Federal Register / Vol. 75, No. 250 / Thursday, December 30, 2010 / Proposed Rules 82323 

45See 12 CFR part 225, appendix A. 

b. Remove section 21(e). 

Appendix G to Part 225—Capital 

Adequacy Guidelines for Bank Holding 

Companies: Internal Ratings-Based and 

Advanced Measurement Approaches 

Part I. General Provisions 

* * * * * 

Section 3. Minimum Risk-Based Capital 

Requirements 

(a)(1) Except as modified by paragraph (c) 

of this section or by section 23 of this 

appendix, each bank holding company must 

meet a minimum: 

(i) Total risk-based capital ratio of 8.0 

percent; and 

(ii) Tier 1 risk-based capital ratio of 4.0 

percent. 

(2) A bank holding company’s total riskbased capital ratio is the lower of: 

(i) Its total qualifying capital to total riskweighted assets, and 

(ii) Its total risk-based capital ratio as 

calculated under 12 CFR part 208, appendix 

A, as adjusted to include certain debt or 

equity instruments issued before May 19, 

2010 as described in section 171(b)(4)(B) of 

the Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank Act). 

(3) A bank holding company’s tier 1 riskbased capital ratio is the lower of: 

(i) Its tier 1 capital to total risk-weighted 

assets, and 

(ii) Its tier 1 risk-based capital ratio as 

calculated under 12 CFR part 208, appendix 

A, as adjusted to include certain debt or 

equity instruments issued before May 19, 

2010 as described in section 171(b)(4)(B) of 

the Dodd-Frank Act. 

(b) Each bank holding company must hold 

capital commensurate with the level and 

nature of all risks to which the bank holding 

company is exposed. 

(c) When a bank holding company subject 

to [the market risk rule] calculates its riskbased capital requirements under this 

appendix, the bank holding company must 

also refer to [the market risk rule] for 

supplemental rules to calculate risk-based 

capital requirements adjusted for market risk. 

* * * * * 

Federal Deposit Insurance Corporation 

12 CFR Chapter III 

Authority for Issuance 

For the reasons stated in the common 

preamble, the Federal Deposit Insurance 

Corporation proposes to amend Part 325 

of Chapter III of Title 12, Code of the 

Federal Regulations as follows: 

PART 325—CAPITAL MAINTENANCE 

9. The authority citation for part 325 

continues to read as follows: 

Authority: 12 U.S.C. 1815(a), 1815(b), 

1816, 1818(a), 1818(b), 1818(c), 1818(t), 

1819(Tenth), 1828(c), 1828(d), 1828(i), 

1828(n), 1828(o), 1831o, 1835, 3907, 3909, 

4808; Pub. L. 102–233, 105 Stat. 1761, 1789, 

1790, (12 U.S.C. 1831n note); Pub. L. 102– 

242, 105 Stat. 2236, as amended by Pub. L. 

103–325, 108 Stat. 2160, 2233 (12 U.S.C. 

1828 note); Pub. L. 102–242, 105 Stat. 2236, 

2386, as amended by Pub. L. 102–550, 106 

Stat. 3672, 4089 (12 U.S.C. 1828 note). 

10. Amend Appendix A to part 325 as 

follows: 

a. In section II.C, revise the first 

sentence of the introductory text; 

b. In sections II.D, and II.E, 

redesignate footnotes 45 through 50 as 

footnotes 46 through 51. 

c. In section II.C, Category 4, add new 

paragraph (d) and a new footnote 45. 

Appendix A to Part 325—Statement of 

Policy on Risk-Based Capital 

* * * * * 

II. Procedures for Computing Risk-Weighted 

Assets 

* * * * * 

C. Risk Weights for Balance Sheet Assets (see 

Table II) 

The risk based capital framework contains 

five risk weight categories—0 percent, 20 

percent, 50 percent, 100 percent, and 200 

percent. * * * 

* * * * * 

Category 4—100 Percent Risk Weight. 

