[Federal Register Volume 77, Number 230 (Thursday, November 29, 2012)]
[Rules and Regulations]
[Pages 71083-71085]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-28666]



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  Federal Register / Vol. 77, No. 230 / Thursday, November 29, 2012 / 
Rules and Regulations  

[[Page 71083]]



NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Parts 701, 707, 714, 748, and 749

RIN 3133-AE13


Regulations Affecting Credit Unions; Technical Amendments

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final rule.

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SUMMARY: The NCUA Board (Board) is making a number of technical 
amendments to NCUA's regulations to conform them to the changes 
required by the Dodd-Frank Wall Street Reform and Consumer Protection 
Act (Dodd-Frank Act) and based on NCUA's rolling, three-year regulatory 
review.

DATES: This rule is effective on November 29, 2012.

FOR FURTHER INFORMATION CONTACT:  Frank Kressman, Associate General 
Counsel, or Justin Anderson, Staff Attorney, Office of General Counsel, 
(703) 518-6556, National Credit Union Administration, 1775 Duke Street, 
Alexandria, Virginia 22314.

SUPPLEMENTARY INFORMATION: 

I. Background
II. Regulatory Amendments
III. Regulatory Procedures

I. Background

Why Is NCUA issuing this rule?

    The Dodd-Frank Act, among other things, transferred rulemaking 
authority for many consumer protection regulations from the Federal 
Reserve Board (FRB) to the Consumer Financial Protection Bureau 
(CFPB).\1\ This transfer required that these regulations be renumbered, 
which in turn made certain citations in NCUA's regulations inaccurate. 
The Dodd-Frank Act also transferred rulemaking authority related to the 
Alternative Mortgage Transaction Parity Act (AMTPA) \2\ for state-
chartered credit unions from NCUA to the CFPB.\3\
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    \1\ Public Law 111-203, sec. 1061.
    \2\ 12 U.S.C. 3801 et seq.
    \3\ Public Law 111-203, sec. 1083.
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    In addition, the Board is taking this opportunity to make 
amendments, unrelated to the Dodd-Frank Act, based on its rolling, 
three-year review of NCUA's regulations. The Board reviews one-third of 
its regulations each year to ``update, clarify and simplify existing 
regulations and eliminate redundant and unnecessary provisions.'' \4\ 
Through this process, NCUA has identified an incorrect citation in 
Appendix B to part 707 and outdated or unnecessary requirements in 
NCUA's security and records preservation program requirements in parts 
748 and 749.
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    \4\ NCUA Interpretive Ruling and Policy Statement (IRPS) 87-2, 
as amended by IRPS 03-02, ``Developing and Reviewing Government 
Regulations.''
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    Accordingly, this rule updates citation references to former FRB 
rules in parts 701, 707, and 714, and removes the reference to AMPTA in 
Sec.  701.21(a). The rule also makes technical amendments to parts 707, 
748, and 749. The Board is issuing these amendments as a final rule 
because they are technical in nature and some changes are statutorily 
mandated by the Dodd-Frank Act.

II. Regulatory Amendments

1. Parts 701, 707, and 714--Updated Citations to CFPB Regulations

    This rule updates citations to CFPB regulations in parts 701, 707, 
and 714. Specifically, in part 701, the Board is amending citations to 
Regulation B.\5\ Similarly, the Board is amending citations in part 707 
and in the appendices to part 707 to Regulations E, Z, and DD.\6\ In 
part 707, the Board is clarifying references to the FRB's Regulation 
D,\7\ as the Dodd-Frank Act created a separate Regulation D under the 
purview of the CFPB.\8\ Finally, in part 714, the Board is amending the 
citation to Regulation M.\9\
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    \5\ 12 CFR part 1002.
    \6\ 12 CFR parts 1005, 1026, and 1030.
    \7\ 12 CFR part 204.
    \8\ 12 CFR part 1004.
    \9\ 12 CFR part 1013.
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2. Section 701.21--AMTPA

    This rule removes the reference to AMTPA in section 701.21(a) as 
required by section 1083 of the Dodd-Frank Act.\10\ This reference 
authorized state-chartered credit unions to follow NCUA's lending 
regulations for alternative mortgage transactions. Based on the Dodd-
Frank Act amendments, state-chartered credit unions must now follow the 
CFPB's Regulation D for alternative mortgage transactions.\11\ 
Accordingly, the Board is removing the reference to AMTPA in Sec.  
701.21(a).
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    \10\ Public Law 111-203, sec. 1083.
    \11\ 71 FR 44226 (July 22, 2011).
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3. Part 707, Appendix B

    The rule amends an incorrect citation to the FRB's Regulation D in 
the note to sample form B-5.

