Technical Amendments, 62207-62214 [2020-17372]

Download as PDF Federal Register / Vol. 85, No. 192 / Friday, October 2, 2020 / Rules and Regulations List of Subjects in 10 CFR Part 50 Administrative practice and procedure, Antitrust, Backfitting, Classified information, Criminal penalties, Education, Fire prevention, Fire protection, Incorporation by reference, Intergovernmental relations, Nuclear power plants and reactors, Penalties, Radiation protection, Reactor siting criteria, Reporting and recordkeeping requirements, Whistleblowing. For the reasons set forth in the preamble, and under the authority of the Atomic Energy Act of 1954, as amended; the Energy Reorganization Act of 1974, as amended; and 5 U.S.C. 552 and 553, the NRC is adopting the following amendments to 10 CFR part 50: PART 50—DOMESTIC LICENSING OF PRODUCTION AND UTILIZATION FACILITIES 1. The authority citation for part 50 continues to read as follows: ■ Authority: Atomic Energy Act of 1954, secs. 11, 101, 102, 103, 104, 105, 108, 122, 147, 149, 161, 181, 182, 183, 184, 185, 186, 187, 189, 223, 234 (42 U.S.C. 2014, 2131, 2132, 2133, 2134, 2135, 2138, 2152, 2167, 2169, 2201, 2231, 2232, 2233, 2234, 2235, 2236, 2237, 2239, 2273, 2282); Energy Reorganization Act of 1974, secs. 201, 202, 206, 211 (42 U.S.C. 5841, 5842, 5846, 5851); Nuclear Waste Policy Act of 1982, sec. 306 (42 U.S.C. 10226); National Environmental Policy Act of 1969 (42 U.S.C. 4332); 44 U.S.C. 3504 note; Sec. 109, Pub. L. 96–295, 94 Stat. 783. 2. In appendix H to part 50: a. Revise paragraph III.B.1; b. Add paragraph III.B.4; and c. In paragraph IV.A, remove the phrase ‘‘one year’’ and add in its place the phrase ‘‘eighteen months’’. The revision and addition read as follows: ■ ■ ■ ■ Appendix H to Part 50—Reactor Vessel Material Surveillance Program Requirements jbell on DSKJLSW7X2PROD with RULES * * * * * III. * * * B. * * * 1. The design of the surveillance program and the withdrawal schedule must meet the requirements of the edition of the ASTM E 185 that is current on the issue date of the ASME code to which the reactor vessel was purchased; for reactor vessels purchased after 1982, the design of the surveillance program and the withdrawal schedule must meet the requirements of ASTM E 185–82. For reactor vessels purchased in or before 1982, later editions of ASTM E 185 may be used, but including only those editions through 1982. For each capsule withdrawal, the test procedures and reporting requirements must meet the requirements of the ASTM E 185 to the extent practicable for the configuration of VerDate Sep<11>2014 16:39 Oct 01, 2020 Jkt 253001 the specimens in the capsule. If any of the optional provisions in paragraphs III.B.4(a) through (d) of this section are implemented in lieu of ASTM E 185, the number of specimens included or tested in the surveillance program shall be adjusted as specified in paragraphs III.B.4(a) through (d) of this section. * * * * * 4. Optional provisions. As used in this section, references to ASTM E 185 include the edition of ASTM E 185 that is current on the issue date of the ASME Code to which the reactor vessel was purchased through the 1982 edition. (a) First Provision: Heat-Affected Zone Specimens—The inclusion or testing of weld heat-affected zone Charpy impact specimens within the surveillance program as specified in ASTM E 185 is optional. (b) Second Provision: Tension Specimens—If this provision is implemented, the minimum number of tension specimens to be included and tested in the surveillance program shall be as specified in paragraphs III.B.4(b)(i) and (ii) of this section. (i) Unirradiated Tension Specimens—Two tension specimens from each base and weld material required by ASTM E 185 shall be tested, with one specimen tested at room temperature and the other specimen tested at the service temperature; and (ii) Irradiated Tension Specimens—Two tension specimens from each base and weld material required by ASTM E 185 shall be included in each surveillance capsule and tested, with one specimen tested at room temperature and the other specimen tested at the service temperature. (c) Third Provision: Correlation Monitor Materials—The testing of correlation monitor material specimens within the surveillance program as specified in ASTM E 185 is optional. (d) Fourth Provision: Thermal Monitor— The inclusion or examination of thermal monitors within the surveillance program as specified in ASTM E 185 is optional. * * * * * Dated at Rockville, Maryland, this 24th day of September, 2020. For the Nuclear Regulatory Commission. Annette Vietti-Cook, Secretary for the Commission. [FR Doc. 2020–21505 Filed 10–1–20; 8:45 am] BILLING CODE 7590–01–P NATIONAL CREDIT UNION ADMINISTRATION 12 CFR Parts 700, 701, 702, 704, 705, 707, 708a, 708b, 709, 717, 725, 740, 741, 747, 748, and 750 RIN 3133–AF22 Technical Amendments National Credit Union Administration (NCUA). AGENCY: PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 62207 Final rule and final rule; correction. ACTION: The NCUA Board (Board) is issuing a final rule to make technical amendments to various provisions of the NCUA’s regulations. These amendments correct minor technical problems and improve clarity. DATES: The final rule is effective on October 2, 2020, except for the corrections to the final rule amending 12 CFR part 702, published at 80 FR 66626, which was delayed on November 6, 2018 (83 FR 55467) and December 17, 2019 (84 FR 68781), which are effective on January 1, 2022. FOR FURTHER INFORMATION CONTACT: Justin Anderson, Senior Staff Attorney; Gira Bose, Staff Attorney, Division of Regulations and Legislation, Office of General Counsel, at 1775 Duke Street, Alexandria, VA 22314 or telephone: (703) 518–6540. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background The Board periodically issues a technical amendments rule correcting minor typographical errors, inaccurate legal citations, or superfluous or outdated regulatory provisions throughout the NCUA’s regulations. Because these changes are technical in nature, and do not affect federally insured credit unions in a substantive manner, the Board issues these technical amendments rules as final rules without notice and comment typically required by the Administrative Procedure Act (APA).1 Accordingly, the Board is issuing this final rule to address those matters. II. Legal Authority The Board has the legal authority to issue this final rule pursuant to its plenary rulemaking authority under the Federal Credit Union Act (FCU Act) 2 and its specific rulemaking authority under the various acts the Board administers. III. Section-by-Section Analysis General Wording, Style, and CrossReference Changes The final rule makes general wording, style, and cross-reference changes throughout the NCUA’s regulations. For example, the final rule corrects various typographical errors. Technical amendments of this nature will apply throughout the NCUA’s regulations. Therefore, the preamble does not address these types of stylistic changes in the section-by-section analysis below. 15 U.S.C. 553(b)(A), (B). U.S.C. 1766, 1789. 2 12 E:\FR\FM\02OCR1.SGM 02OCR1 62208 Federal Register / Vol. 85, No. 192 / Friday, October 2, 2020 / Rules and Regulations Parts 700, 701, 702, 704, 705, 707, 708a, 708b, 709, 717, 725, 740, 741, 747, 748, and 750 The final rule amends one of the definitions listed in § 700.2 of the NCUA’s regulations that was erroneously changed. The definitions in part 700 apply throughout chapter VII of title 12 of the Code of Federal Regulations ‘‘unless the context indicates otherwise.’’ 3 A ‘‘Noninsured credit union’’ is currently defined by regulation as ‘‘a credit union chartered under the laws of any State, the District of Columbia, the several territories and possessions of the United States, the Panama Canal Zone, or the Commonwealth of Puerto Rico, whose member accounts are not insured by NCUA.’’ This term mirrors the Federal Credit Union Act definition.4 A final technical amendments rule issued in 2018 amended several references to ‘‘Non-federally insured credit unions’’ changing them to ‘‘Noninsured credit unions.’’ Although this change conformed the regulatory definition to the statutory definition, it also inadvertently created internal inconsistencies in the regulations and created unintended confusion and consequences. The Board has determined that the erroneous technical amendment issued in 2018 needs to be reversed to correct the inadvertent regulatory inconsistencies. This will restore clarity that the term ‘‘Nonfederally insured credit unions,’’ consistent with the Federal Credit Union Act, includes credit unions whose member accounts are insured by agencies or entities other than the NCUA, such as state or private share insurers, as well as credit unions whose member accounts are not insured by any party. Accordingly, the final rule makes this change in § 700.2 and in other parts where the term ‘‘Noninsured credit union’’ currently appears—parts 704, 705, 708b, and 740. jbell on DSKJLSW7X2PROD with RULES Section 701.34 Designation of Low Income Status; Acceptance of Secondary Capital Accounts by LowIncome Designated Credit Unions Section 701.34(a)(6) provides the definition of ‘‘median family income’’ and ‘‘total median earnings for individuals’’ by referring to data from the Census Bureau. The current definition points to the Census Bureau’s American FactFinder site with a specific hyperlink. The Census Bureau no longer houses this data at that specific site. Accordingly, this final rule replaces the 3 12 4 12 CFR 700.2. U.S.C. 1752(7). VerDate Sep<11>2014 16:39 Oct 01, 2020 ‘‘FactFinder’’ reference with ‘‘American Community Survey’’ and provides a more general link to the Census Bureau’s website. This change is not intended to alter the reliance on Census Bureau data for these statistics. Appendix B to Part 701—Chartering and Field of Membership Manual The final rule amends certain provisions to update the NCUA office responsible for a certain activity. For instance, the Office of Credit Union Resources and Expansion (CURE) has replaced the Regional Office as the responsible office at Chapter 1, Section III. The final rule also updates references to the Regional Offices to reflect the agency’s realignment that was finalized in 2019, as well as an update to the name of one of the credit union trade associations noted in the Chartering Manual. Part 702—Capital Adequacy In addition to typographical corrections, the final rule includes corrections to the amendatory instructions from the 2015 final rule on risk-based capital 5 to ensure that crossreferences to other provisions that the Board has since been amended will be correctly reflected in this part when the 2015 final rule goes into effect, as it is scheduled to do on January 1, 2022.6 These corrections do not make any substantive change to the 2015 final rule. Part 704—Corporate Credit Union Throughout part 704, corporate credit unions are frequently referred to as ‘‘corporates.’’ The final rule amends several sections in this part to replace ‘‘corporate’’ or ‘‘corporates’’ with ‘‘corporate credit union’’ or ‘‘corporate credit unions’’ to avoid confusion and to be more precise. In addition, a reference to ‘‘notational principal balance’’ has been corrected to ‘‘notional principal balance.’’ Part 707—Truth in Savings This final rule makes a notable change relating to the model clauses and forms in appendix B to this part, which addresses Truth in Savings. Specifically, appendix B refers several times to a chart of accounts in a specific section of the NCUA’s Accounting Manual for Federal Credit Unions. This publication no longer contains this chart of accounts, but this chart served as the model for the sample forms. Accordingly, the final rule adds a statement to this effect in the prefatory 5 80 FR 66626 (Oct. 29. 2015). 84 FR 68781 (Dec. 17, 2019). 