Revisions to the Official Sign Indicating Insured Status, 67436-67439 [E6-19682]

Download as PDF 67436 Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Rules and Regulations latitude 33.2880° N.; then east along the line of latitude 33.2880° N. to the line of longitude ¥98.8356° W.; then south along the line of longitude ¥98.8356° W. to the line of latitude 33.1946° N.; then west along the line of latitude 33.1946° N. to the line of longitude ¥98.8762° W.; then south along the line of longitude ¥98.8762° W. to the line of latitude 33.1809° N.; then west along the line of latitude 33.1809° N. to the Throckmorton/Young County line; then north along the Throckmorton/Young County line to the point of beginning. Done in Washington, DC, this 16th day of November 2006. Kevin Shea, Acting Administrator, Animal and Plant Health Inspection Service. [FR Doc. E6–19769 Filed 11–21–06; 8:45 am] BILLING CODE 3410–34–P DEPARTMENT OF AGRICULTURE Animal and Plant Health Inspection Service 7 CFR Parts 319 and 354 [Docket No. APHIS–2006–0096] Agricultural Inspection and AQI User Fees Along the U.S./Canada Border; Delay of Effective Date Animal and Plant Health Inspection Service, USDA. ACTION: Interim rule; delay of effective date. mstockstill on PROD1PC61 with RULES AGENCY: SUMMARY: We recently published an interim rule amending the foreign quarantine and user fee regulations by removing the exemptions from inspection for imported fruits and vegetables grown in Canada and the exemptions from user fees for commercial vessels, commercial trucks, commercial railroad cars, commercial aircraft, and international air passengers entering the United States from Canada. That interim rule had an effective date of November 24, 2006. We are delaying the effective date of the removal of the user fee exemption for international air passengers until January 1, 2007, and the effective date for the remaining provisions of the rule, including the removal of the exemption from user fees for commercial vessels, commercial trucks, commercial railroad cars, and commercial aircraft entering the United States from Canada, until March 1, 2007. We are making these changes to allow additional time for affected entities to make necessary preparations to comply with the inspection and collection procedures that we will be instituting as a result of the interim rule. VerDate Aug<31>2005 15:05 Nov 21, 2006 Jkt 211001 The effective date for the interim rule amending 7 CFR parts 319 and 354, published at 71 FR 50320, August 25, 2006, is delayed until March 1, 2007, except for the rule’s amendments to paragraphs (f)(2) and (f)(3) of 7 CFR 354.3, which are delayed until January 1, 2007. FOR FURTHER INFORMATION CONTACT: Mr. Alan S. Green, Executive Director, Plant Health Programs, PPQ, APHIS, 4700 River Road Unit 36, Riverdale, MD 20737; (301) 734–8261. SUPPLEMENTARY INFORMATION: DATES: Background The regulations in 7 CFR part 319 prohibit or restrict the importation of certain plants and plant products into the United States to prevent the introduction of plant pests. Similarly, the regulations in 9 CFR subchapter D prohibit or restrict the importation of certain animals and animal products into the United States to prevent the introduction of pests or diseases of livestock. The regulations in 7 CFR part 354 provide rates and requirements for overtime services relating to imports and exports and for user fees. On August 25, 2006, we published an interim rule in the Federal Register (71 FR 50320–50328) amending the regulations in 7 CFR parts 319 and 354 by removing the exemptions from inspection for imported fruits and vegetables grown in Canada and the exemptions from user fees for commercial vessels, commercial trucks, commercial railroad cars, commercial aircraft, and international air passengers entering the United States from Canada. As a result of this action, all agricultural products imported from Canada were to be subject to inspection, and commercial conveyances, as well as airline passengers arriving on flights from Canada, were to be subject to inspection and user fees. The interim rule had an effective date of November 24, 2006. Delay in Effective Date We recently received comments from industry representatives and the Government of Canada expressing concern about the possible impact of the rule on affected entities and questioning whether the November 2006 effective date allowed adequate time for those entities to prepare to comply with the new inspection and collection procedures that we would be instituting in order to enforce the interim rule. A delay of the effective date was requested. After evaluating the comments, we have elected