15076 Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 

rule does not have sufficient federalism 

implications to warrant the preparation 

of a federalism summary impact 

statement. 

G. Executive Order 12988 (Civil Justice 

Reform) 

This rule meets the applicable 

standards set forth in section 3(a) and 

3(b)(2) of Executive Order 12988. 

H. Paperwork Reduction Act 

This rule does not propose new, or 

revisions to existing, ‘‘collection[s] of 

information’’ as that term is defined 

under the Paperwork Reduction Act of 

1995, Public Law 104–13, 44 U.S.C. 

chapter 35, and its implementing 

regulations, 5 CFR part 1320. As this is 

an extension of a temporary final rule 

and would only span 180 days, USCIS 

does not anticipate a need to update the 

Form I–589, Application for Asylum 

and for Withholding of Removal, 

despite the existing language on the 

Instructions regarding interpreters, 

because it will be primarily 

rescheduling interviews that were 

cancelled due to COVID–19. USCIS will 

post updates on its I–589 website, 

https://www.uscis.gov/i-589, and other 

asylum and relevant web pages 

regarding the new interview 

requirements in this regulation, as well 

as provide personal notice to applicants 

via the interview notices issued to 

applicants prior to their interview. 

List of Subjects in 8 CFR Part 208 

Administrative practice and 

procedure, Aliens, Immigration, 

Reporting and recordkeeping 

requirements. 

Accordingly, for the reasons set forth 

in the preamble, the Secretary of 

Homeland Security amends 8 CFR part 

208 as follows: 

PART 208—PROCEDURES FOR 

ASYLUM AND WITHHOLDING OF 

REMOVAL 

■ 1. The authority citation for part 208 

continues to read as follows: 

Authority: 8 U.S.C. 1101, 1103, 1158, 1226, 

1252, 1282; Title VII of Pub. L. 110–229; 8 

CFR part 2; Pub. L. 115–218. 

■ 2. Section 208.9(h) introductory text is 

revised to read as follows: 

§ 208.9 Procedure for interview before an 

asylum officer. 

* * * * * 

(h) Asylum applicant interpreters. For 

asylum interviews conducted between 

September 23, 2020 through September 

20, 2021: 

* * * * * 

Alejandro Mayorkas, 

Secretary, U.S. Department of Homeland 

Security. 

[FR Doc. 2021–05872 Filed 3–19–21; 8:45 am] 

BILLING CODE 9111–97–P 

DEPARTMENT OF TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Parts 3 and 5 

[Docket ID OCC–2021–0002] 

RIN 1557–AF09 

FEDERAL RESERVE SYSTEM 

12 CFR Part 217 

[Regulation Q; Docket No. R–1741 ] 

RIN 7100–AG11 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 324 

RIN 3064–AF73 

Regulatory Capital Rule: Emergency 

Capital Investment Program 

AGENCY: Office of the Comptroller of the 

Currency, Treasury (OCC); Board of 

Governors of the Federal Reserve 

System (Board); and Federal Deposit 

Insurance Corporation (FDIC). 

ACTION: Interim final rule; request for 

public comment. 

SUMMARY: In order to support and 

facilitate the timely implementation and 

acceptance of the Congressionally 

authorized Emergency Capital 

Investment Program (ECIP) for the 

Department of the Treasury to make 

capital investments in low- and 

moderate-income community financial 

institutions, the OCC, Board, and FDIC 

(together, the agencies) are issuing an 

interim final rule that provides that 

preferred stock issued under ECIP 

qualifies as additional tier 1 capital and 

that subordinated debt issued under 

ECIP qualifies as tier 2 capital under the 

agencies’ capital rule. 

DATES: This rule is effective on March 

22, 2021. Comments must be received 

on or before May 21, 2021. 

ADDRESSES: 

OCC: Commenters are encouraged to 

submit comments through the Federal 

eRulemaking Portal, if possible. Please 

use the title ‘‘Amendments to the 

Capital Rule to Facilitate the Emergency 

Capital Investment Program’’ to 

facilitate the organization and 

distribution of the comments. You may 

submit comments by any of the 

following methods: 

Federal eRulemaking Portal: Go to 

https://www.regulations.gov/. Enter 

‘‘Docket ID OCC–2021–0002’’ in the 

Search Box and click ‘‘Search.’’ Public 

comments can be submitted via the 

‘‘Comment’’ box below the displayed 

document information or by clicking on 

the document title and then clicking the 

‘‘Comment’’ box on the top-left side of 

the screen. For help with submitting 

effective comments please click on 

‘‘View Commenter’s Checklist.’’ For 

assistance with the Regulations.gov site, 

please call (877) 378–5457 (toll free) or 

(703) 454–9859 Monday-Friday, 9am5pm ET or email regulations@

erulemakinghelpdesk.com. 

Mail: Chief Counsel’s Office, Attn: 

Comment Processing, Office of the 

Comptroller of the Currency, 400 7th 

Street SW, Suite 3E–218, Washington, 

DC 20219. 

Hand Delivery/Courier: 400 7th Street 

SW, Suite 3E–218, Washington, DC 

20219. 

Instructions: You must include 

‘‘OCC’’ as the agency name and ‘‘Docket 

ID OCC–2021–0002’’ in your comment. 

