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

26835 

Vol. 85, No. 88 

Wednesday, May 6, 2020 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Part 50 

[Docket No. OCC–2020–0019] 

RIN 1557–AE92 

FEDERAL RESERVE SYSTEM 

12 CFR Part 249 

[Regulations WW; Docket No. R–1717] 

RIN 7100–AF90 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 329 

RIN 3064–AF51 

Liquidity Coverage Ratio Rule: 

Treatment of Certain Emergency 

Facilities 

AGENCY: Office of the Comptroller of the 

Currency (OCC), Board of Governors of 

the Federal Reserve System (Board), and 

Federal Deposit Insurance Corporation 

(FDIC). 

ACTION: Interim final rule; request for 

comment. 

SUMMARY: To provide liquidity to the 

money market sector, small business 

lenders, and the broader credit markets 

in order to stabilize the financial 

system, the Board of Governors of the 

Federal Reserve System (Board) 

authorized the establishment of the 

Money Market Mutual Fund Liquidity 

Facility (MMLF) and the Paycheck 

Protection Program Liquidity Facility 

(PPPLF), pursuant to section 13(3) of the 

Federal Reserve Act. To facilitate use of 

these Federal Reserve facilities, and to 

ensure that the effects of their use are 

consistent and predictable under the 

Liquidity Coverage Ratio (LCR) rule, the 

Office of the Comptroller of the 

Currency, the Board, and the Federal 

Deposit Insurance Corporation (together, 

the agencies) are adopting this interim 

final rule to require banking 

organizations to neutralize the effect 

under the LCR rule of participating in 

the MMLF and the PPPLF. 

DATES: The interim final rule is effective 

May 6, 2020. Comments on the interim 

final rule must be received no later than 

June 5, 2020. 

ADDRESSES: 

OCC: Commenters are encouraged to 

submit comments through the Federal 

eRulemaking Portal or email, if possible. 

Please use the title ‘‘Liquidity Coverage 

Ratio Rule: Treatment of Emergency 

FRB Secured Lending Facilities’’ to 

facilitate the organization and 

distribution of the comments. You may 

submit comments by any of the 

following methods: 

• Federal eRulemaking Portal— 

Regulations.gov Classic or 

Regulations.gov Beta: Regulations.gov 

Classic: Go to https://

www.regulations.gov/. Enter ‘‘Docket ID 

OCC–2020–0019’’ in the Search Box and 

click ‘‘Search.’’ Click on ‘‘Comment 

Now’’ to submit public comments. For 

help with submitting effective 

comments please click on ‘‘View 

Commenter’s Checklist.’’ Click on the 

‘‘Help’’ tab on the Regulations.gov home 

page to get information on using 

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for submitting public comments. 

Regulations.gov Beta: Go to https://

beta.regulations.gov/ or click ‘‘Visit 

New Regulations.gov Site’’ from the 

Regulations.gov Classic homepage. 

Enter ‘‘Docket ID OCC–2020–0019’’ 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 topleft side of the screen. For help with 

submitting effective comments please 

click on ‘‘Commenter’s Checklist.’’ For 

assistance with the Regulations.gov Beta 

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. 

• Email: regs.comments@

occ.treas.gov. 

• Mail: Chief Counsel’s Office, 

Attention: 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. 

• Fax: (571) 465–4326. 

Instructions: You must include 

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

ID OCC–2020–0019’’ 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 

rulemaking action by any of the 

following methods: 

• Viewing Comments Electronically— 

Regulations.gov Classic or 

Regulations.gov Beta: Regulations.gov 

Classic: Go to https://

www.regulations.gov/. Enter ‘‘Docket ID 

OCC–2020–0019’’ in the Search box and 

click ‘‘Search.’’ Click on ‘‘Open Docket 

Folder’’ on the right side of the screen. 

Comments and supporting materials can 

be viewed and filtered by clicking on 

‘‘View all documents and comments in 

this docket’’ and then using the filtering 

tools on the left side of the screen. Click 

on the ‘‘Help’’ tab on the 

Regulations.gov home page to get 

information on using Regulations.gov. 

The docket may be viewed after the 

close of the comment period in the same 

manner as during the comment period. 

Regulations.gov Beta: Go to https://

beta.regulations.gov/ or click ‘‘Visit 

New Regulations.gov Site’’ from the 

Regulations.gov Classic homepage. 

Enter ‘‘Docket ID OCC–2020–0019’’ in 

the Search Box and click ‘‘Search.’’ 

Click on the ‘‘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 

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clicking on the ‘‘Sort By’’ drop-down on 

the right side of the screen or the 

26836 Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations 

1 12 U.S.C. 343(3). 

2The applicability of the LCR rule is described in 

§ __.1 of the rule. See 12 CFR 50.1 (OCC); 12 CFR 

249.1 (Board); and 12 CFR 329.1 (FDIC). 

‘‘Refine Results’’ options on the left side 

of the screen.’’ For assistance with the 

Regulations.gov Beta 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–1717; RIN 

7100–AF90, by any of the following 

methods: 

• Agency website: http://

www.federalreserve.gov. Follow the 

instructions for submitting comments at 

http://www.federalreserve.gov/ 

generalinfo/foia/ProposedRegs.cfm. 

• Email: regs.comments@

federalreserve.gov. Include docket and 

RIN numbers 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 will be made 

available on the Board’s website at 

http://www.federalreserve.gov/ 

generalinfo/foia/ProposedRegs.cfm as 

submitted, unless modified for technical 

reasons or to remove personally 

identifiable information at the 

commenter’s request. Accordingly, 

comments will not be edited to remove 

any identifying or contact information. 

For security reasons, the Board requires 

that visitors make an appointment to 

inspect comments. You may do so by 

calling (202) 452–3684. 

FDIC: You may submit comments, 

identified by RIN 3064–AF51, by any of 

the following methods: 

• Agency website: https://

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

Follow instructions for submitting 

comments on the Agency website. 

• Email: Comments@FDIC.gov. 

