Unknown. Final rule

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--- schema: federal-register doc_type: fedreg source_file: FR-2015-11-24.xml --- 80 226 Tuesday, November 24, 2015 Contents Agriculture Agriculture Department See Forest Service Alcohol Tobacco Tax Alcohol and Tobacco Tax and Trade Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 73269-73271 2015-29879 Antitrust Division Antitrust Division NOTICES Proposed Final Judgments and Competitive Impact Statements: United States, et al. v.

Springleaf Holdings, Inc., et al., 73212-73229 2015-29895 Consumer Financial Protection Bureau of Consumer Financial Protection NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 73169-73170 2015-29815 2015-29816 2015-29818 Centers Disease Centers for Disease Control and Prevention NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 73188-73191 2015-29866 2015-29867 Requests for Nominations: Community Preventive Services Task Force, 73191-73193 2015-29882 Centers Medicare Centers for Medicare & Medicaid Services RULES Medicare Program:

Comprehensive Care for Joint Replacement Payment Model for Acute Care Hospitals Furnishing Lower Extremity Joint Replacement Services, 73274-73554 2015-29438 Coast Guard Coast Guard RULES Ballast Water Management Reporting and Recordkeeping, 73105-73115 2015-29848 Safety Zones: Delaware River; New Castle, DE, 73115-73117 2015-29835 PROPOSED RULES Regulated Navigation Areas: Reporting Requirements for Barges Loaded with Certain Dangerous Cargoes, Inland Rivers, Eighth Coast Guard District;

Stay Expiring, 73156 2015-29714 NOTICES Meetings: Merchant Mariner Medical Advisory Committee's Response to Task Statement 1, Navigation and Vessel Inspection Circular 04-08 Revision, 73199-73200 2015-29837 Requests for Nominations: Merchant Mariner Medical Advisory Committee, 73198-73199 2015-29836 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration See Patent and Trademark Office Copyright Royalty Board Copyright Royalty Board RULES Cost of Living Adjustment for Performance of Musical Compositions by Colleges and Universities, 73117-73118 2015-29862 Cost of Living Adjustment to Satellite Carrier Compulsory License Royalty Rates, 73118-73119 2015-29863 Defense Department Defense Department NOTICES Non-Foreign Overseas Per Diem Rates, 73171-73181 2015-29875 Education Department Education Department NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Natural Experiments and Model Career-Focused Schools: An Environmental Scan, 73182 2015-29847 Energy Department Energy Department NOTICES Applications to Export Electric Energy: MAG Energy Solutions, Inc., 73182-73183 2015-29885 Environmental Protection Environmental Protection Agency RULES Air Quality State Implementation Plans; Approvals and Promulgations: Maine; Repeal of the General Conformity Provision, 73119-73122 2015-29825 PROPOSED RULES Air Quality State Implementation Plans;

Approvals and Promulgations: California; Disapproval of California Air Plan Revisions, South Coast Air Quality Management District, 73156-73160 2015-29802 Maine; Repeal of the Maine's General Conformity Provision, 73160-73161 2015-29824 NOTICES Draft Integrated Science Assessment for Sulfur Oxides—Health Criteria, 73183-73184 2015-29800 Federal Aviation Federal Aviation Administration RULES Airworthiness Directives: Airbus Airplanes, 73092-73096, 73099-73103 2015-28886 2015-29702 ATR—GIE Avions de Transport Regional Airplanes, 73096-73099 2015-29682 Establishment of Class E Airspace:

Newberry, MI, 73103-73104 2015-29704 PROPOSED RULES Airworthiness Directives: Turbomeca S.A. Turboshaft Engines, 73147-73150 2015-29747 2015-29748 Proposed Establishment of Class E Airspace: South Bend, WA, 73152-73153 2015-29788 South Naknek, AK, 73150-73151 2015-29789 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: B4UFLY Smartphone App, 73265 2015-29924 Dealer's Aircraft Registration Certificate Application, 73266 2015-29913 Operating Requirements:

