Federal Register / Vol. 71, No. 186 / Tuesday, September 26, 2006 / Rules and Regulations 56001 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 745 

RIN 3133–AD18 

Share Insurance and Appendix 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Final rule. 

SUMMARY: NCUA is amending its share 

insurance rules to implement 

amendments to the Federal Credit 

Union Act (FCU Act) made by the 

Federal Deposit Insurance Reform Act of 

2005 (Reform Act) and the Federal 

Deposit Insurance Reform Conforming 

Amendments Act of 2005 (Conforming 

Amendments Act). In this regard, the 

final rule: Defines the ‘‘standard 

maximum share insurance amount’’ as 

$100,000 and provides that beginning in 

2010, and in each subsequent 

5-year period thereafter, NCUA and the 

Federal Deposit Insurance Corporation 

(FDIC) will jointly consider if an 

inflation adjustment is appropriate to 

increase that amount; increases the 

share insurance limit for certain 

retirement accounts from $100,000 to 

$250,000, subject to the above inflation 

adjustments; and provides pass-through 

coverage to each participant of an 

employee benefit plan, but limits the 

acceptance of shares in employee 

benefit plans to insured credit unions 

that are well capitalized or adequately 

capitalized. Additionally, NCUA is 

amending its share insurance rules to 

clarify insurance coverage for qualified 

tuition savings programs, commonly 

referred to as 529 plans, and share 

accounts denominated in foreign 

currencies. 

DATES: This final rule is effective 

October 26, 2006. 

FOR FURTHER INFORMATION CONTACT: 

Frank Kressman, Staff Attorney, Office 

of General Counsel, or Moisette Green, 

Staff Attorney, Office of General 

Counsel, at the above address or 

telephone: (703) 518–6540. 

SUPPLEMENTARY INFORMATION: 

A. Federal Deposit Insurance Reform 

Act of 2005 and Federal Deposit 

Insurance Reform Conforming 

Amendments Act of 2005 

The Reform Act and Conforming 

Amendments Act, (Pub. L. 109–171) and 

(Pub. L. 109–173), amended the share 

insurance provisions of the FCU Act in 

a number of ways. 12 U.S.C. 1781–

1790d. Specifically, section 2103(a) of 

the Reform Act provides that beginning 

April 1, 2010, and each subsequent 5- 

year period thereafter, NCUA and the 

FDIC will jointly consider if an inflation 

adjustment is appropriate to increase 

the NCUA’s current ‘‘standard 

maximum share insurance amount’’

(SMSIA), which is defined in 12 U.S.C. 

1787(k) as $100,000, and the ‘‘standard 

maximum deposit insurance amount’’

(SMDIA), the FDIC equivalent. Any 

increase to the SMSIA or SMDIA will be 

calculated using a formula comparing, 

over time, the published annual values 

of the Personal Consumption 

Expenditures Chain-Type Price Index, 

published by the Department of 

Commerce, and rounded down to the 

nearest $10,000. The Reform Act also 

requires NCUA and FDIC to consider 

certain other factors in determining 

whether to increase the SMSIA and 

SMDIA. Additionally, if an adjustment 

is warranted, NCUA and FDIC are 

required to publish information in the 

Federal Register and provide a 

corresponding report to Congress by 

April 5, 2010, and every succeeding 

fifth year. Subsequently, under those 

circumstances, an inflation adjustment 

will take effect on January 1st of the 

year immediately succeeding the year in 

which the adjustment is calculated 

unless an act of Congress provides 

otherwise. 

Section 2(d)(1)(C) of the Conforming 

Amendments Act mandates that NCUA 

provide ‘‘pass-through’’ share insurance 

coverage for shares in any employee 

benefit plan account on a perparticipant basis. This type of coverage 

is called ‘‘pass-through’’ because it 

passes through the employee benefit 

plan administrator to each of the 

participants in the plan. The employee 

benefit plans to which this section refers 

include those described in: (1) Section 

3(3) of the Employee Retirement Income 

Security Act of 1974; (2) section 401(d) 

of the Internal Revenue Code (IRC); and 

(3) section 457 of the IRC. This section, 

however, limits the acceptance of 

employee benefit plan shares to insured 

credit unions that are ‘‘well capitalized’’

or ‘‘adequately capitalized’’ as those 

terms are defined in section 216(c) of 

the FCU Act. 12 U.S.C. 1790d(c). 

