This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations Federal Register
68243
Vol. 85, No. 209
Wednesday, October 28, 2020
NUCLEAR REGULATORY
COMMISSION
10 CFR Chapter I
[NRC–2020–0125]
RIN 3150–AK48
Miscellaneous Corrections
AGENCY: Nuclear Regulatory
Commission.
ACTION: Final rule, correction.
SUMMARY: The U.S. Nuclear Regulatory
Commission (NRC) is correcting a final
rule that appeared in the Federal
Register on October 16, 2020. The NRC
is amending its regulations to make
miscellaneous corrections. These
changes include redesignating footnotes,
correcting references, typographical
errors, nomenclature, titles, email
addresses, and contact information. This
action is necessary to correct an error
that appeared in Instruction 8 of the
final rule.
DATES: This correction is effective on
November 16, 2020.
ADDRESSES: Please refer to Docket ID
NRC–2020–0125 when contacting the
NRC about the availability of
information for this action. You may
obtain publicly-available information
related to this action by any of the
following methods:
• Federal Rulemaking Website: Go to
https://www.regulations.gov and search
for Docket ID NRC–2020–0125. Address
questions about NRC dockets to Carol
Gallagher; telephone: 301–415–3463;
email: Carol.Gallagher@nrc.gov.
• NRC’s Agencywide Documents
Access and Management System
(ADAMS): You may obtain publicly-
available documents online in the
ADAMS Public Documents Collection at
https://www.nrc.gov/reading-rm/
adams.html. To begin the search, select
‘‘Begin Web-based ADAMS Search.’’ For
problems with ADAMS, please contact
the NRC’s Public Document Room (PDR)
reference staff at 1–800–397–4209, 301–
415–4737, or by email to
PDR.Resource@nrc.gov.
• Attention: The Public Document
Room (PDR), where you may examine
and order copies of public documents is
currently closed. You may submit your
request to the PDR via email at
PDR.Resource@nrc.gov or call 1–800–
397–4209 between 8:00 a.m. and 4:00
p.m. (EST), Monday through Friday,
except Federal holidays.
FOR FURTHER INFORMATION CONTACT: Jill
Shepherd, Office of Nuclear Material
Safety and Safeguards, U.S. Nuclear
Regulatory Commission, Washington,
DC 20555–0001; telephone: 301–415–
1230, email: Jill.Shepherd@nrc.gov.
SUPPLEMENTARY INFORMATION: The NRC
is correcting FR Doc. 20–21148, a final
rule that published in the Federal
Register on October 16, 2020 (85 FR
65656).
■ On page 65661, second column, sixth
paragraph, revise Instruction 8, to read
as follows ‘‘In § 20.1906, revise the
introductory text of paragraph (d) to
read as follows:’’.
Dated October 19, 2020.
For the Nuclear Regulatory Commission.
Cindy K. Bladey,
Chief, Regulatory Analysis and Rulemaking
Support Branch, Division of Rulemaking,
Environmental, and Financial Support, Office
of Nuclear Material Safety and Safeguards.
[FR Doc. 2020–23520 Filed 10–27–20; 8:45 am]
BILLING CODE 7590–01–P
DEPARTMENT OF TREASURY
Office of the Comptroller of the
Currency
12 CFR Parts 3 and 50
[Docket ID OCC–2020–0017]
RIN 1557–AE89; 1557–AE90; 1557–AE92]
FEDERAL RESERVE SYSTEM
12 CFR Parts 217 and 249
[Docket Nos. R–1711; 1712; and 1717]
RIN 7100–AF85; 7100–AF86: 7100–AF90
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 324 and 329
RIN 3064–AF41; 3064–AF49; 3064–AF51
Treatment of Certain Emergency
Facilities in the Regulatory Capital
Rule and the Liquidity Coverage Ratio
Rule
AGENCY: The Office of the Comptroller
of the Currency, Department of the
Treasury; the Board of Governors of the
Federal Reserve System; and the Federal
Deposit Insurance Corporation.
ACTION: Final rule.