to delay the effective date of the interim rule. We are PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 delaying the effective date of the removal of the user fee exemption for international air passengers until January 1, 2007, and the effective date for the remaining provisions of the rule, including the removal of the exemption from user fees for commercial vessels, commercial trucks, commercial railroad cars, and commercial aircraft entering the United States from Canada, until March 1, 2007. Authority: 7 U.S.C. 450, 7701–7772, 7781– 7786, and 8301–8317; 21 U.S.C. 136 and 136a; 49 U.S.C. 80503; 7 CFR 2.22, 2.80, and 371.3. Done in Washington, DC, this 16th day of November 2006. W. Ron DeHaven, Administrator, Animal and Plant Health Inspection Service. [FR Doc. E6–19787 Filed 11–21–06; 8:45 am] BILLING CODE 3410–34–P NATIONAL CREDIT UNION ADMINISTRATION 12 CFR Part 740 RIN 3133–AD18 Revisions to the Official Sign Indicating Insured Status National Credit Union Administration (NCUA). ACTION: Final rule. AGENCY: SUMMARY: NCUA is revising the official sign indicating a credit union’s share accounts are insured by the NCUA to reflect recent share insurance increases and by including a statement that NCUA-insured share accounts are backed by the full faith and credit of the United States Government. This rule is required to comply with the Federal Deposit Insurance Reform Act of 2005 (Reform Act) and the Federal Deposit Insurance Reform Conforming Amendments Act of 2005 (Conforming Amendments Act). DATES: This final rule is effective immediately upon publication but there are delayed compliance dates. A credit union must replace the old version of the official sign with the revised official sign displayed below at required locations such as each station or window where the credit union normally receives insured funds or deposits in its principal place of business and all of its branches and on its internet page where it accepts deposits or opens accounts by May 22, 2007. A credit union must replace the old version of the official sign with the revised official sign on each document where it has chosen to include the E:\FR\FM\22NOR1.SGM 22NOR1 Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Rules and Regulations official sign, including advertisements, marketing and promotional materials, disclosures, and others by November 23, 2007. FOR FURTHER INFORMATION CONTACT: Frank Kressman, Staff Attorney, Office of General Counsel, at the above address, or telephone: (703) 518–6540. SUPPLEMENTARY INFORMATION: mstockstill on PROD1PC61 with RULES A. Background The Reform Act and Conforming Amendments Act, respectively Public Law 109–171 and Public Law 109–173, amended the share insurance provisions of the Federal Credit Union Act in a number of ways, including increasing share insurance coverage for certain accounts. 12 U.S.C. 1781–1790d. In March 2006, NCUA issued an interim final rule to implement many of those statutory amendments. 71 FR 14631 (March 23, 2006). Additionally, the Conforming Amendments Act also requires that NCUA’s official sign, relating to the insurance of share accounts, state that share accounts insured by NCUA, through the National Credit Union Share Insurance Fund, are backed by the full faith and credit of the United States government. Section 740.4 of NCUA’s regulations establishes the content and physical appearance of the official sign and dictates where insured credit unions must display the sign. In June 2006, NCUA issued a proposed rule to amend § 740.4 to comply with statutory requirements and § 740.4 and § 740.5 to reflect recent share insurance increases. 71 FR 36719 (June 28, 2006). The Conforming Amendments Act also imposes a penalty on an insured credit union that violates any statutory or regulatory provision related to the official sign. Specifically, an insured credit union is subject to a penalty of up to $100 a day for every day it is in violation of statutory or regulatory requirements. The proposal reflected this statutory provision in § 740.4. B. Initial Supply of New Signs and Compliance Dates In the proposed rule, NCUA stated it would provide all insured credit unions with an initial supply of the revised official sign with a blue background and white lettering at no cost to credit unions and would make a downloadable graphic available on the agency Web site for credit unions to use on their Web sites. NCUA intends to ship the signs immediately following Board approval of this final rule, and credit unions should receive their signs around the time of the official publication of this rule. NCUA did not suggest a compliance date for replacing the