Federal Register / Vol. 79, No. 246 / Tuesday, December 23, 2014 / Proposed Rules 76927 

licensing system. To the extent 

practicable, the fee will be announced 

by the Licensing Authority in a notice 

published in the Federal Register no 

later than August 31 of the year 

preceding the quota year for which the 

fee is assessed. 

(b) The license fee for each license 

issued is due and payable in full no 

later than March 15 of the year for 

which the license is issued. The fee for 

any license issued after March 15 of any 

quota year is due and payable in full no 

later than 10 days from the date of 

issuance of the license. Fee payments 

are payable to the Treasurer of the 

United States and shall be made 

utilizing the electronic software 

designated for the purpose by the 

Licensing Authority as provided in 

§ 6.36(b). 

(c) If the license fees for all licenses 

issued to a licensee are not paid by the 

final payment date, a hold will be 

placed on the use of all licenses issued 

to the licensee and no articles will be 

permitted entry under those licenses. 

The Licensing Authority shall send a 

warning letter by email advising the 

licensee that if payment is not made in 

accordance with § 6.36(b) and received 

within 10 calendar days from the date 

of the email, all licenses issued to that 

licensee will be revoked. Where the 

license at issue is a historical license, 

this will result, pursuant to § 6.23(b), in 

the person’s loss of historical eligibility 

for such license. 

§ 6.34 Adjustment of appendices. 

(a) Whenever a historical license 

(Appendix 1) is not issued to an 

applicant pursuant to the provisions of 

§ 6.23, is permanently surrendered or is 

revoked by the Licensing Authority, the 

amount of such license will be 

transferred to Appendix 2. 

(b) The cumulative annual transfers to 

Appendix 2 made in accordance with 

paragraph (a) will be published in the 

Federal Register. If a transfer results in 

the addition of a new article, or an 

article from a country not previously 

listed in Appendix 2, the Licensing 

Authority shall afford all eligible 

applicants for that quota year the 

opportunity to apply for a license for 

such article. 

§ 6.35 Correction of errors. 

(a) If a person demonstrates, to the 

satisfaction of the Licensing Authority, 

that errors were made by officers or 

employees of the United States 

Government, the Licensing Authority 

will review and rectify the errors to the 

extent permitted under this subpart. 

(b) To be considered, a person must 

provide sufficient documentation 

regarding the error to the Licensing 

Authority by email, not later than 

August 31 of the calendar year following 

the calendar year in which the error was 

alleged to have been committed. 

(c) If the error resulted in the loss of 

a historical license by a license holder, 

the Licensing Authority will transfer the 

amount of such license from Appendix 

2 to Appendix 1 in order to provide for 

the issuance of such license in the 

calendar year following the calendar 

year for which the license was revoked. 

The cumulative annual transfers to 

Appendix 1 in accordance with this 

paragraph will be published in the 

Federal Register. 

§ 6.36 Miscellaneous. 

(a) If any deadline date in this subpart 

falls on a Saturday, Sunday, or a Federal 

holiday, then the deadline shall be the 

next business day. 

(b) All applications and fee payments 

required under this subpart shall be 

made utilizing the electronic software 

designated for this purpose by the 

Licensing Authority, and official 

correspondence with the Licensing 

Authority, except as provided under 

§ 6.28(b), shall be by email. 

§ 6.37 [Removed] 

■ 4. Section 6. 37 is removed. 

Dated: August 21, 2014. 

Philip C. Karsting, 

Administrator, Foreign Agricultural Service. 

[FR Doc. 2014–29807 Filed 12–22–14; 8:45 am] 

BILLING CODE 3410–10–P 

FARM CREDIT ADMINISTRATION 

12 CFR Parts 607, 614, 615, 620 and 

628 

RIN 3052–AC81 

Regulatory Capital Rules: Regulatory 

Capital, Implementation of Tier 1/Tier 2 

Framework 

AGENCY: Farm Credit Administration. 

ACTION: Proposed rule; extension of 

comment period. 

SUMMARY: The Farm Credit 

Administration (FCA or we) published a 

proposed rule that would revise our 

regulatory capital requirements for Farm 

Credit System (System) institutions to 

include tier 1 and tier 2 risk-based 

capital ratio requirements (replacing 

core surplus and total surplus 

requirements), a tier 1 leverage 

requirement (replacing a net collateral 

requirement for System banks), a capital 

conservation buffer, revised risk 

weightings, and additional public 

disclosure requirements. The revisions 

to the risk weightings would include 

alternatives to the use of credit ratings, 

as required by section 939A of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act. To allow 

interested parties additional time to 

submit comments, we are extending the 

comment period on the proposed rule 

from January 2, 2015 to February 16, 

2015. 

