This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

32007

Vol. 65, No. 99

Monday, May 22, 2000

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[Docket No. FV00–985–3 FIR]

Marketing Order Regulating the

Handling of Spearmint Oil Produced in

the Far West; Revision of the Salable

Quantity and Allotment Percentage for

Class 3 (Native) Spearmint Oil for the

1999–2000 Marketing Year

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Department of

Agriculture (Department) is adopting, as

a final rule, without change, the

provisions of an interim final rule that

increased the quantity of Class 3

(Native) spearmint oil produced in the

Far West that handlers may purchase

from, or handle for, producers during

the 1999–2000 marketing year. This

interim final rule amended a prior

interim final rule. When combined, the

two interim final rules increased the

Native spearmint oil salable quantity by

184,160 pounds from 1,125,755 pounds

to 1,309,915 pounds, and the allotment

percentage by 9 percent from 55 percent

to 64 percent. The Spearmint Oil

Administrative Committee (Committee),

the agency responsible for local

administration of the marketing order

for spearmint oil produced in the Far

West, recommended these actions to

avoid extreme fluctuations in supplies

and prices, and, thus, help to maintain

stability in the Far West spearmint oil

market.

EFFECTIVE DATE: June 21, 2000.

FOR FURTHER INFORMATION CONTACT:

Robert J. Curry, Northwest Marketing

Field Office, Marketing Order

Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, 1220

SW Third Avenue, room 385, Portland,

Oregon 97204–2807; telephone: (503)

326–2724, Fax: (503) 326–7440; or

George Kelhart, Technical Advisor,

Marketing Order Administration

Branch, Fruit and Vegetable Programs,

AMS, USDA, room 2525–S, P.O. Box

96456, Washington, DC 20090–6456;

telephone: (202) 720–2491, Fax: (202)

720–5698.

Small businesses may request

information on complying with this

regulation by contacting Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Programs,

AMS, USDA, room 2525–S, P.O. Box

96456, Washington, DC 20090–6456;

telephone (202) 720–2491; Fax: (202)

720–5698, or E-mail:

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Order No.

985 (7 CFR part 985), regulating the

handling of spearmint oil produced in

the Far West (Washington, Idaho,

Oregon, and designated parts of Nevada,

and Utah), hereinafter referred to as the

‘‘order.’’ The order is effective under the

Agricultural Marketing Agreement Act

of 1937, as amended (7 U.S.C. 601–674),

hereinafter referred to as the ‘‘Act.’’

The Department of Agriculture

(Department) is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. Under the provisions of the

marketing order now in effect, salable

quantities and allotment percentages

may be established for classes of

spearmint oil produced in the Far West.

This rule continues an increase in the

quantity of Native spearmint oil

produced in the Far West that may be

purchased from or handled for

producers by handlers during the 1999–

2000 marketing year, which ends on

May 31, 2000. This rule will not

preempt any State or local laws,

regulations, or policies, unless they

present an irreconcilable conflict with

this rule.

The Act provides that administrative

proceedings must be exhausted before

parties may file suit in court. Under

section 608c(15)(A) of the Act, any

handler subject to an order may file

with the Secretary a petition stating that

the order, any provision of the order, or

any obligation imposed in connection

with the order is not in accordance with

law and request a modification of the

order or to be exempted therefrom. A

handler is afforded the opportunity for

a hearing on the petition. After the

hearing the Secretary would rule on the

petition. The Act provides that the

district court of the United States in any

district in which the handler is an

inhabitant, or has his or her principal

place of business, has jurisdiction to

review the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after the date of the

entry of the ruling.

The U.S. production of spearmint oil

is concentrated in the Far West,

primarily Washington, Idaho, and

Oregon (part of the area covered by the

order). Spearmint oil is also produced in

the Midwest. The production area

covered by the order normally accounts

for approximately 63 percent of the

annual U.S. production of Scotch

spearmint oil and approximately 93

percent of the annual U.S. production of

Native spearmint oil.

