[Unified Agenda of Federal Regulatory and Deregulatory Actions]
[National Credit Union Administration Semiannual Regulatory Agenda]
[From the U.S. Government Printing Office, www.gpo.gov]



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Part LVII



National Credit Union Administration



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Semiannual Regulatory Agenda

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NATIONAL CREDIT UNION ADMINISTRATION (NCUA)                            


  



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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Ch. VII

Semiannual Agenda of Regulations

AGENCY: National Credit Union Administration (NCUA).

ACTION: Semiannual regulatory agenda.

_______________________________________________________________________

SUMMARY: Pursuant to its ongoing policy of reviewing regulations, NCUA 
is publishing a list of current and projected rulemakings, reviews of 
existing regulations, and completed actions as of January 31, 1997. 
NCUA will also include this agenda in the Unified Agenda of Federal 
Regulatory and Deregulatory Actions.

DATES: This information is current as of January 31, 1997.

ADDRESSES: National Credit Union Administration, 1775 Duke Street, 
Alexandria, Virginia 22314-3428.

FOR FURTHER INFORMATION CONTACT: For each regulation listed, the 
person(s) named in the listing at the above address, unless otherwise 
noted, or listed telephone number.

SUPPLEMENTARY INFORMATION: The purpose of this agenda is to enable 
credit unions and the public to follow regulatory development and 
review at NCUA and to enable interested parties to more effectively 
participate in that process. The agenda is divided into three parts: 
(1) Actions completed since the last agenda; (2) actions proposed but 
not completed; and (3) actions planned but not yet proposed by the NCUA 
Board.

    The agenda is published pursuant to NCUA Interpretive Ruling 
and Policy Statement Number 87-2 (``Developing and Reviewing 
Government Regulations,'' 54 FR 35231; September 18, 1987). 
Executive Order 12866, signed by President Clinton on September 30, 
1993, now requires independent executive agencies such as NCUA to 
publish a regulatory agenda. This agenda will be included in the 
Office of Management and Budget's next publication of its Unified 
Agenda of Federal Regulatory and Deregulatory Actions.

Approved by the NCUA Board on February 20, 1997.

Becky Baker,

Secretary of the Board.

                                                  Prerule Stage                                                 
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                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
----------------------------------------------------------------------------------------------------------------
4212        Member Business Loans.................................................................    3133-AB91 
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                                               Proposed Rule Stage                                              
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                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
----------------------------------------------------------------------------------------------------------------
4213        Credit Union Service Contracts/Correspondent Services/Credit Union Service                          
            Organizations.........................................................................    3133-AA95 
4214        Golden Parachute and Indemnification Payments.........................................    3133-AB28 
4215        FCU Ownership of Fixed Assets.........................................................    3133-AB90 
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                                                Final Rule Stage                                                
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                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
----------------------------------------------------------------------------------------------------------------
4216        Corporate Credit Unions...............................................................    3133-AB67 
4217        Investment and Deposit Activities.....................................................    3133-AB73 
4218        Corporate Credit Unions...............................................................    3133-AB88 
4219        Employee Benefits, Trust and Custodial Services, and Medical Savings Accounts.........    3133-AB89 
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                                                Long-Term Actions                                               
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                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
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4220        Production of NCUA Records and Testimony of NCUA Employees in Private Legal                         
            Proceedings...........................................................................    3133-AB87 
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                                                Completed Actions                                               
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                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
----------------------------------------------------------------------------------------------------------------
4221        Part 708--Mergers of Federally Insured Credit Unions; Voluntary Termination or                      
            Conversion of Insured Status..........................................................    3133-AB70 
4222        Part 705--Community Development Revolving Loan Program for Credit Unions..............    3133-AB71 
4223        Organization and Operations of Federal Credit Unions..................................    3133-AB84 
4224        Requirements for Insurance............................................................    3133-AB85 
4225        Management Official Interlocks........................................................    3133-AB86 
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NATIONAL CREDIT UNION ADMINISTRATION (NCUA)               Prerule Stage


  



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4212.  MEMBER BUSINESS LOANS

Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 1752(5); 12 USC 1755; 12 USC 1756; 12 USC 
1757; 12 USC 1759; 12 USC 1761a; 12 USC 1761b; 12 USC 1766; 12 USC 
1767; 12 USC 1782; 12 USC 1787; 12 USC 1789

CFR Citation:  12 CFR 701.21(h)

Legal Deadline: None

Abstract: NCUA will propose to amend the business loan regulation. The 
proposed amendments will reduce regulatory burden by reducing paperwork 
requirements and permitting additional transactions to be exempt from 
the regulation's requirements. The Board will also propose some 
technical amendments to ease regulatory burden.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