In general, the OCC will enter all 

comments received into the docket and 

publish the comments on the 

Regulations.gov website without 

change, including any business or 

personal information provided such as 

name and address information, email 

addresses, or phone numbers. 

Comments received, including 

attachments and other supporting 

materials, are part of the public record 

and subject to public disclosure. Do not 

include any information in your 

comment or supporting materials that 

you consider confidential or 

inappropriate for public disclosure. 

You may review comments and other 

related materials that pertain to this 

action by the following method: 

Go to https://www.regulations.gov/. 

Enter ‘‘Docket ID OCC–2021–0002’’ in 

the Search box and click ‘‘Search.’’ 

Click on the ‘‘Documents’’ tab and then 

the document’s title. After clicking the 

document’s title, click the ‘‘Browse 

Comments’’ tab. Comments can be 

viewed and filtered by clicking on the 

‘‘Sort By’’ drop-down on the right side 

of the screen or the ‘‘Refine Results’’ 

options on the left side of the screen. 

Supporting materials can be viewed by 

clicking on the ‘‘Documents’’ tab and 

filtered by clicking on the ‘‘Sort By’’ 

drop-down on the right side of the 


jbell on DSKJLSW7X2PROD with RULES
Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 15077 

1Public Law 116–260. 

2 Id. 

3 Id. 

4The terms ‘‘Community Development Financial 

Institution’’ and ‘‘Minority Depository Institution’’ 

are defined in section 104A of the Act. 

5An S corporation is corporation that has elected 

Subchapter S corporation status under the Internal 

Revenue Code. 

6Section 104A(d)(5)(B) of the Act. 

7Section 104A(f) of the Act. 

screen or the ‘‘Refine Documents 

Results’’ options on the left side of the 

screen. For assistance with the 

Regulations.gov site, please call (877) 

378–5457 (toll free) or (703) 454–9859 

Monday–Friday, 9 a.m.–5 p.m. ET or 

email regulations@

erulemakinghelpdesk.com. 

The docket may be viewed after the 

close of the comment period in the same 

manner as during the comment period. 

Board: You may submit comments, 

identified by Docket No. R–1741 and 

RIN No. 7100–AG11, by any of the 

following methods: 

Agency Website: http://

www.federalreserve.gov. Follow the 

instructions for submitting comments at 

https://www.federalreserve.gov/apps/ 

foia/proposedregs.aspx. 

Email: regs.comments@

federalreserve.gov. Include docket 

number and RIN in the subject line of 

the message. 

Fax: (202) 452–3819 or (202) 452– 

3102. 

Mail: Ann E. Misback, Secretary, 

Board of Governors of the Federal 

Reserve System, 20th Street and 

Constitution Avenue NW, Washington, 

DC 20551. 

All public comments are available 

from the Board’s website at http://

www.federalreserve.gov/generalinfo/ 

foia/ProposedRegs.cfm as submitted, 

unless modified for technical reasons or 

to remove sensitive personally 

identifiable information at the 

commenter’s request. Public comments 

may also be viewed electronically or in 

paper form in Room 3515, 1801 K Street 

NW, Washington, DC 20006 between 

9:00 a.m. and 5:00 p.m. on weekdays. 

FDIC: You may submit comments 

using any of the following methods: 

Agency Website: https://

www.fdic.gov/regulations/laws/federal. 

Follow the instructions for submitting 

comments on the agency website. 

Email: comments@fdic.gov. Include 

RIN 3064–AF73 on the subject line of 

the message. 

Mail: James P. Sheesley, Assistant 

Executive Secretary, Attention: 

Comments RIN 3064–AF73, Federal 

Deposit Insurance Corporation, 550 17th 

Street NW, Washington, DC 20429. 

Hand Delivery: Comments may be 

hand delivered to the guard station at 

the rear of the 550 17th Street NW 

building (located on F Street) on 

business days between 7 a.m. and 5 p.m. 

Public Inspection: All comments 

received, including any personal 

information provided, will be posted 

generally without change to https://

www.fdic.gov/regulations/laws/federal. 

FOR FURTHER INFORMATION CONTACT: 

OCC: Margot Schwadron, Director, or 

Andrew Tschirhart, Risk Expert, Capital 

Policy, (202) 649–6370; or Carl 

Kaminski, Special Counsel, or Daniel 

Perez, Counsel, Chief Counsel’s Office, 

(202) 649–5490, Office of the 

Comptroller of the Currency, 400 7th 

Street SW, Washington, DC 20219. 

Board: Constance Horsley, Deputy 

Associate Director, (202) 452–5239, 

Naima Jefferson, Lead Financial 

Institution Policy Analyst, (202) 912– 

4613, Senait Kahsay, Senior Financial 

Institution Policy Analyst II, (202) 245– 

4209, Eusebius Luk, Senior Financial 

Institution Policy Analyst I, (202) 452– 

2874, Division of Supervision and 

Regulation; Benjamin McDonough, 

Associate General Counsel, (202) 452– 

2036, Mark Buresh, Senior Counsel, 

(202) 452–5270, Mary Watkins, Counsel, 

(202) 452–3722, Legal Division, Board of 

Governors of the Federal Reserve 

System, 20th and C Streets NW, 

Washington, DC 20551. 

