[Federal Register Volume 60, Number 85 (Wednesday, May 3, 1995)]
[Rules and Regulations]
[Pages 21699-21700]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10851]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 60, No. 85 / Wednesday, May 3, 1995 / Rules
and Regulations
[[Page 21699]]
NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 707
Truth in Savings; Correcting Amendments
AGENCY: National Credit Union Administration (NCUA).
ACTION: Final rule; correcting amendments.
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SUMMARY: The NCUA is amending Appendix C, its commentary to the Truth
in Savings regulation. This appendix contains the NCUA Official Staff
Interpretation for the Truth in Savings Act and regulation for credit
unions. This document contains clarifications, technical amendments and
revisions to Appendix C.
DATES: These correcting amendments are effective as of January 1, 1995.
Compliance with Appendix C is optional until May 22, 1995, except for
those credit unions that have assets of $2 million or less that are not
automated, which have a later compliance date of January 1, 1996.
FOR FURTHER INFORMATION CONTACT: Martin S. Conrey, Staff Attorney,
Office of General Counsel, NCUA, 1775 Duke Street, Alexandria, VA
22315-3428, or telephone (703) 518-6540.
SUPPLEMENTARY INFORMATION:
Background
NCUA's final Official Staff Interpretation, also known as the
Commentary, was published November 21, 1994 (59 FR 59887), and is the
subject of these revisions. The Commentary acts as the official staff
interpretation of part 707 (12 CFR part 707), NCUA's rule implementing
the Truth in Savings Act. (12 U.S.C. 4301 et seq.). The Commentary is
designed to provide guidance to credit unions in applying the
regulation to specific transactions and is a substitute for, and a
supplement to, individual staff interpretations.
Need for Correction
As published, Appendix C to the final rule contained several
drafting and technical errors that are confusing or erroneous, and need
to be clarified and corrected.
List of Subjects in 12 CFR Part 707
Advertising, Credit unions, Consumer protection, Interest, Interest
rates, Truth in savings.
For the reasons set forth above the following correcting amendments
are made to 12 CFR part 707 as indicated below:
PART 707--TRUTH IN SAVINGS
1. The authority citation for part 707 continues to read as
follows:
Authority: 12 U.S.C. 4311.
Appendix C to Part 707--[Corrected]
2. Appendix C to part 707 is amended as follows:
a. Under Sec. 707.2(a)5, entitled ``Use of synonyms'', the third
sentence is amended by adding to the end of the sentence the phrase
``and, for account disclosures, is used in conjunction with the correct
legal term''.
b. Under Sec. 707.2(j)1, a new paragraph (vi) is added to read as
set forth below.
c. Section 707.2(v) entitled ``Tiered-Rate Account'' is
redesignated as Sec. 707.2(y).
d. Under newly designated Sec. 707.2(y) entitled ``Tiered-Rate
Account'', the final parenthetical in paragraph 1. is revised as set
forth below.
e. Under Sec. 707.3(a)1, in the first sentence, the first word,
``Alal,'' is revised to read ``All''.
f. Under Sec. 707.3(e)1, in the fourth sentence, the phrase ``the
in'' is revised to read ``in the''.
g. Under Sec. 707.4(b)(4) entitled ``Fees'', the second paragraph 2
and paragraphs 3 and 4 are redesignated as paragraph 3 and paragraphs 4
and 5, respectively.
h. Under Sec. 707.4(b)(4)2(ii), the phrase ``for photocopying
forms'' is revised to read ``for photocopying''.
i. Under Sec. 707.4(b)(5) entitled ``Transaction Limitations'', the
first sentence under paragraph 1. introductory text entitled ``General
rule.'' is amended by adding the word ``of'' between the words
``Examples'' and ``limitations''. -
j. Under Sec. 707.5(b)5. entitled ``Renewal of a term share
account'', paragraph (i) is amended by adding at the end of the first
sentence the word ``apply''.
k. Under Sec. 707.5(b)5. entitled ``Renewal of a term share
account'', paragraph (ii) is amended by adding at the end of the first
sentence the word ``apply''.
l. Under Sec. 707.6(b)(2), paragraph 1. entitled ``Definition of
earned'', the final parenthetical is revised as set forth below.
m. Under Sec. 707.7(c)3, the heading ``Withdrawal or principal.''
is revised to read ``Withdrawal of principal.''.
n. Under Sec. 707.8(b)3 entitled ``Representative examples.''
paragraph (ii) is revised as set forth below.
The additions and revisions read as follows:
Appendix C to Part 707--Official Staff Interpretations
* * * * *
Sec. 707.2 Definitions.
* * * * *
(j) Dividend Declaration Date.
1. * * *
vi. ``As of the last dividend declaration date'' (the last dividend
period upon which a dividend has been paid).
* * * * *
(y) Tiered-Rate Account
1. * * * (See Appendix A, part I, D.)
* * * * *
Sec. 707.6 Periodic Statement Disclosures.
* * * * *
(b) Statement Disclosures
* * * * *
(b)(2) Amount of Dividends or Interest
1. Definition of earned. * * * (See 707.6(b)(1)1. and 707.7(c)2. of
this Appendix.)
* * * * *
Sec. 707.8 Advertising.
* * * * *
(b) Permissible Rates
* * * * *
3. Representative examples. * * *
ii. Indicate that various rates are available, such as by stating
short-term and longer-term maturities along with the applicable annual
percentage yields: [[Page 21700]] ``We offer share certificates with
annual percentage yields that depend on the maturity you choose. For
example, our one-month share certificate earns a 2.75% APY. Or, earn a
5.25% APY for a three-year share certificate.''
* * * * *
By the National Credit Union Administration Board on April 27,
1995.
Becky Baker,-----
Secretary of the Board.
[FR Doc. 95-10851 Filed 5-2-95; 8:45 am]
BILLING CODE 7530-01-U
