[Federal Register Volume 77, Number 55 (Wednesday, March 21, 2012)]
[Rules and Regulations]
[Pages 16425-16428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-6835]

Rules and Regulations
                                                Federal Register

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Federal Register / Vol. 77, No. 55 / Wednesday, March 21, 2012 / 
Rules and Regulations

[[Page 16425]]


12 CFR Parts 701, 760, and 790

Technical Amendments

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final rule.


SUMMARY: The NCUA Board (Board) is amending the sections of NCUA's 
regulations addressing nondiscrimination requirements, flood insurance 
and the description of NCUA to make minor, nonsubstantive technical 
corrections. The technical amendments update the regulations to reflect 
current agency practice and will not cause any substantive changes.

DATES: This rule is effective March 21, 2012.

FOR FURTHER INFORMATION CONTACT: Lance Noggle, Staff Attorney, Office 
of General Counsel, National Credit Union Administration, 1775 Duke 
Street, Alexandria, Virginia 22314-3428 or telephone: (703) 518-6555.


I. Background
II. Regulatory Changes
III. Regulatory Procedures

I. Background

A. Why is NCUA adopting this rule?

    NCUA reviews one-third of its regulations each year to ``update, 
clarify and simplify existing regulations and eliminate redundant and 
unnecessary provisions.'' NCUA Interpretive Ruling and Policy Statement 
(IRPS) 87-2, as amended by IRPS 03-2, Developing and Reviewing 
Government Regulations. In its 2011 review, NCUA determined minor 
revisions to parts 760 and 790 are necessary to reflect current agency 
practice. In addition, a similar update to part 701 is made.

B. What changes does this rule make?

    This rule amends parts 701, 760 and 790 of NCUA's regulations to 
make minor technical corrections. The corrections are necessary to 
update and conform the sections to current agency practice. 
Specifically, section 701.31 is updated to reflect that the Board has 
redesignated the Office of Consumer Protection to hear discrimination 
complaints under the Fair Housing Act and Equal Credit Opportunity Act. 
The Office of Examination and Insurance previously was assigned this 
responsibility. The rule amends section 701.31 to remove references to 
``Office of Examination and Insurance'' and to replace those references 
with ``Office of Consumer Protection''. Section 760.6 is updated to 
replace the Federal Emergency Management Administration's mailing 
address with its Web site address. Section 790.2 is amended to add the 
Office of Minority and Women Inclusion \1\ to the list of office 
descriptions; remove the separate description of the Office of Capital 
Markets and Planning and incorporate it into the description of the 
Office of Examination and Insurance; change the title of Director to 
Chief Financial Officer in the description of the Office of the Chief 
Financial Officer; update the description of the Regional Offices to 
reflect that other offices are primarily involved in chartering and 
insurance issues; and update the contact address of Region II.

    \1\ The Office of Minority and Women Inclusion was required to 
be established by the Dodd-Frank Wall Street Reform and Consumer 
Protection Act of 2010.

II. Regulatory Changes

    This rule provides minor technical corrections and will not cause 
any substantive changes.

III. Regulatory Procedures

Final Rule Under the Administrative Procedure Act

    The Board is issuing this rulemaking as a final rule, effective 
upon publication. Generally, the Administrative Procedure Act (APA) 
requires a rulemaking to be published as a notice of proposed 
rulemaking with the opportunity for public comment, unless the agency 
for good cause finds that notice and public comment are impracticable, 
unnecessary, or contrary to the public interest. 5 U.S.C. 553. The 
Board believes good cause exists for issuing these amendments without 
notice and public comment. The amendments in this rule are not 
substantive, but merely technical in that they make minor corrections 
to update the regulations and conform them to current agency practice.
    Additionally, the APA requires that a final rule must have a 
delayed effective date of 30 days from the date of publication, except 
for good cause. 5 U.S.C. 553(d). The Board also finds good cause to 
waive the customary 30-day delayed effective date requirement under the 
APA. 5 U.S.C. 553(d)(3). Again, the technical changes conform the rules 
to current agency practice. This rule will, therefore, be effective 
immediately upon publication.