DATES: Comments on the proposed rule 

must be submitted on or before February 

16, 2015. 

ADDRESSES: For accuracy and efficiency 

reasons, commenters are encouraged to 

submit comments by email or through 

the FCA’s Web site. As facsimiles (fax) 

are difficult for us to process and 

achieve compliance with section 508 of 

the Rehabilitation Act, we no longer 

accept comments submitted by fax. 

Regardless of the method you use, 

please do not submit your comments 

multiple times via different methods. 

You may submit comments by any of 

the following methods: 

• Email: Send an email to reg-comm@

fca.gov. 

• FCA Web site: http://www.fca.gov. 

Select ‘‘Public Commenters,’’ then 

‘‘Public Comments,’’ and follow the 

directions for ‘‘Submitting a Comment.’’ 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Barry F. Mardock, Deputy 

Director, Office of Regulatory Policy, 

Farm Credit Administration, 1501 Farm 

Credit Drive, McLean, VA 22102–5090. 

You may review copies of all 

comments we receive at our office in 

McLean, Virginia or on our Web site at 

http://www.fca.gov. Once you are in the 

Web site, select ‘‘Public Commenters,’’ 

then ‘‘Public Comments,’’ and follow 

the directions for ‘‘Reading Submitted 

Public Comments.’’ We will show your 

comments as submitted, including any 

supporting data provided, but for 

technical reasons we may omit items 

such as logos and special characters. 

Identifying information that you 

provide, such as phone numbers and 

addresses, will be publicly available. 

However, we will attempt to remove 

email addresses to help reduce Internet 

spam. 

FOR FURTHER INFORMATION CONTACT: J. C. 

Floyd, Associate Director, Finance and 

Capital Markets Team, Office of 

Regulatory Policy, Farm Credit 

Administration, McLean, VA 22102– 

5090, (703) 883–4414, TTY (703) 883– 

4434, or Rebecca S. Orlich, Senior 

Counsel, or Jennifer A. Cohn, Senior 

Counsel, Office of General Counsel, 

Farm Credit Administration, McLean, 


tkelley on DSK3SPTVN1PROD with PROPOSALS
76928 Federal Register / Vol. 79, No. 246 / Tuesday, December 23, 2014 / Proposed Rules 

1As of December 10, 2014, the Agency has 

received over 560 comment letters on the proposed 

rule. 

VA 22102–5090, (703) 883–4020, TTY 

(703) 883–4020. 

SUPPLEMENTARY INFORMATION: On 

September 4, 2014, the FCA published 

a proposed rule in the Federal Register 

seeking public comment on proposed 

changes to our capital regulations. See 

79 FR 52814. The comment period is 

scheduled to close on January 2, 2015. 

The FCA received several letters in 

response to the proposed rule requesting 

we extend the comment period by 90 

days. The requesters asserted that the 

proposed rule would have the most 

impact of any rule the FCA has ever 

adopted and is the longest and most 

complex proposal in the System’s 

history. In addition, they noted that its 

comment period overlapped with the 

comment periods of several other 

important regulations and also with 

year-end business planning. They 

would like additional time to evaluate 

the impact of the rule. 

The FCA supports public involvement 

and participation in its regulatory 

process and invites all interested parties 

to review and comment on our proposed 

rule. We balanced the reasons provided 

with the request for more time against 

the substantial time period the 

requesters have had to consider and 

provide comments on the rule.1 As a 

result, we are extending the comment 

period 45 days instead of the requested 

90 days. 

Dated: December 17, 2014. 

Mary Alice Donner, 

Acting Secretary, Farm Credit Administration 

Board. 

[FR Doc. 2014–30061 Filed 12–22–14; 8:45 am] 

BILLING CODE 6705–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–109187–11] 

RIN 1545–BK15 

Nonrecognition of Gain or Loss on 

Certain Dispositions of Installment 

Obligations 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This document contains 

proposed regulations relating to the 

nonrecognition of gain or loss on certain 

dispositions of an installment 

obligation. In general, under the 

proposed regulations a transferor does 

not recognize gain or loss on certain 

dispositions of an installment obligation 

if gain or loss is not recognized on the 

disposition under another provision of 

the Internal Revenue Code. The 

proposed regulations also provide that 

this general rule does not apply to the 

satisfaction of an installment obligation. 

