Central Liquidity Facility (rule, 86 FR 15568, March 24, 2021)
Summary
Federal Register pages from Wednesday, March 24, 2021 (86 FR 15568) carrying an NCUA Board interim final rule that conforms NCUA's regulations to the Consolidated Appropriations Act, 2021. The Act extended the CARES Act enhancements to the Central Liquidity Facility to December 31, 2021. On April 16, 2020 the Board had approved an interim final rule implementing those CARES Act changes, which were set to sunset on December 31, 2020. The rule sets out what happens at the new sunset: an agent must not request additional Facility advances for its own liquidity needs, and the definition of liquidity needs reverts to the pre-CARES Act version. The pages open with unrelated NRC amendment listings.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Central Liquidity Facility (rule, 86 FR 15568, March 24, 2021).”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/central-liquidity-facility-rule-86-fr-15568-march-24-2021-779019367c/
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15568 Federal Register / Vol. 86, No. 55 / Wednesday, March 24, 2021 / Rules and Regulations
Amendment Number 7, Revision 1, on SAR Submitted by: TN Americas LLC. • Federal eRulemaking Portal: http://
April 25, 2017, superseded by Renewed SAR Title: Final Safety Analysis www.regulations.gov. Follow the
Amendment Number 7, Revision 1, on Report for the Standardized NUHOMS® instructions for submitting comments.
December 11, 2017. Horizontal Modular Storage System for • Fax: (703) 518–6319. Include
Renewed Amendment Number 7, Irradiated Nuclear Fuel. ‘‘[Your Name]—Comments on Interim
Revision 1, Effective Date: December 11, Docket Number: 72–1004. Final Rule: CLF 2021—NCUA–2021–
2017. Certificate Expiration Date: January 0037’’ in the transmittal.
Amendment Number 8 Effective Date: 23, 2015. • Mail: Address to Melane Conyers-
December 5, 2005, superseded by Renewed Certificate Expiration Date: Ausbrooks, Secretary of the Board,
Amendment Number 8, Revision 1, on January 23, 2055. National Credit Union Administration,
April 25, 2017, superseded by Renewed Model Number: NUHOMS®–24P, 1775 Duke Street, Alexandria, Virginia
Amendment Number 8, Revision 1, on –24PHB, –24PTH, –32PT, –32PTH1, 22314–3428.
December 11, 2017. –37PTH, –52B, –61BT, –61BTH, and • Hand Delivery/Courier: Same as
Renewed Amendment Number 8, –69BTH. mail address.
Revision 1, Effective Date: December 11, * * * * * Public inspection: You may view all
2017. Dated: March 9, 2021. public comments on the Federal
Amendment Number 9 Effective Date: For the Nuclear Regulatory Commission. eRulemaking Portal at http://
April 17, 2007, superseded by Margaret M. Doane, www.regulations.gov, as submitted,
Amendment Number 9, Revision 1, on except for those we cannot post for
Executive Director for Operations.
April 25, 2017, superseded by Renewed technical reasons. The NCUA will not
[FR Doc. 2021–06076 Filed 3–23–21; 8:45 am]
Amendment Number 9, Revision 1, on edit or remove any identifying or
BILLING CODE 7590–01–P
December 11, 2017. contact information from the public
Renewed Amendment Number 9, comments submitted. Due to social
Revision 1, Effective Date: December 11, distancing measures in effect, the usual
2017. NATIONAL CREDIT UNION opportunity to inspect paper copies of
Amendment Number 10 Effective ADMINISTRATION comments in the NCUA’s law library is
Date: August 24, 2009, superseded by not currently available. After social
12 CFR Part 725
Amendment Number 10, Revision 1, on distancing measures are relaxed, visitors
April 25, 2017, superseded by Renewed [NCUA–2021–0037] may make an appointment to review
Amendment Number 10, Revision 1, on RIN 3133–AF15 paper copies by calling (703) 518–6540
December 11, 2017. or emailing OGCMail@ncua.gov.
