[Federal Register Volume 76, Number 101 (Wednesday, May 25, 2011)]
[Proposed Rules]
[Pages 30286-30294]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-12828]



[[Page 30286]]

-----------------------------------------------------------------------

NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Parts 705

RIN 3133-AD91


Community Development Revolving Loan Fund

AGENCY: National Credit Union Administration (NCUA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: NCUA proposes to change its rule governing the process by 
which the agency solicits, receives, evaluates, and acts on credit 
union applications seeking loans and technical assistance grants from 
the Community Development Revolving Loan Fund (CDRLF or Fund). The 
proposed changes update the current rule to improve transparency and 
are intended to improve its organization, structure, and ease of use by 
credit unions. The revisions do not reflect a change to the fundamental 
mission of the CDRLF, but instead remove unnecessary detail and 
outdated processes in the current rule while adding clarification and 
flexibility. The proposal also clarifies the application process and 
adds requirements addressing reporting and monitoring.

DATES: Comments must be received on or before July 25, 2011.

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 Rule 705, CDRLF Amendments'' 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: Pamela Williams, Credit Union Program 
Analyst, Office of Small Credit Union Initiatives, or Justin Anderson, 
Staff Attorney, Office of General Counsel, at the above address or 
telephone (703) 518-6643 (Ms. Williams) or (703) 518-6540 (Mr. 
Anderson).

SUPPLEMENTARY INFORMATION:

A. Background

    The CDRLF was created by Congress in 1979 with an initial 
appropriation of $6 million and has been administered exclusively by 
NCUA since 1986. Through subsequent appropriations and earnings on Fund 
assets, the Fund has grown to over $19.7 million as of the end of the 
first quarter of 2011. The Fund serves as a source of financial 
support, in the form of both loans and technical assistance grants, for 
credit unions serving predominantly low-income members. It also serves 
as a source of funding to help low-income credit unions respond to 
emergencies arising in their communities. The NCUA Board (the Board) 
has delegated to the Office of Small Credit Union Initiatives authority 
to make the determination of how to allocate the finite resources of 
the Fund among qualifying credit unions. Awards provided through the 
CDRLF Program have strengthened credit unions by enabling them to 
increase their capacity to support the communities in which they 
operate. This increased capacity has allowed credit unions to provide 
basic financial services to low-income residents of these communities, 
resulting in more opportunities for residents of the credit unions' 
communities to improve their financial circumstances.
    The technical assistance grant portion of the CDRLF provides funds 
to low-income credit unions so that they may extend services to their 
members and improve their operations. The source of awards includes 
appropriated funds, current year earnings, and a portion of prior 
years' retained earnings.
    Through the loan portion of the CDRLF, low-income credit unions may 
receive funds to support a variety of financial and related services 
designed to meet the particular needs of members and the low-income 
communities served. In years where Congress has not appropriated funds 
for loans, funding has come from scheduled loan repayments of prior 
loans.
    Part 705 has been largely unchanged, in substantive terms, since 
1993. In the years following, significant enhancements, including 
changes in technology, have altered the way in which NCUA retrieves and 
uses data from credit unions. The proposed changes in this rule, which 
comprehensively revise part 705, reflect these changes and are designed 
to reduce the burden on credit unions. The proposed changes remove some 
of the detail in the current rule dealing with administrative aspects 
of the program to provide the agency with greater flexibility to make 
changes and variations to suit specific circumstances. Other changes 
add detail to the rule, for example, regarding how NCUA evaluates 
applications, to provide greater transparency and better knowledge and 
information to prospective applicants. The changes also add a new 
section addressing reporting to and monitoring by NCUA, which is 
designed to help the agency assure that an award from the Fund is used 
in the manner and for the purposes represented by the credit unions 
receiving loans or grants. On balance, the rule is streamlined and the 
burden imposed on credit unions seeking an award from the Fund is 
reduced.

B. Changes in Low-income Designation Criteria

    In November 2008, the Board amended its low-income rule to change 
the criteria by which credit unions serving primarily low-income 
members are designated. 73 FR 71909 (November 26, 2008). NCUA further 
clarified this change in August 2010. 75 FR 47171 (August 5, 2010). As 
more fully discussed in the preambles to those rulemakings, NCUA 
changed the standard for measuring member income from median household 
income to median family income. 12 CFR 701.34. By cross reference, 
which is retained in this proposal, Part 705 uses the low-income 
standard promulgated in the 2008 rule making and clarified in 2010.

C. Section by Section Analysis

    Sec.  705.1. Authority, Purpose and Scope. This section combines 
and summarizes the essential elements in the first three sections of 
the current rule. The only substantive change is driven by the Board's 
recognition of the burden associated with determining whether one of 
the specific purposes of the program, as described in current Sec.  
705.2(a)(2), is being met. The Board recognizes that the requirement 
for credit unions to measure ``income, ownership, and employment 
opportunities for low-income residents in communities they serve'' is 
difficult because of the lack of available data. The Board believes it 
would be beneficial to replace the quoted language currently in this 
section of the rule with the following more precise and measurable 
standard: ``NCUA anticipates the financial awards provided will better 
enable them to support the communities in which they operate; providing 
basic financial services to low-income residents of these communities, 
resulting in more

[[Page 30287]]

