This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

40473 

Vol. 82, No. 164 

Friday, August 25, 2017 

1The Board’s PSR policy is available at https:// 

www.federalreserve.gov/paymentsystems/files/psr_

policy.pdf. 

2 80 FR 58248 (Sep. 28, 2015). NACHA, whose 

membership consists of insured financial 

institutions and regional payment associations, 

establishes network-wide ACH rules through its 

Operating Rules and Guidelines. As an ACH 

operator, the Reserve Banks, through Operating 

Circular 4, incorporate NACHA’s Operating Rules 

and Guidelines as rules that govern clearing and 

settlement of commercial ACH items by the Reserve 

Banks, except for those provisions specifically 

excluded in the Operating Circular. 

3The NACHA amendments, as incorporated into 

Operating Circular 4, become effective in three 

phases, beginning with same-day credits in 

September 2016, same-day debits in 2017, and 

faster funds availability in March 2018. Next-day 

settlement remains available. 

4The FedACH Facsimile Exception Return/NOC 

service allows institutions to submit return/NOC 

items via a paper form when electronic methods are 

otherwise unavailable. 5ACH return items not initiated as part of the 

derived returns function but processed by the 

Reserve Banks will continue to post at the next 

available posting time or following the settlement 

of the associated forward transaction. Thus, credits 

and debits for return items will continue to post at 

8:30 a.m., 1:00 p.m., 5:00 p.m., or 5:30 p.m., with 

the specific posting time determined by when the 

item is received by the Reserve Banks. 

FEDERAL RESERVE SYSTEM 

12 CFR Chapter II 

[Docket No. OP–1572] 

Policy on Payment System Risk 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Policy statement. 

SUMMARY: The Board of Governors of the 

Federal Reserve System (Board) has 

revised part II of the Federal Reserve 

Policy on Payment System Risk (PSR 

policy) related to the transaction posting 

times used for measuring balances 

intraday in institutions’ accounts at the 

Federal Reserve Banks (Reserve Banks) 

to conform to enhancements to the 

Reserve Banks’ same-day automated 

clearinghouse (ACH) service. 

DATES: Effective Date: September 15, 

2017. 

FOR FURTHER INFORMATION CONTACT: 

Jeffrey D. Walker, Assistant Director 

(202–721–4559), Jason Hinkle, Manager, 

Financial Risk Management (202–912– 

7805), or Ian C.B. Spear, Senior 

Financial Services Analyst (202–452– 

3959), Division of Reserve Bank 

Operations and Payment Systems; for 

users of Telecommunication Devices for 

the Deaf (TDD) only, contact 202–263– 

4869; Board of Governors of the Federal 

Reserve System, 20th and C Streets 

NW., Washington, DC 20551. 

SUPPLEMENTARY INFORMATION: 

Background 

The Board’s PSR policy establishes 

the procedures for measuring balances 

intraday in institutions’ accounts at the 

Reserve Banks by setting forth the times 

at which credits and debits for various 

types of transactions are posted to those 

accounts (‘‘the posting rules’’).1 The 

application of these posting rules 

determines an institution’s intraday 

account balance and whether it has 

incurred a negative balance (daylight 

overdraft). 

On September 23, 2015, the Board 

approved enhancements to the Reserve 

Banks’ FedACH® SameDay Service 

(FedACH SameDay Service) in light of 

amendments to NACHA—The 

Electronic Payments Association’s 

Operating Rules and Guidelines.2 The 

first phase of the FedACH SameDay 

Service provided for same-day 

settlement of ACH credit transactions. 

As part of the implementation of the 

second phase of the FedACH SameDay 

Service, forward ACH debit transactions 

will be eligible for same-day settlement 

effective September 15, 2017.3 The PSR 

policy’s posting rules for same-day ACH 

return transactions are being updated to 

conform to the associated changes in the 

Reserve Banks’ service as described 

below. 

Today, the Reserve Banks’ offer an 

ACH derived returns function for 

institutions that connect to the Reserve 

Banks’ ACH service through the 

FedLine Web® access solution. The 

derived return function allows an 

institution to generate returns via 

FedLine Web using information from 

the forward ACH items that an 

institution receives through FedACH. 

The function is designed primarily for 

institutions that lack the software or 

processing capability to generate returns 

themselves. 