FDIC: Benedetto Bosco, Chief, Capital 

Policy Section, bbosco@fdic.gov; Noah 

Cuttler, Senior Policy Analyst, ncuttler@

fdic.gov; regulatorycapital@fdic.gov; 

Capital Markets Branch, Division of Risk 

Management Supervision, (202) 898– 

6888; Gregory Feder, Counsel, gfeder@

fdic.gov; Suzanne Dawley, Counsel, 

sudawley@fdic.gov; Francis Kuo, 

Counsel, fkuo@fdic.gov; Amanda Ledig, 

Attorney, aledig@fdic.gov; Supervision 

and Legislation Branch, Legal Division, 

Federal Deposit Insurance Corporation, 

550 17th Street NW, Washington, DC 

20429. For the hearing impaired only, 

Telecommunication Device for the Deaf 

(TDD), (800) 925–4618. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Background 

II. Discussion 

III. Request for Comment 

IV. Administrative Law Matters 

A. Administrative Procedure Act 

B. Congressional Review Act 

C. Paperwork Reduction Act 

D. Regulatory Flexibility Act 

E. Riegle Community Development and 

Regulatory Improvement Act of 1994 

F. Unfunded Mandates Reform Act of 1995 

G. Use of Plain Language 

I. Background 

On December 27, 2020, the 

Consolidated Appropriations Act, 

2021,1 was signed into law and added 

a new Section 104A to the Community 

Development Banking and Financial 

Institutions Act of 1994 (the Act). 

Section 104A of the Act authorizes the 

Secretary of the Treasury to establish 

the Emergency Capital Investment 

Program (ECIP or Program) through 

which the Department of the Treasury 

(Treasury) can make capital investments 

in certain low- and moderate-income 

community financial institutions. The 

Act states that the purpose of these 

capital investments is to support the 

efforts of low- and moderate-income 

community financial institutions to, 

among other things, provide loans, 

grants, and forbearance for small 

businesses, minority-owned businesses, 

and consumers in low-income and 

underserved communities, including 

persistent poverty counties, which may 

be disproportionately impacted by the 

economic effects of the Coronavirus 

2019 (COVID–19) event.2 Treasury’s 

authority to make capital investments 

under ECIP is time limited. The Program 

will end six months after the date on 

which the national emergency 

concerning the COVID–19 outbreak 

terminates.3

Under ECIP, a financial institution is 

generally eligible to receive capital 

investments from Treasury if it is a lowand moderate-income community 

financial institution, which is defined 

by the Act to include any financial 

institution that is (1) a community 

development financial institution or 

minority depository institution,4 and (2) 

an insured depository institution, bank 

holding company, savings and loan 

holding company, or federally insured 

credit union (collectively, eligible 

banking organizations). 

Under ECIP, Treasury can acquire 

senior preferred stock from eligible 

banking organizations (Senior Preferred 

Stock). Additionally, if the Secretary of 

the Treasury determines that an eligible 

banking organization cannot feasibly 

issue preferred stock, such as a bank 

organized as an S corporation 5 or 

mutual banking organization, Treasury 

can acquire subordinated debt 

instruments (Subordinated Debt) from 

such an eligible banking organization.6

Under the Act, Treasury is required to 

seek to establish the terms of preferred 

stock issued under ECIP to enable such 

instruments to qualify as tier 1 capital 

under the respective capital rule of the 

OCC, Board, and FDIC (together, the 

agencies).7

On March 4, 2021, Treasury 

published the terms of the Senior 


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15078 Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 

8The term sheets for the Senior Preferred Stock 

and Subordinated Debt may be found on Treasury’s 

website. For a complete description of the terms of 

the instruments, see https://home.treasury.gov/ 

policy-issues/cares/emergency-capital-investmentprogram. 

9Section 104A(h) of the Act. 

10See Emergency Capital Investment Program— 

Restrictions on Executive Compensation, Share 

Buybacks, and Dividends, https://

home.treasury.gov/system/files/136/ECIP-interimfinal-rule.pdf. 

11See 12 CFR 3.20 (OCC); 12 CFR 217.20 (Board); 

12 CFR 324.20 (FDIC). 

12Certain small bank holding companies and 

savings and loan holdings companies are subject to 

the Board’s Small Bank Holding Company and 

Savings and Loan Holding Company Policy 

Statement (12 CFR part 225, app. C) rather than the 

Board’s capital rule. The Policy Statement requires 

subject companies to maintain specified debt-toequity ratios and specifies how certain types of debt 

instruments and preferred stock instruments are to 

be included for purposes of the debt-to-equity 

ratios. For purposes of the Policy Statement, Senior 

Preferred Stock issued under ECIP is redeemable 

preferred stock, which is subject to certain 

limitations under the Policy Statement, and 

Subordinated Debt issued under ECIP is debt. 

13 5 U.S.C. 553. 

14 5 U.S.C. 553(b)(B). 