Renewed Amendment Number 10, Central Liquidity Facility FOR FURTHER INFORMATION CONTACT:
Revision 1, Effective Date: December 11, Anthony Cappetta, CLF Vice President,
2017. AGENCY: National Credit Union
Office of Examination and Insurance; or
Amendment Number 11 Effective Administration (NCUA).
Justin M. Anderson, Senior Staff
Date: January 7, 2014, superseded by ACTION: Interim final rule with request Attorney, Office of General Counsel,
Amendment Number 11, Revision 1, on for comments. 1775 Duke Street, Alexandria, VA
April 25, 2017, superseded by Renewed 22314–3428. Anthony Cappetta can also
SUMMARY: In response to the enactment
Amendment Number 11, Revision 1, on be reached at (703) 518–1592, and Justin
of the Consolidated Appropriations Act,
December 11, 2017. Anderson can be reached at (703) 518–
Renewed Amendment Number 11, 2021, (CAA) the NCUA Board (Board) is
issuing this interim final rule to cohere 6556.
Revision 1, Effective Date: December 11,
the NCUA’s regulations to the statutory SUPPLEMENTARY INFORMATION:
2017, as corrected (ADAMS Accession
changes made by the CAA. Specifically,
No. ML18018A043). I. Background
Amendment Number 12 Effective the CAA extended several
enhancements to the NCUA’s Central The CARES Act made several changes
Date: Amendment not issued by the to Title III of the Federal Credit Union
NRC. Liquidity Facility (CLF or Facility),
which were first enacted by the Act (the FCU Act),1 which governs the
Amendment Number 13 Effective CLF.2 On April 16, 2020, the Board
Date: May 24, 2014, superseded by Coronavirus Aid, Relief, and Economic
Security Act (CARES Act). This rule approved an interim final rule to amend
Amendment Number 13, Revision 1, on the NCUA’s CLF regulation, Part 725.3
April 25, 2017, superseded by Renewed amends the NCUA’s CLF regulation to
reflect these extensions. This rule also This interim final rule made several
Amendment Number 13, Revision 1, on changes to part 725, some of which
December 11, 2017. extends the withdrawal from CLF
membership provisions that the Board effectuated or mirrored the changes
Renewed Amendment Number 13,
included in the April 2020 interim final made by the CARES Act. Other changes,
Revision 1, Effective Date: December 11,
rule that made the aforementioned made in the April interim final rule,
2017, as corrected (ADAMS Accession
regulatory changes related to the CARES were intended to make membership in
No. ML18018A100).
Act. the CLF more advantageous to credit
Amendment Number 14 Effective
DATES: This rule is effective on March unions.
Date: April 25, 2017, superseded by
24, 2021. The amendment to § 725.6 at The changes directly related to the
Renewed Amendment Number 14, on
instruction number 4 is effective March CARES Act were scheduled to sunset in
December 11, 2017.
24, 2021, until January 1, 2023. accordance with the same on December
Renewed Amendment Number 14
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Comments must be received on or 31, 2020. As noted above, however, the
Effective Date: December 11, 2017.
Renewed Amendment Number 15 before May 24, 2021. CAA, among other things, extended the
Effective Date: January 22, 2019. ADDRESSES: You may submit written
1 12 U.S.C. 1795 et. seq.
Renewed Amendment Number 16 comments, identified by RIN 3133– 2 Coronavirus Aid, Relief, and Economic Security
Effective Date: September 14, 2020. AF15, by any of the following methods Act, Public Law 116–136, 134 Stat 281 (March 27,
Renewed Amendment Number 17 (Please send comments by one method 2020).
Effective Date: June 7, 2021. only): 3 85 FR 23731 (Apr. 29, 2020).