This final rule adopts, without

change, the provisions of an interim

final rule published in the Federal

Register on March 24, 2000 (65 FR

15832) that amended an interim final

rule that was published in the Federal

Register on February 10, 2000 (65 FR

6528). The two rules together increased

the Native spearmint oil salable quantity

that handlers may purchase from, or

handle for, producers during the 1999–

2000 marketing year, which ends on

May 31, 2000, by 184,160 pounds from

1,125,755 pounds to 1,309,915 pounds.

The rules also increased the 1999–2000

allotment percentage by a total of 9

percent, from 55 percent to 64 percent.

The initial salable quantity and

allotment percentages for Scotch and

Native spearmint oils for the 1999–2000

marketing year were recommended by

the Committee at its October 7, 1998

meeting. The Committee recommended

salable quantities of 1,199,190 pounds

and 1,125,755 pounds, and allotment

percentages of 65 percent and 55

percent, respectively, for Scotch and

Native spearmint oils. A proposed rule

was published in the November 17,

1998 issue of the Federal Register (63

FR 63804). A final rule establishing the

salable quantities and allotment

percentages for Scotch and Native

spearmint oils for the 1999–2000

marketing year was published in the

January 19, 1999, issue of the Federal

Register (64 FR 2799).

32008 Federal Register / Vol. 65, No. 99 / Monday, May 22, 2000 / Rules and Regulations

The salable quantity is the total

quantity of each class of oil that

handlers may purchase from, or handle

for, producers during a marketing year.

The salable quantity calculated by the

Committee is based on the estimated

trade demand. The total salable quantity

is divided by the total industry

allotment base to determine an

allotment percentage. Each producer is

allotted a share of the salable quantity

by applying the allotment percentage to

the producer’s individual allotment base

for the applicable class of spearmint oil.

Sections 985.50, 985.51, and 985.52

provide the Committee authorization to

consider and recommend salable

quantities and allotment percentages for

each class of spearmint oil for an

ensuing marketing year. Section

985.51(b) provides the authority for the

Committee to recommend that an

increase in the salable quantity and

allotment percentage for either or both

classes of oil be considered.

Taking into consideration the

following discussion on adjustments to

the Native spearmint oil salable

quantity, the 1999–2000 marketing year

salable quantity of 1,125,755 pounds

will, therefore, be increased to 1,309,915

pounds.

The original total industry allotment

base for Native spearmint oil for the

1999–2000 marketing year was

established at 2,046,828 pounds and

was revised during the year to 2,046,214

pounds to reflect a loss of 614 pounds

of base due to non-production of some

producers’ total annual allotments. The

Committee has used this revised

allotment base in computing the

increases to the Native spearmint oil

salable quantity.

By increasing the salable quantity and

allotment percentage from 1,125,755

pounds to 1,309,915 pounds, and 55

percent to 64 percent, respectively, this

final rule makes an additional amount

of Native spearmint oil available by

releasing such oil from the reserve pool.

When applied to each individual

producer, the additional 9 percent

allotment percentage increase allows

each producer to take up to an amount

equal to 9 percent of their allotment

base from their Native spearmint oil

reserve. If a producer does not have any

reserve pool oil, or has less than 9

percent of their allotment base in the

reserve pool, the increase in allotment

percentage will actually make less than

such amount available to the market.

For the 1999–2000 marketing year,

producers receiving 18,324 pounds of

additional allotment through these

increases did not have any Native

spearmint oil in reserve. Thus, rather

than the 184,160 additional pounds as

computed in the two interim final rules,

this action effectively makes an

additional 165,836 pounds of Native

spearmint oil available to the market.

Summary of the Native Spearmint Oil

Increases for the 1999–2000 Marketing

Year

(A) Estimated 1999–2000 Allotment

Base—2,046,828 pounds. This is the

figure the original 1999–2000 salable

quantities and allotment percentages for

both classes of spearmint oil were based

on.

(B) Revised 1999–2000 Allotment

Base—2,046,214 pounds. This is 614

pounds less than the estimated

allotment base of 2,046,828 pounds.

This is less because some producers

failed to produce all of their previous

year’s allotment.

(C) Initial 1999–2000 Allotment

Percentage—55 percent. This was

recommended by the Committee on

October 7, 1998.

