[Federal Register Volume 69, Number 188 (Wednesday, September 29, 2004)]
[Rules and Regulations]
[Pages 58039-58043]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-21757]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Parts 701 and 742


Federal Credit Union Ownership of Fixed Assets

AGENCY: National Credit Union Administration.

ACTION: Final rule.

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SUMMARY: The National Credit Union Administration (NCUA) Board is 
issuing final revisions to its fixed asset rule. The fixed asset rule 
governs Federal credit union (FCU) ownership of fixed assets and, among 
other things, limits investment in fixed assets to five percent of an 
FCU's shares and retained earnings. This final rule clarifies and 
reorganizes the requirements of the current rule to make it easier to 
understand. The only substantive changes in the final rule are to: 
Eliminate the requirement that an FCU, when calculating its investment 
in fixed assets, include its investments in any entity that holds fixed 
assets used by the FCU; and establish a time frame for submission of 
requests for waiver of the requirement for partial occupation of 
premises acquired for future expansion.

DATES: This rule is effective October 29, 2004.

FOR FURTHER INFORMATION CONTACT: Paul Peterson, Staff Attorney, 
Division of Operations, Office of General Counsel, at the above address 
or telephone: (703) 518-6540.

SUPPLEMENTARY INFORMATION:

A. Background

    The Federal Credit Union Act authorizes an FCU to purchase, hold, 
and dispose of property necessary or incidental to its operations. 12 
U.S.C. 1757(4). Generally, an FCU may only invest in property it 
intends to use to transact credit union business, that is, to support 
its internal operations or serve its members. 12 CFR 721.3(d). NCUA's 
fixed asset rule limits an FCU's investment in fixed assets and imposes 
requirements on the planning for, use of, and disposal of real property 
acquired for future expansion. 12 CFR 701.36.
    The NCUA Board has a policy of continually reviewing NCUA 
regulations to ``update, clarify and simplify existing regulations and 
eliminate redundant and unnecessary provisions.'' NCUA Interpretive 
Ruling and Policy Statement (IRPS) 87-2, Developing and Reviewing 
Government Regulations. As a result of the NCUA's 2003 review, the 
Board determined that the fixed asset rule should be updated. In April, 
2004, the Board published its proposed updates for public comment. 69 
FR 21439 (April 21, 2004).

B. Section-by-Section Analysis of the Final Rule

    This final rule does not vary significantly from the proposed rule. 
Like the proposed rule, the only substantive revisions in the final 
rule from the current rule are to (1) eliminate the requirement that an 
FCU, when calculating its investment in fixed assets, include its 
investments in any entity that holds fixed assets used by the FCU, and 
(2) establish a time frame for submission of requests for waiver of the 
requirement for partial occupation of premises acquired for future 
expansion. The final rule also reorganizes the paragraph structure and 
clarifies the provisions governing an FCU's plans for future expansion 
into fixed assets. A section-by-section analysis of these revisions 
follows.

Section 701.36(a)

    The final rule renumbers Sec.  701.36(c), Investment in Fixed 
Assets, as Sec.  701.36(a). The final rule retains the requirement that 
FCUs with $1,000,000 or more in assets cannot invest in fixed assets if 
the investment would cause the aggregate of all the FCU's fixed assets 
to exceed five percent of the FCU's shares and retained earnings. The 
final rule retains the waiver process that allows FCUs to apply for a 
waiver of the five percent limitation and reorganizes the waiver 
provisions to simplify them and make them easier to follow.

