Accuracy of Advertising and Notice of Insured Status, 82323-82325 [2010-32127]
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Federal Register / Vol. 75, No. 250 / Thursday, December 30, 2010 / Proposed Rules
b. Remove section 21(e).
Appendix G to Part 225—Capital
Adequacy Guidelines for Bank Holding
Companies: Internal Ratings-Based and
Advanced Measurement Approaches
Part I. General Provisions
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Section 3. Minimum Risk-Based Capital
Requirements
(a)(1) Except as modified by paragraph (c)
of this section or by section 23 of this
appendix, each bank holding company must
meet a minimum:
(i) Total risk-based capital ratio of 8.0
percent; and
(ii) Tier 1 risk-based capital ratio of 4.0
percent.
(2) A bank holding company’s total riskbased capital ratio is the lower of:
(i) Its total qualifying capital to total riskweighted assets, and
(ii) Its total risk-based capital ratio as
calculated under 12 CFR part 208, appendix
A, as adjusted to include certain debt or
equity instruments issued before May 19,
2010 as described in section 171(b)(4)(B) of
the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank Act).
(3) A bank holding company’s tier 1 riskbased capital ratio is the lower of:
(i) Its tier 1 capital to total risk-weighted
assets, and
(ii) Its tier 1 risk-based capital ratio as
calculated under 12 CFR part 208, appendix
A, as adjusted to include certain debt or
equity instruments issued before May 19,
2010 as described in section 171(b)(4)(B) of
the Dodd-Frank Act.
(b) Each bank holding company must hold
capital commensurate with the level and
nature of all risks to which the bank holding
company is exposed.
(c) When a bank holding company subject
to [the market risk rule] calculates its riskbased capital requirements under this
appendix, the bank holding company must
also refer to [the market risk rule] for
supplemental rules to calculate risk-based
capital requirements adjusted for market risk.
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Federal Deposit Insurance Corporation
12 CFR Chapter III
Authority for Issuance
For the reasons stated in the common
preamble, the Federal Deposit Insurance
Corporation proposes to amend Part 325
of Chapter III of Title 12, Code of the
Federal Regulations as follows:
srobinson on DSKHWCL6B1PROD with PROPOSALS
PART 325—CAPITAL MAINTENANCE
9. The authority citation for part 325
continues to read as follows:
Authority: 12 U.S.C. 1815(a), 1815(b),
1816, 1818(a), 1818(b), 1818(c), 1818(t),
1819(Tenth), 1828(c), 1828(d), 1828(i),
1828(n), 1828(o), 1831o, 1835, 3907, 3909,
4808; Pub. L. 102–233, 105 Stat. 1761, 1789,
1790, (12 U.S.C. 1831n note); Pub. L. 102–
242, 105 Stat. 2236, as amended by Pub. L.
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17:52 Dec 29, 2010
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82323
Appendix A to Part 325—Statement of
Policy on Risk-Based Capital
(ii) Its total risk-based capital ratio as
calculated under appendix A of this part.
(3) A bank’s tier 1 risk-based capital ratio
is the lower of:
(i) Its tier 1 capital to total risk-weighted
assets, and
(ii) Its tier 1 risk-based capital ratio as
calculated under appendix A of this part.
(b) Each bank must hold capital
commensurate with the level and nature of
all risks to which the bank is exposed.
(c) When a bank subject to appendix C of
this part calculates its risk-based capital
requirements under this appendix, the bank
must also refer to appendix C of this part for
supplemental rules to calculate risk-based
capital requirements adjusted for market risk.
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103–325, 108 Stat. 2160, 2233 (12 U.S.C.
1828 note); Pub. L. 102–242, 105 Stat. 2236,
2386, as amended by Pub. L. 102–550, 106
Stat. 3672, 4089 (12 U.S.C. 1828 note).
10. Amend Appendix A to part 325 as
follows:
a. In section II.C, revise the first
sentence of the introductory text;
b. In sections II.D, and II.E,
redesignate footnotes 45 through 50 as
footnotes 46 through 51.
c. In section II.C, Category 4, add new
paragraph (d) and a new footnote 45.
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II. Procedures for Computing Risk-Weighted
Assets
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C. Risk Weights for Balance Sheet Assets (see
Table II)
The risk based capital framework contains
five risk weight categories—0 percent, 20
percent, 50 percent, 100 percent, and 200
percent. * * *
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Category 4—100 Percent Risk Weight.
