[Federal Register Volume 65, Number 246 (Thursday, December 21, 2000)]
[Rules and Regulations]
[Pages 80298-80300]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32476]


=======================================================================
-----------------------------------------------------------------------

NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 705


Community Development Revolving Loan Program for Credit Unions

AGENCY: National Credit Union Administration (NCUA).

ACTION: Interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The NCUA is revising its regulations pertaining to the 
Community Development Revolving Loan Program for Credit Unions (CDRLP) 
to make more flexible the manner in which NCUA may deliver

[[Page 80299]]

technical assistance to participating credit unions. This revision 
reflects the broad authority granted to NCUA by the Federal Credit 
Union Act (Act) in this context.

DATES: Effective December 21, 2000. NCUA welcomes comments on this 
interim final rule. Comments must be received on or before February 20, 
2001.

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, VA 22314-3428. You may 
also fax comments to (703) 518-6319 or e-mail comments to 
[email protected]. Please send comments by one method only.

FOR FURTHER INFORMATION CONTACT: Frank S. Kressman, Staff Attorney, at 
the above address, or telephone: (703) 518-6540.

SUPPLEMENTARY INFORMATION: The CDRLP is intended to support the 
community development activities of participating credit unions. It 
does this by making low interest loans and providing technical 
assistance to those credit unions. This increases economic and 
employment opportunities for the credit unions' low-income members.
    The Act authorizes the NCUA Board to use interest earned by the 
CDRLP to provide technical assistance to participating credit unions. 
12 U.S.C. 1772c-1. The regulation implementing this authority provides: 
``Based on available earnings, NCUA may contract with outside providers 
to render technical assistance to participating credit unions.'' 12 CFR 
705.10. When this rule was initially adopted, the rule's preamble 
noted, ``NCUA plans to contract with a provider that can render 
necessary technical assistance to credit unions selected for 
participation in the [Community Development Revolving Loan] Program.'' 
52 FR 34891, September 16, 1987. The NCUA Board later amended the 
regulation to allow the agency to contract with more than one technical 
assistance provider. 58 FR 21648, April 23, 1993. The technical 
assistance provision in the regulation is more restrictive than the 
statutory authority granted to the NCUA Board by the Act.
    Congress has recently appropriated an additional $1 million to the 
CDRLP, $350,000 of which is specifically earmarked for technical 
assistance. NCUA has determined that, in conjunction with this 
additional funding, it is an appropriate time to amend Sec. 705.10. The 
NCUA Board has determined that Sec. 705.10 is unnecessarily restrictive 
and may interfere with the CDRLP's ability to provide technical 
assistance to participating credit unions efficiently. Specifically, 
the CDRLP should have the flexibility to provide technical assistance 
to participating credit unions directly or through outside providers 
selected by the credit unions or NCUA. Applications for CDRLP technical 
assistance are available from NCUA and will be processed in accordance 
with established NCUA procedures and guidelines.

Interim Final Rule

    The NCUA Board is issuing this rule as an interim final rule 
because there is a strong public interest in having in place rules that 
make CDRLP technical assistance as readily accessible and easily 
deliverable to participating credit unions as possible. This interim 
rule provides additional benefit to participating credit unions with no 
additional burden. Accordingly, for good cause, the Board finds that, 
pursuant to 5 U.S.C. 553(b)(3)(B), notice and public procedures are 
impracticable, unnecessary, and contrary to the public interest; and, 
pursuant to 5 U.S.C. 553(d)(3), the rule shall be effective immediately 
and without 30 days advance notice of publication. Although the rule is 
being issued as an interim final rule and is effective immediately, the 
NCUA Board encourages interested parties to submit comments.

Regulatory Procedures

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 entities. For purposes of this analysis, 
credit unions under $1 million in assets will be considered small 
entities.
    The NCUA Board has determined and certifies that this rule will not 
have a significant economic impact on a substantial number of small 
entities. The reason for this determination is that the revision 
provides the CDRLP with more options and flexibility in providing 
technical assistance to participating credit unions without any 
additional regulatory burden or expense to credit unions. Accordingly, 
the NCUA has determined that a Regulatory Flexibility Analysis is not 
required.

Paperwork Reduction Act

    NCUA has determined that the revision does not increase paperwork 
requirements under the Paperwork Reduction Act of 1995 and regulations 
of the Office of Management and Budget.

Executive Order 13132

    Executive Order 13132 encourages independent regulatory agencies to 
consider the impact of their regulatory actions on state and local 
interests. In adherence to fundamental federalism principles, NCUA, an 
independent regulatory agency as defined in 44 U.S.C. 3502(5), 
voluntarily complies with the executive order. This rule will apply to 
some state-chartered credit unions, but it will not have substantial 
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 rule does not constitute a policy that has 
federalism implications for purposes of the executive order.

Agency Regulatory Goal

    NCUA's goal is to promulgate clear and understandable regulations 
that impose minimal regulatory burden. We request your comments on 
whether this rule is understandable and minimally intrusive.

List of Subjects in 12 CFR Part 705

    Community development, Credit unions, Loan programs-housing and 
community development, Reporting and recordkeeping requirements, 
Technical assistance.

    By the National Credit Union Administration Board, on December 
14, 2000.
Becky Baker,
Secretary of the Board.

    For the reasons stated above, NCUA amends 12 CFR part 705 as 
follows:

PART 705--COMMUNITY DEVELOPMENT REVOLVING LOAN PROGRAM FOR CREDIT 
UNIONS

    1. The authority citation for part 705 continues to read as 
follows:


    Authority: 12 U.S.C. 1772c-1; 42 U.S.C. 9822 and 9822 note.

    2. Remove the first sentence of Sec. 705.10 and add 3 sentences in 
its place to read as follows:


Sec. 705.10  Technical assistance.

    NCUA may provide technical assistance to participating credit 
unions directly or through outside providers selected by the credit 
unions or NCUA. NCUA will base technical assistance on funds 
availability, the needs of the participating credit union, and a 
demonstrated capability of the

[[Page 80300]]

participating credit union to provide financial and related services to 
its members. NCUA will consider applications for technical assistance 
and determine whether to grant them in accordance with established 
procedures and standards that are publicly available. * * *

[FR Doc. 00-32476 Filed 12-20-00; 8:45 am]
BILLING CODE 7535-01-P