Section 2(d)(2) of the Conforming 

Amendments Act amended 12 U.S.C. 

1787(k)(3) of the FCU Act to increase 

the share insurance limit for certain 

retirement accounts from $100,000 to 

$250,000. The increased limit is also 

subject to the inflation adjustments 

discussed above. The types of accounts 

within this category of coverage include 

those specifically enumerated in 12 

U.S.C. 1787(k)(3): Individual retirement 

accounts (IRAs) described in section 

408(a) of the IRC and any plan described 

in section 401(d) of the IRC (Keogh 

accounts). 

Additionally, the Conforming 

Amendments Act created the term 

‘‘government depositor’’ in connection 

with public funds described in and 

insured under 12 U.S.C. 1787(k)(2). It 

also provides that the shares of a 

government depositor are insured in an 

amount up to the SMSIA. The 

amendments to NCUA’s share insurance 

rules in part 745 implement the share 

insurance coverage revisions made by 

the Reform Act and the Conforming 

Amendments Act. 

B. Interim Final Rule 

In March 2006, the NCUA Board 

issued an interim final rule with request 

for comments to implement the 

statutory amendments summarized 

above. 71 FR 14631 (March 23, 2006). It 

put in place share insurance rules, 

effective on April 1, 2006, that enhance 

share insurance coverage, clarify legal 

positions already taken by NCUA, 

maintain parity with the FDIC, and are 

consistent with the regulatory changes 

FDIC made under the Reform Act and 

Conforming Amendments Act. 

Additionally, the interim final rule 

clarified and incorporated prior 

interpretations of the share insurance 

rules that provide coverage for qualified 

tuition savings plans created pursuant 

to section 529 of the IRC (529 plans) and 

share accounts denominated in foreign 

currencies. 

C. Summary of Comments 

NCUA received 14 comments 

regarding the interim rule: Three from 

FCUs, six from state credit unions, two 

from credit union trade associations, 

and three from a professional 

association of state and territorial 

regulatory agencies. All 14 commenters 

supported the rule. 

Two commenters, while supporting 

the rule in general, limited their 

comments to NCUA’s clarification of 

share insurance coverage for shares 

denominated in foreign currency. One 

of those commenters also requested 

NCUA permit credit unions to invest 

foreign currencies received from 

members at pre-approved corporate 

credit unions. Permissible investments 

for FCUs are beyond the scope of this 

rulemaking, but the Board may consider 

this authority in other rulemakings. 

The other twelve commenters 

supporting the rule responded to 

NCUA’s request for comments on 

whether pass-through coverage for 

employee benefit plans should depend 

on the participants’ membership in the 

credit union where the employee benefit 

plan is maintained. All agreed share 


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56002 Federal Register / Vol. 71, No. 186 / Tuesday, September 26, 2006 / Rules and Regulations 

insurance coverage should be extended 

to all participants of the employee 

benefit plan regardless of the 

participants’ membership in the credit 

union. Many of the commenters noted 

that: (1) Employers generally establish 

employee benefit plans at credit unions 

where there is already some 

membership connection; (2) participants 

may not control where their interests in 

the employee benefit plan are deposited; 

and, (3) the Conforming Amendments 

Act prohibits credit unions that are not 

well or adequately capitalized from 

accepting employee benefit plan shares. 

Seven commenters requested NCUA 

extend pass-through coverage to 

attorney trust accounts commonly 

known as IOLTA accounts (interest-onlawyer-trust accounts) in a fashion 

similar to employee benefit plans 

accounts. These comments are beyond 

the scope of this rulemaking. The 

Conforming Amendments Act does not 

address IOLTA accounts, and NCUA 

will continue to insure IOLTA accounts 

by providing pass-through coverage 

only to members. 