[[Page 58040]]

Section 701.36(b)

    The final rule renumbers Sec.  701.36(d), Premises, to Sec.  
701.36(b). This paragraph contains provisions on real property owned by 
an FCU that is not currently used to transact credit union business.
    The final rule changes the title of this paragraph to ``Premises 
Not Currently Used to Transact Credit Union Business'' to better 
indicate its scope.
    The final rule clarifies that requests for waiver of the partial 
occupation requirement must be in writing and submitted to NCUA within 
30 months of acquisition of the premises. The final rule also clarifies 
that partial use occurs when FCU staff occupy some part of the space on 
a full-time basis.
    The final clarifies that, after real property acquired for future 
expansion has been held for one year, a board resolution with 
definitive plans for full utilization must be available for inspection 
by an NCUA examiner. The final rule also clarifies that full use occurs 
when the premises are completely occupied by the FCU, or by some 
combination of the FCU, credit union service corporations (CUSOs), and 
credit union vendors, on a full-time basis. CUSO and vendor activities 
must be primarily to support the operations of the FCU or serve its 
members.
    The final rule clarifies and simplifies the provisions on abandoned 
premises. The final rule revises the provision that an FCU ``shall 
endeavor to dispose of ``abandoned premises'' at a price sufficient to 
reimburse the FCU for its investment and costs of acquisition'' to 
state that an FCU must seek fair market value for the property.

Section 701.36(c)

    The final rule renumbers Sec.  701.36(e), Prohibited Transactions, 
to Sec.  701.36(c). The rule retains the prohibition on an FCU 
acquiring or leasing property (without the prior approval of NCUA) from 
the FCU's insiders, their family members, or corporations and 
partnerships in which the insider has a significant ownership interest. 
To ensure that all business forms are covered, the rule adds limited 
liability companies and ``other entities'' to this list.

Section 701.36(d)

    FCUs that qualify for the Regulatory Flexibility (RegFlex) Program 
are exempt from the five percent limitation on investment in fixed 
assets. 12 CFR part 742. Accordingly, the final rule adds a new 
paragraph (d) to Sec.  701.36 with a cross-reference to the RegFlex 
Program. The rule also reiterates that FCUs that once qualified for the 
RegFlex Program and its associated exemptions but no longer qualify for 
RegFlex must comply with all the provisions of the fixed asset rule.

Section 701.36(e)

    The final rule renumbers Sec.  701.36(b), Definitions, to Sec.  
701.36(e). The rule retains the definition of ``investment in fixed 
assets'' found in subparagraph (4), but deletes the subparagraph 
(4)(iv) portion of the definition that includes any investments in, and 
loans to, a partnership or corporation, including a CUSO, that holds 
any fixed assets used by the FCU. This portion of the definition is 
unnecessary and, in some cases, may cause investment in fixed assets to 
be overstated.
    The final rule revises the definition of ``retained earnings'' in 
subparagraph (7) to mean ``undivided earnings, regular reserve, reserve 
for contingencies, supplemental reserves, reserve for losses, and other 
appropriations from undivided earnings as designated by management or 
the Administration.'' The revision recognizes that reserve accounts may 
be created out of undivided earnings consistent with generally accepted 
accounting principles. The rule also separates the definitions of 
``shares'' and ``retained earnings'' and alphabetizes all the 
definitions to make them easier to locate.

Section 742.4(a)

    The final rule includes a technical amendment to the RegFlex 
Program rule reflecting the restructuring of the fixed asset rule.

C. Public Comments

    NCUA received 12 comment letters regarding the proposed rule. 
Almost all the commenters expressed general agreement with the proposed 
rule, and, in particular, the clarifications and simplifications. Most 
of the commenters expressed appreciation for NCUA's policy of reviewing 
its regulations at least once every three years. Summaries of the 
comments and the Board's reaction follow.

Amendment to Definition of Fixed Asset

    Almost all the commenters agree with the change in the definition 
of fixed asset to exclude investments in entities that hold fixed 
assets used by the FCU.
    One commenter believes that lease payments for fixed assets should 
also be excluded from the calculation of the fixed asset limit. The 
Board does not want to exclude lease payments. The Board's longstanding 
position is that an FCU can over-invest in fixed assets through binding 
lease arrangements just as it can over-invest through outright 
ownership. See, for example, the preamble to the 1989 final fixed asset 
rule. 54 FR 18466 (May 1, 1989).