* * * 

(d) Subject to the requirements below, a 

bank may assign an asset not included in the 

categories above to the risk weight category 

applicable under the capital guidelines for 

bank holding companies,45 provided that all 

of the following conditions apply: 

(1) The bank is not authorized to hold the 

asset under applicable law other than debt 

previously contracted or similar authority; 

and 

(2) The risks associated with the asset are 

substantially similar to the risks of assets that 

are otherwise assigned to a risk weight 

category less than 100 percent under this 

appendix. 

* * * * * 

11. In Appendix D to part 325: 

a. Revise section 3 to read as set forth 

below; and 

b. Remove section 21(e). 

Appendix D to Part 325—Capital 

Adequacy Guidelines for Banks: 

Internal Ratings-Based and Advanced 

Measurement Approaches 

Part I. General Provisions 

* * * * * 

Section 3. Minimum Risk-Based Capital 

Requirements 

(a) (1) Except as modified by paragraph (c) 

of this section or by section 23 of this 

appendix, each bank must meet a minimum: 

(i) Total risk-based capital ratio of 8.0 

percent; and 

(ii) Tier 1 risk-based capital ratio of 4.0 

percent. 

(2) A bank’s total risk-based capital ratio is 

the lower of: 

(i) Its total qualifying capital to total riskweighted assets, and 

(ii) Its total risk-based capital ratio as 

calculated under appendix A of this part. 

(3) A bank’s tier 1 risk-based capital ratio 

is the lower of: 

(i) Its tier 1 capital to total risk-weighted 

assets, and 

(ii) Its tier 1 risk-based capital ratio as 

calculated under appendix A of this part. 

(b) Each bank must hold capital 

commensurate with the level and nature of 

all risks to which the bank is exposed. 

(c) When a bank subject to appendix C of 

this part calculates its risk-based capital 

requirements under this appendix, the bank 

must also refer to appendix C of this part for 

supplemental rules to calculate risk-based 

capital requirements adjusted for market risk. 

* * * * * 

Dated: December 15, 2010. 

John Walsh, 

Comptroller of the Currency. 

By order of the Board of Governors of the 

Federal Reserve System, December 14, 2010. 

Robert deV. Frierson, 

Deputy Secretary of the Board. 

Dated at Washington, DC, this 14th day of 

December 2010. 

By order of the Board of Directors. 

Robert E. Feldman, 

Executive Secretary, Federal Deposit 

Insurance Corporation. 

[FR Doc. 2010–32190 Filed 12–29–10; 8:45 am] 

BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P; 

6720–01–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 740 

RIN 3133–AD83 

Accuracy of Advertising and Notice of 

Insured Status 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Proposed rule with request for 

comments. 

SUMMARY: The NCUA Board proposes to 

revise certain provisions of NCUA’s 

official advertising statement rule. 

Specifically, insured credit unions will 

be required to include the statement in 

all radio and television advertisements, 

annual reports, and statements of 

condition required to be published by 

law. The NCUA Board also proposes to 

define the term ‘‘advertisement’’ and 

clarify size requirements for the official 

advertising statement in print materials. 

DATES: Comments must be received on 

or before February 28, 2011. 

ADDRESSES: You may submit comments 

by any of the following methods (Please 

send comments by one method only): 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 


srobinson on DSKHWCL6B1PROD with PROPOSALS
82324 Federal Register / Vol. 75, No. 250 / Thursday, December 30, 2010 / Proposed Rules 

1Exempted advertisements in the current rule 

include: (1) Statements of condition and reports of 

condition of an insured credit union which are 

required to be published by state or federal law or 

regulation; (2) Credit union supplies such as 

stationery (except when used for circular letters), 

envelopes, deposit slips, checks, drafts, signature 

cards, account passbooks, and noninsurable 

certificates; (3) Signs or plates in the credit union 

office or attached to the building or buildings in 

which the offices are located; (4) Listings in 

directories; (5) Advertisements not setting forth the 

name of the insured credit union; (6) Display 

advertisements in credit union directories, provided 

the name of the credit union is listed on any page 

in the directory with a symbol or other descriptive 

matter indicating it is insured; (7) Joint or group 

advertisements of credit union services where the 

names of insured credit unions and noninsured 

credit unions are listed and form a part of such 

advertisement; (8) Advertisements by radio that do 

not exceed thirty (30) seconds in time; (9) 