4. Part 748, Appendix A

    Part 748 requires a federally insured credit union to develop a 
written security program and also sets forth Bank Secrecy Act 
compliance programs and procedures. In 2001, the Board amended part 748 
and issued Appendix A to part 748, Guidelines for Safeguarding Member 
Information, to fulfill a requirement in section 501(b) of the Gramm-
Leach-Bliley Act (GLBA).\12\ The GLBA directed financial institution 
regulators, including NCUA, and several other government agencies to 
consult and coordinate with each other to prescribe consistent and 
comparable regulations to establish standards for financial 
institutions relating to certain administrative, technical, and 
physical safeguards of member records and information.\13\
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    \12\ 66 FR 8161 (Jan. 20, 2001).
    \13\ 15 U.S.C. 6801(b), 6804, 6805.
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    Included in the 2001 amendments was section III(G) of Appendix A to 
part 748, which set forth the schedule for implementing Appendix A. All 
of the dates in the schedule expired at least six years ago. 
Accordingly, the Board is removing that section of Appendix A to part 
748 as the implementation schedule is no longer necessary or helpful to 
credit unions.

5. Part 749, Appendix A

    Part 749 sets out the procedures that federally insured credit 
unions must follow for records preservation and retention. Section 
E(1)(c) of Appendix A to part 749 states that credit unions should 
permanently retain all current manuals, circular letters, and other 
official instructions of a permanent

[[Page 71084]]

character received from NCUA and other governmental agencies. This 
requirement has become outdated. All publications noted in this section 
are maintained electronically on NCUA's Web site and other governmental 
agencies' Web sites or are otherwise available to credit unions. 
Accordingly, the Board is removing this section, which will help reduce 
the burden and cost on credit unions for the storage and retention of 
these items.

III. Regulatory Procedures

Final Rule

    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 amendments in this rule are non-
substantive and technical. They make minor changes, some of which are 
statutorily required by the Dodd-Frank Act. The APA permits an agency 
to forego the notice and comment period under certain circumstances, 
such as when a rulemaking is technical and non-substantive. NCUA finds 
good cause that notice and public comment are unnecessary under section 
553(b)(3)(B) of the APA.\14\ NCUA also finds good cause to dispense 
with the 30-day delayed effective date requirement under section 
553(d)(3) of the APA.\15\ The rule will, therefore, be effective 
immediately upon publication.
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    \14\ 5 U.S.C. 553(b)(3)(B).
    \15\ 5 U.S.C. 553(d)(3).
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Regulatory Flexibility Act

    The Regulatory Flexibility Act requires NCUA to prepare an analysis 
on any significant economic impact any regulation may have on a 
substantial number of small entities (primarily those under $10 million 
in assets).\16\ NCUA has determined that these technical amendments 
will not have a significant economic impact on a substantial number of 
small credit unions.
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    \16\ 5 U.S.C. 603(a).
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Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in 
which an agency by rule creates a new paperwork burden on regulated 
entities or modifies an existing burden.\17\ For purposes of the PRA, a 
paperwork burden may take the form of either a reporting or a 
recordkeeping requirement, both referred to as information collections. 
These technical corrections do not impose any paperwork burden.
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    \17\ 44 U.S.C. 3507(d); 5 CFR part 1320.
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Executive Order 13132