Clarification of ``Partially Occupy'' and ``Fully Occupy'' and 
Associated Time Frames

    The proposed rule sought to clarify that premises were considered 
partially occupied when the credit union is using some part of the 
space on a full-time basis and fully occupied when the credit union, or 
a combination of the credit union, CUSOs, or vendors, use the entire 
space on a full-time basis. Almost all the commenters agreed that the 
clarifications were helpful.
    Most commenters believe it is reasonable that credit unions 
intending to seek a waiver of the requirement for partial occupation of 
premises within three years should file the request for waiver within 
30 months. One commenter asks that, instead of 30 months, the request 
for waiver be filed within 35 months, one month before the expiration 
of the three-year period. One commenter objects to the waiver provision 
and believes it should be eliminated. This commenter is particularly 
concerned that a credit union that loses its eligibility for the 
RegFlex Program should not be granted a waiver.
    The final rule retains the 30-month notice requirement. Thirty 
months seems a reasonable amount of time to prepare a waiver request. 
The Board also believes that the Regional Director should have 
flexibility to grant waivers in appropriate cases, and the final rule 
retains this waiver authority.
    Several commenters believe NCUA should reduce or eliminate the 
rule's requirements for both partial and full occupation, but 
particularly for full occupation. These commenters contend it is 
difficult for a credit union to obtain a building or lease space that 
is a perfect fit for the credit union's current and near term plans and 
the rule's occupation requirements restrict credit union growth and may 
be anticompetitive. One commenter cites the perceived difficulty rural 
and low-income credit unions have in finding appropriate office space, 
and another cites the perceived difficulty a continuing credit union in 
a merger has in balancing reduced staffing needs with the buildings it 
inherits in a merger. Another commenter stated that office construction 
projects take more than three years from first planning to building 
occupation and that it is ``impractical to write a regulation that will 
inevitably require a waiver.'' A few commenters also believe credit 
unions

[[Page 58041]]

eligible for the RegFlex program should be exempt from any requirements 
to fully occupy a building because of the lack of safety and soundness 
concerns for these credit unions. Two commenters cite with approval the 
Office of the Comptroller of the Currency's (OCC's) approach to real 
estate owned by national banks. The OCC requires partial occupation of 
bank-owned real estate but not always full occupation.
    The Board recognizes the difficulties associated with the 
management of real estate and other fixed assets but believes that the 
fixed asset rule, as revised by this rulemaking, provides maximum 
flexibility to FCUs within the bounds of the law and safety and 
soundness. Federal credit unions are chartered for the purpose of 
providing financial services to their members and it is not permissible 
for them to engage in real estate activities that do not support that 
purpose.
    While it may sometimes be difficult for credit unions to find real 
estate to fit their needs or to downsize real estate holdings following 
a merger, the Board believes the rule provides enough flexibility to 
meet various circumstances. The rule allows an FCU to own or lease 
premises it will not occupy immediately but needs for future expansion 
and gives FCUs significant leeway on how to achieve both partial and 
full occupation. For example, there is no set time period within which 
an FCU must achieve full occupation. While the rule requires an FCU to 
develop a definitive plan for full occupation, it has an entire year 
after it acquires property to develop the plan. Further, with regard to 
partial occupation, the rule permits FCUs to hold real estate for 
significant periods of time--up to three years--before the FCU has to 
occupy any of the space. If an FCU needs additional time beyond three 
years to achieve partial occupation, it may request approval for 
additional time from its Regional Director. The Board believes that it 
would be unusual, even when an FCU is constructing its own premises, 
for the FCU not to achieve partial occupation within three years. 
Still, if the construction process will take more than three years, a 
waiver is appropriate and the credit union should obtain it before 
binding itself contractually to the project.
    The Board is aware that the Office of the Comptroller of the 
Currency has a different view of the powers of national banks under the 
National Bank Act, but the Board has concluded, for both legal and 
safety and soundness reasons, that FCUs may not lease real estate to 
unrelated third parties indefinitely. As noted above, the acquisition 
of real estate and other fixed assets must support the provision of 
financial services to credit union members and the Board believes the 
rule provides significant and sufficient flexibility for FCUs in how 
they address any excess capacity they may have in fixed assets they 
acquire.