opportunities for the residents to improve their financial 
circumstances.'' 12 CFR 705.1(d) (proposed). The Board believes this 
proposed language provides a better description of the actual impact 
awards from the Fund can have on credit unions, their membership, and 
their communities. This section would also contain a general statement 
that any loans or technical assistance grants from the Fund are subject 
to NCUA's discretion and funds availability. 12 CFR 705.1(b) 
(proposed). The Board believes it is beneficial to include this general 
statement in this section rather than repeating it throughout the 
proposal to ensure a concise, streamlined rule.
    Sec.  705.2. Definitions. The current rule has only two 
definitions: ``low-income members'' and ``participating credit 
unions.'' 12 CFR 705.3 (current rule). The 2008 amendment, discussed 
above, by which the criteria for determining whether a credit union 
qualifies for low-income designation, affected the definition of low-
income members. This proposal retains the definition of ``low-income 
members,'' as amended. With respect to the definition of 
``participating credit unions,'' this proposal modifies that definition 
and also defines ``qualifying credit unions,''' which is a new term. 
These definitions retain much of the language in the current definition 
of ``participating credit unions,'' but do contain new language, which 
the Board believes will protect the Fund and better reflect agency 
practice. Under this proposal a ``qualifying credit union'' is one that 
may be or has agreed to be examined by NCUA and holds a current low-
income designation. The proposal clarifies that low-income designations 
are pursuant to Sec.  701.34 for Federal credit unions and Sec.  
741.204 for Federally insured state-chartered credit unions. Section 
701.34 states that low-income designations for Federal credit unions 
will be made by the appropriate NCUA Regional Director, and, Sec.  
741.204 states that low-income designations for Federally insured 
state-chartered credit unions must be made by the appropriate state 
regulator in accordance with the requirements in Sec.  701.34(a) and 
have the concurrence of the appropriate NCUA Regional Director. 12 CFR 
701.34 and 741.204. In addition, this proposal states that low-income 
designations for non-federally insured state-chartered credit unions 
must be made by the appropriate state regulator under applicable state 
standards with the concurrence of NCUA. As mentioned above, the 
definition of ``qualifying credit union,'' under this proposal, would 
apply to only those credit unions that NCUA may examine or agree to be 
examined by NCUA. The Board believes this requirement will allow NCUA 
to obtain all relevant information about a credit union's financial 
condition, so that it can make the most prudent and responsible choices 
among credit union applicants seeking awards from the Fund without 
excluding credit unions interested in awards from the Fund. The Board 
notes that there has traditionally been very limited interest by 
nonfederally insured state-chartered credit unions, which are not 
subject to examination by NCUA, in awards from the CDRLF. If a non-
federally insured credit union is interested in participation, it would 
have to agree to examination by NCUA. The proposed revised definition 
of a ``participating credit union'' is a qualifying credit union that 
has submitted an application that has been approved by NCUA. Other 
newly defined terms in the proposal, including Notice of Funding 
Opportunity, Application, Loan and Technical Assistance Grant, are 
self-explanatory and designed to supplement the substantive sections of 
the proposal dealing with those respective issues.
    Sec.  705.3. Eligibility. This section, which encompasses material 
from several sections in the current rule, is designed to establish the 
criteria by which credit unions will be considered eligible to apply 
for and receive financial assistance from the Fund. Subsection (a) 
states that, to be eligible to receive an award, a credit union must 
complete an application and meet the underwriting criteria established 
by NCUA.
    Sec.  705.4. Permissible Uses of Loan Funds. The Board has 
included, in this section, examples of permissible uses of loan funds 
received from the CDRLF. The Board believes it will be helpful for the 
rule to provide examples of the types of programs and uses that can be 
supported through loans from the Fund. In addition to listing basic 
examples, the proposal notes that NCUA will announce in the Notice of 
Funding Opportunity other funding priorities and permissible uses of 
loan funds. Permissible uses of technical assistance grants are 
discussed in Sec.  705.10 of this proposal.
    Sec.  705.5. Terms and Conditions. This section simplifies the 
current rule by eliminating much of the information presently set out 
in Sec. Sec.  705.5 and 705.7. The intent of this proposed section is 
to confirm that, with respect to loans, NCUA will establish the terms 
and conditions governing the loan in separate loan documents. The 
proposed rule does, however, provide some detail on the maximum loan 
amount, the interest rate, repayment, acceleration, and matching 
requirements. With respect to the maximum loan amount, the Board 
acknowledges in this proposal that generally the maximum loan amount is 
$300,000, but NCUA may make loans that exceed this amount in certain 
circumstances. A list of factors NCUA would consider in deciding to 
make a loan in excess of $300,000 will be included in the Notice of 
Funding Opportunity rather than in this proposal to preserve maximum 
flexibility for the agency to address changing circumstances that would 
necessitate the need for higher amount loans. The Board has also 
included a portion of current Sec.  705.7(a), which states that at 
NCUA's discretion, a loan from the Fund must be recorded as a note 
payable or nonmember deposit.
    Also in this proposal, the Board has eliminated the range of 
interest rates that may be charged on a loan from the Fund, which is 
currently set in the rule at 1% to 3%. Instead, the Board proposes to 
reference the CDRLF's Interest Rate Policy, which has been in effect 
since January 2008 and is located on NCUA's Web site. NCUA will include 
the specific interest rate for a funding in the Notice of Funding 
Opportunity. This again will ensure maximum flexibility for NCUA to set 
interest rates that are appropriate for the particular economic climate 
at the time of a funding and the needs of credit unions.
    This portion of the proposal also incorporates language from 
current Sec. Sec.  705.7(b),(c), and (e) addressing repayment, 
maturity, matching, and acceleration. These sections are unchanged from 
the current rule except that the matching requirement in the current 
section is now at NCUA's option rather than expressly required. The 
current rule states that ``generally,'' monies obtained from the Fund 
``must be matched'' by the participating credit union. This proposal 
makes the matching requirement expressly optional at NCUA's discretion 
based on the financial condition of the credit union. This proposed 
change will enable the agency to more readily employ its judgment and 
experience in determining whether matching will be beneficial and 
necessary in any given case. This proposal does, however, retain 
Sec. Sec.  705.7(b)(1), (2), and (3) from the current rule that address 
the requirements for a credit union that must provide matching funds. 
These requirements have been largely unchanged, but do provide more 
flexibility for NCUA to determine how

