[Federal Register Volume 64, Number 102 (Thursday, May 27, 1999)]
[Rules and Regulations]
[Pages 28717-28718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13306]
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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: Final rule.
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SUMMARY: The NCUA Board is removing its rule governing safe deposit box
service. This revision will eliminate an unnecessary section from the
regulations.
DATES: Effective June 28, 1999.
FOR FURTHER INFORMATION CONTACT: Regina M. Metz, Staff Attorney, Office
of General Counsel, National Credit Union Administration, 1775 Duke
Street, Alexandria, Virginia 22314-3428, or telephone: (703) 518-6540.
SUPPLEMENTARY INFORMATION:
A. Background
On December 17, 1998, the NCUA Board requested comments on the
proposed rule to remove Sec. 701.30 of its regulations. 64 FR 57
(January 4, 1999). Section 701.30 of NCUA's regulations provides that a
federal credit union may lease safe deposit boxes to its members. The
NCUA Board is 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.
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.
Review of Sec. 701.30 of NCUA's regulations revealed that this section
is an unnecessary provision. Under the Federal Credit Union Act,
federal credit unions (FCUs) 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). FCUs may lease safe deposit boxes to their members as part of
the routine services they provide. The removal of Sec. 701.30 does not
affect this incidental authority.
[[Page 28718]]
B. Summary of Comments
The NCUA Board received three comments on the proposal: one from a
credit union trade group and two from state leagues. All three
commenters supported the removal of the regulation.
C. Regulatory Procedures
1. Regulatory Flexibility Act
The Regulatory Flexibility Act requires NCUA to prepare an analysis
to describe any significant economic impact any regulation may have on
a substantial number of small credit unions, meaning those under $1
million in assets. The NCUA Board has determined and certifies that the
final rule will not have a significant economic impact on a substantial
number of small credit unions. Accordingly, the NCUA Board has
determined that a Regulatory Flexibility analysis is not required.
2. Paperwork Reduction Act
This final 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 final 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
final rule does not constitute a ``significant regulatory action'' for
purposes of the Executive Order.
4. Small Business Regulatory Enforcement Fairness Act
The Small Business Regulatory Enforcement Fairness Act of 1996
(Pub. L. 104-121) provides generally for congressional review of agency
rules. A reporting requirement is triggered in instances where NCUA
issues a final rule as defined by Section 551 of the Administrative
Procedures Act, 5 U.S.C. 551. The Office of Management and Budget has
reviewed this rule and determined that, for purposes of the Small
Business Regulatory Enforcement Fairness Act of 1996, this is not a
major rule.
List of Subjects in 12 CFR Part 701
Credit unions, Safe deposit box service.
By the National Credit Union Administration Board on May 19,
1999.
Becky Baker,
Secretary of the Board.
Accordingly, the National Credit Union Administration amends 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, 1789, and 1798. 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. 1981 and 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 and reserve Sec. 701.30.
[FR Doc. 99-13306 Filed 5-26-99; 8:45 am]
BILLING CODE 7535-01-U