The derived returns function uses 

information not available until the day 

after the processing day for forward 

ACH item and thus cannot be used to 

generate returns of items settled the 

same processing day. Given the phase 

two expansion of the FedACH SameDay 

Service to include ACH debits, the 

Reserve Banks will provide users of the 

derived return function an interim 

solution to return certain high-value 

same-day forward items for settlement 

on the same processing day. 

Specifically, the Reserve Banks intend 

to introduce a same-day paper return 

option for same-day forward entries 

greater than $10,000. This option will be 

added to the existing FedACH Facsimile 

Exception Return/NOC service.4 Return 

items initiated as part of that option will 

post at 5:30 p.m. on the same day as the 

forward item was processed.5 The 

introduction of the new paper-return 

option for same-day forward entries is 

intended to serve as an interim solution 

while the Reserve Banks complete their 

ACH platform modernization project. 

Once completed, the Reserve Banks 

anticipate providing users of FedLine 

Web derived returns the automated 

ability to derive returns for same-day 

forward entries to be settled the same 

processing day. 

In addition, the Board is updating the 

PSR policy to clarify that paper returns 

and paper notifications of change 

(NOCs) of prior-dated items will only 

post at 5:00 p.m., removing reference to 

an 8:30 a.m. posting time. These paper 

items are manually processed by 

Reserve Bank staff during normal 

business hours and not overnight, 

which an 8:30 a.m. posting time would 

require. FedLine Web returns and 

FedLine Web NOCs will continue to 

post at 8:30 a.m. and 5:00 p.m., 

depending on when the item is received 

by Reserve Banks. 

Policy on Payment System Risk 

The Federal Reserve Policy on 

Payment System Risk, section II.A, 

under the heading ‘‘Procedures for 

Measuring Daylight Overdrafts’’ and the 

subheadings ‘‘Post at 8:30 a.m. eastern 

time,’’ ‘‘Post by 1:00 p.m. eastern time,’’ 

‘‘Post at 5:00 p.m. eastern time,’’ and 

‘‘Post at 5:30 p.m. eastern time,’’ is 

amended as follows: 

Post at 8:30 a.m. eastern time: 

+/¥ Term deposit maturities and 

accrued interest 


pmangrum on DSK3GDR082PROD with RULES
40474 Federal Register / Vol. 82, No. 164 / Friday, August 25, 2017 / Rules and Regulations 

6With the exception of paper returns and paper 

notifications of change of prior-dated items that 

only post at 5:00 p.m.; and paper returns of sameday forward items that only post at 5:30 p.m. 

Institutions that are monitored in real time must 

fund the total amount of their commercial ACH 

credit originations in order for the transactions to 

be processed. If the Federal Reserve receives 

commercial ACH credit transactions from 

institutions monitored in real time after the 

scheduled close of the Fedwire Funds Service, 

these transactions will be processed at 12:30 a.m. 

the next business day, or by the ACH deposit 

deadline, whichever is earlier. The Account 

Balance Monitoring System provides intraday 

account information to the Reserve Banks and 

institutions and is used primarily to give authorized 

Reserve Bank personnel a mechanism to control 

and monitor account activity for selected 

institutions. For more information on ACH 

transaction processing, refer to the ACH Settlement 

Day Finality Guide available through the Federal 

Reserve Financial Services Web site at http://

www.frbservices.org. 

The federal government will not participate in the 

same-day ACH service upon initial implementation 

in September 2016. ACH forward transactions 

originated or received by the federal government 

will not be eligible for same-day settlement and will 

settle on the next business day, or on a future date 

as indicated by the effective settlement date. 

7For the three commercial check transaction 

posting times, the Reserve Banks will post credits 

and debits to institutions’ accounts for checks 

deposited and presented, respectively, at least 30 

minutes before the posting time. 

8The Reserve Banks will identify and notify 

institutions with Treasury-authorized penalties on 

Thursdays. In the event that Thursday is a holiday, 

the Reserve Banks will identify and notify 

institutions with Treasury-authorized penalties on 

the following business day. Penalties will then be 

posted on the business day following notification. 

9With the exception of paper returns and paper 

notifications of change (NOCs) of prior-dated items 

that only post at 5:00 p.m.; paper returns of sameday forward items that only post at 5:30 p.m.; and 

FedLine Web returns and FedLine Web NOCs that 

only post at 8:30 a.m. and 5:00 p.m., depending on 

when the item is received by Reserve Banks. 

10With the exception of paper returns of sameday forward items that only post at 5:30 p.m. 

