Regulatory Capital Rule: Emergency Capital Investment Program (rule, 86 FR 15076, March 22, 2021)
Summary
An interim final rule from the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (FDIC) supporting the Emergency Capital Investment Program (ECIP), added by the Consolidated Appropriations Act, 2021, under which the Department of the Treasury makes capital investments in low- and moderate-income community financial institutions. The rule provides that preferred stock issued under ECIP qualifies as additional tier 1 capital and that subordinated debt issued under ECIP qualifies as tier 2 capital under the agencies’ capital rule. It was published in the Federal Register on March 22, 2021 (Vol. 86, No. 53) and is effective that day, with comments due by May 21, 2021. The same page carries the end of a Department of Homeland Security rule on asylum interviews.
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Cite this document
“Regulatory Capital Rule: Emergency Capital Investment Program (rule, 86 FR 15076, March 22, 2021).”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/regulatory-capital-rule-emergency-capital-investment-program-rule-86-f-776f495b0a/
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15076 Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations
rule does not have sufficient federalism September 23, 2020 through September use the title ‘‘Amendments to the
implications to warrant the preparation 20, 2021: Capital Rule to Facilitate the Emergency
of a federalism summary impact * * * * * Capital Investment Program’’ to
statement. facilitate the organization and
Alejandro Mayorkas, distribution of the comments. You may
G. Executive Order 12988 (Civil Justice Secretary, U.S. Department of Homeland submit comments by any of the
Reform) Security. following methods:
[FR Doc. 2021–05872 Filed 3–19–21; 8:45 am] Federal eRulemaking Portal: Go to
This rule meets the applicable
BILLING CODE 9111–97–P https://www.regulations.gov/. Enter
standards set forth in section 3(a) and ‘‘Docket ID OCC–2021–0002’’ in the
3(b)(2) of Executive Order 12988. Search Box and click ‘‘Search.’’ Public
H. Paperwork Reduction Act DEPARTMENT OF TREASURY comments can be submitted via the
‘‘Comment’’ box below the displayed
This rule does not propose new, or Office of the Comptroller of the document information or by clicking on
revisions to existing, ‘‘collection[s] of Currency the document title and then clicking the
information’’ as that term is defined ‘‘Comment’’ box on the top-left side of
under the Paperwork Reduction Act of 12 CFR Parts 3 and 5 the screen. For help with submitting
1995, Public Law 104–13, 44 U.S.C. effective comments please click on
chapter 35, and its implementing [Docket ID OCC–2021–0002] ‘‘View Commenter’s Checklist.’’ For
regulations, 5 CFR part 1320. As this is RIN 1557–AF09 assistance with the Regulations.gov site,
an extension of a temporary final rule please call (877) 378–5457 (toll free) or
and would only span 180 days, USCIS FEDERAL RESERVE SYSTEM (703) 454–9859 Monday-Friday, 9am-
does not anticipate a need to update the 5pm ET or email regulations@
Form I–589, Application for Asylum 12 CFR Part 217 erulemakinghelpdesk.com.
and for Withholding of Removal, Mail: Chief Counsel’s Office, Attn:
[Regulation Q; Docket No. R–1741 ] Comment Processing, Office of the
despite the existing language on the
Instructions regarding interpreters, Comptroller of the Currency, 400 7th
RIN 7100–AG11
because it will be primarily Street SW, Suite 3E–218, Washington,
rescheduling interviews that were FEDERAL DEPOSIT INSURANCE DC 20219.
cancelled due to COVID–19. USCIS will CORPORATION Hand Delivery/Courier: 400 7th Street
SW, Suite 3E–218, Washington, DC
post updates on its I–589 website,
12 CFR Part 324 20219.
https://www.uscis.gov/i-589, and other Instructions: You must include
asylum and relevant web pages ‘‘OCC’’ as the agency name and ‘‘Docket
RIN 3064–AF73
regarding the new interview ID OCC–2021–0002’’ in your comment.
requirements in this regulation, as well Regulatory Capital Rule: Emergency In general, the OCC will enter all
as provide personal notice to applicants Capital Investment Program comments received into the docket and
via the interview notices issued to publish the comments on the
applicants prior to their interview. AGENCY: Office of the Comptroller of the
Regulations.gov website without
Currency, Treasury (OCC); Board of
List of Subjects in 8 CFR Part 208 change, including any business or
Governors of the Federal Reserve
personal information provided such as
Administrative practice and System (Board); and Federal Deposit
name and address information, email
Insurance Corporation (FDIC).
procedure, Aliens, Immigration, addresses, or phone numbers.
Reporting and recordkeeping ACTION: Interim final rule; request for Comments received, including
requirements. public comment. attachments and other supporting
SUMMARY: In order to support and
materials, are part of the public record
Accordingly, for the reasons set forth
facilitate the timely implementation and and subject to public disclosure. Do not
in the preamble, the Secretary of
acceptance of the Congressionally include any information in your
Homeland Security amends 8 CFR part
authorized Emergency Capital comment or supporting materials that
208 as follows:
Investment Program (ECIP) for the you consider confidential or
PART 208—PROCEDURES FOR Department of the Treasury to make inappropriate for public disclosure.
