[Federal Register Volume 72, Number 198 (Monday, October 15, 2007)]
[Rules and Regulations]
[Pages 58248-58249]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-20266]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 711


Management Official Interlocks Threshold Change

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final rule.

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SUMMARY: The NCUA is amending its management interlocks rule to conform 
it to a change the Financial Services Regulatory Relief Act of 2006 
(FSRAA) made in the dollar threshold that triggers the prohibition on 
management officials serving at unaffiliated depository organizations. 
This final rule changes the threshold from $20 million to $50 million.

DATES: This rule is effective as of October 15, 2007.

FOR FURTHER INFORMATION CONTACT: Annette Tapia, 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

    The Depository Institution Management Interlocks Act (Interlocks 
Act) prohibits individuals from simultaneously serving as a management 
official at two unaffiliated depository institutions or their holding 
companies (collectively, depository organizations) under certain 
circumstances. 12 U.S.C. 3201 et seq. Section 203(1) of the Interlocks 
Act prohibits interlocks between unaffiliated depository organizations 
if each depository organization or its affiliate has an office in the 
same relevant metropolitan statistical area (RMSA prohibition), unless 
each of the depository organizations or affiliates involved has total 
assets below a specified threshold. Before enactment of FSRRA, this 
asset threshold was $20 million; however, section 610 of FSRRA amended 
the Interlocks Act by raising this asset threshold to $50 million, 
effective October 13, 2006.
    This final rule tracks changes the other federal financial 
institution regulators have made in their management interlocks rules. 
72 FR 38753 (July 16, 2007).

B. Regulatory Changes

    NCUA is amending Sec.  711.3(b) to implement section 610 of FSRRA. 
Specifically, the final rule modifies the RMSA prohibition to allow a 
management official of one depository organization to serve as a 
management official of an unaffiliated depository organization that has 
an office in the same RMSA as the first organization if each of the 
depository organizations or affiliates involved has total assets of 
less than $50 million.

C. Regulatory Procedures

Final Rule Under the Administrative Procedure Act

    Generally, the Administrative Procedure Act (APA) requires a 
federal agency to provide the public with notice and the opportunity to 
comment on agency rulemakings. The amendment in this rule is not 
substantive but technical in that it merely incorporates into NCUA's 
regulations a statutory increase in the threshold. The APA permits an 
agency to forego the notice and comment period under certain 
circumstances, such as when a rulemaking is technical and not 
substantive. For these reasons, NCUA finds good cause that notice and 
public comment are unnecessary under Section 553(b)(3)(B) of the APA, 5 
U.S.C. 553(b)(3)(B), and also finds good cause to dispense with the 30-
day delayed effective date requirement under Section 553(d)(3) of the 
APA. 5 U.S.C. 553(d)(3). The rule will, therefore, be effective upon 
publication.

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires NCUA to prepare an analysis 
to describe any significant economic impact a rule may have on a 
substantial number of small entities (those credit unions under ten 
million dollars in assets). This rule changes NCUA's regulation to 
conform to a statutory change. This rule will 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 this rule will 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. 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

[[Page 58249]]

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 Fairness Act of 1996 
(Pub. L. 104-121) (SBREFA) 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 APA. 5 
U.S.C. 551. The Office of Management and Budget is currently reviewing 
this rule as it pertains to SBREFA.

List of Subjects in 12 CFR Part 711

    Antitrust, Banks, Banking, Credit unions.

    By the National Credit Union Administration Board on October 9, 
2007.
Mary Rupp,
Secretary of the Board.

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For the reasons discussed above, NCUA is amending part 711 as follows:

PART 711--MANAGEMENT OFFICIAL INTERLOCKS

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1. The authority citation for part 711 continues to read as follows:

    Authority: 12 U.S.C. 1757 and 3201-3208.

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2. Section 711.3(b) is amended by removing the number ``20'' and adding 
number ``50'' in its place.

[FR Doc. E7-20266 Filed 10-12-07; 8:45 am]
BILLING CODE 7535-01-P