6 See Jkt 253001 PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 language to this appendix to avoid confusion for those referring to the current version of the Accounting Manual. In addition, the final rule redesignates several paragraphs in appendix C to this part to correct duplicate paragraph numbering that resulted from prior amendments. This change does not affect or add to the substance of these provisions. The final rule will also correct minor wording or typographical errors. Part 708a—Bank Conversions and Mergers Section 708a.304 addresses the notice that a credit union must file with the NCUA within 30 days of its board adopting a proposal to merge. This provision refers to an asset threshold set by the Federal Trade Commission (FTC) under the Hart-Scott Rodino Act that triggers a premerger notification to the FTC. The threshold amount listed in the current regulation is outdated. Because the FTC will continue to update this threshold, removing the specific dollar amount from this regulation will help to avoid confusion or alternatively, the need for the NCUA to update its regulation each time the FTC updates the threshold. Credit unions should refer to the FTC’s announcements of the threshold amounts on that agency’s website and in the Federal Register. Part 747—Administrative Actions, Adjudicative Hearings, Rules of Practice and Procedure, and Investigations The final rule makes two notable clarifications and updates to this part. In § 747.0, which sets forth the scope of this part, the final rule adds a defined term for the Uniform Rules when that subject is first discussed in order to provide clarity. In § 747.207, which addresses notices of termination of insured status, the final rule updates a reference to the standard maximum share insurance amount from $100,000 to $250,000 to reflect the statutory change that Congress enacted in 2010.7 IV. Regulatory Procedures Administrative Procedure Act Generally, the APA requires a Federal agency to provide the public with notice and an opportunity to comment on agency rulemakings.8 The APA, however, creates an exception in cases where an agency for good cause determines ‘‘that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public 7 Public 85 Law 111–203, sec. 335(b). U.S.C. 553(b). E:\FR\FM\02OCR1.SGM 02OCR1 Federal Register / Vol. 85, No. 192 / Friday, October 2, 2020 / Rules and Regulations interest.’’ 9 Because all of the changes in this final rule involve only minor, technical amendments to the NCUA’s existing regulations, the Board has determined that notice and comment would be unnecessary and contrary to the public interest. Furthermore, the APA generally provides that a final rule may not become effective until at least 30 days after its publication in the Federal Register unless the agency determines that good cause exists to dispense with this requirement.10 As noted above, given that the rule does not impose new requirements on federally insured credit unions and only involves minor, technical amendments to existing regulations, the Board finds sufficient good cause exists to dispense with the 30-day effective date requirement. The rule will, therefore, be effective immediately upon publication. Regulatory Flexibility Act The Regulatory Flexibility Act requires the NCUA to prepare an analysis of any significant economic impact a regulation may have on a substantial number of small entities (primarily those under $100 million in assets).11 As discussed previously, consistent with the APA,12 the Board has determined for good cause that general notice and opportunity for public comment is unnecessary, and therefore the Board is not issuing a notice of proposed rulemaking. Rules that are exempt from notice and comment procedures are also exempt from the RFA requirements, including conducting a regulatory flexibility analysis, when among other things the agency for good cause finds that notice and public procedure are impracticable, unnecessary, or contrary to the public interest. Accordingly, the Board has concluded that the RFA’s requirements relating to initial and final regulatory flexibility analysis do not apply. 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 increases an existing burden.13 For purposes of the PRA, a paperwork 9 Id. at 553(b)(B). U.S.C. 553(d). For the same reasons, the Board is not providing the usual 60-day comment period before finalizing this rule. See NCUA Interpretive Ruling and Policy Statement (IRPS) 87– 2, as amended by IRPS 03–2 and IRPS 15–1. 80 FR 57512 (Sept. 24, 2015), available at https:// www.ncua.gov/files/publications/irps/IRPS19872.pdf. 11 5 U.S.C. 601–612. 12 5 U.S.C. 553(b)(3)(B). 13 44 U.S.C. 3501–3521. jbell on DSKJLSW7X2PROD with RULES 10 5 VerDate Sep<11>2014 16:39 Oct 01, 2020 Jkt 253001 burden may take the form of a reporting or recordkeeping requirement, both referred to as information collections. As the final rule makes only minor, technical amendments to the NCUA’s existing regulations, the NCUA has determined it does not increase paperwork requirements under the PRA. Small Business Regulatory Enforcement Fairness Act The Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) provides generally for congressional review of agency rules.14 A reporting requirement is triggered in instances where the NCUA issues a ‘‘final rule’’ as defined by statute.15 As required by SBREFA, the NCUA will submit this rule to the Office of Management and Budget for it to determine if the final rule is a ‘‘major rule’’ for purposes of SBREFA. The NCUA does not believe the rule is major. 62209 status discrimination, Mortgages, Religious discrimination, Reporting and recordkeeping requirements, Sex discrimination, Signs and symbols, Surety bonds. 12 CFR Part 702 Credit unions, Reporting and recordkeeping requirements. 12 CFR Part 704 Credit unions, Reporting and recordkeeping requirements, Surety bonds. 12 CFR Part 705 Community programs, Credit unions, Grants, Loans, Low income, Revolving fund. 12 CFR Part 707 Advertising, Credit unions, Reporting and recordkeeping requirements, Truth in lending. 12 CFR Part 708a Assessment of Federal Regulations and Policies on Families The NCUA has determined that this rule will not affect family well-being within the meaning of section 654 of the Treasury and General Government Appropriations Act.16 Credit unions, Reporting and recordkeeping requirements. Executive Order 13132 Executive Order 13132 encourages independent regulatory agencies to consider the impact of their actions on state and local interests.17 The NCUA, an independent regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies with the executive order to adhere to fundamental federalism principles. The final rule does not have substantial direct effects 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. The NCUA has therefore determined that this final rule does not constitute a policy that has federalism implications for purposes of the Executive order. 12 CFR Part 709 List of Subjects Administrative practice and procedure, Bank deposit insurance, Claims, Credit unions, Crime, Equal access to justice, Investigations, Lawyers, Penalties. 12 CFR Part 700 Credit unions. 12 CFR Part 701 Advertising, Aged, Civil rights, Credit, Credit unions, Fair housing, Individuals with disabilities, Insurance, Marital 14 5 U.S.C. 801–808. U.S.C. 551, 804. 16 Public Law 105–277, sec. 654, 112 Stat. 2681, 2681–528 (1998). 17 ‘‘Federalism,’’ E.O. 13,132 (Aug. 10, 1999). 15 5 PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 12 CFR Part 708b Bank deposit insurance, Credit unions, Reporting and recordkeeping requirements. Claims, Credit unions. 12 CFR Part 717 Consumer protection, Credit unions, Information, Privacy, Reporting and recordkeeping requirements. 12 CFR Part 725 Central liquidity facility. 12 CFR Part 740 Advertisements, Credit unions, Share insurance, Signs and symbols. 12 CFR Part 741 Bank deposit insurance, Credit unions, Reporting and recordkeeping requirements. 12 CFR Part 747 12 CFR Part 748 Credit unions, Reporting and recordkeeping requirements, Security measures. 12 CFR Part 750 Credit unions, Golden parachute payments, Indemnity payments. E:\FR\FM\02OCR1.SGM 02OCR1 62210 Federal Register / Vol. 85, No. 192 / Friday, October 2, 2020 / Rules and Regulations By the National Credit Union Administration Board on June 25, 2020. Gerard Poliquin, Secretary of the Board. 701.31 is also authorized by 15 U.S.C. 1601 et seq.; 42 U.S.C. 1981 and 3601–3610. Section 701.35 is also authorized by 42 U.S.C. 4311–4312. Correction In FR Doc. 2015–26790, appearing on page 66626 in the Federal Register of Thursday, October 29, 2015, the following corrections are made: § 701.22 § 702.1 [Corrected] 1. On page 66706, in the third column, revise § 702.1(a) by removing ‘‘12 U.S.C. 1776’’ adding in its place ‘‘12 U.S.C. 1766’’. ■ 2. On page 66722, in the first column, remove instruction 11. ■ § 702.305 [Corrected] 3. On page 66722, in the first column, correct instruction 12 to read as follows: ‘‘Amend newly redesignated § 702.305(b)(4) by removing the citation ‘‘§ 702.504’’ and adding in its place ‘‘§ 702.304’’ For the reasons discussed above, the Board is correcting FR Doc. 2015–26790, as set forth above, and amending 12 CFR parts 700, 701, 702, 704, 705, 707, 708a, 708b, 709, 717, 725, 740, 741, 747, 748, and 750 as follows: ■ PART 700—DEFINITIONS 1. The authority citation for part 700 continues to read as follows: ■ Authority: 12 U.S.C. 1752, 1757(6), 1766. 2. Amend § 700.2 by: a. Removing the definition of ‘‘Noninsured credit union’’; and ■ b. Adding in alphabetical order the definition of ‘‘Non-federally insured credit union’’. The addition reads as follows: ■ ■ § 700.2 * * * * (a) * * * (6) Definitions. The following definitions apply to this section: Median family income and total median earnings for individuals are income statistics reported by the U.S. Census Bureau. The applicable income data can be obtained via the American Community Survey on the Census Bureau’s web page at http:// www.census.gov. Metropolitan area means an area designated by the Office of Management and Budget pursuant to 31 U.S.C. 1104(d), 44 U.S.C. 3504(c), and Executive Order 10253 (June 13, 1951) (as amended). * * * * * ■ 6. Amend appendix B to part 701 by revising the first sentence of the second paragraph under the heading ‘‘III —Subscribers’’, Appendix 3, and Appendix 5 to read as follows: * * * * * * Non-federally insured credit union means a credit union chartered under the laws of any State, the District of Columbia, the several territories and possessions of the United States, the Panama Canal Zone, or the Commonwealth of Puerto Rico, whose member accounts are not insured by the NCUA. * * * * * PART 701—ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS jbell on DSKJLSW7X2PROD with RULES * 3. The authority citation for part 701 continues to read as follows: ■ Authority: 12 U.S.C. 1752(5), 1755, 1756, 1757, 1758, 1759, 1761a, 1761b, 1766, 1767, 1782, 1784, 1786, 1787, 1789. Section 701.6 is also authorized by 15 U.S.C. 3717. Section Jkt 253001 * * * * * * III—Subscribers * 16:39 Oct 01, 2020 § 701.34 Designation of low income status; Acceptance of secondary capital accounts by low-income designated credit unions. Appendix B to Part 701—Chartering and Field of Membership Manual Definitions VerDate Sep<11>2014 [Amended] 4. In § 701.22, amend paragraph (e) by removing the citation ‘‘(b)(1)(ii)’’ and adding in its place the citation ‘‘(b)(5)(ii)’’. ■ 5. Amend § 701.34 by revising paragraph (a)(6) to read as follows: ■ * * Persons interested in organizing a Federal credit union should contact one of the credit union trade associations or the NCUA Office of Credit Union Resources and Expansion. * * * * * * * * Appendix 3 NCUA Offices Office of Credit Union Resources and Expansion (CURE) 1775 Duke Street, Alexandria, VA 22314– 3428 Phone: 703–518–1150 Fax: 703–518–6672 Email: DCAMail@NCUA.GOV The Divisions of Consumer Access (East, Central, and West) within CURE share the responsibility for chartering and field-ofmembership matters, low-income designations, charter conversions, and bylaw amendments. Eastern Region—Alexandria PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 1775 Duke Street, Alexandria, VA 22314– 3428 Phone: 703–519–4600 Fax: 703–519–6674 Email: EasternMail@NCUA.GOV States in the Eastern Region include: Connecticut, Delaware, the District of Columbia, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia. Southern Region—Austin 4807 Spicewood Springs Road, Suite 5200, Austin, TX 78759–8490 Phone: 512–342–5600 Fax: 512–342–5620 Email: SouthernMail@NCUA.GOV States in the Southern Region include: Alabama, Arkansas, Florida, Georgia, Indiana, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Oklahoma, Tennessee, and Texas, as well as Puerto Rico and the U.S. Virgin Islands. Western Region—Tempe 1230 West Washington Street, Suite 301, Tempe, AZ 85281 Phone: 602–302–6000 Fax: 602–302–6024 Email: WesternMail@NCUA.GOV States in the Western Region include: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Illinois, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Nevada, Oregon, South Dakota, Utah, Washington, Wisconsin, and Wyoming, as well as Guam. * * * * * Appendix 5 Trades Associations Credit Union National Association (CUNA) www.cuna.org P.O. Box 431, Madison, WI 53701, 800–356– 9655 National Association of Federally-Insured Credit Unions (NAFCU) www.nafcu.org 3138 N 10th Street, Suite 300, Arlington, VA 22201–2149, 800–336–4644 National Association of State Credit Union Supervisors (NASCUS) www.nascus.org 1655 North Fort Myer Drive, Suite 650, Arlington, VA 22209, 703–528–8351 Inclusiv https://www.inclusiv.org/ 39 Broadway, Suite 2140, New York, NY 10006–3063, 212–809–1850 PART 702—CAPITAL ADEQUACY 7. The authority citation for part 702 continues to read as follows: ■ Authority: 12 U.S.C. 1766(a), 1790d. § 702.306 [Amended] 8. In § 702.306(a)(1)(i), remove the word ‘‘the-present’’ and add, in its place, the word ‘‘then-present’’. ■ E:\FR\FM\02OCR1.SGM 02OCR1 Federal Register / Vol. 85, No. 192 / Friday, October 2, 2020 / Rules and Regulations PART 703—INVESTMENT AND DEPOSIT ACTIVITIES 9. The authority citation for part 703 continues to read as follows: ■ Authority: 12 U.S.C. 1757(7), 1757(8), 1757(15). 