You may review comments and other
ASYLUM AND WITHHOLDING OF capital investments in low- and
related materials that pertain to this
REMOVAL moderate-income community financial
action by the following method:
institutions, the OCC, Board, and FDIC Go to https://www.regulations.gov/.
■ 1. The authority citation for part 208 (together, the agencies) are issuing an Enter ‘‘Docket ID OCC–2021–0002’’ in
continues to read as follows: interim final rule that provides that the Search box and click ‘‘Search.’’
preferred stock issued under ECIP Click on the ‘‘Documents’’ tab and then
Authority: 8 U.S.C. 1101, 1103, 1158, 1226,
qualifies as additional tier 1 capital and the document’s title. After clicking the
1252, 1282; Title VII of Pub. L. 110–229; 8
that subordinated debt issued under document’s title, click the ‘‘Browse
CFR part 2; Pub. L. 115–218.
ECIP qualifies as tier 2 capital under the Comments’’ tab. Comments can be
■ 2. Section 208.9(h) introductory text is agencies’ capital rule. viewed and filtered by clicking on the
revised to read as follows: DATES: This rule is effective on March ‘‘Sort By’’ drop-down on the right side
22, 2021. Comments must be received
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of the screen or the ‘‘Refine Results’’
§ 208.9 Procedure for interview before an on or before May 21, 2021.
asylum officer. options on the left side of the screen.
ADDRESSES: Supporting materials can be viewed by
* * * * * OCC: Commenters are encouraged to clicking on the ‘‘Documents’’ tab and
(h) Asylum applicant interpreters. For submit comments through the Federal filtered by clicking on the ‘‘Sort By’’
asylum interviews conducted between eRulemaking Portal, if possible. Please drop-down on the right side of the
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Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 15077
screen or the ‘‘Refine Documents OCC: Margot Schwadron, Director, or Program (ECIP or Program) through
Results’’ options on the left side of the Andrew Tschirhart, Risk Expert, Capital which the Department of the Treasury
screen. For assistance with the Policy, (202) 649–6370; or Carl (Treasury) can make capital investments
Regulations.gov site, please call (877) Kaminski, Special Counsel, or Daniel in certain low- and moderate-income
378–5457 (toll free) or (703) 454–9859 Perez, Counsel, Chief Counsel’s Office, community financial institutions. The
Monday–Friday, 9 a.m.–5 p.m. ET or (202) 649–5490, Office of the Act states that the purpose of these
email regulations@ Comptroller of the Currency, 400 7th capital investments is to support the
erulemakinghelpdesk.com. Street SW, Washington, DC 20219. efforts of low- and moderate-income
The docket may be viewed after the Board: Constance Horsley, Deputy community financial institutions to,
close of the comment period in the same Associate Director, (202) 452–5239, among other things, provide loans,
manner as during the comment period. Naima Jefferson, Lead Financial grants, and forbearance for small
Board: You may submit comments, Institution Policy Analyst, (202) 912– businesses, minority-owned businesses,
identified by Docket No. R–1741 and 4613, Senait Kahsay, Senior Financial and consumers in low-income and
RIN No. 7100–AG11, by any of the Institution Policy Analyst II, (202) 245– underserved communities, including
following methods: 4209, Eusebius Luk, Senior Financial persistent poverty counties, which may
Agency Website: http:// Institution Policy Analyst I, (202) 452– be disproportionately impacted by the
www.federalreserve.gov. Follow the 2874, Division of Supervision and economic effects of the Coronavirus
instructions for submitting comments at Regulation; Benjamin McDonough, 2019 (COVID–19) event.2 Treasury’s
https://www.federalreserve.gov/apps/ Associate General Counsel, (202) 452– authority to make capital investments
foia/proposedregs.aspx. 2036, Mark Buresh, Senior Counsel, under ECIP is time limited. The Program
Email: regs.comments@ (202) 452–5270, Mary Watkins, Counsel, will end six months after the date on
federalreserve.gov. Include docket (202) 452–3722, Legal Division, Board of which the national emergency
number and RIN in the subject line of Governors of the Federal Reserve concerning the COVID–19 outbreak
the message. System, 20th and C Streets NW, terminates.3
Fax: (202) 452–3819 or (202) 452– Washington, DC 20551. Under ECIP, a financial institution is
3102. FDIC: Benedetto Bosco, Chief, Capital generally eligible to receive capital
Mail: Ann E. Misback, Secretary, Policy Section, bbosco@fdic.gov; Noah investments from Treasury if it is a low-
Board of Governors of the Federal Cuttler, Senior Policy Analyst, ncuttler@ and moderate-income community
Reserve System, 20th Street and fdic.gov; regulatorycapital@fdic.gov; financial institution, which is defined
Constitution Avenue NW, Washington, Capital Markets Branch, Division of Risk by the Act to include any financial
DC 20551. Management Supervision, (202) 898– institution that is (1) a community
All public comments are available 6888; Gregory Feder, Counsel, gfeder@ development financial institution or
from the Board’s website at http:// fdic.gov; Suzanne Dawley, Counsel, minority depository institution,4 and (2)
www.federalreserve.gov/generalinfo/ sudawley@fdic.gov; Francis Kuo, an insured depository institution, bank
foia/ProposedRegs.cfm as submitted, Counsel, fkuo@fdic.gov; Amanda Ledig, holding company, savings and loan
unless modified for technical reasons or Attorney, aledig@fdic.gov; Supervision holding company, or federally insured
to remove sensitive personally and Legislation Branch, Legal Division, credit union (collectively, eligible
identifiable information at the Federal Deposit Insurance Corporation, banking organizations).
