Conversions of Insured Credit Unions, 80678-80680 [2010-32308]

Agencies

• National Credit Union Administration

[Federal Register Volume 75, Number 246 (Thursday, December 23, 2010)]
[Rules and Regulations]
[Pages 80678-80680]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32308]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Parts 708a and 708b

RIN 3133-AD84; 3133-AD85


Conversions of Insured Credit Unions

AGENCY: National Credit Union Administration (NCUA).

ACTION: Interim final rule with request for comments.

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SUMMARY: NCUA is issuing final amendments to revise the definition of 
the phrase ``Regional Director'' in NCUA's rule on credit union to 
mutual savings bank conversions and to add the same revised definition 
of that phrase to NCUA's rule on conversions to nonfederal deposit 
insurance.

DATES: The rule is effective December 23, 2010. Comments must be 
received by January 24, 2011.

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/Resources/RegulationsOpinionsLaws/FinalRegulations.aspx. Follow the instructions 
for submitting comments.
    E-mail: Address to regcomments@ncua.gov. Include ``[Your name] 
Comments on ``Interim Final Rulemaking for Parts 708a and 708b--
Definition of ``Regional Director'' 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/Resources/RegulationsOpinionsLaws/FinalRegulations.aspx 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 
OGCMail@ncua.gov.

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

[[Page 80679]]


SUPPLEMENTARY INFORMATION:

Background

    In 2009, the NCUA Board created the NCUA Office of Consumer 
Protection (OCP) to become operational on January 1, 2010. The OCP is 
charged with responsibilities in the areas of credit union chartering, 
insurance and supervision, as well as consumer compliance. NCUA is in 
the process of moving responsibility for the review and approval of 
certain types of credit union conversions from the Regional Directors 
to the Director of the OCP, including credit union conversions to 
mutual savings banks or mutual savings associations (MSBs) in 12 CFR 
part 708a and the conversion from National Credit Union Share Insurance 
Fund (NCUSIF) share insurance to nonfederal share insurance in 12 CFR 
part 708b. To accommodate this reassignment of staff functions, the 
NCUA Board is adding the Director of the OCP to the definition of the 
phrase ``Regional Director'' in part 708a and adding a new definition 
of the phrase ``Regional Director'' to part 708b that mirrors the 
revised definition in part 708a.

Part 708a

    Part 708a governs conversions of federally-insured credit unions to 
MSBs. The definitions under part 708a are set forth in Sec.  708a.1. 12 
CFR 708a.1. Section 708a.1 currently defines the phrase ``Regional 
Director'' as the director of the NCUA regional office where a natural 
person credit union's main office is located, and for corporate credit 
unions, ``Regional Director'' means the director of NCUA's Office of 
Corporate Credit Unions. This final rule amends the definition of 
``Regional Director'' for natural person credit unions to include the 
Director of OCP.

Part 708b

    Part 708b governs credit union-to-credit union mergers and 
terminations of NCUSIF share insurance and conversions from NCUSIF 
share insurance to nonfederal share insurance. The definitions under 
part 708b are set forth in Sec.  708b.2. 12 CFR 708b.2. Unlike part 
708a, part 708b does not currently contain a definition of ``Regional 
Director.'' This final rule amends part 708b to add a definition of 
that phrase to Sec.  708b.2 identical to the parallel definition in 
part 708a.

 Interim Final Rule

    NCUA is issuing this rulemaking as an interim final rule effective 
upon publication in the Federal Register. The Administrative Procedure 
Act (APA), 5 U.S.C. 553, generally requires that before a rulemaking 
can be finalized it must first be published as a notice of proposed 
rulemaking with the opportunity for public comment, unless the agency 
for good cause finds that notice and public comment are impracticable, 
unnecessary, or contrary to the public interest. NCUA believes good 
cause exists for issuing these amendments without notice and public 
comment. The amendments to these rules are not substantive but merely 
update the regulations to provide NCUA with additional administrative 
flexibility.
    Additionally, the APA requires that a final rule must have a 
delayed effective date of 30 days from the date of publication, except 
for good cause. 5 U.S.C. 553(d). NCUA also finds good cause to waive 
the customary 30-day delayed effective date requirement under the APA. 
These revisions will, therefore, be effective immediately upon 
publication.
    NCUA does not anticipate comments on these changes and so is 
allowing only a 30-day comment period.