10. Revise § 703.14(k) to read as follows: ■ § 703.14 Permissible investments. * * * * * (k) Derivatives. A Federal credit union may only enter into the following derivatives transactions: * * * * * § 703.112 [Amended] 11. In § 703.112, amend paragraph (a) by removing the word ‘‘fescribed’’ and adding, in its place, the word ‘‘described’’. ■ PART 704—CORPORATE CREDIT UNIONS 12. The authority citation for part 704 continues to read as follows: ■ Authority: 12 U.S.C. 1766(a), 1781, 1789. § 704.1 [Amended] 13. In § 704.1, amend paragraph (a) by removing in the second sentence the words ‘‘Noninsured corporate credit unions’’ and adding, in their place, the words ‘‘Non-federally insured corporate credit unions’’. ■ § 704.4 [Amended] 14. Amend § 704.4 by adding the words ‘‘credit union’’ after ‘‘corporate’’ in the last sentence of paragraph (e)(1)(ii)(5). ■ § 704.5 [Amended] 15. In § 704.5 amend paragraph (e)(4) by adding the words ‘‘credit union’’ after ‘‘corporate’’ in the last sentence. ■ 16. Amend § 704.6 by revising paragraph (f)(2) to read as follows. ■ § 704.6 Credit risk management. jbell on DSKJLSW7X2PROD with RULES * * * * * (f) * * * (2) A corporate credit union must identify and monitor any changes in credit quality of the investment and retain appropriate supporting documentation as long as the corporate credit union owns the investment. * * * * * ■ 17. Amend § 704.8 by revising paragraphs (j)(1) and (k) to read as follows: § 704.8 Asset and liability management. * * * * * (j) Limit breaches. (1)(i) If a corporate credit union’s decline in NEV, base case VerDate Sep<11>2014 16:39 Oct 01, 2020 Jkt 253001 NEV ratio, or any NEV ratio calculated under paragraph (d) of this section exceeds established or permitted limits, or the corporate credit union is unable to satisfy the tests in paragraph (f) or (g) of this section, the operating management of the corporate credit union must immediately report this information to its board of directors and ALCO; and (ii) If the corporate credit union cannot adjust its balance sheet to meet the requirements of paragraph (d), (f), or (g) of this section within 10 calendar days after detection by the corporate credit union, the corporate credit union must notify in writing the Director of the Office of National Examinations and Supervision. * * * * * (k) Overall limit on business generated from individual credit unions. On or after April 22, 2013, a corporate credit union is prohibited from accepting from any member, or any nonmember credit union, any investment, including shares, loans, PCC, or NCAs if, following that investment, the aggregate of all investments from that entity in the corporate credit union would exceed 15 percent of the corporate credit union’s moving daily average net assets. ■ 18. Amend § 704.11 by: ■ a. Adding the words ‘‘credit union’’ after the second use of the word ‘‘corporate’’ in the last sentence of paragraph (b)(2); ■ b. Adding the words ‘‘credit union’’ after ‘‘corporate’’ in the first sentence of paragraph (b)(3); ■ c. Adding the word ‘‘from’’ between the words ‘‘activity’’ and ‘‘the’’ in paragraph (e)(2); and ■ d. Revising paragraph (g)(7). The revision reads as follows: § 704.11 Corporate Credit Union Service Organizations (Corporate CUSOs). * * * * * (g) * * * (7) Will inform the corporate credit union, at least quarterly, of all the compensation paid by the CUSO to its employees who are also employees of the corporate credit union; and * * * * * ■ 19. Amend § 704.14 by revising paragraphs (a)(4) and (8) to read as follows: § 704.14 Representation. (a) * * * (4) No individual may be elected or appointed to serve on the board if, after such election or appointment, any member of the corporate credit union would have more than one PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 62211 representative on the board of the corporate credit union; * * * * * (8) In the case of a corporate credit union whose membership is composed of more than 25 percent non-credit unions, the majority of directors serving as representatives of member credit unions, including the chair, must be elected only by member credit unions; and * * * * * ■ 20. Revise § 704.19(a) introductory text to read as follows: § 704.19 Disclosure of executive compensation. (a) Annual disclosure. A corporate credit union must annually prepare and maintain a disclosure of the dollar amount of compensation paid to its most highly compensated employees, including compensation from any corporate CUSO in which the corporate credit union has invested or made a loan, in accordance with the following schedule: * * * * * § 704.20 [Added and Reserved] 21. Add reserved § 704.20. 22. Amend § 704.22 by revising paragraph (b) to read as follows: ■ ■ § 704.22 Membership fees. * * * * * (b) The corporate credit union must calculate the fee uniformly for all members as a percentage of each member’s assets, except that the corporate credit union may reduce the amount of the fee for members that have contributed capital to the corporate credit union. Any reduction must be proportional to the amount of the member’s nondepleted contributed capital. * * * * * Appendix A to Part 704 [Amended] 23. Amend appendix A to part 704 as follows: ■ a. In Part I, add the words ‘‘credit union’’ between the words ‘‘corporate’’ and ‘‘on’’ in the first sentence; ■ b. In Part I, add the words ‘‘credit union’’ between the words ‘‘corporate’’ and ‘‘before’’ in the first sentence; ■ c. In Part II, Model Form C, add the words ‘‘credit union’’ after the word ‘‘corporate’’ in the second sentence of paragraph (3); and ■ d. In Part II, Model Form D, add the words ‘‘credit union’’ after the word ‘‘corporate’’ in the second sentence of paragraph (3). ■ E:\FR\FM\02OCR1.SGM 02OCR1 62212 Federal Register / Vol. 85, No. 192 / Friday, October 2, 2020 / Rules and Regulations Appendix B to Part 704 [Amended] 24. Amend appendix B to part 704 as follows: ■ a. In paragraph titled ‘‘Base-Plus’’, add the words ‘‘credit union’’ after the word ‘‘corporate’’; ■ b. In paragraph (b)(1) of Part III, remove the word ‘‘corporate’s’’ and add, in its place, ‘‘corporate credit union’s’’; ■ c. In paragraph (b)(2) of Part III, add the words ‘‘credit union’’ between the words ‘‘corporate’’ and ‘‘must’’; ■ d. In paragraph (b)(2) of Part III, remove the word ‘‘corporate’s’’ and add, in its place, ‘‘corporate credit union’s’’; ■ e. In paragraph (b)(3) of Part III, add the words ‘‘credit union’’ after the word ‘‘corporate’’; ■ f. In paragraph (b)(4) of Part III, add the words ‘‘credit union’’ between the words ‘‘corporate’’ and ‘‘must’’; and ■ g. In paragraph (b)(4) of Part III, remove the word ‘‘corporate’s’’ and add, in its place, ‘‘corporate credit union’s’’. ■ Appendix C to Part 704 [Amended] 25. Amend appendix C to part 704 by: a. In Part I, paragraph (b): i. Revising the definition of ‘‘Face amount;’’ and ■ ii. Revising paragraph (2) of the definition of ‘‘Qualifying mortgage loan;’’ ■ b. In Part II, paragraph (a)(6), in the first sentence, remove the word ‘‘corporate’s’’ and add, in its place, ‘‘corporate credit union’s’’; ■ c. In Part II, paragraph (b)(2)(ii), in the last sentence, remove the word ‘‘or’’ and add, in its place, the word ‘‘of’’; and ■ d. In Part II, paragraph (c)(3)(i), in the last sentence, remove the word ‘‘corporate’s’’ and add, in its place, the words ‘‘corporate credit union’s’’. The revisions read as follows: ■ ■ ■ Appendix C to Part 704—* * * * * * * * * * (b) * * * Face amount means the notional principal, or face value, amount of an off-balance sheet item or the amortized cost of an on-balance sheet asset. jbell on DSKJLSW7X2PROD with RULES * * * * * Qualifying mortgage loan * * * (2) Is underwritten in accordance with prudent underwriting standards, including standards relating to the ratio of the loan amount to the value of the property (LTV ratio), as presented in the Interagency Guidelines for Real Estate Lending Policies (December 31, 1992). A nonqualifying mortgage loan that is paid down to an appropriate LTV ratio (calculated using value at origination, appraisal obtained within the prior six months, or updated value using an automated valuation model) may become a VerDate Sep<11>2014 16:39 Oct 01, 2020 PART 705—COMMUNITY DEVELOPMENT REVOLVING LOAN FUND ACCESS FOR CREDIT UNIONS i. Redesignate sections (a)(1)(2) through (a)(1)(6) as (a)(1)(3) through (a)(1)(7); and ■ ii. redesignate the second section numbered (1) as (2). The revisions read as follows: 26. The authority citation for part 705 continues to read as follows: Appendix C to Part 707—Official Staff Interpretations Authority: 12 U.S.C. 1756, 1757(5)(D), and (7)(I), 1766, 1782, 1784, 1785 and 1786. * * * * * * ■ § § 705.2 and 705.7 [Amended] PART 707—TRUTH IN SAVINGS 28. The authority citation for part 707 continues to read as follows: ■ Authority: 12 U.S.C. 4311. 29. Amend appendix B to part 707 by: a. Adding a paragraph at the end of the introductory text; ■ b. In the note to B–6 Sample Form (REGULAR SHARE ACCOUNT DISCLOSURES), revising ‘‘Nonfederally’’ to read as ‘‘Nonfederally’’, ■ c. In B–9 ‘‘Sample Form (TERM SHARE (CERTIFICATE) ACCOUNT DISCLOSURES)’’: ■ i. In paragraph 3, removing the word ‘‘minium’’ in the first non-italicized sentence, and adding in its place the word ‘‘minimum’’; and ■ ii. In the ‘‘NOTE’’ in the last sentence, removing the word ‘‘if’’, and adding in its place, the word ‘‘is’’. The addition reads as follows: ■ ■ Appendix B to Part 707—Model Clauses and Sample Forms * * * * * Jkt 253001 * * * * * 30. Amend appendix C to part 707 by: a. In Section 707.2: i. Under ‘‘(i) Dividend and Dividends’’ revise paragraph 4.D; ■ ii. Under ‘‘(z) Variable-Rate Account’’, revise the first sentence of paragraph 2; ■ b. In Section 707.4, ■ i. Under ‘‘(a)(2)(i)’’ revise paragraph (2; ■ ii. Under ‘‘(b)(6)(ii)’’ revise paragraph (2)(i); ■ c. In Section 707.7, revise the heading for ‘‘(a)(2)’’; ■ d. In Section 707.9, under ‘‘(c)Record retention’’, revise paragraph (1)(ii); ■ e. In Section 707.11, under ‘‘(a)(1) General’’: ■ ■ ■ PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 ■ * * * * Section 707.2—Definitions * 27. Amend §§ 705.2 and 705.7(b)(3) by removing ‘‘noninsured credit union’’ and adding in its place ‘‘Non-federally insured credit union’’. ■ Note also that certain information that appeared in previous versions of the NCUA Accounting Manual for FCUs that served as a model for this appendix do not appear in the current version of that publication. Part I * qualifying loan if it meets all other requirements of this definition; * * * * (i) Dividend and Dividends * * * * * 4. * * * D. I further certify that the Board of Directors of this Credit Union has, and at the time of adoption of this resolution had, full power and lawful authority to adopt the foregoing resolutions and that this resolution revokes any prior resolution. * * * * * (z) Variable-Rate Account * * * * * 2. Differences between fixed-rate and variable-rate accounts. All accounts must either be fixed-rate or variable-rate accounts. Classifying an account as variable-rate affects credit unions three ways: * * * * * Section 707.4—Account Disclosures * * * * * * * (a)(2) Requests (a)(2)(i) * * * 2. General