[[Page 30288]]

to address matching funds on a case-by-case basis. For example, the 
statement that all member share deposits will be credited as a two-for-
one match has been deleted. This section also clarifies that all 
matching funds must be from non-governmental sources. 12 CFR 705.5(g) 
(proposed). The Board notes that this requirement is consistent with 
other community development lending programs and believes it is 
necessary to ensure that credit unions do not become too reliant or 
completely dependent on governmental sources of funding. Additional 
requirements for matching funds will be included in the loan documents 
with a credit union required to provide matching funds. 12 CFR 705.5(g) 
(proposed).
    This section concludes with a general statement that other terms 
and conditions of loans from the Fund will be included in the Notice of 
Funding Opportunity and applicable loan documents. 12 CFR 705.5(h) 
(proposed rule). The Board believes it is prudent to preserve its 
flexibility by addressing other specific details concerning the loan in 
the Notice of Funding Opportunity and loan documents, which can be more 
readily adapted to change and adjusted as circumstances and experience 
warrant.
    Sec.  705.6. Application and Award Processes. As discussed below, 
this section would combine portions of Sec. Sec.  705.5 and 705.9 of 
the current rule as well as add expanded explanation and direction 
about the application and award processes. The Board believes this 
section of the proposed rule provides transparency and clarity about 
the way in which a credit union applies for funds and NCUA renders a 
decision on that application. Each subsection of this section is 
discussed in detail below.
    (a) Notice of Funding Opportunity. This section corresponds to 
current Sec.  705.9 but would provide more detail about how and where 
NCUA will publicly announce loan and technical assistance grant program 
initiatives. In addition to publishing Notices of Funds Opportunity in 
the Federal Register, NCUA will follow Federal government protocol and 
post its current program initiatives on the government's basic Internet 
portal for financial award programs (currently at http://www.grants.gov), and will also post information on its own Web site. 
This process conforms to current agency practice, as does the 
discussion in this section about how NCUA also provides direct notice 
of program opportunities through Letters to Credit Unions and its 
electronic mail service, NCUA Express. Also, to increase flexibility, 
the Board proposes to delete the requirement that NCUA publish this 
notice annually.
    (b) Application Requirements. This section would incorporate 
provisions from Sec. Sec.  705.5(a), (b)(1), and (b)(5) of the current 
regulation, which address the information an applicant credit union 
must provide when applying for financial awards from the CDRLF. In this 
respect, the proposal notes that NCUA would require a credit union to 
provide a narrative about how the credit union intends to use the money 
from the Fund to enhance the products and services it provides to its 
members and how those enhanced products or services will support the 
economic development of the community served by the credit union. This 
proposed aspect replaces the current requirement that a credit union 
develop a Community Needs Plan. (See current Sec.  705.6). The Board 
believes that replacing the Community Needs Plan will provide a better 
instruction for credit unions developing this portion of the 
application and reduce the burden on applicant credit unions to provide 
an additional plan. This subsection also addresses the additional 
information that is required from nonfederally insured credit unions. 
This information was carried over from Sec.  705.5 of the current rule, 
and, for the reasons discussed, above adds the requirement that 
nonfederally insured state-chartered credit unions agree to be examined 
by NCUA.
    (c) Evaluation and Selection of Participating Credit Unions. This 
new subsection is consistent with the Board's goal of enhancing 
transparency in how the agency makes decisions. Specifically, this 
proposed subsection describes the criteria that NCUA will generally 
evaluate in deciding among competing applications seeking limited 
funds, including financial and performance considerations, whether the 
proposed uses of funds are compatible with program goals, and whether 
the credit union is likely to be successful in accomplishing its stated 
objectives. NCUA, however, will not be confined to only considering 
these criteria and could consider any other criteria identified in the 
Notice of Funding Opportunity it deems relevant depending upon the 
funding initiative, economic environment, or other factors. Given that 
requests for funding routinely exceed available funds, the Board 
believes this subsection will provide useful information that will help 
credit unions in developing and refining their applications and 
understanding how the agency makes its determinations. In addition, 
this proposed subsection states that, with regard to Qualifying Federal 
Credit Unions, NCUA will consult and consider information from the 
examination staff that conducted the applicant credit union's most 
recent examination and will seek the concurrence of the applicant 
credit union's supervising Regional Director before an award is made. 
Consultation with examination staff and Regional Director has been a 
matter of practice and the Board believes including it in this section 
will improve transparency. Information relating to the examination of a 
Qualifying State-chartered Credit Union is addressed in Sec.  705.8, 
which is discussed below.
    (d) Requests for Additional Information. This new proposed 
subsection articulates that NCUA may require additional information 
from applicants before rendering its decision, and will do so using its 
discretion to choose the applicants that are likely to be the most 
successful in carrying out the purpose of the Program. This subsection 
also states that failure to provide the requested information may 
result in NCUA rejecting the application.
    (e) Timing. This new subsection states that NCUA will include a 
timeframe to submit all requested information in the Notice of Funding 
Opportunity and that failure to submit all of the requested information 
by the stated deadline may result in NCUA rejecting the application 
without further consideration.
    (f) Notice of Award and Appeals. This new subsection, which 
contains some substantive information in the current Sec.  705.5(c), 
articulates that NCUA will notify applicant credit unions as to whether 
or not they have qualified for a loan or technical assistance grant. 
This subsection would also follow the approach taken in the current 
rule with respect to appeals, which is to acknowledge that any credit 
union submitting an application for either a loan or a technical 
assistance grant that is considered nonqualified may appeal that 
decision to the NCUA Board. The proposal makes clear that the scope of 
review by the Board is limited to the threshold question of 
qualification and not the issue of whether, among qualified applicants, 
a particular loan or technical assistance grant is funded. Awards from 
the Fund are discretionary and that determination is not subject to 
administrative appeal to the Board. Information on appealing denials of 
technical assistance grant reimbursements is discussed below in Sec.  
705.10.
    (g) Disbursement. This new subsection states that before NCUA will 
disburse a loan, the Participating Credit

[[Page 30289]]