commenter’s request. Public comments 550 17th Street NW, Washington, DC Under ECIP, Treasury can acquire
may also be viewed electronically or in 20429. For the hearing impaired only, senior preferred stock from eligible
paper form in Room 3515, 1801 K Street Telecommunication Device for the Deaf banking organizations (Senior Preferred
NW, Washington, DC 20006 between (TDD), (800) 925–4618. Stock). Additionally, if the Secretary of
9:00 a.m. and 5:00 p.m. on weekdays. SUPPLEMENTARY INFORMATION: the Treasury determines that an eligible
FDIC: You may submit comments banking organization cannot feasibly
Table of Contents issue preferred stock, such as a bank
using any of the following methods:
Agency Website: https:// I. Background organized as an S corporation 5 or
www.fdic.gov/regulations/laws/federal. II. Discussion mutual banking organization, Treasury
III. Request for Comment can acquire subordinated debt
Follow the instructions for submitting IV. Administrative Law Matters
comments on the agency website. instruments (Subordinated Debt) from
A. Administrative Procedure Act such an eligible banking organization.6
Email: comments@fdic.gov. Include B. Congressional Review Act
RIN 3064–AF73 on the subject line of C. Paperwork Reduction Act
Under the Act, Treasury is required to
the message. D. Regulatory Flexibility Act seek to establish the terms of preferred
Mail: James P. Sheesley, Assistant E. Riegle Community Development and stock issued under ECIP to enable such
Executive Secretary, Attention: Regulatory Improvement Act of 1994 instruments to qualify as tier 1 capital
Comments RIN 3064–AF73, Federal F. Unfunded Mandates Reform Act of 1995 under the respective capital rule of the
G. Use of Plain Language OCC, Board, and FDIC (together, the
Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429. I. Background agencies).7
Hand Delivery: Comments may be On March 4, 2021, Treasury
On December 27, 2020, the published the terms of the Senior
hand delivered to the guard station at Consolidated Appropriations Act,
the rear of the 550 17th Street NW 2021,1 was signed into law and added 2 Id.
building (located on F Street) on a new Section 104A to the Community 3 Id.
business days between 7 a.m. and 5 p.m. Development Banking and Financial 4 The terms ‘‘Community Development Financial
Public Inspection: All comments
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Institutions Act of 1994 (the Act). Institution’’ and ‘‘Minority Depository Institution’’
received, including any personal Section 104A of the Act authorizes the are defined in section 104A of the Act.
5 An S corporation is corporation that has elected
information provided, will be posted Secretary of the Treasury to establish Subchapter S corporation status under the Internal
generally without change to https:// the Emergency Capital Investment Revenue Code.
www.fdic.gov/regulations/laws/federal. 6 Section 104A(d)(5)(B) of the Act.
FOR FURTHER INFORMATION CONTACT: 1 Public Law 116–260. 7 Section 104A(f) of the Act.
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15078 Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations
Preferred Stock and Subordinated Debt.8 characteristics that are similar to those added to a subordinated debt document
As described in the terms published by of instruments that qualify under the pursuant to requirements imposed by
Treasury, Senior Preferred Stock issued agencies’ capital rule as additional tier the Treasury Department for purposes of
under ECIP will be noncumulative, 1 capital and tier 2 capital, respectively. ECIP will not be considered, under
perpetual preferred stock that is senior As discussed above, the Act directs the paragraph (d)(2) of section 5.47, to
to the issuer’s common stock and pari Secretary of the Treasury to seek to unduly restrict or otherwise act to
passu with (or, in some cases, senior to) establish the terms of the Senior unduly limit the authority of a national
the issuer’s most senior class of existing Preferred Stock to enable these bank or interfere with the OCC’s
preferred stock. Subordinated Debt instruments to receive ‘‘Tier 1’’ capital supervision of the national bank.
