[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