For example, an installment obligation 

of an issuer, such as a corporation or 

partnership, is satisfied when the holder 

transfers the obligation to the issuer for 

an equity interest in the issuer. 

DATES: Comments or a request for a 

public hearing must be received by 

March 23, 2015. 

ADDRESSES: Send submissions to 

CC:PA:LPD:PR (REG–109187–11), room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. Submissions 

may be hand delivered Monday through 

Friday between the hours of 8 a.m. and 

4 p.m. to CC:PA:LPD:PR (REG–109187– 

11), Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC, or sent electronically 

via the Federal eRulemaking Portal at 

www.regulations.gov (IRS REG–109187– 

11). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Arvind Ravichandran, (202) 317–4718; 

concerning the submission of comments 

and/or requests for a public hearing, 

Olawafunmilayo (Funmi) Taylor at (202) 

317–6901 (not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains proposed 

amendments to the regulations in 26 

CFR part 1 under section 453B of the 

Internal Revenue Code (Code) relating to 

gain or loss on the disposition of 

installment obligations. Section 453B 

was added to the Code by the 

Installment Sales Revision Act of 1980, 

Public Law 96–471 (94 Stat. 2252 

(1980)). 

Section 453B replaces and provides 

generally the same rules as former 

section 453(d). In general, under section 

453B(a) gain or loss is recognized upon 

the satisfaction of an installment 

obligation at other than its face value, or 

upon the distribution, transmission, 

sale, or other disposition of the 

installment obligation. Section 1.453– 

9(c)(2) of the Income Tax Regulations, 

issued under former section 453(d), 

provides an exception to the general 

rule. Under § 1.453–9(c)(2), if the Code 

provides an exception to the recognition 

of gain or loss for certain dispositions, 

then gain or loss is not recognized under 

former section 453(d) on the disposition 

of an installment obligation within that 

exception. The exceptions identified in 

§ 1.453–9(c)(2) include certain transfers 

to corporations under sections 351 and 

361, contributions to partnerships under 

section 721, and distributions by 

partnerships to partners under section 

731 (except as provided by section 736 

and section 751). 

Under Rev. Rul. 73–423, 1973–2 CB 

161, the exceptions in § 1.453–9(c)(2) to 

recognition of gain or loss under the 

installment sale rules do not apply to 

the transfer of an installment obligation 

that results in a satisfaction of the 

obligation. Thus, the revenue ruling 

holds that the transfer of a corporation’s 

installment obligation to the issuing 

corporation in exchange for stock of the 

issuing corporation results in a 

satisfaction of the obligation. In that 

case, the transferor must recognize gain 

or loss on the satisfaction of the 

obligation to the extent of the difference 

between the transferor’s basis in the 

obligation and the fair market value of 

the stock received, even though gain or 

loss generally is not recognized on 

section 351 transfers. 

Explanation of Provisions 

These proposed regulations republish 

in § 1.453B–1(c) the general rule in 

§ 1.453–9(c)(2) under which gain or loss 

is not recognized upon certain 

dispositions. In addition, the proposed 

regulations incorporate and expand the 

holding of Rev. Rul. 73–423 to provide 

that a transferor recognizes gain or loss 

under section 453B(a) when the 

transferor disposes of an installment 

obligation in a transaction that results in 

the satisfaction of the installment 

obligation, including, for example, 

when an installment obligation of a 

corporation or partnership is 

contributed to the corporation or 

partnership in exchange for an equity 

interest in the corporation or 

partnership. Finally, the proposed 

regulations amend the regulations under 

sections 351, 361, and 721 to include a 

cross-reference to the regulations under 

section 453B regarding recognition of 

any gain or loss upon the satisfaction of 

an installment obligation. The IRS and 

the Treasury Department anticipate 

publishing regulations addressing the 

general rule under section 453B(a) and 

the basis of an obligation under section 

453B(b) in the future. Therefore, 

regulations under § 1.453B–1(a) and (b) 

are reserved. 

Proposed Effective/Applicability Date 

These regulations are proposed to 

apply to satisfactions, distributions, 

transmissions, sales, or other 


tkelley on DSK3SPTVN1PROD with PROPOSALS