official sign at VerDate Aug<31>2005 15:05 Nov 21, 2006 Jkt 211001 teller windows, on Web sites, or on advertisements. Rather, NCUA asked for comments on whether 60 days after receiving the signs from NCUA would be a reasonable period for credit unions to come into compliance. As discussed in detail in the summary of comments section below, NCUA is setting two separate compliance dates for credit unions to incorporate the revised official sign. A credit union will have up to six months from the effective date of this rule to replace old signs with revised signs at each station or window where the credit union normally receives insured funds or deposits in its principal place of business and all of its branches and on its internet page where it accepts deposits or opens accounts. Credit unions will have up to one year from the effective date of the rule to exhaust or otherwise dispose of their existing supplies of other materials on which the official sign appears and replace them with materials containing the revised official sign. C. Summary of Comments NCUA received a total of eighty-one comments regarding the proposed rule from eight credit union trade associations, thirty-five federal credit unions, thirty-six state credit unions and two individuals who did not identify the credit unions with which they are associated. The vast majority of commenters focused on the compliance date of the rule. Most commenters indicated the rule creates two separate tasks credit unions need to perform to comply and that each should have its own compliance date. For example, about half the commenters believed 60 days is a reasonable time period to replace the old sign with the revised sign at each station or window where the credit union normally receives insured funds or deposits in its principal place of business and all of its branches and on its Internet page where it accepts deposits or opens accounts. A few of these commenters also noted additional time would be preferable. Seventeen commenters stated more than 60 days is necessary to comply and a number of them suggested six months and one suggested a year. NCUA does not wish to overburden any credit union in this regard. Accordingly, NCUA will allow up to six months for credit unions to comply with this aspect of the rule. Also, commenters explained that, in addition to placing the official sign where required by regulation, such as at teller windows and on Web pages, credit unions also voluntarily use the official sign on a vast array of materials they provide to members. Commenters PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 67437 noted these materials include marketing and promotional materials, disclosures, envelopes, statement paper, lobby flyers and posters, membership agreements, and other documents. Seventy-seven commenters agreed that credit unions need a longer compliance period to deal with revising these materials. The great majority of these commenters expressed two main themes about revising the materials. They noted it could take a long time to redesign and reprint them and the expense of doing so could be high and cause budgetary problems, especially for smaller credit unions. They explained credit unions usually purchase these kinds of materials in bulk to lower their costs. As a result, credit unions may have large inventories that could last for a year for which they have already paid. They suggested NCUA permit credit unions to exhaust their existing supplies of materials before being required to replace them with materials containing the revised official sign. Some suggested specific time frames, ranging from six months to a number of years and others left it more open-ended, suggesting whenever the existing inventory is exhausted. Many also noted that members would not be adversely affected by an extended compliance period. NCUA acknowledges the commenters’ concerns. Accordingly, NCUA will permit credit unions one year from the effective date to comply with this aspect of the final rule. Nine commenters suggested adding additional language to the sign to specifically reference the $250,000 coverage for certain retirement accounts. Three commenters suggested adding the word ‘‘are’’ to the sign between the words ‘‘savings’’ and ‘‘federally’’ for readability. Nine commenters expressed concern and disapproval for the statutorily mandated penalty of up to $100 per day for not complying with official sign requirements. The familiar design and limited language of the sign is intended to instill confidence in members that their funds are insured by the NCUA and backed by the full faith and credit of the United States Government. NCUA