Advertisements by television, other than display 

advertisements, that do not exceed thirty (30) 

seconds in time; (10) Advertisements that because 

of their type or character would be impractical to 

include the official advertising statement, including 

but not limited to, promotional items such as 

calendars, matchbooks, pens, pencils, and key 

chains; (11) Advertisements that contain a 

statement to the effect that the credit union is 

insured by the National Credit Union 

Administration, or that its accounts and shares or 

members are insured by the Administration to the 

maximum insurance amount for each member or 

shareholder; (12) Advertisements that do not relate 

to member accounts, including but not limited to 

advertisements relating to loans by the credit union, 

safekeeping box business or services, traveler’s 

checks on which the credit union is not primarily 

liable, and credit life or disability insurance. 12 

CFR § 740.5(c). 

• NCUA Web Site: http:// 

www.ncua.gov/ 

RegulationsOpinionsLaws/ 

proposed_regs/proposed_regs.html. 

Follow the instructions for submitting 

comments. 

• E-mail: Address to 

regcomments@ncua.gov. Include ‘‘[Your 

name] Comments on Proposed Rule 740, 

Accuracy of Advertising and Notice of 

Insured Status’’ in the e-mail subject 

line. 

• Fax: (703) 518–6319. Use the 

subject line described above for e-mail. 

• Mail: Address to Mary Rupp, 

Secretary of the Board, National Credit 

Union Administration, 1775 Duke 

Street, Alexandria, Virginia 22314– 

3428. 

• Hand Delivery/Courier: Same as 

mail address. 

Public Inspection: All public 

comments are available on the agency’s 

Web site at http://www.ncua.gov/ 

RegulationsOpinionsLaws/comments as 

submitted, except as may not be 

possible for technical reasons. Public 

comments will not be edited to remove 

any identifying or contact information. 

Paper copies of comments may be 

inspected in NCUA’s law library at 1775 

Duke Street, Alexandria, Virginia 22314, 

by appointment weekdays between 

9 a.m. and 3 p.m. To make an 

appointment, call (703) 518–6546 or 

send an e-mail to OGCMail@ncua.gov. 

FOR FURTHER INFORMATION CONTACT: 

Frank Kressman, Senior Staff Attorney, 

Office of General Counsel, at the above 

address or telephone (703) 518–6540. 

SUPPLEMENTARY INFORMATION: Section 

740.5 of NCUA’s regulations requires 

each insured credit union to include 

NCUA’s official advertising statement in 

all of its advertisements, including on 

its main internet page. 12 CFR 740.5(a). 

The official advertising statement is in 

substance as follows: ‘‘This credit union 

is federally insured by the National 

Credit Union Administration.’’ Insured 

credit unions, at their option, may use 

the short title ‘‘Federally insured by 

NCUA’’ or a reproduction of NCUA’s 

official sign, as depicted in § 740.4(b), as 

the official advertising statement. 12 

CFR 740.4(b); 12 CFR 740.5(b). 

The official advertising statement 

must be in a size and print that is clearly 

legible. 12 CFR 740.5(b). If the official 

sign is used as the official advertising 

statement, an insured credit union may 

alter the font size to ensure its legibility 

as provided in § 740.4(b)(2). 12 CFR 

740.4(b)(2); 12 CFR 740.5(b). 

A number of advertisements in the 

current rule, however, need not include 

the official advertising statement.1

Among those currently exempted 

advertisements are radio and television 

advertisements that do not exceed 30 

seconds in time. The NCUA Board 

proposes to rescind these exemptions. 

NCUA believes that it is important for 

consumers of these kinds of 

advertisements to know that the share 

accounts in the advertising credit union 

are federally insured by NCUA. The 

NCUA Board believes that the benefits 

of this action to consumers and credit 

unions, namely, enhanced consumer 

confidence and NCUA name 

recognition, will far outweigh the minor 

inconvenience associated with requiring 

the inclusion of the official advertising 

statement in this context. The NCUA 

Board intends for this proposal also to 

apply to television display 

advertisements. 