Include ‘‘RIN 3064–AF51’’ on the 

subject line of the message. 

• Mail: Robert E. Feldman, Executive 

Secretary, Attention: Comments/RIN 

3064–AF51, Federal Deposit Insurance 

Corporation, 550 17th Street NW, 

Washington, DC 20429. 

• Hand Delivered/Courier: 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 7:00 a.m. and 

5:00 p.m. 

FOR FURTHER INFORMATION CONTACT: 

OCC: James Weinberger, Technical 

Expert, Treasury & Market Risk Policy, 

(202) 649–6360; or Henry Barkhausen, 

Counsel, or Daniel Perez, Senior 

Attorney, Chief Counsel’s Office, (202) 

649–5490, for persons who are deaf or 

hearing impaired, TTY, (202) 649–5597, 

Office of the Comptroller of the 

Currency, 400 7th Street SW, 

Washington, DC 20219. 

Board: Anna Lee Hewko, Associate 

Director, (202) 530–6360, Constance 

Horsley, Deputy Associate Director, 

(202) 452–5239, Kathryn Ballintine, 

Manager, (202) 452–2555, Kevin Littler, 

Lead Financial Institution Policy 

Analyst, (202) 475–6677, Cecily Boggs, 

Senior Financial Institution Policy 

Analyst II, (202) 530–6209, Michael 

Ofori-Kuragu, Senior Financial 

Institution Policy Analyst II, (202) 475– 

6623, or Christopher Powell, Senior 

Financial Institution Policy Analyst II, 

(202) 452–3442, Division of Supervision 

and Regulation; Benjamin McDonough, 

Assistant General Counsel, (202) 452– 

2036, Steve Bowne, Senior Counsel, 

(202) 452–3900, Jason Shafer, Senior 

Counsel, (202) 728–5811, Laura Bain, 

Counsel, (202) 736–5546, or Jeffery 

Zhang, Attorney, (202) 736–1968, Legal 

Division, Board of Governors of the 

Federal Reserve System, 20th Street and 

Constitution Avenue NW, Washington, 

DC 20551. Users of Telecommunication 

Device for Deaf (TDD) only, call (202) 

263–4869. 

FDIC: Bobby R. Bean, Associate 

Director, bbean@fdic.gov; Irina Leonova, 

Acting Chief, Capital Markets Strategies 

Section, ileonova@FDIC.gov; Eric 

Schatten, Senior Policy Analyst, 

eschatten@fdic.gov; Andrew 

Carayiannis, Senior Policy Analyst, 

acarayiannis@fdic.gov; capitalmarkets@

fdic.gov; Capital Markets Branch, 

Division of Risk Management 

Supervision, (202) 898–6888; or 

Suzanne Dawley, Counsel, sudawley@

fdic.gov; Gregory Feder, Counsel, 

gfeder@fdic.gov; Andrew B. Williams II, 

Counsel, andwilliams@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. The Interim Final Rule 

III. 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. Use of Plain Language 

G. OCC Unfunded Mandates Reform Act of 

1995 Determination 

I. Background 

The containment measures adopted in 

response to the public health concerns 

have slowed economic activity in many 

countries, including the United States. 

Financial conditions have tightened 

markedly, sudden disruptions in 

financial markets have put increasing 

liquidity pressure on money market 

mutual funds, and the cost of credit has 

risen for most borrowers. Given these 

liquidity pressures, money market 

mutual funds have been faced with 

redemption requests from clients with 

immediate cash needs and may need to 

sell a significant number of assets to 

meet such requests, which could further 

increase market pressures. Small 

businesses also are facing severe 

liquidity constraints, as millions of 

Americans have been ordered to stay 

home, severely reducing their ability to 

engage in normal commerce, and 

revenue streams for many small 

businesses have collapsed. This has 

forced many small businesses to close 

temporarily or furlough employees. 

Continued access to financing will be 

crucial for small businesses to weather 

economic disruptions caused by the 

containment measures adopted in 

response to the public health concerns 

and, ultimately, to help restore 

economic activity. 

In order to prevent the disruption in 

the money markets from destabilizing 

the financial system, the Board of 

Governors of the Federal Reserve 

System (Board), with the approval of the 

Secretary of the Treasury, authorized 

the Federal Reserve Bank of Boston to 

establish the Money Market Mutual 

Fund Liquidity Facility (MMLF), 

pursuant to section 13(3) of the Federal 

Reserve Act.1 Under the MMLF, the 

Federal Reserve Bank of Boston extends 

non-recourse loans to eligible borrowers 

to purchase assets from money market 

mutual funds (MMFs). Assets purchased 

from MMFs are posted as collateral to 

the Federal Reserve Bank of Boston 

(MMLF collateral). Eligible borrowers 

under the MMLF include certain 

banking organizations subject to the 

Liquidity Coverage Ratio (LCR) rule 

(covered companies) issued by the 

Office of the Comptroller of the 

Currency (OCC), the Board, and the 

Federal Deposit Insurance Corporation 

(FDIC) (together, the agencies).2 MMLF 

collateral generally comprises securities 

Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations 26837 

3 12 U.S.C. 343(3). 

4Congress created the PPP as part of the 

Coronavirus Aid, Relief, and Economic Security Act 

(CARES Act) and in recognition of the exigent 

circumstances faced by small businesses. PPP 

covered loans are fully guaranteed as to principal 

and accrued interest by the Small Business 

Administration (SBA) and also afford borrower 

forgiveness up to the principal amount of the PPP 

covered loan, if the proceeds of the PPP covered 

loan are used for certain expenses. Under the PPP, 

eligible borrowers generally include businesses 

with fewer than 500 employees or that are 

otherwise considered to be small by the SBA. The 

SBA reimburses PPP lenders for any amount of a 

PPP covered loan that is forgiven. PPP lenders are 

not held liable for any representations made by PPP 

borrowers in connection with a borrower’s request 

for PPP covered loan forgiveness. For more 

information on the Paycheck Protection Program, 

see https://www.sba.gov/funding-programs/loans/ 

coronavirus-relief-options/paycheck-protectionprogram-ppp. 