believes that adding too much additional information to a small sign detracts from that simple and easily understood message, lessens the legibility of the sign in certain media, and could actually confuse members into thinking they have more insurance coverage than they do. NCUA believes the redesigned sign strikes a balance between providing accurate and sufficient information with the logistical need for the sign to be brief. Finally, the redesigned sign parallels the language on the Federal Deposit Insurance E:\FR\FM\22NOR1.SGM 22NOR1 67438 Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Rules and Regulations Corporation’s newly redesigned sign and reflects cooperation between Federal agencies. The $100 per day penalty for not complying with Part 740 is statutory and beyond NCUA’s ability to change. NCUA believes it has accommodated commenters’ concerns about the penalty, however, by setting compliance dates far enough in the future to allow credit unions ample time to comply. D. Technical Clarification mstockstill on PROD1PC61 with RULES NCUA is amending § 740.4(b)(2) to ensure its policy that a credit union may use the color scheme of its choice regarding the official sign is clearly reflected. 68 FR 23381, 23382 (May 2, 2003). The current regulation contains language that could be read to prohibit a credit union from using signs in colors other than those provided to it by NCUA at each station or window where the credit union normally receives insured funds or deposits in its principal place of business and all of its branches and on its Internet page where it accepts deposits or opens accounts. That language is removed to make clear a credit union may use signs in different colors in those locations. Additionally, NCUA reiterates that a credit union also may alter the official sign’s font sizes to ensure it is legible and visually prominent on a Web page. 68 FR 23381 (May 2, 2003). Credit unions may do the same on other documents where they have chosen to include the official sign in connection with the official advertising statement or for other purposes not required by Part 740. A credit union may not alter the font size of the official sign as provided by NCUA for placement at each station or window where the credit union normally receives insured funds or deposits in its principal place of business and all of its branches. Also, the depiction of the sign published in the proposal inadvertently omitted an interior border surrounding the language of the sign. The depiction below includes that border but does not make any substantive changes. VerDate Aug<31>2005 15:05 Nov 21, 2006 Jkt 211001 Regulatory Procedures Regulatory Flexibility Act The Regulatory Flexibility Act requires NCUA to prepare an analysis to describe any significant economic impact a rule may have on a substantial number of small credit unions (those under ten million dollars in assets). This rule clarifies that share accounts insured by NCUA are backed by the full faith and credit of the United States Government. It establishes reasonable compliance dates and is structured to minimize any regulatory burden to ensure it will not have a significant economic impact on a substantial number of small credit unions. Therefore, a regulatory flexibility analysis is not required. Paperwork Reduction Act NCUA has determined that this rule would not increase paperwork requirements under the Paperwork Reduction Act of 1995 and 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. This rule would 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 The NCUA has determined that this rule would not affect family well-being PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 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 (Pub. L. 104–121) (SBREFA) 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 Management and Budget has determined that this rule is not a major rule for purposes of SBREFA. As required by SBREFA, NCUA will file the appropriate reports with Congress and the General Accounting Office so this rule may be reviewed. List of Subjects in 12 CFR Part 740 Advertisements, Credit unions. By the National Credit Union Administration Board on November 16, 2006. Mary F. Rupp, Secretary of the Board. For the reasons discussed above, NCUA is amending 12 CFR part 740 as follows: I PART 740—ACCURACY OF ADVERTISING AND NOTICE OF INSURED STATUS 1. The authority citation for part 740 continues to read as follows: I Authority: 12 U.S.C. 1766, 1781, 1789. 