[Federal Register: April 28, 2008 (Volume 73, Number 82)]
[Proposed Rules]
[Page 22839-22840]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28ap08-16]
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 740
RIN 3133-AD45
The Official Advertising Statement
AGENCY: National Credit Union Administration (NCUA).
ACTION: Proposed rulemaking.
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SUMMARY: The NCUA Board proposes 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 proposed rule will give credit unions added
flexibility in advertisements. As compared to the current requirement,
credit unions will be able to use the shortened form or the official
insurance sign in advertisements as alternatives to the basic official
advertising statement; under the current rule, credit unions may only
use the shortened form if they also include the official sign.
DATES: Comments must be received on or before June 27, 2008.
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 regcomments@ncua.gov. Include ``[Your
name] Comments on Proposed Part 740'' 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: Moisette I. Green, Staff Attorney,
Office of General Counsel, at the above address or telephone: (703)
518-6540.
SUPPLEMENTARY INFORMATION: NCUA continually reviews its regulations to
``update, clarify and simplify existing regulations and eliminate
redundant and unnecessary provisions.'' NCUA Interpretive Ruling and
Policy Statement (IRPS) 87-2, Developing and Reviewing Government
Regulations. Under IRPS 87-2, NCUA conducts a rolling review of one-
third of its regulations every year, involving both internal review and
public comment. As a part of its 2007 regulatory review, NCUA
identified an improvement for part 740, the regulation governing notice
of insured status, providing 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. The basic form of
the official statement is ``This credit union is federally insured by
the National Credit Union Administration.'' Currently, the regulation
permits shortening the official statement to ``Federally insured by
NCUA'' if used with a reproduction of the official sign in Sec.
740.4(b).
[[Page 22840]]
NCUA proposes to revise Sec. 740.5(b) to permit insured credit
unions to use, in addition to the basic form of the official
advertising statement, the shortened form or the official sign in their
advertisements. In other words, the proposed rule will permit insured
credit unions, in addition to using the official advertising statement
in its advertisements, to use the shortened statement alone or the
official sign alone in advertisements. The flexibility this would
provide is currently available under the Federal Deposit Insurance
Corporation's rule regarding disclosure of insured status in
advertisements. 12 CFR 328.3.
Additionally, the proposed amendment clarifies the font of the text
in the official sign may be altered as described in Sec. 740.4(b)(2)
when it is used as the official advertising statement. 12 CFR
740.4(b)(2).
Regulatory Procedures
Regulatory Flexibility Act
The Regulatory Flexibility Act requires NCUA to prepare an analysis
to describe any significant economic impact any proposed regulation may
have on a substantial number of small credit unions (those under $10
million in assets). The proposed 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 proposed rule, if adopted,
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.
Paperwork Reduction Act
The proposed 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 proposed 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 proposed 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 proposed rule would not affect family
well-being within the meaning of section 654 of the Treasury and
General Government Appropriations Act, 1999, Pub. L. 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 your comments on
whether the proposed amendment is understandable and minimally
intrusive if implemented as proposed.
List of Subjects in 12 CFR Part 740
Advertisements, Credit unions, Signs and symbols.
By the National Credit Union Administration Board on April 17,
2008.
Mary F. Rupp,
Secretary of the Board.
For the reasons set forth above, it is proposed that 12 CFR part
740 be amended as follows:
PART 740--ACCURACY OF ADVERTISING AND NOTICE OF INSURED STATUS
1. The authority citation for part 740 is revised to read as
follows:
Authority: 12 U.S.C. 1766, 1781, 1785, and 1789.
2. Section 740.5 is amended 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 paragraph (b)(2)
of Sec. 740.4.
* * * * *
[FR Doc. E8-8967 Filed 4-25-08; 8:45 am]
BILLING CODE 7535-01-P