Revisions to the Official Sign Indicating Insured Status, 67436-67439 [E6-19682]
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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.
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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.
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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
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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
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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:
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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
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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
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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
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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
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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.
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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
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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) * * *
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*
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.
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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
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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: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• NCUA Web site: https://
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:
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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.
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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]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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