D. Standard Maximum Share Insurance 

Amount 

The interim final rule added a 

definition of SMSIA to § 745.1, the 

definitions section of the share 

insurance rules. 12 CFR 745.1. The 

definition of SMSIA tracks the language 

of the Conforming Amendments Act and 

reads ‘‘$100,000, adjusted as provided 

under section 11(a)(1)(F) of the Federal 

Deposit Insurance Act.’’ 12 U.S.C. 1821 

(a)(1)(F). Revised section 11(a)(1)(F) of 

the Federal Deposit Insurance Act 

details how every five years, the NCUA 

and FDIC will consider and calculate 

the inflation adjustment to the SMSIA 

and SMDIA, as discussed above. Also, 

the definition of SMSIA notes: (1) The 

current SMSIA is $100,000; (2) the 

acronym SMSIA is used throughout the 

regulatory text of part 745; and (3) all 

examples of share insurance coverage in 

part 745 use the current SMSIA of 

$100,000, unless a higher limit is 

presented and specifically noted. 

Accordingly, all references to the 

current insurance amount of $100,000 

in the appendix to part 745, except for 

the examples in the appendix, are 

replaced by the acronym SMSIA. 

Examples in the appendix to part 745, 

which NCUA believes are helpful in 

illustrating a member’s insurance 

coverage, will continue to provide the 

dollar amount of insurance for the 

particular example so members can 

calculate and know the insurance 

available on their accounts. The use of 

the acronym SMSIA throughout the 

regulatory text of part 745, instead of an 

actual number, will allow NCUA to 

avoid having to change the numerical 

limit of share insurance throughout the 

rule each time the SMSIA is adjusted for 

inflation. 

The amendments regarding the 

SMSIA in the interim final rule are 

adopted in this final rule without 

change. 

E. Retirement and Other Employee 

Benefit Plan Accounts 

In implementing amendments to the 

FCU Act by the Conforming 

Amendments Act, the interim final rule 

consolidated § 745.9–3 into § 745.9–2. 

This section now addresses share 

insurance coverage for IRA/Keogh 

accounts and deferred compensation 

accounts, establishes pass-through 

insurance coverage for employee benefit 

plan accounts, and increases share 

insurance coverage to $250,000 for 

certain retirement accounts. 

Although the Conforming 

Amendments Act prohibits insured 

credit unions that are not ‘‘well 

capitalized’’ or ‘‘adequately capitalized’’

from accepting employee benefit plan 

shares, pass-through coverage is granted 

for shares in employee benefit plan 

accounts in existence before this rule 

even if the credit unions do not meet the 

requisite capital levels. Credit unions 

that do not meet the requisite capital 

levels, or those that previously met the 

requisite capital levels but fall below 

those levels, are prohibited from 

accepting shares in employee benefit 

plan accounts until their capital levels 

improve. 

Previously, full share insurance 

coverage in an employee benefit plan, 

such as a deferred compensation 

account, had been limited to plan 

participants who are also members of 

the credit union in which the account 

is maintained. In the interim final rule, 

NCUA noted that, during the 

rulemaking process, it intended to 

continue to insure employee benefit 

plan participants in accordance with the 

example for retirement funds then 

provided in the appendix to NCUA’s 

insurance rule. 12 CFR part 745, 

Appendix, Paragraph G, Examples 3(a) 

and 3(b). That meant participants in an 

employee benefit plan who are credit 

union members would receive up to 

$100,000 as to their determinable 

interest but member interests not 

capable of evaluation and nonmember 

interests would be added together and 

insured up to $100,000 in the aggregate. 

NCUA also noted in the interim final 

that the language of the Conforming 

Amendments Act suggests greater 

NCUA authority to provide passthrough coverage on a per-participant 

basis, regardless of membership status. 

Specifically, the Conforming 

Amendments Act defines pass-through 

insurance as ‘‘insurance coverage based 

on the interest of each participant’’

without including any limitations or 

qualifications requiring the membership 

status of each participant. Federal 

Deposit Insurance Reform Conforming 

Amendments Act of 2005, Public Law 

109–173. Also, the legislative history of 

the Reform Act evidences congressional 

intent to advance as a national priority 

the enhancement of retirement security 

for all Americans. H.R. Rep. No. 109–67 

at 22 (2005). 

On those bases, and in consideration 

of the comments received, NCUA 

believes it is appropriate to extend full 

coverage to all participants in an 

employee benefit plan. NCUA does not 

believe it is necessary to restrict this 

extended coverage only to plans where 

the plan trustee or the employer 

sponsoring the plan is a member or if 

some percentage of plan participants are 

members. NCUA finds the language of 

the Conforming Amendments Act does 

not impose any membership restrictions 

and supports the agency’s position. 