With respect to print advertisements, 

the NCUA Board proposes to clarify the 

requirement that the official advertising 

statement must be in a size and print 

that is clearly legible. 12 CFR 740.5(b). 

NCUA’s regulations do not dictate a 

specific font size be used for the official 

advertising statement, and NCUA 

continues to believe this makes sense 

considering advertisements can range 

from small magazine advertisements to 

very large billboard advertisements. The 

NCUA Board requires, however, that in 

any particular advertisement, in 

addition to legibility, the font size for 

the official advertising statement may be 

no smaller than the smallest font size 

used in other portions of the 

advertisement intended to convey 

information to the consumer. 

Also, the NCUA Board believes that 

an insured credit union’s annual report 

and other statements of condition 

required to be published by law are 

significant and a form of advertisement 

and must include the official advertising 

statement in a prominent position. 

Accordingly, the NCUA Board proposes 

to amend § 740.5 in this regard. 

In summary, the proposal rescinds 

three exemptions from the general rule 

requiring the use of the official 

advertising statement. Those three 

include radio and television 

advertisements that do not exceed 30 

seconds in time and annual reports and 

other statements of condition required 

to be published by law. All other 

exemptions in § 740.5(c) remain in 

place. Finally, the current rule does not 

define the term ‘‘advertisement.’’ The 

NCUA Board proposes to clarify the rule 

by proposing such a definition. The 

proposed definition is consistent with 

that used by the Federal Deposit 

Insurance Corporation in its official 

advertising statement rule. 12 CFR part 

328. 

Regulatory Procedures 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

requires NCUA to prepare an analysis to 

describe any significant economic 

impact any proposed regulation may 

have on a substantial number of small 

credit unions (those under $10 million 

in assets). The proposed amendments 

enhance consumer confidence and do 

not impose a significant burden on 

credit unions. Accordingly, the NCUA 

has determined and certifies that the 

proposed rule, if adopted, will not have 

a significant economic impact on a 

substantial number of small credit 

unions within the meaning of the 

Regulatory Flexibility Act, 5 U.S.C. 601– 

612. 

Paperwork Reduction Act 

The proposed rule does not contain a 

‘‘collection of information’’ within the 

meaning of section 3502(3) of the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3502(3)) and would not increase 

paperwork requirements under the 

Paperwork Reduction Act of 1995 or 

regulations of the Office of Management 

and Budget. 


srobinson on DSKHWCL6B1PROD with PROPOSALS
Federal Register / Vol. 75, No. 250 / Thursday, December 30, 2010 / Proposed Rules 82325 

Executive Order 13132 

Executive Order 13132 encourages 

independent regulatory agencies to 

consider the impact of their actions on 

state and local interests. In adherence to 

fundamental federalism principles, 

NCUA, an independent regulatory 

agency as defined in 44 U.S.C. 3502(5), 

voluntarily complies with the executive 

order. The proposed rule would not 

have substantial direct effect on the 

states, on the connection between the 

national government and the states, or 

on the distribution of power and 

responsibilities among the various 

levels of government. NCUA has 

determined that this proposed rule does 

not constitute a policy that has 

federalism implications for purposes of 

the executive order. 

The Treasury and General Government 

Appropriations Act, 1999—Assessment 

of Federal Regulations and Policies on 

Families 

NCUA has determined that this 

proposed rule would not affect family 

well-being within the meaning of 

section 654 of the Treasury and General 

Government Appropriations Act, 1999, 

Pub. L. 105–277, 112 Stat. 2681 (1998). 

Agency Regulatory Goal 

NCUA’s goal is to promulgate clear 

and understandable regulations that 

impose minimal regulatory burden. We 

request your comments on whether the 

proposed amendments are 

understandable and minimally intrusive 

if implemented as proposed. 

List of Subjects in 12 CFR Part 740 

Advertisements, Credit unions, Signs 

and symbols. 

By the National Credit Union 

Administration Board on December 16, 2010. 

Mary F. Rupp, 

Secretary of the Board. 

