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70194

Federal Register / Vol. 78, No. 227 / Monday, November 25, 2013 / Rules and Regulations

each year based on any annual
percentage increase in the CPI–W that
was in effect on the preceding June 1.
Any increase in the threshold amount
will be rounded to the nearest $100
increment. For example, if the annual
percentage increase in the CPI–W would
result in a $950 increase in the
threshold amount, the threshold amount
will be increased by $1,000. However, if
the annual percentage increase in the
CPI–W would result in a $949 increase
in the threshold amount, the threshold
amount will be increased by $900. See
comments 2(e)–9 in Supplements I of 12
CFR part 213 and 12 CFR part 1013.
II. Adjustment and Commentary
Revision
Effective January 1, 2014, the adjusted
exemption threshold amount is $53,500.
This adjustment is based on the CPI–W
index in effect on June 1, 2013, which
was reported on May 16, 2013. The
Bureau of Labor Statistics publishes
consumer-based indices monthly, but
does not report a CPI change on June 1;
adjustments are reported in the middle
of the month. The CPI–W is a subset of
the CPI–U index (based on all urban
consumers) and represents
approximately 28 percent of the U.S.
population. The adjustment reflects a
0.9 percent increase in the CPI–W from
April 2012 to April 2013 and is rounded
to the nearest $100 increment.
Accordingly, the Board and the Bureau
are revising the commentaries to their
respective regulations to add new
comment 2(e)–9.v stating that, from
January 1, 2014 through December 31,
2014, the threshold amount is $53,500.
These revisions are effective January 1,
2014.
III. Administrative Law Matters

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Administrative Procedure Act

15:59 Nov 22, 2013

Jkt 232001

The Regulatory Flexibility Act (RFA)
does not apply to a rulemaking where a
general notice of proposed rulemaking
is not required. 5 U.S.C. 603 and 604.
As noted previously, the agencies have
determined that it is unnecessary to
publish a general notice of proposed
rulemaking for this joint final rule.
Accordingly, the RFA’s requirements
relating to an initial and final regulatory
flexibility analysis do not apply.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3506;
5 CFR part 1320), the agencies reviewed
this final rule. No collections of
information pursuant to the Paperwork
Reduction Act are contained in the final
rule.

Bureau of Consumer Financial
Protection
Authority and Issuance
For the reasons set forth in the
preamble, the Bureau amends
Regulation M, 12 CFR part 1013, as set
forth below:
PART 1013—CONSUMER LEASING
(REGULATION M)
1. The authority citation for part 1013
continues to read as follows:

■

Authority: 15 U.S.C. 1604 and 1667f; Pub.
L. No. 111–203 § 1100E, 124 Stat. 1376.

2. In Supplement I to part 1013, under
Section 1013.2—Definitions, under 2(e)
Consumer Lease, paragraph 9.v is added
to read as follows:

■

Supplement I to Part 1013—Official
Interpretations

List of Subjects

*

12 CFR Part 213

Section 1013.2—Definitions

Advertising, Consumer leasing,
Consumer protection, Federal Reserve
System, Reporting and recordkeeping
requirements.
12 CFR Part 1013

Board of Governors of the Federal
Reserve System
Text of Final Revisions
For the reasons set forth in the
preamble, the Board amends Regulation
M, 12 CFR part 213, as set forth below:
PART 213—CONSUMER LEASING
(REGULATION M)
1. The authority citation for part 213
continues to read as follows:

Authority: 15 U.S.C. 1604 and 1667f; Pub.
L. 111–203 § 1100E, 124 Stat. 1376.

2. In Supplement I to Part 213, under
Section 213.2—Definitions, under 2(e)
Consumer Lease, paragraph 9.v is added
to read as follows:

■

Supplement I to Part 213—Official Staff
Interpretations
*

*

*

*

*

Section 213.2—Definitions

*

*

*

*

*

2(e) Consumer Lease.
9. Threshold amount. * * *

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2(e) Consumer Lease.
9. Threshold amount. * * *

*

*

*

*

*

v. From January 1, 2014 through December
31, 2014, the threshold amount is $53,500.

