Credit unions: Technical amendments,
[Federal Register: October 25, 1999 (Volume 64, Number 205)]
[Rules and Regulations]
[Page 57363-57365]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25oc99-2]
NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Parts 701, 703, 704, 709, 712, 713, 723, 790, 791 and 792
Credit Unions; Miscellaneous Technical Amendments
AGENCY: National Credit Union Administration (NCUA).
ACTION: Final Rule.
SUMMARY: NCUA is correcting minor errors or omissions made in several rules. These amendments are technical rather than substantive.
DATES: This rule is effective October 25, 1999.
FOR FURTHER INFORMATION CONTACT: Chrisanthy J. Loizos, Staff Attorney, Division of Operations, Office of General Counsel, (703) 518-6540, National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-3428.
SUPPLEMENTARY INFORMATION: NCUA has issued final rules over several years that contain minor technical mistakes or omissions. Through various amendments, NCUA is correcting the errors found in the following rules.
NCUA is removing this section because it currently indicates that a publication entitled ``Federal Credit Union Bylaws'' is incorporated by reference into NCUA's regulations. However, NCUA does not have such a publication approved by the Office of the Federal Register.
12 CFR 701.21(a) and 12 CFR 703.20(c)
On March 5, 1998, Sec. 701.27 was removed and incorporated into part 712, entitled ``Credit Union Service Organizations (CUSOs).'' 63 FR 10756. Therefore, NCUA is replacing references to Sec. 701.27 with part 712 in these sections.
12 CFR 703.20(a) and 12 CFR 704.7(d)
Prior to September 29, 1998, member business loans were excluded from part 703 through Sec. 701.21(h). On that date, NCUA issued an interim final rule that removed the member business loan provisions from Sec. 701.21(h) and relocated them to part 723. 63 FR 51799. This change became final on May 27, 1999. 64 FR 28729. When part 723 was issued, NCUA unintentionally failed to amend Sec. 703.20(a) to reflect the change. Similarly, NCUA is also replacing the reference to Sec. 701.21(h) within Sec. 704.7(d) to part 723.
Section 709.5(e) refers to a list of claims found in paragraph (b) of this section. When paragraph (b)(9) was added to Sec. 709.5(b), NCUA failed to amend paragraph (e) to reflect the change. 62 FR 12949, Mar. 19, 1997. Therefore, NCUA is now amending the last sentence of Sec. 709.5(e).
Part 712 was adopted with the title to Sec. 712.9 mislabeled in its table of contents. 63 FR 10756, Mar. 5, 1998. Therefore, NCUA is correcting the table of contents to represent the title of Sec. 712.9 accurately.
NCUA recently amended this section, but the amended language inadvertently repeated the first sentence of this paragraph. 64 FR 33187, June 22, 1999.
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NCUA is removing the duplicative sentence.
NCUA recently adopted this section with a typographical error. 64 FR 28720, May 27, 1999. NCUA is replacing the word ``potentials'' with the word ``potential.''
NCUA is removing the word ``or'' from the phrase ``amount equal to or less than $50,000'' found in this paragraph. This language, relating to the definition of a member business loan, was adopted originally in an interim final rule and adopted in final form on May 27, 1999. 63 FR 51800, Sept. 29, 1998 and 64 FR 28730. NCUA is amending this rule to mirror the definition of member business rule found in the Federal Credit Union Act at 12 U.S.C. 1757a(c)(1)(B)(iii).
12 CFR 790.2(b)(7) and (b)(16)
NCUA changed the name of its Office of Information Systems to the Office of Technology and Information Systems. 59 FR 47072, Sept. 14, 1994. At the time the rule was amended, the name change was not reflected in paragraph (b)(7). Therefore, NCUA is correcting this omission. During the same rulemaking, NCUA created the Office of Corporate Credit Unions at Sec. 790.2(b)(16). 59 FR 47072, Sept. 14, 1994. NCUA is changing a punctuation mark in this paragraph to distinguish clearly the duties listed for the office.
Part 790 formerly consisted of rules regarding NCUA's structure and the disclosure of official records. NCUA restructured part 790 and moved the rules relating to the Freedom of Information Act to part 792. 54 FR 18476, May 1, 1989. The pertinent rules referenced in this section were redesignated to part 792, but NCUA did not amend this section to reflect the change. Therefore, NCUA is correcting the outdated citations with references to part 792.
This paragraph refers to Sec. 792.23. However, Sec. 792.23 was redesignated to Sec. 792.55. 63 FR 14338, March 25, 1998. Therefore the reference in Sec. 792.54(b) will be changed to refer to Sec. 792.55.
12 CFR 792.55(a) and 12 CFR 792.56(a)
Both of these sections refer to Sec. 792.22. However, Sec. 792.22 was redesignated to Sec. 792.54. 63 FR 14338, March 25, 1998. Therefore, the references to Sec. 792.22 will be changed to refer to Sec. 792.54.
