[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
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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.

-----------------------------------------------------------------------

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