Commuter and On-Demand Operation, 73267 2015-29922 Pilot Schools—FAR 141, 73268 2015-29923 Noise Compatibility Program; Approvals: Ted Stevens Anchorage International Airport and Lake Hood Seaplane Base Anchorage, AK, 73266-73267 2015-29916 Federal Communications Federal Communications Commission PROPOSED RULES Business Data Services (Also Referred to as Special Access Services): Wireline Competition Bureau; Comment and Reply Comment Deadline Extensions, 73161 2015-29906 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 73185-73186 2015-29850 Meetings: Federal Communications Commission, 73184-73185 2015-29849 Federal Deposit Federal Deposit Insurance Corporation RULES Treatment of Financial Assets Transferred in Connection with a Securitization or Participation, 73087-73090 2015-29822 Federal Housing Finance Agency Federal Housing Finance Agency RULES Stress Testing of Regulated Entities, 73090-73092 2015-29861 Federal Maritime Federal Maritime Commission NOTICES Complaints:

Igor Ovchinnikov, Irina Rzaeva, and Denis Nekipelov v. Michael Hitrinov, Empire United Lines Co., Inc., and CarCont Ltd., 73186-73187 2015-29856 Federal Railroad Federal Railroad Administration RULES Best Practices for Designing Vision Field Tests for Locomotive Engineers or Conductors, 73122-73128 2015-29640 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 73268-73269 2015-29892 Federal Reserve Federal Reserve System NOTICES Changes in Bank Control:

Acquisitions of Shares of a Bank or Bank Holding Company, 73187 2015-29869 Fish Fish and Wildlife Service NOTICES Permits: Endangered Species, 73207-73208 2015-29864 Food and Drug Food and Drug Administration RULES New Animal Drugs in Genetically Engineered Animals; opAFP-GHc2 Recombinant Deoxyribonucleic Acid Construct, 73104-73105 2015-29902 PROPOSED RULES Food Additive Petitions, Animal Use: BASF Corp., 73153 2015-29832 NOTICES Guidance: Voluntary Labeling Indicating Whether Food Has or Has Not Been Derived From Genetically Engineered Atlantic Salmon, 73193-73194 2015-29904 Voluntary Labeling Indicating Whether Foods Have or Have Not Been Derived from Genetically Engineered Plants, 73194-73198 2015-29903 Forest Forest Service NOTICES Environmental Impact Statements;

Availability, etc.: Trinity Post Fire Hazard Reduction and Salvage, Shasta-Trinity National Forest, CA, 73162-73164 2015-29878 Meetings: Francis Marion-Sumter Resource Advisory Committee, 73162 2015-29877 General Services General Services Administration NOTICES 2016 Presidential Transition Directory, 73187 2015-29920 Agency Information Collection Activities; Proposals, Submissions, and Approvals: Simplifying Federal Award Reporting, 73187-73188 2015-29896 Health and Human Health and Human Services Department See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Food and Drug Administration See National Institutes of Health Homeland Homeland Security Department See Coast Guard See U.S.

Citizenship and Immigration Services Housing Housing and Urban Development Department NOTICES Statutorily Mandated Designation of Difficult Development Areas and Qualified Census Tracts for 2016, 73201-73207 2015-29953 Indian Affairs Indian Affairs Bureau NOTICES Indian Gaming: Extension of Tribal-State Class III Gaming Compact (Yankton Sioux Tribe and the State of South Dakota), 73208 2015-29911 Interior Interior Department See Fish and Wildlife Service See Indian Affairs Bureau See Reclamation Bureau International Trade Adm International Trade Administration NOTICES Requests for Applications:

International Buyer Program Calendar Year 2017, 73164-73166 2015-29859 International Buyer Program Select Service for Calendar Year 2017, 73166-73168 2015-29858 International Trade Com International Trade Commission NOTICES Investigations; Determinations, Modifications, and Rulings, etc.: Certain Footwear Products, 73210-73211 2015-29805 Certain Laser Abraded Denim Garments, 73209-73210 2015-29846 Certain Marine Sonar Imaging Systems, Products Containing the Same, and Components Thereof, 73211-73212 2015-29857 Justice Department Justice Department See Antitrust Division See Prisons Bureau Labor Department Labor Department See Occupational Safety and Health Administration Library Library of Congress See Copyright Royalty Board National Institute National Institutes of Health NOTICES Meetings:

Center for Scientific Review, 73198 2015-29853 National Institute of Allergy and Infectious Diseases, 73198 2015-29854 National Oceanic National Oceanic and Atmospheric Administration RULES Atlantic Highly Migratory Species: Smoothhound Shark and Atlantic Shark Management Measures, 73128-73146 2015-29516 Takes of Marine Mammals Incidental to Specified Activities: U.S. Navy Training and Testing Activities in the Northwest Training and Testing Study Area, 73556-73629 2015-28894 NOTICES Meetings:

Pacific Fishery Management Council, 73168 2015-29891 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Facility Operating Licenses: Applications and Amendments Involving Proposed No Significant Hazards Considerations, etc., 73232-73245 2015-29696 Meetings: Advisory Committee On Reactor Safeguards, 73229-73230 2015-29880 Meetings; Sunshine Act, 73232 2015-30004 Site Release: ZionSolutions, LLC, Zion Nuclear Power Station, Units 1 and 2, 73230-73232 2015-29881 Occupational Safety Health Adm Occupational Safety and Health Administration NOTICES Charter Renewals:

Federal Advisory Council on Occupational Safety and Health, 73229 2015-29905 Patent Patent and Trademark Office NOTICES Patent Term Extensions: U.S. Patent No. 5,808,146; fluciclovine (18F), 73168-73169 2015-29887 Postal Regulatory Postal Regulatory Commission NOTICES Market Dominant Price Adjustments, 73245-73246 2015-29833 Presidio Presidio Trust NOTICES Meetings: Presidio Institute Advisory Council, 73246-73247 2015-29873 Prisons Prisons Bureau PROPOSED RULES Infectious Disease Management:

Voluntary and Involuntary Testing, 73153-73156 2015-29790 Reclamation Reclamation Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 73208-73209 2015-29872 Securities Securities and Exchange Commission NOTICES Applications: ETF Series Solutions and U.S. Global Investors, Inc., 73262-73263 2015-29868 Self-Regulatory Organizations; Proposed Rule Changes: BATS Exchange, Inc., 73247-73252 2015-29843 C2 Options Exchange, Inc., 73254-73256 2015-29839 Chicago Board Options Exchange, Inc., 73252-73254, 73256-73258 2015-29842 2015-29844 International Securities Exchange, LLC, 73252 2015-29840 ISE Gemini, LLC, 73254 2015-29841 NYSE Arca, Inc., 73258-73262 2015-29845 Small Business Small Business Administration NOTICES Disaster Declarations:

California, 73263-73264 2015-29860 State Department State Department NOTICES Culturally Significant Object Imported for Exhibition: Power and Pathos: Bronze Sculpture of the Hellenistic World; Correction, 73264 2015-29899 Culturally Significant Objects Imported for Exhibition: Jan Van Eyck's Crucifixion and Last Judgment—New Discoveries, 73264-73265 2015-29898 Keir Collection of Art of the Islamic World, 73264 2015-29900 Titanosaur Exhibition, 73265 2015-29919 Transportation Department Transportation Department See Federal Aviation Administration See Federal Railroad Administration Treasury Treasury Department See Alcohol and Tobacco Tax and Trade Bureau U.S.

Citizenship U.S. Citizenship and Immigration Services NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Employment Eligibility Verification, 73200-73201 2015-29909 Separate Parts In This Issue Part II Health and Human Services Department, Centers for Medicare & Medicaid Services, 73274-73554 2015-29438 Part III Commerce Department, National Oceanic and Atmospheric Administration, 73556-73629 2015-28894 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 80 226 Tuesday, November 24, 2015 Rules and Regulations FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 360 RIN 3064-AE32 Treatment of Financial Assets Transferred in Connection With a Securitization or Participation AGENCY:

Federal Deposit Insurance Corporation. ACTION: Final rule. SUMMARY: The Federal Deposit Insurance Corporation (the “FDIC”) is issuing a final rule (the “Final Rule”) that revises certain provisions of its securitization safe harbor rule, which relates to the treatment of financial assets transferred in connection with a securitization or participation, in order to clarify the requirements of the securitization safe harbor as to the retention of an economic interest in the credit risk of securitized financial assets in connection with the effectiveness of the credit risk retention regulations adopted under Section 15G of the Securities Exchange Act.