2. Section 740.4 is amended by revising the figure in paragraph (b) introductory text, by revising paragraph (b)(2) and by adding new paragraph (f) to read as follows: I § 740.4 * Requirements for the official sign. * * (b) * * * E:\FR\FM\22NOR1.SGM 22NOR1 * * Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Rules and Regulations [FR Doc. E6–19682 Filed 11–21–06; 8:45 am] BILLING CODE 7535–01–P NATIONAL CREDIT UNION ADMINISTRATION 12 CFR Parts 745 and 747 Share Insurance Appeals; Clarification of Enforcement Authority of the NCUA Board National Credit Union Administration (NCUA). ACTION: Interim final rule with request for comments. mstockstill on PROD1PC61 with RULES AGENCY: SUMMARY: NCUA is amending its rules to implement amendments to the Federal Credit Union Act (FCU Act) made by the Financial Services Regulatory Relief Act of 2006 (Reg Relief Act). This interim final rule clarifies: that an appeal from a final NCUA Board decision regarding share insurance VerDate Aug<31>2005 15:05 Nov 21, 2006 Jkt 211001 coverage shall be to the appropriate Federal District Court; that the NCUA Board may terminate the insured status of any insured credit union for violation of any condition imposed by the Board in connection with any action on any application, notice, or other request by the credit union or an institutionaffiliated party; and that Orders of Suspension, Prohibition and Removal issued by the NCUA Board remain effective against institution-affiliated parties regardless of whether they remain institution-affiliated parties at the time the Order is considered or issued. This interim final rule is effective November 22, 2006. Comments must be received by NCUA on or before January 22, 2007. 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 Interim Final Rule—Parts 745 and 747’’ 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, VA 22314–3428. • Hand Delivery/Courier: Same as mail address. FOR FURTHER INFORMATION CONTACT: John K. Ianno, Senior Trial Attorney, Office of General Counsel, at the above address or telephone: (703) 518–6540. SUPPLEMENTARY INFORMATION: DATES: PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 A. Insurance Appeals The Reg Relief Act amended section 207(d) of the FCU Act, which addresses the resolutions of disputes relating to any claim for insurance coverage. 12 U.S.C. 1787(d). This interim rule amends the provision in NCUA’s regulations, 12 CFR 745.203(c), that sets forth the appropriate venue for seeking judicial review of a final determination by the Board relating to a claim for insurance coverage. The current regulation provides for judicial review by the United States Court of Appeals for the District of Columbia or the court of appeals for the Federal circuit where the credit union’s principal place of business is located. The interim rule revises the regulation to reflect the statutory change that a final agency determination by the Board on a claim for insurance coverage is reviewable by the United States district court for the Federal judicial district where the principle place of business of the credit union is located. B. Expansion of Enforcement Authority The Reg Relief Act amended three provisions of Section 206 of the FCU Act, 12 U.S.C. 1786, to broaden the NCUA Board’s authority to take enforcement actions for violations of conditions imposed in any action on any application, notice, or other request by a credit union or an institutionaffiliated party. Such violations can serve as a basis for cease and desist orders, removal and prohibition orders, and civil money penalties. Previously such enforcement actions could only be taken upon a violation of conditions imposed in ‘‘the granting of any application or other request by the credit union’’. The amendments to Sections 747.1 and 202 of NCUA’s Regulations conform the language of the regulation to that of the FCU Act as amended. E:\FR\FM\22NOR1.SGM 22NOR1 ER22NO06.012</GPH> (1) * * * (2) An insured credit union may purchase signs from commercial suppliers or develop its own in any color scheme so long as they are legible and otherwise comply with this part. A credit union may alter the font size of the official sign to make it legible on its Internet page and on documents it provides to its members including advertisements, but it may not do so on signs to be placed at each station or window where the credit union normally receives insured funds or deposits in its principal place of business and all of its branches. * * * * * (f) An insured credit union that fails to comply with Section 205(a) of the Federal Credit Union Act regarding the official sign, 12 U.S.C. 1785(a), or any requirement in this part is subject to a penalty of up to $100 per day. I 3. Section 740.5(c)(11) is amended by removing ‘‘of $100,000’’ and adding in its place ‘‘insurance amount’’. 67439