(D) Initial 1999–2000 Salable

Quantity—1,125,755 pounds. This

figure is 55 percent of the estimated

allotment base of 2,046,828 pounds.

(E) Initial Increase in Allotment

Percentage—5 percent. This was

recommended by the Committee on

January 13, 2000.

(F) Initial Revision of the 1999–2000

Allotment Percentage—60 percent. This

figure was derived by adding the initial

increase in the allotment percentage of

5 percent to the initial 1999–2000

allotment percentage of 55 percent and

was effective on February 11, 2000.

(G) Initial Computed Increase in the

1999–2000 Salable Quantity—102,311

pounds. This is the product of the

revised 1999–2000 allotment base of

2,046,214 and the initial 5 percent

increase.

(H) Initially Revised 1999–2000

Salable Quantity—1,228,066 pounds.

This figure, effective on February 11,

2000, is the sum of the initial salable

quantity of 1,125,755 pounds and the

initial computed increase of 102,311

pounds, and is approximately 60

percent of the estimated 1999–2000

allotment base of 2,046,214 pounds.

(I) Additional Increase in the

Allotment Percentage—4 percent. This

percentage increase was recommended

by the Committee at its February 23,

2000, meeting.

(J) Amended 1999–2000 Allotment

Percentage—64 percent. This is the sum

of the initial allotment percentage of 55

percent and the 5 and 4 percent

increases, and was effective on March

25, 2000.

(K) Additional Computed Increase in

the 1999–2000 Salable Quantity—

81,849 pounds. This is the product of

the revised 1999–2000 allotment base of

2,046,214 pounds and the additional 4

percent increase in the allotment

percentage.

(L) Final 1999–2000 Salable Quantity

as Revised by Both Interim Final

Rules—1,309,915 pounds. This figure is

the sum of the initial salable quantity of

1,125,755 and the combined (computed)

increases of 102,311 pounds and 81,849

pounds, and is approximately 64

percent of the revised 1999–2000

allotment base of 2,046,214 pounds.

The Department, based on its analysis

of available information, has determined

that the salable quantity and allotment

percentage for Native spearmint oil for

the 1999–2000 marketing year should

continue to be 1,309,915 pounds and 64

percent, respectively.

This rule continues to relax the

regulation of Native spearmint oil and

will allow producers to meet market

needs and improve returns. In

conjunction with the issuance of this

rule, the Department has reviewed the

Committee’s revised marketing policy

statement for the 1999–2000 marketing

year. The Committee’s marketing policy

statement, a requirement whenever the

Committee recommends implementing

volume regulations or recommends

revisions to existing volume regulations,

meets the intent of section 985.50 of the

order.

During its discussion of revising the

1999–2000 salable quantities and

allotment percentages, the Committee

considered: (1) The estimated quantity

of salable oil of each class held by

producers and handlers; (2) the

estimated demand for each class of oil;

(3) prospective production of each class

of oil; (4) total of allotment bases of each

class of oil for the current marketing

year and the estimated total of allotment

bases of each class for the ensuing

marketing year; (5) the quantity of

reserve oil, by class, in storage; (6)

producer prices of oil, including prices

for each class of oil; and (7) general

market conditions for each class of oil,

including whether the estimated season

average price to producers is likely to

exceed parity. Conformity with the

Department’s ‘‘Guidelines for Fruit,

Vegetable, and Specialty Crop

Marketing Orders’’ has also been

reviewed and confirmed.

This increase in the 1999–2000

marketing year Native spearmint oil

salable quantity and allotment

percentage allows for anticipated market

needs for this class of oil. In

determining anticipated market needs,

consideration by the Committee was

given to historical sales, and changes

and trends in production and demand.

Federal Register / Vol. 65, No. 99 / Monday, May 22, 2000 / Rules and Regulations 32009

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

AMS has considered the economic

impact of this action on small entities.

Accordingly, the AMS has prepared this

final regulatory flexibility analysis.

The purpose of the RFA is to fit

regulatory actions to the scale of

business subject to such actions in order

that small businesses will not be unduly

or disproportionately burdened.

