) of this section. 

(e) Corporate debt obligation 

subsector limits. In addition to the 

limitations in paragraph (d)(1)(viii) of 

this section, a corporate credit union 

must not exceed the lower of 200 

percent of total capital or 10 percent of 

assets in any single North American 

Industry Classification System (NAICS) 

industry sector based on the value 

recorded on the books of the corporate 

credit union. If a corporation in which 

a corporate credit union is interested in 

investing does not have a readily 

ascertainable NAICS classification, a 

corporate credit union will use its 

reasonable judgment in assigning such a 

classification. NCUA may direct, 

however, that the corporate credit union 

change the classification. 

* * * * * 

■ 6. Amend § 704.7 by revising 

paragraph (c) to read as follows: 

§ 704.7 Lending. 

* * * * * 

(c) Loans to members—(1) Credit 

unions. (i) The maximum aggregate 

amount in unsecured loans and lines of 

credit from a corporate credit union to 

any one member credit union, excluding 

pass-through and guaranteed loans from 

the CLF and the NCUSIF, must not 

exceed 50 percent of the corporate 

credit union’s total capital. 

(ii) The maximum aggregate amount 

in secured loans (excluding those 

secured by shares or marketable 

securities and member reverse 

repurchase transactions) and unsecured 

loans (excluding pass-through and 

guaranteed loans from the CLF and the 

NCUSIF) and lines of credit from a 

corporate credit union to any one 

member credit union must not exceed 

150 percent of the corporate credit 

union’s total capital. 

(2) Corporate CUSOs. Any loan or line 

of credit from a corporate credit union 

to a corporate CUSO must comply with 

§ 704.11. 

(3) Other members. The maximum 

aggregate amount of loans and lines of 

credit from a corporate credit union to 

any other one member must not exceed 

15 percent of the corporate credit 

union’s total capital plus pledged 

shares. 

* * * * * 

■ 7. Amend § 704.8 by revising 

paragraph (j) to read as follows: 

§ 704.8 Asset and liability management. 

* * * * * 

(j) Limit breaches. (1)(i) If a corporate 

credit union’s decline in NEV, base case 

NEV ratio, or any NEV ratio calculated 

under paragraph (d) of this section 

exceeds established or permitted limits, 

or the corporate is unable to satisfy the 

tests in paragraphs (f) or (g) of this 

section, the operating management of 

the corporate must immediately report 

this information to its board of directors 

and ALCO; and 

(ii) If the corporate credit union 

cannot adjust its balance sheet to meet 

the requirements of paragraphs (d), (f), 

or (g) of this section within 10 calendar 

days after detection by the corporate, 

the corporate must notify in writing the 

Director of the Office of National 

Examinations and Supervision. 

(2) If any breach described in 

paragraph (j)(1) of this section persists 

for 30 or more calendar days, the 

corporate credit union: 

(i) Must immediately submit a 

detailed, written action plan to the 

NCUA that sets forth the time needed 

and means by which it intends to come 

into compliance and, if the NCUA 

determines that the plan is 

unacceptable, the corporate credit union 

must immediately restructure its 

balance sheet to bring the exposure back 

within compliance or adhere to an 

alternative course of action determined 

by the NCUA; and 

(ii) If presently categorized as 

adequately capitalized or well 

capitalized for prompt corrective action 

purposes, and the breach was of 

paragraph (d) of this section, the 

corporate credit union will immediately 

be recategorized as undercapitalized 

until coming into compliance, and 

(iii) If presently categorized as less 

than adequately capitalized for prompt 

corrective action purposes, and the 

breach was of paragraph (d) of this 

section, the corporate credit union will 

immediately be downgraded one 

additional capital category. 

* * * * * 

■ 8. Amend § 704.9 by revising 

paragraph (b) to read as follows: 

§ 704.9 Liquidity management. 

* * * * * 

(b) Borrowing limits. A corporate 

credit union may borrow up to 10 times 

its total capital. 

(1) Secured borrowings. A corporate 

credit union may borrow on a secured 

basis for liquidity purposes, but the 

maturity of the borrowing may not 

exceed 120 days. Only a corporate credit 

union with Tier 1 capital in excess of 

five percent of its moving daily average 

net assets (DANA) may borrow on a 

secured basis for nonliquidity purposes, 

and the outstanding amount of secured 

borrowing for nonliquidity purposes 

may not exceed an amount equal to the 

difference between the corporate credit 

union’s Tier 1 capital and five percent 

of its moving DANA. 

(2) Exclusions. CLF borrowings and 

borrowed funds created by the use of 

member reverse repurchase agreements 

are excluded from the limit in paragraph 

(b)(1) of this section. 