* * *
(d) Subject to the requirements below, a
bank may assign an asset not included in the
categories above to the risk weight category
applicable under the capital guidelines for
bank holding companies,45 provided that all
of the following conditions apply:
(1) The bank is not authorized to hold the
asset under applicable law other than debt
previously contracted or similar authority;
and
(2) The risks associated with the asset are
substantially similar to the risks of assets that
are otherwise assigned to a risk weight
category less than 100 percent under this
appendix.
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11. In Appendix D to part 325:
a. Revise section 3 to read as set forth
below; and
b. Remove section 21(e).
Appendix D to Part 325—Capital
Adequacy Guidelines for Banks:
Internal Ratings-Based and Advanced
Measurement Approaches
Part I. General Provisions
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Section 3. Minimum Risk-Based Capital
Requirements
(a) (1) Except as modified by paragraph (c)
of this section or by section 23 of this
appendix, each bank must meet a minimum:
(i) Total risk-based capital ratio of 8.0
percent; and
(ii) Tier 1 risk-based capital ratio of 4.0
percent.
(2) A bank’s total risk-based capital ratio is
the lower of:
(i) Its total qualifying capital to total riskweighted assets, and
45 See
PO 00000
12 CFR part 225, appendix A.
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Dated: December 15, 2010.
John Walsh,
Comptroller of the Currency.
By order of the Board of Governors of the
Federal Reserve System, December 14, 2010.
Robert deV. Frierson,
Deputy Secretary of the Board.
Dated at Washington, DC, this 14th day of
December 2010.
By order of the Board of Directors.
Robert E. Feldman,
Executive Secretary, Federal Deposit
Insurance Corporation.
[FR Doc. 2010–32190 Filed 12–29–10; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P;
6720–01–P
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Part 740
RIN 3133–AD83
Accuracy of Advertising and Notice of
Insured Status
National Credit Union
Administration (NCUA).
ACTION: Proposed rule with request for
comments.
AGENCY:
The NCUA Board proposes to
revise certain provisions of NCUA’s
official advertising statement rule.
Specifically, insured credit unions will
be required to include the statement in
all radio and television advertisements,
annual reports, and statements of
condition required to be published by
law. The NCUA Board also proposes to
define the term ‘‘advertisement’’ and
clarify size requirements for the official
advertising statement in print materials.
DATES: Comments must be received on
or before February 28, 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.
SUMMARY:
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Federal Register / Vol. 75, No. 250 / Thursday, December 30, 2010 / Proposed Rules
• 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 Proposed Rule 740,
Accuracy of Advertising and Notice of
Insured Status’’ 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 OGCMail@ncua.gov.
FOR FURTHER INFORMATION CONTACT:
Frank Kressman, Senior Staff Attorney,
Office of General Counsel, at the above
address or telephone (703) 518–6540.
Section
740.5 of NCUA’s regulations requires
each insured credit union to include
NCUA’s official advertising statement in
all of its advertisements, including on
its main internet page. 12 CFR 740.5(a).
The official advertising statement is in
substance as follows: ‘‘This credit union
is federally insured by the National
Credit Union Administration.’’ Insured
credit unions, at their option, may use
the short title ‘‘Federally insured by
NCUA’’ or a reproduction of NCUA’s
official sign, as depicted in § 740.4(b), as
the official advertising statement. 12
CFR 740.4(b); 12 CFR 740.5(b).
The official advertising statement
must be in a size and print that is clearly
legible. 12 CFR 740.5(b). If the official
sign is used as the official advertising
statement, an insured credit union may
alter the font size to ensure its legibility
as provided in § 740.4(b)(2). 12 CFR
740.4(b)(2); 12 CFR 740.5(b).
A number of advertisements in the
current rule, however, need not include
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SUPPLEMENTARY INFORMATION:
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the official advertising statement.1
Among those currently exempted
advertisements are radio and television
advertisements that do not exceed 30
seconds in time. The NCUA Board
proposes to rescind these exemptions.
NCUA believes that it is important for
consumers of these kinds of
advertisements to know that the share
accounts in the advertising credit union
are federally insured by NCUA. The
NCUA Board believes that the benefits
of this action to consumers and credit
unions, namely, enhanced consumer
confidence and NCUA name
recognition, will far outweigh the minor
inconvenience associated with requiring
the inclusion of the official advertising
statement in this context. The NCUA
Board intends for this proposal also to
apply to television display
advertisements.