requests. When members or potential members request disclosures about a type of account (a share draft account, for example), a credit union that offers several variations may provide disclosures for any one of them. No disclosures need be made to nonmembers, though a credit union may provide disclosures to nonmembers within its sole discretion. * * * * * (b) Content of Account Disclosures * * * * * (b)(6)(ii) Early Withdrawal Penalties * * * * * 2. * * * i. Monetary penalties, such as a specific dollar amount (e.g., ‘‘$10.00’’) or a specific days’ worth of dividends (e.g., ‘‘seven days’ dividends plus accrued but uncredited dividends, but only if the account is closed’’). * * * * * Section 707.7—Payment of Dividends * * * * * (a2) Determination of Minimum Balance To Earn Dividends * E:\FR\FM\02OCR1.SGM * * 02OCR1 * * Federal Register / Vol. 85, No. 192 / Friday, October 2, 2020 / Rules and Regulations Section 707.9—Enforcement and Record Retention (c) Record retention * * * * * ii. Retained sample disclosures for each type of account offered to members, such as account-opening disclosures, copies of advertisements, and change-in-term notices; and information regarding the dividend rates and annual percentage yields offered. * * * * * 36. The authority citation for part 709 continues to read as follows: ■ Authority: 12 U.S.C. 1757, 1766, 1767, 1786(h), 1786(t), and 1787(b)(4), 1788, 1789, 1789a. § 709.8 PART 708a—BANK CONVERSIONS AND MERGERS [Amended] 37. In § 709.8 amend paragraph (f) by in the first sentence, adding the word ‘‘is’’ between the words ‘‘request’’ and ‘‘filed’’. ■ 31. The authority citation for part 708a continues to read as follows: ■ Authority: 12 U.S.C. 1766, 1785(b), 1785(c). § 708a.304 PART 709—INVOLUNTARY LIQUIDATION OF FEDERAL CREDIT UNIONS AND ADJUDICATION OF CREDITOR CLAIMS INVOLVING FEDERALLY INSURED CREDIT UNIONS IN LIQUIDATION § 709.9 [Amended] 38. In § 709.9 amend paragraph (b)(5)(ii)(B) by, in the last sentence, removing the word ‘‘all’’ after the word ‘‘existing’’. ■ [Amended] 36. In § 708a.304(a)(13), remove the words ‘‘currently $63.4 million,’’. ■ PART 717—FAIR CREDIT REPORTING PART 708b—MERGERS OF INSURED CREDIT UNIONS INTO OTHER CREDIT UNIONS; VOLUNTARY TERMINATION OR CONVERSION OF INSURED STATUS 33. Throughout part 708b, remove the terms ‘‘nonfederal’’, ‘‘noninsured’’, ‘‘noninsured credit union’’, and ‘‘noninsured state credit union’’ and add in their place ‘‘non-Federal’’, ‘‘nonfederally insured’’, ‘‘Non-federally insured credit union’’, and ‘‘Nonfederally insured credit union’’, respectively. ■ [Amended] 34. Amend § 708b.1 as follows: ■ a. In paragraph (a), remove the word ‘‘partprescribes’’, and, add in its place, the phrase ‘‘part prescribes’’. ■ b. In paragraph (b), remove the word ‘‘partprescribes’’, and, add in its place, the phrase ‘‘part prescribes’’. ■ c. In paragraph (d), remove the word ‘‘partrestricts’’, and, add in its place, the phrase ‘‘part restricts’’. ■ jbell on DSKJLSW7X2PROD with RULES [Amended] 35. In § 708b.205 amend paragraph (c) by removing the word ‘‘state’’ and adding, in its place, ‘‘state-chartered’’. ■ VerDate Sep<11>2014 16:39 Oct 01, 2020 Jkt 253001 [Amended] 40. In § 717.82(a), add the word ‘‘a’’ between words ‘‘is’’ and ‘‘federal’’. ■ Authority: 12 U.S.C. 1752(7), 1766, 1785, 1786, 1789. § 708b.205 Authority: 12 U.S.C. 1766(a), 1789; 15 U.S.C. 1681m(e). § 717.82 32. The authority citation for part 708b continues to read as follows: ■ § 708b.1 39. The authority citation for part 717 continues to read as follows: ■ PART 725—NATIONAL CREDIT UNION ADMINISTRATION CENTRAL LIQUIDITY FACILITY 41. The authority citation for part 725 continues to read as follows: ■ Authority: 12 U.S.C. 1795f(a)(2). § 725.4 [Amended] 42. Amend § 725.4 as follows: a. In paragraph (b)(4), add the word ‘‘the’’ between the words ‘‘of’’ and ‘‘Facility’’; and ■ b. In paragraph (e), remove the word ‘‘agent’’ and add in its place ‘‘Agent’’ in the first sentence. ■ ■ § 725.18 [Amended] 46. Revise § 740.5(c)(6) to read as follows: ■ § 740.5 *. * * * * * (c) * * * (6) Joint or group advertisements of credit union services where the names of federally insured credit unions and Non-federally insured credit unions are listed and form a part of such advertisement; * * * * * PART 741—REQUIREMENTS FOR INSURANCE 47. The authority citation for part 741 continues to read as follows: ■ Authority: 12 U.S.C. 1757, 1766(a), 1781– 1790, and 1790d; 31 U.S.C. 3717. § 741.4 [Amended] 48. In §§ 741.4(i)(2) and (j)(1), remove the word ‘‘nonfederally’’ and add in its place the word ‘‘non-federally’’. ■ § 741.204 PART 740—ACCURACY OF ADVERTISING AND NOTICE OF INSURED STATUS [Amended] 49. In § 741.204(c), add the word ‘‘union’’ after the word ‘‘credit’’ in the first sentence the first time that word appears. ■ PART 747—ADMINISTRATIVE ACTIONS, ADJUDICATIVE HEARINGS, RULES OF PRACTICE AND PROCEDURE, AND INVESTIGATIONS 50. The authority citation for part 747 continues to read as follows: ■ Authority: 12 U.S.C. 1766, 1782, 1784, 1785, 1786, 1787, 1790a, 1790d; 15 U.S.C. 1639e; 42 U.S.C. 4012a; Pub. L. 101–410; Pub. L. 104–134; Pub. L. 109–351; Pub. L. 114–74. § 747.0 [Amended] 51. In § 747.0, in the second sentence, add the words ‘‘(Uniform Rules)’’ after the words ‘‘uniform rules of practice and procedure’’. ■ § 747.29 43. In § 725.18(c), in the first sentence, add a closing quotation mark after the word ‘‘insolvency’’. ■ 62213 [Amended] 52. In § 747.29(a)(2), remove the word ‘‘part’’ and add in its place the word ‘‘party’’. ■ § 747.207 [Amended] ■ 44. The authority citation for part 740 continues to read as follows: 53. In § 747.207, amend paragraph 3 of the sample notice, by removing ‘‘$100,000’’ and adding, in its place, ‘‘$250,000’’; Authority: 12 U.S.C. 1766, 1781, 1785, and 1789. § 747.306 45. Throughout part 740, remove the term ‘‘nonfederally’’ and add in its place the word ‘‘Non-federally’’. ■ PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 ■ [Amended] 54. In § 747.306(b), in the first sentence, remove the words ‘‘state with’’ the second time they appear; ■ E:\FR\FM\02OCR1.SGM 02OCR1 62214 Federal Register / Vol. 85, No. 192 / Friday, October 2, 2020 / Rules and Regulations § 747.402 [Amended] 55. In § 747.402(b), remove the word ‘‘or’’ between the words ‘‘dissipation’’ and ‘‘credit’’ and add in its place the word ‘‘of’’. ■ PART 748—SECURITY PROGRAM, REPORT OF SUSPECTED CRIMES, SUSPICIOUS TRANSACTIONS, CATASTROPHIC ACTS AND BANK SECRECY ACT COMPLIANCE 56. The authority citation for part 748 continues to read as follows: ■ Authority: 12 U.S.C. 1766(a), 1786(q); 15 U.S.C. 6801–6809; 31 U.S.C. 5311 and 5318. Appendix B to Part 748 [Amended] 57. Amend appendix B to part 748 as follows: ■ a. In footnote 34, remove the word ‘‘identify’’ and add, in its place, the word ‘‘identity’’; ■ b. In footnote 39, remove the word ‘‘Suspiciouis’’ and add, in its place, the word ‘‘Suspicious’’; and ■ c. In footnote 39, remove the word ‘‘Isues’’ and add, in its place, the word ‘‘Issues’’. ■ PART 750—GOLDEN PARACHUTE AND INDEMNIFICATION PAYMENTS 58. The authority citation for part 750 continues to read as follows: ■ Authority: 12 U.S.C. 1786(t). § 750.5 [Amended] 59. In § 750.5(a)(3), add a space between the word ‘‘in’’ and ‘‘§ 750.1(j)’’. ■ § 750.6 [Amended] 60. In § 750.6(a), in the first sentence, add a space between the word ‘‘to’’ and ‘‘§ 750.1(d)(2)(v)’’. ■ [FR Doc. 2020–17372 Filed 10–1–20; 8:45 am] BILLING CODE 7535–01–P DEPARTMENT OF COMMERCE 15 CFR Chapter VII [Docket Number 200928–0256] jbell on DSKJLSW7X2PROD with RULES RIN 0605–XD009 Identification of Prohibited Transactions To Implement Executive Order 13942 and Address the Threat Posed by TikTok and the National Emergency With Respect to the Information and Communications Technology and Services Supply Chain; Preliminary Injunction Order Entered by a Federal District Court Office of the Secretary, U.S. Department of Commerce. AGENCY: VerDate Sep<11>2014 16:39 Oct 01, 2020 Notification of preliminary injunction. ACTION: Jkt 253001 The U.S. Department of Commerce (‘‘Department’’) is issuing this document to inform the public of a preliminary injunction ordered by a United States district court on September 27, 2020, preventing the implementation of specific Department actions. SUMMARY: The court order was effective September 27, 2020. FOR FURTHER INFORMATION CONTACT: Kathy Smith, National Telecommunications and Information Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–1859. For media inquiries: Meghan Burris, Director, Office of Public Affairs, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–4883. SUPPLEMENTARY INFORMATION: On September 24, 2020, the Department published the ‘‘Identification of Prohibited Transactions to Implement Executive Order 13942 and Address the Threat Posed by TikTok and the National Emergency with Respect to the Information and Communications Technology and Services Supply Chain’’ (the ‘‘Identification’’) in the Federal Register at 85 FR 60061. The Identification provided that the following transactions would be prohibited: 1. Any provision of services to distribute or maintain the TikTok mobile application, constituent code, or application updates through an online mobile application store, or any online marketplace where mobile users within the land or maritime borders of the United States and its territories may download or update applications for use on their mobile devices; 2. Any provision of internet hosting services enabling the functioning or optimization of the TikTok mobile application within the land and maritime borders of the United States and its territories; 3. Any provision of content delivery network services enabling the functioning or optimization of the TikTok mobile application within the land and maritime borders of the United States and its territories; 4. Any provision of directly contracted or arranged internet transit or peering services enabling the functioning or optimization of the TikTok mobile application within the land and maritime borders of the United States and its territories; DATES: PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 5. Any utilization of the TikTok mobile application’s constituent code, functions, or services in the functioning of software or services developed and/ or accessible within the land and maritime borders of the United States and its territories; or 6. Any other transaction by any person, or with respect to any property, subject to the jurisdiction of the United States, with ByteDance Ltd., or its subsidiaries, including TikTok Inc., in which any such company has any interest, as may be identified at a future date under the authority delegated under Executive Order 13942. Transactions identified in paragraph 1 above were to be prohibited at 11:59 p.m. eastern standard time on September 27, 2020; transactions identified in paragraphs 2, 3, 4, and 5 above were to be prohibited at 11:59 p.m. eastern standard time on November 12, 2020. Preliminary Injunction On September 18, 2020, TikTok Inc. filed a lawsuit in the United States District Court for the District of Columbia (TikTok Inc. et al. v. Trump et al., No. 20–cv–02658), seeking various relief, including a court order to prohibit the Department from implementing or enforcing Executive Order 13942 or the identified prohibited transactions. Plaintiffs subsequently filed a motion for a preliminary injunction to pursue such relief. On September 27, 2020, the District Court issued an Order granting in part and denying in part the Plaintiffs’ motion for a preliminary injunction. This Order enjoined the Department from implementing the prohibition on transactions identified in Paragraph 1 above. The Department is complying with the terms of this order. Accordingly, this serves as NOTICE that the Secretary’s prohibition of identified transactions (limited to the transactions identified in Paragraph 1 above) pursuant to Executive Order 13942, related to TikTok, HAS BEEN ENJOINED, and WILL NOT GO INTO EFFECT, pending further legal developments. Any further guidance and updates regarding the subject litigation will be posted on the Department website (www.commerce.gov) on an ongoing basis. Dated: September 29, 2020. This document of the Department of Commerce was signed on September 29, by Wilbur Ross, Secretary of Commerce. That document with the original signature and date is maintained by the Department of Commerce. For administrative purposes only, E:\FR\FM\02OCR1.SGM 02OCR1