■ 9. Amend § 704.11 by: 

■ a. Revising paragraphs (b)(1) and (2) 

and (e)(1) introductory text; 

■ b. Removing paragraph (e)(2); 

■ c. Redesignating paragraph (e)(3) as 

paragraph (e)(2); 

■ d. Redesignating paragraphs (g)(4) 

through (7) as paragraphs (g)(5) through 

(8), respectively; and 

■ e. Adding new paragraph (g)(4). 

The revisions and addition read as 

follows: 

§ 704.11 Corporate Credit Union Service 

Organizations (Corporate CUSOs). 

* * * * * 

(b) Investment and loan limitations. 

(1) The aggregate of all investments in 

member and non-member corporate 

CUSOs that a corporate credit union 

may make must not exceed 15 percent 

of a corporate credit union’s total 

capital. 

(2) The aggregate of all investments in 

and loans to member and nonmember 

corporate CUSOs a corporate credit 

union may make must not exceed 30 

percent of a corporate credit union’s 

total capital. A corporate credit union 

may lend to member and nonmember 

corporate CUSOs an additional 15 

percent of total capital if the loan is 

collateralized by assets in which the 

corporate has a perfected security 

interest under state law. 

* * * * * 


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Federal Register / Vol. 79, No. 213 / Tuesday, November 4, 2014 / Proposed Rules 65359 

(e) Permissible activities. (1) A 

corporate CUSO must agree to limit its 

activities to: 

* * * * * 

(g) * * * 

(4) Will provide the reports as 

required by § 712.3(d)(4) and (5) of this 

chapter; 

* * * * * 

■ 10. Amend § 704.14 by revising 

paragraphs (a)(2), (a)(9), and (e)(2) to 

read as follows: 

§ 704.14 Representation. 

(a) * * * 

(2) Only an individual who currently 

holds the position of chief executive 

officer, chief financial officer, chief 

operating officer, or treasurer/manager 

at a member credit union, and will hold 

that position at the time he or she is 

seated on the corporate credit union 

board if elected, may seek election or reelection to the corporate credit union 

board; 

* * * * * 

(9) At least a majority of directors of 

every corporate credit union, including 

the chair of the board, must serve on the 

corporate board as representatives of 

natural person credit union members. 

* * * * * 

(e) * * * 

(2) The provisions of § 701.14 of this 

chapter apply to corporate credit 

unions, except that where ‘‘Regional 

Director’’ is used, read ‘‘Director of the 

Office of National Examinations and 

Supervision.’’ 

■ 11. Amend § 704.15 by revising 

paragraph (a)(2)(iii) introductory text, 

the first sentence of paragraph (b)(2), 

and the first sentence of paragraph (d)(1) 

to read as follows: 

§ 704.15 Audit and reporting requirements. 

(a) * * * 

(2) * * * 

(iii) An assessment by management of 

the effectiveness of the corporate credit 

union’s internal control structure and 

procedures as of the end of the past 

calendar year that must include the 

following: 

* * * * * 

(b) * * * 

(2) * * * The independent public 

accountant who audits the corporate 

credit union’s financial statements must 

examine, attest to, and report separately 

on the assertion of management 

concerning the effectiveness of the 

corporate credit union’s internal control 

structure and procedures for financial 

reporting. * * * 

* * * * * 

(d) * * * 

(1) * * * Each corporate credit union 

must establish a supervisory committee, 

all of whose members must be 

independent. * * * 

* * * * * 

§ 704.18 [Amended] 

■ 12. Amend § 704.18 in paragraph 

(e)(1) by: 

■ a. Removing the words ‘‘core capital 

ratio’’ wherever they appear and adding 

in their place ‘‘leverage ratio’’; 

■ b. Removing the words ‘‘Core capital 

ratio’’ and adding in their place 

‘‘Leverage ratio’’; and 

■ c. Removing the words ‘‘core capital’’ 

wherever they appear without being 

followed by the word ‘‘ratio’’ and 

adding in their place ‘‘Tier 1 capital’’. 

■ 13. Amend § 704.21 by revising 

paragraph (c) to read as follows: 

§ 704.21 Enterprise risk management. 

* * * * * 

(c) The ERMC must include at least 

one independent risk management 

expert. The risk management expert 

must have at least five years of 

experience in identifying, assessing, and 

managing risk exposures. This 

experience must be commensurate with 

the size of the corporate credit union 

and the complexity of its operations. 

The board of directors may hire the 

independent risk management expert to 

work full-time or part-time for the 

ERMC or as a consultant for the ERMC. 

* * * * * 

Appendix A to Part 704—[Amended] 

■ 14. Amend Appendix A to part 704 

by: 

■ a. Removing Model Forms A, B, E, and 

F and redesignating Model Forms C, D, 

G, and H as Model Forms A, B, C, and 

D, respectively; and 

■ b. Removing the second sentence of 

the note in newly redesignated Model 

Form C. 