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Federal Register / Vol. 86, No. 55 / Wednesday, March 24, 2021 / Rules and Regulations 15569
sunset date of the CLF enhancements in turn, this approved group is the basis for Specifically, the April interim final rule
the CARES Act to December 31, 2021.4 calculating the amount of Facility provided that upon sunset of this
To provide clarity and transparency, the capital stock the corporate credit union provision, an agent must:
Board is issuing this interim final rule or corporate credit union group is (1) Not request any additional Facility
to amend its regulations to reflect this required to purchase. This amendment advances for its own liquidity needs;
extension. was scheduled to sunset in accordance and
In addition, the Board notes that in with the CARES Act on December 31, (2) continue to follow the terms of the
response to the April interim final rule, 2020. The CAA extended this provision Facility advance agreement entered into
the Board received five comments in the CARES Act until December 31, between the agent and the Facility.
which supported the rule. The 2021.6 As such, the Board is making a The Board is not making any changes
comments also requested legislative conforming date change to part 725 to the aforementioned provisions, which
changes and/or changes outside the through this interim final rule. will still apply upon the sunset of the
scope of the April interim final rule. Upon the sunset of the amendment changes to these sections of part 725.
made in the CARES Act, as extended by In addition, in the April 2020 interim
II. Amendments final rule, the Board made cohering
the CAA, any corporate credit union or
The following is a section-by-section corporate credit union group that changes to §§ 725.17 and 725.18 to
analysis of the changes in this interim became an agent member under this include the ability of an Agent to
final rule. provision must, within one year from borrow for its own liquidity needs.10
the sunset date, either: This rule makes technical changes to the
Part 725
1. Purchase Facility stock for all of its two aforementioned sections to clarify
A. Definitions member credit unions; or that the references to an Agent
In accordance with the CARES Act, 2. terminate its membership in the borrowing for its own liquidity needs
the Board amended the definition of Facility. sunset on December 31, 2021.
‘‘Liquidity needs’’ to remove the words The Board notes that these are the D. Termination of Membership
‘‘primarily serving natural persons.’’ options that the Board included in the
April interim final rule. Further, the In the April interim final rule, the
This change mirrored the statutory
Board is, as noted above, only changing Board amended the waiting periods for
change in the CARES Act and clarified
the sunset date, and not making any a credit union to terminate its
that liquidity needs are not limited to
substantive changes to this or other membership in the Facility between the
only natural person credit unions, but
sections of part 725. effective date of the interim final rule
may also include those of corporate
and January 1, 2022.11 The amendments
credit unions or a corporate credit union C. Agent Member Borrowing to this section of part 725 temporarily
group. This amendment was scheduled
To effectuate the intent of the CARES permitted a credit union, regardless of
to sunset in accordance with the CARES
Act in a safe and sound manner, the its percentage amount of stock
Act on December 31, 2020. The CAA
Board, in the April interim final rule, subscription, to withdraw from
extended this provision in the CARES
made a clarifying amendment to membership in the Facility after
Act until December 31, 2021.5 As such,
§ 725.4.7 This amendment clarified that notifying the NCUA Board in writing on
the Board is clarifying that the
an agent member may borrow from the the sooner of:
regulatory definition of ‘‘Liquidity
Facility for its own liquidity needs, but, (A) Six months from the date of its
needs’’ to make it clear when the
to do so, such agent must first subscribe written notice to the NCUA Board; or
definition under the CARES Act applies (B) December 31, 2020.