For the reasons discussed above, the 

NCUA Board proposes to amend 12 CFR 

part 740 as follows: 

PART 740—ACCURACY OF 

ADVERTISING AND NOTICE OF 

INSURED STATUS 

1. The authority citation for part 740 

continues to read as follows: 

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

1789. 

2. Revise Section 740.1 by 

redesignating paragraphs (b) and (c) as 

paragraphs (c) and (d) and by adding a 

new paragraph (b) to read as follows: 

§ 740.1 Definitions. 

* * * * * 

(b) Advertisement as used in this part 

means a commercial message, in any 

medium, that is designed to attract 

public attention or patronage to a 

product or business. 

* * * * * 

3. Amend § 740.5 by revising 

paragraph (a) to read as follows: 

§ 740.5 Requirements for the official 

advertising statement. 

(a) Each insured credit union must 

include the official advertising 

statement, prescribed in paragraph (b) of 

this section, in all of its advertisements 

including, but not limited to, annual 

reports, statements of condition 

required to be published by law, radio 

and television advertisements, and on 

its main Internet page, except as 

provided in paragraph (c) of this 

section. 

* * * * * 

4. Amend § 740.5 by: 

a. Revising the third sentence of 

paragraph (b); 

b. Removing and paragraphs (c)(1), 

(c)(8) and (c)(9); and 

c. Redesignating paragraphs (c)(2), 

(c)(3), (c)(4), (c)(5), (c)(6), (c)(7), (c)(10), 

(c)(11), and (c)(12), as paragraphs (c)(1) 

through (c)(9) respectively. 

The revised text reads as follows: 

§ 740.5 Requirements for the official 

advertising statement. 

(b) * * * The official advertising 

statement must be in a size and print 

that is clearly legible and may be no 

smaller than the smallest font size used 

in other portions of the advertisement 

intended to convey information to the 

consumer. * * * 

* * * * * 

[FR Doc. 2010–32127 Filed 12–29–10; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2010–1277; Directorate 

Identifier 2010–NM–218–AD] 

RIN 2120–AA64 

Airworthiness Directives; Airbus Model 

A330–200 and –300 Series Airplanes, 

and Model A340–200 and –300 Series 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Proposed rule; rescission. 

SUMMARY: We propose to rescind 

airworthiness directive (AD) 2009–18– 

19. This proposed AD results from 

mandatory continuing airworthiness 

information (MCAI) issued by EASA, to 

rescind EASA AD 2010–0083. The 

MCAI specifies the following: 

It has been assessed that multiple NRV 

[non return valve] failures in combination 

with certain trapped fuel cases could 

potentially increase the quantity of unusable 

fuel on the aeroplane, possibly leading to fuel 

starvation which could result in engines inflight shut down and would constitute an 

unsafe condition. To prevent and detect this 

condition, EASA issued EASA AD 2010– 

0083. 

Based on in service experience, mainly on 

the results of the operational test required by 

EASA AD 2010–0083, Airbus has performed 

a safety analysis on the NRV to check if the 

safety objectives are met. 

This analysis of the Collector Cell motive 

flow line NRV, taking into account all failure 

scenarios, concludes that the previous non 

compliance can be alleviated. Consequently, 

no unsafe condition exists any more on the 

affected NRV. 

For the reasons described above, 

EASA AD 2010–0083 is cancelled. 

The proposed AD would rescind the 

parallel FAA AD 2009–18–19. 

DATES: We must receive comments on 

this proposed AD by February 14, 2011. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, 

M–30, West Building Ground Floor, 

Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, 

M–30, West Building Ground Floor, 

Room W12–40, 1200 New Jersey 

Avenue, SE., Washington, DC, between 

9 a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Operations office between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Operations 

office (telephone (800) 647–5527) is in 

the ADDRESSES section. Comments will 

be available in the AD docket shortly 

after receipt. 

FOR FURTHER INFORMATION CONTACT: 

Vladimir Ulyanov, Aerospace Engineer, 

International Branch, ANM–116, 


srobinson on DSKHWCL6B1PROD with PROPOSALS