Preferred Stock and Subordinated Debt.8

As described in the terms published by 

Treasury, Senior Preferred Stock issued 

under ECIP will be noncumulative, 

perpetual preferred stock that is senior 

to the issuer’s common stock and pari 

passu with (or, in some cases, senior to) 

the issuer’s most senior class of existing 

preferred stock. Subordinated Debt 

issued under ECIP will be unsecured 

subordinated debt. The Subordinated 

Debt will rank junior to all other debt 

of the issuer except that it will rank 

senior to mutual capital certificates or 

similar instruments issued by a mutual 

banking organization and to any equity 

instruments issued by an S corporation. 

Under the terms of Senior Preferred 

Stock, participating eligible banking 

organizations will not be required to pay 

dividends until two years after issuance 

of the Senior Preferred Stock, and then 

will be subject to a noncumulative 

dividend with a rate not to exceed 2 

percent that may fluctuate based on 

certain lending growth criteria applied 

to the issuer. A participating eligible 

banking organization is prohibited from 

paying dividends under certain 

circumstances, including if the 

participating eligible banking 

organization determines that the 

payment would be detrimental to the 

financial health of the institution. Under 

the terms of the Subordinated Debt, 

interest payments on the Subordinated 

Debt would be subject to determinants 

and constraints similar to those 

described above, but the interest 

payments would be cumulative and 

deferrable. 

The Act requires Treasury to establish 

restrictions on executive compensation, 

share buybacks, and dividend payments 

for issuers of capital instruments issued 

under ECIP, as well as restrictions on 

conflicts of interest.9 The Act permits 

Treasury to establish other terms and 

conditions for participation in ECIP. On 

March 4, 2021, Treasury issued an 

interim final rule that established 

restrictions on executive compensation, 

capital distributions, and luxury 

expenditures for ECIP.10

II. Discussion 

The Senior Preferred Stock and 

Subordinated Debt will feature 

characteristics that are similar to those 

of instruments that qualify under the 

agencies’ capital rule as additional tier 

1 capital and tier 2 capital, respectively. 

As discussed above, the Act directs the 

Secretary of the Treasury to seek to 

establish the terms of the Senior 

Preferred Stock to enable these 

instruments to receive ‘‘Tier 1’’ capital 

treatment. Further, the establishment of 

ECIP and the capital investments being 

made thereunder help support the 

efforts of low- and moderate-income 

community financial institutions to 

provide financial intermediary services 

in low-income and underserved 

communities. To facilitate 

implementation of ECIP, the agencies 

are revising the capital rule to provide 

that the Senior Preferred Stock will 

qualify as additional tier 1 capital and 

Subordinated Debt will qualify as tier 2 

capital.11 12 These revisions are based on 

the terms and conditions of the Senior 

Preferred Stock and Subordinated Debt 

provided in the Senior Preferred Stock 

term sheet and the Subordinated Debt 

term sheet published by the U.S. 

Department of the Treasury on March 4, 

2021. If the terms and conditions for the 

Senior Preferred Stock or Subordinated 

Debt are modified in the future such 

that they differ materially from the 

terms and conditions provided in the 

term sheets, the agencies may reevaluate 

whether such capital treatment remains 

appropriate. 

In addition, the OCC is adding 

language to its licensing rule, which sets 

forth certain requirements applicable to 

subordinated debt issued by a national 

bank. Paragraph (d)(2) of section 5.47 

prohibits a national bank from including 

in a subordinated debt note any 

provision or covenant that unduly 

restricts or otherwise acts to unduly 

limit the authority of a national bank or 

interferes with the OCC’s supervision of 

the national bank. To facilitate the 

ability of a national bank to issue 

subordinated debt through ECIP, the 

OCC is adding new paragraph (j) to 

section 5.47. This new paragraph 

clarifies that provisions and covenants 

added to a subordinated debt document 

pursuant to requirements imposed by 

the Treasury Department for purposes of 

ECIP will not be considered, under 

paragraph (d)(2) of section 5.47, to 

unduly restrict or otherwise act to 

unduly limit the authority of a national 

bank or interfere with the OCC’s 

supervision of the national bank. 

III. Request for Comment 

The agencies seek comment on all 

aspects of this interim final rule. In 

particular, the agencies seek comment 

on the regulatory capital treatment of 

the Senior Preferred Stock and 

Subordinated Debt issued under ECIP 

and on the following specific question: 

Question: For banking organizations 

subject to the Board’s Small Bank 

Holding Company and Savings and 

Loan Holding Company Policy 

Statement, what are the advantages and 

disadvantages of including Senior 

Preferred Stock as equity and 

Subordinated Debt as debt for purposes 

of meeting the debt-to-equity ratio? 

What are the advantages and 

disadvantages of including Senior 

Preferred Stock subject to the limits 

described in the Policy Statement as 

redeemable preferred stock? What are 

the advantages and disadvantages of 

excluding Subordinated Debt from debt 

for purposes of the debt-to-equity ratio? 