DATES: Effective January 25, 2016. FOR FURTHER INFORMATION CONTACT: Phillip E. Sloan, Counsel, Legal Division

(703)562-6137; or George H. Williamson, Manager, Division of Resolutions and Receiverships

(571)858-8199. SUPPLEMENTARY INFORMATION: I. Background The Federal Deposit Insurance Corporation (FDIC), in regulations codified at 12 CFR 360.6 (the Securitization Safe Harbor Rule), set forth criteria under which in its capacity as receiver or conservator of an insured depository institution the FDIC will not, in the exercise of its authority to repudiate contracts, recover or reclaim financial assets transferred in connection with securitization transactions. Asset transfers that, under the Securitization Safe Harbor Rule, are not subject to recovery or reclamation through the exercise of the FDIC's repudiation authority include those that pertain to certain grandfathered transactions, such as, for example, asset transfers made prior to December 31, 2010 that satisfied the conditions (except for the legal isolation condition addressed by the Securitization Safe Harbor Rule) for sale accounting treatment under generally accepted accounting principles

(GAAP)in effect for reporting periods prior to November 15, 2009 and that pertain to a securitization transaction that satisfied certain other requirements. In addition, the Securitization Safe Harbor Rule provides that asset transfers that are not grandfathered, but that satisfy the conditions (except for the legal isolation condition addressed by the Securitization Safe Harbor Rule) for sale accounting treatment under GAAP in effect for reporting periods after November 15, 2009 and that pertain to a securitization transaction that satisfies all other conditions of the Securitization Safe Harbor Rule (such asset transfers, together with grandfathered asset transfers, are referred to collectively as Safe Harbor Transfers) will not be subject to FDIC recovery or reclamation actions through the exercise of the FDIC's repudiation authority. For any securitization transaction in respect of which transfers of financial assets do not qualify as Safe Harbor Transfers but which transaction satisfies all of its other requirements, the Securitization Safe Harbor Rule provides that, in the event the FDIC as receiver or conservator remains in monetary default for a specified period under a securitization due to its failure to pay or apply collections or repudiates the securitization asset transfer agreement and does not pay damages within a specified period, certain remedies can be exercised on an expedited basis. Paragraph (b)(5)(i) of the Securitization Safe Harbor Rule sets forth the conditions relating to credit risk retention that apply to transfers of financial assets in connection with securitizations that are not grandfathered by the Securitization Safe Harbor Rule. Under paragraph (b)(5)(i)(A) of the Securitization Safe Harbor Rule as currently in effect, prior to the effective date of regulations required under Section 15G of the Securities Exchange Act, 15 U.S.C. 78a *et seq.* (“Section 15G”), the documents governing such securitization must require that the sponsor retain an economic interest in not less than five

