[Federal Register Volume 64, Number 1 (Monday, January 4, 1999)]
[Proposed Rules]
[Pages 57-58]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34030]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 701


Organization and Operation of Federal Credit Unions

AGENCY: National Credit Union Administration (NCUA).

ACTION: Proposed rule.

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SUMMARY: The NCUA Board proposes removing its rule governing safe 
deposit box service. This revision will eliminate an unnecessary 
section from the regulations.

DATES: Comments must be received on or before March 5, 1999.

ADDRESSES: Direct comments to Becky Baker, Secretary of the Board. Mail 
or hand-deliver comments to: National Credit Union Administration, 1775 
Duke Street, Alexandria, Virginia 22314-3428. You may fax comments to 
(703) 518-6319. Please send comments by one method only.

FOR FURTHER INFORMATION CONTACT: Regina M. Metz, Staff Attorney, 
Division of Operations, Office of General Counsel, at the above address 
or telephone: (703) 518-6540.

SUPPLEMENTARY INFORMATION:

A. Background

    NCUA has a policy of continually reviewing its regulations to 
``update, clarify and simplify existing regulations and eliminate 
redundant and unnecessary provisions.'' Interpretive Rulings and Policy 
Statement (IRPS) 87-2, Developing and Reviewing Government Regulations. 
Our review of Sec. 701.30 of NCUA's regulations has revealed that this 
section is an unnecessary provision.

B. Proposed Rule

    The proposed rule removes the section of the regulations regarding 
safe deposit box service. 12 CFR 701.30. The NCUA Board proposes 
removing this section to streamline the publication of the regulations. 
The deletion of Sec. 701.30 does not affect the authority of federal 
credit unions to offer safe deposit box service.

C. Section 701.30 Analysis

    Section 701.30 of NCUA's regulations provides that a federal credit 
union may lease safe deposit boxes to its members. The Board recommends 
removing Sec. 701.30 because it is no longer necessary. Under the 
Federal Credit Union Act (the Act), federal credit unions have the 
power to exercise incidental powers that are necessary or requisite to 
enable them to carry on effectively the business for which they are 
incorporated. 12 U.S.C. 1757(17). Federal credit unions may lease safe 
deposit boxes to their members as part of routine services that federal 
credit unions can provide. The removal of Sec. 701.30 would not affect 
this incidental authority.

D. Regulatory Procedures

1. Regulatory Flexibility Act

    The Regulatory Flexibility Act requires NCUA to prepare an analysis 
to describe any significant economic impact any proposed regulation may 
have on a substantial number of small entities (primarily those under 
$1 million in assets). NCUA has determined and certifies that this 
proposed rule will not have a significant economic impact on a 
substantial number of small credit unions. Accordingly, NCUA has 
determined that a Regulatory Flexibility analysis is not required.

2. Paperwork Reduction Act

    This proposed rule to remove Sec. 701.30 does not involve a 
collection of information under the Paperwork Reduction Act. 
Accordingly, NCUA has determined that a Paperwork Reduction analysis is 
not required.

3. Executive Order 12612

    Executive Order 12612 requires NCUA to consider the effect of its 
actions on state interests. The proposed rule is to remove a current 
regulation that applies to federal credit unions, not federally insured 
state chartered credit unions. Therefore, NCUA has determined that the 
proposed rule does not constitute a ``significant regulatory action'' 
for purposes of the Executive Order.

[[Page 58]]

List of Subjects in 12 CFR Part 701

    Credit unions, Safe deposit box service.

    By the National Credit Union Administration Board on December 
17, 1998.
Becky Baker,
Secretary of the Board.

    For the reasons set forth in the preamble, the National Credit 
Union Administration proposes to amend 12 CFR part 701 as follows:

PART 701--ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS

    1. The authority citation for part 701 continues to read 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. 1861 and 42 U.S.C. 3601-3610. 
Section 701.35 is also authorized by 42 U.S.C. 4311-4312.


Sec. 701.30  [Removed]

    2. Part 701 is amended to remove Sec. 701.30.

[FR Doc. 98-34030 Filed 12-31-98; 8:45 am]
BILLING CODE 7535-01-U