IV. Administrative Law Matters 

A. Administrative Procedure Act 

The agencies are issuing the interim 

final rule without prior notice and the 

opportunity for public comment and the 

30-day delayed effective date ordinarily 

prescribed by the Administrative 

Procedure Act (APA).13 Pursuant to 

section 553(b)(B) of the APA, general 

notice and the opportunity for public 

comment are not required with respect 

to a rulemaking when an ‘‘agency for 

good cause finds (and incorporates the 

finding and a brief statement of reasons 

therefore in the rules issued) that notice 

and public procedure thereon are 

impracticable, unnecessary, or contrary 

to the public interest.’’ 14

As discussed above, the purpose of 

capital investments made under ECIP is 

to support the efforts of low- and 

moderate-income community financial 

institutions and the communities they 

serve, which may be disproportionately 

impacted by the economic effects of the 

COVID–19 event. The Act also requires 

Treasury to seek to establish the terms 

of senior preferred stock instruments 

issued under the Program such that 

these instruments would be considered 


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Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 15079 

15Public Law 116–260. 

16 5 U.S.C. 553(b)(B). 

17 5 U.S.C. 553(d). 

18 5 U.S.C. 553(d)(1). 

19 5 U.S.C. 801 et seq. 

20 5 U.S.C. 801(a)(3). 

21 5 U.S.C. 808. 

22 44 U.S.C. 3501–3521. 

23 5 U.S.C. 601 et seq. 

24Under regulations issued by the Small Business 

Administration, a small entity includes a depository 

institution, bank holding company, or savings and 

loan holding company with total assets of $600 

million or less and trust companies with total assets 

of $41.5 million or less. See 13 CFR 121.201. 

25 12 U.S.C. 4802(a). 

26 12 U.S.C. 4802. 

27 2 U.S.C. 1532. 

additional tier 1 capital under the 

agencies’ capital rule. 

The agencies believe that the public 

interest is best served by implementing 

the interim final rule immediately upon 

publication in the Federal Register. The 

interim final rule will facilitate 

implementation of ECIP by providing 

certainty that the Senior Preferred Stock 

may be included in additional tier 1 

capital and Subordinated Debt may be 

included in tier 2 capital under the 

capital rule. As noted above, Treasury’s 

authority to make new capital 

investments in ECIP will end six 

months after the date on which the 

national emergency concerning the 

COVID–19 outbreak declared by the 

President on March 13, 2020, under the 

National Emergencies Act terminates.15

For these reasons, the agencies find that 

there is good cause consistent with the 

public interest to issue the rule without 

advance notice and comment.16

The APA also requires a 30-day 

delayed effective date, except for (1) 

substantive rules that grant or recognize 

an exemption or relieve a restriction; (2) 

interpretative rules and statements of 

policy; or (3) as otherwise provided by 

the agency for good cause.17 Because the 

interim final rule relieves a restriction, 

the interim final rule is exempt from the 

APA’s delayed effective date 

requirement.18

In addition, the agencies find good 

cause to publish the interim final rule 

with an immediate effective date for the 

same reasons set forth above under the 

discussion of section 553(b)(B) of the 

APA. While the agencies believe that 

there is good cause to issue the interim 

final rule without advance notice and 

comment and with an immediate 

effective date, as noted, the agencies are 

interested in the views of the public on 

all aspects of the interim final rule. 

B. Congressional Review Act 

For purposes of Congressional Review 

Act (CRA), the Office of Management 

and Budget (OMB) makes a 

determination as to whether a final rule 

constitutes a ‘‘major’’ rule.19 If a rule is 

deemed a ‘‘major rule’’ by the OMB, the 

CRA generally provides that the rule 

may not take effect until at least 60 days 

following its publication.20

The CRA defines a ‘‘major rule’’ as 

any rule that the Administrator of the 

Office of Information and Regulatory 

Affairs of the OMB finds has resulted in 

or is likely to result in (A) an annual 

effect on the economy of $100,000,000 

or more; (B) a major increase in costs or 

prices for consumers, individual 

industries, Federal, State, or local 

government agencies or geographic 

regions; or (C) significant adverse effects 

on competition, employment, 

investment, productivity, innovation, or 

on the ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

export markets. 

For the same reasons set forth above, 

the agencies are adopting the interim 

final rule without the delayed effective 

date generally prescribed under the 

CRA. The delayed effective date 

required by the CRA does not apply to 

any rule for which an agency for good 

cause finds (and incorporates the 

finding and a brief statement of reasons 

therefor in the rule issued) that notice 

and public procedure thereon are 

impracticable, unnecessary, or contrary 

to the public interest.21

As required by the CRA, the agencies 

will submit the interim final rule and 

other appropriate reports to Congress 

and the Government Accountability 

Office for review. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(PRA) states that no agency may 

conduct or sponsor, nor is the 

respondent required to respond to, an 

information collection unless it displays 

a currently valid OMB control 

number.22 The agencies have reviewed 

this interim final rule and have 

determined that this interim final rule 

does not introduce any new information 

collections or revise any existing 

information collections pursuant to the 

PRA for the agencies. In addition, the 

Board has reviewed this interim final 

rule pursuant to authority delegated by 

OMB. Therefore, no submissions will be 

made by the agencies to OMB for 

review. 

D. Regulatory Flexibility Act 

The Regulatory Flexibility Act 

(RFA) 23 requires an agency to consider 

whether the rules it proposes will have 

a significant economic impact on a 

substantial number of small entities.24

The RFA applies only to rules for which 

an agency publishes a general notice of 

proposed rulemaking pursuant to 5 

U.S.C. 553(b). As discussed previously, 

consistent with section 553(b)(B) of the 

APA, the agencies have determined for 

good cause that general notice and 

opportunity for public comment is 

unnecessary, and therefore the agencies 

are not issuing a notice of proposed 

rulemaking. Accordingly, the agencies 

have concluded that the RFA’s 

requirements relating to initial and final 

regulatory flexibility analysis do not 

apply. 

