Accuracy of Advertising and Notice of Insured Status, 62935-62937 [E8-25116]
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Federal Register / Vol. 73, No. 205 / Wednesday, October 22, 2008 / Proposed Rules
paragraph similar to paragraph 2.(1) on
page 5 of Nevada’s petition. While the
Notice of Hearing requires the general
finding that all the Commission’s
regulations have been met, and I would
not delete this, reference to the specific
regulations may help the parties and
Licensing Boards focus on the issues
most pertinent to the Yucca Mountain
proceeding.
Additional Views of the Commission
ebenthall on PROD1PC60 with PROPOSALS
The Commission majority does not
share Commissioner Jaczko’s dissenting
views. The Commission is responding to
Nevada’s arguments, which rest largely
on a mistaken interpretation of the
current rules. Nevada did not show that
the existing rules are inadequate to
permit a thorough and probing
evaluation of a HLW repository
application. The Commission’s notice of
denial reflects careful consideration of
Nevada’s petition and explains in
considerable detail the reasons why the
petition should be denied.
We also see no need for
Commissioner Jaczko’s proposal that the
Commission hold adjudicatory hearings
on uncontested safety and
environmental issues. Such an approach
would not only be a departure from
long-standing rules but would likely
and unnecessarily prolong what
promises to be the most thoroughlycontested and complex licensing review
in NRC history. Our existing rules
require the staff to conduct a sound and
exhaustive review, permit interested
parties to intervene and litigate what we
anticipate to be a very large number of
contentions about the adequacy of the
application, and, as Commissioner
Jaczko acknowledges, provide for a
Commission review of both uncontested
and contested issues outside the
adjudicatory process. While we agree
with Commissioner Jaczko that public
confidence in our decision making is of
vital importance, we also believe that
the multiple layers of review provided
under our existing rules will be more
than adequate to provide that
confidence. Deviating from our wellestablished rules would not serve that
objective.
Dated at Rockville, Maryland, this 17th day
of October 2008.
For the Nuclear Regulatory Commission.
Annette L. Vietti-Cook,
Secretary of the Commission.
[FR Doc. E8–25290 Filed 10–21–08; 8:45 am]
BILLING CODE 7590–01–P
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NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Part 740
RIN 3133–AD52
Accuracy of Advertising and Notice of
Insured Status
National Credit Union
Administration (NCUA).
ACTION: Proposed rule.
AGENCY:
SUMMARY: Section 740.4 of NCUA’s rules
requires that a federally insured credit
union continuously display the official
NCUA sign at every teller station or
window where insured funds or
deposits are normally received. Section
740.4(c) requires that tellers accepting
share deposits for both federally insured
credit unions and nonfederally insured
credit unions also post a second sign
adjacent to the official NCUA sign.
Currently, the rules require this second
sign to list each federally insured credit
union served by the teller along with a
statement that only these credit unions
are federally insured. Due to the
evolution of shared branch networks it
is now difficult for some tellers to
comply with this second signage
requirement and, accordingly, NCUA is
proposing to revise the rule to replace
the required listing of credit unions
with a statement that not all of the
credit unions served by the teller are
federally insured and that members
should contact their credit union if they
need more information.
DATES: Comments must be received by
November 21, 2008.
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/RegulationsOpinions
Laws/proposed_regs/
proposed_regs.html. Follow the
instructions for submitting comments.
• E-mail: Address to
regcomments@ncua.gov. Include ‘‘[Your
name] Comments on FCU Bylaws’’ 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
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62935
Web site at https://www.ncua.gov/
RegulationsOpinionsLaws/comments 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 OGC Mail@ncua.gov.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Wirick, Staff Attorney, Office
of General Counsel, National Credit
Union Administration, 1775 Duke
Street, Alexandria, Virginia 22314–3428
or telephone: (703) 518–6540.