Furthermore, NCUA believes 

extending full coverage to all 

participants, regardless of membership 

status, is both fair and reasonable for 

two additional reasons. First, it is 

extremely likely that employers or 

trustees will only establish employee 

benefit plans at a credit union if there 

is already some membership 

connection, for example, the employee 

group is within the field of membership 

of the credit union. Second, participants 

may not be able to control or readily 

determine where their interests in an 

employee benefit plan are maintained. 

Therefore, as a matter of fairness to 

participants, all should be assured of 

full, pass-through coverage. As 

discussed above, NCUA will extend full 

pass-through coverage to member and 

nonmember participants alike. 

Accordingly, examples 3(a) and (b) in 

paragraph G of the appendix are revised 

to illustrate the pass-through coverage 

provided to employee benefit plans. 

F. Public Unit Accounts 

The interim final rule changed the 

heading of § 745.10 from ‘‘Public Unit 

Accounts’’ to ‘‘Accounts Held By 

Government Depositors’’ to reflect the 

amendments to 12 U.S.C. 1787(k)(2) by 

the Conforming Amendments Act. The 

interim rule did not make any 

substantive changes to § 745.10 other 

than replacing references to $100,000 

with references to the SMSIA. The 

amendments regarding public unit 


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Federal Register / Vol. 71, No. 186 / Tuesday, September 26, 2006 / Rules and Regulations 56003 

accounts in the interim rule are adopted 

in this final rule without change. 

G. 529 Programs 

Section 529 of the IRC provides tax 

benefits for 529 plans. 26 U.S.C. 529(a). 

These programs include prepaid tuition 

programs, which educational 

institutions may create, as well as 

tuition savings programs that states or 

public instrumentalities sponsor. 26 

U.S.C. 529(b)(1). Section 529 defines a 

tuition savings program as a program 

under which a person ‘‘may make 

contributions to an account which is 

established for the purpose of meeting 

the qualified higher education expenses 

of the designated beneficiary of the 

account’’ and which meets certain 

requirements. 26 U.S.C. 529(b)(1)(A)(ii). 

A participant in a 529 program acquires 

an interest in a state trust and does not 

directly deposit funds with a financial 

institution. 

In April 2005, a state contacted NCUA 

about share insurance coverage for its 

529 plan. The state asked NCUA to 

adopt a rule similar to the FDIC’s 

interim final rule to allow pass-through 

coverage for participants in the 529 

program. 70 FR 33689 (June 9, 2005). 

The FDIC’s interim final rule provided 

pass-through coverage to each 

participant aggregated with the 

participant’s other single ownership 

accounts at the same financial 

institution up to $100,000, provided 

that each deposit may be traced to one 

or more particular investors and the 

FDIC’s disclosure rules for pass-through 

coverage had been satisfied. 70 FR at 

33691. 

NCUA’s Office of General Counsel 

(OGC) issued a legal opinion concluding 

that NCUA’s insurance rules provide 

pass-through coverage to a 529 program 

participant if the participant is a 

member of the federally insured credit 

union where the 529 program account is 

maintained and if the account is 

properly titled. OGC Legal Opinion 05–

0630 (July 1, 2005). This interpretation 

of the NCUA rule reached the same 

result in terms of coverage and 

maintained parity with the deposit 

insurance provided by the FDIC in its 

interim rule, although on a slightly 

different basis. The legal opinion also 

noted that NCUA would consider 

amending its insurance rule when FDIC 

issued a final one. Id. In October 2005, 

FDIC issued a final rule without any 

substantive changes. The interim rule 

incorporated OGC Legal Opinion 05–

0630 into part 745 to clarify that share 

insurance coverage is available for 529 

program participants. 

In 529 programs of which NCUA is 

aware, the state holds 529 program 

funds as an agent for the participants. 

Accordingly, these accounts are insured 

as single ownership accounts under 

NCUA’s share insurance rule covering 

accounts held by agents or nominees. 12 

CFR 745.3(a)(2). 