and when such definition reverts back to the capital stock of the Facility in an
amount equal to one-half of 1 percent of Further, any credit union that
to the pre-CARES Act version. remained a member after December 31,
the Agent’s own paid-in and
B. Agent Membership unimpaired capital and surplus.8 In 2020, was permitted to withdraw from
In accordance with the CARES Act, addition, the Board amended membership immediately upon
the Board amended the nature of the § 725.17(b)(2) to clarify that an agent notifying the Board in writing of its
requirement for a corporate credit union may apply for a Facility advance based intent to do so. Per the April interim
or group of corporate credit unions to on its own liquidity needs. final rule, such immediate withdrawal
subscribe to the capital stock of the The Board notes that the foregoing period would expire on December 31,
Facility in an amount equal to one-half amendments were scheduled to sunset 2021. After December 31, 2021, the
of 1 percent of the paid-in and in accordance with requirements of the termination requirements in effect prior
unimpaired capital and surplus of all of CARES Act on December 31, 2020. The to the enactment of the CARES Act
the corporate credit union’s or corporate CAA extended the related provisions in would be reinstated and apply to all
credit union group’s natural person the CARES Act until December 31, members.12
2021.9 As such, the Board is making a The Board is making several
credit union members. This change,
conforming date changes through this conforming amendments to this section
which mirrors the statutory change in
interim final rule. to address the extension of the CLF
the CARES Act, allows the Board, in its
The April interim final rule included provisions in the CARES Act by the
sole discretion, to determine which
language to clarify the ramifications of CAA. First, any credit union that joined
grouping of natural person member
the sunset of this provision. the CLF between April 29, 2020 and
credit unions of the applying corporate
December 31, 2020 may immediately
credit union or corporate credit union
withdraw from membership upon
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6 Id.
group are considered covered by the 7 85 FR 23731 (Apr. 29, 2020).
notifying the Board in writing of its
Agent’s membership in the Facility. In 8 A credit union is required to pay into the
intent to do so. Through this interim
Facility one-half of the amount required by the
4 Consolidated Appropriations Act, 2021, Public regulations and to hold the other one-half in liquid
final rule, the Board is extending this
Law 116–260, 134 Stat 1182 (December 27, 2020). assets on its balance sheet.
5 Consolidated Appropriations Act, 2021, Public 9 Consolidated Appropriations Act, 2021, Public 10 85 FR 23731 (Apr. 29, 2020).
11 Id.
Law 116–260, 134 Stat 1182, section 540(a) Law 116–260, 134 Stat 1182, section 540(a)
(December 27, 2020). (December 27, 2020). 12 Id.
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15570 Federal Register / Vol. 86, No. 55 / Wednesday, March 24, 2021 / Rules and Regulations
immediate withdrawal period to III. Regulatory Procedures effect until at least 60 days following its
December 31, 2022. publication.
A. Administrative Procedure Act The Congressional Review Act defines
Second, credit unions that join the
CLF between January 1, 2021 and The Board is issuing this interim final a ‘‘major rule’’ as any rule that the
December 31, 2021, regardless of rule without prior notice and the Administrator of the Office of
percentage amount of stock opportunity for public comment and the Information and Regulatory Affairs of
subscription, may withdraw from delayed effective date ordinarily the OMB finds has resulted in or is
membership in the Facility after prescribed by the Administrative likely to result in (A) an annual effect
notifying the NCUA Board in writing on Procedure Act (APA). Pursuant to on the economy of $100,000,000 or
the sooner of: section 553(b)(B) of the APA, general more; (B) a major increase in costs or
notice and the opportunity for public prices for consumers, individual
(A) Six months from the date of its
comment are not required with respect industries, Federal, State, or local
written notice to the NCUA Board; or
to a rulemaking when an ‘‘agency for government agencies or geographic
(B) December 31, 2021. good cause finds (and incorporates the regions, or (C) significant adverse effects
Any credit union that joins the finding and a brief statement of reasons on competition, employment,
Facility during the aforementioned therefor in the rules issued) that notice investment, productivity, innovation, or
period and remains a member after and public procedure thereon are on the ability of United States-based
December 31, 2021, may immediately impracticable, unnecessary, or contrary enterprises to compete with foreign-
withdraw from membership in the to the public interest.’’ based enterprises in domestic and
Facility upon notifying the Board in The Board believes that the public export markets.
