[Federal Register Volume 62, Number 49 (Thursday, March 13, 1997)]
[Proposed Rules]
[Pages 11773-11778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6381]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Ch. VII


Interpretive Rulings and Policy Statements (IRPS)

AGENCY: National Credit Union Administration (NCUA).

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: The NCUA solicits comment on a proposal to revise its existing 
Interpretive Rulings and Policy Statements (IRPS). This proposal, which 
is one part of NCUA's Regulatory Review Program, is intended to ease 
the compliance burden on federally chartered and federally insured 
credit unions and provide more valuable guidance by updating and 
simplifying ineffective or outmoded IRPS. Proposed options include the 
withdrawal of all outdated and nonessential IRPS, the redesignation of 
IRPS into the NCUA rules, the transference of guidance now provided in 
the IRPS into NCUA instructional manuals or directives, and the 
preservation of beneficial IRPS.

DATES: Comments must be received on or before May 12, 1997.

ADDRESSES: Comments should be directed to Becky Baker, Secretary of the 
Board. Mail or hand-deliver comments to: National Credit Union 
Administration, 1775 Duke Street, Alexandria, Virginia 22314-3428. Fax 
comments to (703) 518-6319. E-mail comments to [email protected]. 
Please sends comments by one method only.

FOR FURTHER INFORMATION CONTACT: Martin ``Sparky'' Conrey, Staff 
Attorney, or Nicole Sippial Williams, Staff Attorney, Division of 
Operations, Office of the General Counsel, at the above address or by 
telephone at (703) 518-6540.

SUPPLEMENTARY INFORMATION:

I. Background

    Section 2222 of the Economic Growth and Regulatory Paperwork 
Reduction Act of 1996 requires each federal financial institution 
regulatory agency represented by the Federal Financial Institutions 
Examination Council (FFIEC) to conduct a review of regulations at least 
once every 10 years to identify outdated or unnecessary

[[Page 11774]]

regulatory requirements. The NCUA has made regulatory review a high 
priority and has already initiated its own Regulatory Review Program. 
As one part of its ongoing Regulatory Review Program, NCUA performed a 
preliminary review of the IRPS to determine their current 
effectiveness. The goal of this part of the Regulatory Review Program 
is to ease the compliance burden of federally chartered and insured 
credit unions by revising and eliminating IRPS that do not effectively 
advance NCUA's regulatory goals and statutory responsibilities. Another 
objective is to improve clarity and thus better communicate the 
interpretations and policies of NCUA advanced by the IRPS.

II. Proposed Regulatory Action

    The IRPS are a collection of interpretive rulings and general 
statements of policy that explain, clarify, and interpret the statutes 
and rules under which NCUA operates and that set forth NCUA's position 
on issues affecting federal credit unions. NCUA publishes the IRPS, 
which date back to 1979, in the Federal Register and provides a copy of 
them to all federally insured credit unions. Although the rules, 
regulations, and interpretative positions of NCUA evolved over the 
years, many of the IRPS remained unchanged since their initial 
publication. As a result, a number of the IRPS may be either outdated 
or nonessential and may need to be either removed, revised, or 
reorganized.
    NCUA solicits comments on the potential actions that may be taken 
with regard to each of the active IRPS. Table 1, below, lays out NCUA's 
proposal. Table 1 sets forth four columns: (1) IRPS Number (all IRPS 
that have not been formally withdrawn in the Federal Register are 
listed); (2) IRPS Subject Heading; (3) Federal Register Citation; and 
(4) Proposed NCUA Board Action. NCUA uses the following categories to 
describe the possible action it is contemplating for each currently 
active IRPS: (1) ``Withdraw''--NCUA suggests formally withdrawing 
outdated or unnecessary IRPS [those IRPS that have been superseded by 
other IRPS or NCUA rules are listed as ``Withdrawn; Superseded'' and 
the controlling IRPS or rule is cited]; (2) ``Redesignate''-- NCUA 
suggests formally redesignating regulatory IRPS into the appropriate 
CFR section of the NCUA rules; (3) ``Transfer''--NCUA suggests 
withdrawing the IRPS and informally transferring information from 
interpretive IRPS into NCUA instructional manuals or agency directives; 
and (4) ``No Change''--NCUA suggests maintaining these IRPS 
substantively unchanged, making only format, stylistic, and numeric 
changes.
    Since all federally chartered and federally insured credit unions 
should have complete sets of the IRPS, and in the interests of printing 
economy, the IRPS have not been set out in full text. However, copies 
of the IRPS can be obtained off of NCUA's Website at www.ncua.gov or 
from the NCUA contacts listed in this notice.

