[Federal Register: October 1, 2008 (Volume 73, Number 191)]
[Rules and Regulations]
[Page 56935-56936]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01oc08-1]
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Rules and Regulations
Federal Register
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[[Page 56935]]
NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 740
RIN 3133-AD45
The Official Advertising Statement
AGENCY: National Credit Union Administration (NCUA).
ACTION: Final rule.
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SUMMARY: NCUA is revising the requirements for use of the official
insurance sign and official advertising statement to permit insured
credit unions to use the basic form of the official advertising
statement, a shortened form, or the official sign in advertisements.
The rule will give credit unions added flexibility in advertisements by
allowing them to use the shortened form or the official insurance sign
in advertisements as alternatives to the basic official advertising
statement.
DATES: This rule is effective October 31, 2008.
FOR FURTHER INFORMATION CONTACT: Moisette I. Green, Staff Attorney,
Office of General Counsel, National Credit Union Administration, 1775
Duke Street, Alexandria, Virginia 22314-3428, or telephone: (703) 518-
6540.
SUPPLEMENTARY INFORMATION: In April 2008, NCUA proposed an amendment
revising the requirements for use of the official insurance sign and
official advertising statement to permit insured credit unions to use
the basic form of the official advertising statement, a shortened form,
or the official sign in advertisements. 73 FR 22839 (April 28, 2008).
Additionally, the proposed amendment clarified the font of the text in
the official sign may be altered to ensure it is legible when it is
used as the official advertising statement. The proposal resulted from
NCUA's 2007 regulatory review, and was identified to provide insured
credit unions greater flexibility in how they meet the requirement of
giving notice of their insured status.
The Federal Credit Union Act (Act) requires insured credit unions
to display signs at their places of business indicating accounts are
insured and also to include in all advertisements a statement to the
effect that accounts are insured. 12 U.S.C. 1785(a). The Act authorizes
the NCUA Board to promulgate regulations governing the substance of the
official insurance sign and the manner it is displayed or used and,
also, to address the practicality of including the official statement
on insured status in advertisements. Id. NCUA implements this authority
in part 740 of its regulations and, in Sec. 740.5, NCUA requires
insured credit unions to include the official advertising statement in
all advertisements, including on their main internet pages, with
certain exceptions.
NCUA received a total of eight comments on the proposed rule from
credit unions and trade associations. All the commenters supported the
rule. On September 10, 2008, NCUA received notice that one comment
letter submitted via the Federal eRulemaking Portal regarding this
rulemaking had not been forwarded to NCUA. This was due to a minor
software problem that has been corrected.\1\ The comment period for
this rule closed on June 27, 2008. As noted above, all eight comment
letters NCUA received fully supported the amendments and the Board
believes, given the identity of these commenters, which includes major
credit union trade associations and individual credit unions, that
these comment letters broadly and fairly represent the views of
interested parties.
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\1\ The interagency ``eRulemaking Program'' launched the Web
site http://www.regulations.gov in January 2003 to provide access
and an opportunity to comment on all proposed federal regulations at
one online portal. NCUA's understanding is that the software problem
has been corrected and safeguards are now in place to ensure this
error will not occur for future proposed rules. Questions about this
matter may be directed to John Moses, Chief, eRulemaking Program
Branch, Environmental Protection Agency, 1200 Pennsylvania Ave.,
NW., Washington, DC 20460, 202/566-1352, Moses.John@epamail.epa.gov.
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The Board believes it is appropriate and fair in these
circumstances to proceed with the final rule rather than delay
implementation. This rule creates no burden for FCUs, but merely
provides an alternative for insured credit unions to meet the
advertising requirement regarding the existence of federal account
insurance. For these reasons, the Board concludes there is no need to
reopen the comment period and the interest of the public and FCUs is
served by proceeding with the final rule.
