[Federal Register Volume 64, Number 205 (Monday, October 25, 1999)]
[Rules and Regulations]
[Pages 57363-57365]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27567]
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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.
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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.
12 CFR 701.2
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.
12 CFR 709.5(e)
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).
12 CFR Part 712
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.
12 CFR 712.3(a)
NCUA recently amended this section, but the amended language
inadvertently repeated the first sentence of this paragraph. 64 FR
33187, June 22, 1999.
[[Page 57364]]
NCUA is removing the duplicative sentence.
12 CFR 713.2
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.''
12 CFR 723.1(b)(3)
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.
12 CFR 791.18(e)
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.
12 CFR 792.54(b)
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.
12 CFR 792.66(b)(2)
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.
12 CFR Part 703
Credit unions, Investments, Credit.
12 CFR Part 704
Credit unions, Corporate credit unions, Credit.
12 CFR Part 709
Credit unions, Liquidation.
12 CFR Part 712
Credit unions, Credit union service organizations.
12 CFR Part 713
Credit unions, Fidelity bonds.
12 CFR Part 723
Credit Unions, Credit, Reporting and recordkeeping requirements.
[[Page 57365]]
12 CFR Part 790
Credit unions.
12 CFR Part 791
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
1. 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]
2. Remove and reserve Sec. 701.2.
Sec. 701.21 [Amended]
3. 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
4. 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]
5. 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
6. 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]
7. 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
8. 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]
9. In Sec. 709.5(e), remove ``(b)(8)'' and add, in its place
``(b)(9)''.
PART 712--CREDIT UNION SERVICE ORGANIZATIONS (CUSOs)
10. 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
13. 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]
14. In Sec. 713.2, remove ``potentials'' and add, in its place
``potential''.
PART 723--MEMBER BUSINESS LOANS
15. 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]
16. 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
17. The authority citation for part 790 continues to read as
follows:
Authority: 12 U.S.C. 1766, 1789, 1795f.
Sec. 790.2 [Amended]
18. In Sec. 790.2(b)(7), remove ``Information Systems'' and add, in
its place, ``Technology and Information Systems''.
19. 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
20. 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]
21. 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
22. 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]
23. In Sec. 792.54(b), remove ``Sec. 792.23'' and add, in its
place, ``Sec. 792.55''.
Sec. 792.55 [Amended]
24. In Sec. 792.55(a), remove ``Sec. 792.22'' and add, in its
place, ``Sec. 792.54''.
Sec. 792.56 [Amended]
26. In Sec. 792.56(a), remove ``Sec. 792.22(a)'' and add, in its
place, ``Sec. 792.54(a)''.
Sec. 792.66 [Amended]
27. 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. 99-27567 Filed 10-22-99; 8:45 am]
BILLING CODE 7535-01-P