With respect to print advertisements,
the NCUA Board proposes to clarify the
requirement that the official advertising
statement must be in a size and print
that is clearly legible. 12 CFR 740.5(b).
NCUA’s regulations do not dictate a
specific font size be used for the official
advertising statement, and NCUA
continues to believe this makes sense
considering advertisements can range
from small magazine advertisements to
very large billboard advertisements. The
1 Exempted advertisements in the current rule
include: (1) Statements of condition and reports of
condition of an insured credit union which are
required to be published by state or federal law or
regulation; (2) Credit union supplies such as
stationery (except when used for circular letters),
envelopes, deposit slips, checks, drafts, signature
cards, account passbooks, and noninsurable
certificates; (3) Signs or plates in the credit union
office or attached to the building or buildings in
which the offices are located; (4) Listings in
directories; (5) Advertisements not setting forth the
name of the insured credit union; (6) Display
advertisements in credit union directories, provided
the name of the credit union is listed on any page
in the directory with a symbol or other descriptive
matter indicating it is insured; (7) Joint or group
advertisements of credit union services where the
names of insured credit unions and noninsured
credit unions are listed and form a part of such
advertisement; (8) Advertisements by radio that do
not exceed thirty (30) seconds in time; (9)
Advertisements by television, other than display
advertisements, that do not exceed thirty (30)
seconds in time; (10) Advertisements that because
of their type or character would be impractical to
include the official advertising statement, including
but not limited to, promotional items such as
calendars, matchbooks, pens, pencils, and key
chains; (11) Advertisements that contain a
statement to the effect that the credit union is
insured by the National Credit Union
Administration, or that its accounts and shares or
members are insured by the Administration to the
maximum insurance amount for each member or
shareholder; (12) Advertisements that do not relate
to member accounts, including but not limited to
advertisements relating to loans by the credit union,
safekeeping box business or services, traveler’s
checks on which the credit union is not primarily
liable, and credit life or disability insurance. 12
CFR § 740.5(c).
PO 00000
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NCUA Board requires, however, that in
any particular advertisement, in
addition to legibility, the font size for
the official advertising statement may be
no smaller than the smallest font size
used in other portions of the
advertisement intended to convey
information to the consumer.
Also, the NCUA Board believes that
an insured credit union’s annual report
and other statements of condition
required to be published by law are
significant and a form of advertisement
and must include the official advertising
statement in a prominent position.
Accordingly, the NCUA Board proposes
to amend § 740.5 in this regard.
In summary, the proposal rescinds
three exemptions from the general rule
requiring the use of the official
advertising statement. Those three
include radio and television
advertisements that do not exceed 30
seconds in time and annual reports and
other statements of condition required
to be published by law. All other
exemptions in § 740.5(c) remain in
place. Finally, the current rule does not
define the term ‘‘advertisement.’’ The
NCUA Board proposes to clarify the rule
by proposing such a definition. The
proposed definition is consistent with
that used by the Federal Deposit
Insurance Corporation in its official
advertising statement rule. 12 CFR part
328.
Regulatory Procedures
Regulatory Flexibility Act
The Regulatory Flexibility Act
requires NCUA to prepare an analysis to
describe any significant economic
impact any proposed regulation may
have on a substantial number of small
credit unions (those under $10 million
in assets). The proposed amendments
enhance consumer confidence and do
not impose a significant burden on
credit unions. Accordingly, the NCUA
has determined and certifies that the
proposed rule, if adopted, will not have
a significant economic impact on a
substantial number of small credit
unions within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601–
612.
Paperwork Reduction Act
The proposed rule does not contain a
‘‘collection of information’’ within the
meaning of section 3502(3) of the
Paperwork Reduction Act of 1995 (44
U.S.C. 3502(3)) and would not increase
paperwork requirements under the
Paperwork Reduction Act of 1995 or
regulations of the Office of Management
and Budget.
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Federal Register / Vol. 75, No. 250 / Thursday, December 30, 2010 / Proposed Rules
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 effect 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
(b) Advertisement as used in this part
means a commercial message, in any
medium, that is designed to attract
public attention or patronage to a
product or business.
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3. Amend § 740.5 by revising
paragraph (a) to read as follows:
§ 740.5 Requirements for the official
advertising statement.
(a) Each insured credit union must
include the official advertising
statement, prescribed in paragraph (b) of
this section, in all of its advertisements
including, but not limited to, annual
reports, statements of condition
required to be published by law, radio
and television advertisements, and on
its main Internet page, except as
provided in paragraph (c) of this
section.