SUPPLEMENTARY INFORMATION:
A. Background
Part 740 of NCUA’s regulations
addresses the notice and advertising
requirements applicable to credit unions
insured by the National Credit Union
Share Insurance Fund (NCUSIF)
administered by NCUA. 12 CFR part
740. Section 740.4(a) requires these
federally insured credit unions post a
sign at all teller stations that normally
receive deposits. This official NCUA
sign reads: ‘‘Your savings federally
insured to at least $100,000 and backed
by the full faith and credit of the United
States Government’’ accompanied by
the acronym ‘‘NCUA’’ and the words
‘‘National Credit Union Administration,
a U.S. Government Agency.’’ 12 CFR
740.4(a). The official NCUA sign
informs and reassures members that
their share deposits are guaranteed, to
certain limits, by the U.S. Government
in the event the credit union fails.
Section 740.4(c) imposes additional
requirements on federally insured credit
unions participating in shared branch
networks. Generally, federally insured
credit unions are prohibited from
accepting funds at teller stations or
windows where nonfederally insured
credit unions also receive deposits. 12
CFR 740.4(c). Tellers in shared branch
networks (e.g., ‘‘Credit union centers,
service centers, or branches servicing
more than one credit union’’) are
currently exempted from this
prohibition, but only if they display a
specific sign at each station or window
above or beside the official NCUA sign.
Id. This second sign must state that
‘‘[o]nly the following credit unions
serviced by this facility are federally
insured by the NCUA,’’ followed by the
full name of each federally insured
credit union displayed in lettering ‘‘of
such size and print to be clearly legible
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Federal Register / Vol. 73, No. 205 / Wednesday, October 22, 2008 / Proposed Rules
ebenthall on PROD1PC60 with PROPOSALS
to all members conducting share or
share deposit transactions.’’ Id.
NCUA first adopted this requirement
for a second sign in shared branches
back in 1971. 36 FR 902, 903 (Jan. 25,
1971). The requirement ensures
members of nonfederally insured credit
unions are not confused regarding the
insurance status of their accounts when
those members make deposits through
tellers shared with federally insured
credit unions and that display the
mandatory official NCUA sign. 63 FR
10743, 10755 (March 5, 1998).
During the past 37 years, however, the
nature of shared branching has changed
considerably. The first shared branches
were local operations involving just a
few credit unions. Now, some shared
branch networks are national in scope
and service hundreds, if not thousands,
of individual credit unions.1 Under
these circumstances, NCUA believes the
requirement for by-name listing of each
participating federally insured credit
union is problematic. Since the vast
majority of credit unions participating
in the larger shared branch networks are
federally insured, members must now
sift through a lengthy list of credit
unions to ascertain the insurance status
of their particular credit union. The
length of the list would also require a
large, obtrusive sign, and it is difficult
to keep the sign up-to-date as federally
insured credit unions frequently join or
leave these networks.
Share branch networks are not only
increasing in size but are also changing
in the nature of the facilities they
employ. The earliest shared branches
consisted of shared service facilities run
by non-credit union entities such as
credit union service organizations. Now,
some shared branch networks are
structured to allow credit unions to use
their own branches, rather than separate
facilities, to service members of other
credit unions. Given this trend, NCUA
understands that some nonfederally
insured credit unions participating in
shared branch networks may accept
deposits for federally insured credit
unions at the nonfederally insured
credit union’s locations, and vice versa.
The current rule does not adequately
address the signage requirements in
these situations, such as whether the
1 Two of the largest shared branch networks are
Credit Union Service Centers (CUSC) and the
Financial Service Centers Cooperative (FSCC).
Currently, CUSC appears to have about 1,200
participating federally insured credit unions and 22
participating nonfederally insured credit unions.
FSCC appears to have about 270 participating
federally insured credit unions and 12 participating
nonfederally insured credit unions. Further, these
organizations interlink, allowing deposits to be
made through participants in one organization for
the accounts at participants in the other.
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official NCUA sign should be placed in
nonfederally insured credit unions
accepting federally insured share
deposits.
B. Proposed Amendments to Part 740
The proposed revision to § 740.4(c)
retains the general prohibition on
federally insured credit unions
receiving funds at any teller station or
window where any nonfederally
insured credit union also receives
account funds. The proposal contains
three exceptions to this prohibition.
The first two exceptions permit tellers
at federally insured credit unions and
shared branches operated by non-credit
union entities to receive deposits for
nonfederally insured credit unions if
these tellers post a second sign adjacent
to the official NCUA sign. In lieu of a
listing of all federally-insured credit
unions, the revised second sign will
state that the credit union or facility
participates in a shared branch network
and accepts deposits for members of
other credit unions, not all of which are
federally insured. The revised second
sign will advise members to contact
their credit union for information about
its insurance status.
