29934 Federal Register / Vol. 74, No. 120 / Wednesday, June 24, 2009 / Rules and Regulations 

modified first mortgage.’’ For interestonly loans, ‘‘[t]he second lien will 

amortize over the longer of the 

remaining term of the modified first lien 

or the originally scheduled amortization 

term, with amortization to begin at the 

time specified in the original contract.’’ 

Without an amendment to § 701.21(f), 

federal credit unions cannot participate 

in the MHA Second Lien Program if the 

first mortgage is for a term longer than 

20 years. 

This interim final rule creates a 

limited exception to the 20-year 

maturity limit on second mortgage 

loans. The new provision, § 701.21(f)(3), 

will permit federal credit unions 

participating in Treasury’s MHA 

Program to modify a second mortgage to 

match the term of a modified first 

mortgage, beyond 20 years. Credit 

unions that are not participating in the 

MHA Second Lien Program will still be 

subject to the current 20-year maturity 

limitation on second liens. 

II. Interim Rule and Immediate 

Effective Date 

NCUA is issuing this rulemaking as 

an interim final rule, effective upon 

publication. The Administrative 

Procedure Act (APA), 5 U.S.C. 553, 

requires that, before a rulemaking can be 

finalized, it must first be published as 

a notice of proposed rulemaking with 

the opportunity for public comment, 

unless the agency for good cause finds 

that notice and public comment are 

impracticable, unnecessary, or contrary 

to the public interest. Additionally, the 

APA requires that, once finalized, a 

rulemaking must have a delayed 

effective date of 30 days from the date 

of publication, except for good cause. 

In this regard, NCUA invokes the 

good cause exception to the 

requirements of the APA. NCUA 

believes good cause exists for issuing 

these amendments as an interim rule 

effective immediately. Due to the deep 

contraction in the American economy 

and, in particular, the housing market, 

millions of homeowners are struggling 

with unaffordable housing payments 

and are at risk of foreclosure. The 

interim rule provides credit unions with 

the ability to participate in the MHA 

Second Lien Program and, thus, to 

better assist struggling homeowners 

unable to afford their housing payments. 

The interim rule is limited in scope and 

does not impose any regulatory burden; 

rather, the rule provides greater 

flexibility for credit unions to assist 

their members in these turbulent 

economic times. 

For these reasons, NCUA has 

determined that the public notice and 

participation that the APA ordinarily 

requires before a regulation may take 

effect would, in this case, be contrary to 

the public interest and, further, that 

good cause exists for waiving the 

customary 30-day delayed effective 

date. Nevertheless, NCUA would like 

the benefit of public comment before 

adopting a permanent final rule and, 

thus, invites interested parties to submit 

comments during a 60-day comment 

period. In adopting the final regulation, 

NCUA will revise the interim rule in 

light of the comments received on the 

interim rule, if appropriate. 

III. Regulatory Procedures 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

requires NCUA to prepare an analysis to 

describe any significant economic 

impact a rule may have on a substantial 

number of small entities (primarily 

those under ten million dollars in 

assets). This interim final rule does not 

impose any regulatory burden but 

provides flexibility to all federal credit 

unions to allow for participation in the 

MHA Second Lien Program. 

Accordingly, it will not have a 

significant economic impact on a 

substantial number of small credit 

unions, and therefore, no regulatory 

flexibility analysis is required. 

Paperwork Reduction Act 

NCUA has determined that this rule 

will not increase paperwork 

requirements under the Paperwork 

Reduction Act of 1995 and regulations 

of the Office of Management and 

Budget. 

The Treasury and General Government 

Appropriations Act, 1999—Assessment 

of Federal Regulations and Policies on 

Families 

NCUA has determined that this 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). 

Small Business Regulatory Enforcement 

Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act of 1996 (Pub. 

L. 104–121) (SBREFA) provides 

generally for congressional review of 

agency rules. A reporting requirement is 

triggered in instances where NCUA 

issues a final rule as defined by Section 

551 of the APA. 5 U.S.C. 551. NCUA 

does not believe this interim final rule 

is a ‘‘major rule’’ within the meaning of 

the relevant sections of SBREFA. NCUA 

has submitted the rule to the Office of 

Management and Budget for its 

determination in that regard. 

List of Subjects in 12 CFR Part 701 

Credit, Credit unions, Mortgages. 

By the National Credit Union 

Administration Board, this 18th day of June 

2009. 

Mary F. Rupp, 

Secretary of the Board. 