One commenter suggested NCUA further condense the advertising
statement and permit credit unions to use a brief statement such as,
``NCUA Insured'' or ``Insured by NCUA.'' Credit unions may use the
shortened version of the official advertising statement, which is
``Federally insured by NCUA.'' Keeping the word ``federally'' in the
shortened version ensures those who may not be familiar with credit
unions, NCUA, or the National Credit Union Share Insurance Fund receive
notice that member shares are backed by the full faith and credit of
the United States government, especially when the shortened statement
is used alone.
Accordingly, NCUA adopts the proposed rule, published at 73 FR
22839 (April 28, 2008), as a final rule.
Regulatory Procedures
Regulatory Flexibility Act
The Regulatory Flexibility Act requires NCUA to prepare an analysis
to describe any significant economic impact any regulation may have on
a substantial number of small credit unions (those under $10 million in
assets). The final amendment merely expands the options credit unions
have to comply with the requirement to notify members and the public of
their insured status in advertisements. Accordingly, the NCUA has
determined and certifies that the final rule will not have a
significant economic impact on a substantial number of small credit
unions within the meaning of the Regulatory Flexibility Act, 5 U.S.C.
601-612.
Small Business Regulatory Enforcement Fairness Act
The Small Business Regulatory Enforcement Fairness Act (SBREFA) of
1996, Public Law 104-121, provides generally for congressional review
of agency rules. A reporting requirement is triggered in instances
where NCUA issues a final rule as defined by Section 551 of the
Administrative Procedures Act. 5 U.S.C. 551. The Office of Information
and Regulatory Affairs, an
[[Page 56936]]
office within OMB, has determined that, for purposes of SBREFA, this is
not a major rule.
Paperwork Reduction Act
The final rule does not contain a ``collection of information''
within the meaning of section 3502(3) of the Paperwork Reduction Act of
1995, 44 U.S.C. 3502(3), and would not increase paperwork requirements
under the Paperwork Reduction Act of 1995 or regulations of the Office
of Management and Budget.
Executive Order 13132
Executive Order 13132 encourages independent regulatory agencies to
consider the impact of their actions on state and local interests. In
adherence to fundamental federalism principles, NCUA, an independent
regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies
with the executive order. The final rule would not have substantial
direct effect on the states, on the connection between the national
government and the states, or on the distribution of power and
responsibilities among the various levels of government. NCUA has
determined that this final rule does not constitute a policy that has
federalism implications for purposes of the executive order.
The Treasury and General Government Appropriations Act, 1999--
Assessment of Federal Regulations and Policies on Families
NCUA has determined that this final rule would not affect family
well-being within the meaning of section 654 of the Treasury and
General Government Appropriations Act, 1999, Public Law 105-277, 112
Stat. 2681 (1998).
List of Subjects in 12 CFR Part 740
Advertisements, Credit unions, Signs and symbols.
By the National Credit Union Administration Board on September
25, 2008.
Mary F. Rupp,
Secretary of the Board.
0
For the reasons stated above, NCUA amends 12 CFR part 740 as follows:
PART 740--ACCURACY OF ADVERTISING AND NOTICE OF INSURED STATUS
0
1. The authority citation for part 740 is revised to read as follows:
Authority: 12 U.S.C. 1766, 1781, 1785, and 1789.
0
2. Amend Sec. 740.5 by revising paragraph (b) to read as follows:
Sec. 740.5 Requirements for the official advertising statement.
* * * * *
(b) The official advertising statement is in substance as follows:
``This credit union is federally insured by the National Credit Union
Administration.'' Insured credit unions, at their option, may use the
short title ``Federally insured by NCUA'' or a reproduction of the
official sign, as described in Sec. 740.4(b), as the official
advertising statement. The official advertising statement must be in a
size and print that is clearly legible. If the official sign is used as
the official advertising statement, an insured credit union may alter
the font size to ensure its legibility as provided in Sec.
740.4(b)(2).
* * * * *
[FR Doc. E8-23071 Filed 9-30-08; 8:45 am]
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