SUMMARY: The Office of the Comptroller
of the Currency, the Board of Governors
of the Federal Reserve System, and the
Federal Deposit Insurance Corporation
are adopting as final the revisions to the
regulatory capital rule and the liquidity
coverage ratio (LCR) rule made under
three interim final rules published in
the Federal Register on March 23, April
13, and May 6, 2020. The agencies are
adopting these interim final rules as
final with no changes. Under this final
rule, banking organizations may
continue to neutralize the regulatory
capital effects of participating in the
Money Market Mutual Fund Liquidity
Facility (MMLF) and the Paycheck
Protection Program Liquidity Facility
(PPPLF), and are required to continue to
neutralize the LCR effects of
participating in the MMLF and the
PPPLF. In addition, Paycheck Protection
Program loans will receive a zero
percent risk weight under the agencies’
regulatory capital rules.
DATES: The final rule is effective
December 28, 2020.
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jbell on DSKJLSW7X2PROD with RULES
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations Federal Register
68243
Vol. 85, No. 209
Wednesday, October 28, 2020
NUCLEAR REGULATORY
COMMISSION
10 CFR Chapter I
[NRC–2020–0125]
RIN 3150–AK48
Miscellaneous Corrections
AGENCY: Nuclear Regulatory
Commission.
ACTION: Final rule, correction.
SUMMARY: The U.S. Nuclear Regulatory
Commission (NRC) is correcting a final
rule that appeared in the Federal
Register on October 16, 2020. The NRC
is amending its regulations to make
miscellaneous corrections. These
changes include redesignating footnotes,
correcting references, typographical
errors, nomenclature, titles, email
addresses, and contact information. This
action is necessary to correct an error
that appeared in Instruction 8 of the
final rule.
DATES: This correction is effective on
November 16, 2020.
ADDRESSES: Please refer to Docket ID
NRC–2020–0125 when contacting the
NRC about the availability of
information for this action. You may
obtain publicly-available information
related to this action by any of the
following methods:
• Federal Rulemaking Website: Go to
https://www.regulations.gov and search
for Docket ID NRC–2020–0125. Address
questions about NRC dockets to Carol
Gallagher; telephone: 301–415–3463;
email: Carol.Gallagher@nrc.gov.
• NRC’s Agencywide Documents
Access and Management System
(ADAMS): You may obtain publicly-
available documents online in the
ADAMS Public Documents Collection at
https://www.nrc.gov/reading-rm/
adams.html. To begin the search, select
‘‘Begin Web-based ADAMS Search.’’ For
problems with ADAMS, please contact
the NRC’s Public Document Room (PDR)
reference staff at 1–800–397–4209, 301–
415–4737, or by email to
PDR.Resource@nrc.gov.
• Attention: The Public Document
Room (PDR), where you may examine
and order copies of public documents is
currently closed. You may submit your
request to the PDR via email at
PDR.Resource@nrc.gov or call 1–800–
397–4209 between 8:00 a.m. and 4:00
p.m. (EST), Monday through Friday,
except Federal holidays.
FOR FURTHER INFORMATION CONTACT: Jill
Shepherd, Office of Nuclear Material
Safety and Safeguards, U.S. Nuclear
Regulatory Commission, Washington,
DC 20555–0001; telephone: 301–415–
1230, email: Jill.Shepherd@nrc.gov.
SUPPLEMENTARY INFORMATION: The NRC
is correcting FR Doc. 20–21148, a final
rule that published in the Federal
Register on October 16, 2020 (85 FR
65656).
■ On page 65661, second column, sixth
paragraph, revise Instruction 8, to read
as follows ‘‘In § 20.1906, revise the
introductory text of paragraph (d) to
read as follows:’’.
Dated October 19, 2020.
For the Nuclear Regulatory Commission.
Cindy K. Bladey,
Chief, Regulatory Analysis and Rulemaking
Support Branch, Division of Rulemaking,
Environmental, and Financial Support, Office
of Nuclear Material Safety and Safeguards.
[FR Doc. 2020–23520 Filed 10–27–20; 8:45 am]
BILLING CODE 7590–01–P
DEPARTMENT OF TREASURY
Office of the Comptroller of the
Currency
12 CFR Parts 3 and 50
[Docket ID OCC–2020–0017]
RIN 1557–AE89; 1557–AE90; 1557–AE92]
FEDERAL RESERVE SYSTEM
12 CFR Parts 217 and 249
[Docket Nos. R–1711; 1712; and 1717]
RIN 7100–AF85; 7100–AF86: 7100–AF90
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 324 and 329
RIN 3064–AF41; 3064–AF49; 3064–AF51
Treatment of Certain Emergency
Facilities in the Regulatory Capital
Rule and the Liquidity Coverage Ratio
Rule
AGENCY: The Office of the Comptroller
of the Currency, Department of the
Treasury; the Board of Governors of the
Federal Reserve System; and the Federal
Deposit Insurance Corporation.