Agent or nominee accounts are 

insured as individual accounts and are 

aggregated with all other individual 

accounts a participant has at the same 

credit union up to the SMSIA. To be 

fully insured, the participant’s interest 

must be ascertainable from the credit 

union’s or state’s records. 12 CFR 

745.2(c)(2). Therefore, careful titling of 

the accounts and proper records are 

necessary to ensure each participant 

receives individual account coverage. 

NCUA insurance regulations require a 

participant to be a member of the credit 

union or otherwise eligible to maintain 

an insured account in the credit union. 

12 CFR 745.0. The amendments 

regarding 529 programs in the interim 

rule are adopted in this final rule 

without change. 

H. Share Accounts Denominated in a 

Foreign Currency 

The FCU Act authorizes the NCUA 

Board to limit the type of share 

payments a credit union may accept and 

to determine the types of funds that will 

be insured. 12 U.S.C. 1766, 1782, 

1782(h)(3). If NCUA permits federal 

credit unions (FCUs) to accept member 

accounts denominated in a foreign 

currency, then NCUA must insure them. 

12 U.S.C. 1781(a). Under the FCU Act’s 

nondiscrimination provision, NCUA 

must provide the same coverage for 

member accounts of state-chartered 

credit unions that comply with the FCU 

Act and NCUA regulations. Id.; 12 

U.S.C. 1790. 

Under the incidental powers rule, 

FCUs can provide monetary instrument 

services that enable members to 

purchase, sell, or exchange various 

currencies. 12 CFR 721.3(i). FCUs can 

use their accounts in foreign financial 

institutions to facilitate transfer and 

negotiation of member share drafts 

denominated in foreign currencies or 

engage in monetary transfer services. 

FCU funds deposited in a foreign 

financial institution are not insured by 

NCUA and may not be insured by the 

foreign country. Consequently, NCUA 

has highlighted the need for FCUs to 

exercise due diligence to ensure the 

foreign financial institutions with which 

it has accounts are financially sound, 

suitably regulated, and authorized to 

accept its transactions before opening 

any accounts. OGC Legal Opinion 99–

1031 (December 9, 1999). FCUs assume 

the risk of currency fluctuations when 

they maintain an account in a foreign 

financial institution. NCUA recognized 

this risk and, before adopting § 721.3(i), 

had recommended FCUs either 

purchase or deposit only the amount of 

foreign currency needed to satisfy 

immediate short-term needs of their 

members. OGC Legal Opinions 99–1031 

(December 9, 1999); 90–0637 (June 29, 

1990). 

While the FCU Act does not prohibit 

FCUs from accepting foreigndenominated shares, potential safety 

and soundness concerns associated with 

currency fluctuations have kept FCUs 

from offering these accounts. 

Accordingly, NCUA has only permitted 

FCUs to provide foreign currency 

services as an incidental powers activity 

rather than allowing FCUs to maintain 

shares in foreign currency. See OGC 

Legal Opinions 89–0822 (September 15, 

1989); 89–0613 (July 31, 1989). Simply 

accepting shares denominated in a 

foreign currency presents little risk, if 

any, to credit unions. NCUA believes 

federally insured credit unions can 

effectively manage the risks associated 

with accepting shares denominated in 

foreign currency and issued provisions 

similar to the FDIC’s in the interim final 

rule. Lending or investing funds in 

foreign currency still presents an 

increased risk to credit unions due to 

currency fluctuations that cannot be 

easily ameliorated, so the interim final 

rule did not permit lending or investing 

funds denominated in a foreign 

currency. 

Previously, NCUA had not expressly 

addressed the insurability of member 

accounts denominated in foreign 

currency except in the foreign branching 

regulation, where NCUA has limited the 

insurability of member accounts at 

foreign branches of an insured credit 

union to accounts denominated in U.S. 

dollars. 12 CFR 741.11(e). The interim 

final rule provided share insurance 

coverage for shares denominated in a 

foreign currency and for conversion of 

foreign currency to U.S. dollars before 

an insurance payout in the event a 

credit union is liquidated similarly to 

the FDIC. 