5The maturity date of the PPPLF’s loan will be 

accelerated if the underlying PPP loan goes into 

default and the eligible borrower sells the PPP Loan 

to the Small Business Administration (SBA) to 

realize the SBA guarantee. The maturity date of the 

PPPLF’s loan also will be accelerated to the extent 

of any PPP loan forgiveness reimbursement 

received by the eligible borrower from the SBA. 

6Section __.30 of the LCR rule also requires a 

covered company, as applicable, to include in its 

total net cash outflow amount a maturity mismatch 

add-on, which is calculated as the difference (if 

greater than zero) between the covered company’s 

largest net cumulative maturity outflow amount for 

any of the 30 calendar days following the 

calculation date and the net day 30 cumulative 

maturity outflow amount. See 12 CFR 50.30 (OCC); 

12 CFR 249.30 (Board); and 12 CFR 329.30 (FDIC). 

7See 12 CFR 50.32(j)(1)(i)–(iii) (OCC); 12 CFR 

249.32(j)(1)(i)–(iii) (Board); and 12 CFR 

329.32(j)(1)(i)–(iii) (FDIC). 

8See 12 CFR 50.33 (OCC); 12 CFR 249.33 (Board); 

and 12 CFR 329.33 (FDIC). 

and other assets with the same maturity 

date as the MMLF non-recourse loan. 

In order to provide liquidity to small 

business lenders and the broader credit 

markets, and to help stabilize the 

financial system, the Board, with the 

approval of the Secretary of the 

Treasury, authorized each of the Federal 

Reserve Banks to extend credit under 

the Paycheck Protection Program 

Liquidity Facility (PPPLF), pursuant to 

section 13(3) of the Federal Reserve 

Act.3 Under the PPPLF, each of the 

Federal Reserve Banks extends nonrecourse loans to institutions that are 

eligible to make Paycheck Protection 

Program (PPP) covered loans,4 including 

depository institutions subject to the 

agencies’ LCR rule. Under the PPPLF, 

only PPP covered loans that are 

guaranteed by the SBA under the PPP 

with respect to both principal and 

interest and that are originated by an 

eligible institution may be pledged as 

collateral to the Federal Reserve Banks 

(PPPLF collateral). The maturity date of 

the extension of credit under the PPPLF 

equals the maturity date of the PPP 

loans pledged to secure the extension of 

credit.5

To facilitate the use of the MMLF and 

PPPLF, the agencies are adopting this 

interim final rule, which requires 

covered companies to neutralize the 

LCR effects of the advances made by 

each facility and the exposures securing 

such facility advances. 

II. The Interim Final Rule 

A. LCR Treatment of MMLF and PPPLF 

Funding 

The agencies’ LCR rule requires 

covered companies to calculate and 

maintain an amount of high-quality 

liquid assets (HQLA) sufficient to cover 

their total net cash outflows over a 30- 

day stress period. A covered company’s 

LCR is the ratio of its HQLA amount 

(LCR numerator) divided by its total net 

cash outflows (LCR denominator). The 

total net cash outflow amount is 

calculated as the difference between 

outflow and inflow amounts, which are 

determined by applying a standardized 

set of outflow and inflow rates to the 

cash flows of various assets and 

liabilities, together with off-balance 

sheet items, as specified in §§ __.32 and 

__.33 of the LCR rule.6

Absent the interim final rule, under 

the LCR rule, covered companies would 

be required to recognize outflows for 

MMLF and PPPLF loans with a 

remaining maturity of 30 days or less 

and inflows for certain assets securing 

the MMLF and PPPLF loans. As a result, 

a covered company’s participation in 

the MMLF or PPPLF could affect its 

total net cash outflows, which could 

potentially result in an inconsistent, 

unpredictable, and more volatile 

calculation of LCR requirements across 

covered companies. 

Under the LCR rule, secured loans 

from a Federal Reserve facility with a 

remaining maturity of 30 calendar days 

or less are categorized as secured 

funding transactions with a sovereign 

entity and assigned an outflow rate that 

varies based on the collateral securing 

the loan.7 In addition, the LCR rule 

assigns inflow rates to collateral 

generally based on the asset and 

counterparty type.8 As a result of the 

applicable inflow and outflow rates in 

the LCR rule, MMLF and PPPLF 

transactions could receive a non-neutral 

liquidity risk treatment. Moreover, after 

these loans are extended and upon their 

maturity, the associated inflows and 

outflows could unnecessarily contribute 

to volatility in LCRs. 

Under the terms of the MMLF and 

PPPLF, covered companies use the 

value of cash received from posted or 

pledged assets to repay the MMLF or 

PPPLF loan, respectively, and in no case 

is the maturity of the collateral shorter 

than the maturity of the advance. In 

addition, because the advance from the 

Federal Reserve Bank is non-recourse, 

the banking organization is not exposed 

to credit or market risk from the 

collateral securing the MMLF or PPPLF 

loan that could otherwise affect the 

banking organization’s ability to settle 

the loan. For these reasons, the agencies 

believe that it is appropriate to provide 

predictable and consistent treatment for 

participation in the MMLF and PPPLF 

by neutralizing the effects of 

participation in the MMLF and the 

PPPLF on covered companies’ LCRs. 

Absent this interim final rule, the 

agencies believe that the treatment of 

covered companies’ transactions with 

the MMLF and PPPLF under the LCR 

rule would not be consistent across 

transactions or facilities and would not 

accurately reflect the liquidity risk 

associated with funding exposures 

through these facilities. 

Specifically, the interim final rule 

adds a new definition to § __.3 and a 

new § __.34 to the LCR rule. In § __.3, 

the new definition ‘‘Covered Federal 

Reserve Facility Funding’’ means a nonrecourse loan that is extended as part of 

the Money Market Mutual Fund 

Liquidity Facility or Paycheck 

Protection Program Liquidity Facility 

authorized by the Board of Governors of 

the Federal Reserve System pursuant to 

section 13(3) of the Federal Reserve Act. 

