Supplemental Lending Limits Program: Technical Correction

 
CONTENT
Federal Register, Volume 85 Issue 191 (Thursday, October 1, 2020)
[Federal Register Volume 85, Number 191 (Thursday, October 1, 2020)]
[Rules and Regulations]
[Pages 61809-61811]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-18937]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 32
[Docket ID OCC-2018-0041]
RIN 1557-AE21
Supplemental Lending Limits Program: Technical Correction
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.
ACTION: Correcting amendment.
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SUMMARY: On July 14, 2020, the Office of the Comptroller of the
Currency (OCC) published in the Federal Register a final rule that,
among other revisions, made technical changes to the OCC's supplemental
lending limits rule. This correcting amendment makes a correction to
those regulations by reinstating two paragraphs to the lending limits
rules that were inadvertently deleted.
DATES: This rule is effective on October 1, 2020.
FOR FURTHER INFORMATION CONTACT: Marta E. Stewart-Bates, 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.
SUPPLEMENTARY INFORMATION:
I. Background and Description of Correcting Amendment
 On July 14, 2020, the OCC published in the Federal Register a final
rule \1\ that made technical changes to the OCC's supplemental lending
limits rules, among other revisions. Specifically, the terms ``small
business loans'' and ``small farm loans or extensions of credit'' were
replaced with the terms ``loans to small businesses'' and ``loans or
extensions of credit to small farms,'' respectively, to conform with
the Call Report instructions. These technical changes were made to the
supplemental lending limits rules in Sec. Sec. 32.7(a)(1), 32.7(a)(2),
and 32.7(d). However, Sec. Sec. 32.7(a)(4) and (a)(5) were
inadvertently deleted by the final rule. This correcting amendment
reinstates Sec. Sec. 32.7(a)(4) and (a)(5).
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 \1\ 85 FR 42630.
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II. Administrative Law Matters
A. Administrative Procedure Act
 The OCC is issuing this correcting amendment without prior notice
and the opportunity for public comment and the delayed effective date
ordinarily prescribed by the Administrative Procedure Act (APA).\2\
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.'' \3\
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 \2\ 5 U.S.C. 553.
 \3\ 5 U.S.C. 553(b)(3)(A).
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 The OCC finds that public notice and comment are unnecessary
because this correcting amendment makes a technical change to correct
an erroneous removal of two paragraphs in the
[[Page 61810]]
supplemental lending limits rule. Therefore, there is good cause to
dispense with the APA prior notice and public comment process.
 The APA also requires a 30-day delayed effective date, except for:
(1) Substantive rules which 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.\4\ As described
above, there is good cause to issue this correcting amendment without a
delayed effective date. Therefore, this correcting amendment is exempt
from the APA's delayed effective date requirement.\5\
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 \4\ 5 U.S.C. 553(d).
 \5\ 5 U.S.C. 553(d)(1).
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B. Congressional Review Act
 For purposes of the Congressional Review Act, the Office of
Management and Budget (OMB) makes a determination as to whether a final
rule constitutes a ``major rule.'' \6\ If a rule is deemed a ``major
rule'' by the OMB, the Congressional Review Act generally provides that
the rule may not take effect until at least 60 days following its
publication.\7\
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 \6\ 5 U.S.C. 801 et seq.
 \7\ 5 U.S.C. 801(a)(3).
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 The Congressional Review Act 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 foreign-based enterprises in domestic and
export markets.\8\
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 \8\ 5 U.S.C. 804(2).
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 The delayed effective date required by the Congressional Review Act
does not apply to ``any rule 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.'' \9\
For the same reasons set forth above, the OCC finds that it has good
cause to adopt this correcting amendment without the delayed effective
date generally prescribed under the Congressional Review Act. As
required by the Congressional Review Act, the OCC will submit the
correcting amendment and other appropriate reports to Congress and the
Government Accountability Office for review.
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 \9\ 5 U.S.C. 808(2).
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C. Riegle Community Development and Regulatory Improvement Act of 1994
 Pursuant to section 302(a) of the Riegle Community Development and
Regulatory Improvement Act (RCDRIA),\10\ 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 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.\11\
For the reasons described above, the OCC finds good cause exists under
section 302 of RCDRIA to publish this correcting amendment with an
immediate effective date. As such, the correcting amendment will be
effective immediately.
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 \10\ 12 U.S.C. 4802(a).
 \11\ 12 U.S.C. 4802.
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D. Regulatory Flexibility Act
 The Regulatory Flexibility Act (RFA) \12\ requires an agency to
consider whether the rules it proposes will have a significant economic
impact on a substantial number of small entities.\13\ 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 OCC has
determined for good cause that general notice and opportunity for
public comment is unnecessary, and, therefore, the OCC is not issuing a
notice of proposed rulemaking. Accordingly, the OCC has concluded that
the RFA's requirements relating to initial and final regulatory
flexibility analysis do not apply.
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 \12\ 5 U.S.C. 601 et seq.
 \13\ Under 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.
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E. Unfunded Mandates
 As a general matter, the Unfunded Mandates Act of 1995 (UMRA) \14\
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.\15\ Therefore,
because the OCC has found good cause to dispense with notice and
comment for this correcting amendment, the OCC has not prepared an
economic analysis of the rule under the UMRA.
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 \14\ 2 U.S.C. 1531 et seq.
 \15\ See 2 U.S.C. 1532(a).
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List of Subjects in 12 CFR Part 32
 National banks, Reporting and recordkeeping requirements.
 For the reasons set out in the preamble, the OCC corrects 12 CFR
part 32 by making the following correcting amendment:
PART 32--LENDING LIMITS
0
1. The authority citation for part 32 continues to read as follows:
 Authority: 12 U.S.C. 1 et seq., 12 U.S.C. 84, 93a, 1462a, 1463,
1464(u), 5412(b)(2)(B), and 15 U.S.C. 1639h.
0
2. Section 32.7 is amended by adding paragraphs (a)(4) and (5) to read
as follows:
Sec. 32.7 Residential real estate loans, loans to small businesses,
and loans or extensions of credit to small farms (``Supplemental
Lending Limits Program'').
 (a) * * *
 (4) The total outstanding amount of a national bank's or savings
association's loans and extensions of credit to one borrower made under
Sec. 32.3(a) and (b), together with loans and extensions of credit to
the borrower made pursuant to paragraphs (a)(1), (2), and (3) of this
section, shall not exceed 25 percent of the bank's or savings
association's capital and surplus.
 (5) The total outstanding amount of a national bank's or savings
association's loans and extensions of credit to all of its borrowers
made pursuant to the supplemental lending limits provided in paragraphs
(a)(1), (2), and (3) of this section may not exceed 100 percent of
[[Page 61811]]
the bank's or saving association's capital and surplus.
* * * * *
Jonathan V. Gould,
Senior Deputy Comptroller and Chief Counsel.
[FR Doc. 2020-18937 Filed 9-30-20; 8:45 am]
BILLING CODE 4810-33-P