The proposal requires the second sign
to be conspicuous and to be similar to
the official NCUA sign in terms of
design, color, and font. NCUA will
produce signs that meet this
requirement and make the signs
available for purchase at a reasonable
cost. Credit unions may either use the
NCUA-produced sign or produce their
own sign, as long as the sign meets the
requirements of the rule.
The third exception to the general
prohibition addresses signage
requirements at nonfederally insured
credit unions. The proposal clarifies
that tellers in nonfederally insured
credit unions may accept deposits for
federally insured credit unions as part
of a shared branch network. The
proposal, however, forbids a
nonfederally insured credit union from
displaying the official NCUA sign, as
this could be very confusing to the
members of the nonfederally insured
credit union. Also, since the credit
union will not display the official sign,
there is no need for it to display the
second sign.
The current prohibition applies to
tellers that accept deposits from
nonfederally insured credit unions and
‘‘other institutions.’’ As far as the Board
is aware, banks and thrifts are the only
types of non-credit union institutions
that take deposits, and, currently, they
are all federally insured. Accordingly,
there is no need for the rule to address
‘‘other institutions’’ and the proposed
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rule deletes that phrase. Also, although
the rule only addresses deposit-taking,
federally insured credit unions must
ensure that if they participate in a
shared branching network that includes
a nondeposit investment sales function,
that function is physically separated
from the deposit-taking function. See
NCUA Letter to Credit Unions No. 150,
Sales of Mutual Funds, Annuities, and
Other Non-Deposit Investments,
December 1993.
The proposed revisions also include
additions to the definitions in § 740.1.
12 CFR 740.1. The phrase ‘‘nonfederally
insured credit union’’ is defined as a
credit union with either no account
insurance or with primary account
insurance from an entity other than
NCUA. The phrases ‘‘insured credit
union’’ and ‘‘federally insured credit
union,’’ as used in the rule, both refer
to a credit union with NCUA account
insurance.
C. 30-Day Comment Period
NCUA seeks public comment on the
proposals discussed above. NCUA is
particularly interested in commenters’
views about whether the proposals are
adequate to ensure that credit union
members understand the insurance
status of their credit union accounts.
As a matter of agency policy, the
NCUA Board generally provides a 60day comment period for proposed
regulations. NCUA’s Interpretive Ruling
and Policy Statement (IRPS) 87–2, 52 FR
35231 (Sept. 18, 1987), as amended by
IRPS 03–02, 68 FR 31949 (May 29,
2003). In this case, the NCUA Board
believes a 30-day comment period will
suffice because the proposal simplifies
an existing rule and eases compliance
burdens for federally insured credit
unions.
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, defined
as those under ten million dollars in
assets. This proposed rule will not
impose any regulatory burden and in
fact will ease existing compliance
burdens on federally insured credit
unions participating in shared branch
networks and accepting deposits for
both federally insured and nonfederally
insured credit unions. The proposed
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.
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Federal Register / Vol. 73, No. 205 / Wednesday, October 22, 2008 / Proposed Rules
Paperwork Reduction Act
NCUA has determined that the
proposed rule would not increase
paperwork requirements under the
Paperwork Reduction Act of 1995 and
regulations of the Office of Management
and Budget. 44 U.S.C. 3501 et seq.; 5
CFR part 1320.
Executive Order 13132
Executive Order 13132 encourages
independent regulatory agencies to
consider the impact of their actions on
state and local interests. In adherence to
fundamental federalism principles,
NCUA, an independent regulatory
agency as defined in 44 U.S.C. 3502(5),
voluntarily complies with the executive
order. The proposed rule would not
have substantial direct 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 proposed rule does
not constitute a policy that has
federalism implications for purposes of
the executive order.
The Treasury and General Government
Appropriations Act, 1999—Assessment
of Federal Regulations and Policies on
Families
The NCUA has determined that the
proposed rule would not affect family
well-being within the meaning of § 654
of the Treasury and General
Government Appropriations Act, 1999,
Public Law 105–277, 112 Stat. 2681
(1998).
