[Federal Register Volume 73, Number 82 (Monday, April 28, 2008)]
[Proposed Rules]
[Pages 22839-22840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-8967]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 740

RIN 3133-AD45


The Official Advertising Statement

AGENCY: National Credit Union Administration (NCUA).

ACTION: Proposed rulemaking.

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SUMMARY: The NCUA Board proposes revising the requirements for use of 
the official insurance sign and official advertising statement to 
permit insured credit unions to use the basic form of the official 
advertising statement, a shortened form, or the official sign in 
advertisements. The proposed rule will give credit unions added 
flexibility in advertisements. As compared to the current requirement, 
credit unions will be able to use the shortened form or the official 
insurance sign in advertisements as alternatives to the basic official 
advertising statement; under the current rule, credit unions may only 
use the shortened form if they also include the official sign.

DATES: Comments must be received on or before June 27, 2008.

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/RegulationsOpinionsLaws/proposed_regs/proposed_regs.html. Follow the 
instructions for submitting comments.
     E-mail: Address to [email protected]. Include ``[Your 
name] Comments on Proposed Part 740'' in the e-mail subject line.
     Fax: (703) 518-6319. Use the subject line described above 
for e-mail.
     Mail: Address to Mary Rupp, 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: Moisette I. Green, Staff Attorney, 
Office of General Counsel, at the above address or telephone: (703) 
518-6540.

SUPPLEMENTARY INFORMATION: NCUA continually reviews its 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. Under IRPS 87-2, NCUA conducts a rolling review of one-
third of its regulations every year, involving both internal review and 
public comment. As a part of its 2007 regulatory review, NCUA 
identified an improvement for part 740, the regulation governing notice 
of insured status, providing insured credit unions greater flexibility 
in how they meet the requirement of giving notice of their insured 
status.
    The Federal Credit Union Act (Act) requires insured credit unions 
to display signs at their places of business indicating accounts are 
insured and also to include in all advertisements a statement to the 
effect that accounts are insured. 12 U.S.C. 1785(a). The Act authorizes 
the NCUA Board to promulgate regulations governing the substance of the 
official insurance sign and the manner it is displayed or used and, 
also, to address the practicality of including the official statement 
on insured status in advertisements. Id.
    NCUA implements this authority in part 740 of its regulations and, 
in Sec.  740.5, NCUA requires insured credit unions to include the 
official advertising statement in all advertisements, including on 
their main internet pages, with certain exceptions. The basic form of 
the official statement is ``This credit union is federally insured by 
the National Credit Union Administration.'' Currently, the regulation 
permits shortening the official statement to ``Federally insured by 
NCUA'' if used with a reproduction of the official sign in Sec.  
740.4(b).

[[Page 22840]]

    NCUA proposes to revise Sec.  740.5(b) to permit insured credit 
unions to use, in addition to the basic form of the official 
advertising statement, the shortened form or the official sign in their 
advertisements. In other words, the proposed rule will permit insured 
credit unions, in addition to using the official advertising statement 
in its advertisements, to use the shortened statement alone or the 
official sign alone in advertisements. The flexibility this would 
provide is currently available under the Federal Deposit Insurance 
Corporation's rule regarding disclosure of insured status in 
advertisements. 12 CFR 328.3.
    Additionally, the proposed amendment clarifies the font of the text 
in the official sign may be altered as described in Sec.  740.4(b)(2) 
when it is used as the official advertising statement. 12 CFR 
740.4(b)(2).

Regulatory Procedures

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires NCUA to prepare an analysis 
to describe any significant economic impact any proposed regulation may 
have on a substantial number of small credit unions (those under $10 
million in assets). The proposed amendment merely expands the options 
credit unions have to comply with the requirement to notify members and 
the public of their insured status in advertisements. Accordingly, the 
NCUA has determined and certifies that the proposed rule, if adopted, 
will not have a significant economic impact on a substantial number of 
small credit unions within the meaning of the Regulatory Flexibility 
Act, 5 U.S.C. 601-612.

Paperwork Reduction Act

    The proposed rule does not contain a ``collection of information'' 
within the meaning of section 3502(3) of the Paperwork Reduction Act of 
1995 (44 U.S.C. 3502(3)) and would not increase paperwork requirements 
under the Paperwork Reduction Act of 1995 or 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 effect 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

    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, Pub. L. 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 amendment is understandable and minimally 
intrusive if implemented as proposed.

List of Subjects in 12 CFR Part 740

    Advertisements, Credit unions, Signs and symbols.

    By the National Credit Union Administration Board on April 17, 
2008.
Mary F. Rupp,
Secretary of the Board.

    For the reasons set forth above, it is proposed that 12 CFR part 
740 be amended as follows:

PART 740--ACCURACY OF ADVERTISING AND NOTICE OF INSURED STATUS

    1. The authority citation for part 740 is revised to read as 
follows:


    Authority: 12 U.S.C. 1766, 1781, 1785, and 1789.

    2. Section 740.5 is amended by revising paragraph (b) to read as 
follows:


Sec.  740.5  Requirements for the official advertising statement.

* * * * *
    (b) The official advertising statement is in substance as follows: 
``This credit union is federally insured by the National Credit Union 
Administration.'' Insured credit unions, at their option, may use the 
short title ``Federally insured by NCUA'' or a reproduction of the 
official sign, as described in Sec.  740.4(b), as the official 
advertising statement. The official advertising statement must be in a 
size and print that is clearly legible. If the official sign is used as 
the official advertising statement, an insured credit union may alter 
the font size to ensure its legibility as provided in paragraph (b)(2) 
of Sec.  740.4.
* * * * *
 [FR Doc. E8-8967 Filed 4-25-08; 8:45 am]
BILLING CODE 7535-01-P