ANPRM                           04/00/97

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Michael J. McKenna, Staff Attorney, National Credit 
Union Administration, 1775 Duke Street, Alexandria, VA 22314
Phone: 703 518-6540
Fax: 703 518-6569

RIN: 3133-AB91
_______________________________________________________________________


NATIONAL CREDIT UNION ADMINISTRATION (NCUA)         Proposed Rule Stage


  



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4213. CREDIT UNION SERVICE CONTRACTS/CORRESPONDENT SERVICES/CREDIT UNION 
SERVICE ORGANIZATIONS

Priority:  Info./Admin./Other

Legal Authority:  12 USC 1766; 12 USC 1789

CFR Citation:  12 CFR 701.26; 12 CFR 701.27

Legal Deadline: None

Abstract: The proposed rule clarifies the limits on the authority for 
an FCU to provide services and activities to other credit unions. In 
response to comments, staff is preparing a proposed revision which 
would permit, and set safety and soundness standards for, correspondent 
credit union services between credit unions, as well as address the 
issues of shared branching and request comments for other related 
issues.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

ANPRM                           11/15/89                    54 FR 48110
ANPRM Comment Period End        02/20/90
NPRM                            12/00/97

Small Entities Affected: None

Government Levels Affected: Undetermined

Agency Contact: Martin S. Conrey, Staff Attorney, Office of General 
Counsel, National Credit Union Administration, 1775 Duke Street, 
Alexandria, VA 22314-3428
Phone: 703 518-6540
Fax: 703 518-6569

RIN: 3133-AA95
_______________________________________________________________________




4214. GOLDEN PARACHUTE AND INDEMNIFICATION PAYMENTS

Priority:  Info./Admin./Other

Legal Authority:  12 USC 1786(t)

CFR Citation:  12 CFR 701.34

Legal Deadline: None

Abstract: The Crime Control Act of 1990 amended the Federal Credit 
Union Act to strictly limit the use of golden parachute payments and 
indemnification by credit unions. NCUA staff is considering whether 
proposed rules are necessary to implement this statutory amendment.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            12/00/97

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Allan Meltzer, Associate General Counsel, Office of 
General Counsel, National Credit Union Administration, 1775 Duke 
Street, Alexandria, VA 22314-3428
Phone: 703 518-6540

RIN: 3133-AB28
_______________________________________________________________________




4215.  FCU OWNERSHIP OF FIXED ASSETS

Priority:  Info./Admin./Other

Reinventing Government: This rulemaking is part of the Reinventing 
Government effort. It will revise text in the CFR to reduce burden or

[[Page 22706]]

duplication, or streamline requirements.

Legal Authority:  12 USC 1754(4)

CFR Citation:  12 CFR 701.36

Legal Deadline: None

Abstract: The current rule establishes specific limitations on an FCU's 
investment in fixed assets at five percent of shares and retained 
earnings when an FCU's assets exceed $1 million. The proposal 
anticipates using a new fixed asset threshold based on FCU net capital. 
In addition fixed asset waiver requests would need to be more fully 
documented than at present.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            07/00/97

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Martin Conrey, Staff Attorney, National Credit Union 
Administration, 1775 Duke Street, Alexandria, VA 22314-3428
Phone: 703 518-6540
Fax: 703 518-6569

RIN: 3133-AB90
_______________________________________________________________________


NATIONAL CREDIT UNION ADMINISTRATION (NCUA)            Final Rule Stage


  



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4216. CORPORATE CREDIT UNIONS

Priority:  Info./Admin./Other

Legal Authority:  12 USC 1766; 12 USC 1789

CFR Citation:  12 CFR 704.19

Legal Deadline: None

Abstract: The proposed rule would amend the regulations on corporate 
credit unions by adding a new section governing wholesale corporate 
credit unions.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            07/23/96                    61 FR 38117
NPRM Comment Period End         09/03/96
Final Action                    05/00/97

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Robert Schafer, Director, Office of Corporate Credit 
Unions, National Credit Union Administration, 1775 Duke Street, 
Alexandria, VA 22314-3428
Phone: 703 518-6640
Fax: 703 518-6439

RIN: 3133-AB67
_______________________________________________________________________




4217. INVESTMENT AND DEPOSIT ACTIVITIES

Priority:  Info./Admin./Other

Legal Authority:  12 USC 1757(7); 12 USC 1757(8); 12 USC 1757(15); 12 
USC 1757(17); 12 USC 1766(a); 12 USC 1789(ii)

CFR Citation:  12 CFR 703

Legal Deadline: None

Abstract: The proposed regulation clarifies a number of areas, adds 
restrictions on some securities which have been determined to be too 
risky for credit unions, broadens authority in certain areas, and 
requires that a credit union's staff and board of directors fully 
understand the potential risk characteristics of its investment 
options.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            11/29/95                    60 FR 61219
NPRM Comment Period End         03/28/96
NPRM Comment Period Extended    08/12/96                    61 FR 41750
NPRM Comment Period Extended to 11/18/96
Final Action                    04/00/97

