Regulatory Flexibility Regarding Ownership of Fixed Assets, 13082-13083 [E9-6730]
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Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Rules and Regulations
the contracting officer determines that
25 percent of the total annual tonnage
of bagged, processed, or fortified
commodities furnished under 7 U.S.C.
1731 et seq. has been, or will be,
transported from the Great Lakes port
range during that fiscal year.
(2) The contracting officer shall
consider commodity offers as offers for
delivery ‘‘intermodal bridge-point Great
Lakes port range’’ only if:
(i) The offer specifies delivery at a
marine cargo-handling facility that is
capable of loading ocean going vessels
at a Great Lakes port, as well as loading
ocean going conveyances such as barges
and container vans, and
(ii) The commodities will be moved
from one transportation conveyance to
another at such a facility.
(e) Multiple awards or delivery points.
(1) If more than one offer for the sale
of commodities is received or more than
one delivery point has been designated
in such offers, in order to achieve a
combination of a freight rate and
commodity award that produces the
lowest landed cost for the delivery of
the commodity to the foreign
destination, the contracting officer shall
evaluate offers submitted on a delivery
point by delivery point basis; however,
consideration shall be given to
prioritized ocean transport service in
determining lowest landed cost.
(2) The contracting officer may
determine that extenuating
circumstances preclude awards on the
basis of lowest landed cost. However, in
all such cases, commodities may be
transported in compliance with cargo
preference requirements as determined
by USAID.
(3) The contracting officer shall notify
USAID or, if applicable, the grantee
organization, that its shipping agent will
be notified of the vessel freight rate used
in determining the commodity contract
award. The grantee organization or
USAID will be responsible for finalizing
the charter or booking contract with the
vessel representing the freight rate so
used.
470.203
Cargo preference.
An agency having responsibility
under this subpart shall administer its
programs, with respect to this subpart,
in accordance with regulations
prescribed by the Secretary of
Transportation.
Dated: March 19, 2009.
Suzanne Hall,
Acting Administrator, Foreign Agricultural
Service, and Acting Executive Vice President,
Commodity Credit Corporation.
[FR Doc. E9–6487 Filed 3–25–09; 8:45 am]
BILLING CODE 3410–10–P
VerDate Nov<24>2008
16:51 Mar 25, 2009
Jkt 217001
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Parts 701 and 742
RIN 3133–AD53
Regulatory Flexibility Regarding
Ownership of Fixed Assets
AGENCY: National Credit Union
Administration (NCUA).
ACTION: Final rule.
SUMMARY: NCUA is amending its
Regulatory Flexibility (RegFlex)
Program to provide additional flexibility
to qualifying federal credit unions
(FCUs) when acquiring unimproved
land for future expansion. Previously,
when an FCU acquired unimproved
land for future expansion and did not
fully occupy the completed premises
within one year, it was required to
partially occupy the completed
premises within three years or obtain a
waiver. This amendment increases the
three years to six years for RegFlex
FCUs without a waiver. NCUA is also
making conforming amendments to its
fixed asset rule to be consistent with the
RegFlex changes.
DATES: The rule is effective April 27,
2009.
FOR FURTHER INFORMATION CONTACT:
Frank Kressman, Staff Attorney, Office
of General Counsel, National Credit
Union Administration, 1775 Duke
Street, Alexandria, Virginia 22314–
3428, or telephone: (703) 518–6540.
SUPPLEMENTARY INFORMATION:
branch office, suboffice, service center,
parking lot, facility, real estate where a
credit union transacts or will transact
business, office furnishings, office
machines, computer hardware and
software, automated terminals, and
heating and cooling equipment.
Section 701.36 prohibits an FCU with
$1 million or more in assets from
investing in fixed assets, the aggregate of
which exceeds five percent of the FCU’s
shares and retained earnings; although
upon an FCU’s application, a regional
director may set a higher limit. 12 CFR
701.36(a)(1)–(2). If an FCU acquires
premises, as broadly defined in
§ 701.36(e), for future expansion and
does not fully occupy the space within
one year, its board must have a
resolution in place by the end of that
year with plans for full occupation and
make those plans available to NCUA
upon request. 12 CFR 701.36(b)(1).