Fixed Asset Limitation

    The current rule limits an FCU's fixed assets to five percent of 
shares and retained earnings. Credit unions eligible for the RegFlex 
Program are exempt from this limitation and there is a waiver process 
that other credit unions may use to avoid the five percent limitation.
    A few commenters are concerned with the proposed rule's 
clarification that credit unions that lose their eligibility for the 
regulatory flexibility program must again comply with the fixed asset 
rule's five percent limitation. One commenter suggests that a credit 
union that loses its status have up to five years to dispose of fixed 
assets, citing a similar time frame in the rule for disposition of 
abandoned premises. Another commenter suggests that credit unions with 
less than 9% net worth should have their RegFlex Program status 
extended for purposes of compliance with the fixed asset limitation 
even if they lose their RegFlex status for other purposes. One 
commenter suggests that NCUA apply the 5% limit on fixed assets to 
credit unions that have a 7% or less net worth ratio, and that NCUA 
modify its rule to increase the limit in direct proportion to the 
amount that the net worth ratio exceeds 7%. Another commenter believes 
the ratio of fixed assets to a combination of deposits and capital is 
not a meaningful test of prudent management.
    In addressing these comments, the Board first wishes to clarify a 
statement made in the preamble of the proposed rule. The preamble 
stated that an FCU eligible for the RegFlex Program with fixed assets 
exceeding five percent of shares and retained earnings and that 
subsequently loses its RegFlex eligibility must either reduce its fixed 
asset holdings below the five percent level or obtain a waiver. The 
RegFlex Program regulation, however, has a grandfather provision that 
states:

    Any action by the credit union under the RegFlex authority will 
be grandfathered. Any actions subsequent to losing the RegFlex 
authority must meet NCUA's regulatory requirements. This does not 
diminish NCUA's authority to require a credit union to divest its 
investments or assets for substantive safety and soundness reasons.

    12 CFR 742.8. Accordingly, an FCU that loses its RegFlex 
eligibility and finds itself with fixed assets exceeding five percent 
of shares and retained earnings does not have to divest itself of any 
fixed assets unless NCUA affirmatively orders it to do so for safety 
and soundness reasons. If the FCU wants to acquire additional fixed 
assets, the FCU will need a waiver from the Regional Director before 
the acquisition if, after acquisition, the FCU would exceed the five 
percent limit. The Board has amended the final rule text to reflect 
this more clearly.
    As stated above, a few commenters request modification of the five 
percent limit for FCUs that lose their RegFlex eligibility. The Board 
does not believe these credit unions need any special variance from the 
five percent limit. A Regional Director has authority to grant waivers 
and set conditions on those waivers. For FCUs that lose RegFlex 
eligibility and have or want fixed assets that would put them over the 
five percent limit, a Regional Director has authority to establish 
appropriate fixed asset levels on a case-by-case basis.

D. 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 entities (those credit unions under ten 
million dollars in assets). NCUA believes that, under the current rule, 
the only burden imposed on small credit unions is the requirement to 
submit a waiver request if investment in fixed assets exceeds 5% of 
retained shares and earnings. There are presently about 4,500 small, 
federally-insured credit unions. Each year, only about ten of these 
credit unions submit a waiver request, and NCUA estimates each waiver 
request takes about ten hours to prepare. Accordingly, and as stated in 
the preamble to the proposed rule, NCUA does not believe the rule 
imposes a significant economic impact on a substantial number of small 
entities and no flexibility analysis is required. NCUA received no 
comments about this conclusion.

Paperwork Reduction Act

    The proposed rule requested comment on the information collection 
requirements contained in the fixed asset rule and advised that NCUA 
was seeking the reinstatement of Collection of Information, FCU 
Ownership of Fixed Assets, Control Number 3133-0040. No comments were 
received. On July 7,

[[Page 58042]]

2004, the Office of Management and Budget (OMB) approved the 
reinstatement of Control Number 3133-0040, with revisions as proposed 
and an expiration date of July 31, 2007.

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. This rule will not have substantial direct 
effects 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.