ACTION: Final rule.
SUMMARY: The Office of the Comptroller
of the Currency, the Board of Governors
of the Federal Reserve System, and the
Federal Deposit Insurance Corporation
are adopting as final the revisions to the
regulatory capital rule and the liquidity
coverage ratio (LCR) rule made under
three interim final rules published in
the Federal Register on March 23, April
13, and May 6, 2020. The agencies are
adopting these interim final rules as
final with no changes. Under this final
rule, banking organizations may
continue to neutralize the regulatory
capital effects of participating in the
Money Market Mutual Fund Liquidity
Facility (MMLF) and the Paycheck
Protection Program Liquidity Facility
(PPPLF), and are required to continue to
neutralize the LCR effects of
participating in the MMLF and the
PPPLF. In addition, Paycheck Protection
Program loans will receive a zero
percent risk weight under the agencies’
regulatory capital rules.
DATES: The final rule is effective
December 28, 2020.
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68244 Federal Register / Vol. 85, No. 209 / Wednesday, October 28, 2020 / Rules and Regulations
1 12 U.S.C. 343(3).
2 The Paycheck Protection Program Liquidity
Facility was previously known as the Paycheck
Protection Program Lending Facility.
3 Congress created the PPP as part of the
Coronavirus Aid, Relief, and Economic Security Act
and in recognition of the exigent circumstances
faced by small businesses. PPP covered loans are
fully guaranteed as to principal and accrued interest
by the Small Business Administration (SBA) and
also afford borrower forgiveness up to the principal
amount and accrued interest of the PPP covered
loan, if the proceeds of the PPP covered loan are
used for certain expenses. Under the PPP, eligible
borrowers generally include businesses with fewer
than 500 employees or that are otherwise
considered to be small by the SBA. The SBA
reimburses PPP lenders for any amount of a PPP
covered loan that is forgiven. In general, PPP
lenders are not held liable for any representations
made by PPP borrowers in connection with a
borrower’s request for PPP covered loan
forgiveness. For more information on the Paycheck
Protection Program, see https://www.sba.gov/
funding-programs/loans/coronavirus-relief-options/
paycheck-protection-program-ppp.
4 The maturity date of the loan made under the
PPPLF will be accelerated if the underlying PPP
covered loan goes into default and the eligible
borrower sells the PPP covered loan to the Small
Business Administration (SBA) to realize the SBA
guarantee. The maturity date of the loan made
under the PPPLF also will be accelerated to the
extent of any PPP covered loan forgiveness
reimbursement received by the eligible borrower
from the SBA.
5 Banking organizations subject to the capital rule
include national banks, state member banks, state
nonmember banks, savings associations, and top-
tier bank holding companies and savings and loan
holding companies domiciled in the United States
not subject to the Board’s Small Bank Holding
Company Policy Statement (12 CFR part 225,
appendix C), but exclude certain savings and loan
holding companies that are substantially engaged in
insurance underwriting or commercial activities or
that are estate trusts, and bank holding companies
and savings and loan holding companies that are
employee stock ownership plans. See 12 CFR part
3 (OCC); 12 CFR part 217 (Board); and 12 CFR part
324 (FDIC).
6 See 12 CFR part 50 (OCC); 12 CFR part 249
(Board); and 12 CFR part 329 (FDIC).
7 85 FR 16232 (Mar. 23, 2020).
8 85 FR 20387 (Apr. 13, 2020).
FOR FURTHER INFORMATION CONTACT:
OCC: Andrew Tschirhart, Risk Expert,
Capital and Regulatory Policy, (202)
649–6370; James Weinberger, Technical
Expert, Treasury & Market Risk Policy,
(202) 649–6360; Henry Barkhausen,
Counsel, Kevin Korzeniewski, Counsel,
Rima Kundnani, Senior Attorney, or
Daniel Perez, 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.
Board: Anna Lee Hewko, Associate
Director, (202) 530–6360; Constance M.