    Executive Order 13132 encourages independent regulatory agencies to 
consider the impact of their actions on state and local interests. 
NCUA, an independent regulatory agency as defined in 44 U.S.C. 3502(5), 
voluntarily complies with the Executive Order to adhere to fundamental 
federalism principles. This rule would not have a 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 because it 
simply makes technical corrections to existing regulations. NCUA has 
determined this 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 rule would not affect family well-
being within the meaning of section 654 of the Treasury and General 
Government Appropriations Act of 1999.\18\
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    \18\ Public Law 105-277, 112 Stat. 2681 (1998).
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The Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 
104-121)

    The Small Business Regulatory Enforcement Fairness Act of 1996 
(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.\19\ The Office of 
Management and Budget has determined that this rule is not a ``major 
rule'' within the meaning of SBREFA.
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    \19\ 5 U.S.C. 551.
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List of Subjects

12 CFR Part 701

    Credit unions, Mortgages.

12 CFR Part 707

    Advertising, Credit unions, Reporting and recordkeeping 
requirements, Truth in savings.

12 CFR Part 714

    Credit unions, Leasing.

12 CFR Part 748

    Credit unions, Reporting and recordkeeping requirements, Security 
measures.

12 CFR Part 749

    Credit unions, Reporting and recordkeeping requirements.

    By the National Credit Union Administration Board on November 
19, 2012.
Mary F. Rupp,
Secretary of the Board.

    For the reasons stated above, NCUA amends 12 CFR parts 701, 707, 
714, 748, and 749 as follows:

PART 701--ORGANIZATION AND OPERATIONS OF FEDERAL CREDIT UNIONS

0
1. The authority citation for part 701 continues to read as follows:

    Authority:  12 U.S.C. 1752(5), 1755, 1756, 1757, 1758, 1759, 
1761A, 1761B, 1766, 1767, 1782, 1784, 1786, 1787, 1789, Section 
701.6 is also authorized by 15 U.S.C. 1601 et seq., 42 U.S.C. 1981 
and 3601-3610, Section 701.35 is also authorized by 42 U.S.C. 4311-
4312.


0
2. In Sec.  701.21, revise the fifth sentence of paragraph (a) to read 
as follows:


Sec.  701.21  Loans to members and lines of credit to members.

    (a) * * * Also, while Sec.  701.21 generally applies to Federal 
credit unions only, certain provisions apply to loans made by federally 
insured, state-chartered credit unions as specified in Sec.  741.203 of 
this chapter. * * *
* * * * *


Sec.  701.31  [Amended]

0
3. In Sec.  701.31, amend paragraph (a)(1) by removing ``12 CFR 
202.2(f)'' and adding in its place ``12 CFR 1002.2(f)''.

PART 707--TRUTH IN SAVINGS

0
4. The authority citation for part 707 continues to read as follows:

    Authority:  12 U.S.C. 4311.


Sec.  707.3  [Amended]

0
5. In Sec.  707.3, amend paragraph (c) in two places by removing ``12 
CFR part 205'' and adding in its place ``12 CFR part 1005''.


Sec.  707.11  [Amended]

0
6. Amend Sec.  707.11 in paragraphs (b)(2)(i) and (c) by removing 
``part 226'' and adding in its place ``part 1026''.

Appendix B to Part 707 [Amended]

0
7. Amend appendix B to part 707 as follows:
0
a. In the fourth sentence of the third paragraph of the General Note by 
removing the phrase ``as did the FRB'' and adding in its place the 
phrase ``as articulated'';
0
b. In model clause B-1, first note to section (H), by adding the words 
``the

[[Page 71085]]

Federal Reserve Board's'' between the words ``to'' and ``Regulation.''; 
and
0
c. In the note to sample form B-5 by removing ``12 CFR 202.4(c)(2)'' 
and adding in its place ``12 CFR 204.2(c)(2)''.