Agencies

[Federal Register Volume 85, Number 192 (Friday, October 2, 2020)]
[Rules and Regulations]
[Pages 62207-62214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17372]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Parts 700, 701, 702, 704, 705, 707, 708a, 708b, 709, 717, 
725, 740, 741, 747, 748, and 750

RIN 3133-AF22


Technical Amendments

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final rule and final rule; correction.

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SUMMARY: The NCUA Board (Board) is issuing a final rule to make 
technical amendments to various provisions of the NCUA's regulations. 
These amendments correct minor technical problems and improve clarity.

DATES: The final rule is effective on October 2, 2020, except for the 
corrections to the final rule amending 12 CFR part 702, published at 80 
FR 66626, which was delayed on November 6, 2018 (83 FR 55467) and 
December 17, 2019 (84 FR 68781), which are effective on January 1, 
2022.

FOR FURTHER INFORMATION CONTACT: Justin Anderson, Senior Staff 
Attorney; Gira Bose, Staff Attorney, Division of Regulations and 
Legislation, Office of General Counsel, at 1775 Duke Street, 
Alexandria, VA 22314 or telephone: (703) 518-6540.

SUPPLEMENTARY INFORMATION:

I. Background

    The Board periodically issues a technical amendments rule 
correcting minor typographical errors, inaccurate legal citations, or 
superfluous or outdated regulatory provisions throughout the NCUA's 
regulations. Because these changes are technical in nature, and do not 
affect federally insured credit unions in a substantive manner, the 
Board issues these technical amendments rules as final rules without 
notice and comment typically required by the Administrative Procedure 
Act (APA).\1\ Accordingly, the Board is issuing this final rule to 
address those matters.
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    \1\ 5 U.S.C. 553(b)(A), (B).
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II. Legal Authority

    The Board has the legal authority to issue this final rule pursuant 
to its plenary rulemaking authority under the Federal Credit Union Act 
(FCU Act) \2\ and its specific rulemaking authority under the various 
acts the Board administers.
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    \2\ 12 U.S.C. 1766, 1789.
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III. Section-by-Section Analysis

General Wording, Style, and Cross-Reference Changes

    The final rule makes general wording, style, and cross-reference 
changes throughout the NCUA's regulations. For example, the final rule 
corrects various typographical errors. Technical amendments of this 
nature will apply throughout the NCUA's regulations. Therefore, the 
preamble does not address these types of stylistic changes in the 
section-by-section analysis below.

[[Page 62208]]

Parts 700, 701, 702, 704, 705, 707, 708a, 708b, 709, 717, 725, 740, 
741, 747, 748, and 750

    The final rule amends one of the definitions listed in Sec.  700.2 
of the NCUA's regulations that was erroneously changed. The definitions 
in part 700 apply throughout chapter VII of title 12 of the Code of 
Federal Regulations ``unless the context indicates otherwise.'' \3\ A 
``Noninsured credit union'' is currently defined by regulation as ``a 
credit union chartered under the laws of any State, the District of 
Columbia, the several territories and possessions of the United States, 
the Panama Canal Zone, or the Commonwealth of Puerto Rico, whose member 
accounts are not insured by NCUA.'' This term mirrors the Federal 
Credit Union Act definition.\4\ A final technical amendments rule 
issued in 2018 amended several references to ``Non-federally insured 
credit unions'' changing them to ``Noninsured credit unions.'' Although 
this change conformed the regulatory definition to the statutory 
definition, it also inadvertently created internal inconsistencies in 
the regulations and created unintended confusion and consequences. The 
Board has determined that the erroneous technical amendment issued in 
2018 needs to be reversed to correct the inadvertent regulatory 
inconsistencies. This will restore clarity that the term ``Non-
federally insured credit unions,'' consistent with the Federal Credit 
Union Act, includes credit unions whose member accounts are insured by 
agencies or entities other than the NCUA, such as state or private 
share insurers, as well as credit unions whose member accounts are not 
insured by any party. Accordingly, the final rule makes this change in 
Sec.  700.2 and in other parts where the term ``Noninsured credit 
union'' currently appears--parts 704, 705, 708b, and 740.
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    \3\ 12 CFR 700.2.
    \4\ 12 U.S.C. 1752(7).
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Section 701.34 Designation of Low Income Status; Acceptance of 
Secondary Capital Accounts by Low-Income Designated Credit Unions

    Section 701.34(a)(6) provides the definition of ``median family 
income'' and ``total median earnings for individuals'' by referring to 
data from the Census Bureau. The current definition points to the 
Census Bureau's American FactFinder site with a specific hyperlink. The 
Census Bureau no longer houses this data at that specific site. 
Accordingly, this final rule replaces the ``FactFinder'' reference with 
``American Community Survey'' and provides a more general link to the 
Census Bureau's website. This change is not intended to alter the 
reliance on Census Bureau data for these statistics.

Appendix B to Part 701--Chartering and Field of Membership Manual

    The final rule amends certain provisions to update the NCUA office 
responsible for a certain activity. For instance, the Office of Credit 
Union Resources and Expansion (CURE) has replaced the Regional Office 
as the responsible office at Chapter 1, Section III. The final rule 
also updates references to the Regional Offices to reflect the agency's 
realignment that was finalized in 2019, as well as an update to the 
name of one of the credit union trade associations noted in the 
Chartering Manual.

Part 702--Capital Adequacy

    In addition to typographical corrections, the final rule includes 
corrections to the amendatory instructions from the 2015 final rule on 
risk-based capital \5\ to ensure that cross-references to other 
provisions that the Board has since been amended will be correctly 
reflected in this part when the 2015 final rule goes into effect, as it 
is scheduled to do on January 1, 2022.\6\ These corrections do not make 
any substantive change to the 2015 final rule.
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    \5\ 80 FR 66626 (Oct. 29. 2015).
    \6\ See 84 FR 68781 (Dec. 17, 2019).
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Part 704--Corporate Credit Union

    Throughout part 704, corporate credit unions are frequently 
referred to as ``corporates.'' The final rule amends several sections 
in this part to replace ``corporate'' or ``corporates'' with 
``corporate credit union'' or ``corporate credit unions'' to avoid 
confusion and to be more precise.
    In addition, a reference to ``notational principal balance'' has 
been corrected to ``notional principal balance.''

Part 707--Truth in Savings

    This final rule makes a notable change relating to the model 
clauses and forms in appendix B to this part, which addresses Truth in 
Savings. Specifically, appendix B refers several times to a chart of 
accounts in a specific section of the NCUA's Accounting Manual for 
Federal Credit Unions. This publication no longer contains this chart 
of accounts, but this chart served as the model for the sample forms. 
Accordingly, the final rule adds a statement to this effect in the 
prefatory language to this appendix to avoid confusion for those 
referring to the current version of the Accounting Manual.
    In addition, the final rule redesignates several paragraphs in 
appendix C to this part to correct duplicate paragraph numbering that 
resulted from prior amendments. This change does not affect or add to 
the substance of these provisions. The final rule will also correct 
minor wording or typographical errors.

