[Federal Register Volume 64, Number 205 (Monday, October 25, 1999)]
[Rules and Regulations]
[Pages 57363-57365]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27567]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Parts 701, 703, 704, 709, 712, 713, 723, 790, 791 and 792


Credit Unions; Miscellaneous Technical Amendments

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final Rule.

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SUMMARY: NCUA is correcting minor errors or omissions made in several 
rules. These amendments are technical rather than substantive.

DATES: This rule is effective October 25, 1999.

FOR FURTHER INFORMATION CONTACT: Chrisanthy J. Loizos, Staff Attorney, 
Division of Operations, Office of General Counsel, (703) 518-6540, 
National Credit Union Administration, 1775 Duke Street, Alexandria, VA 
22314-3428.

SUPPLEMENTARY INFORMATION: NCUA has issued final rules over several 
years that contain minor technical mistakes or omissions. Through 
various amendments, NCUA is correcting the errors found in the 
following rules.

12 CFR 701.2

    NCUA is removing this section because it currently indicates that a 
publication entitled ``Federal Credit Union Bylaws'' is incorporated by 
reference into NCUA's regulations. However, NCUA does not have such a 
publication approved by the Office of the Federal Register.

12 CFR 701.21(a) and 12 CFR 703.20(c)

    On March 5, 1998, Sec. 701.27 was removed and incorporated into 
part 712, entitled ``Credit Union Service Organizations (CUSOs).'' 63 
FR 10756. Therefore, NCUA is replacing references to Sec. 701.27 with 
part 712 in these sections.

12 CFR 703.20(a) and 12 CFR 704.7(d)

    Prior to September 29, 1998, member business loans were excluded 
from part 703 through Sec. 701.21(h). On that date, NCUA issued an 
interim final rule that removed the member business loan provisions 
from Sec. 701.21(h) and relocated them to part 723. 63 FR 51799. This 
change became final on May 27, 1999. 64 FR 28729. When part 723 was 
issued, NCUA unintentionally failed to amend Sec. 703.20(a) to reflect 
the change. Similarly, NCUA is also replacing the reference to 
Sec. 701.21(h) within Sec. 704.7(d) to part 723.

12 CFR 709.5(e)

    Section 709.5(e) refers to a list of claims found in paragraph (b) 
of this section. When paragraph (b)(9) was added to Sec. 709.5(b), NCUA 
failed to amend paragraph (e) to reflect the change. 62 FR 12949, Mar. 
19, 1997. Therefore, NCUA is now amending the last sentence of 
Sec. 709.5(e).

12 CFR Part 712

    Part 712 was adopted with the title to Sec. 712.9 mislabeled in its 
table of contents. 63 FR 10756, Mar. 5, 1998. Therefore, NCUA is 
correcting the table of contents to represent the title of Sec. 712.9 
accurately.

12 CFR 712.3(a)

    NCUA recently amended this section, but the amended language 
inadvertently repeated the first sentence of this paragraph. 64 FR 
33187, June 22, 1999.

[[Page 57364]]

NCUA is removing the duplicative sentence.

12 CFR 713.2

    NCUA recently adopted this section with a typographical error. 64 
FR 28720, May 27, 1999. NCUA is replacing the word ``potentials'' with 
the word ``potential.''

12 CFR 723.1(b)(3)

    NCUA is removing the word ``or'' from the phrase ``amount equal to 
or less than $50,000'' found in this paragraph. This language, relating 
to the definition of a member business loan, was adopted originally in 
an interim final rule and adopted in final form on May 27, 1999. 63 FR 
51800, Sept. 29, 1998 and 64 FR 28730. NCUA is amending this rule to 
mirror the definition of member business rule found in the Federal 
Credit Union Act at 12 U.S.C. 1757a(c)(1)(B)(iii).

12 CFR 790.2(b)(7) and (b)(16)

    NCUA changed the name of its Office of Information Systems to the 
Office of Technology and Information Systems. 59 FR 47072, Sept. 14, 
1994. At the time the rule was amended, the name change was not 
reflected in paragraph (b)(7). Therefore, NCUA is correcting this 
omission. During the same rulemaking, NCUA created the Office of 
Corporate Credit Unions at Sec. 790.2(b)(16). 59 FR 47072, Sept. 14, 
1994. NCUA is changing a punctuation mark in this paragraph to 
distinguish clearly the duties listed for the office.

12 CFR 791.18(e)

    Part 790 formerly consisted of rules regarding NCUA's structure and 
the disclosure of official records. NCUA restructured part 790 and 
moved the rules relating to the Freedom of Information Act to part 792. 
54 FR 18476, May 1, 1989. The pertinent rules referenced in this 
section were redesignated to part 792, but NCUA did not amend this 
section to reflect the change. Therefore, NCUA is correcting the 
outdated citations with references to part 792.

12 CFR 792.54(b)

    This paragraph refers to Sec. 792.23. However, Sec. 792.23 was 
redesignated to Sec. 792.55. 63 FR 14338, March 25, 1998. Therefore the 
reference in Sec. 792.54(b) will be changed to refer to Sec. 792.55.

12 CFR 792.55(a) and 12 CFR 792.56(a)

    Both of these sections refer to Sec. 792.22. However, Sec. 792.22 
was redesignated to Sec. 792.54. 63 FR 14338, March 25, 1998. 
Therefore, the references to Sec. 792.22 will be changed to refer to 
Sec. 792.54.

12 CFR 792.66(b)(2)

    This section, formerly Sec. 792.34(b)(2), was adopted with a 
typographical error by referring to System NCUA-4 rather than System 
NCUA-15. 54 FR 18476, May 1, 1989 and 60 FR 31912, Jun. 19, 1995. NCUA 
has consistently given notice that System NCUA-4 is the Verified 
Employee Mailing List and that System NCUA-15 contains investigative 
reports regarding criminal activity. Therefore, NCUA is amending the 
reference within Sec. 792.66(b)(2) from System NCUA-4 to System NCUA-
15. Additionally, the name of System NCUA-15 was changed from 
Investigative Reports Involving Possible Felonies and/or Violations of 
the Federal Credit Union Act to Investigative Reports Involving Any 
Crime, Suspected Crime or Suspicious Activity Against a Credit Union, 
NCUA. 61 FR 8690, March 5, 1996. NCUA is amending this section to adopt 
the new name of System NCUA-15.

Regulatory Procedures

Final Rule Under the Administrative Procedure Act

    The amendments to the final rule are technical rather than 
substantive. NCUA finds good cause that notice and public comment are 
unnecessary under sec. 553(b)(B) of the Administrative Procedure Act 
(APA), 5 U.S.C. 553(b)(B).

Effective Date

    NCUA also finds good cause to dispense with the 30-day delayed 
effective date requirement under sec. 553(d)(3) of the APA. The rule is 
technical rather than substantive. The rule will, therefore, be 
effective immediately upon publication of this notice.

Regulatory Flexibility Act

    An initial regulatory flexibility analysis under the Regulatory 
Flexibility Act is required only when an agency is required to publish 
a general notice of proposed rulemaking for any proposed rule. 5 U.S.C. 
603. As noted previously, NCUA has determined that it is not necessary 
to publish a notice of proposed rulemaking for this rule. Accordingly, 
an initial regulatory analysis is not required. Moreover, since this 
final rule imposes no new requirements and makes only technical 
amendments, NCUA has determined and certifies that this rule will not 
have any significant economic impact on a substantial number of small 
credit unions (primarily those under $1 million in assets).

Small Business Regulatory Enforcement Fairness Act

    Title II of the Small Business Regulatory Enforcement Fairness Act 
(SBREFA) 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 has 
determined that for purposes of the Small Business Regulatory 
Enforcement Fairness Act of 1996 it is not a major rule.

Paperwork Reduction Act

    NCUA has determined that the final rule does not increase paperwork 
requirements under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
et seq.) and regulations of the Office of Management and Budget.

Executive Order 12612

    Executive Order 12612 requires NCUA to consider the effect of its 
actions on state interests. A portion of this final rule will apply to 
all federally-insured credit unions. This final rule will not have a 
direct effect on the states, on the relationship between the national 
government and the states, or on the distribution of power and 
responsibilities among the various levels of government. NCUA has 
determined that this final rule does not constitute a significant 
regulatory action for purposes of the executive order.

List of Subjects

12 CFR Part 701

    Credit unions, Incorporation by reference, Credit.

12 CFR Part 703

    Credit unions, Investments, Credit.

12 CFR Part 704

    Credit unions, Corporate credit unions, Credit.

12 CFR Part 709

    Credit unions, Liquidation.

12 CFR Part 712

    Credit unions, Credit union service organizations.

12 CFR Part 713

    Credit unions, Fidelity bonds.

12 CFR Part 723

    Credit Unions, Credit, Reporting and recordkeeping requirements.

[[Page 57365]]

12 CFR Part 790

    Credit unions.

12 CFR Part 791

    Credit unions, Sunshine Act, Reporting and recordkeeping 
requirements.

12 CFR Part 792

    Administrative practice and procedure, Credit unions, Freedom of 
Information Act, Reporting and recordkeeping requirements.

    By the National Credit Union Administration Board on October 12, 
1999.
Becky Baker,
Secretary of the Board.

    For the reasons stated in the preamble, NCUA amends 12 CFR chapter 
VII as set forth below:

PART 701--ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS

    1. The authority citation for part 701 reads 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. 1981 and 3601-3610. Section 701.35 
is also authorized by 42 U.S.C. 4311-4312.


Sec. 701.2  [Removed and Reserved]

    2. Remove and reserve Sec. 701.2.


Sec. 701.21  [Amended]

    3. In Sec. 701.21(a), remove the word ``Sec. 701.27'' and add, in 
its place, the words ``Part 712''.

PART 703--INVESTMENT AND DEPOSIT ACTIVITIES

    4. The authority citation for part 703 continues to read as 
follows:

    Authority: 12 U.S.C. 1757(7), 1757(8), 1757(15).


Sec. 703.20  [Amended]

    5. In Sec. 703.20(a), remove the words ``and 701.23'' and add in 
their place, the words ``701.23, and part 723''; and in Sec. 703.20(c), 
remove the word ``Sec. 701.27'' and add, in its place, the words ``part 
712''.

PART 704--CORPORATE CREDIT UNIONS

    6. The authority citation for part 704 continues to read as 
follows:

    Authority: 12 U.S.C. 1762, 1766(a), 1781, and 1789.


Sec. 704.7  [Amended]

    7. In Sec. 704.7(d), remove the word ``Sec. 701.21(h)'' and add, in 
its place, the words ``part 723''.

PART 709--INVOLUNTARY LIQUIDATION OF FEDERAL CREDIT UNIONS AND 
ADJUDICATION OF CREDITOR CLAIMS INVOLVING FEDERALLY INSURED CREDIT 
UNIONS IN LIQUIDATION

    8. The authority citation for part 709 continues to read as 
follows:

    Authority: 12 U.S.C. 1766; Pub. L. 101-73, 103 Stat. 183, 530 
(1989) (12 U.S.C. 1787 et seq.).


Sec. 709.5  [Amended]

    9. In Sec. 709.5(e), remove ``(b)(8)'' and add, in its place 
``(b)(9)''.

PART 712--CREDIT UNION SERVICE ORGANIZATIONS (CUSOs)

    10. The authority citation for part 712 continues to read as 
follows:

    Authority: 12 U.S.C. 1756, 1757(5)(D) and (7)(I), 1766, 1782, 
1785, and 1786.


Sec. 712.3  [Amended]

    11-12. In Sec. 712.3(a), remove one sentence that reads ``An FCU 
can invest in or loan to a CUSO only if the CUSO is structured as a 
corporation, limited liability company, or limited partnership.''

PART 713--FIDELITY BOND AND INSURANCE COVERAGE FOR FEDERAL CREDIT 
UNIONS

    13. The authority citation for part 713 continues to read as 
follows:

    Authority: 12 U.S.C. 1761a, 1761b, 1766(a), 1766(h), 
1789(a)(11).


Sec. 713.2  [Amended]

    14. In Sec. 713.2, remove ``potentials'' and add, in its place 
``potential''.

PART 723--MEMBER BUSINESS LOANS

    15. The authority citation for part 723 continues to read as 
follows:

    Authority: 12 U.S.C. 1756, 1757, 1757A, 1766, 1785, 1789.


Sec. 723.1  [Amended]

    16. In Sec. 723.1(b)(3), remove ``to or less'' and add, in its 
place, ``to less''.

PART 790--DESCRIPTION OF NCUA; REQUESTS FOR AGENCY ACTION

    17. The authority citation for part 790 continues to read as 
follows:

    Authority: 12 U.S.C. 1766, 1789, 1795f.


Sec. 790.2  [Amended]

    18. In Sec. 790.2(b)(7), remove ``Information Systems'' and add, in 
its place, ``Technology and Information Systems''.
    19. In Sec. 790.2(b)(16), remove the comma after the word 
``manner'' and add a semicolon in its place.

PART 791--RULES OF NCUA BOARD PROCEDURE; PROMULGATION OF NCUA RULES 
AND REGULATIONS; PUBLIC OBSERVATION OF NCUA BOARD MEETINGS

    20. The authority citation for part 791 continues to read as 
follows:

    Authority: 12 U.S.C. 1766, 1789 and 5 U.S.C. 522b.


Sec. 791.18  [Amended]

    21. In Sec. 791.18(e), remove all the references to ``790'' and 
add, in their place, ``792''.

PART 792--REQUESTS FOR INFORMATION UNDER THE FREEDOM OF INFORMATION 
ACT AND PRIVACY ACT, AND BY SUBPOENA; SECURITY PROCEDURES FOR 
CLASSIFIED INFORMATION

    22. The authority citation for part 792 continues as follows:

    Authority: 5 U.S.C. 301, 552, 552a, 552b; 12 U.S.C 1752a(d), 
1766, 1789, 1795f; E.O. 12600, 52 FR 23781, 3 CFR, 1987 Comp., p. 
235; E.O. 12958, 60 FR 19825, 3 CFR, 1995 Comp., p. 333.


Sec. 792.54  [Amended]

    23. In Sec. 792.54(b), remove ``Sec. 792.23'' and add, in its 
place, ``Sec. 792.55''.


Sec. 792.55  [Amended]

    24. In Sec. 792.55(a), remove ``Sec. 792.22'' and add, in its 
place, ``Sec. 792.54''.


Sec. 792.56  [Amended]

    26. In Sec. 792.56(a), remove ``Sec. 792.22(a)'' and add, in its 
place, ``Sec. 792.54(a)''.


Sec. 792.66  [Amended]

    27. In Sec. 792.66(b)(2), remove ``NCUA-4'' and add, in its place, 
``NCUA-15''; and remove the words ``Investigative Reports Involving 
Possible Felonies and/or Violations of the Federal Credit Union Act'' 
and add, in their place ``Investigative Reports Involving Any Crime, 
Suspected Crime or Suspicious Activity Against a Credit Union, NCUA''.

[FR Doc. 99-27567 Filed 10-22-99; 8:45 am]
BILLING CODE 7535-01-P