writing of its intent to do so. Such interest is best served by implementing For the same reasons set forth above,
immediate withdrawal period will the interim final rule immediately upon the Board is adopting this interim final
expire on December 31, 2022. On publication in the Federal Register. As rule without the delayed effective date
January 1, 2023, the immediate discussed above, the Board notes the generally prescribed under the
withdrawal period will cease, and all changes in this rule cohere the NCUA’s Congressional Review Act. The delayed
members will be subject to the regulations with statutory extensions effective date required by the
termination provisions in effect before recently enacted in the CAA. As such Congressional Review Act does not
April 29, 2020. changes are clarifying in nature and will apply to any rule for which an agency
E. CARES Act Provisions Extended by reduce any disruption caused by for good cause finds (and incorporates
the CAA But Not Included in This inconsistency in the NCUA’s the finding and a brief statement of
Interim Final Rule regulations, the Board believes it is has reasons therefor in the rule issued) that
good cause to determine that ordinary notice and public procedure thereon are
The Board notes that the CARES Act notice and public procedure are impracticable, unnecessary, or contrary
included two additional amendments to impracticable and that moving to the public interest. In light of current
the FCU Act that were not reflected in expeditiously in the form of an interim inconsistency between the NCUA’s
the April interim final rule. Like the final rule is in the best of interests of the regulations and the Act, the Board
other changes discussed above, the CAA public and the federally insured credit believes that delaying the effective date
also extended these amendments until unions that serve that public. of the rule would be contrary to the
December 31, 2021.13 For the benefit The APA also requires a 30-day public interest for the same reasons
and information of stakeholders, the delayed effective date, except for (1) discussed above.
Board briefly discusses these substantive rules which grant or As required by the Congressional
amendments below. recognize an exemption or relieve a Review Act, the Board will submit the
First, the CARES Act temporarily restriction; (2) interpretative rules and final rule and other appropriate reports
increased the multiplier from ‘‘twelve statements of policy; or (3) as otherwise to Congress and the Government
times’’ to ‘‘sixteen times.’’ This means provided by the agency for good cause. Accountability Office for review. The
that for every $1 of capital and surplus, Because the rules relieve a restriction, Board notes that OMB agreed that the
the Facility may borrow $16. This the interim final rule is exempt from the April interim final rule was not major.
provision was not previously codified in APA’s delayed effective date As this interim final is similar in nature,
part 725, and therefore the Board is not requirement. The reasons previously the Board believe this rule is also not
making any regulatory amendment discussed for forgoing prior notice and major for purposes of the Congressional
regarding this temporary statutory comment would also separately justify Review Act.
change. this determination.
While the Board believes that there is C. Paperwork Reduction Act
Second, the CARES Act provided
more clarity about the purposes for good cause to issue the rule without The Paperwork Reduction Act of 1995
which the NCUA Board can approve advance notice and comment and with (PRA) (44 U.S.C. 3501 et seq.) requires
liquidity-need requests by removing the an immediate effective date, the Board that the Office of Management and
phrase ‘‘the Board shall not approve an is interested in the views of the public Budget (OMB) approve all collections of
application for credit the intent of and requests comment on all aspects of information by a Federal agency from
which is to expand credit union the interim final rule. the public before they can be
portfolios.’’ 14 This provision was not implemented. Respondents are not
B. Congressional Review Act required to respond to any collection of
previously codified in part 725, and
therefore the Board is not making any For purposes of the Congressional information unless it displays a valid
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regulatory amendment regarding this Review Act, the OMB makes a OMB control number.
temporary statutory change. determination as to whether a final rule In accordance with the PRA, the
constitutes a ‘‘major’’ rule. If a rule is information collection requirements
13 Consolidated Appropriations Act, 2021, Public
deemed a ‘‘major rule’’ by the Office of included in this interim final rule
Law 116–260, 134 Stat 1182, section 540(a) Management and Budget (OMB), the extension have been submitted to OMB
(December 27, 2020). Congressional Review Act generally for approval under control number