Part 708a--Bank Conversions and Mergers

    Section 708a.304 addresses the notice that a credit union must file 
with the NCUA within 30 days of its board adopting a proposal to merge. 
This provision refers to an asset threshold set by the Federal Trade 
Commission (FTC) under the Hart-Scott Rodino Act that triggers a 
premerger notification to the FTC. The threshold amount listed in the 
current regulation is outdated. Because the FTC will continue to update 
this threshold, removing the specific dollar amount from this 
regulation will help to avoid confusion or alternatively, the need for 
the NCUA to update its regulation each time the FTC updates the 
threshold. Credit unions should refer to the FTC's announcements of the 
threshold amounts on that agency's website and in the Federal Register.

Part 747--Administrative Actions, Adjudicative Hearings, Rules of 
Practice and Procedure, and Investigations

    The final rule makes two notable clarifications and updates to this 
part. In Sec.  747.0, which sets forth the scope of this part, the 
final rule adds a defined term for the Uniform Rules when that subject 
is first discussed in order to provide clarity. In Sec.  747.207, which 
addresses notices of termination of insured status, the final rule 
updates a reference to the standard maximum share insurance amount from 
$100,000 to $250,000 to reflect the statutory change that Congress 
enacted in 2010.\7\
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    \7\ Public Law 111-203, sec. 335(b).
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IV. Regulatory Procedures

Administrative Procedure Act

    Generally, the APA requires a Federal agency to provide the public 
with notice and an opportunity to comment on agency rulemakings.\8\ The 
APA, however, creates an exception in cases where an agency for good 
cause determines ``that notice and public procedure thereon are 
impracticable, unnecessary, or contrary to the public

[[Page 62209]]

interest.'' \9\ Because all of the changes in this final rule involve 
only minor, technical amendments to the NCUA's existing regulations, 
the Board has determined that notice and comment would be unnecessary 
and contrary to the public interest.
---------------------------------------------------------------------------

    \8\ 5 U.S.C. 553(b).
    \9\ Id. at 553(b)(B).
---------------------------------------------------------------------------

    Furthermore, the APA generally provides that a final rule may not 
become effective until at least 30 days after its publication in the 
Federal Register unless the agency determines that good cause exists to 
dispense with this requirement.\10\ As noted above, given that the rule 
does not impose new requirements on federally insured credit unions and 
only involves minor, technical amendments to existing regulations, the 
Board finds sufficient good cause exists to dispense with the 30-day 
effective date requirement. The rule will, therefore, be effective 
immediately upon publication.
---------------------------------------------------------------------------

    \10\ 5 U.S.C. 553(d). For the same reasons, the Board is not 
providing the usual 60-day comment period before finalizing this 
rule. See NCUA Interpretive Ruling and Policy Statement (IRPS) 87-2, 
as amended by IRPS 03-2 and IRPS 15-1. 80 FR 57512 (Sept. 24, 2015), 
available at https://www.ncua.gov/files/publications/irps/IRPS1987-2.pdf.
---------------------------------------------------------------------------

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires the NCUA to prepare an 
analysis of any significant economic impact a regulation may have on a 
substantial number of small entities (primarily those under $100 
million in assets).\11\ As discussed previously, consistent with the 
APA,\12\ the Board has determined for good cause that general notice 
and opportunity for public comment is unnecessary, and therefore the 
Board is not issuing a notice of proposed rulemaking. Rules that are 
exempt from notice and comment procedures are also exempt from the RFA 
requirements, including conducting a regulatory flexibility analysis, 
when among other things the agency for good cause finds that notice and 
public procedure are impracticable, unnecessary, or contrary to the 
public interest. Accordingly, the Board has concluded that the RFA's 
requirements relating to initial and final regulatory flexibility 
analysis do not apply.
---------------------------------------------------------------------------

    \11\ 5 U.S.C. 601-612.
    \12\ 5 U.S.C. 553(b)(3)(B).
---------------------------------------------------------------------------

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 increases an existing burden.\13\ For purposes of the PRA, 
a paperwork burden may take the form of a reporting or recordkeeping 
requirement, both referred to as information collections. As the final 
rule makes only minor, technical amendments to the NCUA's existing 
regulations, the NCUA has determined it does not increase paperwork 
requirements under the PRA.
---------------------------------------------------------------------------

    \13\ 44 U.S.C. 3501-3521.
---------------------------------------------------------------------------

Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA) provides generally for congressional review of agency 
rules.\14\ A reporting requirement is triggered in instances where the 
NCUA issues a ``final rule'' as defined by statute.\15\ As required by 
SBREFA, the NCUA will submit this rule to the Office of Management and 
Budget for it to determine if the final rule is a ``major rule'' for 
purposes of SBREFA. The NCUA does not believe the rule is major.
---------------------------------------------------------------------------

    \14\ 5 U.S.C. 801-808.
    \15\ 5 U.S.C. 551, 804.
---------------------------------------------------------------------------

Assessment of Federal Regulations and Policies on Families

    The NCUA has determined that this rule will not affect family well-
being within the meaning of section 654 of the Treasury and General 
Government Appropriations Act.\16\
---------------------------------------------------------------------------

    \16\ Public Law 105-277, sec. 654, 112 Stat. 2681, 2681-528 
(1998).
---------------------------------------------------------------------------

Executive Order 13132

    Executive Order 13132 encourages independent regulatory agencies to 
consider the impact of their actions on state and local interests.\17\ 
The NCUA, an independent regulatory agency as defined in 44 U.S.C. 
3502(5), voluntarily complies with the executive order to adhere to 
fundamental federalism principles. The final rule does not have 
substantial direct effects 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. The NCUA 
has therefore determined that this final rule does not constitute a 
policy that has federalism implications for purposes of the Executive 
order.
---------------------------------------------------------------------------

    \17\ ``Federalism,'' E.O. 13,132 (Aug. 10, 1999).
---------------------------------------------------------------------------

List of Subjects

12 CFR Part 700

    Credit unions.

12 CFR Part 701

    Advertising, Aged, Civil rights, Credit, Credit unions, Fair 
housing, Individuals with disabilities, Insurance, Marital status 
discrimination, Mortgages, Religious discrimination, Reporting and 
recordkeeping requirements, Sex discrimination, Signs and symbols, 
Surety bonds.

12 CFR Part 702

    Credit unions, Reporting and recordkeeping requirements.

12 CFR Part 704

    Credit unions, Reporting and recordkeeping requirements, Surety 
bonds.

12 CFR Part 705

    Community programs, Credit unions, Grants, Loans, Low income, 
Revolving fund.

12 CFR Part 707

    Advertising, Credit unions, Reporting and recordkeeping 
requirements, Truth in lending.

12 CFR Part 708a

    Credit unions, Reporting and recordkeeping requirements.

12 CFR Part 708b

    Bank deposit insurance, Credit unions, Reporting and recordkeeping 
requirements.

12 CFR Part 709

    Claims, Credit unions.

12 CFR Part 717

    Consumer protection, Credit unions, Information, Privacy, Reporting 
and recordkeeping requirements.

12 CFR Part 725

    Central liquidity facility.

12 CFR Part 740

    Advertisements, Credit unions, Share insurance, Signs and symbols.

12 CFR Part 741

    Bank deposit insurance, Credit unions, Reporting and recordkeeping 
requirements.

12 CFR Part 747

    Administrative practice and procedure, Bank deposit insurance, 
Claims, Credit unions, Crime, Equal access to justice, Investigations, 
Lawyers, Penalties.

12 CFR Part 748

    Credit unions, Reporting and recordkeeping requirements, Security 
measures.

12 CFR Part 750

    Credit unions, Golden parachute payments, Indemnity payments.


[[Page 62210]]


    By the National Credit Union Administration Board on June 25, 
2020.
Gerard Poliquin,
Secretary of the Board.

Correction

    In FR Doc. 2015-26790, appearing on page 66626 in the Federal 
Register of Thursday, October 29, 2015, the following corrections are 
made:


Sec.  702.1  [Corrected]

0
1. On page 66706, in the third column, revise Sec.  702.1(a) by 
removing ``12 U.S.C. 1776'' adding in its place ``12 U.S.C. 1766''.

0
2. On page 66722, in the first column, remove instruction 11.


Sec.  702.305  [Corrected]

0
3. On page 66722, in the first column, correct instruction 12 to read 
as follows: ``Amend newly redesignated Sec.  702.305(b)(4) by removing 
the citation ``Sec.  702.504'' and adding in its place ``Sec.  
702.304''
    For the reasons discussed above, the Board is correcting FR Doc. 
2015-26790, as set forth above, and amending 12 CFR parts 700, 701, 
702, 704, 705, 707, 708a, 708b, 709, 717, 725, 740, 741, 747, 748, and 
750 as follows:

PART 700--DEFINITIONS

0
1. The authority citation for part 700 continues to read as follows:

    Authority: 12 U.S.C. 1752, 1757(6), 1766.


0
2. Amend Sec.  700.2 by:
0
a. Removing the definition of ``Noninsured credit union''; and
0
b. Adding in alphabetical order the definition of ``Non-federally 
insured credit union''.
    The addition reads as follows:


Sec.  700.2   Definitions

* * * * *
    Non-federally insured credit union means a credit union chartered 
under the laws of any State, the District of Columbia, the several 
territories and possessions of the United States, the Panama Canal 
Zone, or the Commonwealth of Puerto Rico, whose member accounts are not 
insured by the NCUA.
* * * * *

PART 701--ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS

0
3. The authority citation for part 701 continues to read as follows:

    Authority: 12 U.S.C. 1752(5), 1755, 1756, 1757, 1758, 1759, 
1761a, 1761b, 1766, 1767, 1782, 1784, 1786, 1787, 1789. Section 
701.6 is also authorized by 15 U.S.C. 3717. Section 701.31 is also 
authorized by 15 U.S.C. 1601 et seq.; 42 U.S.C. 1981 and 3601-3610. 
Section 701.35 is also authorized by 42 U.S.C. 4311-4312.


Sec.  701.22  [Amended]

0
4. In Sec.  701.22, amend paragraph (e) by removing the citation 
``(b)(1)(ii)'' and adding in its place the citation ``(b)(5)(ii)''.

0
5. Amend Sec.  701.34 by revising paragraph (a)(6) to read as follows:


Sec.  701.34  Designation of low income status; Acceptance of secondary 
capital accounts by low-income designated credit unions.

* * * * *
    (a) * * *
    (6) Definitions. The following definitions apply to this section:
    Median family income and total median earnings for individuals are 
income statistics reported by the U.S. Census Bureau. The applicable 
income data can be obtained via the American Community Survey on the 
Census Bureau's web page at http://www.census.gov.
    Metropolitan area means an area designated by the Office of 
Management and Budget pursuant to 31 U.S.C. 1104(d), 44 U.S.C. 3504(c), 
and Executive Order 10253 (June 13, 1951) (as amended).
* * * * *

0
6. Amend appendix B to part 701 by revising the first sentence of the 
second paragraph under the heading ``III --Subscribers'', Appendix 3, 
and Appendix 5 to read as follows:

Appendix B to Part 701--Chartering and Field of Membership Manual

* * * * *

III--Subscribers

* * * * *
    Persons interested in organizing a Federal credit union should 
contact one of the credit union trade associations or the NCUA 
Office of Credit Union Resources and Expansion. * * *
* * * * *

Appendix 3

NCUA Offices

Office of Credit Union Resources and Expansion (CURE)
1775 Duke Street, Alexandria, VA 22314-3428
Phone: 703-518-1150
Fax: 703-518-6672
Email: [email protected]

    The Divisions of Consumer Access (East, Central, and West) 
within CURE share the responsibility for chartering and field-of-
membership matters, low-income designations, charter conversions, 
and bylaw amendments.