■ For the reasons discussed above, 

NCUA amends 12 CFR Part 701 as 

follows: 

PART 701—ORGANIZATION AND 

OPERATION OF FEDERAL CREDIT 

UNIONS 

■ 1. The authority citation for Part 701 

continues to read as follows: 

Authority: 12 U.S.C. 1752(5), 1755, 1756, 

1757, 1759, 1761a, 1761b, 1766, 1767, 1782, 

1784, 1787, and 1789. 

Section 701.6 is also authorized by 15 

U.S.C. 3717. 

Section 701.31 is also authorized by 15 

U.S.C. 1601 et seq.; 42 U.S.C. 1981 and 3601– 

3610. 

Section 701.35 is also authorized by 42 

U.S.C. 4311–4312. 

■ 2. Section 701.21 is amended by 

adding new paragraph (f)(3) to read as 

follows: 

§ 701.21 Loans to members and lines of 

credit to members. 

* * * * * 

(f) * * * 

(3) Notwithstanding the general 20- 

year maturity limit on second mortgage 

loans, a federal credit union 

participating in the Department of the 

Treasury’s Making Home Affordable 

Program may extend the term of a 

modified second mortgage to match the 

term of a modified first mortgage, in 

accordance with applicable program 

guidelines. 

* * * * * 

[FR Doc. E9–14759 Filed 6–23–09; 8:45 am] 

BILLING CODE 7535–01–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 701 

RIN 3133–AD60 

Operating Fees 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Final rule. 

SUMMARY: NCUA is amending its rule on 

the assessment of the Federal credit 

union (FCU) operating fee by permitting 

FCUs to subtract investments made 

under the Credit Union System 

Investment Program (CU SIP) and the 

Federal Register / Vol. 74, No. 120 / Wednesday, June 24, 2009 / Rules and Regulations 29935 

Credit Union Homeowners Affordability 

Relief Program (CU HARP) from their 

total assets; total assets is the basis on 

which the operating fee is currently 

calculated. The Board believes this 

amendment will remove a disincentive 

for some FCUs from participating in the 

CU SIP or the CU HARP. 

DATES: This rule is effective January 1, 

2010. 

FOR FURTHER INFORMATION CONTACT: 

Justin M. Anderson, Staff Attorney, 

Office of General Counsel, at (703) 518– 

6540. 

SUPPLEMENTARY INFORMATION: 

A. Background 

In February 2009, the NCUA Board 

issued a proposed rule to amend § 701.6 

of NCUA’s regulations. 74 FR 9573 

(Mar. 5, 2009). The proposed rule 

recommended allowing FCUs to deduct 

investments under the CU SIP and CU 

HARP from the calculation of total 

assets for purposes of assessing the 

operating fee. 

Currently, § 701.6 sets out the basis on 

which NCUA assesses the operating fee. 

Briefly summarized, this section 

provides that FCUs must pay NCUA an 

annual operating fee based on the credit 

union’s total assets. 12 CFR 701.6(a). 

NCUA calculates an FCU’s operating fee 

by multiplying the dollar amount of the 

total assets by a percentage set by the 

Board after considering the expenses of 

NCUA and the ability of FCUs to pay 

the fee. The term ‘‘total assets’’ generally 

includes all assets created on an FCU’s 

books related to investments made by an 

FCU that are currently outstanding as of 

the close of the previous fiscal year. 

Based on this calculation, an increase in 

the dollar amount of investments will 

increase total assets and, thereby, may 

increase an FCU’s operating fee. 

The Board recognized an increase in 

an FCUs operating fee might be a 

disincentive for FCUs to participate in 

the CU SIP and CU HARP. The Board, 

therefore, issued a proposed rule 

permitting FCUs to calculate their total 

assets less any asset created by an 

investment in the CU SIP or CU HARP. 

Because the operating fee is based on an 

FCU’s total assets as of the close of the 

previous fiscal year and funding for the 

CU SIP and CU HARP took place after 

January 1, 2009, the proposed 

amendments would not affect the 

computation of the operating fee until 

2010. 

B. Discussion 

The NCUA Board received seven 

comment letters regarding the proposal: 

two from credit union trade 

associations; two from State credit 

union leagues; and three from FCUs. All 

of the comment letters generally 

supported the amendment in the 

proposed rule and six of the 

commenters offered no additional 

comments or suggestions. One 

commenter suggested NCUA also amend 

the definition of total assets for 

purposes of prompt corrective action, 12 

CFR Part 702, to exclude guaranteed or 

no/low risk assets from net worth ratio 

calculations. This comment is outside 

the scope of this rulemaking; NCUA 

may consider this suggestion when it 

reviews the prompt corrective action 

rule as part of its rolling regulation 

review under Interpretive Ruling and 

Policy Statement (IRPS) 87–2, 

Developing and Reviewing Government 

Regulations. 