*

*

*

*

By order of the Board of Governors of the
Federal Reserve System, November 19, 2013.
Robert deV. Frierson,
Secretary of the Board.
Dated: November 17, 2013.
Richard Cordray,
Director, Bureau of Consumer Financial
Protection.
[FR Doc. 2013–28194 Filed 11–22–13; 8:45 am]
BILLING CODE 6210–01–P; 4810–AM–P

FEDERAL RESERVE SYSTEM
12 CFR Part 226
[Docket No. R–1470]

BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1026
[Docket No. CFPB–2013–0035]

Truth in Lending (Regulation Z)
Board of Governors of the
Federal Reserve System (Board); and
Bureau of Consumer Financial
Protection (Bureau).
ACTION: Final rules, official
interpretations and commentary.
AGENCY:

The Board and the Bureau are
publishing final rules amending the
official interpretations and commentary
for the agencies’ regulations that

SUMMARY:

v. From January 1, 2014 through December
31, 2014, the threshold amount is $53,500.

*

*

*

Advertising, Consumer leasing,
Reporting and recordkeeping
requirements.

■

Under the Administrative Procedure
Act, notice and opportunity for public
comment are not required if the Board
and the Bureau find that notice and
public comment are impracticable,
unnecessary, or contrary to the public
interest. 5 U.S.C. 553(b)(B). This annual
adjustment is required by statute. The
amendment in this notice is technical
and non-discretionary, and it applies
the method previously established in
the agencies’ regulations for
determining adjustments to the
exemption threshold. For these reasons,
the Board and the Bureau have
determined that publishing a notice of
proposed rulemaking and providing
opportunity for public comment are
unnecessary. Therefore, the
amendments are adopted in final form.

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Regulatory Flexibility Act

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Federal Register / Vol. 78, No. 227 / Monday, November 25, 2013 / Rules and Regulations
implement the Truth in Lending Act
(TILA). The Dodd-Frank Wall Street
Reform and Consumer Protection Act
(Dodd-Frank Act) amended TILA by
requiring that the dollar threshold for
exempt consumer credit transactions be
adjusted annually by any annual
percentage increase in the Consumer
Price Index for Urban Wage Earners and
Clerical Workers (CPI–W). Based on the
annual percentage increase in the CPI–
W as of June 1, 2013, the Board and the
Bureau are adjusting the exemption
threshold to $53,500, effective January
1, 2014. Because the Dodd-Frank Act
also requires similar adjustments in the
Consumer Leasing Act’s threshold for
exempt consumer leases, the Board and
the Bureau are making similar
amendments to each of their respective
regulations implementing the Consumer
Leasing Act elsewhere in the Federal
Register.
DATES: This final rule is effective
January 1, 2014.
FOR FURTHER INFORMATION CONTACT:
Board: Vivian W. Wong, Counsel,
Division of Consumer and Community
Affairs, Board of Governors of the
Federal Reserve System, at (202) 452–
3667; for users of Telecommunications
Device for the Deaf (TDD) only, contact
(202) 263–4869.
Bureau: David Friend, Counsel, Office
of Regulations, Bureau of Consumer
Financial Protection, at (202) 435–7700.
SUPPLEMENTARY INFORMATION:

emcdonald on DSK67QTVN1PROD with RULES

I. Background
The Dodd-Frank Wall Street Reform
and Consumer Protection Act of 2010
(Dodd-Frank Act) increased the
threshold in the Truth in Lending Act
(TILA) for exempt consumer credit
transactions 1 from $25,000 to $50,000,
effective July 21, 2011.2 In addition, the
Dodd-Frank Act requires that this
threshold be adjusted annually for
inflation by the annual percentage
increase in the Consumer Price Index
for Urban Wage Earners and Clerical
Workers (CPI–W), as published by the
Bureau of Labor Statistics. In April
2011, the Board issued a final rule
amending Regulation Z (which
implements TILA) consistent with these
provisions of the Dodd-Frank Act.3
Title X of the Dodd-Frank Act
transferred rulemaking authority for a
1 Although consumer credit transactions above
the threshold are generally exempt, loans secured
by real property or by personal property used or
expected to be used as the principal dwelling of a
consumer and private education loans are covered
by TILA regardless of the loan amount. See 12 CFR
226.3(b)(1)(i) and 12 CFR 1026.3(b)(1)(i).
2 Public Law 111–203 § 1100E, 124 Stat. 1376
(2010).
3 76 FR 18354 (Apr. 4, 2011).

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15:59 Nov 22, 2013

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number of consumer financial
protection laws from the Board to the
Bureau, effective July 21, 2011. In
connection with this transfer of
rulemaking authority, the Bureau issued
its own Regulation Z implementing
TILA in an interim final rule, 12 CFR
part 1026 (Bureau Interim Final Rule).4
The Bureau Interim Final Rule
substantially duplicated the Board’s
Regulation Z, including the revisions to
the threshold for exempt transactions
made by the Board in April 2011.
Although the Bureau has the authority
to issue rules to implement TILA for
most entities, the Board retains
authority to issue rules under TILA for
certain motor vehicle dealers covered by
section 1029(a) of the Dodd-Frank Act,
and the Board’s Regulation Z continues
to apply to those entities.5
Section 226.3(b)(1)(ii) of the Board’s
Regulation Z and § 1026.3(b)(1)(ii) of the
Bureau’s Regulation Z, and their
accompanying commentaries, provide
that the exemption threshold will be
adjusted annually effective January 1 of
each year based on any annual
percentage increase in the CPI–W that
was in effect on the preceding June 1.
Any increase in the threshold amount
will be rounded to the nearest $100
increment. For example, if the annual
percentage increase in the CPI–W would
result in a $950 increase in the
threshold amount, the threshold amount
will be increased by $1,000. However, if
the annual percentage increase in the
CPI–W would result in a $949 increase
in the threshold amount, the threshold
amount will be increased by $900. See
comments 3(b)–1 in Supplements I of 12
CFR part 226 and 12 CFR part 1026.
4 76

FR 79768 (Dec. 22, 2011).
1029(a) of the Dodd-Frank Act states:
‘‘Except as permitted in subsection (b), the Bureau
may not exercise any rulemaking, supervisory,
enforcement, or any other authority * * * over a
motor vehicle dealer that is predominantly engaged
in the sale and servicing of motor vehicles, the
leasing and servicing of motor vehicles, or both.’’
12 U.S.C. 5519(a). Section 1029(b) of the DoddFrank Act states: ‘‘Subsection (a) shall not apply to
any person, to the extent that such person (1)
provides consumers with any services related to
residential or commercial mortgages or selffinancing transactions involving real property; (2)
operates a line of business (A) that involves the
extension of retail credit or retail leases involving
motor vehicles; and (B) in which (i) the extension
of retail credit or retail leases are provided directly
to consumers; and (ii) the contract governing such
extension of retail credit or retail leases is not
routinely assigned to an unaffiliated third party
finance or leasing source; or (3) offers or provides
a consumer financial product or service not
involving or related to the sale, financing, leasing,
rental, repair, refurbishment, maintenance, or other
servicing of motor vehicles, motor vehicle parts, or
any related or ancillary product or service.’’ 12
U.S.C. 5519(b).
5 Section