Horsley, Deputy Associate Director,
(202) 452–5239; Juan Climent, Assistant
Director, (202) 872–7526; Kathryn
Ballintine, Manager, (202) 452–2555;
Kevin Littler, Lead Financial Institution
Policy Analyst, (202) 475–6677; Devyn
Jeffereis, Senior Financial Institution
Policy Analyst, (202) 365–2467; or
Brendan Rowan, Senior Financial
Institution Policy Analyst, (202) 475–
6685, Division of Supervision and
Regulation; or Benjamin W.
McDonough, Assistant General Counsel,
(202) 452–2036; David W. Alexander,
Senior Counsel, (202) 452–2877; Steve
Bowne, Senior Counsel, (202) 452–3900;
Jason Shafer, Senior Counsel, (202) 728–
5811; Laura Bain, Counsel (202) 736–
5546; or Jeffery Zhang, Attorney, (202)
736–1968, Legal Division, Board of
Governors of the Federal Reserve
System, 20th Street and Constitution
Avenue NW, Washington, DC 20551.
Users of Telecommunication Device for
the Deaf (TDD) only, call (202) 263–
4869.
FDIC: Bobby R. Bean, Associate
Director, bbean@fdic.gov; Benedetto
Bosco, Chief, Capital Policy Section,
bbosco@fdic.gov; Noah Cuttler, Senior
Policy Analyst, ncuttler@fdic.gov; Eric
Schatten, Senior Policy Analyst,
eschatten@fdic.gov; Andrew
Carayiannis, Senior Policy Analyst,
acarayiannis@fdic.gov;
regulatorycapital@fdic.gov; Capital
Markets Branch, Division of Risk
Management Supervision, (202) 898–
6888; or Michael Phillips, Counsel,
mphillips@fdic.gov; Catherine Wood,
Counsel, cawood@fdic.gov; Sue Dawley,
Counsel, sudawley@fdic.gov; Gregory
Feder, Counsel, gfeder@fdic.gov;
Andrew B. Williams, II, Counsel,
andwilliams@fdic.gov; Supervision and
Legislation Branch, Legal Division,
Federal Deposit Insurance Corporation,
550 17th Street NW, Washington, DC
20429. For the hearing impaired only,
Telecommunication Device for the Deaf
(TDD), (800) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
A. Capital Rule
B. LCR Rule
II. Overview of the Interim Final Rules and
Public Comments
A. MMLF Capital Interim Final Rule
B. PPPLF Capital Interim Final Rule
C. LCR Interim Final Rule
D. Public Comments
III. Summary of the Final Rule
IV. Administrative Law Matters
A. Congressional Review Act
B. Paperwork Reduction Act
C. Regulatory Flexibility Act
D. Riegle Community Development and
Regulatory Improvement Act of 1994
E. Use of Plain Language
F. OCC Unfunded Mandates Reform Act of
1995
I. Background
In light of recent disruptions in
economic conditions caused by the
outbreak of the coronavirus disease
2019 and the stress in U.S. financial
markets, the Board of Governors of the
Federal Reserve System (Board), with
the approval of the U.S. Secretary of the
Treasury, established certain liquidity
facilities pursuant to section 13(3) of the
Federal Reserve Act.1
In order to prevent disruptions in the
money markets from destabilizing the
financial system, the Board authorized
the Federal Reserve Bank of Boston to
establish the Money Market Mutual
Fund Liquidity Facility (MMLF). Under
the MMLF, the Federal Reserve Bank of
Boston may extend non-recourse loans
to eligible borrowers to purchase assets
from money market mutual funds.
Assets purchased from money market
mutual funds are posted as collateral to
the Federal Reserve Bank of Boston.
In order to provide liquidity to small
business lenders and the broader credit
markets, and to help stabilize the
financial system, the Board authorized
each of the Federal Reserve Banks to
extend credit under the Paycheck
Protection Program Liquidity Facility
(PPPLF).2 Under the PPPLF, each of the
Federal Reserve Banks may extend non-
recourse loans to institutions that are
eligible to make Paycheck Protection
Program (PPP) covered loans as defined
in section 7(a)(36) of the Small Business
Act.3 Under the PPPLF, only PPP
covered loans that are guaranteed by the
Small Business Administration (SBA)
with respect to both principal and
accrued interest and that are originated
by an eligible institution may be
pledged as collateral to the Federal
Reserve Banks. The maturity date of the
extension of credit under the PPPLF
equals the maturity date of the PPP
covered loans pledged to secure the
extension of credit.4
Eligible borrowers from the MMLF
and PPPLF and holders of PPP covered
loans include banking organizations
supervised by the Office of the
Comptroller of the Currency (OCC), the
Board, and the Federal Deposit
Insurance Corporation (FDIC) (together,
the agencies) that are subject to the
agencies’ regulatory capital rule (capital
rule) 5 and that may be subject to the
liquidity coverage ratio (LCR) rule.6 To
facilitate the use of the MMLF and the
PPPLF, the agencies adopted three
interim final rules (interim final rules)
to address the capital treatment of
participation in the MMLF (MMLF
capital interim final rule),7 the capital
treatment of participation in the PPPLF
(PPPLF capital interim final rule),8 and
the LCR treatment of participation in the
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1 12 U.S.C. 343(3).