In the final rule, the Board is adopting 

a recommendation from agency staff to 

revise the regulatory language to 

describe the calculation more clearly. 

The proposed rule stated the term ‘‘total 

assets’’ does not include investments 

made under the CU SIP and CU HARP. 

The final rule has been revised to state 

the operating fee is determined based on 

total assets less the assets created on the 

books of a natural person FCU by 

investments under CU SIP and CU 

HARP. This revision does not change 

the substance of the proposed 

amendment or its intended effect, which 

is to ensure that FCUs will not pay an 

increased operating fee because of their 

participation in the CU SIP or CU 

HARP. 

Regulatory Procedures 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

requires NCUA to prepare an analysis to 

describe any significant economic 

impact a proposed rule may have on a 

substantial number of small credit 

unions (those under $10 million in 

assets). This final rule revises the 

calculation of total assets for purposes 

of the assessment of the FCU operating 

fee and permits FCUs to subtract 

investments made under the CU SIP and 

the CU HARP from the calculation. The 

operating fee is calculated as a 

percentage of total assets and, as such, 

the calculation already is geared to 

impose a smaller fee on smaller credit 

unions. In addition, the operating fee 

schedule has historically imposed no 

operating fee on FCUs with assets up to 

$500,000 and a flat fee of $100 for FCUs 

of up to $750,000 in assets. The benefit 

of the amendment would apply equally 

to small credit unions, to the extent they 

participate in the CU SIP or the CU 

HARP, and would not have a significant 

effect on their operating fees. The final 

rule, therefore, will not have a 

significant economic impact on a 

substantial number of small credit 

unions and a regulatory flexibility 

analysis is not required. 

Paperwork Reduction Act 

NCUA has determined that the 

amendment will not increase paperwork 

requirements and a paperwork 

reduction analysis is not required. 

Small Business Regulatory Enforcement 

Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act of 1996 (Pub. 

L. 104–121) provides generally for 

congressional review of agency rules. A 

reporting requirement is triggered in 

instances where NCUA issues a final 

rule as defined by Section 551 of the 

Administrative Procedure Act. 5 U.S.C. 

551. NCUA does not believe this final 

rule is a ‘‘major rule’’ within the 

meaning of the relevant sections of 

SBREFA. NCUA has submitted the rule 

to the Office of Management and Budget 

for its determination in that regard. 

Executive Order 13132 

Executive Order 13132 encourages 

independent regulatory agencies to 

consider the impact of their actions on 

State and local interests. In adherence to 

fundamental federalism principles, 

NCUA, an independent regulatory 

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

voluntarily complies with the executive 

order. The final rule does not have 

substantial direct effects on the States, 

on the connection between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. NCUA has 

determined that this final rule does not 

constitute a policy that has federalism 

implications for purposes of the 

executive order. 

The Treasury and General Government 

Appropriations Act, 1999—Assessment 

of Federal Regulations and Policies on 

Families 

NCUA has determined that this final 

rule would 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 701 

Credit unions, Operating fee. 

By the National Credit Union 

Administration Board on June 18, 2009. 

Mary Rupp, 

Secretary of the Board. 

■ For the reasons stated in the preamble, 

the National Credit Union 

29936 Federal Register / Vol. 74, No. 120 / Wednesday, June 24, 2009 / Rules and Regulations 

Administration is amending 12 CFR part 

701 as set forth below: 

PART 701—ORGANIZATION AND 

OPERATIONS OF FEDERAL CREDIT 

UNIONS 

■ 1. The authority citation for part 701 

continues to read as follows: 

Authority: 12 U.S.C. 1752(5), 1755, 1756, 

1757, 1759, 1761a, 1761b, 1766, 1767, 1782, 

1784, 1787, 1789. Section 701.6 is also 

authorized by 15 U.S.C. 3717. Section 701.31 

is also authorized by 15 U.S.C. 1601 et seq.; 

42 U.S.C. 1981 and 3601–3610. Section 

701.35 is also authorized by 42 U.S.C. 4311– 

4312. 

■ 2. In § 701.6, add a new sentence to 

the end of paragraph (a) to read as 

follows: 

§ 701.6 Fees paid by Federal credit unions. 

(a) * * * The operating fee is 

determined based on total assets less the 

assets created on the books of a natural 

person Federal credit union by 

investments made in a corporate credit 

union under the Credit Union System 

Investment Program or the Credit Union 

Homeowners Affordability Relief 

Program. 