Agencies

[Federal Register Volume 71, Number 225 (Wednesday, November 22, 2006)]
[Rules and Regulations]
[Pages 67436-67439]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19682]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 740

RIN 3133-AD18


Revisions to the Official Sign Indicating Insured Status

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final rule.

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SUMMARY: NCUA is revising the official sign indicating a credit union's 
share accounts are insured by the NCUA to reflect recent share 
insurance increases and by including a statement that NCUA-insured 
share accounts are backed by the full faith and credit of the United 
States Government. This rule is required to comply with the Federal 
Deposit Insurance Reform Act of 2005 (Reform Act) and the Federal 
Deposit Insurance Reform Conforming Amendments Act of 2005 (Conforming 
Amendments Act).

DATES: This final rule is effective immediately upon publication but 
there are delayed compliance dates. A credit union must replace the old 
version of the official sign with the revised official sign displayed 
below at required locations such as each station or window where the 
credit union normally receives insured funds or deposits in its 
principal place of business and all of its branches and on its internet 
page where it accepts deposits or opens accounts by May 22, 2007. A 
credit union must replace the old version of the official sign with the 
revised official sign on each document where it has chosen to include 
the

[[Page 67437]]

official sign, including advertisements, marketing and promotional 
materials, disclosures, and others by November 23, 2007.

FOR FURTHER INFORMATION CONTACT: Frank Kressman, Staff Attorney, Office 
of General Counsel, at the above address, or telephone: (703) 518-6540.

SUPPLEMENTARY INFORMATION: 

A. Background

    The Reform Act and Conforming Amendments Act, respectively Public 
Law 109-171 and Public Law 109-173, amended the share insurance 
provisions of the Federal Credit Union Act in a number of ways, 
including increasing share insurance coverage for certain accounts. 12 
U.S.C. 1781-1790d. In March 2006, NCUA issued an interim final rule to 
implement many of those statutory amendments. 71 FR 14631 (March 23, 
2006). Additionally, the Conforming Amendments Act also requires that 
NCUA's official sign, relating to the insurance of share accounts, 
state that share accounts insured by NCUA, through the National Credit 
Union Share Insurance Fund, are backed by the full faith and credit of 
the United States government. Section 740.4 of NCUA's regulations 
establishes the content and physical appearance of the official sign 
and dictates where insured credit unions must display the sign. In June 
2006, NCUA issued a proposed rule to amend Sec.  740.4 to comply with 
statutory requirements and Sec.  740.4 and Sec.  740.5 to reflect 
recent share insurance increases. 71 FR 36719 (June 28, 2006).
    The Conforming Amendments Act also imposes a penalty on an insured 
credit union that violates any statutory or regulatory provision 
related to the official sign. Specifically, an insured credit union is 
subject to a penalty of up to $100 a day for every day it is in 
violation of statutory or regulatory requirements. The proposal 
reflected this statutory provision in Sec.  740.4.

B. Initial Supply of New Signs and Compliance Dates

    In the proposed rule, NCUA stated it would provide all insured 
credit unions with an initial supply of the revised official sign with 
a blue background and white lettering at no cost to credit unions and 
would make a downloadable graphic available on the agency Web site for 
credit unions to use on their Web sites. NCUA intends to ship the signs 
immediately following Board approval of this final rule, and credit 
unions should receive their signs around the time of the official 
publication of this rule.
    NCUA did not suggest a compliance date for replacing the official 
sign at teller windows, on Web sites, or on advertisements. Rather, 
NCUA asked for comments on whether 60 days after receiving the signs 
from NCUA would be a reasonable period for credit unions to come into 
compliance. As discussed in detail in the summary of comments section 
below, NCUA is setting two separate compliance dates for credit unions 
to incorporate the revised official sign. A credit union will have up 
to six months from the effective date of this rule to replace old signs 
with revised signs at each station or window where the credit union 
normally receives insured funds or deposits in its principal place of 
business and all of its branches and on its internet page where it 
accepts deposits or opens accounts. Credit unions will have up to one 
year from the effective date of the rule to exhaust or otherwise 
dispose of their existing supplies of other materials on which the 
official sign appears and replace them with materials containing the 
revised official sign.