The new § __.34 requires Covered 

Federal Reserve Facility Funding and 

the assets securing such funding to be 

excluded from the calculation of a 

covered company’s total net cash 

outflow amount as calculated under 

§ __.30 of the LCR rule, notwithstanding 

any other section of the LCR rule. 

Except as described below, this new 

section excludes advances made by a 

Federal Reserve Bank under the MMLF 

or the PPPLF from being assigned an 

outflow rate under § __.32 of the LCR 

rule, and any collateral securing such an 

advance from being assigned an inflow 

rate under § __.33 of the LCR rule. While 

this treatment would neutralize the 

effect of the use of the facilities on a 

covered company’s LCR for the duration 

of the facility, banking organizations 

should be mindful of the need, where 

applicable, to replace maturing Covered 

Federal Reserve Facility Funding with 

appropriate alternative sources in 

instances where exposures mature later 

than such funding. 

26838 Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations 

9The covered company would not record a 

payment to itself in the amount owed for the 

instrument issued by the covered company or its 

consolidated entity; this would be eliminated in the 

process of consolidating the covered company’s 

financial statements. 

10 5 U.S.C. 553. 11 5 U.S.C. 553(b)(B). 

12 5 U.S.C. 553(b)(B). 

13 5 U.S.C. 553(d). 

14 5 U.S.C. 553(d)(1). 

15 5 U.S.C. 801 et seq. 

16 5 U.S.C. 801(a)(3). 

17 5 U.S.C. 804(2). 

This new § __.34 does not apply to the 

extent the covered company secures 

Covered Federal Reserve Facility 

Funding with securities, debt 

obligations, or other instruments issued 

by the covered company or its 

consolidated entity. When a covered 

company owns an instrument that it or 

its consolidated entity issued, the 

covered company will not record a 

payment upon the instrument’s 

maturity. The covered company would 

not receive a payment from outside the 

consolidated covered company upon 

maturity or settlement of the collateral 

that would be available to repay the 

borrowing (Covered Federal Reserve 

Facility Funding), and, as a result, this 

arrangement presents liquidity risk due 

to the asymmetric cash flows of the 

covered company because the covered 

company would not have an inflow to 

offset its cash outflows.9 It would, 

therefore, be inappropriate to neutralize 

the impact of such a funding transaction 

under the LCR rule. The agencies seek 

comment on this provision and all 

aspects of the interim final rule. 

Question 1: The agencies invite 

comment on the advantages and 

disadvantages of neutralizing the effects 

of participating in the MMLF and PPPLF 

in the LCR rule. 

Question 2: How well does the 

approach in the interim final rule 

support the objectives of the facilities? 

Question 3: What are the advantages 

and disadvantages of extending this 

treatment to any other facilities created 

pursuant to section 13(3) of the Federal 

Reserve Act in which covered company 

exposures are pledged as collateral for 

non-recourse, maturity-matched 

advances? 

Question 4: What are the advantages 

and disadvantages of excluding from 

this treatment Covered Federal Reserve 

Facility Funding that is secured by 

instruments issued by a covered 

company or any of its consolidated 

entities? 

III. 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 

delayed effective date ordinarily 

prescribed by the Administrative 

Procedure Act (APA).10 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 

therefor in the rules issued) that notice 

and public procedure thereon are 

impracticable, unnecessary, or contrary 

to the public interest.’’ 11

The agencies believe that the public 

interest is best served by implementing 

the interim final rule immediately upon 

publication in the Federal Register. As 

discussed above, the containment 

measures adopted in response to the 

public health concerns have slowed 

economic activity in many countries, 

including the United States. In 

particular, these containment measures 

have acutely affected small businesses, 

MMFs, and financial markets generally. 

Significantly tighter financial 

conditions and the increased cost of 

credit for most borrowers have severely 

affected small businesses. As millions of 

Americans have been ordered to stay 

home, severely reducing their ability to 

engage in normal commerce, revenue 

streams for many small businesses have 

collapsed. This has resulted in severe 

liquidity constraints at small businesses 

and has forced many small businesses to 

close temporarily or furlough 

employees. Continued access to 

financing will be crucial for small 

businesses to weather economic 

disruptions caused by the containment 

measures adopted in response to the 

public health concerns and, ultimately, 

to help restore economic activity. 

Additionally, sudden disruptions in 

financial markets have put increasing 

liquidity pressure on MMFs. Given 

these pressures, MMFs have been faced 

with increased redemption requests 

from clients with immediate cash needs. 

The MMFs may need to sell a significant 

number of assets to meet these 

redemption requests, which could 

further increase market pressures. 

In order to provide liquidity to 

banking organizations that lend to small 

business and the broader credit markets, 

and to prevent the disruption in the 

money markets from destabilizing the 

financial system, the Board, with 

approval of the Secretary of the 

Treasury, authorized each of the Federal 

Reserve Banks to extend credit under 

the PPPLF and the Federal Reserve Bank 

of Boston to establish the MMLF. This 

interim final rule will provide certainty 

to covered companies regarding the 

liquidity treatment of inflows and 

outflows related to these Federal 

Reserve lending programs. In the 

absence of this interim final rule, 

banking organizations may be restricted 

in their ability to use the MMLF and 

PPPLF due to potential effects on their 

LCRs. The urgent funding pressures 

facing small businesses and MMFs 

justify the adoption of this interim final 

rule as quickly as possible. For these 

reasons, the agencies find that there is 

good cause consistent with the public 

interest to issue the interim final rule 

without advance notice and comment.12

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.13 For the 

good cause described above, the interim 

final rule is exempt from the APA’s 

delayed effective date requirement.14

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, the agencies are 

interested in the views of the public and 

request comment 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.15 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.16

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 (1) an annual 

effect on the economy of $100,000,000 

or more; (2) a major increase in costs or 

prices for consumers, individual 

industries, Federal, State, or local 

government agencies or geographic 

regions; or (3) 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.17

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 

Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations 26839 

18 5 U.S.C. 808. 