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires NCUA to prepare an analysis 
to describe any significant economic impact a rule may have on a 
substantial number of small entities (primarily those credit unions 
under ten million dollars in assets). This rule does not impose any 
regulatory burden. It merely makes non-substantive technical changes to 
parts 701, 760 and 790 of NCUA's regulations. These changes will not 
have a significant economic impact on a substantial number of small 
credit unions. Therefore, a regulatory flexibility analysis is not 

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in 
which an agency by rule creates a new paperwork burden on regulated 
entities or modifies an existing burden. 44 U.S.C. 3507(d); 5 CFR part 
1320. For purposes of the PRA, a paperwork burden may take the form of 
either a reporting or a recordkeeping requirement, both referred to as 
information collections. These technical amendments do not impose any 
new paperwork burden.

Executive Order 13132

    Executive Order 13132 encourages independent regulatory agencies to 
consider the impact of their actions on state and local interests. In 
adherence to fundamental federalism principles, NCUA, an independent 
regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies 
with the executive

[[Page 16426]]

order. These changes will 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. NCUA has determined that these changes do 
not constitute a policy that has federalism implications for purposes 
of the executive order.

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

    NCUA has determined that this rule will not affect family well-
being within the meaning of section 654 of the Treasury and General 
Government Appropriations Act, 1999, Pub. L. 105-277, 112 Stat. 2681 

Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act of 1996 
(Pub. L. 104-121) (SBREFA) provides generally for congressional review 
of agency rules. A reporting requirement is triggered in instances 
where NCUA issues a final rule as defined by Section 551 of the APA. 5 
U.S.C. 551. Based on similar technical changes to the NCUA regulations, 
we believe the Office of Management and Budget will determine that this 
rule is not a major rule for purposes of SBREFA. As required by SBREFA, 
NCUA will file the appropriate reports with Congress and the General 
Accounting Office so this rule may be reviewed.

List of Subjects

12 CFR Part 701

    Advertising, Aged, Civil rights, Credit, Credit unions, Fair 
housing, Individuals with disabilities, Marital status discrimination, 
Mortgages, Religious discrimination, Sex discrimination, Signs and 

12 CFR Part 760

    Flood insurance.

12 CFR Part 790

    Organization and functions (Government agencies).

    By the National Credit Union Administration Board on March 15, 
Mary Rupp,
Secretary of the Board.

    For the reasons discussed above, NCUA amends 12 CFR parts 701, 760, 
and 790 of title 12, chapter VII, of the Code of Federal Regulations as 


1. 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. 1601, et seq.; 42 U.S.C. 1981 
and 3601-3610, Section 701.35 is also authorized by 42 U.S.C. 4311-

2. Section 701.31 is amended by revising the image in paragraph (d)(3).

Sec.  701.31  Nondiscrimination requirements.

* * * * *
    (d) * * *
    (3) * * *

[[Page 16427]]



[[Page 16428]]

* * * * *


3. The authority for citation part 760 continues to read as follows:

    Authority:  12 U.S.C. 1757, 1789; 42 U.S.C 4012a, 4104, 4104b, 
4106, and 4128.

Sec.  760.6  [Amended]

4. Section 760.6 is amended by removing from paragraph (a) ``FEMA, P.O. 
Box 2012, Jessup, MD 20794-2012'' and adding in its place ``FEMA's Web 
site at www.fema.gov''.


5. The authority citation for part 790 continues to read as follows:

    Authority:  12 U.S.C. 1766, 1789, 1795f.

6. In Sec.  790.2:
a. Revise paragraphs (b)(4), (b)(5), and (b)(13);
b. Remove from table in paragraph (c)(1) the address for Region No. II 
``1775 Duke Street, Suite 4206, Alexandria, VA 22314-3437'' and add in 
its place ``1900 Duke St., Suite 300, Alexandria, VA 22314-3498''; and
c. Revise paragraph (c)(2).
    The revisions read as follows:

Sec.  790.2  Central and regional office organization.