Marketing orders issued pursuant to the

Act, and rules issued thereunder, are

unique in that they are brought about

through group action of essentially

small entities acting on their own

behalf. Thus, both statutes have small

entity orientation and compatibility.

There are 7 spearmint oil handlers

subject to regulation under the

marketing order and approximately 119

producers of Scotch spearmint oil and

105 producers of Native spearmint oil in

the regulated production area. Small

agricultural service firms are defined by

the Small Business Administration

(SBA) (13 CFR 121.201) as those having

annual receipts of less than $5,000,000,

and small agricultural producers have

been defined as those whose annual

receipts are less than $500,000.

Based on the SBA’s definition of

small entities, the Committee estimates

that 2 of the 7 handlers regulated by the

order could be considered small

entities. Most of the handlers are large

corporations involved in the

international trading of essential oils

and the products of essential oils. In

addition, the Committee estimates that

25 of the 119 Scotch spearmint oil

producers and 7 of the 105 Native

spearmint oil producers would be

classified as small entities under the

SBA definition. Thus, a majority of

handlers and producers of Far West

spearmint oil may not be classified as

small entities.

The Far West spearmint oil industry

is characterized by producers whose

farming operations generally involve

more than one commodity, and whose

income from farming operations is not

exclusively dependent on the

production of spearmint oil. Crop

rotation is an essential cultural practice

in the production of spearmint oil for

weed, insect, and disease control. A

normal spearmint oil producing

operation would have enough acreage

for rotation such that the total acreage

required to produce the crop would be

about one-third spearmint and twothirds rotational crops. An average

spearmint oil producing farm would,

thus, have to have considerably more

acreage than would be planted to

spearmint during any given season. To

remain economically viable with the

added costs associated with spearmint

oil production, most spearmint oil

producing farms would fall into the

category of large businesses.

Small spearmint oil producers

represent a minority of farming

operations and are more vulnerable to

market fluctuations. Such small farmers

generally need to market their entire

annual crop and do not have the

resources to cushion seasons with poor

spearmint oil returns. Conversely, large

diversified producers have the potential

to endure one or more seasons of poor

spearmint oil markets because of

stronger incomes from alternate crops

which could support the operation for a

period of time. Despite the advantage

larger producers may have, increasing

the Native salable quantity and

allotment percentage will help both

large and small producers by improving

returns.

This rule finalizes an interim final

rule that was published in the Federal

Register on March 24, 2000 (65 FR

15832) that amended an interim final

rule that was published in the Federal

Register on February 10, 2000 (65 FR

6528). The initial interim final rule

increased the 1999–2000 marketing year

Native spearmint oil salable quantity by

102,311 pounds from 1,125,755 pounds

to 1,228,066 pounds, and the allotment

percentage by 5 percent from 55 percent

to 60 percent. The amended interim

final rule increased the 1999–2000

marketing year Native spearmint oil

salable quantity by an additional 81,849

pounds from 1,228,066 pounds to

1,309,915 pounds, and the allotment

percentage by an additional 4 percent

from 60 percent to 64 percent. This rule

continues to relax the regulation of

Native spearmint oil and will allow

producers to meet market needs and

improve returns.

The Committee considered

alternatives to the increases based on

projections and historical data available

at both meetings. Recommendations at

both meetings generally supported

increases of 5 percent and 4 percent,

respectively. The Committee reached its

recommendations to increase the Native

spearmint oil salable quantity by

102,311 pounds and 81,849 pounds,

respectively, and the allotment

percentage by 5 percent and 4 percent,

respectively, after careful consideration

of all available information. The

Committee believes that the level

attained in this final rule will achieve

the objectives sought. Without the

increases, the Committee believes the

industry will not be able to meet market

needs through the end of the current

marketing year (May 31, 2000).

Annual salable quantities and

allotment percentages have been issued

for both classes of spearmint oil since

the order’s inception. Reporting and

recordkeeping requirements have

remained the same for each year of

regulation. Accordingly, this action will

not impose any additional reporting or

recordkeeping requirements on either

small or large spearmint oil producers

and handlers. All reports and forms

associated with this program are

reviewed periodically in order to avoid

unnecessary and duplicative

information collection by industry and

public sector agencies. The Department

has not identified any relevant Federal

rules that duplicate, overlap, or conflict

with this rule.