Additionally, the FCU must partially
occupy the premises within a
reasonable period, not to exceed three
years, unless the FCU obtains a waiver
within 30 months of acquiring the
premises. 12 CFR § 701.36(b)(1)–(2). In
this rulemaking, NCUA is only
addressing the circumstance where an
FCU is acquiring unimproved land but
no other kind of premises.
3. Regulatory Flexibility Program
A. Background
1. Proposal
NCUA issued proposed amendments
to its RegFlex and fixed assets rules in
September 2008 as summarized above.
73 FR 57013 (October 1, 2008). NCUA
received six comment letters on the
proposal: three from credit unions, two
from credit union trade associations,
and one from a bank trade association.
All commenters except the bank trade
association support the amendments.
The RegFlex Program exempts from
certain regulatory restrictions and grants
additional powers to those FCUs that
have demonstrated sustained superior
performance as measured by CAMEL
ratings and net worth classifications. 12
CFR 742.1. An FCU may qualify for
RegFlex treatment automatically or by
application to the appropriate regional
director. 12 CFR 742.2. Also, an FCU’s
RegFlex authority can be lost or
revoked. 12 CFR 742.3.
B. Discussion
2. Fixed Assets
The Federal Credit Union Act
authorizes an FCU to purchase, hold,
and dispose of property necessary or
incidental to its operations. 12 U.S.C.
1757(4). Generally, the fixed asset rule
provides limits on fixed asset
investments, establishes occupancy and
other requirements for acquired and
abandoned premises, and prohibits
certain transactions. 12 CFR 701.36.
Fixed assets are defined in § 701.36(e) as
premises, furniture, fixtures, and
equipment and include any office,
PO 00000
Frm 00028
Fmt 4700
Sfmt 4700
Although a RegFlex eligible FCU is
exempt from the five percent aggregate
limit on fixed asset investments under
the current rule, it is not exempt from
the requirement to partially occupy
premises acquired for future expansion
within three years or request a waiver of
this requirement. 12 CFR 701.36(a),
701.36(b)(2), 701.36(d), 742.4(a)(3).
Where an FCU is acquiring unimproved
land, the partial occupancy requirement
often is more difficult to satisfy than if
the FCU were purchasing premises with
an existing branch building. The Board
is aware that some FCUs contend the
fixed asset rule’s three-year partial
occupancy requirement, even with a
waiver option, is burdensome and an
unnecessary level of oversight for
E:\FR\FM\26MRR1.SGM
26MRR1
Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Rules and Regulations
RegFlex FCUs that have demonstrated
sustained superior performance.
Although the NCUA Board believes
additional regulatory relief can and
should be granted, the time limit for an
FCU to fulfill the partial occupancy
requirement cannot be unlimited. That
would be the equivalent of an FCU
making an impermissible real estate
investment and also could cause serious
safety and soundness concerns. NCUA
recognizes, however, that many real
estate transactions are complex, time
consuming, and can involve a host of
wide-ranging issues that must be
addressed before an FCU is ready to
occupy the premises. This is especially
true in the unimproved land context
considering the addition of
construction-related issues.
Accordingly, NCUA is extending the
three-year time period to six years for
RegFlex FCUs but only with respect to
the acquisition of unimproved land.
NCUA believes six years is a sufficiently
long time period to provide RegFlex
FCUs with the flexibility they need to
manage their fixed asset portfolios, in
any context, free of unnecessary
regulation and consistent with safe and
sound credit union operations. All other
substantive aspects of the fixed asset
rule remain unchanged, including an
FCU’s ability to request a waiver of the
partial occupancy requirement. NCUA
adopts the amendments as proposed
without change.
C. 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 entities (primarily
those under ten million dollars in
assets). This rule provides additional
flexibility and reduces regulatory
burden. Accordingly, this rule will not
have a significant economic impact on
a substantial number of small credit
unions, and therefore, no regulatory
flexibility analysis is required.