* * * * *
    (b) * * *
    (4) Office of Chief Financial Officer. NCUA's Chief Financial 
Officer is in charge of budgetary, accounting and financial matters for 
the NCUA, including responsibility for submitting annual budget and 
staffing requests for approval by the Board and, as required, by the 
Office of Management and Budget; for managing NCUA's budgetary 
resources; for managing the operations of the National Credit Union 
Share Insurance Fund (NCUSIF) to include accounting, financial 
reporting and the collection and payment of capitalization deposits, 
insurance premiums and insurance dividends; for collecting annual 
operating fees from federal credit unions; for maintaining NCUA's 
accounting system and accounting records; for processing payroll, 
travel, and accounts payable disbursements; and for preparing internal 
and external financial reports. The Chief Financial Officer is also 
responsible for providing NCUA's executive offices and Regional 
Directors with administrative services, including: agency security; 
contracting and procurement; management of equipment and supplies; 
acquisition; printing; graphics; and warehousing and distribution.
    (5) Office of Examination and Insurance. The Director of the Office 
of Examination and Insurance: formulates standards and procedures for 
examination and supervision of the community of federally insured 
credit unions, and reports to the Board on the performance of the 
examination program; manages the risk to the NCUSIF, to include 
overseeing the NCUSIF Investment Committee, monitoring the adequacy of 
NCUSIF reserves, analyzing the reasons for NCUSIF losses, formulating 
policies and procedures regarding the supervision of financially 
troubled credit unions, and evaluating certain requests for special 
assistance pursuant to Section 208 of the Federal Credit Union Act and 
for certain proposed administrative actions regarding federally insured 
credit unions; serves as the Board expert on accounting principles and 
standards and on auditing standards; represents NCUA at meetings with 
the American Institute of Certified Public Accountants (AICPA), Federal 
Financial Institutions Examination Council (FFIEC) and General 
Accounting Office (GAO); and collects data and provides statistical 
reports. The Director is responsible for developing and conducting 
research in support of NCUA programs, and for preparing reports on 
research activities for the information and use of agency staff, credit 
union officials, state credit union supervisory authorities, and other 
governmental and private groups. The Director is also responsible for 
providing interest rate risk assessment, investment expertise and 
advice to the Board and agency staff and conducting research and 
development to assess risk areas of emerging products, delivery 
systems, infrastructure issues, and investments.
* * * * *
    (13) Office of Minority and Women Inclusion. The Office of Minority 
and Women Inclusion was established pursuant to the Dodd-Frank Wall 
Street Reform and Consumer Protection Act of 2010. It has the 
responsibility for all NCUA matters relating to diversity in 
management, employment, and business activities. Specific duties of the 
office include developing and implementing standards for: equal 
employment opportunity and the racial, ethnic, and gender diversity of 
the workforce and senior management of NCUA; increased participation of 
minority-owned and women-owned businesses in the programs and contracts 
of NCUA, including standards for coordinating technical assistance to 
such businesses; assessing the diversity policies and practices of 
credit unions regulated by NCUA; and preserving credit unions run by 
minorities and/or serving minorities.
* * * * *
    (c) * * *
    (2) A Regional Director is in charge of each Regional Office. The 
Regional Director manages NCUA's programs in the Region assigned in 
accordance with established policies. A Regional Director's duties 
include: directing examination and supervision programs to promote and 
assure safety and soundness; assisting other offices in chartering and 
insurance issues; managing regional resources to meet program 
objectives in the most economical and practical manner; and maintaining 
good public relations with public, private, and governmental 
organizations, Federal credit union officials, credit union 
organizations, and other groups which have an interest in credit union 
matters in the assigned Region. The Regional Director maintains liaison 
and cooperation with other regional offices of Federal departments and 
agencies, state agencies, city and county officials, and other 
governmental units that affect credit unions. The Regional Director is 
aided by an Associate Regional Director for Operations and Associate 
Regional Director for Programs. Staff working in the Regional Office 
report to the Associate Regional Director for Operations. Each region 
is divided into examiner districts, each assigned to a Supervisory 
Credit Union Examiner; groups of examiners are directed by a 
Supervisory Credit Union Examiner, each of whom in turn reports 
directly to the Associate Regional Director for Programs.

[FR Doc. 2012-6835 Filed 3-20-12; 8:45 am]