issued under ECIP will be unsecured treatment. Further, the establishment of
III. Request for Comment
subordinated debt. The Subordinated ECIP and the capital investments being
Debt will rank junior to all other debt made thereunder help support the The agencies seek comment on all
of the issuer except that it will rank efforts of low- and moderate-income aspects of this interim final rule. In
senior to mutual capital certificates or community financial institutions to particular, the agencies seek comment
similar instruments issued by a mutual provide financial intermediary services on the regulatory capital treatment of
banking organization and to any equity in low-income and underserved the Senior Preferred Stock and
instruments issued by an S corporation. communities. To facilitate Subordinated Debt issued under ECIP
Under the terms of Senior Preferred implementation of ECIP, the agencies and on the following specific question:
Stock, participating eligible banking are revising the capital rule to provide Question: For banking organizations
organizations will not be required to pay that the Senior Preferred Stock will subject to the Board’s Small Bank
dividends until two years after issuance qualify as additional tier 1 capital and Holding Company and Savings and
of the Senior Preferred Stock, and then Subordinated Debt will qualify as tier 2 Loan Holding Company Policy
will be subject to a noncumulative capital.11 12 These revisions are based on Statement, what are the advantages and
dividend with a rate not to exceed 2 the terms and conditions of the Senior disadvantages of including Senior
percent that may fluctuate based on Preferred Stock and Subordinated Debt Preferred Stock as equity and
certain lending growth criteria applied provided in the Senior Preferred Stock Subordinated Debt as debt for purposes
to the issuer. A participating eligible term sheet and the Subordinated Debt of meeting the debt-to-equity ratio?
banking organization is prohibited from term sheet published by the U.S. What are the advantages and
paying dividends under certain Department of the Treasury on March 4, disadvantages of including Senior
circumstances, including if the 2021. If the terms and conditions for the Preferred Stock subject to the limits
participating eligible banking Senior Preferred Stock or Subordinated described in the Policy Statement as
organization determines that the Debt are modified in the future such redeemable preferred stock? What are
payment would be detrimental to the that they differ materially from the the advantages and disadvantages of
financial health of the institution. Under terms and conditions provided in the excluding Subordinated Debt from debt
the terms of the Subordinated Debt, term sheets, the agencies may reevaluate for purposes of the debt-to-equity ratio?
interest payments on the Subordinated whether such capital treatment remains IV. Administrative Law Matters
Debt would be subject to determinants appropriate.
and constraints similar to those In addition, the OCC is adding A. Administrative Procedure Act
described above, but the interest language to its licensing rule, which sets The agencies are issuing the interim
payments would be cumulative and forth certain requirements applicable to final rule without prior notice and the
deferrable. subordinated debt issued by a national opportunity for public comment and the
The Act requires Treasury to establish bank. Paragraph (d)(2) of section 5.47 30-day delayed effective date ordinarily
restrictions on executive compensation, prohibits a national bank from including prescribed by the Administrative
share buybacks, and dividend payments in a subordinated debt note any Procedure Act (APA).13 Pursuant to
for issuers of capital instruments issued provision or covenant that unduly section 553(b)(B) of the APA, general
under ECIP, as well as restrictions on restricts or otherwise acts to unduly notice and the opportunity for public
conflicts of interest.9 The Act permits limit the authority of a national bank or comment are not required with respect
Treasury to establish other terms and interferes with the OCC’s supervision of to a rulemaking when an ‘‘agency for
conditions for participation in ECIP. On the national bank. To facilitate the good cause finds (and incorporates the
March 4, 2021, Treasury issued an ability of a national bank to issue finding and a brief statement of reasons
interim final rule that established subordinated debt through ECIP, the therefore in the rules issued) that notice
restrictions on executive compensation, OCC is adding new paragraph (j) to and public procedure thereon are
capital distributions, and luxury section 5.47. This new paragraph impracticable, unnecessary, or contrary
expenditures for ECIP.10 clarifies that provisions and covenants to the public interest.’’ 14
As discussed above, the purpose of
II. Discussion 11 See 12 CFR 3.20 (OCC); 12 CFR 217.20 (Board);
capital investments made under ECIP is
The Senior Preferred Stock and 12 CFR 324.20 (FDIC). to support the efforts of low- and
12 Certain small bank holding companies and
Subordinated Debt will feature moderate-income community financial
savings and loan holdings companies are subject to
the Board’s Small Bank Holding Company and institutions and the communities they
8 The term sheets for the Senior Preferred Stock
Savings and Loan Holding Company Policy serve, which may be disproportionately
and Subordinated Debt may be found on Treasury’s Statement (12 CFR part 225, app. C) rather than the
website. For a complete description of the terms of
impacted by the economic effects of the
Board’s capital rule. The Policy Statement requires
the instruments, see https://home.treasury.gov/ subject companies to maintain specified debt-to-
COVID–19 event. The Act also requires
policy-issues/cares/emergency-capital-investment- equity ratios and specifies how certain types of debt Treasury to seek to establish the terms
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program. instruments and preferred stock instruments are to of senior preferred stock instruments
9 Section 104A(h) of the Act.
be included for purposes of the debt-to-equity issued under the Program such that
10 See Emergency Capital Investment Program— ratios. For purposes of the Policy Statement, Senior
Restrictions on Executive Compensation, Share Preferred Stock issued under ECIP is redeemable
these instruments would be considered
Buybacks, and Dividends, https:// preferred stock, which is subject to certain
13 5 U.S.C. 553.
home.treasury.gov/system/files/136/ECIP-interim- limitations under the Policy Statement, and
final-rule.pdf. Subordinated Debt issued under ECIP is debt. 14 5 U.S.C. 553(b)(B).
