[Federal Register Volume 73, Number 191 (Wednesday, October 1, 2008)]
[Rules and Regulations]
[Pages 56935-56936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-23071]



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 Rules and Regulations
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  Federal Register / Vol. 73, No. 191 / Wednesday, October 1, 2008 / 
Rules and Regulations  

[[Page 56935]]



NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 740

RIN 3133-AD45


The Official Advertising Statement

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final rule.

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SUMMARY: NCUA is 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 rule will give credit unions added flexibility in advertisements by 
allowing them to use the shortened form or the official insurance sign 
in advertisements as alternatives to the basic official advertising 
statement.

DATES: This rule is effective October 31, 2008.

FOR FURTHER INFORMATION CONTACT: Moisette I. Green, Staff Attorney, 
Office of General Counsel, National Credit Union Administration, 1775 
Duke Street, Alexandria, Virginia 22314-3428, or telephone: (703) 518-
6540.

SUPPLEMENTARY INFORMATION: In April 2008, NCUA proposed an amendment 
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. 73 FR 22839 (April 28, 2008). 
Additionally, the proposed amendment clarified the font of the text in 
the official sign may be altered to ensure it is legible when it is 
used as the official advertising statement. The proposal resulted from 
NCUA's 2007 regulatory review, and was identified to provide 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.
    NCUA received a total of eight comments on the proposed rule from 
credit unions and trade associations. All the commenters supported the 
rule. On September 10, 2008, NCUA received notice that one comment 
letter submitted via the Federal eRulemaking Portal regarding this 
rulemaking had not been forwarded to NCUA. This was due to a minor 
software problem that has been corrected.\1\ The comment period for 
this rule closed on June 27, 2008. As noted above, all eight comment 
letters NCUA received fully supported the amendments and the Board 
believes, given the identity of these commenters, which includes major 
credit union trade associations and individual credit unions, that 
these comment letters broadly and fairly represent the views of 
interested parties.
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    \1\ The interagency ``eRulemaking Program'' launched the Web 
site http://www.regulations.gov in January 2003 to provide access 
and an opportunity to comment on all proposed federal regulations at 
one online portal. NCUA's understanding is that the software problem 
has been corrected and safeguards are now in place to ensure this 
error will not occur for future proposed rules. Questions about this 
matter may be directed to John Moses, Chief, eRulemaking Program 
Branch, Environmental Protection Agency, 1200 Pennsylvania Ave., 
NW., Washington, DC 20460, 202/566-1352, [email protected].
---------------------------------------------------------------------------

    The Board believes it is appropriate and fair in these 
circumstances to proceed with the final rule rather than delay 
implementation. This rule creates no burden for FCUs, but merely 
provides an alternative for insured credit unions to meet the 
advertising requirement regarding the existence of federal account 
insurance. For these reasons, the Board concludes there is no need to 
reopen the comment period and the interest of the public and FCUs is 
served by proceeding with the final rule.
    One commenter suggested NCUA further condense the advertising 
statement and permit credit unions to use a brief statement such as, 
``NCUA Insured'' or ``Insured by NCUA.'' Credit unions may use the 
shortened version of the official advertising statement, which is 
``Federally insured by NCUA.'' Keeping the word ``federally'' in the 
shortened version ensures those who may not be familiar with credit 
unions, NCUA, or the National Credit Union Share Insurance Fund receive 
notice that member shares are backed by the full faith and credit of 
the United States government, especially when the shortened statement 
is used alone.
    Accordingly, NCUA adopts the proposed rule, published at 73 FR 
22839 (April 28, 2008), as a final rule.

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 credit unions (those under $10 million in 
assets). The final 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 final rule 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.

Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996, Public Law 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 Procedures Act. 5 U.S.C. 551. The Office of Information 
and Regulatory Affairs, an

[[Page 56936]]

office within OMB, has determined that, for purposes of SBREFA, this is 
not a major rule.

Paperwork Reduction Act

    The final 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 final 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 final 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 final 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).

List of Subjects in 12 CFR Part 740

    Advertisements, Credit unions, Signs and symbols.

    By the National Credit Union Administration Board on September 
25, 2008.
Mary F. Rupp,
Secretary of the Board.

0
For the reasons stated above, NCUA amends 12 CFR part 740 as follows:

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

0
1. The authority citation for part 740 is revised to read as follows:

    Authority: 12 U.S.C. 1766, 1781, 1785, and 1789.
0
2. Amend Sec.  740.5 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 Sec.  
740.4(b)(2).
* * * * *
[FR Doc. E8-23071 Filed 9-30-08; 8:45 am]
BILLING CODE 7535-01-P