Accuracy of Advertising and Notice of Insured Status, 82323-82325 [2010-32127]

Download as PDF 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 * * * * * 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. * * * * * 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. VerDate Mar<15>2010 17:52 Dec 29, 2010 Jkt 223001 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. * * 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. * * * * II. Procedures for Computing Risk-Weighted Assets * * * * * 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. * * * * * * * * 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. * * * * * 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 * * * * * 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. Frm 00007 Fmt 4702 Sfmt 4702 * * * * 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: http:// www.regulations.gov. Follow the instructions for submitting comments. SUMMARY: E:\FR\FM\30DEP1.SGM 30DEP1 82324 Federal Register / Vol. 75, No. 250 / Thursday, December 30, 2010 / Proposed Rules • NCUA Web Site: http:// 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 http://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 srobinson on DSKHWCL6B1PROD with PROPOSALS SUPPLEMENTARY INFORMATION: VerDate Mar<15>2010 17:52 Dec 29, 2010 Jkt 223001 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 Frm 00008 Fmt 4702 Sfmt 4702 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. E:\FR\FM\30DEP1.SGM 30DEP1 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. * * * * * 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. * * * * * 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 http://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. * * * * * * * * [FR Doc. 2010–32127 Filed 12–29–10; 8:45 am] BILLING CODE 7535–01–P 14 CFR Part 39 RIN 2120–AA64 srobinson on DSKHWCL6B1PROD with PROPOSALS 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 * * Definitions. * VerDate Mar<15>2010 * 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: * 17:52 Dec 29, 2010 Jkt 223001 PO 00000 Frm 00009 Fmt 4702 Sfmt 4702 You may examine the AD docket on the Internet at http:// 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 30DEP1

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]


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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: http://www.regulations.gov. 
Follow the instructions for submitting comments.

[[Page 82324]]

     NCUA Web Site: http://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 http://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).
---------------------------------------------------------------------------

    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