14 See. 12 U.S.C. 1795e(a)(1). provides that the rule may not take 3133–0061.
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Federal Register / Vol. 86, No. 55 / Wednesday, March 24, 2021 / Rules and Regulations 15571
D. Executive Order 13132 By the NCUA Board on March 18, 2021. percent of the paid-in and unimpaired
Executive Order 13132 encourages Melane Conyers-Ausbrooks, capital and surplus (as determined in
independent regulatory agencies to Secretary of the Board. accordance with § 725.5(b) of this part)
consider the impact of their actions on For the reasons discussed in the of such credit union members of the
state and local interests. The NCUA, an preamble, the Board is amending 12 corporate credit union or corporate
independent regulatory agency as CFR part 725 as follows: credit union group as the Board may
defined in 44 U.S.C. 3502(5), voluntarily determine in its sole discretion, except
complies with the executive order to PART 725—NATIONAL CREDIT UNION those which are Regular members of the
adhere to fundamental federalism ADMINISTRATION CENTRAL Facility or which have access to the
principles. LIQUIDITY FACILITY Facility through, and are included in the
This interim final rule does not have stock subscription of, another Agent (a
substantial effects on the states, on the ■ 1. The authority citation for part 725 natural person credit union which is a
relationship between the national continues to read as follows: member of more than one Agent
government and the states, or on the Authority: 12 U.S.C. 1795f(a)(2). member of the Facility must designate
distribution of power and through which Agent it will deal with
■ 2. In § 725.2, revise paragraph (i) to
responsibilities among the various the Facility, and the designated Agent
read as follows: will be responsible for including the
levels of government. The NCUA has
therefore determined that this rule does § 725.2 Definitions. capital and surplus of such credit union
not constitute a policy that has * * * * * in the calculation of its stock
federalism implications for purposes of (i) Liquidity needs means: subscription). Upon approval of the
the executive order. (1) From April 29, 2020 to December application, the Agent shall forward
31, 2021, the needs of credit unions for: funds equal to one-half of this initial
E. Assessment of Federal Regulations
(i) Short-term adjustment credit stock subscription to the Facility. A
and Policies on Families
available to assist in meeting temporary corporate credit union or corporate
The NCUA has determined that this credit union group that became an
requirements for funds or to cushion
rule will not affect family well-being Agent member of the Facility under this
more persistent outflows of funds
within the meaning of section 654 of the paragraph shall, after December 31,
pending an orderly adjustment of credit
Treasury and General Government 2021, but before January 1, 2023, either:
union assets and liabilities;
Appropriations Act, 1999, Public Law (A) Purchase Facility stock in
(ii) Seasonal credit available for
105–277, 112 Stat. 2681 (1998). accordance with the terms of paragraph
longer periods to assist in meeting
F. Regulatory Flexibility Act seasonal needs for funds arising from a (a)(2)(i) of this section; or
combination of expected patterns of (B) Terminate its membership in the
The Regulatory Flexibility Act (RFA) facility.
generally requires that when an agency movement in share and deposit
accounts and loans; and (iii) From April 29, 2020, until
issues a proposed rule or a final rule December 31, 2021, if borrowing for its
pursuant to the APA or another law, the (iii) Protracted adjustment credit
available in the event of unusual or own liquidity needs, one-half of 1
agency must prepare a regulatory percent of the Agent’s own paid-in and
flexibility analysis that meets the emergency circumstances of a longer-
term nature resulting from national, unimpaired capital and surplus. Upon
requirements of the RFA and publish approval of the application, the Agent
such analysis in the Federal Register. regional or local difficulties.
(2) After December 31, 2021, the shall forward funds equal to one-half of
Specifically, the RFA normally requires this stock subscription to the Facility.