Small Business Regulatory Enforcement
Fairness Act
The Small Business Regulatory
Enforcement Fairness Act (SBREFA) of
1996, Public Law 104–121, provides
generally for congressional review of
agency rules. A reporting requirement is
triggered in instances where NCUA
issues a final rule as defined by Section
551 of the Administrative Procedures
Act. 5 U.S.C. 551. The Office of
Information and Regulatory Affairs, an
office within the Office of Management
and Budget (OMB), has determined that,
VerDate Nov<24>2008
16:51 Mar 25, 2009
Jkt 217001
13083
for purposes of SBREFA, this is not a
major rule.
Section 701.35 is also authorized by 42
U.S.C. 4311–4312.
Paperwork Reduction Act
NCUA has determined that this rule
will not increase paperwork
requirements under the Paperwork
Reduction Act of 1995 and regulations
of OMB.
■
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 final rule will not have a
substantial direct effect on the states, on
the relationship 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 final rule does not
constitute a policy that has federalism
implications for purposes of the
executive order.
The Treasury and General Government
Appropriations Act, 1999—Assessment
of Federal Regulations and Policies on
Families
NCUA has determined that this final
rule will not affect family well-being
within the meaning of section 654 of the
Treasury and General Government
Appropriations Act, 1999, Public Law
105–277, 112 Stat. 2681 (1998).
List of Subjects
12 CFR Part 701
Credit unions.
2. Section 701.36(d) introductory text
is amended by adding a sentence
between the first and second sentences
to read as follows:
§ 701.36
FCU Ownership of fixed assets.
*
*
*
*
*
(d) * * * Those federal credit unions
are also exempt from the three-year
partial occupancy requirement
described in paragraph (b) of this
section when acquiring unimproved
land for future expansion pursuant to
the terms of section 742.4(a)(3) of this
chapter. * * *
*
*
*
*
*
PART 742—REGULATORY
FLEXIBILITY PROGRAM
3. The authority citation for part 742
continues to read as follows:
■
Authority: 12 U.S.C. 1756, 1766.
4. Section 742.4(a)(3) is amended by
adding two sentences at the end to read
as follows:
■
§ 742.4
RegFlex Relief.
(a) * * *
(3) * * * Section 701.36(b)(2) of this
chapter concerning the three-year
partial occupancy requirement when
acquiring unimproved land for future
expansion; RegFlex credit unions are
instead subject to a six-year partial
occupancy requirement when acquiring
unimproved land but remain subject to
all other provisions of that section
including the waiver provision;
*
*
*
*
*
[FR Doc. E9–6730 Filed 3–25–09; 8:45 am]
BILLING CODE 7535–01–P
12 CFR Part 742
Credit unions, Reporting and
recordkeeping requirements.
By the National Credit Union
Administration Board on March 19, 2009.
Mary Rupp,
Secretary of the Board.
FEDERAL HOUSING FINANCE
AGENCY
12 CFR Part 1229
RIN 2590–AA21
For the reasons discussed above,
NCUA amends 12 CFR parts 701 and
742 as follows:
Capital Classifications and Critical
Capital Levels for the Federal Home
Loan Banks
PART 701—ORGANIZATION AND
OPERATIONS OF FEDERAL CREDIT
UNIONS
AGENCY: Federal Housing Finance
Agency.
ACTION: Interim final rule; extension of
comment period.
■
1. The authority citation for part 701
continues to read as follows:
■
Authority: 12 U.S.C. 1752(5), 1755, 1756,
1757, 1759, 1761a, 1761b, 1766, 1767, 1782,
1784, 1787, and 1789. Section 701.6 is also
authorized by 31 U.S.C. 3717. Section 701.31
is also authorized by 15 U.S.C. 1601 et seq.,
42 U.S.C. 1861 and 42 U.S.C. 3601–3610.
PO 00000
Frm 00029
Fmt 4700
Sfmt 4700
SUMMARY: The Federal Housing Finance
Agency (FHFA) published in the
Federal Register of January 30, 2009, an
interim final rule with request for
comments that implemented the
statutory requirement of the Housing
and Economic Recovery Act of 2008 that
E:\FR\FM\26MRR1.SGM
26MRR1
Agencies
[Federal Register Volume 74, Number 57 (Thursday, March 26, 2009)]
[Rules and Regulations]
[Pages 13082-13083]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-6730]
=======================================================================
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Parts 701 and 742
RIN 3133-AD53
Regulatory Flexibility Regarding Ownership of Fixed Assets
AGENCY: National Credit Union Administration (NCUA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: NCUA is amending its Regulatory Flexibility (RegFlex) Program
to provide additional flexibility to qualifying federal credit unions
(FCUs) when acquiring unimproved land for future expansion. Previously,
when an FCU acquired unimproved land for future expansion and did not
fully occupy the completed premises within one year, it was required to
partially occupy the completed premises within three years or obtain a
waiver. This amendment increases the three years to six years for
RegFlex FCUs without a waiver. NCUA is also making conforming
amendments to its fixed asset rule to be consistent with the RegFlex
changes.