The Committee’s meetings were

widely publicized throughout the

spearmint oil industry and all interested

persons were invited to attend and

participate on all issues. Interested

persons were also invited to submit

information on the regulatory and

informational impacts of this action on

small businesses.

Interim final rules concerning this

action were published in the Federal

Register on February 10, 2000 (65 FR

6528), and on March 24, 2000 (65 FR

15832). Copies of the rules were mailed

and faxed to the Committee office,

which in turn notified Committee

members and spearmint oil producers

and handlers. In addition, the

Committee’s meetings were widely

publicized throughout the spearmint oil

industry and all interested persons were

invited to attend and participate on all

issues. Copies of both rules were also

made available on the Internet by the

U.S. Government Printing Office. No

comments were received.

A small business guide on complying

with fruit, vegetable, and specialty crop

marketing agreements and orders may

be viewed at the following website:

http://www.ams.usda.gov/fv/

moab.html. Any questions about the

compliance guide should be sent to Jay

Guerber at the previously mentioned

address in the FOR FURTHER INFORMATION

CONTACT section.

After consideration of all relevant

matter presented, including that

contained in the prior proposed and

final rules in connection with the

establishment of the salable quantities

and allotment percentages for Scotch

and Native spearmint oils for the 1999–

2000 marketing year, both interim final

rules increasing the 1999–2000

marketing year Native spearmint oil

salable quantity and allotment

percentage, the Committee’s

recommendations and other available

information, it is found that to continue

32010 Federal Register / Vol. 65, No. 99 / Monday, May 22, 2000 / Rules and Regulations

to revise § 985.218 to change the salable

quantity and allotment percentage for

Native spearmint oil, as hereinafter set

forth, will tend to effectuate the

declared policy of the Act.

List of Subjects in 7 CFR Part 985

Marketing agreements, Oils and fats,

Reporting and recordkeeping

requirements, Spearmint oil.

For the reasons set forth in the

preamble, 7 CFR part 985 is amended as

follows:

PART 985—MARKETING ORDER

REGULATING THE HANDLING OF

SPEARMINT OIL PRODUCED IN THE

FAR WEST

Accordingly, the interim final rule

amending 7 CFR part 985 as published

at 65 FR 15832 on March 24, 2000, and

which amended the interim final rule

published at 65 FR 6528 on February 10,

2000, is adopted as a final rule without

change.

Dated: May 16, 2000.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 00–12801 Filed 5–19–00; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 1001, 1005, 1006, 1007,

1126, 1131, and 1135

[Docket No. DA–97–12]

Milk in the New England and Other

Marketing Areas; Order Amending the

Orders; Correction

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule; correction.

SUMMARY: The Agricultural Marketing

Service published in the Federal

Register on September 1, 1999, (64 FR

47898) a final rule which consolidated

31 Federal milk marketing orders into

11 orders. This document corrects an

error in section 73 of 7 of those orders

by changing the term ‘‘pool plant

operator’’ to ‘‘handler.’’ The remaining 4

orders contain the correct language.

EFFECTIVE DATE: This correction is

effective May 22, 2000.

FOR FURTHER INFORMATION CONTACT:

Nicholas Memoli, Marketing Specialist,

Order Formulation Branch, USDA/

AMS/Dairy Programs, Room 2971,

South Building, P.O. Box 96456,

Washington, DC 20090–6456, (202) 690–

1932, e-mail address

Nicholas.Memoli@usda.gov.

SUPPLEMENTARY INFORMATION:

Background and Need for Correction

In the final rule (DA–97–12) issued

August 23, 1999, and published in the

Federal Register on September 1, 1999

(64 FR 47898), an error in Section 73(a)

and (b) of Parts 1001, 1005, 1006, and

1007, and Section 73(b) of Parts 1126,

1131, and 1135 was inadvertently made.

Specifically, the term ‘‘handler’’ was

changed to ‘‘pool plant operator.’’ The

correct term is used in the 4 remaining

orders (Parts 1030, 1032, 1033 and 1124)

and is only different in the 7 orders

because of an oversight in drafting the

amendments to the orders. Therefore,

the applicable provisions of the 7 orders

need to be corrected.