agencies to describe the impact of a needs of credit unions primarily serving
natural persons for: This amount shall be in addition to the
rulemaking on small entities by amounts required by paragraph (a)(2)(i)
providing a regulatory impact analysis. (i) Short-term adjustment credit
available to assist in meeting temporary or (ii) of this section, if a corporate
For purposes of the RFA, the Board credit union or corporate credit union
considers credit unions with assets less requirements for funds or to cushion
more persistent outflows of funds group joined the facility as an Agent and
than $100 million to be small entities. intends to borrow for its own liquidity
Rules that are exempt from notice and pending an orderly adjustment of credit
union assets and liabilities; needs. Any corporate credit union or
comment are also exempt from the RFA
(ii) Seasonal credit available for corporate credit union group that
requirements, including conducting a
longer periods to assist in meeting received a Facility advance for its own
regulatory flexibility analysis, when
seasonal needs for funds arising from a liquidity need under the temporary
among other things the agency for good
combination of expected patterns of requirements set forth in this paragraph
cause finds that notice and public
movement in share and deposit must, as of January 1, 2022 and
procedure are impracticable,
accounts and loans; and thereafter:
unnecessary, or contrary to the public (A) Not request any additional
interest.15 Accordingly, the NCUA is not (iii) Protracted adjustment credit
available in the event of unusual or Facility advances for its own liquidity
required to conduct a regulatory needs; and
flexibility analysis for the reasons stated emergency circumstances of a longer-
term nature resulting from national, (B) Continue to follow the terms of the
above relating to the good cause Facility advance agreement entered into
exemption. Nevertheless, the Board regional or local difficulties.
between the Agent and the Facility.
welcomes comments on the effect this * * * * *
interim final rule may have on small ■ 3. In § 725.4, revise paragraphs
* * * * *
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entities. (a)(2)(ii) and (iii) to read as follows: § 725.6 [Amended]
List of Subjects in 12 CFR Part 725 § 725.4 Agent membership. ■ 4. In § 725.6, effective March 24, 2021,
Credit unions, Reporting and (a) * * * until January 1, 2023, paragraphs (a) and
recordkeeping requirements. (2) * * * (b) are stayed.
(ii) From April 29, 2020, until ■ 5. In § 725.6, revise paragraph (e) to
15 5 U.S.C. 553(a). December 31, 2021, one-half of 1 read as follows:
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15572 Federal Register / Vol. 86, No. 55 / Wednesday, March 24, 2021 / Rules and Regulations
§ 725.6 Termination of membership. Facility shall consider the Propulsion Section, FAA, Seattle ACO
* * * * * creditworthiness of such member. Branch, 2200 South 216th St., Des
(e) The following requirements apply * * * * * Moines, WA 98190; phone and fax: 206–
to a credit union’s termination of (d) A credit union (whether a Regular 231–3875; email: douglas.e.mansell@
membership in the Facility from April member of the Facility, Agent member faa.gov.
29, 2020 until January 1, 2023: (provided such Agent may submit an SUPPLEMENTARY INFORMATION:
(1) Any credit union, regardless of its application under § 725.17(b)(2)(iv) of
amount of stock subscription, that this part), or a member natural person Background
became a member of the Facility credit union) which does not meet the The FAA issued a notice of proposed
between April 29, 2020, and December Facility’s creditworthiness standards rulemaking (NPRM) to amend 14 CFR
31, 2020, may immediately terminate its may be limited in or denied the use of part 39 by adding an AD that would
membership until December 31, 2022. advances for its liquidity needs. apply to all The Boeing Company Model
(2) Any credit union regardless of its [FR Doc. 2021–05953 Filed 3–23–21; 8:45 am] 747 series airplanes and Model 767
amount of stock subscription, that BILLING CODE 7535–01–P series airplanes. The NPRM published
becomes a member between January 1, in the Federal Register on September 9,
2021 and December 31, 2021, may 2020 (85 FR 55622). The NPRM was
withdraw from membership in the DEPARTMENT OF TRANSPORTATION prompted by a report of an un-
Facility after notifying the NCUA Board commanded fuel transfer between the
in writing on the sooner of: Federal Aviation Administration main and center fuel tanks. The NPRM
(A) Six months from the date of its proposed to prohibit operation of an
written notice to the NCUA Board; or 14 CFR Part 39 airplane with any inoperative refuel
(B) December 31, 2021. [Docket No. FAA–2020–0785; Product valve (fueling shut-off valve) failed in
(3) Any credit union that does not Identifier 2020–NM–063–AD; Amendment the open position.