(5)percent of the credit risk of the financial assets relating to the securitization. The requirement in paragraph (b)(5)(i)(A) of the Securitization Safe Harbor Rule, that *the documents* require retention of an economic interest, is consistent with many other provisions of the Securitization Safe Harbor Rule, which are similarly expressed as requirements for the securitization documentation, rather than as conditions requiring actual compliance with the provision that is required to be included in the documentation. As currently in effect, paragraph (b)(5)(i)(B) of the Securitization Safe Harbor Rule does not explicitly refer to the securitization documentation, but provides that, upon the effective date of the regulations required under Section 15G (the Section 15G Regulations), such regulations shall exclusively govern the requirement to retain an economic interest in the credit risk of the financial assets. Section 15G provides that regulations issued thereunder become effective with respect to residential mortgage securitizations one year after the date on which the regulations are published in the **Federal Register** and, with respect to all other securitizations, two years after such publication date. The Section 15G Regulations were published in the **Federal Register** at 79 FR 77602 on December 24, 2014. The **Federal Register** publication of the Section 15G Regulations specifies “compliance dates” that correspond to these effective dates. However, the **Federal Register** publication also specifies February 23, 2015 as the “effective date” of the Section 15G Regulations in accordance with **Federal Register** editorial conventions, which require that a **Federal Register** publication specify as the effective date the date on which a rule affects the current Code of Federal Regulations. 1 1 See 79 FR 77602 (December 24, 2014). In connection with the notice of proposed rulemaking relating to the Section 15G Regulations, FDIC staff received a comment that suggested that certain other points relating to paragraph (b)(5)(i)(B) of the Securitization Safe Harbor Rule should be clarified. On January 30, 2015, the FDIC published a notice of proposed rulemaking relating to the Securitization Safe Harbor Rule (the “NPR”). The NPR was designed, in part, to eliminate any confusion that might be created by the use of “effective date” in the Section 15G Regulations **Federal Register** publication and to clarify when compliance with paragraph (b)(5)(i)(B) of the Securitization Safe Harbor Rule is required. In addition, the NPR included a proposed rule (the Proposed Rule) that addressed two of the points raised by the commenter. 2 The first is a clarification that paragraph (b)(5)(i)(B) was intended to require that, upon and following the applicable effective date under the Section 15G Regulations (such applicable effective dates (December 24, 2015 for residential mortgage securitizations and December 24, 2016 for all other securitizations) are referred to as the applicable compliance dates), the Securitization Safe Harbor Rule requirements as to risk retention are satisfied if the governing documents of a securitization transaction require retention of an economic interest in the financial assets in accordance with the Section 15G Regulations, and that if the documentation satisfies this condition (and assuming all other conditions of the Securitization Safe Harbor Rule are satisfied), the transaction will not lose the benefits of the safe harbor solely on the basis of any non-compliance with the Section 15G Regulations risk retention requirements. 2 80 FR 5076 (January 30, 2015). The second is a clarification that paragraph (b)(5)(i)(B) of the Securitization Safe Harbor Rule does not require that any action be taken with respect to issuances of asset-backed securities that close prior to the applicable compliance date of the Section 15G Regulations. These two clarifications, which were included in the Proposed Rule, together with an additional change suggested by a comment letter relating to the Proposed Rule, are included in the Final Rule. II. Comment Received on the Proposed Rule The FDIC received one comment letter, from an industry trade association, in response to the Proposed Rule. This letter supported the changes included in the Proposed Rule and requested that the Final Rule include one additional change relating to the credit risk retention condition of the Securitization Safe Harbor Rule. The commenter referred to the applicable compliance dates for the Section 15G Regulations and proposed that the Final Rule provide securitization sponsors the option, with respect to a securitization transaction, to comply with the credit risk retention condition of the Securitization Safe Harbor Rule by adopting the Section 15G risk retention requirements during the period preceding the applicable compliance date for such transaction, even though the Section 15G Regulations do not require such compliance before such applicable compliance date. The commenter stated that providing such optionality “would effectuate the principle underlying the credit risk retention condition of the Securitization Safe Harbor Rule.” 3 3 Letter dated March 30, 2015, p. 3. III. Policy Objective The policy objective underlying the Final Rule is to create certainty and eliminate unnecessary burdens in connection with the transition to the Section 15G Regulations requirements as to credit risk retention. IV. The Final Rule Overview The Final Rule clarifies that the Securitization Safe Harbor Rule condition relating to credit risk retention requires that the documents governing a securitization transaction that closes on or after the applicable compliance date under the Section 15G Regulations must require that an economic interest in the credit risk of the financial assets is retained in accordance with the Section 15G Regulations. The Final Rule provision effecting this clarification also makes clear that the migration of the Securitization Safe Harbor Rule to the Section 15G Regulations governing credit risk retention will not require changes to documents governing securitizations that closed prior to the applicable compliance date. The provision also makes clear that the transition to the Section 15G standard is a documentation requirement and, thus, does not put investors at risk if a securitization sponsor, in violation of transaction documents, does not retain credit risk in accordance with the Section 15G Regulations. Because securitization investors have relied on the Securitization Safe Harbor Rule to obtain an understanding of how the FDIC might exercise its powers if it is appointed receiver or conservator for an insured depository institution which transferred assets in connection with a securitization transaction, the FDIC believes that it is important to make clear to securitization market participants the date upon and after which the Securitization Safe Harbor will require reference to the Section 15G Regulations. In addition, the FDIC wants to eliminate possible confusion among market participants as to whether an asset-backed security issuance that complies with all requirements of the Securitization Safe Harbor Rule could forfeit the benefits afforded by the Securitization Safe Harbor Rule based on the action or inaction of a securitization sponsor or other party with respect to retention of credit risk following the date of such issuance. This is different from the Section 15G Regulations, under which non-compliance with the credit risk retention requirements will constitute a violation of the Regulations. Consistent with the clarifications to the process for migration to the Section 15G Regulations included in the Proposed Rule, the Final Rule follows the commenter's suggestion and permits securitization sponsors to comply with the credit risk retention requirements of the Securitization Safe Harbor Rule by opting in the securitization's governing documents to require compliance with the Section 15G Regulations earlier than required by the Section 15G Regulations. It is the FDIC's view that since the Securitization Safe Harbor Rule has always required the transition to the Section 15G risk retention requirements, there is no compelling reason to require that securitization sponsors await the applicable compliance date in order to use one of the risk retention methods available under the Section 15G Regulations. In following the commenter's proposal, the FDIC wished to avoid imposing unnecessary burdens on sponsors that otherwise might need to establish a securitization structure for the issuance of multiple series before the applicable compliance date and then need to amend the structure after the applicable compliance date. The FDIC sees no reason to require such extra expense. The FDIC recognizes that permitting securitization sponsors to cause a securitization transaction to comply with the Securitization Safe Harbor Rule by exercising an option to require compliance with the Section 15G Regulations before the applicable compliance date also has the effect of allowing greater flexibility with respect to risk retention for purposes of complying with the Securitization Safe Harbor Rule, and in some cases may permit sponsors to benefit from exemptions available under the Section 15G Regulations earlier than otherwise would be the case for purposes of the Securitization Safe Harbor Rule. In promulgating the Section 15G Regulations, the FDIC determined that the approach to risk retention adopted by those rules is effective and appropriate and, thus, the option of early adoption also is appropriate. Section-by-Section Analysis Definitions The Final Rule adds a new definition, “applicable compliance date” to paragraph