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70195

II. Adjustment and Commentary
Revision
Effective January 1, 2014, the adjusted
exemption threshold amount is $53,500.
This adjustment is based on the CPI–W
index in effect on June 1, 2013, which
was reported on May 16, 2013. The
Bureau of Labor Statistics publishes
consumer-based indices monthly, but
does not report a CPI change on June 1;
adjustments are reported in the middle
of the month. The CPI–W is a subset of
the CPI–U index (based on all urban
consumers) and represents
approximately 28 percent of the U.S.
population. The adjustment reflects a
0.9 percent increase in the CPI–W from
April 2012 to April 2013 and is rounded
to the nearest $100 increment.
Accordingly, the Board and the Bureau
are revising the commentaries to their
respective regulations to add new
comment 3(b)–1.v to state that, from
January 1, 2014 through December 31,
2014, the threshold amount is $53,500.
These revisions are effective January 1,
2014.
III. Administrative Law Matters
Administrative Procedure Act
Under the Administrative Procedure
Act, notice and opportunity for public
comment are not required if the Board
and the Bureau find that notice and
public comment are impracticable,
unnecessary, or contrary to the public
interest. 5 U.S.C. 553(b)(B). This annual
adjustment is required by statute. The
amendment in this notice is technical
and non-discretionary, and it applies
the method previously established in
the agencies’ regulations for
determining adjustments to the
exemption threshold. For these reasons,
the Board and the Bureau have
determined that publishing a notice of
proposed rulemaking and providing
opportunity for public comment are
unnecessary. Therefore, the
amendments are adopted in final form.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
does not apply to a rulemaking where a
general notice of proposed rulemaking
is not required. 5 U.S.C. 603 and 604.
As noted previously, the agencies have
determined that it is unnecessary to
publish a general notice of proposed
rulemaking for this joint final rule.
Accordingly, the RFA’s requirements
relating to an initial and final regulatory
flexibility analysis do not apply.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3506;
5 CFR part 1320), the agencies reviewed

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70196

Federal Register / Vol. 78, No. 227 / Monday, November 25, 2013 / Rules and Regulations

this final rule. No collections of
information pursuant to the Paperwork
Reduction Act are contained in the final
rule.
List of Subjects
12 CFR Part 226
Advertising, Consumer protection,
Federal Reserve System, Reporting and
recordkeeping requirements, Truth in
lending.
12 CFR Part 1026
Advertising, Consumer protection,
Credit, Credit unions, Mortgages,
National banks, Reporting and
recordkeeping requirements, Savings
associations, Truth in lending.

1. The authority citation for part 1026
continues to read as follows:

■

Authority: 12 U.S.C. 2601, 2603–2605,
2607, 2609, 2617, 5511, 5512, 5532, 5581; 15
U.S.C. 1601 et seq.

2. In Supplement I to part 1026, under
Section 1026.3—Exempt Transactions,
under 3(b) Credit Over Applicable
Threshold Amount, new paragraph 1.v
is added to read as follows:

■

Supplement I to Part 1026—Official
Interpretations
*

*

*

*

*

Subpart A—General

Board of Governors of the Federal
Reserve System

*

Text of Final Revisions

*

*

*

*

*

Section 1026.3—Exempt Transactions

For the reasons set forth in the
preamble, the Board amends Regulation
Z, 12 CFR part 226, as set forth below:

*

*

*

*

3(b) Credit Over Applicable Threshold
Amount
1. Threshold amount. * * *

*

*

*

*

*

PART 226—TRUTH IN LENDING
(REGULATION Z)

v. From January 1, 2014 through December
31, 2014, the threshold amount is $53,500.

1. The authority citation for part 226
continues to read as follows:

By order of the Board of Governors of the
Federal Reserve System, November 19, 2013.
Robert deV. Frierson,
Secretary of the Board.
Dated: November 17, 2013.
Richard Cordray,
Director, Bureau of Consumer Financial
Protection.

*

■

Authority: 12 U.S.C. 3806; 15 U.S.C. 1604,
1637(c)(5), and 1639(l); Pub. L. 111–24 § 2,
123 Stat. 1734; Pub. L. No. 111–203, 124 Stat.
1376.