DATES: The rule is effective April 27, 2009.
FOR FURTHER INFORMATION CONTACT: Frank Kressman, 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
1. Proposal
NCUA issued proposed amendments to its RegFlex and fixed assets
rules in September 2008 as summarized above. 73 FR 57013 (October 1,
2008). NCUA received six comment letters on the proposal: three from
credit unions, two from credit union trade associations, and one from a
bank trade association. All commenters except the bank trade
association support the amendments.
2. Fixed Assets
The Federal Credit Union Act authorizes an FCU to purchase, hold,
and dispose of property necessary or incidental to its operations. 12
U.S.C. 1757(4). Generally, the fixed asset rule provides limits on
fixed asset investments, establishes occupancy and other requirements
for acquired and abandoned premises, and prohibits certain
transactions. 12 CFR 701.36. Fixed assets are defined in Sec.
701.36(e) as premises, furniture, fixtures, and equipment and include
any office, branch office, suboffice, service center, parking lot,
facility, real estate where a credit union transacts or will transact
business, office furnishings, office machines, computer hardware and
software, automated terminals, and heating and cooling equipment.
Section 701.36 prohibits an FCU with $1 million or more in assets
from investing in fixed assets, the aggregate of which exceeds five
percent of the FCU's shares and retained earnings; although upon an
FCU's application, a regional director may set a higher limit. 12 CFR
701.36(a)(1)-(2). If an FCU acquires premises, as broadly defined in
Sec. 701.36(e), for future expansion and does not fully occupy the
space within one year, its board must have a resolution in place by the
end of that year with plans for full occupation and make those plans
available to NCUA upon request. 12 CFR 701.36(b)(1). Additionally, the
FCU must partially occupy the premises within a reasonable period, not
to exceed three years, unless the FCU obtains a waiver within 30 months
of acquiring the premises. 12 CFR Sec. 701.36(b)(1)-(2). In this
rulemaking, NCUA is only addressing the circumstance where an FCU is
acquiring unimproved land but no other kind of premises.
3. Regulatory Flexibility Program
The RegFlex Program exempts from certain regulatory restrictions
and grants additional powers to those FCUs that have demonstrated
sustained superior performance as measured by CAMEL ratings and net
worth classifications. 12 CFR 742.1. An FCU may qualify for RegFlex
treatment automatically or by application to the appropriate regional
director. 12 CFR 742.2. Also, an FCU's RegFlex authority can be lost or
revoked. 12 CFR 742.3.
B. Discussion
Although a RegFlex eligible FCU is exempt from the five percent
aggregate limit on fixed asset investments under the current rule, it
is not exempt from the requirement to partially occupy premises
acquired for future expansion within three years or request a waiver of
this requirement. 12 CFR 701.36(a), 701.36(b)(2), 701.36(d),
742.4(a)(3). Where an FCU is acquiring unimproved land, the partial
occupancy requirement often is more difficult to satisfy than if the
FCU were purchasing premises with an existing branch building. The
Board is aware that some FCUs contend the fixed asset rule's three-year
partial occupancy requirement, even with a waiver option, is burdensome
and an unnecessary level of oversight for
[[Page 13083]]
RegFlex FCUs that have demonstrated sustained superior performance.