elect to withdraw from membership in 39–21477; AD 2021–06–10] The FAA is issuing this AD to address
the Facility during the time periods RIN 2120–AA64 multiple refuel valves failed in the
prescribed in paragraph (e)(2) of this ‘‘open’’ position via Master Minimum
section, may immediately withdraw Airworthiness Directives; The Boeing Equipment List (MMEL) dispatch
from membership in the Facility after Company Airplanes allowance, which allows un-
notifying the NCUA Board in writing of commanded fuel transfer between fuel
AGENCY: Federal Aviation tanks. This condition could result in a
its intention to do so from January 1,
Administration (FAA), DOT. fuel exhaustion event.
2022 to December 31, 2022. As of
January 1, 2023, the requirements of ACTION: Final rule.
Comments
paragraphs (a) and (b) of this section, as SUMMARY: The FAA is adopting a new
in effect on March 1, 2020, shall apply. The FAA gave the public the
airworthiness directive (AD) for all The
(4) The Facility will process requests opportunity to participate in developing
Boeing Company Model 747 series
under this paragraph (e) upon demand this final rule. The following presents
airplanes and Model 767 series
and deliver funds as soon as practicable, the comments received on the NPRM
airplanes. This AD was prompted by a
allowing for the time necessary for and the FAA’s response to each
report of an un-commanded fuel transfer
settlement and transfer of funds in these comment.
between the main and center fuel tanks.
transactions. This AD prohibits operation of an Support for the NPRM
■ 6. In § 725.17, revise paragraph airplane with any inoperative refuel
United Airlines had no objection to
(b)(2)(iv) to read as follows: valve (fueling shut-off valve) failed in
the NPRM. Another commenter stated
the open position. The FAA is issuing
§ 725.17 Applications for extensions of that the NPRM was justified.
this AD to address the unsafe condition
credit. on these products. Request To Identify Proposed AD as
* * * * * DATES: This AD is effective April 28, Interim Action
(b) * * * 2021. Boeing requested that the proposed
(2) * * * AD be identified as interim action
ADDRESSES:
(iv) For the period beginning April 29, because it is working on an updated
2020, and ending on December 31, 2021, Examining the AD Docket
MMEL to provide modified dispatch
the applicant Agent’s own liquidity You may examine the AD docket on relief.
needs. After the aforementioned period, the internet at https:// The FAA agrees with the commenter’s
an Agent is prohibited from submitting www.regulations.gov by searching for request for the reason provided by the
an application for an extension for its and locating Docket No. FAA–2020– commenter. The FAA has revised the
own liquidity needs. 0785; or in person at Docket Operations preamble in this final rule to identify
* * * * * between 9 a.m. and 5 p.m., Monday this AD as interim action.
■ 7. In § 725.18, revise paragraphs (a) through Friday, except Federal holidays.
The AD docket contains this final rule, Request To Clarify Certain Terminology
and (d) to read as follows:
any comments received, and other Boeing requested that throughout the
§ 725.18 Creditworthiness. information. The address for Docket proposed AD the word ‘‘secured’’ be
khammond on DSKJM1Z7X2PROD with RULES
(a) Prior to Facility approval of each Operations is U.S. Department of changed to ‘‘failed’’ when referring to
application of a Regular member for a Transportation, Docket Operations, M– the fuel shutoff valves. The commenter
Facility advance or an Agent member 30, West Building Ground Floor, Room explained that the Minimum Equipment
for a Facility advance for such Agent W12–140, 1200 New Jersey Avenue SE, List (MEL) does not direct operators to
member’s own need (provided such Washington, DC 20590. secure the fuel shutoff valve open; the
Agent may submit an application under FOR FURTHER INFORMATION CONTACT: MEL states that operators are allowed to
§ 725.17(b)(2)(iv) of this part), the Douglas Mansell, Aerospace Engineer, operate (dispatch) an airplane with a
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