List of Subjects in 12 CFR Part 740
Advertisements, Credit unions, Signs
and symbols.
By the National Credit Union
Administration Board on October 16, 2008.
Mary F. Rupp,
Secretary of the Board.
For the reasons set forth above, NCUA
proposes to amend 12 CFR part 740 as
follows.
PART 740—ACCURACY OF
ADVERTISING AND NOTICE OF
INSURED STATUS
1. The authority citation for part 740
continues to read as follows:
ebenthall on PROD1PC60 with PROPOSALS
Authority: 12 U.S.C. 1766, 1781, 1785, and
1789.
2. Amend § 740.1 by revising
paragraph (b), and adding paragraph (c),
to read as follows:
§ 740.1
Definitions.
*
*
*
*
*
(b) Insured credit union and federally
insured credit union as used in this part
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62937
mean a credit union with National
Credit Union Administration share
insurance.
(c) Nonfederally insured credit union
as used in this part means a credit union
with either no account insurance or
with primary account insurance
provided by some entity other than the
National Credit Union Administration.
3. Amend § 740.4 by revising
paragraph (c) to read as follows:
DEPARTMENT OF TRANSPORTATION
§ 740.4
AGENCY:
Requirements for the official sign.
*
*
*
*
*
(c) To avoid any member confusion
from the use of the official NCUA sign,
federally insured credit unions are
prohibited from receiving account funds
at any teller station or window where
any nonfederally insured credit union
also receives account funds. As
exceptions to this prohibition:
(1) A teller in a branch of a federally
insured credit union may accept
account funds for nonfederally insured
credit unions, but only if the teller
displays a conspicuous sign next to the
official sign that states ‘‘This credit
union participates in a shared branch
network with other credit unions and
accepts share deposits for members of
those other credit unions. Not all of
these other credit unions are federally
insured. If you need information on the
insurance status of your credit union,
please contact your credit union
directly.’’ This sign must be similar to
the official sign in terms of design,
color, and font.
(2) A teller in a facility operated by a
non-credit union entity may accept
account funds for both federally insured
credit unions and nonfederally insured
credit unions, but only if the teller
displays a conspicuous sign next to the
official sign stating ‘‘This facility
accepts share deposits for multiple
credit unions. Not all of these credit
unions are federally insured. If you need
information on the insurance status of
your credit union, please contact your
credit union directly.’’ This sign must
be similar to the official sign in terms of
design, color, and font.
(3) A teller in a branch of a
nonfederally insured credit union may
accept account funds for federally
insured credit unions. No teller in a
nonfederally insured credit union may
display the official NCUA sign.
*
*
*
*
*
[FR Doc. E8–25116 Filed 10–21–08; 8:45 am]
BILLING CODE 7535–01–P
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Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2008–1116; Directorate
Identifier 2007–NM–231–AD]
RIN 2120–AA64
Airworthiness Directives; Boeing
Model 737–100, –200, –200C, –300,
–400, and –500 Series Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking
(NPRM).
SUMMARY: We propose to adopt a new
airworthiness directive (AD) for certain
Boeing Model 737–100, –200, –200C,
–300, –400, and –500 series airplanes.
For certain airplanes, this proposed AD
would require deactivation or
modification of the wiring to the
outboard landing lights, until the wire
bundles and electrical connectors have
been replaced. For all airplanes, this
proposed AD would also require an
inspection for any broken, damaged, or
missing fairleads, grommets, and wires
in the four electrical junction boxes of
the main wheel well, and corrective
actions if necessary. For certain
airplanes, this proposed AD would also
require replacement of certain wire
bundles for the landing lights and fuel
shutoff valves, and related investigative,
other specified, and corrective actions if
necessary. For certain airplanes, this
proposed AD would also require
replacement of certain electrical
connectors and backshell clamps. This
proposed AD results from reports of
uncommanded engine shutdowns and
burned and damaged wire bundles
associated with the outboard landing
lights and engine fuel shutoff valves.
This proposed AD also results from
reports of damaged and missing
grommets and broken and damaged
fairleads in the electrical junction boxes
of the main wheel well. We are
proposing this AD to prevent a hot short
between the outboard landing light and
fuel shutoff valve circuits, which could
result in an uncommanded engine
shutdown. We are also proposing this
AD to prevent corrosion of the electrical
connectors of the wing rear spars, which
could result in short circuits and
consequent incorrect functioning of
airplane systems needed for safe flight
and landing.