List of Subjects in 7 CFR Parts 1000 to

1199

Milk orders.

Accordingly, 7 CFR Parts 1001, 1005,

1006, 1007, 1126, 1131, and 1135 are

corrected by making the following

correcting amendments:

PARTS 1001, 1005, 1006, 1007, 1126,

1131, and 1135—[AMENDED]

1. The authority citation for Parts

1001, 1005, 1006, 1007, 1126, 1131, and

1135 continues to read as follows:

Authority: 7 U.S.C. 601–674, and 7253.

§§ 1001.73, 1005.73, 1006.73, 1007.73,

1126.73, 1131.73, 1135.73 [Amended]

2. In the introductory text of

§§ 1001.73(a) and (b), 1005.73(a) and (b),

1006.73(a) and (b), 1007.73(a) and (b),

1126.73(b), 1131.73(b), and 1135.73(b),

the words ‘‘pool plant operator’’ are

revised to read ‘‘handler.’’

Dated: May 17, 2000.

Kenneth C. Clayton,

Acting Administrator, Agricultural Maketing

Service.

[FR Doc. 00–12799 Filed 5–19–00; 8:45 am]

BILLING CODE 3410–02–P

NATIONAL CREDIT UNION

ADMINISTRATION

12 CFR Part 707

Truth in Savings

CFR Correction

In Title 12 of the Code of Federal

Regulations, parts 600 to End, revised as

of January 1, 2000, page 404, Part 707,

Appendix C is corrected by adding

Appendices A and B to the end to read

as follows:

APPENDIX C TO PART 707—

OFFICIAL STAFF INTERPRETATIONS

* * * * *

Appendix A to Part 707—Annual

Percentage Yield Calculation

Part I. Annual Percentage Yield for Account

Disclosures and Advertising Purposes

1. Rounding for calculations. The

following are examples of permissible

rounding rules for calculating dividends and

the annual percentage yield:

i. The daily rate applied to a balance

carried to five or more decimals. For

example; .008219178%, 3.00% for a 365 day

year, would be rounded to no less than

.00822%.

ii. The daily dividends or interest earned

carried to five or more decimals. For

example; $.08219178082, daily dividends on

$1,000 at 3% for a 365 day year, would be

rounded to no less than $.08219.

2. Exponents in a leap year. The annual

percentage yield formula’s exponent

numerator will remain 365 in leap years. The

‘‘days in term’’ figure used in the

denominator should be consistent with the

length of term used in the dividends

calculation.

3. First tier of a tiered-rate account. When

credit unions use a rate table, the first tier of

a tiered rate account is to be disclosed and

advertised; ‘‘Up to but not exceeding * * * ’’,

‘‘$.01 to * * * ’’, or similar language.

4. Term Share Accounts Opened in

Midterm. For club accounts that meet the

definition of a term share account, the annual

percentage yield is based on the maximum

number of days in the term not to exceed 365

days (or 366 days in a leap year).

Part II. Annual Percentage Yield Earned for

Periodic Statements

1. Balance method. The dividend or

interest figure used in the calculation of the

annual percentage yield earned may be

derived from the daily balance method or the

average daily balance method. Regardless of

the dividend calculation method, the balance

used in the annual percentage yield earned

formula is the average daily balance. The

average daily balance calculation is the sum

of the balances for each day in the period

divided by the number of days in the period.

The balance for each day is based on a point

in time; i.e. beginning of day balance, end of

day balance, closing of day balance, etc. Each

day’s balance, for dividend accrual and

payment purposes, must be based on the

same point in time and cannot be based on

the day’s low balance.

2. Negative balances prohibited. Credit

unions must treat a negative account balance

as zero to determine the balance on which

the annual percentage yield earned is

calculated. (See commentary to § 707.7(a)(2).)

A. General Formula

1. Accrued but uncredited dividends. To

calculate the annual percentage yield earned,

accrued but uncredited dividends:

i. May not be included in the balance for

statements that are issued at the same time

or less frequently than the account’s

compounding and crediting frequency. For