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Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 15079
additional tier 1 capital under the or is likely to result in (A) an annual proposed rulemaking pursuant to 5
agencies’ capital rule. effect on the economy of $100,000,000 U.S.C. 553(b). As discussed previously,
The agencies believe that the public or more; (B) a major increase in costs or consistent with section 553(b)(B) of the
interest is best served by implementing prices for consumers, individual APA, the agencies have determined for
the interim final rule immediately upon industries, Federal, State, or local good cause that general notice and
publication in the Federal Register. The government agencies or geographic opportunity for public comment is
interim final rule will facilitate regions; or (C) significant adverse effects unnecessary, and therefore the agencies
implementation of ECIP by providing on competition, employment, are not issuing a notice of proposed
certainty that the Senior Preferred Stock investment, productivity, innovation, or rulemaking. Accordingly, the agencies
may be included in additional tier 1 on the ability of United States-based have concluded that the RFA’s
capital and Subordinated Debt may be enterprises to compete with foreign- requirements relating to initial and final
included in tier 2 capital under the based enterprises in domestic and regulatory flexibility analysis do not
capital rule. As noted above, Treasury’s export markets. apply.
authority to make new capital For the same reasons set forth above, Nevertheless, the agencies seek
investments in ECIP will end six the agencies are adopting the interim comment on whether, and the extent to
months after the date on which the final rule without the delayed effective which, the interim final rule would
national emergency concerning the date generally prescribed under the affect a significant number of small
COVID–19 outbreak declared by the CRA. The delayed effective date entities.
President on March 13, 2020, under the required by the CRA does not apply to
National Emergencies Act terminates.15 any rule for which an agency for good E. Riegle Community Development and
For these reasons, the agencies find that cause finds (and incorporates the Regulatory Improvement Act of 1994
there is good cause consistent with the finding and a brief statement of reasons Section 302(a) of the Riegle
public interest to issue the rule without therefor in the rule issued) that notice Community Development and
advance notice and comment.16 and public procedure thereon are Regulatory Improvement Act of 1994
The APA also requires a 30-day impracticable, unnecessary, or contrary (RCDRIA) 25 requires that each federal
delayed effective date, except for (1) to the public interest.21 banking agency, in determining the
substantive rules that grant or recognize As required by the CRA, the agencies effective date and administrative
an exemption or relieve a restriction; (2) will submit the interim final rule and compliance requirements for new
interpretative rules and statements of other appropriate reports to Congress regulations that impose additional
policy; or (3) as otherwise provided by and the Government Accountability reporting, disclosure, or other
the agency for good cause.17 Because the Office for review. requirements on insured depository
interim final rule relieves a restriction, C. Paperwork Reduction Act institutions, each federal banking
the interim final rule is exempt from the agency must consider, consistent with
APA’s delayed effective date The Paperwork Reduction Act of 1995 principles of safety and soundness and
requirement.18 (PRA) states that no agency may the public interest, any administrative
In addition, the agencies find good conduct or sponsor, nor is the burdens that regulations would place on
cause to publish the interim final rule respondent required to respond to, an depository institutions, including small
with an immediate effective date for the information collection unless it displays depository institutions, and customers
same reasons set forth above under the a currently valid OMB control of depository institutions, as well as the
discussion of section 553(b)(B) of the number.22 The agencies have reviewed benefits of such regulations.
APA. While the agencies believe that this interim final rule and have
determined that this interim final rule In addition, section 302(b) of RCDRIA
there is good cause to issue the interim requires new regulations and
final rule without advance notice and does not introduce any new information
collections or revise any existing amendments to regulations that impose
comment and with an immediate additional reporting, disclosures, or
effective date, as noted, the agencies are information collections pursuant to the
PRA for the agencies. In addition, the other new requirements on insured
interested in the views of the public on depository institutions generally to take
all aspects of the interim final rule. Board has reviewed this interim final
rule pursuant to authority delegated by effect on the first day of a calendar
B. Congressional Review Act OMB. Therefore, no submissions will be quarter that begins on or after the date
made by the agencies to OMB for on which the regulations are published
For purposes of Congressional Review
review. in final form.26 The agencies have
Act (CRA), the Office of Management
determined that the final rule would not
and Budget (OMB) makes a D. Regulatory Flexibility Act impose additional reporting, disclosure,
determination as to whether a final rule
The Regulatory Flexibility Act or other requirements; therefore, the
constitutes a ‘‘major’’ rule.19 If a rule is
(RFA) 23 requires an agency to consider requirements of the RCDRIA do not
deemed a ‘‘major rule’’ by the OMB, the
whether the rules it proposes will have apply.