11With the exception of paper returns and paper 

notifications of change (NOCs) of prior-dated items 

that only post at 5:00 p.m.; and FedLine Web 

returns and FedLine Web NOCs that only post at 

8:30 a.m. and 5:00 p.m., depending on when the 

item is received by Reserve Banks. 

+/¥ Government and commercial ACH 

transactions, including return items 6

+/¥ Commercial check transactions, 

including returned checks 7

+ Treasury checks, postal money 

orders, local Federal Reserve Bank 

checks, and savings bond 

redemptions in separately sorted 

deposits; these items must be 

deposited by the latest applicable 

deposit deadline preceding the 

posting time 

+ Advance-notice Treasury investments 

¥ Penalty assessments for tax 

payments from the Treasury 

Investment Program (TIP).8

Post by 1:00 p.m. eastern time: 

+/¥ Commercial check transactions, 

including returned checks 

+/¥ FedACH SameDay Service 

transactions, including return items 9

+ Same-day Treasury investments. 

Post at 5:00 p.m. eastern time: 

+/¥ FedACH SameDay Service 

transactions, including return items 10

+ Treasury checks, postal money 

orders, and savings bond redemptions 

in separately sorted deposits; these 

items must be deposited by the latest 

applicable deposit deadline preceding 

the posting time 

+ Local Federal Reserve Bank checks; 

these items must be presented before 

3:00 p.m. eastern time 

Post at 5:30 p.m. eastern time: 

+/¥ FedACH SameDay Service return 

transactions 11

+/¥ Commercial check transactions, 

including returned checks 

By order of the Board of Governors of the 

Federal Reserve System, acting through the 

Director of the Division of Reserve Bank 

Operations and Payment Systems under 

delegated authority, August 21, 2017. 

Ann E. Misback, 

Secretary of the Board. 

[FR Doc. 2017–17987 Filed 8–24–17; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2017–0496; Product 

Identifier 2016–NM–103–AD; Amendment 

39–19001; AD 2017–17–11] 

RIN 2120–AA64 

Airworthiness Directives; Dassault 

Aviation Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for certain 

Dassault Aviation Model FALCON 7X 

airplanes. This AD was prompted by a 

report indicating that, under certain 

operational takeoff conditions, the 

available thrust in relation with the N1 

indication is less than a certified value, 

which could affect the safety margins 

with an engine failure during takeoff. 

This AD requires modifying each engine 

by updating the electronic engine 

control (EEC) software and adjusting the 

engine N1 trim value, and revising the 

airplane flight manual (AFM). We are 

issuing this AD to address the unsafe 

condition on these products. 

DATES: This AD is effective September 

29, 2017. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in this AD 

as of September 29, 2017. 

ADDRESSES: For Dassault service 

information identified in this final rule, 

contact Dassault Falcon Jet Corporation, 

Teterboro Airport, P.O. Box 2000, South 

Hackensack, NJ 07606; telephone 201– 

440–6700; Internet http://

www.dassaultfalcon.com. For Pratt & 

Whitney Canada service information 

identified in this final rule, contact Pratt 

& Whitney Canada Corp., 1000 MarieVictorin, Longueuil, Quebec, Canada, 

J4G 1A1; telephone 800–268–8000; fax 

450–647–2888; Internet http://

www.pwc.ca. You may view this 

referenced service information at the 

FAA, Transport Standards Branch, 1601 

Lind Avenue SW., Renton, WA. For 

information on the availability of this 

material at the FAA, call 425–227–1221. 

It is also available on the Internet at 

http://www.regulations.gov by searching 

for and locating Docket No. FAA–2017– 

0496. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2017– 

0496; 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 Docket Management Facility, 

U.S. Department of Transportation, 

Docket Operations, M–30, West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue SE., 

Washington, DC 20590. 

FOR FURTHER INFORMATION CONTACT: Tom 

Rodriguez, Aerospace Engineer, 

International Section, Transport 

Standards Branch, FAA, 1601 Lind 

Avenue SW., Renton, WA 98057–3356; 

telephone 425–227–1137; fax 425–227– 

1149. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to certain Dassault Aviation 

Model FALCON 7X airplanes. The 

NPRM published in the Federal 

Register on May 30, 2017 (82 FR 24603) 

(‘‘the NPRM’’). We are issuing this AD 

to prevent a reduction in available 

engine thrust during certain operational 

takeoff conditions, which could affect 


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