[Federal Register Volume 60, Number 91 (Thursday, May 11, 1995)]
[Rules and Regulations]
[Pages 25121-25122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11657]
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 707
Truth in Savings
AGENCY: National Credit Union Administration.
ACTION: Final rule; extension of compliance date.
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SUMMARY: The NCUA Board is publishing a change to the compliance date
of Appendix C to NCUA's Truth in Savings regulation. This document
extends the compliance date for all credit unions until January 1,
1996. This extension gives credit unions more time to come into
compliance with the technicalities of the Truth in Savings regulation.
DATES: Effective Date: This document is effective May 11, 1995.
[[Page 25122]]
Compliance Date: The compliance date of Appendix C to part 707 is
extended to January 1, 1996.
FOR FURTHER INFORMATION CONTACT: Martin S. Conrey, Staff Attorney,
Office of General Counsel, telephone (703) 518-6540.
SUPPLEMENTARY INFORMATION:
Background
The Truth in Savings Act (``TISA''), contained in the Federal
Deposit Insurance Corporation Improvement Act of 1991, Public Law No.
102-242, 12 U.S.C. 4301 et seq., was enacted in December 1991. TISA
directed the Federal Reserve Board (``FRB'') to issue final regulations
governing depository institutions other than credit unions. Regulation
DD was promulgated by the FRB on September 21, 1992, with a compliance
date of June 21, 1993. 57 FR 43337 (September 21, 1992), as extended in
58 FR 15077 (March 19, 1993). In addition, the FRB issued an Official
Staff Commentary to Regulation DD to expand upon and interpret TISA
requirements for banks and thrifts. 59 FR 40217 (August 8, 1994). The
FRB made compliance with the Official Staff Commentary optional for six
months, making compliance mandatory on February 6, 1995.
NCUA, obligated to issue a rule for credit unions substantially
similar to Regulation DD, promulgated part 707 to the NCUA Rules and
Regulations on September 27, 1993, with a compliance date of January 1,
1995, for most credit unions. 58 FR 50394 (September 27, 1993). To be
substantially similar to Regulation DD, NCUA also promulgated an
Official Staff Commentary to explain and interpret TISA requirements
for credit unions. 59 FR 59887 (November 21, 1994). Like the FRB, NCUA
made compliance with the Official Staff Commentary optional for six
months, making compliance mandatory on May 22, 1995. Small,
nonautomated credit unions with assets of $2 million or less are exempt
from part 707 coverage, including the Official Staff Commentary, until
January 1, 1996. 59 FR 39425 (August 3, 1994).
In the meantime, several bills have been introduced into the 104th
Congress of the United States to either repeal, or restrict the scope
of TISA. ``A bill to repeal the Truth in Savings Act,'' H.R. 337,
introduced in the House of Representatives on January 4, 1995, would
repeal TISA. The ``Financial Institutions Regulatory Relief Act of
1995,'' H.R. 1362, introduced in the House of Representatives on March
30, 1995, would amend TISA by repealing many of its disclosure
requirements and civil liability provisions. The ``Economic Growth and
Regulatory Paperwork Reduction Act of 1995,'' S. 650, introduced in the
Senate on March 30, 1995, would repeal TISA and replace it with the
Payment of Interest Act (``PIA''). PIA would basically eliminate TISA's
disclosure requirements, but would retain the requirement that interest
and dividends on accounts be calculated on the full amount of principal
in the account for each day and at the rate(s) disclosed by the
depository institution.
Given all of this legislative activity, and requests for a
postponement in the Official Staff Commentary from several credit
unions and a national trade association, the Board has decided, in the
name of regulatory relief and in the spirit of the National Performance
Review and the Presidential Regulatory Reform Initiative, to delay the
compliance date of the Official Staff Commentary, Appendix C, to part
707 until January 1, 1996. The new Official Staff Commentary compliance
date will coincide with the general part 707 compliance date for small,
nonautomated credit unions. A compliance date extension of this length
will enable the NCUA to observe and implement any possible legislative
initiatives by the 104th Congress, while also providing regulatory
relief to all credit unions already complying with NCUA's Truth in
Savings rules. 12 CFR 707.1--707.9, Apps. A and B.
Administrative Procedure Act
The extension made to this part is not subject to the notice and
comment provisions of the Administrative Procedure Act (the ``APA''), 5
U.S.C. 551 et seq. The extension relates to the Official Staff
Interpretations of part 707, and not to the sections 707.1 through
707.9 or Appendices A and B to part 707. No major changes are
contemplated, or made, by this extension. Therefore, the NCUA Board has
determined that, in this case, the APA notice and comment procedures
for this extension is impracticable, unnecessary, and contrary to the
public interest. 5 U.S.C. 553(b)(3)(B).
By the National Credit Union Administration Board on May 5,
1995.
Becky Baker,
Secretary of the Board.
[FR Doc. 95-11657 Filed 5-10-95; 8:45 am]
BILLING CODE 7535-01-P