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Kimberly Iverson, Program Officer, Office of 
Examination and Insurance, National Credit Union Administration, 1775 
Duke Street, Alexandria, VA 22314-3428
Phone: 703 518-6360
Fax: 703 518-6499

RIN: 3133-AB73
_______________________________________________________________________




4218.  CORPORATE CREDIT UNIONS

Priority:  Info./Admin./Other

Legal Authority:  12 USC 1762; 12 USC 1766(a); 12 USC 1781; 12 USC 1789

CFR Citation:  12 CFR 704

Legal Deadline: None

Abstract: The proposed rule is a major revision of the current rule and 
is intended to strengthen corporate credit union capital and ensure 
that the risk on corporate credit union balance sheets is adequately 
controlled.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            06/04/96                    61 FR 28085
NPRM Comment Period End         10/18/96                    61 FR 41750
Final Action                    05/00/97

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Robert F. Schafer, Director, Office of Corporate Credit 
Unions, National Credit Union Administration, 1775 Duke Street, 
Alexandria, VA 22314-3428
Phone: 703 518-6640
Fax: 703 518-6439

RIN: 3133-AB88
_______________________________________________________________________




4219.  EMPLOYEE BENEFITS, TRUST AND CUSTODIAL SERVICES, AND 
MEDICAL SAVINGS ACCOUNTS

Priority:  Info./Admin./Other

Legal Authority:  12 USC 1752(5); 12 USC 1756; 12 USC 1757; 12 USC 
1759; 12 USC 1766; 12 USC 1781; 12 USC 1782; 12 USC 1784; 12 USC 1787; 
12 USC 1789; 26 USC 220; 26 USC 401(a) and (k); 26 USC 408; 26 USC 457

CFR Citation:  12 CFR 701.19; 12 CFR 724.1; 12 CFR 745.9-4

Legal Deadline: None

Abstract: The proposal would implement changes made by The Small 
Business Job Protection Act of 1996 and the Health Insurance 
Portability and Accountability Act of 1996. The proposal would clarify 
the ability of FCUs to offer 401(k), Savings Incentive Match Plan for 
Employees (SIMPLE), and other retirement plan benefits to employees. In 
addition, the proposal will clarify that Federally insured credit 
unions may accept medical savings accounts on behalf of members. An 
interim final rule is anticipated since the 1996 acts are already in 
effect.

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Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Interim Final Rule              05/00/97

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Martin Conrey, Staff Attorney, National Credit Union 
Administration, 1775 Duke Street, Alexandria, VA 22314
Phone: 703 518-6540
Fax: 703 518-6569

RIN: 3133-AB89
_______________________________________________________________________


NATIONAL CREDIT UNION ADMINISTRATION (NCUA)           Long-Term Actions


  



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4220.  PRODUCTION OF NCUA RECORDS AND TESTIMONY OF NCUA 
EMPLOYEES IN PRIVATE LEGAL PROCEEDINGS

Priority:  Info./Admin./Other

Legal Authority:  12 USC 1766; 12 USC 1787; 12 USC 1789; 12 USC 1795(f)

CFR Citation:  12 CFR 792

Legal Deadline: None

Abstract: NCUA will propose a regulation that will provide the required 
procedures and information concerning requests for agency records and 
the testimony of agency employees in private legal proceedings. The 
regulation will prohibit release of agency records or the testimony of 
agency employees except as provided by the regulation.

Timetable: Next Action Undetermined

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Allan Meltzer, Associate General Counsel, National 
Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-
3428
Phone: 703 518-6540
Fax: 703 518-6569

RIN: 3133-AB87
_______________________________________________________________________


NATIONAL CREDIT UNION ADMINISTRATION (NCUA)           Completed Actions


  



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4221. PART 708--MERGERS OF FEDERALLY INSURED CREDIT UNIONS; VOLUNTARY 
TERMINATION OR CONVERSION OF INSURED STATUS

Priority:  Info./Admin./Other

Legal Authority:  12 USC 1785(c)

CFR Citation:  12 CFR 708

Legal Deadline: None

Abstract: The NCUA Board will propose that proposed merger plans 
address the six statutory criteria contained in section 205(c) of the 
Federal Credit Union Act which the Board is required to consider before 
granting or withholding approval of a proposed merger involving at 
least one federally insured credit union.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Withdrawn - No Change Required 
at This Time                    12/31/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Michael J. McKenna, Staff Attorney, National Credit 
Union Administration, 1775 Duke Street, Alexandria, VA 22314-3428
Phone: 703 518-6540
Fax: 703 518-6569