                             Table 1.--NCUA's Proposed Actions For Revising the IRPS                            
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                                                                Federal Register                                
         IRPS number              IRPS subject heading              citation               Proposed action      
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IRPS No. 79-1...............  Statement of Policy           44 FR 21762, Apr. 12,    Withdraw                   
                               Regarding Relationship of     1979                                               
                               Credit Union Service                                                             
                               Corporations and Existing                                                        
                               Accounting Service Centers.                                                      
IRPS No. 79-2...............  Share Accounts..............  44 FR 39382, July 6,     Withdraw                   
                                                             1979                                               
IRPS No. 79-3...............  Amortization of Long Term     44 FR 39182, July 5,     Withdraw                   
                               Real Estate Loans.            1979                                               
IRPS No. 79-4...............  Investment Activities.......  44 FR 51195, Aug. 31,    Withdraw                   
                                                             1979                                               
IRPS No. 79-5...............  Insurance Activities........  44 FR 43711, July 26,    Withdraw                   
                                                             1979                                               
IRPS No. 79-6...............  Donations/Contributions.....  44 FR 56691, Oct. 2,     Redesignate                
                                                             1979                                               
IRPS No. 79-7...............  Liquidity Reserve...........  44 FR 61172, Oct. 24,    Withdraw                   
                                                             1979                                               
IRPS No. 79-8...............  Public Observance and         44 FR 70709, Dec. 10,    Superseded by Regs. Secs.  
                               Availability of Information   1979                     791.9-18                  
                               Regarding Board Meetings;                                                        
                               Interim Sunshine Act Policy                                                      
                               Statement.                                                                       
IRPS No. 79-9...............  Rate of Interest............  44 FR 74799, Dec. 18,    Withdraw                   
                                                             1979                                               
IRPS No. 79-10..............  Notice of Proposed Consumer   45 FR 7738, Feb. 4,      Superseded by IRPS 80-7    
                               Program.                      1980                                               

[[Page 11775]]

                                                                                                                
IRPS No. 80-1...............  Joint Notice of Statement of  45 FR 6648, Jan. 29,     Redesignate                
                               Policy on Disclosure of       1980                                               
                               Statutory Enforcement                                                            
                               Actions on Behalf of the                                                         
                               Agencies Represented on the                                                      
                               FFIEC.                                                                           
IRPS No. 80-2...............  National Environmental        45 FR 12211, Feb. 25,    No Change                  
                               Policy Act.                   1980                                               
IRPS No. 80-3...............  Corporate Central Federal     45 FR 14202, Mar. 5,     Withdrawn 49 FR 50370, Dec.
                               Credit Union.                 1980                     28, 1984                  
IRPS No. 80-4...............  Central Liquidity Facility;   45 FR 24288, Apr. 9,     Redesignate                
                               Policy Regarding Protracted   1980                                               
                               Adjustment Credit.                                                               
IRPS No. 80-5...............  Shared and Proprietary        45 FR 32290, May 16,     Withdrawn 47 FR 33950, Aug.
                               Remote Service Units.         1980                     5, 1982                   
IRPS No. 80-6...............  Shared and Proprietary        45 FR 32292, May 16,     Withdrawn 47 FR 33950, Aug.
                               Remote Service Units          1980                     5, 1982                   
                               Programs and Correspondent                                                       
                               Credit Unioning Programs.                                                        
IRPS No. 80-7...............  Final Notice of Consumer      45 FR 50260, July 28,    Withdraw                   
                               Program.                      1980                                               
IRPS No. 80-8...............  Return of Capital Upon        45 FR 47119, July 14,    Redesignate                
                               Withdrawal From Membership    1980                                               
                               in CLF.                                                                          
IRPS No. 80-9...............  Flood Insurance--Use of Map   45 FR 58101, Sept. 2,    Withdrawn 46 FR 71353, Oct.
                               Information Facility.         1980                     28, 1980                  
IRPS No. 80-10..............  When Federal Credit Unions    45 FR 71353, Oct. 28,    Withdraw                   
                               Can Charge More Than 15%      1980                                               
                               Per Annum on Government                                                          
                               Insured or Guaranteed Loans.                                                     
IRPS No. 80-11..............  State Chartered Federally     45 FR 78625, Nov. 26,    Superseded by IRPS 81-3    
                               Insured Credit Unions as      1980                                               
                               Most Favored Lenders.                                                            
IRPS No. 80-12..............  Verification of Member        46 FR 9919, Jan. 30,     Withdraw                   
                               Accounts.                     1981                                               
IRPS No. 81-1...............  Definitions--Exclusions From  46 FR 13204, Feb. 20,    Withdraw                   
                               Gross Income In Computing     1981                                               
                               Reserve Requirements.                                                            
IRPS No. 81-2...............  Federal Funds...............  46 FR 14887, Mar. 3,     Withdraw                   
                                                             1981                                               
IRPS No. 81-3...............  State Chartered Federally     46 FR 24153, Apr. 30,    No Change                  
                               Insured Credit Unions as      1981                                               
                               ``Most Favored Lenders''.                                                        
IRPS No. 81-4...............  Developing Government         46 FR 29248, June 1,     Superseded by IRPS 87-2    
                               Regulations.                  1981                                               
IRPS No. 81-5...............  Proposed Policy Statement     46 FR 29575, June 2,     Withdraw                   
                               Release of Consumer           1981                                               
                               Examination Reports.                                                             
IRPS No. 81-6...............  Examination of Independent    46 FR 44421, Sept. 4,    Withdraw                   
                               Credit Union Service          1981                                               
                               Centers.                                                                         