19 4 U.S.C. 3501–3521. 

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.18 In light of 

current market uncertainty, the agencies 

believe that delaying the effective date 

of the rule would be contrary to the 

public interest. 

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.19 This interim final rule does 

not introduce any new information 

collections or revise any existing 

information collections pursuant to the 

PRA for the OCC or the FDIC. Therefore, 

no submissions will be made by the 

OCC or the FDIC to OMB for review. 

The interim final rule does, however, 

affect the Board’s current information 

collection for the Complex Institution 

Liquidity Monitoring Report (FR 2052a; 

OMB No. 7100–0361). The Board has 

reviewed the interim final rule pursuant 

to authority delegated by OMB. 

The Board has temporarily revised the 

reporting form and instructions for the 

FR 2052a to reflect the changes made in 

this interim final rule. On June 15, 1984, 

OMB delegated to the Board authority 

under the PRA to approve a temporary 

revision to a collection of information 

without providing opportunity for 

public comment if the Board determines 

that a change in an existing collection 

must be instituted quickly and that 

public participation in the approval 

process would defeat the purpose of the 

collection or substantially interfere with 

the Board’s ability to perform its 

statutory obligation. 

The Board’s delegated authority 

requires that the Board, after 

temporarily approving a collection, 

solicit public comment on a proposal to 

extend the temporary collection for a 

period not to exceed three years. 

Therefore, the Board is inviting 

comment on a proposal to extend the FR 

2052a for three years, with such 

revisions. The Board invites public 

comment on the FR 2052a, which is 

being reviewed under authority 

delegated by the OMB under the PRA. 

Comments are invited on the following: 

a. Whether the collection of 

information in the interim final rule is 

necessary for the proper performance of 

the Board’s functions, including 

whether the information has practical 

utility; 

b. The accuracy of the Board’s 

estimate of the burden of the proposed 

information collection in the interim 

final rule, including the validity of the 

methodology and assumptions used; 

c. Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

d. Ways to minimize the burden of 

information collection on respondents, 

including through the use of automated 

collection techniques or other forms of 

information technology; and 

e. Estimates of capital or startup costs 

and costs of operation, maintenance, 

and purchase of services to provide 

information. 

Comments must be submitted on or 

before July 6, 2020. At the end of the 

comment period, the comments and 

recommendations received will be 

analyzed to determine the extent to 

which the Board should modify the 

information collection. 

Approval Under OMB Delegated 

Authority of the Temporary Revision of, 

and Proposal To Extend for Three Years, 

With Revision, the Following 

Information Collection 

Report title: Complex Institution 

Liquidity Monitoring Report. 

Agency form number: FR 2052a. 

OMB control number: 7100–0361. 

Effective date: May 6, 2020. 

Frequency: Monthly, and each 

business day (daily). 

Affected public: Businesses or other 

for-profit. 

Respondents: U.S. bank holding 

companies (BHCs), U.S. savings and 

loan holding companies (SLHCs), and 

foreign banking organizations (FBOs) 

with U.S. assets. 

Estimated number of respondents: 

Monthly, 26; daily, 16. 

Estimated average hours per response: 

Monthly, 120; daily, 220. 

Estimated annual burden hours: 

917,440. 

General description of report: The 

Board uses the FR 2052a to monitor the 

overall liquidity profile of supervised 

institutions. These data provide detailed 

information on the liquidity risks within 

different business lines (e.g., financing 

of securities positions, prime brokerage 

activities). In particular, these data serve 

as part of the Board’s supervisory 

surveillance program in its liquidity risk 

management area and provide timely 

information on firm-specific liquidity 

risks during periods of stress. Analyses 

of systemic and idiosyncratic liquidity 

risk issues are then used to inform the 

Board’s supervisory processes, 

including the preparation of analytical 

reports that detail funding 

vulnerabilities. 

Legal authorization and 

confidentiality: The FR 2052a is 

authorized pursuant to section 5 of the 

Bank Holding Company Act (12 U.S.C. 

1844), section 8 of the International 

Banking Act (12 U.S.C. 3106), section 

165 of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act 

(Dodd-Frank Act) (12 U.S.C. 5365), and 

section 10 of the Home Owners’ Loan 

Act (12 U.S.C. 1467(a)) and is 

mandatory. Section 5(c) of the Bank 

Holding Company Act authorizes the 

Board to require BHCs to submit reports 

to the Board regarding their financial 

condition. Section 8(a) of the 

International Banking Act subjects FBOs 

to the provisions of the Bank Holding 

Company Act. Section 165 of the DoddFrank Act requires the Board to 

establish prudential standards for 

certain BHCs and FBOs, which include 

liquidity requirements. Section 10(g) of 

the Home Owners’ Loan Act authorizes 

the Board to collect reports from SLHCs. 

Financial institution information 

required by the FR 2052a is collected as 

part of the Board’s supervisory process. 

Therefore, such information is entitled 

to confidential treatment under 

Exemption 8 of the Freedom of 

Information Act (FOIA) (5 U.S.C. 

552(b)(8)). In addition, the institution 

information provided by each 

respondent would not be otherwise 

available to the public and its disclosure 

could cause substantial competitive 

harm. Accordingly, it is entitled to 

confidential treatment under the 

authority of exemption 4 of the FOIA (5 

U.S.C. 552(b)(4)), which protects from 

disclosure trade secrets and commercial 

or financial information. 

Current actions: The Board has 

temporarily revised the reporting form 

and instructions of the FR 2052a to 

incorporate the interim final rule. 