CRA generally provides that the rule
may not take effect until at least 60 days a significant economic impact on a F. Unfunded Mandates Reform Act of
following its publication.20 substantial number of small entities.24 1995
The CRA defines a ‘‘major rule’’ as The RFA applies only to rules for which
an agency publishes a general notice of The OCC analyzes proposed rules for
any rule that the Administrator of the
the factors listed in Section 202 of the
Office of Information and Regulatory
21 5 U.S.C. 808. Unfunded Mandates Reform Act of 1995
Affairs of the OMB finds has resulted in
22 44 U.S.C. 3501–3521. before promulgating a final rule for
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15 Public Law 116–260.
23 5 U.S.C. 601 et seq. which a general notice of proposed
16 5 U.S.C. 553(b)(B).
24 Under regulations issued by the Small Business
rulemaking was published.27 As
17 5 U.S.C. 553(d).
Administration, a small entity includes a depository
institution, bank holding company, or savings and
18 5 U.S.C. 553(d)(1). 25 12 U.S.C. 4802(a).
loan holding company with total assets of $600
19 5 U.S.C. 801 et seq. 26 12 U.S.C. 4802.
million or less and trust companies with total assets
20 5 U.S.C. 801(a)(3). of $41.5 million or less. See 13 CFR 121.201. 27 2 U.S.C. 1532.
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15080 Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations
discussed above, the OCC has Department of the Treasury Authority: 12 U.S.C. 1 et seq., 24a, 35, 93a,
determined that publication of a general 214a, 215, 215a, 215a–1, 215a–2, 215a–3,
Office of the Comptroller of the 215c, 371d, 481, 1462a, 1463, 1464, 1817(j),
notice of proposed rulemaking is not in Currency
the public interest. 1831i, 1831u, 2901 et seq., 3101 et seq., 3907,
Authority and Issuance and 5412(b)(2)(B).
G. Use of Plain Language ■ 4. Section 5.47 is amended by adding
For the reasons stated in the joint
Section 722 of the Gramm-Leach- preamble, the Office of the Comptroller paragraph (j):
Bliley Act 28 requires the Federal of the Currency amends chapter I of § 5.47 Subordinated debt issued by a
banking agencies to use plain language Title 12 of the Code of Federal national bank.
in all proposed and final rules Regulations as follows:
* * * * *
published after January 1, 2000. In light
PART 3—CAPITAL ADEQUACY (j) Subordinated debt issued under the
of this requirement, the agencies have
STANDARDS Emergency Capital Investment Program.
sought to present the interim final rule
A provision or covenant included in a
in a simple and straightforward manner
■ 1. The authority citation for part 3 subordinated debt document does not
and invite comment on the use of plain
continues to read as follows: unduly restrict or otherwise act to
language. For example:
unduly limit the authority of a national
• Is the material organized to suit Authority: 12 U.S.C. 93a, 161, 1462,
bank or interfere with the OCC’s
1462a, 1463, 1464, 1818, 1828(n), 1828 note,
your needs? If not, how could the supervision of the national bank, for
1831n note, 1835, 3907, 3909, 5412(b)(2)(B),
agencies present the interim final rule and Pub. L. 116–136, 134 Stat. 281. purposes of paragraph (d)(2) of this
more clearly? section, if the provision or covenant is
■ 2. Section 3.20 is amended by:
• Are the requirements in the interim included pursuant to requirements
■ a. Redesignating footnotes 11 through
final rule clearly stated? If not, how imposed by the U.S. Department of the
15 as footnotes 1 through 5, footnote 16
could the interim final rule be more Treasury and the subordinated debt is
as footnote 7, and footnotes 17 through
clearly stated? issued under the U.S. Department of the
20 as footnotes 8 through 11,
• Does the interim final rule contain respectively; Treasury’s Emergency Capital
technical language or jargon that is not ■ b. Redesignating paragraph (c)(3) as Investment Program pursuant to section
clear? If so, which language requires paragraph (c)(3)(i); 104A of the Community Development
clarification? ■ c. Adding paragraph (c)(3)(ii); Banking and Financial Institutions Act
• Would a different format (grouping ■ d. Redesignating paragraph (d)(4) as of 1994, added by the Consolidated
and order of sections, use of headings, paragraph (d)(4)(i); and Appropriations Act, 2021.
paragraphing) make the interim final ■ e. Adding paragraph (d)(4)(ii).
The additions and revisions read as Board of Governors of the Federal
rule easier to understand? If so, what
follows: Reserve System
changes would achieve that?