Regulatory Procedures

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires NCUA to prepare an analysis 
to describe any significant economic impact a proposed rule may have on 
a substantial number of small credit unions (those under $10 million in 
assets). Only a few credit unions convert in a given year. Accordingly, 
the NCUA Board certifies that the interim final rule will not have a 
significant economic impact on a substantial number of small credit 
unions, and, therefore, a regulatory flexibility analysis is not 
required.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in 
which an agency by rule creates a new paperwork burden on regulated 
entities or modifies an existing burden. 44 U.S.C. 3507(d). For 
purposes of the PRA, a paperwork burden may take the form of either a 
reporting or a recordkeeping requirement, both referred to as 
information collections. The revised definition does not impose any new 
paperwork burden.

Executive Order 13132

    Executive Order 13132 encourages independent regulatory agencies to 
consider the impact of their actions on state and local interests. In 
adherence to fundamental federalism principles, NCUA, an independent 
regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies 
with the executive order. The interim final rule will not have 
substantial direct effects on the states, on the connection between the 
national government and the states, or on the distribution of power and 
responsibilities among the various levels of government. NCUA has 
determined that this rule does not constitute a policy that has 
federalism implications for purposes of the executive order.

The Treasury and General Government Appropriations Act, 1999--
Assessment of Federal Regulations and Policies on Families

    NCUA has determined that the interim final rule will not affect 
family well-being within the meaning of section 654 of the Treasury and 
General Government Appropriations Act, 1999, Public Law 105-277, 112 
Stat. 2681 (1998).

Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act of 1996, 
Public Law 104-121, provides generally for congressional review of 
agency rules. A reporting requirement is triggered in instances where 
NCUA issues a final rule as defined by section 551 of the 
Administrative Procedure Act, 5 U.S.C. 551. While NCUA views these 
revisions as minor, the formal determination by the Office of 
Information and Regulatory Affairs of the Office of Management and 
Budget is pending.

List of Subjects

12 CFR Part 708a

    Charter conversions, Credit unions.

12 CFR Part 708b

    Credit unions, Mergers of credit unions, Reporting and 
recordkeeping requirements.

    By the National Credit Union Administration Board on December 
20, 2010.
Mary F. Rupp,
Secretary of the Board.

0
For the reasons stated in the preamble, the National Credit Union 
Administration amends 12 CFR parts 708a and 708b as follows:

PART 708a--CONVERSION OF INSURED CREDIT UNIONS TO MUTUAL SAVINGS 
BANKS

0
1. The authority citation for part 708a continues to read as follows:

    Authority:  12 U.S.C. 1766, 12 U.S.C. 1785(b).


[[Page 80680]]



0
2. Amend Sec.  708a.1 to add a definition of regional director in 
alphabetical order to read as follows:


Sec.  708a.1  Definitions.

* * * * *
    Regional director means either the director of the NCUA regional 
office for the region where a natural person credit union's main office 
is located or the director of the NCUA's Office of Consumer Protection. 
For corporate credit unions, regional director means the director of 
NCUA's Office of Corporate Credit Unions.
* * * * *

PART 708b--MERGERS OF FEDERALLY INSURED CREDIT UNIONS; VOLUNTARY 
TERMINATION OR CONVERSION OF INSURED STATUS

0
3. The authority citation for part 708b continues to read as follows:

    Authority:  12 U.S.C. 1752(7), 1766, 1785, 1786, 1789.

0
4. In Sec.  708b.2, redesignate paragraphs (h) through (k) as 
paragraphs (i) through (l) and add new paragraph (h) to read as 
follows:


Sec.  708b.2  Definitions.

* * * * *
    (h) Regional director means either the director of the NCUA 
regional office for the region where a natural person credit union's 
main office is located or the director of the NCUA's Office of Consumer 
Protection. For corporate credit unions, regional director means the 
director of NCUA's Office of Corporate Credit Unions.
* * * * *
[FR Doc. 2010-32308 Filed 12-22-10; 8:45 am]
BILLING CODE 7535-01-P