RIN: 3133-AB70
_______________________________________________________________________




4222. PART 705--COMMUNITY DEVELOPMENT REVOLVING LOAN PROGRAM FOR CREDIT 
UNIONS

Priority:  Info./Admin./Other

Legal Authority:  PL 97-35; 42 USC 9822; PL 101-144; 12 USC 1766(k)

CFR Citation:  12 CFR 705

Legal Deadline: None

Abstract: The final amendments eliminate the limits on technical 
assistance that may be provided per year to participating credit 
unions; clarify that student credit unions may not participate in the 
program; clarify that credit unions may aggregate at any one time; and 
require additional documentation from nonfederally insured credit 
unions that may wish to participate in the program.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            01/25/96                     61 FR 4238
NPRM Comment Period End         04/05/96
Final Action                    09/27/96                    61 FR 50694

Small Entities Affected: Organizations

Government Levels Affected: None

Agency Contact: Michael J. McKenna, Staff Attorney, National Credit 
Union Administration, 1775 Duke Street, Alexandria, VA 22314-3428
Phone: 703 518-6540
Fax: 703 518-6569

RIN: 3133-AB71
_______________________________________________________________________




4223. ORGANIZATION AND OPERATIONS OF FEDERAL CREDIT UNIONS

Priority:  Info./Admin./Other

Legal Authority:  12 USC 1752(5); 12 USC 1755; 12 USC 1756; 12 USC 
1757; 12 USC 1759; 12 USC 1761a; 12 USC 1761b; 12 USC 1766; 12 USC 
1767; 12 USC 1782; 12 USC 1784; 12 USC 1787; 12 USC 1789; PL 101-73

CFR Citation:  12 CFR 701; 12 CFR 709; 12 CFR 741

Legal Deadline: None

Abstract: This final rule allows credit unions serving predominantly 
low-income members (LICU) to raise secondary capital from foundations 
and other philanthropic-minded institutional investors. The rule 
enables LICUs to make more loans and improve other financial services 
for the groups and communities they serve. The rule also allows 
Federal- and State-chartered LICUs to offer secondary capital accounts 
and incorporates the existing regulatory provisions concerning the 
designation of low-income status. The rule also amends NCUA's 
regulations so that secondary capital accounts are

[[Page 22708]]

last in payout priorities in the event of an involuntary liquidation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Interim Final Rule Effective    01/25/96
Interim Final Rule              02/02/96                     61 FR 3788
Interim Final Rule Comment 
Period End                      04/01/96
Final Action                    09/27/96                    61 FR 50696

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Joyce Jackson, Special Assistant, Office of Community 
Development Credit Unions, National Credit Union Administration, 1775 
Duke Street, Alexandria, VA 22314-3428
Phone: 703 518-6610
Fax: 703 518-6439

RIN: 3133-AB84
_______________________________________________________________________




4224. REQUIREMENTS FOR INSURANCE

Priority:  Info./Admin./Other

Legal Authority:  12 USC 1766; 12 USC 1789

CFR Citation:  12 CFR 741.6

Legal Deadline: None

Abstract: The regulation would allow NCUA to assess its cost on 
federally insured credit unions that file late or inaccurate 5300 
reports.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            02/05/96                     61 FR 4237
Withdrawn - No Change Required  10/16/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Herbert S. Yolles, Director, Division of Risk 
Management, Examination and Insurance, National Credit Union 
Administration, 1775 Duke Street, Alexandria, VA 22314-3428
Phone: 703 518-6363

RIN: 3133-AB85
_______________________________________________________________________




4225. MANAGEMENT OFFICIAL INTERLOCKS

Priority:  Info./Admin./Other

Legal Authority:  12 USC 3201 et seq; 12 USC 1757

CFR Citation:  12 CFR 711

Legal Deadline: None

Abstract: NCUA revised its rules regarding management interlocks 
between credit unions and other types of depository institutions. The 
final rule, like the current regulation, does not apply when a credit 
union shares a management official with another credit union. The final 
rule conforms the interlocks rules to recent statutory changes, 
modernizes and clarifies the rules, and reduces unnecessary regulatory 
burdens where feasible, consistent with statutory requirements.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            03/15/96                    61 FR 12043
NPRM Comment Period End         05/24/96
Final Action                    09/27/96                    61 FR 50698

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Kimberly Iverson, Program Officer, Office of 
Examination & Insurance, National Credit Union Administration, 1775 
Duke Street, Alexandria, VA 22314-3428
Phone: 703 518-6375
Fax: 703 518-6499

RIN: 3133-AB86
[FR Doc. 97-5813 Filed 04-24-97; 8:45 am]
BILLING CODE 7535-01-F