• Is this section format adequate? If § 3.20 Capital components and eligibility
12 CFR Chapter II
not, which of the sections should be criteria for regulatory capital instruments. Authority and Issuance
changed and how? * * * * * For the reasons stated in the
• What other changes can the (c) * * * preamble, the Board of Governors of the
agencies incorporate to make the (3) * * * Federal Reserve System amends 12 CFR
interim final rule easier to understand? (ii) Any preferred stock instruments chapter II as follows:
issued under the U.S. Department of the
List of Subjects
Treasury’s Emergency Capital PART 217—CAPITAL ADEQUACY OF
12 CFR Part 3 Investment Program pursuant to section BANK HOLDING COMPANIES,
104A of the Community Development SAVINGS AND LOAN HOLDING
Administrative practice and
Banking and Financial Institutions Act COMPANIES, AND STATE MEMBER
procedure, Capital, National banks,
of 1994, added by the Consolidated BANKS (REGULATION Q)
Risk.
Appropriations Act, 2021.6
12 CFR Part 5 * * * * * ■ 5. The authority citation for part 217
(d) * * * continues to read as follows:
Administrative practice and
(4) * * * Authority: 12 U.S.C. 248(a), 321–338a,
procedure, Federal savings associations, (ii) Any debt instruments issued 481–486, 1462a, 1467a, 1818, 1828, 1831n,
National banks, Reporting and under the U.S. Department of the 1831o, 1831p–1, 1831w, 1835, 1844(b), 1851,
recordkeeping requirements, Securities. Treasury’s Emergency Capital 3904, 3906–3909, 4808, 5365, 5368, 5371,
12 CFR Part 217 Investment Program pursuant to section 5371 note, and sec. 4012, Pub. L. 116–136,
104A of the Community Development 134 Stat. 281.
Administrative practice and Banking and Financial Institutions Act ■ 6. Section 217.20 is amended by:
procedure, Banks, Banking, Capital, of 1994, added by the Consolidated ■ a. Redesignating paragraph (c)(3) as
Federal Reserve System, Holding Appropriations Act, 2021.12 paragraph (c)(3)(i);
companies. ■ b. Adding paragraph (c)(3)(ii);
* * * * *
12 CFR Part 324 ■ c. Redesignating paragraph (d)(4) as
PART 5—RULES, POLICIES, AND paragraph (d)(4)(i); and
Administrative practice and PROCEDURES FOR CORPORATE ■ d. Adding paragraph (d)(4)(ii).
procedure, Banks, Banking, Confidential ACTIVITIES The additions and revisions read as
jbell on DSKJLSW7X2PROD with RULES
business information, Investments, follows:
Reporting and recordkeeping ■ 3. The authority citation for part 5
requirements, Savings associations. continues to read as follows: § 217.20 Capital components and eligibility
criteria for regulatory capital instruments.
28 Public Law 106–102, 113 Stat. 1338, 1471, 12 6 Public Law 116–260. * * * * *
U.S.C. 4809. 12 Public Law 116–260. (c) * * *
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Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 15081
(3) * * * (c) * * * effective no earlier than the expiration
(ii) Any preferred stock instrument (3) * * * of 30 days after publication in the
issued under the U.S. Department of the (ii) Any preferred stock instruments Federal Register during which either or
Treasury’s Emergency Capital issued under the U.S. Department of the both Houses of Congress are in session.
Investment Program pursuant to section Treasury’s Emergency Capital Pursuant to 12 U.S.C. 2252(c)(1), FCA
104A of the Community Development Investment Program pursuant to section will publish notification of the effective
Banking and Financial Institutions Act 104A of the Community Development date in the Federal Register.
of 1994, added by the Consolidated Banking and Financial Institutions Act ADDRESSES: For accuracy and efficiency
Appropriations Act, 2021.16 of 1994, added by the Consolidated reasons, please submit comments by
* * * * * Appropriations Act, 2021.17 email or through FCA’s website. We do
(d) * * * * * * * * not accept comments submitted by
(4) * * * (d) * * * facsimiles (fax), as faxes are difficult for
(ii) Any debt instrument issued under (4) * * * us to process and achieve compliance
the U.S. Department of the Treasury’s (ii) Any debt instruments issued with section 508 of the Rehabilitation
Emergency Capital Investment Program under the U.S. Department of the Act of 1973. Please do not submit your
pursuant to section 104A of the Treasury’s Emergency Capital comment multiple times via different
Community Development Banking and Investment Program pursuant to section methods. You may submit comments by
Financial Institutions Act of 1994, 104A of the Community Development any of the following methods:
added by the Consolidated Banking and Financial Institutions Act • Email: Send us an email at reg-
Appropriations Act, 2021.21 of 1994, added by the Consolidated comm@fca.gov.
* * * * * Appropriations Act, 2021.23 • FCA Website: http://www.fca.gov.