* * * * * 

[FR Doc. E9–14756 Filed 6–23–09; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2009–0570; Directorate 

Identifier 2009–CE–033–AD; Amendment 

39–15949; AD 2009–13–10] 

RIN 2120–AA64 

Airworthiness Directives; British 

Aerospace Regional Aircraft Model 

HP.137 Jetstream Mk.1, Jetstream 

Series 200 and 3101, and Jetstream 

Model 3201 Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; request for 

comments. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for the 

products listed above. This AD results 

from mandatory continuing 

airworthiness information (MCAI) 

issued by the aviation authority of 

another country to identify and correct 

an unsafe condition on an aviation 

product. The MCAI describes the unsafe 

condition as: 

BAE systems have been notified by the 

MLG radius rod manufacturer, APPH Ltd, 

that a batch of incorrectly manufactured 

Buffer Springs (part number 184818) had 

been supplied to their parts distributor and 

MRO facilities in North America. 

There is a risk that any radius rod fitted 

with one of these incorrectly manufactured 

Buffer Springs could jam in an unlocked 

position. 

This condition, if not corrected, could 

result in MLG collapse. 

This AD requires actions that are 

intended to address the unsafe 

condition described in the MCAI. 

DATES: This AD becomes effective June 

26, 2009. 

On June 26, 2009, the Director of the 

Federal Register approved the 

incorporation by reference of certain 

publications listed in this AD. 

We must receive comments on this 

AD by July 24, 2009. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Management Facility between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The AD 

docket contains this AD, the regulatory 

evaluation, any comments received, and 

other information. The street address for 

the Docket Office (telephone (800) 647– 

5527) is in the ADDRESSES section. 

Comments will be available in the AD 

docket shortly after receipt. 

FOR FURTHER INFORMATION CONTACT: 

Taylor Martin, Aerospace Engineer, 

FAA, Small Airplane Directorate, 901 

Locust, Room 301, Kansas City, 

Missouri 64106; telephone: (816) 329– 

4138; fax: (816) 329–4090. 

SUPPLEMENTARY INFORMATION: 

Discussion 

The European Aviation Safety Agency 

(EASA), which is the Technical Agent 

for the Member States of the European 

Community, has issued EASA 

Emergency AD No. 2009–0121–E, dated 

June 9, 2009 (referred to after this as 

‘‘the MCAI’’), to correct an unsafe 

condition for the specified products. 

The MCAI states: 

BAE systems have been notified by the 

MLG radius rod manufacturer, APPH Ltd, 

that a batch of incorrectly manufactured 

Buffer Springs (part number 184818) had 

been supplied to their parts distributor and 

MRO facilities in North America. 

There is a risk that any radius rod fitted 

with one of these incorrectly manufactured 

Buffer Springs could jam in an unlocked 

position. 

This condition, if not corrected, could 

result in MLG collapse. 

For the reasons described above, this 

Emergency AD requires the replacement of 

each affected radius rod with a serviceable 

unit and allows the installation of the 

affected radius rods only after the 

accomplishment of APPH Service Bulletins 

1847–32–14 and 1862–32–14. 

You may obtain further information 

by examining the MCAI in the AD 

docket. 

Relevant Service Information 

British Aerospace Regional Aircraft 

has issued British Aerospace Jetstream 

Series 3100 and 3200 Alert Service 

Bulletin 32–A–JA090640, dated June 

2009 (includes an attached 

Accomplishment Report), and APPH 

BBA Aviation has issued APPH Ltd. 

Service Bulletins 1847–32–14 and 

1862–32–14, both dated June 2009. The 

actions described in this service 

information are intended to correct the 

unsafe condition identified in the 

MCAI. 

FAA’s Determination and Requirements 

of the AD 

This product has been approved by 

the aviation authority of another 

country, and is approved for operation 

in the United States. Pursuant to our 

bilateral agreement with this State of 

Design Authority, they have notified us 

of the unsafe condition described in the 

MCAI and service information 

referenced above. We are issuing this 

AD because we evaluated all 

information provided by the State of 

Design Authority and determined the 

unsafe condition exists and is likely to 

exist or develop on other products of the 

same type design. 

Differences Between This AD and the 

MCAI or Service Information 

We have reviewed the MCAI and 

related service information and, in 

general, agree with their substance. But 

we might have found it necessary to use 

different words from those in the MCAI 

to ensure the AD is clear for U.S. 

operators and is enforceable. In making 

these changes, we do not intend to differ 

substantively from the information