Specifically, the Board has added: (1) 

The sub-product value of ‘‘Covered 

Federal Reserve Facility Funding’’ to the 

product O.S.6: Exceptional Central Bank 

Operations and a corresponding 

instruction to exclude balances reported 

under this sub-product from the preexisting sub-product of ‘‘Federal 

Reserve Bank’’; (2) a sentence to the 

‘‘General Guidance’’ paragraphs under 

the I.U: Inflows-Unsecured and I.S: 

Inflows-Secured headings: ‘‘Exclude 

assets that secure Covered Federal 

26840 Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations 

20 5 U.S.C. 601 et seq. 

21Under 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. 

22 12 U.S.C. 4802(a). 

23 12 U.S.C. 4802. 

24 12 U.S.C. 4809. 25See 2 U.S.C. 1532(a). 

Reserve Facility Funding’’; (3) a 

sentence to the definition of product 

I.O.6: Interest and Dividends 

Receivable: ‘‘Exclude interest and 

dividends receivable on assets securing 

Covered Federal Reserve Facility 

Funding’’; (4) a sentence to the 

definition of product O.O.19: Interest 

and Dividends Payable: ‘‘Exclude 

interest payable on Covered Federal 

Reserve Facility Funding’’; and (5) a 

collateral class of ‘‘L–12’’ representing 

loans guaranteed by U.S. Government 

agencies. 

The Board has determined that these 

temporary revisions to the FR 2052a 

must be instituted quickly and that 

public participation in the approval 

process would defeat the purpose of the 

collection of information, as delaying 

the revisions would interfere with the 

Board’s ability to perform its statutory 

duties and would cause public harm if 

firms were unable to take full advantage 

of the emergency relief provided by the 

MMLF in response to significant 

financial industry disruptions from the 

containment measures adopted in 

response to the public health concerns. 

In addition, the Board proposes to 

extend the FR 2052a for three years with 

the revisions discussed above. 

D. Regulatory Flexibility Act 

The Regulatory Flexibility Act 

(RFA) 20 requires an agency to consider 

whether the rules it proposes will have 

a significant economic impact on a 

substantial number of small entities.21

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 

have a significant economic impact on 

a substantial number of small entities. 

E. Riegle Community Development and 

Regulatory Improvement Act of 1994 

Pursuant to section 302(a) of the 

Riegle Community Development and 

Regulatory Improvement Act 

(RCDRIA),22 in determining the effective 

date and administrative compliance 

requirements for new regulations that 

impose additional reporting, disclosure, 

or other requirements on insured 

depository institutions (IDIs), each 

Federal banking agency must consider, 

consistent with the principle of safety 

and soundness and the public interest, 

any administrative burdens that such 

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 the RCDRIA requires 

new regulations and amendments to 

regulations that impose additional 

reporting, disclosures, or other new 

requirements on IDIs 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, with certain exceptions, 

including for good cause.23 For the 

reasons described above, the agencies 

find good cause exists under section 302 

of the RCDRIA to publish the interim 

final rule with an immediate effective 

date. 

As such, the interim final rule will be 

effective immediately. Nevertheless, the 

agencies seek comment on the RCDRIA. 

F. Use of Plain Language 

Section 722 of the Gramm-LeachBliley Act 24 requires the Federal 

banking agencies to use plain language 

in all proposed and final rules 

published after January 1, 2000. The 

agencies have sought to present the 

interim final rule in a simple and 

straightforward manner. The agencies 

invite comments on whether there are 

additional steps it could take to make 

the rule easier to understand. For 

example: 

• Have we organized the material to 

suit your needs? If not, how could this 

material be better organized? 

• Are the requirements in the 

regulation clearly stated? If not, how 

could the regulation be more clearly 

stated? 

• Does the regulation contain 

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 regulation 

easier to understand? If so, what 

changes to the format would make the 

regulation easier to understand? What 

else could we do to make the regulation 

easier to understand? 

G. OCC Unfunded Mandates Reform Act 

of 1995 Determination 

As a general matter, the Unfunded 

Mandates Reform Act of 1995 (UMRA), 

2 U.S.C. 1531 et seq., requires the 

preparation of a budgetary impact 

statement before promulgating a rule 

that includes a Federal mandate that 

may result in the expenditure by State, 

local, and tribal governments, in the 

aggregate, or by the private sector, of 

$100 million or more in any one year. 

However, the UMRA does not apply to 

final rules for which a general notice of 

proposed rulemaking was not 

published.25 Therefore, because the 

OCC has found good cause to dispense 

with notice and comment for the 

interim final rule, the OCC has not 

prepared an economic analysis of the 

rule under the UMRA. 

List of Subjects 

12 CFR Part 50 

Administrative practice and 

procedure, Banks, Banking, Reporting 

and recordkeeping requirements, 

Savings associations. 

12 CFR Part 249 

Administrative practice and 

procedure, Banks, Banking, Holding 

companies, Reporting and 

recordkeeping requirements. 

12 CFR Part 329 

Administrative practice and 

procedure, Banks, Banking, Reporting 

and recordkeeping requirements. 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Chapter I 

Authority and Issuance 

For the reasons stated in the 

preamble, the Office of the Comptroller 

of the Currency amends part 50 of 

chapter I of title 12, Code of Federal 

Regulations as follows: 

PART 50—LIQUIDITY RISK 

MEASUREMENT STANDARDS 

■ 1. The authority citation for part 50 

continues to read as follows: 

Authority: 12 U.S.C. 1 et seq., 93a, 481, 

1818, 1828, and 1462 et seq. 

Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations 26841 

1The Money Market Mutual Fund Liquidity 

Facility was authorized on March 18, 2020, and the 

Paycheck Protection Program Liquidity Facility was 

authorized on April 6, 2020. 

1The Money Market Mutual Fund Liquidity 

Facility was authorized on March 18, 2020, and the 

Paycheck Protection Program Liquidity Facility was 

authorized on April 6, 2020. 

1The Money Market Mutual Fund Liquidity 

Facility was authorized on March 18, 2020, and the 

Paycheck Protection Program Liquidity Facility was 

authorized on April 6, 2020. 