* * * * * Click inside the ‘‘I want to. . .’’ field
Federal Deposit Insurance Corporation near the top of the page; select
Blake J. Paulson,
12 CFR Chapter III ‘‘comment on a pending regulation’’
Acting Comptroller of the Currency. from the dropdown menu; and click
Authority and Issuance
By order of the Board of Governors of the ‘‘Go.’’ This takes you to an electronic
For the reasons stated in the Federal Reserve System. public comment form.
preamble, the Federal Deposit Insurance Ann Misback, • Mail: Kevin J. Kramp, Director,
Corporation amends chapter III of Title Secretary of the Board. Office of Regulatory Policy, Farm Credit
12 of the Code of Federal Regulations as Administration, 1501 Farm Credit Drive,
Federal Deposit Insurance Corporation.
follows: McLean, VA 22102–5090.
By order of the Board of Directors.
You may review copies of comments
PART 324—CAPITAL ADEQUACY OF Dated at Washington, DC, on or about
we receive on our website at http://
FDIC–SUPERVISED INSTITUTIONS March 5, 2021.
www.fca.gov. Once you are on the
James P. Sheesley,
■ 7. The authority citation for part 324
website, click inside the ‘‘I want to
Assistant Executive Secretary. . . .’’ field near the top of the page;
continues to read as follows: [FR Doc. 2021–05443 Filed 3–19–21; 8:45 am] select ‘‘find comments on a pending
Authority: 12 U.S.C. 1815(a), 1815(b), BILLING CODE 4810–33–P; 6714–01–P; 6210–01–P regulation’’ from the dropdown menu;
1816, 1818(a), 1818(b), 1818(c), 1818(t), and click ‘‘Go.’’ This will take you to the
1819(Tenth), 1828(c), 1828(d), 1828(i),
1828(n), 1828(o), 1831o, 1835, 3907, 3909,
Comment Letters page where you can
FARM CREDIT ADMINISTRATION select the regulation for which you
4808; 5371; 5412; Pub. L. 102–233, 105 Stat.
1761, 1789, 1790 (12 U.S.C. 1831n note); Pub. would like to read the public comments.
12 CFR Part 627
L. 102–242, 105 Stat. 2236, 2355, as amended We will show your comments as
by Pub. L. 103–325, 108 Stat. 2160, 2233 (12 RIN 3052–AD46 submitted, including any supporting
U.S.C. 1828 note); Pub. L. 102–242, 105 Stat. data provided, but for technical reasons
2236, 2386, as amended by Pub. L. 102–550, Title IV Conservators and Receivers we may omit items such as logos and
106 Stat. 3672, 4089 (12 U.S.C. 1828 note); special characters. Identifying
Pub. L. 111–203, 124 Stat. 1376, 1887 (15 AGENCY: Farm Credit Administration.
information that you provide, such as
U.S.C. 78o–7 note); Pub. L. 115–174; section ACTION: Direct final rule.
phone numbers and addresses, will be
4014 § 201, Pub. L. 116–136, 134 Stat. 281
(15 U.S.C. 9052). SUMMARY: The Farm Credit publicly available. However, we will
Administration (FCA, we, or our) issues attempt to remove email addresses to
■ 8. Amend § 324.20 by: help reduce internet spam. You may
this direct final rule to repeal certain
■ a. Redesignating footnotes 17 through also review comments at our office in
regulations in part 627 that have been
21 as footnotes 18 through 22; superseded by section 5412 of the McLean, Virginia. Please call us at (703)
■ b. Redesignating paragraph (c)(3) as 883–4056 or email us at reg-comm@
Agricultural Improvement Act of 2018
paragraph (c)(3)(i); fca.gov to make an appointment.
(2018 Farm Bill), which strengthens,
■ c. Adding paragraph (c)(3)(ii);
clarifies, and updates the authorities of FOR FURTHER INFORMATION CONTACT:
■ d. Redesignating paragraph (d)(4) as
the Farm Credit System Insurance Technical information: Ryan Leist,
paragraph (d)(4)(i); and
Corporation (FSCIC or Insurance LeistR@fca.gov, Senior Accountant, or
■ e. Adding paragraph (d)(4)(ii).
Corporation) to act as a conservator or Jeremy R. Edelstein, EdelsteinJ@fca.gov,
The additions and revisions read as
receiver of a Farm Credit System (FCS Associate Director, Finance and Capital
follows:
or System) institution. Markets Team, Office of Regulatory
jbell on DSKJLSW7X2PROD with RULES
§ 324.20 Capital components and eligibility DATES: If no significant adverse Policy, Farm Credit Administration,
criteria for regulatory capital instruments. comment is received on or before April McLean, VA 22102–5090, (703) 883–
* * * * * 21, 2021, this regulation shall become 4414, TTY (703) 883–4056 or
ORPMailbox@fca.gov; or
16 Public Law 116–260. 17 Public Law 116–260. Legal information: Richard Katz,
21 Public Law 116–260. 23 Public Law 116–260. KatzR@fca.gov, Senior Counsel, Office
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- FR-2021-03-22_2021-05443.pdf
- Size
- 301,963 bytes
- SHA-256
- da0ad2f59712f8f21c3f8632646bbb0ec952be2e0472b24c0df396d360c57e49
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- FR-2021-03-22_2021-05443.pdf
- Original
- www.govinfo.gov