Although the NCUA Board believes additional regulatory relief can
and should be granted, the time limit for an FCU to fulfill the partial
occupancy requirement cannot be unlimited. That would be the equivalent
of an FCU making an impermissible real estate investment and also could
cause serious safety and soundness concerns. NCUA recognizes, however,
that many real estate transactions are complex, time consuming, and can
involve a host of wide-ranging issues that must be addressed before an
FCU is ready to occupy the premises. This is especially true in the
unimproved land context considering the addition of construction-
related issues. Accordingly, NCUA is extending the three-year time
period to six years for RegFlex FCUs but only with respect to the
acquisition of unimproved land. NCUA believes six years is a
sufficiently long time period to provide RegFlex FCUs with the
flexibility they need to manage their fixed asset portfolios, in any
context, free of unnecessary regulation and consistent with safe and
sound credit union operations. All other substantive aspects of the
fixed asset rule remain unchanged, including an FCU's ability to
request a waiver of the partial occupancy requirement. NCUA adopts the
amendments as proposed without change.
C. 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 entities (primarily those under ten million
dollars in assets). This rule provides additional flexibility and
reduces regulatory burden. Accordingly, this rule will not have a
significant economic impact on a substantial number of small credit
unions, and therefore, no regulatory flexibility analysis is required.
Small Business Regulatory Enforcement Fairness Act
The Small Business Regulatory Enforcement Fairness Act (SBREFA) of
1996, Public Law 104-121, provides generally for congressional review
of agency rules. A reporting requirement is triggered in instances
where NCUA issues a final rule as defined by Section 551 of the
Administrative Procedures Act. 5 U.S.C. 551. The Office of Information
and Regulatory Affairs, an office within the Office of Management and
Budget (OMB), has determined that, for purposes of SBREFA, this is not
a major rule.
Paperwork Reduction Act
NCUA has determined that this rule will not increase paperwork
requirements under the Paperwork Reduction Act of 1995 and regulations
of OMB.
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 final rule will not have a substantial
direct effect on the states, on the relationship 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 final rule does not constitute a policy that has
federalism implications for purposes of the executive order.
The Treasury and General Government Appropriations Act, 1999--
Assessment of Federal Regulations and Policies on Families
NCUA has determined that this final rule will not affect family
well-being within the meaning of section 654 of the Treasury and
General Government Appropriations Act, 1999, Public Law 105-277, 112
Stat. 2681 (1998).
List of Subjects
12 CFR Part 701
Credit unions.
12 CFR Part 742
Credit unions, Reporting and recordkeeping requirements.
By the National Credit Union Administration Board on March 19,
2009.
Mary Rupp,
Secretary of the Board.
0
For the reasons discussed above, NCUA amends 12 CFR parts 701 and 742
as follows:
PART 701--ORGANIZATION AND OPERATIONS OF FEDERAL CREDIT UNIONS
0
1. The authority citation for part 701 continues to read as follows:
Authority: 12 U.S.C. 1752(5), 1755, 1756, 1757, 1759, 1761a,
1761b, 1766, 1767, 1782, 1784, 1787, and 1789. Section 701.6 is also
authorized by 31 U.S.C. 3717. Section 701.31 is also authorized by
15 U.S.C. 1601 et seq., 42 U.S.C. 1861 and 42 U.S.C. 3601-3610.
Section 701.35 is also authorized by 42 U.S.C. 4311-4312.
0
2. Section 701.36(d) introductory text is amended by adding a sentence
between the first and second sentences to read as follows:
Sec. 701.36 FCU Ownership of fixed assets.
* * * * *
(d) * * * Those federal credit unions are also exempt from the
three-year partial occupancy requirement described in paragraph (b) of
this section when acquiring unimproved land for future expansion
pursuant to the terms of section 742.4(a)(3) of this chapter. * * *
* * * * *
PART 742--REGULATORY FLEXIBILITY PROGRAM
0
3. The authority citation for part 742 continues to read as follows:
Authority: 12 U.S.C. 1756, 1766.
0
4. Section 742.4(a)(3) is amended by adding two sentences at the end to
read as follows:
Sec. 742.4 RegFlex Relief.
(a) * * *
(3) * * * Section 701.36(b)(2) of this chapter concerning the
three-year partial occupancy requirement when acquiring unimproved land
for future expansion; RegFlex credit unions are instead subject to a
six-year partial occupancy requirement when acquiring unimproved land
but remain subject to all other provisions of that section including
the waiver provision;
* * * * *
[FR Doc. E9-6730 Filed 3-25-09; 8:45 am]
BILLING CODE 7535-01-P