2 The Paycheck Protection Program Liquidity
Facility was previously known as the Paycheck
Protection Program Lending Facility.
3 Congress created the PPP as part of the
Coronavirus Aid, Relief, and Economic Security Act
and in recognition of the exigent circumstances
faced by small businesses. PPP covered loans are
fully guaranteed as to principal and accrued interest
by the Small Business Administration (SBA) and
also afford borrower forgiveness up to the principal
amount and accrued interest of the PPP covered
loan, if the proceeds of the PPP covered loan are
used for certain expenses. Under the PPP, eligible
borrowers generally include businesses with fewer
than 500 employees or that are otherwise
considered to be small by the SBA. The SBA
reimburses PPP lenders for any amount of a PPP
covered loan that is forgiven. In general, PPP
lenders are not held liable for any representations
made by PPP borrowers in connection with a
borrower’s request for PPP covered loan
forgiveness. For more information on the Paycheck
Protection Program, see https://www.sba.gov/
funding-programs/loans/coronavirus-relief-options/
paycheck-protection-program-ppp.
4 The maturity date of the loan made under the
PPPLF will be accelerated if the underlying PPP
covered loan goes into default and the eligible
borrower sells the PPP covered loan to the Small
Business Administration (SBA) to realize the SBA
guarantee. The maturity date of the loan made
under the PPPLF also will be accelerated to the
extent of any PPP covered loan forgiveness
reimbursement received by the eligible borrower
from the SBA.
5 Banking organizations subject to the capital rule
include national banks, state member banks, state
nonmember banks, savings associations, and top-
tier bank holding companies and savings and loan
holding companies domiciled in the United States
not subject to the Board’s Small Bank Holding
Company Policy Statement (12 CFR part 225,
appendix C), but exclude certain savings and loan
holding companies that are substantially engaged in
insurance underwriting or commercial activities or
that are estate trusts, and bank holding companies
and savings and loan holding companies that are
employee stock ownership plans. See 12 CFR part
3 (OCC); 12 CFR part 217 (Board); and 12 CFR part
324 (FDIC).
6 See 12 CFR part 50 (OCC); 12 CFR part 249
(Board); and 12 CFR part 329 (FDIC).
7 85 FR 16232 (Mar. 23, 2020).
8 85 FR 20387 (Apr. 13, 2020).
FOR FURTHER INFORMATION CONTACT:
OCC: Andrew Tschirhart, Risk Expert,
Capital and Regulatory Policy, (202)
649–6370; James Weinberger, Technical
Expert, Treasury & Market Risk Policy,
(202) 649–6360; Henry Barkhausen,
Counsel, Kevin Korzeniewski, Counsel,
Rima Kundnani, Senior Attorney, or
Daniel Perez, 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.
Board: Anna Lee Hewko, Associate
Director, (202) 530–6360; Constance M.
Horsley, Deputy Associate Director,
(202) 452–5239; Juan Climent, Assistant
Director, (202) 872–7526; Kathryn
Ballintine, Manager, (202) 452–2555;
Kevin Littler, Lead Financial Institution
Policy Analyst, (202) 475–6677; Devyn
Jeffereis, Senior Financial Institution
Policy Analyst, (202) 365–2467; or
Brendan Rowan, Senior Financial
Institution Policy Analyst, (202) 475–
6685, Division of Supervision and
Regulation; or Benjamin W.
McDonough, Assistant General Counsel,
(202) 452–2036; David W. Alexander,
Senior Counsel, (202) 452–2877; Steve
Bowne, Senior Counsel, (202) 452–3900;
Jason Shafer, Senior Counsel, (202) 728–
5811; Laura Bain, Counsel (202) 736–
5546; or Jeffery Zhang, Attorney, (202)
736–1968, Legal Division, Board of
Governors of the Federal Reserve
System, 20th Street and Constitution
Avenue NW, Washington, DC 20551.