Subpart A—General

*

*

*

*

2. In Supplement I to part 226, under
Section 226.3—Exempt Transactions,
under 3(b) Credit over applicable
threshold amount, paragraph 1.v is
added to read as follows:

[FR Doc. 2013–28195 Filed 11–22–13; 8:45 am]

Supplement I to Part 226—Official Staff
Interpretations

Federal Aviation Administration

*

*

14 CFR Part 39

*

[Docket No. FAA–2013–0693; Directorate
Identifier 2013–NM–059–AD; Amendment
39–17661; AD 2013–23–06]

■

*

*

*

Subpart A—General

*

*

*

*

Section 226.3—Exempt Transactions

*

*

*

*

BILLING CODE 4810–AM–P

DEPARTMENT OF TRANSPORTATION

3(b) Credit over applicable threshold
amount.
1. Threshold amount. * * *

Airworthiness Directives; The Boeing
Company Airplanes

*

AGENCY:

*

*

*

*

*

*

*

*

*

Authority and Issuance
For the reasons set forth in the
preamble, the Bureau amends
Regulation Z, 12 CFR part 1026, as set
forth below:

VerDate Mar<15>2010

15:59 Nov 22, 2013

Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
We are adopting a new
airworthiness directive (AD) for certain
The Boeing Company Model 757–200
and –200PF series airplanes. This AD
was prompted by reports indicating that
a standard access door was located
where an impact-resistant access door
was required, and stencils were missing
from some impact-resistant access

SUMMARY:

Bureau of Consumer Financial
Protection

Jkt 232001

doors. This AD requires an inspection of
the left- and right-hand wing fuel tank
access doors to determine that impactresistant access doors are installed in
the correct locations, and to replace any
door with an impact-resistant access
door if necessary. This AD also requires
an inspection for stencils and index
markers on impact-resistant access
doors, and application of new stencils
or index markers if necessary. This AD
also requires revising the maintenance
program to incorporate changes to the
airworthiness limitations section. We
are issuing this AD to prevent foreign
object penetration of the fuel tank,
which could cause a fuel leak near an
ignition source (e.g., hot brakes or
engine exhaust nozzle), consequently
leading to a fuel-fed fire.
DATES: This AD is effective December
30, 2013.
The Director of the Federal Register
approved the incorporation by reference
of certain publications listed in this AD
as of December 30, 2013.
ADDRESSES: For service information
identified in this AD, contact Boeing
Commercial Airplanes, Attention: Data
& Services Management, P.O. Box 3707,
MC 2H–65, Seattle, WA 98124–2207;
telephone 206–544–5000, extension 1;
fax 206–766–5680; Internet https://
www.myboeingfleet.com. You may view
this referenced service information at
the FAA, Transport Airplane
Directorate, 1601 Lind Avenue SW.,
Renton, WA. For information on the
availability of this material at the FAA,
call 425–227–1221.
Examining the AD Docket

RIN 2120–AA64

*

v. From January 1, 2014 through December
31, 2014, the threshold amount is $53,500.

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PART 1026—TRUTH IN LENDING
(REGULATION Z)

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You may examine the AD docket on
the Internet at http://
www.regulations.gov; or in person at the
Docket Management Facility between 9
a.m. and 5 p.m., Monday through
Friday, except Federal holidays. The AD
docket contains this AD, the regulatory
evaluation, any comments received, and
other information. The address for the
Docket Office (phone: 800–647–5527) is
Document Management Facility, U.S.
Department of Transportation, Docket
Operations, M–30, West Building
Ground Floor, Room W12–140, 1200
New Jersey Avenue SE., Washington,
DC 20590.
FOR FURTHER INFORMATION CONTACT:
Suzanne Lucier, Aerospace Engineer,
Propulsion Branch, ANM–140S, FAA,
Seattle Aircraft Certification Office,
1601 Lind Avenue SW., Renton, WA
98057–3356; phone: 425–917–6438; fax:
425–917–6590; email: suzanne.lucier@
faa.gov.
SUPPLEMENTARY INFORMATION:

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