Eastern Region--Alexandria
1775 Duke Street, Alexandria, VA 22314-3428
Phone: 703-519-4600
Fax: 703-519-6674
Email: [email protected]

    States in the Eastern Region include: Connecticut, Delaware, the 
District of Columbia, Maine, Maryland, Massachusetts, Michigan, New 
Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, 
Vermont, Virginia, and West Virginia.

Southern Region--Austin
4807 Spicewood Springs Road, Suite 5200, Austin, TX 78759-8490
Phone: 512-342-5600
Fax: 512-342-5620
Email: [email protected]

    States in the Southern Region include: Alabama, Arkansas, 
Florida, Georgia, Indiana, Kentucky, Louisiana, Mississippi, North 
Carolina, South Carolina, Oklahoma, Tennessee, and Texas, as well as 
Puerto Rico and the U.S. Virgin Islands.

Western Region--Tempe
1230 West Washington Street, Suite 301, Tempe, AZ 85281
Phone: 602-302-6000
Fax: 602-302-6024
Email: [email protected]

    States in the Western Region include: Alaska, Arizona, 
California, Colorado, Hawaii, Idaho, Illinois, Iowa, Kansas, 
Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, 
Nevada, Oregon, South Dakota, Utah, Washington, Wisconsin, and 
Wyoming, as well as Guam.
* * * * *

Appendix 5

Trades Associations

Credit Union National Association (CUNA)
www.cuna.org
P.O. Box 431, Madison, WI 53701, 800-356-9655

National Association of Federally-Insured Credit Unions (NAFCU)
www.nafcu.org
3138 N 10th Street, Suite 300, Arlington, VA 22201-2149, 800-336-
4644

National Association of State Credit Union Supervisors (NASCUS)
www.nascus.org
1655 North Fort Myer Drive, Suite 650, Arlington, VA 22209, 703-528-
8351

Inclusiv
https://www.inclusiv.org/
39 Broadway, Suite 2140, New York, NY 10006-3063, 212-809-1850

PART 702--CAPITAL ADEQUACY

0
7. The authority citation for part 702 continues to read as follows:

    Authority: 12 U.S.C. 1766(a), 1790d.


Sec.  702.306  [Amended]

0
8. In Sec.  702.306(a)(1)(i), remove the word ``the-present'' and add, 
in its place, the word ``then-present''.

[[Page 62211]]

PART 703--INVESTMENT AND DEPOSIT ACTIVITIES

0
9. The authority citation for part 703 continues to read as follows:

    Authority: 12 U.S.C. 1757(7), 1757(8), 1757(15).


0
10. Revise Sec.  703.14(k) to read as follows:


Sec.  703.14  Permissible investments.

* * * * *
    (k) Derivatives. A Federal credit union may only enter into the 
following derivatives transactions:
* * * * *


Sec.  703.112  [Amended]

0
11. In Sec.  703.112, amend paragraph (a) by removing the word 
``fescribed'' and adding, in its place, the word ``described''.

PART 704--CORPORATE CREDIT UNIONS

0
12. The authority citation for part 704 continues to read as follows:

    Authority: 12 U.S.C. 1766(a), 1781, 1789.


Sec.  704.1  [Amended]

0
13. In Sec.  704.1, amend paragraph (a) by removing in the second 
sentence the words ``Noninsured corporate credit unions'' and adding, 
in their place, the words ``Non-federally insured corporate credit 
unions''.


Sec.  704.4  [Amended]

0
14. Amend Sec.  704.4 by adding the words ``credit union'' after 
``corporate'' in the last sentence of paragraph (e)(1)(ii)(5).


Sec.  704.5  [Amended]

0
15. In Sec.  704.5 amend paragraph (e)(4) by adding the words ``credit 
union'' after ``corporate'' in the last sentence.

0
16. Amend Sec.  704.6 by revising paragraph (f)(2) to read as follows.


Sec.  704.6  Credit risk management.

* * * * *
    (f) * * *
    (2) A corporate credit union must identify and monitor any changes 
in credit quality of the investment and retain appropriate supporting 
documentation as long as the corporate credit union owns the 
investment.
* * * * *

0
17. Amend Sec.  704.8 by revising paragraphs (j)(1) and (k) to read as 
follows:


Sec.  704.8   Asset and liability management.

* * * * *
    (j) Limit breaches. (1)(i) If a corporate credit union's decline in 
NEV, base case NEV ratio, or any NEV ratio calculated under paragraph 
(d) of this section exceeds established or permitted limits, or the 
corporate credit union is unable to satisfy the tests in paragraph (f) 
or (g) of this section, the operating management of the corporate 
credit union must immediately report this information to its board of 
directors and ALCO; and
    (ii) If the corporate credit union cannot adjust its balance sheet 
to meet the requirements of paragraph (d), (f), or (g) of this section 
within 10 calendar days after detection by the corporate credit union, 
the corporate credit union must notify in writing the Director of the 
Office of National Examinations and Supervision.
* * * * *
    (k) Overall limit on business generated from individual credit 
unions. On or after April 22, 2013, a corporate credit union is 
prohibited from accepting from any member, or any nonmember credit 
union, any investment, including shares, loans, PCC, or NCAs if, 
following that investment, the aggregate of all investments from that 
entity in the corporate credit union would exceed 15 percent of the 
corporate credit union's moving daily average net assets.

0
18. Amend Sec.  704.11 by:
0
a. Adding the words ``credit union'' after the second use of the word 
``corporate'' in the last sentence of paragraph (b)(2);
0
b. Adding the words ``credit union'' after ``corporate'' in the first 
sentence of paragraph (b)(3);
0
c. Adding the word ``from'' between the words ``activity'' and ``the'' 
in paragraph (e)(2); and
0
d. Revising paragraph (g)(7).
    The revision reads as follows:


Sec.  704.11   Corporate Credit Union Service Organizations (Corporate 
CUSOs).

* * * * *
    (g) * * *
    (7) Will inform the corporate credit union, at least quarterly, of 
all the compensation paid by the CUSO to its employees who are also 
employees of the corporate credit union; and
* * * * *

0
19. Amend Sec.  704.14 by revising paragraphs (a)(4) and (8) to read as 
follows:


Sec.  704.14   Representation.

    (a) * * *
    (4) No individual may be elected or appointed to serve on the board 
if, after such election or appointment, any member of the corporate 
credit union would have more than one representative on the board of 
the corporate credit union;
* * * * *
    (8) In the case of a corporate credit union whose membership is 
composed of more than 25 percent non-credit unions, the majority of 
directors serving as representatives of member credit unions, including 
the chair, must be elected only by member credit unions; and
* * * * *

0
20. Revise Sec.  704.19(a) introductory text to read as follows:


Sec.  704.19   Disclosure of executive compensation.

    (a) Annual disclosure. A corporate credit union must annually 
prepare and maintain a disclosure of the dollar amount of compensation 
paid to its most highly compensated employees, including compensation 
from any corporate CUSO in which the corporate credit union has 
invested or made a loan, in accordance with the following schedule:
* * * * *


Sec.  704.20  [Added and Reserved]

0
21. Add reserved Sec.  704.20.

0
22. Amend Sec.  704.22 by revising paragraph (b) to read as follows:


Sec.  704.22   Membership fees.

* * * * *
    (b) The corporate credit union must calculate the fee uniformly for 
all members as a percentage of each member's assets, except that the 
corporate credit union may reduce the amount of the fee for members 
that have contributed capital to the corporate credit union. Any 
reduction must be proportional to the amount of the member's 
nondepleted contributed capital.
* * * * *

Appendix A to Part 704 [Amended]

0
23. Amend appendix A to part 704 as follows:
0
a. In Part I, add the words ``credit union'' between the words 
``corporate'' and ``on'' in the first sentence;
0
b. In Part I, add the words ``credit union'' between the words 
``corporate'' and ``before'' in the first sentence;
0
c. In Part II, Model Form C, add the words ``credit union'' after the 
word ``corporate'' in the second sentence of paragraph (3); and
0
d. In Part II, Model Form D, add the words ``credit union'' after the 
word ``corporate'' in the second sentence of paragraph (3).

[[Page 62212]]

Appendix B to Part 704 [Amended]

0
24. Amend appendix B to part 704 as follows:
0
a. In paragraph titled ``Base-Plus'', add the words ``credit union'' 
after the word ``corporate'';
0
b. In paragraph (b)(1) of Part III, remove the word ``corporate's'' and 
add, in its place, ``corporate credit union's'';
0
c. In paragraph (b)(2) of Part III, add the words ``credit union'' 
between the words ``corporate'' and ``must'';
0
d. In paragraph (b)(2) of Part III, remove the word ``corporate's'' and 
add, in its place, ``corporate credit union's'';
0
e. In paragraph (b)(3) of Part III, add the words ``credit union'' 
after the word ``corporate'';
0
f. In paragraph (b)(4) of Part III, add the words ``credit union'' 
between the words ``corporate'' and ``must''; and
0
g. In paragraph (b)(4) of Part III, remove the word ``corporate's'' and 
add, in its place, ``corporate credit union's''.

Appendix C to Part 704 [Amended]

0
25. Amend appendix C to part 704 by:
0
a. In Part I, paragraph (b):
0
i. Revising the definition of ``Face amount;'' and
0
ii. Revising paragraph (2) of the definition of ``Qualifying mortgage 
loan;''
0
b. In Part II, paragraph (a)(6), in the first sentence, remove the word 
``corporate's'' and add, in its place, ``corporate credit union's'';
0
c. In Part II, paragraph (b)(2)(ii), in the last sentence, remove the 
word ``or'' and add, in its place, the word ``of''; and
0
d. In Part II, paragraph (c)(3)(i), in the last sentence, remove the 
word ``corporate's'' and add, in its place, the words ``corporate 
credit union's''.
    The revisions read as follows:

Appendix C to Part 704--*

* * * * *

Part I

* * * * *
    (b) * * *
    Face amount means the notional principal, or face value, amount 
of an off-balance sheet item or the amortized cost of an on-balance 
sheet asset.
* * * * *
    Qualifying mortgage loan * * *
    (2) Is underwritten in accordance with prudent underwriting 
standards, including standards relating to the ratio of the loan 
amount to the value of the property (LTV ratio), as presented in the 
Interagency Guidelines for Real Estate Lending Policies (December 
31, 1992). A nonqualifying mortgage loan that is paid down to an 
appropriate LTV ratio (calculated using value at origination, 
appraisal obtained within the prior six months, or updated value 
using an automated valuation model) may become a qualifying loan if 
it meets all other requirements of this definition;
* * * * *

PART 705--COMMUNITY DEVELOPMENT REVOLVING LOAN FUND ACCESS FOR 
CREDIT UNIONS

0
26. The authority citation for part 705 continues to read as follows:

    Authority: 12 U.S.C. 1756, 1757(5)(D), and (7)(I), 1766, 1782, 
1784, 1785 and 1786.