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

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

Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement 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 Procedure 
Act. 5 U.S.C. 551. The Office of Management and Budget has determined 
that this rule is not a major rule for purposes of the Small Business 
Regulatory Enforcement Fairness Act of 1996.

List of Subjects

12 CFR Part 701

    Credit unions.

12 CFR Part 742

    Credit unions, Reporting and recordkeeping requirements.

    By the National Credit Union Administration Board on September 
23, 2004.
Mary Rupp,
Secretary of the Board.

    Accordingly, the NCUA amends 12 CFR parts 701 and 742 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, 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. 1861 and 42 U.S.C. 3601-3610. 
Section 701.35 is also authorized by 42 U.S.C. 4311-4312.

    2. Revise Sec.  701.36 to read as follows:


Sec.  701.36  FCU ownership of fixed assets.

    (a) Investment in Fixed Assets. (1) No Federal credit union with 
$1,000,000 or more in assets may invest in any fixed assets if the 
investment would cause the aggregate of all such investments to exceed 
five percent of the credit union's shares and retained earnings.
    (2) The NCUA may waive the prohibition in paragraph (a)(1) of this 
section.
    (i) A Federal credit union desiring a waiver must submit a written 
request to the NCUA regional office having jurisdiction over the 
geographical area in which the credit union's main office is located. 
The request must describe in detail the contemplated investment and the 
need for the investment. The request must also indicate the approximate 
aggregate amount of fixed assets, as a percentage of shares and 
retained earnings, that the credit union would hold after the 
investment.
    (ii) The regional director will inform the requesting credit union, 
in writing, of the date the request was received and of any additional 
documentation that the regional director might require in support of 
the waiver request.
    (iii) The regional director will approve or disapprove the waiver 
request in writing within 45 days after receipt of the request and all 
necessary supporting documentation. If the regional director approves 
the waiver, the regional director will establish an alternative limit 
on aggregate investments in fixed assets, either as a dollar limit or 
as a percentage of the credit union's shares and retained earnings. 
Unless otherwise specified by the regional director, the credit union 
may make future acquisition of fixed assets only if the aggregate all 
of such future investments in fixed assets does not exceed an 
additional one percent of the shares and retained earnings of the 
credit union over the amount approved by the regional director.
    (iv) If the regional director does not notify the credit union of 
the action taken on its request within 45 calendar days of the receipt 
of the waiver request or the receipt of additional requested supporting 
information, whichever occurs later, the credit union may proceed with 
its proposed investment in fixed assets. The investment, and any future 
investments in fixed assets, must not cause the credit union to exceed 
the aggregate investment limit described in its waiver request.
    (b) Premises Not Currently Used To Transact Credit Union Business. 
(1) When a Federal credit union acquires premises for future expansion 
and does not fully occupy the space within one year, the credit union 
must have a board resolution in place by the end of that year with 
definitive plans for full occupation. Premises are fully occupied when 
the credit union, or a combination of the credit union, CUSOs, or 
vendors, use the entire space on a full-time basis. CUSOs and vendors 
must be using the space primarily to support the credit union or to 
serve the credit union's members. The credit union must make any plans 
for full occupation available to an NCUA examiner upon request.
    (2) When a Federal credit union acquires premises for future 
expansion, the credit union must partially occupy the premises within a 
reasonable period, not to exceed three years. Premises are partially 
occupied when the credit union is using some part of the space on a 
full-time basis. The NCUA may waive this partial occupation requirement 
in writing upon written request. The request must be made within 30 
months after the property is acquired.
    (3) A Federal credit union must make diligent efforts to dispose of 
abandoned premises and any other real property not intended for use in 
the conduct of credit union business. The credit union must seek fair 
market value for the property, and record its efforts to dispose of 
abandoned premises. After premises have been abandoned for four years, 
the credit union must publicly advertise the property for sale. Unless 
otherwise approved in writing by the NCUA, the credit union must 
complete the sale within five years of abandonment.
    (c) Prohibited Transactions. (1) Without the prior written approval 
of the NCUA, no federal credit union may invest in premises through an 
acquisition or a lease of one year or longer from any of the following:
    (i) A director, member of the credit committee or supervisory 
committee, or senior management employee of the federal credit union, 
or immediate family member of any such individual.
    (ii) A corporation in which any director, member of the credit 
committee or supervisory committee,