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4. Amend § 740.5 by:
a. Revising the third sentence of
paragraph (b);
b. Removing and paragraphs (c)(1),
(c)(8) and (c)(9); and
c. Redesignating paragraphs (c)(2),
(c)(3), (c)(4), (c)(5), (c)(6), (c)(7), (c)(10),
(c)(11), and (c)(12), as paragraphs (c)(1)
through (c)(9) respectively.
The revised text reads as follows:
82325
19. This proposed AD results from
mandatory continuing airworthiness
information (MCAI) issued by EASA, to
rescind EASA AD 2010–0083. The
MCAI specifies the following:
It has been assessed that multiple NRV
[non return valve] failures in combination
with certain trapped fuel cases could
potentially increase the quantity of unusable
fuel on the aeroplane, possibly leading to fuel
starvation which could result in engines inflight shut down and would constitute an
unsafe condition. To prevent and detect this
condition, EASA issued EASA AD 2010–
0083.
Based on in service experience, mainly on
the results of the operational test required by
EASA AD 2010–0083, Airbus has performed
a safety analysis on the NRV to check if the
safety objectives are met.
This analysis of the Collector Cell motive
flow line NRV, taking into account all failure
scenarios, concludes that the previous non
compliance can be alleviated. Consequently,
no unsafe condition exists any more on the
affected NRV.
DEPARTMENT OF TRANSPORTATION
For the reasons described above,
EASA AD 2010–0083 is cancelled.
The proposed AD would rescind the
parallel FAA AD 2009–18–19.
DATES: We must receive comments on
this proposed AD by February 14, 2011.
ADDRESSES: You may send comments by
any of the following methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: (202) 493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations,
M–30, West Building Ground Floor,
Room W12–140, 1200 New Jersey
Avenue, SE., Washington, DC 20590.
• Hand Delivery: U.S. Department of
Transportation, Docket Operations,
M–30, West Building Ground Floor,
Room W12–40, 1200 New Jersey
Avenue, SE., Washington, DC, between
9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays.
For the reasons discussed above, the
NCUA Board proposes to amend 12 CFR
part 740 as follows:
Federal Aviation Administration
Examining the AD Docket
PART 740—ACCURACY OF
ADVERTISING AND NOTICE OF
INSURED STATUS
[Docket No. FAA–2010–1277; Directorate
Identifier 2010–NM–218–AD]
NCUA has determined that this
proposed rule would not affect family
well-being within the meaning of
section 654 of the Treasury and General
Government Appropriations Act, 1999,
Pub. L. 105–277, 112 Stat. 2681 (1998).
Agency Regulatory Goal
NCUA’s goal is to promulgate clear
and understandable regulations that
impose minimal regulatory burden. We
request your comments on whether the
proposed amendments are
understandable and minimally intrusive
if implemented as proposed.
List of Subjects in 12 CFR Part 740
Advertisements, Credit unions, Signs
and symbols.
By the National Credit Union
Administration Board on December 16, 2010.
Mary F. Rupp,
Secretary of the Board.
§ 740.5 Requirements for the official
advertising statement.
(b) * * * The official advertising
statement must be in a size and print
that is clearly legible and may be no
smaller than the smallest font size used
in other portions of the advertisement
intended to convey information to the
consumer. * * *
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*
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*
[FR Doc. 2010–32127 Filed 12–29–10; 8:45 am]
BILLING CODE 7535–01–P
14 CFR Part 39
RIN 2120–AA64
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1. The authority citation for part 740
continues to read as follows:
Authority: 12 U.S.C. 1766, 1781, 1785, and
1789.
2. Revise Section 740.1 by
redesignating paragraphs (b) and (c) as
paragraphs (c) and (d) and by adding a
new paragraph (b) to read as follows:
§ 740.1
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Definitions.
*
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Airworthiness Directives; Airbus Model
A330–200 and –300 Series Airplanes,
and Model A340–200 and –300 Series
Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Proposed rule; rescission.
AGENCY:
We propose to rescind
airworthiness directive (AD) 2009–18–
SUMMARY:
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You may examine the AD docket on
the Internet at https://
www.regulations.gov; or in person at the
Docket Operations office between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays. The AD docket
contains this proposed AD, the
regulatory evaluation, any comments
received, and other information. The
street address for the Docket Operations
office (telephone (800) 647–5527) is in
the ADDRESSES section. Comments will
be available in the AD docket shortly
after receipt.