Union must sign all applicable loan documents and the promissory note. 
This section also states that NCUA may, in its discretion, choose not 
to disburse the entire loan at once.
    Sec.  705.7. Urgency. This new section specifically acknowledges 
that, on an emergency basis, NCUA may consider a funding request from a 
qualifying credit union experiencing an unplanned or unexpected expense 
that the credit union is unable to meet with its own resources. The 
credit union will be required to demonstrate a compelling need for 
immediate action or attention without which its continued operations 
would be threatened or severely disrupted. NCUA will evaluate these 
applications to determine if emergency funding is warranted. Urgent 
needs for funding are not part of any specific initiative, but rather 
an ongoing process that will not be included in specific Notices of 
Funds Opportunity. The Board notes in this proposal, however, that 
technical assistance grants and loans provided under this section 
should not be a regular source of funding for credit unions and credit 
unions must still exhibit a purpose consistent with the goals of the 
Fund.
    Sec.  705.8. Qualifying State-chartered Credit Unions. This section 
incorporates language from Sec.  705.8 of the current regulation, which 
articulates requirements that are specific to state-chartered credit 
unions. These requirements include obtaining written concurrence from 
the credit union's state regulatory authority, making state examination 
reports available to NCUA and agreeing to examination by NCUA for the 
purpose of compliance with this part. The requirement in this section 
relating to an examination is in addition to a general requirement that 
to be eligible, a credit union must be able to be or agree to be 
examined by NCUA. The Board notes that to qualify for awards from the 
Fund, NCUA must be able to examine the entire financial condition of 
the credit union, whereas an examination under this proposed subsection 
allows NCUA to examine the credit union only to verify compliance with 
this Part.
    Sec.  705.9. Reporting and Monitoring. This new section is designed 
to provide the framework for the way in which the agency assures that 
recipients of awards from the Fund actually use the money they receive 
for its intended purposes. In this respect, the Board intends this 
proposal will clarify NCUA's practices of monitoring the use of CDRLF 
funding to ensure and document that credit unions use the funds for the 
intended purposes. The proposed rule first establishes that NCUA's 
policy in this respect is to do such monitoring. The proposal goes on 
to describe two methods the agency will employ in this regard: first, 
reporting by participating credit unions, at such times and in such 
formats as NCUA shall direct, of the uses to which funds have been made 
and the results that have been obtained; and second, NCUA may elect to 
review information to which it already has access, including 
information obtained from the examination process and call reports, for 
verification and monitoring purposes.
    Sec.  705.10. Technical Assistance Grants. This section of the 
proposal incorporates much of the text in current Sec.  705.10 and 
makes a general reference to the funding of technical assistance grants 
and preserves maximum flexibility in the establishment of amounts and 
other terms and conditions. The proposal does acknowledge that, as a 
general rule, technical assistance grants are provided on a 
reimbursement basis to cover expenditures approved in advance and 
supported by receipts. This section also includes a new subsection that 
discusses the appeal rights for technical assistance grant 
reimbursement denials in accordance with NCUA Interpretative Ruling and 
Policy Statement (IRPS) 11-1. 76 FR 3674 (January 20, 2011). IRPS 11-1 
provides that technical assistance grant reimbursement denials may only 
be appealed to NCUA's Supervisory Review Committee. Credit unions must 
make appeals under this IRPS within 30 days from the date of the 
denial. Id. Also, with respect to appeals, this section states that the 
determination of NCUA's Supervisory Review Committee is final and its 
decisions are not appealable to the Board.

Regulatory Procedures

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires NCUA to prepare an 
analysis to describe any significant economic impact any proposed 
regulation may have on a substantial number of small entities. NCUA 
considers credit unions having less than ten million dollars in assets 
to be small for purposes of RFA. Interpretive Ruling and Policy 
Statement (IRPS) 87-2 as amended by IRPS 03-2. The proposed revisions 
to part 705 are designed to update and streamline the rule, thereby 
reducing the burden for credit unions that are seeking financial 
awards, whether in the form of a technical assistance grant or a loan, 
from NCUA. Moreover, the rule implements a program that is entirely 
voluntary on the part of credit unions. It has no impact on credit 
unions that elect not to pursue this funding opportunity. NCUA has 
determined and certifies that this proposed rule, if adopted, will not 
have a significant economic impact on a substantial number of small 
credit unions. Accordingly, the NCUA has determined that an RFA 
analysis is not required.

Paperwork Reduction Act

    There are aspects of the CDRLF Program that involve information 
collection within the meaning of the Paperwork Reduction Act of 1995 
(PRA). 44 U.S.C. 3507(d).
    Previously, NCUA sought and obtained Office of Management and 
Budget (OMB) approval for its use of certain documents, including the 
application and the report forms used to monitor and follow up on the 
uses credit unions have made of funds provided under the technical 
assistance grant and loan programs. These documents have been assigned 
OMB Control No. 3133-0137, which remained valid through December 2010.
    The proposed rule eliminates much of the detail from current 
Sec. Sec.  705.5 and 705.7 and provides that terms and conditions 
pertaining to loans from the Fund will be governed in separate loan 
documents. These documents, which will be required to obtain loan funds 
from the CDRLF, constitute information collections within the meaning 
of the PRA. Accordingly, NCUA intends to secure OMB approval, through 
an application for reinstatement of OMB Control No. 3133-0137, to 
include a promissory note and a loan agreement under that number. As 
required by the PRA, NCUA is submitting a copy of this proposed 
regulation as part of its request for OMB approval of reinstatement of 
this previously approved information collection. Since the prior number 
has expired, NCUA believes it is prudent and appropriate to seek 
approval for reinstatement of the previously approved control number.
    The proposed rule contemplates that credit unions that are approved 
for loans from the Fund will be required to execute a promissory note 
and a loan agreement. NCUA estimates approximately fifteen credit 
unions will be approved for loans per year. NCUA also estimates it will 
take a credit union approximately two hours to review, evaluate and 
execute the loan documents, noting in particular that the credit union 
must attach, as an exhibit to the loan agreement, a duly executed board 
resolution confirming the decision to borrow the funds has been 
approved by the board and that the individual executing the note on 
behalf

[[Page 30290]]

of the credit union has been duly authorized to do so.
    The loan agreement also calls for a report describing the use of 
loan proceeds, the impact of any new programs supported or funded by 
loan proceeds, and any obstacles encountered affecting the credit 
union's ability to accomplish the objectives identified in its loan 
application. This report must be provided to NCUA annually. NCUA 
estimates the burden associated with this reporting to be another two 
hours per year. On average, there are about 50 loans outstanding at any 
given time for which reporting may be necessary.
    The loan agreement also contemplates that other information about a 
credit union's business, operations and financial condition may be 
requested by NCUA from time to time, if necessary to permit the Fund to 
maintain or perfect its security interest in collateral or to otherwise 
fully effectuate the purposes of the loan agreement. NCUA estimates it 
will request this additional information only with respect to ten 
percent of outstanding loans and that the burden associated with 
compliance with this request will be four hours.
    This yields an estimated annual burden of 150 hours for this 
information collection, as broken out and itemized below:

a. Promissory Note and Loan Agreement
Average number of new loans annually: 15
Annual hour burden: 2
2 hours x 15 = 30
b. Regular Annual Reports
Number of respondents: 50
Frequency of response: annually
Annual hour burden: 2
2 hours x 50 = 100
c. Irregular Reports as requested by NCUA
Number of respondents: 5
Frequency of response: annually
Annual hour burden: 4
4 hours x 5 = 20

