[Federal Register Volume 76, Number 49 (Monday, March 14, 2011)]
[Rules and Regulations]
[Pages 13504-13505]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5675]
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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: Final rule.
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SUMMARY: NCUA is confirming as final a December 23, 2010, interim final
rule on the definition of the phrase ``Regional Director'' in NCUA's
rule on credit union to mutual savings bank conversions. For
clarification purposes, this rule modifies the aforementioned
definition.
DATES: This rule is effective March 14, 2011.
FOR FURTHER INFORMATION CONTACT: Jacqueline Lussier, Staff Attorney,
Office of General Counsel, National Credit Union Administration, 1775
Duke Street, Alexandria, VA 22314-3428, or telephone (703) 518-6540.
SUPPLEMENTARY INFORMATION:
Background
In 2009, the NCUA Board created the NCUA Office of Consumer
Protection (OCP) to become operational on January 1, 2010. 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 issued an interim final rule in December 2010, 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. 75 FR 80678 (Dec. 23, 2010).
NCUA received one comment letter that supported inclusion of the
Director of the OCP in the definition of ``Regional Director'' in parts
708a and 708b.
Final Rule
The interim final rule instructed the Office of Federal Register
(OFR) to amend Sec. 708a.1 (now Sec. 708a.101) \1\ of part 708a by
adding a definition of ``Regional Director'' to include the Director of
the OCP. The interim final rule, however, should have instructed the
OFR that Sec. 708a.1 (now Sec. 708a.101) be amended not by adding a
new definition but rather by revising the existing definition of
``Regional Director.'' This final rule confirms the December 23, 2010,
interim rule as final and instructs the OFR that the existing
definition of ``Regional Director'' in Sec. 708a.101 be revised to
include the Director of the OCP.
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\1\ In December 2010, the NCUA Board issued a final rule that,
in part, reorganized part 708a into subparts A through C and
redesignated the existing section numbers in subpart A as Sec. Sec.
708a.101 through 708a.113. 75 FR 81378 (Dec. 28, 2010). As
reorganized, subpart A applies to conversions of federally-insured
credit unions to MSBs and former Sec. 708a.1 is now numbered Sec.
708a.101. That final rule became effective on January 27, 2011.
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Immediate Effective Date
NCUA is issuing this rulemaking as a final rule effective upon
publication in the Federal Register. The Administrative Procedure Act
(APA), 5 U.S.C. 553, requires that a final rule must have a delayed
effective date of 30 days from the date of publication, except for good
cause. In this regard, NCUA believes the 30-day delayed effective date
is inapplicable because the amendments to parts 708a and 708b are not
substantive but merely update the regulation to provide NCUA with
[[Page 13505]]
additional administrative flexibility. As such, the final rule is not
subject to the 30-day delayed effective date requirement.
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). 5 U.S.C. 603(a). Only a few credit unions convert in a given
year. Accordingly, the NCUA Board certifies that the 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 a
reporting, recordkeeping, or disclosure requirement, each referred to
as an information collection. 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 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 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
(SBREFA), 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. The Office of
Information and Regulatory Affairs of the Office of Management and
Budget has determined that this final rule is not a major rule for
purposes of SBREFA.
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 March 7,
2011.
Mary F. Rupp,
Secretary of the Board.
For the reasons stated in the preamble, the National Credit Union
Administration confirms as final the interim rule, which amended 12 CFR
parts 708a and 708b, and was published December 23, 2010, at 75 FR
80678, with the following changes:
PART 708a--BANK CONVERSIONS AND MERGERS
0
1. The authority citation for part 708a continues to read as follows:
Authority: 12 U.S.C. 1766, 1785(b), and 1785(c).
0
2. In Sec. 708a.101, revise the definition of regional director to
read as follows:
Sec. 708a.101 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.
* * * * *
[FR Doc. 2011-5675 Filed 3-11-11; 8:45 am]
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