DATES: We must receive comments on
this proposed AD by December 8, 2008.
ADDRESSES: You may send comments by
any of the following methods:
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]]>Agencies
[Federal Register Volume 73, Number 205 (Wednesday, October 22, 2008)]
[Proposed Rules]
[Pages 62935-62937]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-25116]
=======================================================================
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 740
RIN 3133-AD52
Accuracy of Advertising and Notice of Insured Status
AGENCY: National Credit Union Administration (NCUA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: Section 740.4 of NCUA's rules requires that a federally
insured credit union continuously display the official NCUA sign at
every teller station or window where insured funds or deposits are
normally received. Section 740.4(c) requires that tellers accepting
share deposits for both federally insured credit unions and
nonfederally insured credit unions also post a second sign adjacent to
the official NCUA sign. Currently, the rules require this second sign
to list each federally insured credit union served by the teller along
with a statement that only these credit unions are federally insured.
Due to the evolution of shared branch networks it is now difficult for
some tellers to comply with this second signage requirement and,
accordingly, NCUA is proposing to revise the rule to replace the
required listing of credit unions with a statement that not all of the
credit unions served by the teller are federally insured and that
members should contact their credit union if they need more
information.
DATES: Comments must be received by November 21, 2008.
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 FCU Bylaws'' 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 https://www.ncua.gov/RegulationsOpinionsLaws/
comments 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 OGC Mail@ncua.gov.
FOR FURTHER INFORMATION CONTACT: Elizabeth Wirick, Staff Attorney,
Office of General Counsel, National Credit Union Administration, 1775
Duke Street, Alexandria, Virginia 22314-3428 or telephone: (703) 518-
6540.
SUPPLEMENTARY INFORMATION:
A. Background
Part 740 of NCUA's regulations addresses the notice and advertising
requirements applicable to credit unions insured by the National Credit
Union Share Insurance Fund (NCUSIF) administered by NCUA. 12 CFR part
740. Section 740.4(a) requires these federally insured credit unions
post a sign at all teller stations that normally receive deposits. This
official NCUA sign reads: ``Your savings federally insured to at least
$100,000 and backed by the full faith and credit of the United States
Government'' accompanied by the acronym ``NCUA'' and the words
``National Credit Union Administration, a U.S. Government Agency.'' 12
CFR 740.4(a). The official NCUA sign informs and reassures members that
their share deposits are guaranteed, to certain limits, by the U.S.
Government in the event the credit union fails.
Section 740.4(c) imposes additional requirements on federally
insured credit unions participating in shared branch networks.
Generally, federally insured credit unions are prohibited from
accepting funds at teller stations or windows where nonfederally
insured credit unions also receive deposits. 12 CFR 740.4(c). Tellers
in shared branch networks (e.g., ``Credit union centers, service
centers, or branches servicing more than one credit union'') are
currently exempted from this prohibition, but only if they display a
specific sign at each station or window above or beside the official
NCUA sign. Id. This second sign must state that ``[o]nly the following
credit unions serviced by this facility are federally insured by the
NCUA,'' followed by the full name of each federally insured credit
union displayed in lettering ``of such size and print to be clearly
legible
[[Page 62936]]
to all members conducting share or share deposit transactions.'' Id.
NCUA first adopted this requirement for a second sign in shared
branches back in 1971. 36 FR 902, 903 (Jan. 25, 1971). The requirement
ensures members of nonfederally insured credit unions are not confused
regarding the insurance status of their accounts when those members
make deposits through tellers shared with federally insured credit
unions and that display the mandatory official NCUA sign. 63 FR 10743,
10755 (March 5, 1998).
During the past 37 years, however, the nature of shared branching
has changed considerably. The first shared branches were local
operations involving just a few credit unions. Now, some shared branch
networks are national in scope and service hundreds, if not thousands,
of individual credit unions.\1\ Under these circumstances, NCUA
believes the requirement for by-name listing of each participating
federally insured credit union is problematic. Since the vast majority
of credit unions participating in the larger shared branch networks are
federally insured, members must now sift through a lengthy list of
credit unions to ascertain the insurance status of their particular
credit union. The length of the list would also require a large,
obtrusive sign, and it is difficult to keep the sign up-to-date as
federally insured credit unions frequently join or leave these
networks.