    Total hours: 30 + 100 + 20 = 150

    Organizations and individuals that wish to submit comments on this 
information collection requirement should direct them to the Office of 
Information and Regulatory Affairs, OMB, Room 10226, New Executive 
Office Building, Washington, DC 20503, with a copy to Mary Rupp, 
Secretary of the Board, National Credit Union Administration, 1775 Duke 
Street, Alexandria, Virginia 22314-3428.
    The NCUA considers comments by the public on this proposed 
collection of information in:
     Evaluating whether the proposed collection of information 
is necessary for the proper performance of the functions of the NCUA, 
including whether the information will have a practical use;
     Evaluating the accuracy of the NCUA's estimate of the 
burden of the proposed collection of information, including the 
validity of the methodology and assumptions used;
     Enhancing the quality, usefulness, and clarity of the 
information to be collected; and
     Minimizing the burden of collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology; e.g., permitting 
electronic submission of responses.
    The Paperwork Reduction Act requires OMB to make a decision 
concerning the collection of information contained in the proposed 
regulation between 30 and 60 days after publication of this document in 
the Federal Register. Therefore, a comment to OMB is best assured of 
having its full effect if OMB receives it within 30 days of 
publication. This does not affect the deadline for the public to 
comment to the NCUA on the proposed regulation.

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 financial award programs administered 
through the CDRLF are available to FCUs as well as to state chartered 
credit unions. By law, state chartered institutions with Federal share 
insurance are already subject to numerous provisions of NCUA's rules, 
based on the agency's role as the insurer of member share accounts and 
the significant interest NCUA has in the safety and soundness of their 
operations. In any event, the proposed 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 proposal 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 proposed rule 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).

Agency Regulatory Goal

    NCUA's goal is to promulgate clear and understandable regulations 
that impose minimal regulatory burden. We request comments on whether 
the proposed rule is understandable and minimally intrusive if 
implemented as proposed.

List of Subjects in 12 CFR Part 705

    Credit unions, Loans, Grants, Revolving fund, Community programs, 
Low income.

    By the National Credit Union Administration Board on May 19, 
2011.
Mary F. Rupp,
Secretary of the Board.

    Accordingly, NCUA proposes to amend 12 CFR part 705 as follows:

PART 705--COMMUNITY DEVELOPMENT REVOLVING LOAN FUND FOR CREDIT 
UNIONS

    1. The authority citation for part 705 continues to read as 
follows:

    Authority:  12 U.S.C. 1756, 1757(5)(D), and (7)(I), 1766, 1782, 
1784, 1785 and 1786.

    2. Revise part 705 as follows:

Community Development Revolving Loan Fund for Credit Unions

Sec.
705.1 Authority, purpose and scope.
705.2 Definitions.
705.3 Eligibility requirements.
705.4 Permissible uses of loan funds.
705.5 Terms and conditions.
705.6 Application and awards processes.
705.7 Urgency.
705.8 Qualifying state-chartered credit unions.
705.9 Reporting and monitoring.
705.10 Technical assistance grants.


Sec.  705.1  Authority, purpose and scope.

    (a) Part 705 is issued by the National Credit Union Administration 
(NCUA) under Sec.  130 of the Federal Credit Union Act, 12 U.S.C. 
1772c-1, which implements the Community Development Credit Union 
Revolving Loan Fund Transfer Act (Pub. L. 99-609, 100 Stat. 3475 
(November 6, 1986)).
    (b) This Part describes how NCUA makes money available to credit 
unions from its Community Development

[[Page 30291]]

Revolving Loan Fund (Fund). NCUA administers the Fund and makes both 
loans and technical assistance grants to credit unions in accordance 
with the eligibility criteria and other qualifications, and subject to 
the terms and conditions set out in this Part. All loans and technical 
assistance grants made under this Part are subject to funds 
availability and NCUA's discretion.
    (c) The Fund is intended to support the efforts of credit unions 
through loans and technical assistance grants needed for:
    (1) Providing basic financial and related services to residents in 
their communities;
    (2) Enhancing their capacity to better serve their members and the 
communities in which they operate; and
    (3) Responding to emergencies.
    (d) The policy of NCUA is to revolve funds to credit unions as 
often as practical in order to gain maximum economic impact on as many 
credit unions as possible. NCUA anticipates the financial awards 
provided to credit unions through the Fund will better enable them to 
support the communities in which they operate; providing basic 
financial services to low-income residents of these communities, 
resulting in more opportunities for the residents to improve their 
financial circumstances.
    (e) This Part generally establishes the following:
    (1) Definitions;
    (2) The application process and requirements for qualifying for a 
loan from the Fund;
    (3) The evaluation process;
    (4) How loan funds are to be made available and their repayment; 
and
    (5) Technical assistance grants to be provided to credit unions.


Sec.  705.2  Definitions.