C. Summary of Comments

    NCUA received a total of eighty-one comments regarding the proposed 
rule from eight credit union trade associations, thirty-five federal 
credit unions, thirty-six state credit unions and two individuals who 
did not identify the credit unions with which they are associated.
    The vast majority of commenters focused on the compliance date of 
the rule. Most commenters indicated the rule creates two separate tasks 
credit unions need to perform to comply and that each should have its 
own compliance date. For example, about half the commenters believed 60 
days is a reasonable time period to replace the old sign with the 
revised sign at each station or window where the credit union normally 
receives insured funds or deposits in its principal place of business 
and all of its branches and on its Internet page where it accepts 
deposits or opens accounts. A few of these commenters also noted 
additional time would be preferable. Seventeen commenters stated more 
than 60 days is necessary to comply and a number of them suggested six 
months and one suggested a year. NCUA does not wish to overburden any 
credit union in this regard. Accordingly, NCUA will allow up to six 
months for credit unions to comply with this aspect of the rule.
    Also, commenters explained that, in addition to placing the 
official sign where required by regulation, such as at teller windows 
and on Web pages, credit unions also voluntarily use the official sign 
on a vast array of materials they provide to members. Commenters noted 
these materials include marketing and promotional materials, 
disclosures, envelopes, statement paper, lobby flyers and posters, 
membership agreements, and other documents.
    Seventy-seven commenters agreed that credit unions need a longer 
compliance period to deal with revising these materials. The great 
majority of these commenters expressed two main themes about revising 
the materials. They noted it could take a long time to redesign and 
reprint them and the expense of doing so could be high and cause 
budgetary problems, especially for smaller credit unions. They 
explained credit unions usually purchase these kinds of materials in 
bulk to lower their costs. As a result, credit unions may have large 
inventories that could last for a year for which they have already 
paid. They suggested NCUA permit credit unions to exhaust their 
existing supplies of materials before being required to replace them 
with materials containing the revised official sign. Some suggested 
specific time frames, ranging from six months to a number of years and 
others left it more open-ended, suggesting whenever the existing 
inventory is exhausted. Many also noted that members would not be 
adversely affected by an extended compliance period. NCUA acknowledges 
the commenters' concerns. Accordingly, NCUA will permit credit unions 
one year from the effective date to comply with this aspect of the 
final rule.
    Nine commenters suggested adding additional language to the sign to 
specifically reference the $250,000 coverage for certain retirement 
accounts. Three commenters suggested adding the word ``are'' to the 
sign between the words ``savings'' and ``federally'' for readability. 
Nine commenters expressed concern and disapproval for the statutorily 
mandated penalty of up to $100 per day for not complying with official 
sign requirements. The familiar design and limited language of the sign 
is intended to instill confidence in members that their funds are 
insured by the NCUA and backed by the full faith and credit of the 
United States Government. NCUA believes that adding too much additional 
information to a small sign detracts from that simple and easily 
understood message, lessens the legibility of the sign in certain 
media, and could actually confuse members into thinking they have more 
insurance coverage than they do. NCUA believes the redesigned sign 
strikes a balance between providing accurate and sufficient information 
with the logistical need for the sign to be brief. Finally, the 
redesigned sign parallels the language on the Federal Deposit Insurance

[[Page 67438]]

Corporation's newly redesigned sign and reflects cooperation between 
Federal agencies. The $100 per day penalty for not complying with Part 
740 is statutory and beyond NCUA's ability to change. NCUA believes it 
has accommodated commenters' concerns about the penalty, however, by 
setting compliance dates far enough in the future to allow credit 
unions ample time to comply.