---------------------------------------------------------------------------
\1\ Two of the largest shared branch networks are Credit Union
Service Centers (CUSC) and the Financial Service Centers Cooperative
(FSCC). Currently, CUSC appears to have about 1,200 participating
federally insured credit unions and 22 participating nonfederally
insured credit unions. FSCC appears to have about 270 participating
federally insured credit unions and 12 participating nonfederally
insured credit unions. Further, these organizations interlink,
allowing deposits to be made through participants in one
organization for the accounts at participants in the other.
---------------------------------------------------------------------------
Share branch networks are not only increasing in size but are also
changing in the nature of the facilities they employ. The earliest
shared branches consisted of shared service facilities run by non-
credit union entities such as credit union service organizations. Now,
some shared branch networks are structured to allow credit unions to
use their own branches, rather than separate facilities, to service
members of other credit unions. Given this trend, NCUA understands that
some nonfederally insured credit unions participating in shared branch
networks may accept deposits for federally insured credit unions at the
nonfederally insured credit union's locations, and vice versa. The
current rule does not adequately address the signage requirements in
these situations, such as whether the official NCUA sign should be
placed in nonfederally insured credit unions accepting federally
insured share deposits.
B. Proposed Amendments to Part 740
The proposed revision to Sec. 740.4(c) retains the general
prohibition on federally insured credit unions receiving funds at any
teller station or window where any nonfederally insured credit union
also receives account funds. The proposal contains three exceptions to
this prohibition.
The first two exceptions permit tellers at federally insured credit
unions and shared branches operated by non-credit union entities to
receive deposits for nonfederally insured credit unions if these
tellers post a second sign adjacent to the official NCUA sign. In lieu
of a listing of all federally-insured credit unions, the revised second
sign will state that the credit union or facility participates in a
shared branch network and accepts deposits for members of other credit
unions, not all of which are federally insured. The revised second sign
will advise members to contact their credit union for information about
its insurance status.
The proposal requires the second sign to be conspicuous and to be
similar to the official NCUA sign in terms of design, color, and font.
NCUA will produce signs that meet this requirement and make the signs
available for purchase at a reasonable cost. Credit unions may either
use the NCUA-produced sign or produce their own sign, as long as the
sign meets the requirements of the rule.
The third exception to the general prohibition addresses signage
requirements at nonfederally insured credit unions. The proposal
clarifies that tellers in nonfederally insured credit unions may accept
deposits for federally insured credit unions as part of a shared branch
network. The proposal, however, forbids a nonfederally insured credit
union from displaying the official NCUA sign, as this could be very
confusing to the members of the nonfederally insured credit union.
Also, since the credit union will not display the official sign, there
is no need for it to display the second sign.
The current prohibition applies to tellers that accept deposits
from nonfederally insured credit unions and ``other institutions.'' As
far as the Board is aware, banks and thrifts are the only types of non-
credit union institutions that take deposits, and, currently, they are
all federally insured. Accordingly, there is no need for the rule to
address ``other institutions'' and the proposed rule deletes that
phrase. Also, although the rule only addresses deposit-taking,
federally insured credit unions must ensure that if they participate in
a shared branching network that includes a nondeposit investment sales
function, that function is physically separated from the deposit-taking
function. See NCUA Letter to Credit Unions No. 150, Sales of Mutual
Funds, Annuities, and Other Non-Deposit Investments, December 1993.
The proposed revisions also include additions to the definitions in
Sec. 740.1. 12 CFR 740.1. The phrase ``nonfederally insured credit
union'' is defined as a credit union with either no account insurance
or with primary account insurance from an entity other than NCUA. The
phrases ``insured credit union'' and ``federally insured credit
union,'' as used in the rule, both refer to a credit union with NCUA
account insurance.
C. 30-Day Comment Period
NCUA seeks public comment on the proposals discussed above. NCUA is
particularly interested in commenters' views about whether the
proposals are adequate to ensure that credit union members understand
the insurance status of their credit union accounts.