    (a) For purposes of this Part, the following terms shall have the 
meanings assigned to them in this section.
    (1) Administrator means the office within NCUA to which the Board 
has delegated authority to administer the Fund, including the authority 
to establish priorities for funding initiatives, receiving and 
evaluating applications and making determinations among competing 
applications about which applications should be funded.
    (2) Application means a form supplied by the NCUA by which a 
Qualifying Credit Union may apply for a loan or a technical assistance 
grant from the Fund.
    (3) Board refers to the National Credit Union Administration Board.
    (4) Credit Union means a credit union chartered under the Federal 
Credit Union Act or under the laws of any state of the United States.
    (5) Fund means the Community Development Revolving Loan Fund.
    (6) Loan is an extension of credit from the Fund to a Participating 
Credit Union that must be repaid, with interest.
    (7) Low-income Members are those members defined in Sec.  701.34 of 
this chapter.
    (8) Notice of Funding Opportunity, as more fully described in Sec.  
705.6 of this Part, means the notice NCUA publishes describing one or 
more loan or technical assistance grant programs or initiatives 
currently being supported by the Fund and inviting interested 
Qualifying Credit Unions to submit applications to participate in the 
program(s) or initiative(s).
    (9) Participating Credit Union refers to a Qualifying Credit Union 
that has submitted an application for a loan or a technical assistance 
grant from the Fund that has been approved by NCUA. A Participating 
Credit Union shall not be deemed to be an agency, department or 
instrumentality of the United States because of its receipt of a 
financial award from the Fund.
    (10) Program means the Community Development Revolving Loan Fund 
Program under which NCUA makes loans and technical assistance grants 
available to credit unions.
    (11) Qualifying Credit Union means a credit union that may be or 
has agreed to be examined by NCUA, with a current low-income 
designation pursuant to Sec.  701.34(a)(1) or Sec.  741.204 of this 
chapter or, in the case of a state-chartered nonfederally insured 
credit union, a low-income designation from a state regulator, made 
under appropriate state standards with the concurrence of NCUA. 
Services to low-income members must include, at a minimum, share 
account and loan services.
    (12) Technical Assistance Grant means an award of money from the 
Fund to a Participating Credit Union that does not have to be repaid.


Sec.  705.3  Eligibility requirements.

    (a) To be eligible to receive an award, in the form of either a 
loan or a technical assistance grant from the Fund, a Qualifying Credit 
Union must, within the time frames specified in any Notice of Funding 
Opportunity, also:
    (1) Complete and submit an application; and
    (2) Meet the underwriting standards established by NCUA, including 
any pertaining to financial viability, as set forth in the application 
and any related materials developed by NCUA.


Sec.  705.4  Permissible uses of loan funds.

    (a) NCUA may make loans from the Fund to Participating Credit 
Unions for various uses. The following is a non-exhaustive list of 
examples of permissible uses or projects:
    (1) Development of new products or services for members, including 
new or expanded electronic banking facilities, share draft programs, 
credit card programs, security and disaster recovery programs, or other 
operational programs;
    (2) Partnership arrangements with community based service 
organizations or government agencies;
    (3) Loan programs, including, but not limited to, micro business 
loans, payday loan alternatives, education loans, and real estate 
loans; and
    (4) Acquisition, expansion or improvement of office space or 
equipment, including branch facilities and ATMs.
    (b) In addition to the examples listed in subsection (a) of this 
section, NCUA may identify other funding priorities and uses in the 
Notice of Funding Opportunity, which is discussed in Sec.  705.6 of 
this Part.


Sec.  705.5  Terms and Conditions.

    (a) NCUA may make loans, in such amounts and subject to such terms 
and conditions as it may determine, from the Fund to Participating 
Credit Unions for any of the examples identified in Sec.  705.4 of this 
Part or as identified in a particular Notice of Funding Opportunity.
    (b) Funding Limits. Loans may be granted in amounts up to $300,000 
in the aggregate, depending on the creditworthiness of the Qualifying 
Credit Union, financial need, and a demonstrated capability of the 
Qualifying Credit Union to provide financial and related services to 
its members. NCUA may, however, make loans that exceed $300,000 in 
certain circumstances. NCUA will include in the Notice of Funding 
Opportunity the particular criteria used to evaluate an application for 
a loan that exceeds $300,000.
    (c) Recording of a loan. At the discretion of NCUA, a loan will be 
recorded by a Participating Credit Union as either a note payable or a 
nonmember deposit.
    (d) Interest rate. The rate of interest on loans is governed by the 
CDRLF Loan Interest Rate Policy, which can be found on NCUA's Web site 
of by contacting NCUA's Office of Small Credit Union Initiatives. The 
specific interest rate for a particular funding will be announced in 
the Notice of Funding Opportunity. The Board will announce changes, if

[[Page 30292]]

any, to the CDRLF Loan Interest Rate Policy and those changes will 
apply to loans made under future Notices of Funding Opportunity.
    (e) Repayment and maturity. (1) Awards made available through 
loans, whether recorded as a note payable or nonmember deposit are in 
the form of a loan and must be repaid to NCUA. All loans will be 
scheduled for repayment within the shortest time compatible with sound 
business practices and the objectives of the Program, but in no case 
will the term exceed five years.
    (2) Semiannual interest payments (beginning six months after the 
initial distribution of a loan) and semiannual principal payments 
(beginning one year after the initial distribution of a loan) will be 
required.
    (f) Acceleration. The terms of each loan agreement will provide for 
the immediate acceleration of the unpaid balance for breach or default 
in the performance by the Participating Credit Union of the terms or 
conditions of the loan. Default and breach will include 
misrepresentation; failure to make interest or principal payments; 
failure to report; insolvency; and failure, if required by NCUA, to 
maintain adequate matching funds for the duration of the loan period. 
Other specific causes of default and breach will be identified in the 
loan documents between the Participating Credit Union and NCUA. The 
unpaid balance will also be accelerated and immediately due if any part 
of the loan funds are improperly used or if uninvested loan proceeds 
remain unused for an unreasonable or unjustified period of time.
    (g) Matching requirements. NCUA may require a Participating Credit 
Union to develop and implement a plan to match all or a portion of the 
funds represented by loan proceeds. Such requirement will be based on 
the financial condition of the Participating Credit Union, which will 
be evaluated under criteria contained in the Notice of Funding 
Opportunity. Matching funds must be from non-governmental member or 
nonmember share deposits. Participating Credit Unions required to 
provide matching funds are subject to the following general provisions 
and any other conditions in the Notice of Funding Opportunity and 
agreements between the Participating Credit Union and the 
Administrator:
    (1) Generally loan monies made available must be matched by the 
Participating Credit Union in an amount equal to the loan amount. Any 
loan monies matched by nonmember share deposits are not subject to the 
20% limitation on nonmember deposits under Sec.  701.32 of this 
Chapter. Participating Credit Unions must maintain the increase in the 
total amount of share deposits for the duration of the loan. Once the 
loan is repaid, nonmember share deposits accepted to meet the matching 
requirement are subject to Sec.  701.32 of this Chapter.
    (2) Upon approval of its loan application, and before it meets its 
matching requirement, a Participating Credit Union may receive the 
entire loan commitment in a single payment. If any funds are withheld, 
the remainder of the funds committed will be available to the 
Participating Credit Union only after it has documented that it has met 
the match requirement.
    (3) Failure of a Participating Credit Union to generate the 
required match within the time specified in the loan documents may 
result in the reduction of the loan proportionate to the amount of 
match actually generated. Payment of any additional funds initially 
approved may be limited as appropriate to reflect the revised amount of 
the loan approved. Any funds already advanced to the Participating 
Credit Union in excess of the revised amount of loan approval must be 
repaid immediately to NCUA. Failure to repay such funds to NCUA upon 
demand may result in the default of the entire loan.
    (h) Other terms and conditions pertaining to loans, including but 
not necessarily limited to duration, repayment obligations, and 
covenants, will be specified in the Notice of Funding Opportunity and 
applicable loan documents to be signed by the Participating Credit 
Union.