This section, formerly Sec. 792.34(b)(2), was adopted with a typographical error by referring to System NCUA-4 rather than System NCUA-15. 54 FR 18476, May 1, 1989 and 60 FR 31912, Jun. 19, 1995. NCUA has consistently given notice that System NCUA-4 is the Verified Employee Mailing List and that System NCUA-15 contains investigative reports regarding criminal activity. Therefore, NCUA is amending the reference within Sec. 792.66(b)(2) from System NCUA-4 to System NCUA- 15. Additionally, the name of System NCUA-15 was changed from Investigative Reports Involving Possible Felonies and/or Violations of the Federal Credit Union Act to Investigative Reports Involving Any Crime, Suspected Crime or Suspicious Activity Against a Credit Union, NCUA. 61 FR 8690, March 5, 1996. NCUA is amending this section to adopt the new name of System NCUA-15.
Regulatory Procedures
Final Rule Under the Administrative Procedure Act
The amendments to the final rule are technical rather than substantive. NCUA finds good cause that notice and public comment are unnecessary under sec. 553(b)(B) of the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(B).
Effective Date
NCUA also finds good cause to dispense with the 30-day delayed effective date requirement under sec. 553(d)(3) of the APA. The rule is technical rather than substantive. The rule will, therefore, be effective immediately upon publication of this notice.
Regulatory Flexibility Act
An initial regulatory flexibility analysis under the Regulatory Flexibility Act is required only when an agency is required to publish a general notice of proposed rulemaking for any proposed rule. 5 U.S.C. 603. As noted previously, NCUA has determined that it is not necessary to publish a notice of proposed rulemaking for this rule. Accordingly, an initial regulatory analysis is not required. Moreover, since this final rule imposes no new requirements and makes only technical amendments, NCUA has determined and certifies that this rule will not have any significant economic impact on a substantial number of small credit unions (primarily those under $1 million in assets).
Small Business Regulatory Enforcement Fairness Act
Title II of the Small Business Regulatory Enforcement Fairness Act (SBREFA) of 1996 (Pub. L. 104-121) provides, generally, for congressional review of agency rules. A reporting requirement is triggered in instances where NCUA issues a final rule as defined by Section 551 of the Administrative Procedures Act. 5 U.S.C. 551. The Office of Management and Budget has reviewed this rule and has determined that for purposes of the Small Business Regulatory Enforcement Fairness Act of 1996 it is not a major rule.
Paperwork Reduction Act
NCUA has determined that the final rule does not increase paperwork requirements under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) and regulations of the Office of Management and Budget.
Executive Order 12612
Executive Order 12612 requires NCUA to consider the effect of its actions on state interests. A portion of this final rule will apply to all federally-insured credit unions. This final rule will not have a direct effect on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. NCUA has determined that this final rule does not constitute a significant regulatory action for purposes of the executive order.
List of Subjects
12 CFR Part 701
Credit unions, Incorporation by reference, Credit.
Credit unions, Investments, Credit.
Credit unions, Corporate credit unions, Credit.
Credit unions, Liquidation.
Credit unions, Credit union service organizations.
Credit unions, Fidelity bonds.
Credit Unions, Credit, Reporting and recordkeeping requirements.
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Credit unions.
Credit unions, Sunshine Act, Reporting and recordkeeping requirements.
12 CFR Part 792
Administrative practice and procedure, Credit unions, Freedom of Information Act, Reporting and recordkeeping requirements.
By the National Credit Union Administration Board on October 12, 1999. Becky Baker, Secretary of the Board.
For the reasons stated in the preamble, NCUA amends 12 CFR chapter VII as set forth below:
PART 701--ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS
-
The authority citation for part 701 reads as follows:
Authority: 12 U.S.C. 1752(5), 1755, 1756, 1757, 1759, 1761a, 1761b, 1766, 1767, 1782, 1784, 1787, and 1789. Section 701.6 is also authorized by 31 U.S.C. 3717. Section 701.31 is also authorized by 15 U.S.C. 1601 et seq., 42 U.S.C. 1981 and 3601-3610. Section 701.35 is also authorized by 42 U.S.C. 4311-4312.
Sec. 701.2 [Removed and Reserved]
-
Remove and reserve Sec. 701.2.
Sec. 701.21 [Amended]
-
In Sec. 701.21(a), remove the word ``Sec. 701.27'' and add, in its place, the words ``Part 712''.
PART 703--INVESTMENT AND DEPOSIT ACTIVITIES
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The authority citation for part 703 continues to read as follows:
Authority: 12 U.S.C. 1757(7), 1757(8), 1757(15).
Sec. 703.20 [Amended]
-
In Sec. 703.20(a), remove the words ``and 701.23'' and add in their place, the words ``701.23, and part 723''; and in Sec. 703.20(c), remove the word ``Sec. 701.27'' and add, in its place, the words ``part 712''.