[[Page 11776]]

                                                                                                                
IRPS No. 81-7...............  Sale-and-Leaseback            46 FR 46303, Sept. 18,   Transfer                   
                               Arrangements.                 1981                                               
IRPS No. 81-8...............  Full and Fair Disclosure      47 FR 23685, June 1,     Withdraw                   
                               Requirements.                 1982                                               
IRPS No. 81-9...............  Share, Share Draft and Share  46 FR 57668, Nov. 25,    Withdraw                   
                               Certificate Accounts.         1981                                               
IRPS No. 82-1...............  Membership in Federal Credit  47 FR 16775, Apr. 20,    Superseded by IRPS 82-3    
                               Unions.                       1982                                               
IRPS No. 82-2...............  Payout Priorities for         47 FR 18122, Apr. 28,    Withdrawn 51 FR 43383, Dec.
                               Involuntary Liquidation of    1982                     2, 1986                   
                               Federally-Insured Credit                                                         
                               Unions.                                                                          
IRPS No. 82-3...............  Membership in Federal Credit  47 FR 26808, June 22,    Superseded by IRPS 84-1    
                               Unions.                       1982                                               
IRPS No. 82-4...............  Examination for Compliance    47 FR 53325, Nov. 26,    No Change                  
                               With State Unclaimed          1982                                               
                               Property Laws.                                                                   
IRPS No. 82-5...............  Statutory Lien..............  47 FR 57483, Dec. 27,    Redesignate                
                                                             1982                                               
IRPS No. 82-6...............  Corporate Federal Credit      47 FR 43943, Oct. 5,     Withdraw                   
                               Union Chartering Guidelines.  1982                                               
IRPS No. 83-1...............  Truth in Lending;             48 FR 7159, Feb. 18,     Redesignate                
                               Enforcement Guidelines and    1983                                               
                               Restitution Review                                                               
                               Procedures.                                                                      
IRPS No. 83-2...............  Membership in Federal Credit  48 FR 22899, May 23,     Superseded by IRPS 84-1    
                               Unions.                       1983                                               
IRPS No. 83-3...............  Federal Credit Union Leasing  48 FR 52568, Nov. 21,    Redesignate                
                               of Personal Property to       1983                                               
                               Members.                                                                         
IRPS No. 84-1...............  Membership in Federal Credit  49 FR 46536, Nov. 27,    Superseded by IRPS 89-1    
                               Unions.                       1984                                               
IRPS No. 85-1...............  Trustees and Custodians of    50 FR 48176, Nov. 22,    Redesignate                
                               Pension Plans.                1985                                               
IRPS No. 85-2...............  Repurchase Agreements of      50 FR 48372, Nov. 25,    No Change                  
                               Depository Institutions       1985                                               
                               with Securities Dealers and                                                      
                               Others.                                                                          
IRPS No. 85-3...............  Assumption of Real Estate     50 FR 51840, Dec. 20,    Redesignate                
                               Loans by Nonmembers.          1985                                               
IRPS No. 86-1...............  General Policy on Sharing     51 FR 16292, May 2,      No Change                  
                               Confidential Supervisory      1986                                               
                               Information With State                                                           
                               Banking and Thrift                                                               
                               Regulatory Agencies.                                                             
IRPS No. 86-2...............  Joint Policy Statement on     51 FR 42083, Nov. 21,    No Change                  
                               Basic Financial Services      1986                                               
                               (FFIEC).                                                                         

[[Page 11777]]