As a matter of agency policy, the NCUA Board generally provides a
60-day comment period for proposed regulations. NCUA's Interpretive
Ruling and Policy Statement (IRPS) 87-2, 52 FR 35231 (Sept. 18, 1987),
as amended by IRPS 03-02, 68 FR 31949 (May 29, 2003). In this case, the
NCUA Board believes a 30-day comment period will suffice because the
proposal simplifies an existing rule and eases compliance burdens for
federally insured credit unions.
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, defined as those under ten
million dollars in assets. This proposed rule will not impose any
regulatory burden and in fact will ease existing compliance burdens on
federally insured credit unions participating in shared branch networks
and accepting deposits for both federally insured and nonfederally
insured credit unions. The proposed 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.
[[Page 62937]]
Paperwork Reduction Act
NCUA has determined that the proposed rule would not increase
paperwork requirements under the Paperwork Reduction Act of 1995 and
regulations of the Office of Management and Budget. 44 U.S.C. 3501 et
seq.; 5 CFR part 1320.
Executive Order 13132
Executive Order 13132 encourages independent regulatory agencies to
consider the impact of their actions on state and local interests. In
adherence to fundamental federalism principles, NCUA, an independent
regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies
with the executive order. The proposed rule would not have substantial
direct 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 proposed rule does not constitute a policy that
has federalism implications for purposes of the executive order.
The Treasury and General Government Appropriations Act, 1999--
Assessment of Federal Regulations and Policies on Families
The NCUA has determined that the proposed rule would not affect
family well-being within the meaning of Sec. 654 of the Treasury and
General Government Appropriations Act, 1999, Public Law 105-277, 112
Stat. 2681 (1998).
List of Subjects in 12 CFR Part 740
Advertisements, Credit unions, Signs and symbols.
By the National Credit Union Administration Board on October 16,
2008.
Mary F. Rupp,
Secretary of the Board.
For the reasons set forth above, NCUA proposes to amend 12 CFR part
740 as follows.
PART 740--ACCURACY OF ADVERTISING AND NOTICE OF INSURED STATUS
1. The authority citation for part 740 continues to read as
follows:
Authority: 12 U.S.C. 1766, 1781, 1785, and 1789.
2. Amend Sec. 740.1 by revising paragraph (b), and adding
paragraph (c), to read as follows:
Sec. 740.1 Definitions.
* * * * *
(b) Insured credit union and federally insured credit union as used
in this part mean a credit union with National Credit Union
Administration share insurance.
(c) Nonfederally insured credit union as used in this part means a
credit union with either no account insurance or with primary account
insurance provided by some entity other than the National Credit Union
Administration.
3. Amend Sec. 740.4 by revising paragraph (c) to read as follows:
Sec. 740.4 Requirements for the official sign.
* * * * *
(c) To avoid any member confusion from the use of the official NCUA
sign, federally insured credit unions are prohibited from receiving
account funds at any teller station or window where any nonfederally
insured credit union also receives account funds. As exceptions to this
prohibition:
(1) A teller in a branch of a federally insured credit union may
accept account funds for nonfederally insured credit unions, but only
if the teller displays a conspicuous sign next to the official sign
that states ``This credit union participates in a shared branch network
with other credit unions and accepts share deposits for members of
those other credit unions. Not all of these other credit unions are
federally insured. If you need information on the insurance status of
your credit union, please contact your credit union directly.'' This
sign must be similar to the official sign in terms of design, color,
and font.
(2) A teller in a facility operated by a non-credit union entity
may accept account funds for both federally insured credit unions and
nonfederally insured credit unions, but only if the teller displays a
conspicuous sign next to the official sign stating ``This facility
accepts share deposits for multiple credit unions. Not all of these
credit unions are federally insured. If you need information on the
insurance status of your credit union, please contact your credit union
directly.'' This sign must be similar to the official sign in terms of
design, color, and font.
(3) A teller in a branch of a nonfederally insured credit union may
accept account funds for federally insured credit unions. No teller in
a nonfederally insured credit union may display the official NCUA sign.
* * * * *
[FR Doc. E8-25116 Filed 10-21-08; 8:45 am]
BILLING CODE 7535-01-P
