Credit Unions: Organization and operations— Safe deposit box service; elimination,

[Federal Register: January 4, 1999 (Volume 64, Number 1)]

[Proposed Rules]

[Page 57-58]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr04ja99-26]

NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 701

Organization and Operation of Federal Credit Unions

AGENCY: National Credit Union Administration (NCUA).

ACTION: Proposed rule.

SUMMARY: The NCUA Board proposes removing its rule governing safe deposit box service. This revision will eliminate an unnecessary section from the regulations.

DATES: Comments must be received on or before March 5, 1999.

ADDRESSES: Direct comments to Becky Baker, Secretary of the Board. Mail or hand-deliver comments to: National Credit Union Administration, 1775 Duke Street, Alexandria, Virginia 22314-3428. You may fax comments to (703) 518-6319. Please send comments by one method only.

FOR FURTHER INFORMATION CONTACT: Regina M. Metz, Staff Attorney, Division of Operations, Office of General Counsel, at the above address or telephone: (703) 518-6540.

SUPPLEMENTARY INFORMATION:

1. Background

   NCUA has a policy of continually reviewing its regulations to ``update, clarify and simplify existing regulations and eliminate redundant and unnecessary provisions.'' Interpretive Rulings and Policy Statement (IRPS) 87-2, Developing and Reviewing Government Regulations. Our review of Sec. 701.30 of NCUA's regulations has revealed that this section is an unnecessary provision.

2. Proposed Rule

   The proposed rule removes the section of the regulations regarding safe deposit box service. 12 CFR 701.30. The NCUA Board proposes removing this section to streamline the publication of the regulations. The deletion of Sec. 701.30 does not affect the authority of federal credit unions to offer safe deposit box service.

3. Section 701.30 Analysis

   Section 701.30 of NCUA's regulations provides that a federal credit union may lease safe deposit boxes to its members. The Board recommends removing Sec. 701.30 because it is no longer necessary. Under the Federal Credit Union Act (the Act), federal credit unions have the power to exercise incidental powers that are necessary or requisite to enable them to carry on effectively the business for which they are incorporated. 12 U.S.C. 1757(17). Federal credit unions may lease safe deposit boxes to their members as part of routine services that federal credit unions can provide. The removal of Sec. 701.30 would not affect this incidental authority.

4. Regulatory Procedures

   1. Regulatory Flexibility Act

      The Regulatory Flexibility Act requires NCUA to prepare an analysis to describe any significant economic impact any proposed regulation may have on a substantial number of small entities (primarily those under $1 million in assets). NCUA has determined and certifies that this proposed rule will not have a significant economic impact on a substantial number of small credit unions. Accordingly, NCUA has determined that a Regulatory Flexibility analysis is not required.

   2. Paperwork Reduction Act

      This proposed rule to remove Sec. 701.30 does not involve a collection of information under the Paperwork Reduction Act. Accordingly, NCUA has determined that a Paperwork Reduction analysis is not required.

   3. Executive Order 12612

      Executive Order 12612 requires NCUA to consider the effect of its actions on state interests. The proposed rule is to remove a current regulation that applies to federal credit unions, not federally insured state chartered credit unions. Therefore, NCUA has determined that the proposed rule does not constitute a ``significant regulatory action'' for purposes of the Executive Order.

      [[Page 58]]

      List of Subjects in 12 CFR Part 701

      Credit unions, Safe deposit box service.

      By the National Credit Union Administration Board on December 17, 1998. Becky Baker, Secretary of the Board.

      For the reasons set forth in the preamble, the National Credit Union Administration proposes to amend 12 CFR part 701 as follows:

      PART 701--ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS

   1. The authority citation for part 701 continues to read 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. 1861 and 42 U.S.C. 3601-3610. Section 701.35 is also authorized by 42 U.S.C. 4311-4312.

      Sec. 701.30 [Removed]

   2. Part 701 is amended to remove Sec. 701.30.

      [FR Doc. 98-34030Filed12-31-98; 8:45 am]

      BILLING CODE 7535-01-U