FOR FURTHER INFORMATION CONTACT:
Vladimir Ulyanov, Aerospace Engineer,
International Branch, ANM–116,
E:\FR\FM\30DEP1.SGM
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]]>Agencies
[Federal Register Volume 75, Number 250 (Thursday, December 30, 2010)]
[Proposed Rules]
[Pages 82323-82325]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32127]
=======================================================================
-----------------------------------------------------------------------
NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 740
RIN 3133-AD83
Accuracy of Advertising and Notice of Insured Status
AGENCY: National Credit Union Administration (NCUA).
ACTION: Proposed rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The NCUA Board proposes to revise certain provisions of NCUA's
official advertising statement rule. Specifically, insured credit
unions will be required to include the statement in all radio and
television advertisements, annual reports, and statements of condition
required to be published by law. The NCUA Board also proposes to define
the term ``advertisement'' and clarify size requirements for the
official advertising statement in print materials.
DATES: Comments must be received on or before February 28, 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.
[[Page 82324]]
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 Proposed Rule 740, Accuracy of Advertising and Notice
of Insured Status'' 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 OGCMail@ncua.gov.
FOR FURTHER INFORMATION CONTACT: Frank Kressman, Senior Staff Attorney,
Office of General Counsel, at the above address or telephone (703) 518-
6540.
SUPPLEMENTARY INFORMATION: Section 740.5 of NCUA's regulations requires
each insured credit union to include NCUA's official advertising
statement in all of its advertisements, including on its main internet
page. 12 CFR 740.5(a). The official advertising statement is in
substance as follows: ``This credit union is federally insured by the
National Credit Union Administration.'' Insured credit unions, at their
option, may use the short title ``Federally insured by NCUA'' or a
reproduction of NCUA's official sign, as depicted in Sec. 740.4(b), as
the official advertising statement. 12 CFR 740.4(b); 12 CFR 740.5(b).
The official advertising statement must be in a size and print that
is clearly legible. 12 CFR 740.5(b). If the official sign is used as
the official advertising statement, an insured credit union may alter
the font size to ensure its legibility as provided in Sec.
740.4(b)(2). 12 CFR 740.4(b)(2); 12 CFR 740.5(b).
A number of advertisements in the current rule, however, need not
include the official advertising statement.\1\ Among those currently
exempted advertisements are radio and television advertisements that do
not exceed 30 seconds in time. The NCUA Board proposes to rescind these
exemptions. NCUA believes that it is important for consumers of these
kinds of advertisements to know that the share accounts in the
advertising credit union are federally insured by NCUA. The NCUA Board
believes that the benefits of this action to consumers and credit
unions, namely, enhanced consumer confidence and NCUA name recognition,
will far outweigh the minor inconvenience associated with requiring the
inclusion of the official advertising statement in this context. The
NCUA Board intends for this proposal also to apply to television
display advertisements.
---------------------------------------------------------------------------
\1\ Exempted advertisements in the current rule include: (1)
Statements of condition and reports of condition of an insured
credit union which are required to be published by state or federal
law or regulation; (2) Credit union supplies such as stationery
(except when used for circular letters), envelopes, deposit slips,
checks, drafts, signature cards, account passbooks, and noninsurable
certificates; (3) Signs or plates in the credit union office or
attached to the building or buildings in which the offices are
located; (4) Listings in directories; (5) Advertisements not setting
forth the name of the insured credit union; (6) Display
advertisements in credit union directories, provided the name of the
credit union is listed on any page in the directory with a symbol or
other descriptive matter indicating it is insured; (7) Joint or
group advertisements of credit union services where the names of
insured credit unions and noninsured credit unions are listed and
form a part of such advertisement; (8) Advertisements by radio that
do not exceed thirty (30) seconds in time; (9) Advertisements by
television, other than display advertisements, that do not exceed
thirty (30) seconds in time; (10) Advertisements that because of
their type or character would be impractical to include the official
advertising statement, including but not limited to, promotional
items such as calendars, matchbooks, pens, pencils, and key chains;
(11) Advertisements that contain a statement to the effect that the
credit union is insured by the National Credit Union Administration,
or that its accounts and shares or members are insured by the
Administration to the maximum insurance amount for each member or
shareholder; (12) Advertisements that do not relate to member
accounts, including but not limited to advertisements relating to
loans by the credit union, safekeeping box business or services,
traveler's checks on which the credit union is not primarily liable,
and credit life or disability insurance. 12 CFR Sec. 740.5(c).