Sec.  705.6  Application and award processes.

    (a) Notice of Funding Opportunity. NCUA will publish a Notice of 
Funding Opportunity in the Federal Register, on all applicable 
government Web sites, and its own Web site, describing the loan and 
technical assistance grant programs for the period in which funds are 
available. The Notice of Funding Opportunity will announce special 
initiatives, the amount of funds available, funding priorities, 
permissible uses of funds, funding limits, deadlines, and other 
pertinent details. The Notice of Funding Opportunity will also advise 
potential applicants on how to obtain an application and any related 
materials.
    (1) NCUA may supplement the information contained in the Notice of 
Funding Opportunity through such other media as it determines 
appropriate, including Letters to Credit Unions, direct notices to 
Qualifying Credit Unions, and announcements on its Web site.
    (b) Application requirements. An application for a loan must 
provide information demonstrating the Qualifying Credit Union's sound 
financial position and ability to manage its day-to-day business 
affairs, including the Qualifying Credit Union's financial projections 
and planned use of proceeds consistent with the purpose of the Program, 
requirements of this Part, and the Notice of Funding Opportunity.
    (1) Applications to participate and qualify for a loan or technical 
assistance grant under the Program may be obtained from the National 
Credit Union Administration, Community Development Revolving Loan 
Program for Credit Unions as outlined in the Notice of Funds 
Opportunity.
    (2) With respect to loans, NCUA will also require a Qualifying 
Credit Union to develop and submit a narrative describing how the 
Qualifying Credit Union intends to use the money obtained from the Fund 
to enhance the products or services it provides to its membership and 
how those enhanced products or services support the membership and 
community served by the Qualifying Credit Union. The Notice of Funding 
Opportunity may include additional details and requirements.
    (3) In addition to those items required in this section, a 
Qualifying Nonfederally Insured Credit Union must also include the 
following:
    (i) A copy of its most recent external audit report;
    (ii) Proof of deposit and surety bond insurance which states the 
maximum insurance levels permitted by the policies;
    (iii) A balance sheet, an income and expense statement, and a 
schedule of delinquent loans, for each of the four most recent quarter-
ends;
    (iv) A description of any other involvement in existing community 
development programs of state and Federal agencies; and
    (v) An agreement to be subject to examination by NCUA.
    (c) Evaluation and Selection of Qualifying Credit Unions. NCUA will 
generally evaluate applications submitted by Qualifying Credit Unions 
in accordance with the criteria described in this section. Nothing in 
this section, however, precludes NCUA from considering other criteria 
included in the Notice of Funding Opportunity that NCUA determines to 
be necessary based on the type of funding initiative, economic 
environment, or other factors or conditions that warrant the evaluation 
of additional or alternative criteria. Generally, complete applications 
will be evaluated by NCUA

[[Page 30293]]

to determine if the Qualifying Credit Union satisfies the following:
    (1) Financial and Performance. The Qualifying Credit Union must 
exhibit a safe and sound financial condition, including a demonstrated 
ability to perform the requirements associated with the type of award 
being sought and compliance with NCUA's underwriting standards. In this 
respect, NCUA will consider the Qualifying Credit Union's long term 
financial viability, including absence of indicators suggesting the 
Qualifying Credit Union is a candidate for merger, a purchase and 
assumption transaction, or conservatorship. NCUA will also consider the 
Qualifying Credit Union's compliance with the provisions of any 
previous loan or technical assistance grant received. NCUA may also 
consider information concerning the Qualifying Credit Union, to which 
it already has access, including information obtained through the 
examination process and data contained in Call Reports.
    (2) Compatibility. NCUA will evaluate whether the stated objectives 
to be accomplished through the use of the loan or technical assistance 
grant proceeds conform to the broad purposes and rationale underlying 
the Fund. Specifically, NCUA will consider whether the award will 
enable the Qualifying Credit Union to provide basic financial products 
and related services to its members or enhance its capacity to better 
serve its members and the community in which it operates. NCUA will 
also consider whether the use of the financial award will conform to 
any applicable funding priority, special initiative, or special 
instruction announced in the Notice of Funding Opportunity.
    (3) Feasibility. NCUA will consider the likelihood of the 
Qualifying Credit Union being successful in accomplishing its stated 
objectives, based on its application and the factors NCUA determines 
are relevant.
    (4) Examination Information and Concurrence from Regional Director 
for Qualifying Federal Credit Unions. NCUA will consider information 
and statements provided by NCUA staff or State Supervisory Authority 
staff that performed the Qualifying Credit Union's most recent 
examination in evaluating the Qualifying Credit Union. NCUA will only 
provide a loan or a technical assistance grant to a Qualifying 
Federally-insured Credit Union with the concurrence of the Credit 
Union's supervising Regional Director. Examination information for 
Qualifying State-chartered Credit Unions is discussed in Sec.  705.8 of 
this Part.
    (d) Requests for additional information. NCUA will make its funding 
determinations among the several qualified applications using its 
discretion and considering which best meet the priorities and 
initiatives established and announced by NCUA. During its evaluation 
process, however, NCUA may request a Qualifying Credit Union provide 
additional clarifying or technical information to support its 
application. NCUA may determine not to provide further consideration of 
any application failing to provide additional required information.
    (e) Timing. NCUA will announce, in the Notice of Funding 
Opportunity, the deadline for Qualifying Credit Unions to submit all 
require documentation including the application. Failure to submit all 
of the requested information or to submit the information within the 
timeframe specified in the Notice of Funding Opportunity may result in 
NCUA rejecting the application without further consideration.
    (f) Notice of Award and Appeals. The Administrator will make an 
initial determination as to whether an application meets NCUA's 
standards established by this Part and the Notice of Funding 
Opportunity. The Administrator will provide written notice to a 
Qualifying Credit Union as to whether or not it has qualified for a 
loan or technical assistance grant under this Part. A Qualifying Credit 
Union whose application has been denied for failure of a qualification 
may appeal that decision to the NCUA Board in accordance with the 
following:
    (1) Within thirty days of its receipt of a notice of non-
qualification, a credit union may appeal the Administrator's decision 
to the NCUA Board. The scope of the NCUA Board's review is limited to 
the threshold question of qualification and not the issue of whether, 
among qualified applicants, a particular loan or technical assistance 
grant is funded.
    (2) The foregoing procedure shall apply only with respect to 
applications received by NCUA during an open period in which funds are 
available and NCUA has called for applications. Any application 
submitted by an applicant during a period in which NCUA has not called 
for applications will be rejected, except for those applications 
submitted under Sec.  705.7 if this section, and such rejection shall 
not be subject to appeal or review by the NCUA Board.
    (g) Disbursement. Before NCUA will disburse a loan, the 
Participating Credit Union must sign the loan agreement, promissory 
note, and any other loan related documents. NCUA may, in its 
discretion, choose not to disburse the entire amount of the loan at 
once.