Users of Telecommunication Device for
the Deaf (TDD) only, call (202) 263–
4869.
FDIC: Bobby R. Bean, Associate
Director, bbean@fdic.gov; Benedetto
Bosco, Chief, Capital Policy Section,
bbosco@fdic.gov; Noah Cuttler, Senior
Policy Analyst, ncuttler@fdic.gov; Eric
Schatten, Senior Policy Analyst,
eschatten@fdic.gov; Andrew
Carayiannis, Senior Policy Analyst,
acarayiannis@fdic.gov;
regulatorycapital@fdic.gov; Capital
Markets Branch, Division of Risk
Management Supervision, (202) 898–
6888; or Michael Phillips, Counsel,
mphillips@fdic.gov; Catherine Wood,
Counsel, cawood@fdic.gov; Sue Dawley,
Counsel, sudawley@fdic.gov; Gregory
Feder, Counsel, gfeder@fdic.gov;
Andrew B. Williams, II, Counsel,
andwilliams@fdic.gov; Supervision and
Legislation Branch, Legal Division,
Federal Deposit Insurance Corporation,
550 17th Street NW, Washington, DC
20429. For the hearing impaired only,
Telecommunication Device for the Deaf
(TDD), (800) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
A. Capital Rule
B. LCR Rule
II. Overview of the Interim Final Rules and
Public Comments
A. MMLF Capital Interim Final Rule
B. PPPLF Capital Interim Final Rule
C. LCR Interim Final Rule
D. Public Comments
III. Summary of the Final Rule
IV. Administrative Law Matters
A. Congressional Review Act
B. Paperwork Reduction Act
C. Regulatory Flexibility Act
D. Riegle Community Development and
Regulatory Improvement Act of 1994
E. Use of Plain Language
F. OCC Unfunded Mandates Reform Act of
1995
I. Background
In light of recent disruptions in
economic conditions caused by the
outbreak of the coronavirus disease
2019 and the stress in U.S. financial
markets, the Board of Governors of the
Federal Reserve System (Board), with
the approval of the U.S. Secretary of the
Treasury, established certain liquidity
facilities pursuant to section 13(3) of the
Federal Reserve Act.1
In order to prevent disruptions in the
money markets from destabilizing the
financial system, the Board authorized
the Federal Reserve Bank of Boston to
establish the Money Market Mutual
Fund Liquidity Facility (MMLF). Under
the MMLF, the Federal Reserve Bank of
Boston may extend non-recourse loans
to eligible borrowers to purchase assets
from money market mutual funds.
Assets purchased from money market
mutual funds are posted as collateral to
the Federal Reserve Bank of Boston.
In order to provide liquidity to small
business lenders and the broader credit
markets, and to help stabilize the
financial system, the Board authorized
each of the Federal Reserve Banks to
extend credit under the Paycheck
Protection Program Liquidity Facility
(PPPLF).2 Under the PPPLF, each of the
Federal Reserve Banks may extend non-
recourse loans to institutions that are
eligible to make Paycheck Protection
Program (PPP) covered loans as defined
in section 7(a)(36) of the Small Business
Act.3 Under the PPPLF, only PPP
covered loans that are guaranteed by the
Small Business Administration (SBA)
with respect to both principal and
accrued interest and that are originated
by an eligible institution may be
pledged as collateral to the Federal
Reserve Banks. The maturity date of the
extension of credit under the PPPLF
equals the maturity date of the PPP
covered loans pledged to secure the
extension of credit.4
Eligible borrowers from the MMLF
and PPPLF and holders of PPP covered
loans include banking organizations
supervised by the Office of the
Comptroller of the Currency (OCC), the
Board, and the Federal Deposit
Insurance Corporation (FDIC) (together,
the agencies) that are subject to the
agencies’ regulatory capital rule (capital
rule) 5 and that may be subject to the
liquidity coverage ratio (LCR) rule.6 To
facilitate the use of the MMLF and the
PPPLF, the agencies adopted three
interim final rules (interim final rules)
to address the capital treatment of
participation in the MMLF (MMLF
capital interim final rule),7 the capital
treatment of participation in the PPPLF
(PPPLF capital interim final rule),8 and
the LCR treatment of participation in the
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