Nevertheless, the agencies seek 

comment on whether, and the extent to 

which, the interim final rule would 

affect a significant number of small 

entities. 

E. Riegle Community Development and 

Regulatory Improvement Act of 1994 

Section 302(a) of the Riegle 

Community Development and 

Regulatory Improvement Act of 1994 

(RCDRIA) 25 requires that each federal 

banking agency, in determining the 

effective date and administrative 

compliance requirements for new 

regulations that impose additional 

reporting, disclosure, or other 

requirements on insured depository 

institutions, each federal banking 

agency must consider, consistent with 

principles of safety and soundness and 

the public interest, any administrative 

burdens that regulations would place on 

depository institutions, including small 

depository institutions, and customers 

of depository institutions, as well as the 

benefits of such regulations. 

In addition, section 302(b) of RCDRIA 

requires new regulations and 

amendments to regulations that impose 

additional reporting, disclosures, or 

other new requirements on insured 

depository institutions generally to take 

effect on the first day of a calendar 

quarter that begins on or after the date 

on which the regulations are published 

in final form.26 The agencies have 

determined that the final rule would not 

impose additional reporting, disclosure, 

or other requirements; therefore, the 

requirements of the RCDRIA do not 

apply. 

F. Unfunded Mandates Reform Act of 

1995 

The OCC analyzes proposed rules for 

the factors listed in Section 202 of the 

Unfunded Mandates Reform Act of 1995 

before promulgating a final rule for 

which a general notice of proposed 

rulemaking was published.27 As 


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15080 Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 

28Public Law 106–102, 113 Stat. 1338, 1471, 12 

U.S.C. 4809. 

6Public Law 116–260. 

12Public Law 116–260. 

discussed above, the OCC has 

determined that publication of a general 

notice of proposed rulemaking is not in 

the public interest. 

G. Use of Plain Language 

Section 722 of the Gramm-LeachBliley Act 28 requires the Federal 

banking agencies to use plain language 

in all proposed and final rules 

published after January 1, 2000. In light 

of this requirement, the agencies have 

sought to present the interim final rule 

in a simple and straightforward manner 

and invite comment on the use of plain 

language. For example: 

• Is the material organized to suit 

your needs? If not, how could the 

agencies present the interim final rule 

more clearly? 

• Are the requirements in the interim 

final rule clearly stated? If not, how 

could the interim final rule be more 

clearly stated? 

• Does the interim final rule contain 

technical language or jargon that is not 

clear? If so, which language requires 

clarification? 

• Would a different format (grouping 

and order of sections, use of headings, 

paragraphing) make the interim final 

rule easier to understand? If so, what 

changes would achieve that? 

• Is this section format adequate? If 

not, which of the sections should be 

changed and how? 

• What other changes can the 

agencies incorporate to make the 

interim final rule easier to understand? 

List of Subjects 

12 CFR Part 3 

Administrative practice and 

procedure, Capital, National banks, 

Risk. 

12 CFR Part 5 

Administrative practice and 

procedure, Federal savings associations, 

National banks, Reporting and 

recordkeeping requirements, Securities. 

12 CFR Part 217 

Administrative practice and 

procedure, Banks, Banking, Capital, 

Federal Reserve System, Holding 

companies. 

12 CFR Part 324 

Administrative practice and 

procedure, Banks, Banking, Confidential 

business information, Investments, 

Reporting and recordkeeping 

requirements, Savings associations. 

Department of the Treasury 

Office of the Comptroller of the 

Currency 

Authority and Issuance 

For the reasons stated in the joint 

preamble, the Office of the Comptroller 

of the Currency amends chapter I of 

Title 12 of the Code of Federal 

Regulations as follows: 

PART 3—CAPITAL ADEQUACY 

STANDARDS 

■ 1. The authority citation for part 3 

continues to read as follows: 

Authority: 12 U.S.C. 93a, 161, 1462, 

1462a, 1463, 1464, 1818, 1828(n), 1828 note, 

1831n note, 1835, 3907, 3909, 5412(b)(2)(B), 

and Pub. L. 116–136, 134 Stat. 281. 

■ 2. Section 3.20 is amended by: 

■ a. Redesignating footnotes 11 through 

15 as footnotes 1 through 5, footnote 16 

as footnote 7, and footnotes 17 through 

20 as footnotes 8 through 11, 

respectively; 

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

paragraph (c)(3)(i); 

■ c. Adding paragraph (c)(3)(ii); 

■ d. Redesignating paragraph (d)(4) as 

paragraph (d)(4)(i); and 

■ e. Adding paragraph (d)(4)(ii). 

The additions and revisions read as 

follows: 

§ 3.20 Capital components and eligibility 

criteria for regulatory capital instruments. 