Sec.  705.7  Urgency.

    (a) On an emergency basis, subject to funds availability, NCUA may 
consider a funding request from a Qualifying Credit Union experiencing 
an unplanned or unexpected expense that the Qualifying Credit Union is 
unable to meet with its own resources. The Qualifying Credit Union must 
demonstrate a compelling need for immediate action or attention without 
which its continued operations would be threatened or severely 
disrupted. NCUA, in its discretion, will determine whether the 
situation constitutes an emergency and if the Qualifying Credit Union 
is required to submit any additional information to show why the funds 
are needed on an emergency basis. The Administrator will determine and 
substantiate any reason to expedite funding in such case. Requests for 
loans or technical assistance grants under this section will be 
addressed on an ongoing basis and are outside the scope of the Notice 
of Funding Opportunity. Technical assistance grants and loans provided 
on this basis must still exhibit a purpose consistent with the goals of 
the Fund. Loans and technical assistance grants made under this section 
are not anticipated to be a regular source of funding for any one or 
more Qualifying Credit Unions.


Sec.  705.8  Qualifying state-chartered credit unions.

    (a) A Qualifying State-chartered Credit Union that has submitted an 
application to NCUA for participation must obtain written concurrence 
from its respective state regulatory authority before NCUA will approve 
its application. A Qualifying State-chartered Credit Union must also 
make copies of its state examination reports available to NCUA and must 
agree to examination by NCUA for the limited purpose of compliance with 
this Part. An agreement to examination under this section is in 
addition to the requirement in Sec.  705.6(b)(3)(v) of this Part, which 
requires non-federally insured, state-chartered credit unions to agree 
to be examined by NCUA as a condition of qualification under the 
Program.


Sec.  705.9  Reporting and monitoring.

    (a) General. NCUA's policy is to monitor Participating Credit 
Unions to assure that loan and technical assistance grant funds awarded 
under this Part have been used in accordance with their intended 
purposes and to determine whether anticipated outcomes have been 
achieved. Particular emphasis will

[[Page 30294]]

be placed on reviewing loan funds earmarked for programs or initiatives 
proposed by the Participating Credit Union to determine if the funds 
have been used as represented and whether the program or initiative has 
had the impact anticipated by the Participating Credit Union.
    (b) Reporting. A Participating Credit Union must complete and 
submit all required reports, at such times and in such formats as NCUA 
will direct. Such reports must describe how the Participating Credit 
Union has used the loan or technical assistance grant proceeds and the 
results it has obtained, in relation to the programs, policies or 
initiatives identified by the Participating Credit Union in its 
application. In addition, the Participating Credit Union's board of 
directors must report on the progress of providing needed community 
services to the Participating Credit Union's members once a year, 
either at the annual meeting or in a written report sent to all 
members. The Participating Credit Union must also submit the written 
report or a summary of the report given at the annual meeting to NCUA. 
NCUA may request additional information as it determines appropriate.
    (c) Monitoring. At its discretion, for verification purposes, NCUA 
may elect to review information concerning Participating Credit Unions, 
to which it already has access, including information obtained through 
the examination process and data contained in Call Reports, as part of 
its evaluation of the effectiveness of the loan and technical 
assistance grant programs.


Sec.  705.10  Technical assistance grants.

    (a) Technical assistance grants may be funded in such amounts, and 
in accordance with such terms and conditions, as NCUA may establish. In 
general, technical assistance grants are provided on a reimbursement 
basis, to cover expenditures approved in advance by NCUA and supported 
by receipts evidencing payment by the Participating Credit Union.
    (1) Permissible uses of technical assistance grant funds. Sections 
705.4(a) and (b) of this part also apply to technical assistance grants 
made under this section and provide examples and other information with 
respect to the permissible use of funds from the CDRLF. In addition, 
technical assistance grants generally should enhance and support the 
Participating Credit Union's internal capacity to serve its members and 
better enable it to provide financial services to the community in 
which the Participating Credit Union is located.
    (2) Appeals of technical assistance grant reimbursement denials. 
Notwithstanding Sec.  705.6(e), pursuant to NCUA Interpretative Ruling 
and Policy Statement 11-1, any Participating Credit Union may appeal a 
determination of the Administrator to deny a technical assistance grant 
reimbursement to NCUA's Supervisory Review Committee. All appeals of 
technical assistance grant reimbursements must be submitted to the 
Supervisory Review Committee within 30 days from the date of the 
denial. The decisions of the Supervisory Review Committee are final and 
are not appealable to the NCUA Board.

[FR Doc. 2011-12828 Filed 5-24-11; 8:45 am]
BILLING CODE 7535-01-P