PART 704--CORPORATE CREDIT UNIONS
-
The authority citation for part 704 continues to read as follows:
Authority: 12 U.S.C. 1762, 1766(a), 1781, and 1789.
Sec. 704.7 [Amended]
-
In Sec. 704.7(d), remove the word ``Sec. 701.21(h)'' and add, in its place, the words ``part 723''.
PART 709--INVOLUNTARY LIQUIDATION OF FEDERAL CREDIT UNIONS AND ADJUDICATION OF CREDITOR CLAIMS INVOLVING FEDERALLY INSURED CREDIT UNIONS IN LIQUIDATION
-
The authority citation for part 709 continues to read as follows:
Authority: 12 U.S.C. 1766; Pub. L. 101-73, 103 Stat. 183, 530 (1989) (12 U.S.C. 1787 et seq.).
Sec. 709.5 [Amended]
-
In Sec. 709.5(e), remove ``(b)(8)'' and add, in its place ``(b)(9)''.
PART 712--CREDIT UNION SERVICE ORGANIZATIONS (CUSOs)
-
The authority citation for part 712 continues to read as follows:
Authority: 12 U.S.C. 1756, 1757(5)(D) and (7)(I), 1766, 1782, 1785, and 1786.
Sec. 712.3 [Amended]
11-12. In Sec. 712.3(a), remove one sentence that reads ``An FCU can invest in or loan to a CUSO only if the CUSO is structured as a corporation, limited liability company, or limited partnership.''
PART 713--FIDELITY BOND AND INSURANCE COVERAGE FOR FEDERAL CREDIT UNIONS
-
The authority citation for part 713 continues to read as follows:
Authority: 12 U.S.C. 1761a, 1761b, 1766(a), 1766(h), 1789(a)(11).
Sec. 713.2 [Amended]
-
In Sec. 713.2, remove ``potentials'' and add, in its place ``potential''.
PART 723--MEMBER BUSINESS LOANS
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The authority citation for part 723 continues to read as follows:
Authority: 12 U.S.C. 1756, 1757, 1757A, 1766, 1785, 1789.
Sec. 723.1 [Amended]
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In Sec. 723.1(b)(3), remove ``to or less'' and add, in its place, ``to less''.
PART 790--DESCRIPTION OF NCUA; REQUESTS FOR AGENCY ACTION
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The authority citation for part 790 continues to read as follows:
Authority: 12 U.S.C. 1766, 1789, 1795f.
Sec. 790.2 [Amended]
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In Sec. 790.2(b)(7), remove ``Information Systems'' and add, in its place, ``Technology and Information Systems''.
-
In Sec. 790.2(b)(16), remove the comma after the word ``manner'' and add a semicolon in its place.
PART 791--RULES OF NCUA BOARD PROCEDURE; PROMULGATION OF NCUA RULES AND REGULATIONS; PUBLIC OBSERVATION OF NCUA BOARD MEETINGS
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The authority citation for part 791 continues to read as follows:
Authority: 12 U.S.C. 1766, 1789 and 5 U.S.C. 522b.
Sec. 791.18 [Amended]
-
In Sec. 791.18(e), remove all the references to ``790'' and add, in their place, ``792''.
PART 792--REQUESTS FOR INFORMATION UNDER THE FREEDOM OF INFORMATION ACT AND PRIVACY ACT, AND BY SUBPOENA; SECURITY PROCEDURES FOR CLASSIFIED INFORMATION
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The authority citation for part 792 continues as follows:
Authority: 5 U.S.C. 301, 552, 552a, 552b; 12 U.S.C 1752a(d), 1766, 1789, 1795f; E.O. 12600, 52 FR 23781, 3 CFR, 1987 Comp., p. 235; E.O. 12958, 60 FR 19825, 3 CFR, 1995 Comp., p. 333.
Sec. 792.54 [Amended]
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In Sec. 792.54(b), remove ``Sec. 792.23'' and add, in its place, ``Sec. 792.55''.
Sec. 792.55 [Amended]
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In Sec. 792.55(a), remove ``Sec. 792.22'' and add, in its place, ``Sec. 792.54''.
Sec. 792.56 [Amended]
-
In Sec. 792.56(a), remove ``Sec. 792.22(a)'' and add, in its place, ``Sec. 792.54(a)''.
Sec. 792.66 [Amended]
-
In Sec. 792.66(b)(2), remove ``NCUA-4'' and add, in its place, ``NCUA-15''; and remove the words ``Investigative Reports Involving Possible Felonies and/or Violations of the Federal Credit Union Act'' and add, in their place ``Investigative Reports Involving Any Crime, Suspected Crime or Suspicious Activity Against a Credit Union, NCUA''.
[FR Doc. 99-27567Filed10-22-99; 8:45 am]
BILLING CODE 7535-01-P