D. Technical Clarification

    NCUA is amending Sec.  740.4(b)(2) to ensure its policy that a 
credit union may use the color scheme of its choice regarding the 
official sign is clearly reflected. 68 FR 23381, 23382 (May 2, 2003). 
The current regulation contains language that could be read to prohibit 
a credit union from using signs in colors other than those provided to 
it by NCUA at each station or window where the credit union normally 
receives insured funds or deposits in its principal place of business 
and all of its branches and on its Internet page where it accepts 
deposits or opens accounts. That language is removed to make clear a 
credit union may use signs in different colors in those locations. 
Additionally, NCUA reiterates that a credit union also may alter the 
official sign's font sizes to ensure it is legible and visually 
prominent on a Web page. 68 FR 23381 (May 2, 2003). Credit unions may 
do the same on other documents where they have chosen to include the 
official sign in connection with the official advertising statement or 
for other purposes not required by Part 740. A credit union may not 
alter the font size of the official sign as provided by NCUA for 
placement at each station or window where the credit union normally 
receives insured funds or deposits in its principal place of business 
and all of its branches. Also, the depiction of the sign published in 
the proposal inadvertently omitted an interior border surrounding the 
language of the sign. The depiction below includes that border but does 
not make any substantive changes.

Regulatory Procedures

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires NCUA to prepare an analysis 
to describe any significant economic impact a rule may have on a 
substantial number of small credit unions (those under ten million 
dollars in assets). This rule clarifies that share accounts insured by 
NCUA are backed by the full faith and credit of the United States 
Government. It establishes reasonable compliance dates and is 
structured to minimize any regulatory burden to ensure it will not have 
a significant economic impact on a substantial number of small credit 
unions. Therefore, a regulatory flexibility analysis is not required.

Paperwork Reduction Act

    NCUA has determined that this rule would not increase paperwork 
requirements under the Paperwork Reduction Act of 1995 and 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. This rule would 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

    The NCUA has determined that this 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).

Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act of 1996 
(Pub. L. 104-121) (SBREFA) 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 Management 
and Budget has determined that this rule is not a major rule for 
purposes of SBREFA. As required by SBREFA, NCUA will file the 
appropriate reports with Congress and the General Accounting Office so 
this rule may be reviewed.

List of Subjects in 12 CFR Part 740

    Advertisements, Credit unions.

    By the National Credit Union Administration Board on November 
16, 2006.
Mary F. Rupp,
Secretary of the Board.

0
For the reasons discussed above, NCUA is amending 12 CFR part 740 as 
follows:

PART 740--ACCURACY OF ADVERTISING AND NOTICE OF INSURED STATUS

0
1. The authority citation for part 740 continues to read as follows:

    Authority: 12 U.S.C. 1766, 1781, 1789.


0
2. Section 740.4 is amended by revising the figure in paragraph (b) 
introductory text, by revising paragraph (b)(2) and by adding new 
paragraph (f) to read as follows:


Sec.  740.4  Requirements for the official sign.

* * * * *
    (b) * * *

[[Page 67439]]

[GRAPHIC] [TIFF OMITTED] TR22NO06.012

    (1) * * *
    (2) An insured credit union may purchase signs from commercial 
suppliers or develop its own in any color scheme so long as they are 
legible and otherwise comply with this part. A credit union may alter 
the font size of the official sign to make it legible on its Internet 
page and on documents it provides to its members including 
advertisements, but it may not do so on signs to be placed at each 
station or window where the credit union normally receives insured 
funds or deposits in its principal place of business and all of its 
branches.
* * * * *
    (f) An insured credit union that fails to comply with Section 
205(a) of the Federal Credit Union Act regarding the official sign, 12 
U.S.C. 1785(a), or any requirement in this part is subject to a penalty 
of up to $100 per day.

0
3. Section 740.5(c)(11) is amended by removing ``of $100,000'' and 
adding in its place ``insurance amount''.

[FR Doc. E6-19682 Filed 11-21-06; 8:45 am]
BILLING CODE 7535-01-P