■ 2. Amend § 50.3 by adding the 

definition of Covered Federal Reserve 

Facility Funding, in alphabetical order, 

to read as follows: 

§ 50.3 Definitions. 

* * * * * 

Covered Federal Reserve Facility 

Funding means a non-recourse loan that 

is extended as part of the Money Market 

Mutual Fund Liquidity Facility or 

Paycheck Protection Program Liquidity 

Facility authorized by the Board of 

Governors of the Federal Reserve 

System pursuant to section 13(3) of the 

Federal Reserve Act.1

* * * * * 

■ 3. Add § 50.34 to read as follows: 

§ 50.34 Cash flows related to Covered 

Federal Reserve Facility Funding. 

(a) Treatment of Covered Federal 

Reserve Facility Funding. 

Notwithstanding any other section of 

this part and except as provided in 

paragraph (b) of this section, outflow 

amounts and inflow amounts related to 

Covered Federal Reserve Facility 

Funding and the assets securing 

Covered Federal Reserve Facility 

Funding are excluded from the 

calculation of a national bank’s or 

Federal savings association’s total net 

cash outflow amount calculated under 

§ 50.30. 

(b) Exception. To the extent the 

Covered Federal Reserve Facility 

Funding is secured by securities, debt 

obligations, or other instruments issued 

by the national bank or Federal savings 

association or one of its consolidated 

subsidiaries, the Covered Federal 

Reserve Facility Funding is not subject 

to paragraph (a) of this section and this 

outflow amount must be included in the 

national bank’s or Federal savings 

association’s total net cash outflow 

amount calculated under § 50.30. 

Board of Governors of the Federal 

Reserve System 

12 CFR Chapter II 

Authority and Issuance 

For the reasons stated in the 

SUPPLEMENTARY INFORMATION, the Board 

of Governors of the Federal Reserve 

System amends 12 CFR chapter II as 

follows: 

PART 249—LIQUIDITY RISK 

MEASUREMENT STANDARDS 

(REGULATION WW) 

■ 4. The authority citation for part 249 

continues to read as follows: 

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

481–486, 1467a(g)(1), 1818, 1828, 1831p–1, 

1831o–1, 1844(b), 5365, 5366, 5368; 12 

U.S.C. 3101 et seq. 

■ 5. Amend § 249.3 by redesignating 

footnotes 1 and 2 as footnotes 2 and 3 

and adding the definition of Covered 

Federal Reserve Facility Funding, in 

alphabetical order, to read as follows: 

§ 249.3 Definitions. 

* * * * * 

Covered Federal Reserve Facility 

Funding means a non-recourse loan that 

is extended as part of the Money Market 

Mutual Fund Liquidity Facility or 

Paycheck Protection Program Liquidity 

Facility authorized by the Board 

pursuant to section 13(3) of the Federal 

Reserve Act.1

* * * * * 

■ 6. Add § 249.34 to read as follows: 

§ 249.34 Cash flows related to Covered 

Federal Reserve Facility Funding. 

(a) Treatment of Covered Federal 

Reserve Facility Funding. 

Notwithstanding any other section of 

this part and except as provided in 

paragraph (b) of this section, outflow 

amounts and inflow amounts related to 

Covered Federal Reserve Facility 

Funding and the assets securing 

Covered Federal Reserve Facility 

Funding are excluded from the 

calculation of a Board-regulated 

institution’s total net cash outflow 

amount calculated under § 249.30. 

(b) Exception. To the extent the 

Covered Federal Reserve Facility 

Funding is secured by securities, debt 

obligations, or other instruments issued 

by the Board-regulated institution or 

one of its consolidated subsidiaries, the 

Covered Federal Reserve Facility 

Funding is not subject to paragraph (a) 

of this section and this outflow amount 

must be included in the Board-regulated 

institution’s total net cash outflow 

amount calculated under § 249.30. 

Federal Deposit Insurance Corporation 

12 CFR Chapter III 

Authority and Issuance 

For the reasons set forth in the joint 

preamble, chapter III of title 12 of the 

Code of Federal Regulations is amended 

as follows: 

PART 329—LIQUIDITY RISK 

MEASUREMENT STANDARDS 

■ 7. The authority citation for part 329 

continues to read as follows: 

Authority: 12 U.S.C. 1815, 1816, 1818, 

1819, 1828, 1831p–1, 5412. 

■ 8. Amend § 329.3 by redesignating 

footnotes 1 and 2 as footnotes 2 and 3 

and adding the definition of Covered 

Federal Reserve Facility Funding, in 

alphabetical order, to read as follows: 

§ 329.3 Definitions. 

* * * * * 

Covered Federal Reserve Facility 

Funding means a non-recourse loan that 

is extended as part of the Money Market 

Mutual Fund Liquidity Facility or 

Paycheck Protection Program Liquidity 

Facility authorized by the Board of 

Governors of the Federal Reserve 

System pursuant to section 13(3) of the 

Federal Reserve Act.1

* * * * * 

■ 9. Add § 329.34 to read as follows: 

§ 329.34 Cash flows related to Covered 

Federal Reserve Facility Funding. 

(a) Treatment of Covered Federal 

Reserve Facility Funding. 

Notwithstanding any other section of 

this part and except as provided in 

paragraph (b) of this section, outflow 

amounts and inflow amounts related to 

Covered Federal Reserve Facility 

Funding and the assets securing 

Covered Federal Reserve Facility 

Funding are excluded from the 

calculation of a FDIC-supervised 

institution’s total net cash outflow 

amount calculated under § 329.30. 

(b) Exception. To the extent the 

Covered Federal Reserve Facility 

Funding is secured by securities, debt 

obligations, or other instruments issued 

by the FDIC-supervised institution or 

one of its consolidated subsidiaries, the 

Covered Federal Reserve Facility 

Funding is not subject to paragraph (a) 

of this section and this outflow amount 

must be included in the FDICsupervised institution’s total net cash 

outflow amount calculated under 

§ 329.30. 

Brian P. Brooks, 

First Deputy 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. 