[[Page 58043]]

official, or senior management employee, or immediate family members of 
any such individual, is an officer or director, or has a stock interest 
of 10 percent or more.
    (iii) A partnership, limited liability company, or other entity in 
which any director, member of the credit committee or supervisory 
committee, or senior management employee, or immediate family members 
of any such individual, is a general partner, or a limited partner or 
entity member with an interest of 10 percent or more.
    (2) The prohibition contained in paragraph (c)(1) of this section 
also applies to a lease from any other employee if the employee is 
directly involved in investments in fixed assets unless the board of 
directors determines that the employee's involvement does not present a 
conflict of interest.
    (3) All transactions with business associates or family members not 
specifically prohibited by this paragraph (c) must be conducted at 
arm's length and in the interest of the credit union.
    (d) Regulatory Flexibility Program. Federal credit unions that 
qualify for the Regulatory Flexibility Program provided for in part 742 
of this chapter are exempt from the five percent limitation described 
in paragraph (a) of this section. For Federal credit unions eligible 
for the Regulatory Flexibility Program that subsequently lose 
eligibility:
    (1) Section 742.8 of this chapter provides that NCUA may require 
the credit union to divest any existing fixed assets for substantive 
safety and soundness reasons; and
    (2) The credit union may not make any new investments in fixed 
assets if, after the investment, the credit union's total investments 
in fixed assets would exceed the five percent limitation described in 
paragraph (a) of this section. The regional director may waive this 
prohibition to allow for new investments.
    (e) Definitions--As used in this section:
    (1) Abandoned premises means real property previously used to 
transact credit union business but no longer used for that purpose and 
real property originally acquired for future expansion for which the 
credit union no longer contemplates such use.
    (2) Fixed assets means premises, furniture, fixtures and equipment.
    (3) Furniture, fixtures, and equipment means all office 
furnishings, office machines, computer hardware and software, automated 
terminals, and heating and cooling equipment.
    (4) Investments in fixed assets means:
    (i) Any investment in improved or unimproved real property which is 
being used or is intended to be used as premises;
    (ii) Any leasehold improvement on premises;
    (iii) The aggregate of all capital and operating lease payments on 
fixed assets, without discounting commitments for future payments to 
present value; and
    (iv) Any investment in furniture, fixtures and equipment.
    (5) Immediate family member means a spouse or other family members 
living in the same household.
    (6) Premises means any office, branch office, suboffice, service 
center, parking lot, other facility, or real estate where the credit 
union transacts or will transact business.
    (7) Senior management employee means the credit union's chief 
executive officer (typically this individual holds the title of 
President or Treasurer/Manager), any assistant chief executive officers 
(e.g., Assistant President, Vice President or Assistant Treasurer/
Manager) and the chief financial officer (Comptroller).
    (8) Shares means regular shares, share drafts, share certificates, 
other savings.
    (9) Retained earnings means undivided earnings, regular reserve, 
reserve for contingencies, supplemental reserves, reserve for losses, 
and other appropriations from undivided earnings as designated by 
management or the Administration.

PART 742--REGULATORY FLEXIBILITY PROGAM

    3. The authority citation for part 742 continues to read as 
follows:

    Authority: 12 U.S.C 1756 and 1766.


    4. Revise Sec.  742.4(a) to read as follows:


Sec.  742.4  From what NCUA regulations will I be exempt?

    (a) RegFlex credit unions are exempt from the provisions of the 
following NCUA regulations without restrictions or limitations: Sec.  
701.25, Sec.  701.32(b) and (c), Sec.  701.36(a), Sec.  703.5(b)(1)(ii) 
and (2), Sec.  703.12(c), Sec.  703.16(b), and Sec.  723.7(b) of this 
chapter.
* * * * *
[FR Doc. 04-21757 Filed 9-28-04; 8:45 am]
BILLING CODE 7535-01-P