* * * * * 

(c) * * * 

(3) * * * 

(ii) Any preferred stock instruments 

issued under the U.S. Department of the 

Treasury’s Emergency Capital 

Investment Program pursuant to section 

104A of the Community Development 

Banking and Financial Institutions Act 

of 1994, added by the Consolidated 

Appropriations Act, 2021.6

* * * * * 

(d) * * * 

(4) * * * 

(ii) Any debt instruments issued 

under the U.S. Department of the 

Treasury’s Emergency Capital 

Investment Program pursuant to section 

104A of the Community Development 

Banking and Financial Institutions Act 

of 1994, added by the Consolidated 

Appropriations Act, 2021.12

* * * * * 

PART 5—RULES, POLICIES, AND 

PROCEDURES FOR CORPORATE 

ACTIVITIES 

■ 3. The authority citation for part 5 

continues to read as follows: 

Authority: 12 U.S.C. 1 et seq., 24a, 35, 93a, 

214a, 215, 215a, 215a–1, 215a–2, 215a–3, 

215c, 371d, 481, 1462a, 1463, 1464, 1817(j), 

1831i, 1831u, 2901 et seq., 3101 et seq., 3907, 

and 5412(b)(2)(B). 

■ 4. Section 5.47 is amended by adding 

paragraph (j): 

§ 5.47 Subordinated debt issued by a 

national bank. 

* * * * * 

(j) Subordinated debt issued under the 

Emergency Capital Investment Program. 

A provision or covenant included in a 

subordinated debt document does not 

unduly restrict or otherwise act to 

unduly limit the authority of a national 

bank or interfere with the OCC’s 

supervision of the national bank, for 

purposes of paragraph (d)(2) of this 

section, if the provision or covenant is 

included pursuant to requirements 

imposed by the U.S. Department of the 

Treasury and the subordinated debt is 

issued under the U.S. Department of the 

Treasury’s Emergency Capital 

Investment Program pursuant to section 

104A of the Community Development 

Banking and Financial Institutions Act 

of 1994, added by the Consolidated 

Appropriations Act, 2021. 

Board of Governors of the Federal 

Reserve System 

12 CFR Chapter II 

Authority and Issuance 

For the reasons stated in the 

preamble, the Board of Governors of the 

Federal Reserve System amends 12 CFR 

chapter II as follows: 

PART 217—CAPITAL ADEQUACY OF 

BANK HOLDING COMPANIES, 

SAVINGS AND LOAN HOLDING 

COMPANIES, AND STATE MEMBER 

BANKS (REGULATION Q) 

■ 5. The authority citation for part 217 

continues to read as follows: 

Authority: 12 U.S.C. 248(a), 321–338a, 

481–486, 1462a, 1467a, 1818, 1828, 1831n, 

1831o, 1831p–1, 1831w, 1835, 1844(b), 1851, 

3904, 3906–3909, 4808, 5365, 5368, 5371, 

5371 note, and sec. 4012, Pub. L. 116–136, 

134 Stat. 281. 

■ 6. Section 217.20 is amended by: 

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

paragraph (c)(3)(i); 

■ b. Adding paragraph (c)(3)(ii); 

■ c. Redesignating paragraph (d)(4) as 

paragraph (d)(4)(i); and 

■ d. Adding paragraph (d)(4)(ii). 

The additions and revisions read as 

follows: 

§ 217.20 Capital components and eligibility 

criteria for regulatory capital instruments. 

* * * * * 

(c) * * * 


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Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 15081 

16Public Law 116–260. 

21Public Law 116–260. 

17Public Law 116–260. 

23Public Law 116–260. 

(3) * * * 

(ii) Any preferred stock instrument 

issued under the U.S. Department of the 

Treasury’s Emergency Capital 

Investment Program pursuant to section 

104A of the Community Development 

Banking and Financial Institutions Act 

of 1994, added by the Consolidated 

Appropriations Act, 2021.16

* * * * * 

(d) * * * 

(4) * * * 

(ii) Any debt instrument issued under 

the U.S. Department of the Treasury’s 

Emergency Capital Investment Program 

pursuant to section 104A of the 

Community Development Banking and 

Financial Institutions Act of 1994, 

added by the Consolidated 

Appropriations Act, 2021.21

* * * * * 

Federal Deposit Insurance Corporation 

12 CFR Chapter III 

Authority and Issuance 

For the reasons stated in the 

preamble, the Federal Deposit Insurance 

Corporation amends chapter III of Title 

12 of the Code of Federal Regulations as 

follows: 

PART 324—CAPITAL ADEQUACY OF 

FDIC–SUPERVISED INSTITUTIONS 

■ 7. The authority citation for part 324 

continues to read as follows: 

Authority: 12 U.S.C. 1815(a), 1815(b), 

1816, 1818(a), 1818(b), 1818(c), 1818(t), 

1819(Tenth), 1828(c), 1828(d), 1828(i), 

1828(n), 1828(o), 1831o, 1835, 3907, 3909, 

4808; 5371; 5412; Pub. L. 102–233, 105 Stat. 

1761, 1789, 1790 (12 U.S.C. 1831n note); Pub. 

L. 102–242, 105 Stat. 2236, 2355, as amended 

by Pub. L. 103–325, 108 Stat. 2160, 2233 (12 

U.S.C. 1828 note); Pub. L. 102–242, 105 Stat. 