(a)of the Securitization Safe Harbor Rule. This definition reflects that the Section 15G Regulations impose two dates for compliance: December 24, 2015 for securitization of residential mortgages, and December 24, 2016 for all other securitizations. Paragraph (b)(5)(i) The Final Rule revises paragraph (b)(5)(i) of the Securitization Safe Harbor Rule to make the following three points clear:

(i)In order to qualify for the benefits of the Securitization Safe Harbor Rule, the documents governing the issuance of asset-backed securities in a securitization transaction must require retention of an economic interest in the credit risk of the financial assets relating to the securitization transaction in compliance with the Section 15G Regulations if such issuance occurs upon or following the date on which compliance with Section 15G is required for such type of securitization transaction;

(ii)The Securitization Safe Harbor Rule does not require inquiry as to whether the sponsor or other applicable party in fact complies with the risk retention requirements of the documentation; and

(iii)The Securitization Safe Harbor Rule requirements as to the Section 15G Regulations do not require changes to securitization documents governing asset-backed security issuances that are closed prior to the applicable compliance date under the Section 15G Regulations. In addition, the Final Rule revises paragraph (b)(5)(i) of the Securitization Safe Harbor Rule to permit a securitization transaction, that closes between the date of the publication of the Final Rule in the **Federal Register** and the applicable compliance date related to such securitization transaction, to comply with the paragraph if the documents creating the securitization require retention of an economic interest in the credit risk of the financial assets in accordance with the requirements of the Section 15G Regulations as though such Regulations were then in effect. In the case of a securitization transaction of an entity established to issue obligations in more than one securitization transaction, the election to require in the documents creating the securitization transaction that risk be retained in accordance with the Section 15G Regulations can be set forth either in the specific securitization transaction documents or, provided that it governs the securitization transaction, in one of the documents establishing or otherwise governing the issuing entity. V. Regulatory Analysis and Procedure A. Paperwork Reduction Act This rule would entail an information collection for sponsors that exercise the option to become subject to the Section 15G Regulations earlier than otherwise required. Because the information to be collected is the same, however, as that encompassed by the collection of information that was approved under OMB No. 3064-0183, no new submission is being made to OMB with respect to the Paperwork Reduction Act (44 U.S.C. 3501, *et seq.* ). 4 4 The specific method of defining the respondent population differed in some respects for purposes of the FDIC's Section 15G PRA submission, OMB No. 3064-0183. The respondent population for that submission was based on an allocation to the bank regulatory agencies based on the number of sponsors regulated by them, with the remainder of sponsors allocated to the Securities and Exchange Commission. The allocation to the bank regulatory agencies was then divided among the FDIC and the other bank regulatory agencies. The respondents for purposes of this Rule are IDIs that are projected to sponsor securitizations and elect to comply early with the Section 15G Regulations, and the number of responses is based on the projected number of securitizations for which those sponsors would be expected to elect the early compliance option. B. Regulatory Flexibility Act The Regulatory Flexibility Act 5 U.S.C. 601, *et seq.*