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With respect to print advertisements, the NCUA Board proposes to
clarify the requirement that the official advertising statement must be
in a size and print that is clearly legible. 12 CFR 740.5(b). NCUA's
regulations do not dictate a specific font size be used for the
official advertising statement, and NCUA continues to believe this
makes sense considering advertisements can range from small magazine
advertisements to very large billboard advertisements. The NCUA Board
requires, however, that in any particular advertisement, in addition to
legibility, the font size for the official advertising statement may be
no smaller than the smallest font size used in other portions of the
advertisement intended to convey information to the consumer.
Also, the NCUA Board believes that an insured credit union's annual
report and other statements of condition required to be published by
law are significant and a form of advertisement and must include the
official advertising statement in a prominent position. Accordingly,
the NCUA Board proposes to amend Sec. 740.5 in this regard.
In summary, the proposal rescinds three exemptions from the general
rule requiring the use of the official advertising statement. Those
three include radio and television advertisements that do not exceed 30
seconds in time and annual reports and other statements of condition
required to be published by law. All other exemptions in Sec. 740.5(c)
remain in place. Finally, the current rule does not define the term
``advertisement.'' The NCUA Board proposes to clarify the rule by
proposing such a definition. The proposed definition is consistent with
that used by the Federal Deposit Insurance Corporation in its official
advertising statement rule. 12 CFR part 328.
Regulatory Procedures
Regulatory Flexibility Act
The Regulatory Flexibility Act requires NCUA to prepare an analysis
to describe any significant economic impact any proposed regulation may
have on a substantial number of small credit unions (those under $10
million in assets). The proposed amendments enhance consumer confidence
and do not impose a significant burden on credit unions. Accordingly,
the NCUA has determined and certifies that the proposed rule, if
adopted, will not have a significant economic impact on a substantial
number of small credit unions within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601-612.
Paperwork Reduction Act
The proposed rule does not contain a ``collection of information''
within the meaning of section 3502(3) of the Paperwork Reduction Act of
1995 (44 U.S.C. 3502(3)) and would not increase paperwork requirements
under the Paperwork Reduction Act of 1995 or regulations of the Office
of Management and Budget.
[[Page 82325]]
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 effect 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
NCUA has determined that this proposed rule would not affect family
well-being within the meaning of section 654 of the Treasury and
General Government Appropriations Act, 1999, Pub. L. 105-277, 112 Stat.
2681 (1998).
Agency Regulatory Goal
NCUA's goal is to promulgate clear and understandable regulations
that impose minimal regulatory burden. We request your comments on
whether the proposed amendments are understandable and minimally
intrusive if implemented as proposed.
List of Subjects in 12 CFR Part 740
Advertisements, Credit unions, Signs and symbols.
By the National Credit Union Administration Board on December
16, 2010.
Mary F. Rupp,
Secretary of the Board.
For the reasons discussed above, the NCUA Board 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. Revise Section 740.1 by redesignating paragraphs (b) and (c) as
paragraphs (c) and (d) and by adding a new paragraph (b) to read as
follows:
Sec. 740.1 Definitions.
* * * * *
(b) Advertisement as used in this part means a commercial message,
in any medium, that is designed to attract public attention or
patronage to a product or business.
* * * * *
3. Amend Sec. 740.5 by revising paragraph (a) to read as follows:
Sec. 740.5 Requirements for the official advertising statement.
(a) Each insured credit union must include the official advertising
statement, prescribed in paragraph (b) of this section, in all of its
advertisements including, but not limited to, annual reports,
statements of condition required to be published by law, radio and
television advertisements, and on its main Internet page, except as
provided in paragraph (c) of this section.
* * * * *
4. Amend Sec. 740.5 by:
a. Revising the third sentence of paragraph (b);
b. Removing and paragraphs (c)(1), (c)(8) and (c)(9); and
c. Redesignating paragraphs (c)(2), (c)(3), (c)(4), (c)(5), (c)(6),
(c)(7), (c)(10), (c)(11), and (c)(12), as paragraphs (c)(1) through
(c)(9) respectively.
The revised text reads as follows:
Sec. 740.5 Requirements for the official advertising statement.
(b) * * * The official advertising statement must be in a size and
print that is clearly legible and may be no smaller than the smallest
font size used in other portions of the advertisement intended to
convey information to the consumer. * * *
* * * * *
[FR Doc. 2010-32127 Filed 12-29-10; 8:45 am]
BILLING CODE 7535-01-P