26842 Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations 

Dated at Washington, DC, on or about April 

30, 2020. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. 2020–09716 Filed 5–5–20; 8:45 am] 

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

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2020–0092; Product 

Identifier 2020–NM–001–AD; Amendment 

39–19905; AD 2020–08–13] 

RIN 2120–AA64 

Airworthiness Directives; Bombardier, 

Inc. Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for certain 

Bombardier, Inc., Model CL–600–2B19 

(Regional Jet Series 100 & 440) 

airplanes, Model CL–600–2C10 

(Regional Jet Series 700, 701 & 702) 

airplanes, Model CL–600–2D15 

(Regional Jet Series 705) airplanes, and 

Model CL–600–2D24 (Regional Jet 

Series 900) airplanes; and all 

Bombardier, Inc., Model CL–600–2C11 

(Regional Jet Series 550) airplanes. This 

AD was prompted by reports of 

fractured rudder primary feel unit 

shafts; a subsequent investigation 

determined that the fractures in the 

shafts are consistent with fatigue 

damage. This AD requires replacement 

of the rudder primary feel unit shaft. 

The FAA is issuing this AD to address 

the unsafe condition on these products. 

DATES: This AD is effective June 10, 

2020. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in this AD 

as of June 10, 2020. 

ADDRESSES: For service information 

identified in this final rule, contact 

Bombardier, Inc., 400 Coˆte-Vertu Road 

West, Dorval, Que ́bec H4S 1Y9, Canada; 

Widebody Customer Response Center 

North America toll-free telephone 1– 

866–538–1247 or direct-dial telephone 

1–514–855–2999; fax 514–855–7401; 

email ac.yul@aero.bombardier.com; 

internet http://www.bombardier.com. 

You may view this service information 

at the FAA, Airworthiness Products 

Section, Operational Safety Branch, 

2200 South 216th St., Des Moines, WA. 

For information on the availability of 

this material at the FAA, call 206–231– 

3195. It is also available on the internet 

at https://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2020–0092. 

Examining the AD Docket 

You may examine the AD docket on 

the internet at https://

www.regulations.gov by searching for 

and locating Docket No. FAA–2020– 

0092; or in person at Docket Operations 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

The AD docket contains this final rule, 

any comments received, and other 

information. The address for Docket 

Operations is 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: 

Andrea Jimenez, Aerospace Engineer, 

Airframe and Mechanical Systems 

Section, FAA, New York ACO Branch, 

1600 Stewart Avenue, Suite 410, 

Westbury, NY 11590; telephone 516– 

228–7330; fax 516–794–5531; email 9- 

avs-nyaco-cos@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

Transport Canada Civil Aviation 

(TCCA), which is the aviation authority 

for Canada, has issued Canadian AD 

CF–2019–42, dated November 8, 2019 

(also referred to as the Mandatory 

Continuing Airworthiness Information, 

or ‘‘the MCAI’’), to correct an unsafe 

condition for certain Bombardier, Inc., 

Model CL–600–2B19 (Regional Jet 

Series 100 & 440) airplanes, Model CL– 

600–2C10 (Regional Jet Series 700, 701 

& 702) airplanes, Model CL–600–2D15 

(Regional Jet Series 705) airplanes, and 

Model CL–600–2D24 (Regional Jet 

Series 900) airplanes; and all 

Bombardier, Inc., Model CL–600–2C11 

(Regional Jet Series 550) airplanes. You 

may examine the MCAI in the AD 

docket on the internet at https://

www.regulations.gov by searching for 

and locating Docket No. FAA–2020– 

0092. 

The FAA issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to certain Bombardier, Inc., Model 

CL–600–2B19 (Regional Jet Series 100 & 

440) airplanes, Model CL–600–2C10 

(Regional Jet Series 700, 701 & 702) 

airplanes, Model CL–600–2D15 

(Regional Jet Series 705) airplanes, and 

Model CL–600–2D24 (Regional Jet 

Series 900) airplanes; and all 

Bombardier, Inc., Model CL–600–2C11 

(Regional Jet Series 550) airplanes. The 

NPRM published in the Federal 

Register on February 18, 2020 (85 FR 

8768). The NPRM was prompted by 

reports of fractured rudder primary feel 

unit shafts; a subsequent investigation 

determined that the fractures in the 

shafts are consistent with fatigue 

damage. The NPRM proposed to require 

replacement of the rudder primary feel 

unit shaft. The FAA is issuing this AD 

to address fractures of the rudder 

primary feel unit shaft, which could 

result in a loss of feel in the yaw axis 

and thereby impact the controllability of 

the airplane. See the MCAI for 

additional background information. 

Comments 

The FAA gave the public the 

opportunity to participate in developing 

this final rule. The FAA has considered 

the comments received. The Air Line 

Pilots Association, International (ALPA) 

and Jacob Yepiz stated support for the 

NPRM. 

Conclusion 

The FAA reviewed the relevant data, 

considered the comments received, and 

determined that air safety and the 

public interest require adopting this 

final rule as proposed, except for minor 

editorial changes. The FAA has 

determined that these minor changes: 

• Are consistent with the intent that 

was proposed in the NPRM for 

addressing the unsafe condition; and 

• Do not add any additional burden 

upon the public than was already 

proposed in the NPRM. 

Related Service Information Under 1 

CFR Part 51 

Bombardier has issued Service 

Bulletin 601R–27–166, dated April 5, 

2019; and Service Bulletin 670BA–27– 

075, dated April 5, 2019. This service 

information describes procedures for 

replacing the rudder primary feel unit 

shaft that has part number 600–90251– 

1 with a new shaft. These documents 

are distinct since they apply to different 

airplane models. This service 

information is reasonably available 

because the interested parties have 

access to it through their normal course 

of business or by the means identified 

in the ADDRESSES section. 

Costs of Compliance 

The FAA estimates that this AD 

affects 1,002 airplanes of U.S. registry. 

The FAA estimates the following costs 

to comply with this AD: