[Federal Register Volume 69, Number 77 (Wednesday, April 21, 2004)]
[Proposed Rules]
[Pages 21443-21444]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9001]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 705


Community Development Revolving Loan Program for Credit Unions

AGENCY: National Credit Union Administration (NCUA).

ACTION: Proposed rule with request for comments.

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SUMMARY: NCUA proposes to revise its regulations pertaining to the 
Community Development Revolving Loan Program For Credit Unions (CDRLP) 
to permit student credit unions to participate in the program.

DATES: Comments must be received on or before May 21, 2004.

ADDRESSES: You may submit comments by any of the following methods 
(Please send comments by one method only):
     Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.
     NCUA Web site: http://www.ncua.gov/news/proposed_regs/proposed_regs.html. Follow the instructions for 
submitting comments.
     E-mail: Address to [email protected]. Include 
``[Your name] Comments on Proposed Rule 705, Community Development 
Revolving Loan Program For Credit Unions'' in the e-mail subject line.
     Fax: (703) 518-6319. Use the subject line 
described above for e-mail.
     Mail: Address to Becky Baker, Secretary of the 
Board, National Credit Union Administration, 1775 Duke Street, 
Alexandria, Virginia 22314-3428.
     Hand Delivery/Courier: Same as mail address.

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

SUPPLEMENTARY INFORMATION:

A. Background

    Part 705 of NCUA's regulations implements the CDRLP. 12 CFR part 
705. The purpose of the CDRLP is to support the community development 
activities of participating credit unions. 12 CFR 705.2. Participating 
credit unions are defined as those that are specifically involved in 
the stimulation of economic development and community revitalization 
activities in the communities they serve, whose membership consists of 
predominantly low-income members as reflected by a current low-income 
designation pursuant to Sec.  701.34, Sec.  741.204, or other 
applicable standards, and have submitted an application for 
participation and have been selected. 12 CFR 705.3(b); 12 CFR 701.34; 
12 CFR 741.204. The CDRLP achieves its purpose by making low interest 
loans and providing technical assistance to those credit unions. A 
credit union that participates in the CDRLP increases economic and 
employment opportunities for its low-income members.
    Historically, NCUA has taken the position that although student 
credit unions are designated as low-income credit unions for purposes 
of receiving nonmember deposits, they do not qualify to participate in 
the CDRLP because they are not specifically involved in the stimulation 
of economic development activities and community revitalization. 61 FR 
50694 (September 27, 1996); 58 FR 21642 (April 23, 1993). The NCUA 
believes this historical perspective underestimates the importance of 
student credit unions and the impact they have on the economic

[[Page 21444]]

development and revitalization of the communities they serve. Student 
credit unions not only provide their members with valuable financial 
services generally not available but also a unique opportunity for 
financial education. NCUA believes that well run student credit unions 
would benefit greatly from participation in the CDRLP and, as a result, 
would be better able to serve their communities. Accordingly, NCUA 
proposes to amend the CDRLP regulations to allow student credit unions 
to participate in the program.

B. 30-Day Comment Period

    As a matter of agency policy, NCUA generally allows interested 
persons a 60-day period to comment on a proposed rule. NCUA's 
Interpretive Ruling and Policy Statement 87-2. NCUA has determined that 
a 30-day comment period is sufficient in this instance. The simplicity 
of the rule change will allow meaningful public participation in the 
rulemaking process in a shorter time period. Additionally, the shorter 
comment period will enable student credit unions newly eligible to 
participate in the CDRLP to take advantage of current funding 
opportunities due to expire in a number of months.

Regulatory Procedures

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires NCUA to prepare an analysis 
to describe any significant economic impact a proposed rule may have on 
a substantial number of small credit unions (those under ten million 
dollars in assets). The proposed rule permits student credit unions to 
participate in the CDRLP, without imposing any additional regulatory 
burden. The proposed rule would not have a significant economic impact 
on a substantial number of small credit unions, and, therefore, a 
regulatory flexibility analysis is not required.

Paperwork Reduction Act

    NCUA has determined that the proposed rule would 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 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. The proposed rule would not have substantial 
direct effects on the states, on the connection 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 proposed rule does not constitute a policy that 
has federalism implications for purposes of the executive order.

The Treasury and General Government Appropriations Act, 1999--
Assessment of Federal Regulations and Policies on Families

    The NCUA has determined that this proposed rule would not affect 
family well-being within the meaning of section 654 of the Treasury and 
General Government Appropriations Act, 1999, Public Law 105-277, 112 
Stat. 2681 (1998).

Agency Regulatory Goal

    NCUA's goal is to promulgate clear and understandable regulations 
that impose minimal regulatory burden. We request your comments on 
whether the proposed 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 April 15, 
2004.
Becky Baker,
Secretary of the Board.

    For the reasons stated, NCUA proposes to amend 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.


Sec.  705.3  [Amended]

    2. Remove the parenthetical clause ``(excluding student credit 
unions)'' from Sec.  705.3(b).

[FR Doc. 04-9001 Filed 4-20-04; 8:45 am]
BILLING CODE 7535-01-P