2236, 2386, as amended by Pub. L. 102–550, 

106 Stat. 3672, 4089 (12 U.S.C. 1828 note); 

Pub. L. 111–203, 124 Stat. 1376, 1887 (15 

U.S.C. 78o–7 note); Pub. L. 115–174; section 

4014 § 201, Pub. L. 116–136, 134 Stat. 281 

(15 U.S.C. 9052). 

■ 8. Amend § 324.20 by: 

■ a. Redesignating footnotes 17 through 

21 as footnotes 18 through 22; 

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

paragraph (c)(3)(i); 

■ c. Adding paragraph (c)(3)(ii); 

■ d. Redesignating paragraph (d)(4) as 

paragraph (d)(4)(i); and 

■ e. Adding paragraph (d)(4)(ii). 

The additions and revisions read as 

follows: 

§ 324.20 Capital components and eligibility 

criteria for regulatory capital instruments. 

* * * * * 

(c) * * * 

(3) * * * 

(ii) Any preferred stock instruments 

issued under the U.S. Department of the 

Treasury’s Emergency Capital 

Investment Program pursuant to section 

104A of the Community Development 

Banking and Financial Institutions Act 

of 1994, added by the Consolidated 

Appropriations Act, 2021.17

* * * * * 

(d) * * * 

(4) * * * 

(ii) Any debt instruments issued 

under the U.S. Department of the 

Treasury’s Emergency Capital 

Investment Program pursuant to section 

104A of the Community Development 

Banking and Financial Institutions Act 

of 1994, added by the Consolidated 

Appropriations Act, 2021.23

* * * * * 

Blake J. Paulson, 

Acting Comptroller of the Currency. 

By order of the Board of Governors of the 

Federal Reserve System. 

Ann Misback, 

Secretary of the Board. 

Federal Deposit Insurance Corporation. 

By order of the Board of Directors. 

Dated at Washington, DC, on or about 

March 5, 2021. 

James P. Sheesley, 

Assistant Executive Secretary. 

[FR Doc. 2021–05443 Filed 3–19–21; 8:45 am] 

BILLING CODE 4810–33–P; 6714–01–P; 6210–01–P 

FARM CREDIT ADMINISTRATION 

12 CFR Part 627 

RIN 3052–AD46 

Title IV Conservators and Receivers 

AGENCY: Farm Credit Administration. 

ACTION: Direct final rule. 

SUMMARY: The Farm Credit 

Administration (FCA, we, or our) issues 

this direct final rule to repeal certain 

regulations in part 627 that have been 

superseded by section 5412 of the 

Agricultural Improvement Act of 2018 

(2018 Farm Bill), which strengthens, 

clarifies, and updates the authorities of 

the Farm Credit System Insurance 

Corporation (FSCIC or Insurance 

Corporation) to act as a conservator or 

receiver of a Farm Credit System (FCS 

or System) institution. 

DATES: If no significant adverse 

comment is received on or before April 

21, 2021, this regulation shall become 

effective no earlier than the expiration 

of 30 days after publication in the 

Federal Register during which either or 

both Houses of Congress are in session. 

Pursuant to 12 U.S.C. 2252(c)(1), FCA 

will publish notification of the effective 

date in the Federal Register. 

ADDRESSES: For accuracy and efficiency 

reasons, please submit comments by 

email or through FCA’s website. We do 

not accept comments submitted by 

facsimiles (fax), as faxes are difficult for 

us to process and achieve compliance 

with section 508 of the Rehabilitation 

Act of 1973. Please do not submit your 

comment multiple times via different 

methods. You may submit comments by 

any of the following methods: 

• Email: Send us an email at regcomm@fca.gov. 

• FCA Website: http://www.fca.gov. 

Click inside the ‘‘I want to. . .’’ field 

near the top of the page; select 

‘‘comment on a pending regulation’’ 

from the dropdown menu; and click 

‘‘Go.’’ This takes you to an electronic 

public comment form. 

• Mail: Kevin J. Kramp, Director, 

Office of Regulatory Policy, Farm Credit 

Administration, 1501 Farm Credit Drive, 

McLean, VA 22102–5090. 

You may review copies of comments 

we receive on our website at http://

www.fca.gov. Once you are on the 

website, click inside the ‘‘I want to 

. . .’’ field near the top of the page; 

select ‘‘find comments on a pending 

regulation’’ from the dropdown menu; 

and click ‘‘Go.’’ This will take you to the 

Comment Letters page where you can 

select the regulation for which you 

would like to read the 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. You may 

also review comments at our office in 

McLean, Virginia. Please call us at (703) 

883–4056 or email us at reg-comm@

fca.gov to make an appointment. 

FOR FURTHER INFORMATION CONTACT:

Technical information: Ryan Leist, 

LeistR@fca.gov, Senior Accountant, or 

Jeremy R. Edelstein, EdelsteinJ@fca.gov, 

Associate Director, Finance and Capital 

Markets Team, Office of Regulatory 

Policy, Farm Credit Administration, 

McLean, VA 22102–5090, (703) 883– 

4414, TTY (703) 883–4056 or 

ORPMailbox@fca.gov; or 

Legal information: Richard Katz, 

KatzR@fca.gov, Senior Counsel, Office 


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