                                                                                                                
IRPS No. 87-1...............  Guidelines For Compliance     52 FR 38821, Oct. 19,    No Change                  
                               With Federal Bank Bribery     1987                                               
                               Law.                                                                             
IRPS No. 87-2...............  Developing and Reviewing      52 FR 35231, Sept. 18,   No Change                  
                               Government Regulations.       1987                                               
IRPS No. 88-1...............  Policy on Selection of        53 FR 18268, May 23,     Superseded by IRPS 92-1    
                               Securities Dealers and        1988                                               
                               Unsuitable Investment                                                            
                               Practices.                                                                       
IRPS No. 89-1...............  Chartering and Field of       54 FR 31165, July 27,    Superseded by IRPS 94-1    
                               Membership Policy.            1989                                               
IRPS No. 92-1...............  Supervisory Policy Statement  57 FR 22157, May 27,     No Change                  
                               on Securities Activities      1992                                               
                               (FFIEC).                                                                         
IRPS No. 94-1...............  Chartering and Field of       59 FR 29066, June 3,     No Change                  
                               Membership Policy.            1994                                               
IRPS No. 95-1...............  Guidelines for the            60 FR 14795, Mar. 20,    No Change                  
                               Supervisory Review            1995                                               
                               Committee.                                                                       
IRPS No. 96-1...............  Federal Credit Union Field    61 FR 11721, Mar. 22,    No Change                  
                               of Membership and             1996                                               
                               Chartering Policy.                                                               
IRPS No. 96-2...............  Federal Credit Union Field    61 FR 59305, Nov. 22,    Withdrawn                  
                               of Membership and             1996                                               
                               Chartering Policy.                                                               
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III. Request for Comments

    NCUA invites the public to review the IRPS and solicits comment on 
any issue, concern, or suggestion that the public may have concerning 
NCUA's proposal to revise and update the IRPS. The questions presented 
below (numbered consecutively 1 through 8 for ease of reference) are 
intended to elicit comments on all significant issues. However, the 
list is not intended to be exclusive. NCUA seeks comments on any and 
all relevant issues. In commenting, please remember that a comment that 
includes the reasoning or basis for a proposition will likely be more 
persuasive than a comment without supporting information. Any IRPS 
subject to redesignation as a regulation will be separately noticed for 
public comment at a later date.

Questions

    1. Is there a continuing need for each of the IRPS designated as no 
change?
    (a). What financial soundness, economic, supervisory, or other 
benefits derive from each IRPS?
    (b). What financial, compliance, or other burdens has each IRPS 
imposed on credit unions?
    2. Do you agree with the NCUA's proposed action pertaining to each 
individual IRPS to either withdraw, redesignate, transfer, or maintain 
that specific IRPS?
    (a). Which NCUA Regulation do you believe each IRPS listed for 
redesignation should be incorporated?
    (b). Do you have any other suggestions as to what actions NCUA can 
take to improve and update the IRPS?
    3. Do you foresee any potential problems with NCUA's proposal to 
incorporate some of the IRPS into either the NCUA Rules and Regulations 
or into NCUA Directives such as the NCUA Accounting Manual for FCUs, 
the FCU Supervisory Committee Guidelines, or a NCUA Letter to Credit 
Unions?
    4. Are there any issues of (1) IRPS timing, any desired phase-in, 
phase-out, or grandfathering of any IRPS withdrawal, redesignation, or 
transfer, or of (2) IRPS potential placement--which specific regulation 
or directive should contain the information currently included in an 
IRPS?
    5. Are there any IRPS that you believe need to be substantially 
reworked or clarified? If so, please provide details.
    (a). How would your changes affect the benefits provided by each 
IRPS?
    (b). Would your changes affect the burdens imposed on credit 
unions?
    (c). Along with your comments concerning all the IRPS, what 
specific changes or revisions, if any, do you feel need to be made to 
IRPS 83-3, FCU Leasing of Personal Property to Members?
    6. Do any of the IRPS overlap or conflict with other federal, 
state, or local laws or regulations? Are any issues of federalism or 
preemption raised? If a conflict exists, can NCUA take a less intrusive 
approach while maintaining the goals of a particular IRPS?
    7. What effects, if any, have changes in relevant technology, 
economic conditions, or business protocols had on any of the IRPS?
    8. Do you think that the IRPS NCUA proposes to maintain should be 
republished in the CFR as an Appendix

[[Page 11778]]

to their relevant CFR Part? If not, do you think that the IRPS NCUA 
proposes to maintain should be renumbered?

    By the National Credit Union Board on March 7, 1997.
Becky Baker,
Secretary to the Board.
[FR Doc. 97-6381 Filed 3-12-97; 8:45 am]
BILLING CODE 7535-01-P