Appendix B to Part 704—[Amended] 

■ 15. Amend Appendix B to part 704 by: 

■ a. Removing the words ‘‘capital ratio’’ 

wherever they appear and adding in 

their place ‘‘leverage ratio’’; 

■ b. Removing the word ‘‘capital’’ 

wherever it appears without being 

followed by the word ‘‘ratio’’ and 

adding in its place ‘‘total capital’’; and 

■ c. Removing paragraph (e) from part 1. 

■ 16. Amend Appendix C to part 704 by: 

■ a. In part I(b): 

■ (i) Revising paragraph (8) of the 

definition of ‘‘Direct credit substitute’’; 

■ (ii) Revising paragraph (8) of the 

definition of ‘‘Recourse’’; and 

■ (iii) Revising paragraph (2) of the 

definition of ‘‘Residual interests’’; 

■ b. In part II(a), revising paragraph 

(4)(xiii); 

■ c. In part II(b): 

■ (i) Revising the heading of part II(b); 

■ (ii) Removing paragraphs (1)(iv) and 

(4); 

■ (iii) Redesignating paragraphs (5) and 

(6) as paragraphs (4) and (5), 

respectively; 

■ (iv) Revising newly redesignated 

paragraph (4)(i); and 

■ (v) Removing newly redesignated 

paragraph (5)(v)(C). 

■ d. In part II(c): 

■ (i) Removing paragraph (2)(i); 

■ (ii) Redesignating paragraphs (2)(ii) 

and (iii) as paragraphs (2)(i) and (ii), 

respectively; and 

■ (iii) Revising newly redesignated 

paragraph (2)(i) and the introductory 

paragraph of newly redesignated 

paragraph (2)(ii). 

The revisions read as follows: 

Appendix C to Part 704—Risk-Based 

Capital Credit Risk-Weight Categories 

* * * * * 

Part I: Introduction 

* * * * * 

(b) Definitions 

* * * * * 

Direct credit substitute * * * 

(8) Liquidity facilities that provide support 

to asset-backed commercial paper. 

* * * * * 

Recourse * * * 

(8) Liquidity facilities that provide support 

to asset-backed commercial paper. 

* * * * * 

Residual interest * * * 

(2) Residual interests generally include 

spread accounts, cash collateral accounts, 

retained subordinated interests (and other 

forms of overcollateralization), and similar 

assets that function as a credit enhancement. 

Residual interests further include those 

exposures that, in substance, cause the 

corporate credit union to retain the credit 

risk of an asset or exposure that had qualified 

as a residual interest before it was sold. 

* * * * * 

Part II: Risk-Weightings 

(a) On-Balance Sheet Assets 

* * * * * 

(4) * * * 

(xiii) Interest-only strips receivable; 

* * * * * 

(b) Off-Balance Sheet Activities 

* * * * * 

(4) * * * (i) Unused portions of 

commitments with an original maturity of 

one year or less; 

* * * * * 

(c) Recourse Obligations, Direct Credit 

Substitutes, and Certain Other Positions 

* * * * * 

(2)(i) Other residual interests. A corporate 

credit union must maintain risk-based capital 

for a residual interest equal to the face 

amount of the residual interest, even if the 

amount of risk-based capital that must be 

maintained exceeds the full risk-based 

capital requirement for the assets transferred. 


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65360 Federal Register / Vol. 79, No. 213 / Tuesday, November 4, 2014 / Proposed Rules 

(ii) Residual interests and other recourse 

obligations. Where a corporate credit union 

holds a residual interest and another recourse 

obligation in connection with the same 

transfer of assets, the corporate credit union 

must maintain risk-based capital equal to the 

greater of: 

* * * * * 

[FR Doc. 2014–25743 Filed 11–3–14; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Parts 121 and 145 

[AC 120–66C] 

Advisory Circular for Aviation Safety 

Action Program (ASAP) 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of availability of 

proposed revision to Advisory Circular 

for Aviation Safety Action Program 

(ASAP); Extension of comment period. 

SUMMARY: This action extends the 

comment period for the Notice of 

availability of proposed revision to 

Advisory Circular for Aviation Safety 

Action Program (ASAP) that was 

published on September 5, 2014. In that 

document, the FAA proposed to clarify 

FAA policy, facilitate achievement of an 

ASAP’s safety goals, and encourage 

wider participation in the program. 

Multiple industry groups have 

requested that the FAA extend the 

comment period closing date to allow 

time to prepare comments. 

DATES: The comment period for the 

Notice of availability of proposed 

revision to Advisory Circular for 

Aviation Safety Action Program (ASAP) 

published on September 5, 2014, was 

scheduled to close on November 4, 

2014, and is extended until January 5, 

2015. 

