[Federal Register Volume 76, Number 83 (Friday, April 29, 2011)]
[Rules and Regulations]
[Pages 23871-23872]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-10103]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Chapter VII

[IRPS 11-1]


Guidelines for the Supervisory Review Committee

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final Interpretative Ruling and Policy Statement 11-1, 
``Supervisory Review Committee'' (IRPS 11-1).

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SUMMARY: This policy statement combines two Interpretative Ruling and 
Policy Statements (IRPSs) and adds denials of technical assistance 
grant (TAG) reimbursements to the types of determinations that credit 
unions may appeal to NCUA's Supervisory Review Committee. This new IRPS 
will replace the earlier IRPSs addressing the Supervisory Review 
Committee.

DATES: This IRPS was previously issued as an interim final IRPS, which 
became effective on January 20, 2011.

FOR FURTHER INFORMATION CONTACT: Dave Marquis, Executive Director or 
Justin M. Anderson, Staff Attorney, Office of General Counsel, National 
Credit Union Administration, 1775 Duke Street, Alexandria, Virginia 
22314-3428, or telephone: (703) 518-6320 (Dave Marquis) or (703) 518-
6540 (Justin Anderson).

SUPPLEMENTARY INFORMATION:

A. Background

    Pursuant to Section 309(a) of the Riegle Community Development and 
Regulatory Improvement Act of 1994 (Riegle Act), Public Law 103-325, 
Sec.  309(a), 108 Stat. 2160 (1994), the NCUA Board (Board) adopted 
guidelines that established an independent appellate process to review 
material supervisory determinations, entitled ``Supervisory Review 
Committee'' (IRPS 95-1). 60 FR 14795 (March 20, 1995). Through IRPS 95-
1, NCUA established a Supervisory Review Committee (Committee) 
consisting of three senior staff members to hear appeals of material 
supervisory determinations. IRPS 95-1 defined material supervisory 
determinations to include determinations on composite CAMEL ratings of 
3, 4 and 5, all component ratings of those composite ratings, 
significant loan classifications and adequacy of loan loss reserves. 
The Board noted in the preamble to IRPS 95-1, however, that it would 
consider expanding the disputes covered by the Committee's review 
process at a later date. 60 FR 14795, 14796 (March 20, 1995). In 2002, 
the Board amended IRPS 95-1 by issuing IRPS 02-1, which added 
Regulatory Flexibility designation revocations to the list of material 
supervisory determinations credit unions may appeal to the Committee.

B. Interim Final IRPS

    At its January meeting, the NCUA Board issued interim final IRPS 
11-1. 76 FR 3674 (January 20, 2011). As noted in the preamble to the 
interim final IRPS, under Part 705 of NCUA's regulations, qualifying 
credit unions can apply for loans or technical assistance grants (TAGs) 
from the Community Development Revolving Loan Fund for Credit Unions 
(CDRLF). The change made in the interim final IRPS allows a credit 
union to appeal the denial of a TAG reimbursement to the Committee. 
Specifically, under the interim final IRPS, any credit union that 
disagrees with the Director of OSCUI's determination may, within 30 
days from the date of the denial, appeal the determination to the 
Committee. Committee decisions on TAG appeals are final; they are not 
appealable to the NCUA Board. Interim final IRPS 11-1 also combined the 
two previous IRPSs addressing the Committee, IRPS 95-1 and 02-1, into 
one centralized document. The Board noted in the preamble that interim 
final IRPS 11-1

[[Page 23872]]

would supersede and replace the previous two IRPSs on the Committee. 
The Board also made the following minor changes in the interim final 
IRPS: Inclusion of current position titles; deletion of the requirement 
for quarterly meetings (meetings will be held on an as needed basis); 
and to make timing of appeal of Committee decisions to the NCUA Board 
consistent, inclusions of a statement that all decisions appealable to 
the Board are from the date of receipt of decision.\1\
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    \1\ Under IRPS 95-1, decisions were appealable 30 days from the 
date a Committee decision was issued and under IRPS 02-1 decisions 
were appealable 60 days from the appellant's receipt of a decision.
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C. Summary of Comments

    NCUA received three comments, two from credit union trade 
associations and one from a state credit union association. All three 
commenters generally supported the rule, but did request additional 
changes. All three commenters requested that appeals to the Supervisory 
Review Committee be more transparent. Ideas suggested by the commenters 
included publishing on NCUA's website the names of the committee 
members, the agenda and dates of committee meetings, an annual report 
of the committee's actions, and the decisions of the committee. NCUA is 
considering ways to make the appeals process more transparent, 
including adding information about the Committee and its functions to 
the NCUA website. The Board, however, does not believe it is necessary 
to include any actions related to transparency in this IRPS. The 
purpose of the IRPS is to inform credit unions of their rights of 
appeal to the Committee.
    One commenter also requested that NCUA clarify how credit unions 
can appeal other supervisory and examination matters that are outside 
the scope of the Committee's review. Section B of this IRPS lists 
various NCUA regulations addressing procedures for other appealable 
issues. In addition, Section B notes that the Board serves as the final 
administrative decision maker for major disputes not covered by those 
other regulations or this IRPS. Such matters should first be pursued 
through the appropriate Regional Office or the Office of Corporate 
Credit Unions.

Regulatory Procedures

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires NCUA to prepare an analysis 
to describe a significant economic impact agency rulemaking may have on 
a substantial number of small credit unions. For purposes of this 
analysis, credit unions under $1 million in assets are considered small 
credit unions.
    This final IRPS expands the types of determinations that credit 
unions may appeal to the NCUA's Supervisory Review Committee and 
combines two previous IRPS. This final IRPS imposes no additional 
financial, regulatory or other burden on credit unions. NCUA has 
determined and certifies that this final IRPS will not have a 
significant impact on a substantial number of small credit unions. 
Accordingly, NCUA has determined that a Regulatory Flexibility Analysis 
is not required.

Paperwork Reduction Act

    NCUA has determined that this final IRPS does 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 regulatory 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 final IRPS applies 
to all credit unions that appeal NCUA material supervisory 
determinations before the NCUA Supervisory Committee, but does not have 
substantial direct effect 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 final IRPS does not constitute a policy that has 
federalism implications for purposes of the executive order.

Assessment of Federal Regulations and Policies on Families

    NCUA has determined that this final IRPS will 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).

Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness 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 APA. 5 U.S.C. 551. 
The Office of Management and Budget is currently reviewing this IRPS, 
but NCUA does not believe the IRPS is a major rule for purposes of the 
Small Business Regulatory Enforcement Fairness Act of 1996.
    Accordingly, the interim final IRPS 11-1, which was published at 76 
FR 3674 on January 20, 2011, is adopted as a final IRPS without change.

    By the National Credit Union Administration Board on April 21, 
2011.
Mary F. Rupp,
Secretary of the Board.
[FR Doc. 2011-10103 Filed 4-28-11; 8:45 am]
BILLING CODE 7535-01-P