(RFA)requires each federal agency to prepare a final regulatory flexibility analysis in connection with the promulgation of a final rule, or certify that the final rule will not have a significant economic impact on a substantial number of small entities. 5 Pursuant to section 605(b) of the Regulatory Flexibility Act, the FDIC certifies that the Final Rule will not have a significant economic impact on a substantial number of small entities. 5 *See* 5 U.S.C. 603, 604 and 605. C. Small Business Regulatory Enforcement Act The Office of Management and Budget has determined that the Final Rule is Not a “major rule” within the meaning of the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), (5 U.S.C. 801 *et seq.* ). As required by the SBREFA, the FDIC will file the appropriate reports with Congress and the Government Accountability Office so that the Final Rule may be reviewed. D. Plain Language Section 722 of the Gramm-Leach-Bliley Act (Pub. L. 106-102, 113 Stat.1338, 1471), requires the Federal banking agencies to use plain language in all proposed and final rules published after January 1, 2000. The FDIC has sought to present the Final Rule in a simple and straightforward manner. List of Subjects in 12 CFR Part 360 Banks, Banking, Bank deposit insurance, Holding companies, National banks, Participations, Reporting and recordkeeping requirements, Savings associations, Securitizations. For the reasons stated above, the Board of Directors of the Federal Deposit Insurance Corporation amends 12 CFR part 360 as follows: PART 360—RESOLUTION AND RECEIVERSHIP RULES 1. The authority citation for part 360 continues to read as follows: Authority: 12 U.S.C. 1817(b), 1818(a)(2), 1818(t), 1819(a) Seventh, Ninth and Tenth, 1820(b)(3), (4), 1821(d)(1), 1821(d)(10)(c), 1821(d)(11), 1821(d)(15)(D), 1821(e)(1), 1821(e)(8)(D)(i), 1823(c)(4), 1823(e)(2); Sec. 401(h), Pub. L. 101-73, 103 Stat. 357. 2. Amend § 360.6 as follows: a. Redesignate paragraphs (a)(1) through

(11)as (a)(2) through

(12)and add a new paragraph (a)(1). b. Revise paragraph (b)(5)(i). The addition and revision read as follows: § 360.6 Treatment of financial assets transferred in connection with a securitization or participation.

(a)* * *

(1)*Applicable compliance date* means, with respect to a securitization, the date on which compliance with Section 15G of the Securities Exchange Act, 15 U.S.C. 78a *et seq.,* added by Section 941(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is required with respect to that securitization.

(b)* * *

(5)* * *

(i)*Requirements applicable to all securitizations.*

(A)Prior to the applicable compliance date for regulations required under Section 15G of the Securities Exchange Act, 15 U.S.C. 78a *et seq.,* added by Section 941(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the documents creating the securitization shall require that the sponsor retain an economic interest in a material portion, defined as not less than five

(5)percent, of the credit risk of the financial assets. This retained interest may be either in the form of an interest of not less than five

(5)percent in each of the credit tranches sold or transferred to the investors or in a representative sample of the securitized financial assets equal to not less than five

(5)percent of the principal amount of the financial assets at transfer. This retained interest may not be sold, pledged or hedged, except for the hedging of interest rate or currency risk, during the term of the securitization.

(B)For any securitization that closes upon or following the applicable compliance date for regulations required under Section 15G of the Securities Exchange Act, 15 U.S.C. 78a *et seq.,* added by Section 941(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the documents creating the securitization shall instead require retention of an economic interest in the credit risk of the financial assets in accordance with such regulations, including the restrictions on sale, pledging and hedging set forth therein.

(C)Notwithstanding paragraph (b)(5)(i)(A) of this section, for any securitization that closes following ________ November 24, 2015 and prior to the applicable compliance date for regulations required under Section 15G of the Securities Exchange Act, 15 U.S.C. 78a *et seq.,* added by Section 941(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, at the option of the sponsor, the requirements of paragraph (b)(5)(i)(B) of this section may be satisfied if (in lieu of the requirement set forth in paragraph (b)(5)(i)(A) of this section) the documents creating the securitization require retention of an economic interest in the credit risk of the financial assets in accordance with the requirements of the Section 15G regulations as though such regulations were then in effect. Dated at Washington, DC, this 22nd day of October, 2015. By order of the Board of Directors. Federal Deposit Insurance Corporation. Robert E. Feldman, Executive Secretary. [FR Doc. 2015-29822 Filed 11-23-15; 8:45 am]

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