ADDRESSES: You may send comments 

identified by AC 120–66C using any of 

the following methods: 

• Aviation Safety Draft Document 

Open for Comment Web site: Go to 

http://www.faa.gov/aircraft/draft_docs/

afs_ac/ and follow the online 

instructions for sending your comments 

electronically. 

• Mail: Send comments to 1625 K 

Street NW., Suite 300, Washington, DC 

20006. 

• Fax: Fax comments to 202–223– 

4615. Attn: Laura L. Miller. 

• Hand Delivery: Bring comments to 

1625 K Street NW., Suite 300, 

Washington, DC between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

FOR FURTHER INFORMATION CONTACT: 

Randy McDonald, Air Transportation 

Division, Flight Standards Service, 

Federal Aviation Administration, 800 

Independence Avenue SW., 

Washington, DC 20591; telephone: 202– 

267–8166; facsimile: 202–267–5229; 

email: randy.mcdonald@faa.gov. 

Background 

On September 5, 2014, the Federal 

Aviation Administration (FAA) 

published a notice in the Federal 

Register (79 FR 53008) announcing the 

availability of proposed Advisory 

Circular (AC) 120–66C. AC 120–66C 

provides guidance for establishing an air 

transportation Aviation Safety Action 

Program (ASAP). The comment period 

for that notice was to have closed 

November 4, 2014. 

The FAA has reviewed the requests 

made by multiple industry groups for 

extension of the comment period to 

Notice of availability of proposed 

revision to Advisory Circular for 

Aviation Safety Action Program (ASAP). 

These petitioners have shown a 

substantive interest in the contents of 

the Notice and good cause for the 

extension. The FAA has determined that 

extension of the comment period is 

consistent with the public interest, and 

that good cause exists for taking this 

action. 

Accordingly, the comment period for 

Notice of availability of proposed 

revision to Advisory Circular for 

Aviation Safety Action Program (ASAP) 

is extended until January 5, 2015. 

John S. Duncan, 

Director, Flight Standards Service. 

[FR Doc. 2014–26212 Filed 11–3–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE INTERIOR 

Bureau of Indian Affairs 

25 CFR Part 169 

[BIA–2014–0001; DR.5B711.IA000814] 

RIN 1076–AF20 

Rights-of-Way on Indian Land 

AGENCY: Bureau of Indian Affairs, 

Interior. 

ACTION: Proposed rule; Extension of 

comment period. 

SUMMARY: This document announces 

that the Department will accept 

comments on the proposed rule 

governing rights-of-way on Indian land 

until November 28, 2014. The proposed 

rule would comprehensively update and 

streamline the process for obtaining BIA 

grants of rights-of-way on Indian land, 

while supporting tribal selfdetermination and self-governance. 

DATES: Comments on the proposed rule 

published June 17, 2014 (79 FR 34455) 

must be received by November 28, 2014. 

ADDRESSES: You may submit comments 

by any of the following methods: 

—Federal rulemaking portal: http://

www.regulations.gov. The rule is listed 

under the agency name ‘‘Bureau of 

Indian Affairs.’’ The rule has been 

assigned Docket ID: BIA–2014–0001. 

—Email: consultation@bia.gov. 

Include the number 1076–AF20 in the 

subject line. 

—Mail or hand delivery: Elizabeth 

Appel, Office of Regulatory Affairs & 

Collaborative Action, U.S. Department 

of the Interior, 1849 C Street NW., MS 

3642, Washington, DC 20240. Include 

the number 1076–AF20 on the 

envelope. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth Appel, Director, Office of 

Regulatory Affairs & Collaborative 

Action, (202) 273–4680; 

elizabeth.appel@bia.gov. 

SUPPLEMENTARY INFORMATION: On June 

17, 2014, we published a proposed rule 

to comprehensively update and 

streamline the process for obtaining BIA 

grants of rights-of-way on Indian land. 

See 79 FR 34455. On August 18, 2014, 

we published an extension of the 

comment period, establishing a new 

comment deadline of October 2, 2014. 

On October 1, 2014, we released a press 

release notifying the public that we are 

extending the comment period to 

November 3, 2014, to allow additional 

time for tribal and public comment. On 

October 30, 2014, we released a press 

release notifying the public that we are 

again extending the comment period to 

November 28, 2014. We will accept all 

comments received between June 17, 

2014, and November 28, 2014. 

The proposed rule, frequently asked 

questions, and other information are 

online at: http://www.bia.gov/

WhoWeAre/AS-IA/ORM/RightsofWay/

index.htm. 

Dated: October 30, 2014. 

Kevin K. Washburn, 

Assistant Secretary—Indian Affairs. 

[FR Doc. 2014–26264 Filed 10–31–14; 4:15 pm] 

BILLING CODE 4310–W7–P 


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