Sec.  Sec.  705.2 and 705.7   [Amended]

0
27. Amend Sec. Sec.  705.2 and 705.7(b)(3) by removing ``noninsured 
credit union'' and adding in its place ``Non-federally insured credit 
union''.

PART 707--TRUTH IN SAVINGS

0
28. The authority citation for part 707 continues to read as follows:

    Authority: 12 U.S.C. 4311.


0
29. Amend appendix B to part 707 by:
0
a. Adding a paragraph at the end of the introductory text;
0
b. In the note to B-6 Sample Form (REGULAR SHARE ACCOUNT DISCLOSURES), 
revising ``Nonfederally'' to read as ``Non-federally'',
0
c. In B-9 ``Sample Form (TERM SHARE (CERTIFICATE) ACCOUNT 
DISCLOSURES)'':
0
i. In paragraph 3, removing the word ``minium'' in the first non-
italicized sentence, and adding in its place the word ``minimum''; and
0
ii. In the ``NOTE'' in the last sentence, removing the word ``if'', and 
adding in its place, the word ``is''.
    The addition reads as follows:

Appendix B to Part 707--Model Clauses and Sample Forms

* * * * *
    Note also that certain information that appeared in previous 
versions of the NCUA Accounting Manual for FCUs that served as a 
model for this appendix do not appear in the current version of that 
publication.
* * * * *

0
30. Amend appendix C to part 707 by:
0
a. In Section 707.2:
0
i. Under ``(i) Dividend and Dividends'' revise paragraph 4.D;
0
ii. Under ``(z) Variable-Rate Account'', revise the first sentence of 
paragraph 2;
0
b. In Section 707.4,
0
i. Under ``(a)(2)(i)'' revise paragraph (2;
0
ii. Under ``(b)(6)(ii)'' revise paragraph (2)(i);
0
c. In Section 707.7, revise the heading for ``(a)(2)'';
0
d. In Section 707.9, under ``(c)Record retention'', revise paragraph 
(1)(ii);
0
e. In Section 707.11, under ``(a)(1) General'':
0
i. Redesignate sections (a)(1)(2) through (a)(1)(6) as (a)(1)(3) 
through (a)(1)(7); and
0
ii. redesignate the second section numbered (1) as (2).
    The revisions read as follows:

Appendix C to Part 707--Official Staff Interpretations

* * * * *

Section 707.2--Definitions

* * * * *

(i) Dividend and Dividends

* * * * *
    4. * * *
    D. I further certify that the Board of Directors of this Credit 
Union has, and at the time of adoption of this resolution had, full 
power and lawful authority to adopt the foregoing resolutions and 
that this resolution revokes any prior resolution.
* * * * *

(z) Variable-Rate Account

* * * * *
    2. Differences between fixed-rate and variable-rate accounts. 
All accounts must either be fixed-rate or variable-rate accounts. 
Classifying an account as variable-rate affects credit unions three 
ways:
* * * * *

Section 707.4--Account Disclosures

* * * * *

(a)(2) Requests

(a)(2)(i)

* * * * *
    2. General requests. When members or potential members request 
disclosures about a type of account (a share draft account, for 
example), a credit union that offers several variations may provide 
disclosures for any one of them. No disclosures need be made to 
nonmembers, though a credit union may provide disclosures to 
nonmembers within its sole discretion.
* * * * *

(b) Content of Account Disclosures

* * * * *

(b)(6)(ii) Early Withdrawal Penalties

* * * * *
    2. * * *
    i. Monetary penalties, such as a specific dollar amount (e.g., 
``$10.00'') or a specific days' worth of dividends (e.g., ``seven 
days' dividends plus accrued but uncredited dividends, but only if 
the account is closed'').
* * * * *

Section 707.7--Payment of Dividends

* * * * *

(a2) Determination of Minimum Balance To Earn Dividends

* * * * *

[[Page 62213]]

Section 707.9--Enforcement and Record Retention

(c) Record retention

* * * * *
    ii. Retained sample disclosures for each type of account offered 
to members, such as account-opening disclosures, copies of 
advertisements, and change-in-term notices; and information 
regarding the dividend rates and annual percentage yields offered.
* * * * *

PART 708a--BANK CONVERSIONS AND MERGERS

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

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


Sec.  708a.304  [Amended]

0
36. In Sec.  708a.304(a)(13), remove the words ``currently $63.4 
million,''.

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

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

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



0
33. Throughout part 708b, remove the terms ``nonfederal'', 
``noninsured'', ``noninsured credit union'', and ``noninsured state 
credit union'' and add in their place ``non-Federal'', ``non-federally 
insured'', ``Non-federally insured credit union'', and ``Non-federally 
insured credit union'', respectively.


Sec.  708b.1  [Amended]

0
34. Amend Sec.  708b.1 as follows:
0
a. In paragraph (a), remove the word ``partprescribes'', and, add in 
its place, the phrase ``part prescribes''.
0
b. In paragraph (b), remove the word ``partprescribes'', and, add in 
its place, the phrase ``part prescribes''.
0
c. In paragraph (d), remove the word ``partrestricts'', and, add in its 
place, the phrase ``part restricts''.


Sec.  708b.205  [Amended]

0
35. In Sec.  708b.205 amend paragraph (c) by removing the word 
``state'' and adding, in its place, ``state-chartered''.

PART 709--INVOLUNTARY LIQUIDATION OF FEDERAL CREDIT UNIONS AND 
ADJUDICATION OF CREDITOR CLAIMS INVOLVING FEDERALLY INSURED CREDIT 
UNIONS IN LIQUIDATION

0
36. The authority citation for part 709 continues to read as follows:

    Authority: 12 U.S.C. 1757, 1766, 1767, 1786(h), 1786(t), and 
1787(b)(4), 1788, 1789, 1789a.


Sec.  709.8  [Amended]

0
37. In Sec.  709.8 amend paragraph (f) by in the first sentence, adding 
the word ``is'' between the words ``request'' and ``filed''.


Sec.  709.9  [Amended]

0
38. In Sec.  709.9 amend paragraph (b)(5)(ii)(B) by, in the last 
sentence, removing the word ``all'' after the word ``existing''.

PART 717--FAIR CREDIT REPORTING

0
39. The authority citation for part 717 continues to read as follows:

    Authority: 12 U.S.C. 1766(a), 1789; 15 U.S.C. 1681m(e).


Sec.  717.82  [Amended]

0
40. In Sec.  717.82(a), add the word ``a'' between words ``is'' and 
``federal''.

PART 725--NATIONAL CREDIT UNION ADMINISTRATION CENTRAL LIQUIDITY 
FACILITY

0
41. The authority citation for part 725 continues to read as follows:

    Authority: 12 U.S.C. 1795f(a)(2).


Sec.  725.4  [Amended]

0
42. Amend Sec.  725.4 as follows:
0
a. In paragraph (b)(4), add the word ``the'' between the words ``of'' 
and ``Facility''; and
0
b. In paragraph (e), remove the word ``agent'' and add in its place 
``Agent'' in the first sentence.


Sec.  725.18  [Amended]

0
43. In Sec.  725.18(c), in the first sentence, add a closing quotation 
mark after the word ``insolvency''.

PART 740--ACCURACY OF ADVERTISING AND NOTICE OF INSURED STATUS

0
44. The authority citation for part 740 continues to read as follows:

    Authority: 12 U.S.C. 1766, 1781, 1785, and 1789.


0
45. Throughout part 740, remove the term ``nonfederally'' and add in 
its place the word ``Non-federally''.

0
46. Revise Sec.  740.5(c)(6) to read as follows:


Sec.  740.5  *.

* * * * *
    (c) * * *
    (6) Joint or group advertisements of credit union services where 
the names of federally insured credit unions and Non-federally insured 
credit unions are listed and form a part of such advertisement;
* * * * *

PART 741--REQUIREMENTS FOR INSURANCE

0
47. The authority citation for part 741 continues to read as follows:

    Authority: 12 U.S.C. 1757, 1766(a), 1781-1790, and 1790d; 31 
U.S.C. 3717.


Sec.  741.4  [Amended]

0
48. In Sec. Sec.  741.4(i)(2) and (j)(1), remove the word 
``nonfederally'' and add in its place the word ``non-federally''.


Sec.  741.204  [Amended]

0
49. In Sec.  741.204(c), add the word ``union'' after the word 
``credit'' in the first sentence the first time that word appears.

PART 747--ADMINISTRATIVE ACTIONS, ADJUDICATIVE HEARINGS, RULES OF 
PRACTICE AND PROCEDURE, AND INVESTIGATIONS

0
50. The authority citation for part 747 continues to read as follows:

    Authority: 12 U.S.C. 1766, 1782, 1784, 1785, 1786, 1787, 1790a, 
1790d; 15 U.S.C. 1639e; 42 U.S.C. 4012a; Pub. L. 101-410; Pub. L. 
104-134; Pub. L. 109-351; Pub. L. 114-74.


Sec.  747.0  [Amended]

0
51. In Sec.  747.0, in the second sentence, add the words ``(Uniform 
Rules)'' after the words ``uniform rules of practice and procedure''.


Sec.  747.29  [Amended]

0
52. In Sec.  747.29(a)(2), remove the word ``part'' and add in its 
place the word ``party''.


Sec.  747.207  [Amended]

0
53. In Sec.  747.207, amend paragraph 3 of the sample notice, by 
removing ``$100,000'' and adding, in its place, ``$250,000'';


Sec.  747.306  [Amended]

0
54. In Sec.  747.306(b), in the first sentence, remove the words 
``state with'' the second time they appear;

[[Page 62214]]

Sec.  747.402  [Amended]

0
55. In Sec.  747.402(b), remove the word ``or'' between the words 
``dissipation'' and ``credit'' and add in its place the word ``of''.

PART 748--SECURITY PROGRAM, REPORT OF SUSPECTED CRIMES, SUSPICIOUS 
TRANSACTIONS, CATASTROPHIC ACTS AND BANK SECRECY ACT COMPLIANCE

0
56. The authority citation for part 748 continues to read as follows:

    Authority: 12 U.S.C. 1766(a), 1786(q); 15 U.S.C. 6801-6809; 31 
U.S.C. 5311 and 5318.

Appendix B to Part 748 [Amended]

0
57. Amend appendix B to part 748 as follows:
0
a. In footnote 34, remove the word ``identify'' and add, in its place, 
the word ``identity'';
0
b. In footnote 39, remove the word ``Suspiciouis'' and add, in its 
place, the word ``Suspicious''; and
0
c. In footnote 39, remove the word ``Isues'' and add, in its place, the 
word ``Issues''.

PART 750--GOLDEN PARACHUTE AND INDEMNIFICATION PAYMENTS

0
58. The authority citation for part 750 continues to read as follows:

    Authority: 12 U.S.C. 1786(t).


Sec.  750.5  [Amended]

0
59. In Sec.  750.5(a)(3), add a space between the word ``in'' and 
``Sec.  750.1(j)''.


Sec.  750.6  [Amended]

0
60. In Sec.  750.6(a), in the first sentence, add a space between the 
word ``to'' and ``Sec.  750.1(d)(2)(v)''.

[FR Doc. 2020-17372 Filed 10-1-20; 8:45 am]
BILLING CODE 7535-01-P