[Federal Register Volume 75, Number 246 (Thursday, December 23, 2010)]
[Rules and Regulations]
[Pages 80678-80680]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-32308]
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Parts 708a and 708b
RIN 3133-AD84; 3133-AD85
Conversions of Insured Credit Unions
AGENCY: National Credit Union Administration (NCUA).
ACTION: Interim final rule with request for comments.
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SUMMARY: NCUA is issuing final amendments to revise the definition of
the phrase ``Regional Director'' in NCUA's rule on credit union to
mutual savings bank conversions and to add the same revised definition
of that phrase to NCUA's rule on conversions to nonfederal deposit
insurance.
DATES: The rule is effective December 23, 2010. Comments must be
received by January 24, 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/Resources/RegulationsOpinionsLaws/FinalRegulations.aspx. Follow the instructions
for submitting comments.
E-mail: Address to [email protected]. Include ``[Your name]
Comments on ``Interim Final Rulemaking for Parts 708a and 708b--
Definition of ``Regional Director'' 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.
Public Inspection: All public comments are available on the
agency's Web site at http://www.ncua.gov/Resources/RegulationsOpinionsLaws/FinalRegulations.aspx as submitted, except as
may not be possible for technical reasons. Public comments will not be
edited to remove any identifying or contact information. Paper copies
of comments may be inspected in NCUA's law library at 1775 Duke Street,
Alexandria, Virginia 22314, by appointment weekdays between 9 a.m. and
3 p.m. To make an appointment, call (703) 518-6546 or send an e-mail to
[email protected].
FOR FURTHER INFORMATION CONTACT: Jacqueline Lussier, Staff Attorney,
Office of General Counsel, at the address above or telephone (703) 518-
6540.
[[Page 80679]]
SUPPLEMENTARY INFORMATION:
Background
In 2009, the NCUA Board created the NCUA Office of Consumer
Protection (OCP) to become operational on January 1, 2010. The OCP is
charged with responsibilities in the areas of credit union chartering,
insurance and supervision, as well as consumer compliance. NCUA is in
the process of moving responsibility for the review and approval of
certain types of credit union conversions from the Regional Directors
to the Director of the OCP, including credit union conversions to
mutual savings banks or mutual savings associations (MSBs) in 12 CFR
part 708a and the conversion from National Credit Union Share Insurance
Fund (NCUSIF) share insurance to nonfederal share insurance in 12 CFR
part 708b. To accommodate this reassignment of staff functions, the
NCUA Board is adding the Director of the OCP to the definition of the
phrase ``Regional Director'' in part 708a and adding a new definition
of the phrase ``Regional Director'' to part 708b that mirrors the
revised definition in part 708a.
Part 708a
Part 708a governs conversions of federally-insured credit unions to
MSBs. The definitions under part 708a are set forth in Sec. 708a.1. 12
CFR 708a.1. Section 708a.1 currently defines the phrase ``Regional
Director'' as the director of the NCUA regional office where a natural
person credit union's main office is located, and for corporate credit
unions, ``Regional Director'' means the director of NCUA's Office of
Corporate Credit Unions. This final rule amends the definition of
``Regional Director'' for natural person credit unions to include the
Director of OCP.
Part 708b
Part 708b governs credit union-to-credit union mergers and
terminations of NCUSIF share insurance and conversions from NCUSIF
share insurance to nonfederal share insurance. The definitions under
part 708b are set forth in Sec. 708b.2. 12 CFR 708b.2. Unlike part
708a, part 708b does not currently contain a definition of ``Regional
Director.'' This final rule amends part 708b to add a definition of
that phrase to Sec. 708b.2 identical to the parallel definition in
part 708a.
Interim Final Rule
NCUA is issuing this rulemaking as an interim final rule effective
upon publication in the Federal Register. The Administrative Procedure
Act (APA), 5 U.S.C. 553, generally requires that before a rulemaking
can be finalized it must first be published as a notice of proposed
rulemaking with the opportunity for public comment, unless the agency
for good cause finds that notice and public comment are impracticable,
unnecessary, or contrary to the public interest. NCUA believes good
cause exists for issuing these amendments without notice and public
comment. The amendments to these rules are not substantive but merely
update the regulations to provide NCUA with additional administrative
flexibility.
Additionally, the APA requires that a final rule must have a
delayed effective date of 30 days from the date of publication, except
for good cause. 5 U.S.C. 553(d). NCUA also finds good cause to waive
the customary 30-day delayed effective date requirement under the APA.
These revisions will, therefore, be effective immediately upon
publication.
NCUA does not anticipate comments on these changes and so is
allowing only a 30-day comment period.
Regulatory Procedures
Regulatory Flexibility Act
The Regulatory Flexibility Act requires NCUA to prepare an analysis
to describe any significant economic impact a proposed rule may have on
a substantial number of small credit unions (those under $10 million in
assets). Only a few credit unions convert in a given year. Accordingly,
the NCUA Board certifies that the interim final rule will not have a
significant economic impact on a substantial number of small credit
unions, and, therefore, a regulatory flexibility analysis is not
required.
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. 44 U.S.C. 3507(d). 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. The revised definition does not impose any new
paperwork burden.
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 interim final rule will not have
substantial direct effects 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 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 the interim final 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).
Small Business Regulatory Enforcement Fairness Act
The Small Business Regulatory Enforcement Fairness Act 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 Procedure Act, 5 U.S.C. 551. While NCUA views these
revisions as minor, the formal determination by the Office of
Information and Regulatory Affairs of the Office of Management and
Budget is pending.
List of Subjects
12 CFR Part 708a
Charter conversions, Credit unions.
12 CFR Part 708b
Credit unions, Mergers of credit unions, Reporting and
recordkeeping requirements.
By the National Credit Union Administration Board on December
20, 2010.
Mary F. Rupp,
Secretary of the Board.
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For the reasons stated in the preamble, the National Credit Union
Administration amends 12 CFR parts 708a and 708b as follows:
PART 708a--CONVERSION OF INSURED CREDIT UNIONS TO MUTUAL SAVINGS
BANKS
0
1. The authority citation for part 708a continues to read as follows:
Authority: 12 U.S.C. 1766, 12 U.S.C. 1785(b).
[[Page 80680]]
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2. Amend Sec. 708a.1 to add a definition of regional director in
alphabetical order to read as follows:
Sec. 708a.1 Definitions.
* * * * *
Regional director means either the director of the NCUA regional
office for the region where a natural person credit union's main office
is located or the director of the NCUA's Office of Consumer Protection.
For corporate credit unions, regional director means the director of
NCUA's Office of Corporate Credit Unions.
* * * * *
PART 708b--MERGERS OF FEDERALLY INSURED CREDIT UNIONS; VOLUNTARY
TERMINATION OR CONVERSION OF INSURED STATUS
0
3. The authority citation for part 708b continues to read as follows:
Authority: 12 U.S.C. 1752(7), 1766, 1785, 1786, 1789.
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4. In Sec. 708b.2, redesignate paragraphs (h) through (k) as
paragraphs (i) through (l) and add new paragraph (h) to read as
follows:
Sec. 708b.2 Definitions.
* * * * *
(h) Regional director means either the director of the NCUA
regional office for the region where a natural person credit union's
main office is located or the director of the NCUA's Office of Consumer
Protection. For corporate credit unions, regional director means the
director of NCUA's Office of Corporate Credit Unions.
* * * * *
[FR Doc. 2010-32308 Filed 12-22-10; 8:45 am]
BILLING CODE 7535-01-P