Appendix C to Part 707 [Amended]

0
8. Amend appendix C to part 707 as follows:
0
a. In the entry for section 707.2, under ``(a),'' paragraph 5 v by 
removing ``12 CFR 230.2(u)'' and adding in its place ``12 CFR 
1030.2(u)'' and adding to the last sentence the words ``Federal Reserve 
Board's'' between the words ``in'' and ``Regulation D'';
0
b. In the entry for section 707.2, under ``(s),'' paragraph 1 by 
removing ``12 CFR 205.2(j)'' and adding in its place ``12 CFR 
1005.2(k)'';
0
c. In the entry for section 707.2, under ``(x),'' paragraph 1 heading 
by adding the words ``the Federal Reserve Board's'' before the words 
``Regulation D'' and adding in the first sentence of this section the 
words ``The Federal Reserve Board's'' before the words ``Regulation D 
permits,'';
0
d. in the entry for section 707.3, under ``(c),'' paragraph 1 
introductory text by removing ``12 CFR part 205'' and adding in its 
place ``12 CFR part 1005'';
0
e. In the entry for section 707.3, under ``(c),'' paragraph 1 ii by 
removing ``12 CFR 205.7'' and adding in its place ``12 CFR 1005.7'';
0
f. In the entry for section 707.4, under ``(b)(4),'' paragraph 5 by 
removing ``12 CFR 205.7'' and adding in its place ``12 CFR 1005.7'';
0
g. In the entry for section 707.6, under ``(a),'' paragraph 2 by 
removing ``12 CFR 205.9'' and adding in its place ``12 CFR 1005.9'';
0
h. In the entry for section 707.8, under ``(a),'' paragraph 10 i by 
removing ``12 CFR part 226'' and adding in its place ``12 CFR part 
1026'';
0
i. In the entry for section 707.11, under ``(a)(1),'' paragraph 1 1 i 
by removing ``12 CFR part 226'' and adding in its place ``12 CFR part 
1026'';
0
j. In the entry for section 707.11, under ``(a)(1),'' paragraph 2 by 
removing the words ``the Federal Reserve Board's'' and removing ``12 
CFR part 226'' and adding in its place ``12 CFR part 1026'';
0
k. In the entry for section 707.11, under ``(b),'' paragraph 1 i by 
removing ``12 CFR part 226'' and adding in its place ``12 CFR part 
1026'';
0
l. In the entry for section 707.11, under ``(b)'' paragraph 4 by 
removing ``12 CFR part 226'' and adding in its place ``12 CFR part 
1026'';
0
m. In the entry for section 707.11, under ``(c),'' paragraph 1 by 
removing the words ``part 226'' and adding in its place the words 
``part 1026''; and
0
n. In the entry for section 707.11, under ``(c),'' by removing in two 
places in paragraph 3 ``12 CFR part 226'' and adding in its place ``12 
CFR part 1026'' and by removing in two place in paragraph 3 the phrase 
``the Federal Reserve Board's'' before the words ``Regulation Z''.

PART 714--LEASING

0
9. The authority citation for part 714 continues to read as follows:

    Authority:  12 U.S.C. 1756, 1757, 1766, 1785, 1789.


Sec.  714.10  [Amended]

0
10. Amend Sec.  714.10 by removing ``12 CFR part 213'' and adding in 
its place ``12 CFR part 1013''.

PART 748--SECURITY PROGRAM, REPORT OF SUSPECTED CRIMES, SUSPICIOUS 
TRANSACTIONS, CATASTROPHIC ACTS AND BANK SECRECY ACT COMPLIANCE

0
11. The authority citation for part 748 is revised to read as follows:

    Authority:  12 U.S.C. 1766(a), 1786(q); 15 U.S.C. 6801-6809; 31 
U.S.C. 5311 and 5318.

Appendix A to Part 748 [Amended]

0
12. Amend appendix A to part 748 by removing paragraph III.G.

PART 749--RECORDS PRESERVATION PROGRAM AND APPENDICES--RECORD 
RETENTION GUIDELINES; CATASTROPHIC ACT PREPAREDNESS GUIDELINES

0
13. The authority citation for part 749 continues to read as follows:

    Authority:  12 U.S.C. 1766, 1783, and 1789; 15 U.S.C. 7001(d).

Appendix A to Part 749 [Amended]

0
14. Amend appendix A to part 749 by removing paragraph E.1.(c).

[FR Doc. 2012-28666 Filed 11-28-12; 8:45 am]
BILLING CODE 7535-01-P