The FDIC provides insurance 

coverage for deposits at insured banks 

denominated in a foreign currency equal 

to the amount of U.S. dollars equivalent 

in value to the amount of the deposit 

denominated in the foreign currency up 

to the SMDIA. 12 CFR 330.3(c). Under 

the FDIC rule, if an insured bank is 

liquidated, the value of the foreign 

currency deposit is determined using 

the rate of exchange quoted by the 

Federal Reserve Bank of New York at 

noon on the day the bank defaults, 

unless the deposit agreement states 

otherwise. Id. Deposits payable solely 


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56004 Federal Register / Vol. 71, No. 186 / Tuesday, September 26, 2006 / Rules and Regulations 

outside of the U.S. and its territories are 

not insurable deposits. 12 CFR 330.3(e). 

As noted above, accepting shares 

denominated in a foreign currency 

presents little risk. If a credit union is 

able to fund an operation that is fully 

integrated and supportable in foreign 

currency, it will have minimized its 

exposure to risk of loss due to currency 

fluctuation. Actually, the risk would 

shift to the members who deposit and 

withdraw funds denominated in the 

foreign currency. 

The interim final rule permitted credit 

unions to accept shares denominated in 

foreign currency and provided share 

insurance coverage of those shares. By 

accepting shares denominated in foreign 

currencies, credit unions can better 

serve members who, for example, 

receive payments in foreign currencies. 

Additionally, members who deposit 

shares denominated in a foreign 

currency will have the same share 

insurance coverage available for share 

accounts denominated in U.S. dollars. 

Credit unions must carefully consider 

any risk associated with maintaining 

shares denominated in foreign 

currencies before offering this service to 

their members. Federally insured credit 

unions that maintain shares 

denominated in a foreign currency will 

receive instructions on how to report 

these deposits on 5300 call reports. 

The interim final did not permit 

insured credit unions to make loans or 

invest funds denominated in foreign 

currencies. These transactions may 

require credit unions to participate in 

trading currency, also called hedging or 

currency swaps, to manage the risk of 

potential loss due to currency 

fluctuations. While hedging may help 

credit unions protect against risks 

associated with changing currency rates, 

NCUA rules currently prohibit natural 

person FCUs from investing in 

derivatives like currency swaps. 12 CFR 

703.16(a). FCUs that wish to engage in 

swaps to hedge against currency 

fluctuation must apply for NCUA 

approval as a part of a properly 

designed investment pilot program. 12 

CFR 703.19. This rulemaking only 

addresses share insurance coverage. 

During NCUA’s annual regulatory 

review, staff will consider the 

investments rules in part 703 and may 

recommend amendments to FCU 

investment authority. The amendments 

regarding share accounts denominated 

in a foreign currency in the interim final 

rule are adopted in this final rule 

without change. 

Regulatory Procedures 

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 credit unions, defined 

as those under ten million dollars in 

assets. This final rule clarifies and 

improves available share insurance 

coverage, without imposing any 

regulatory burden. The final 

amendments would not have a 

significant economic impact on a 

substantial number of small credit 

unions, and, therefore, a regulatory 

flexibility analysis is not required. 

Paperwork Reduction Act 

NCUA has determined that this final 

rule would not increase paperwork 

requirements under the Paperwork 

Reduction Act of 1995 and regulations 

of the Office of Management and 

Budget. 

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. This final rule would not have 

substantial direct effects 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 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 

The NCUA has determined that this 

final rule would not affect family wellbeing within the meaning of section 654 

of the Treasury and General 

Government Appropriations Act, 1999, 

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

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 Administrative Procedure 

Act. 5 U.S.C. 551. The Office of 

Management and Budget has 

determined that this final rule is not a 

major rule for purposes of SBREFA. 

List of Subjects in 12 CFR Part 745 

Credit unions, Share insurance. 

By the National Credit Union 

Administration Board on September 21, 

2006. 

Mary F. Rupp, 

Secretary of the Board. 

■ Accordingly, NCUA adopts the 

interim rule amending 12 CFR part 745, 

which was published at 71 FR 14631 on 

March 23, 2006, as a final rule with the 

following change: 

PART 745—SHARE INSURANCE AND 

APPENDIX 

■ 1. The authority citation for part 745 

continues to read as follows: 

Authority: 12 U.S.C. 1752(5), 1757, 1765, 

1766, 1781, 1782, 1787, 1789. 

■ 2. The Appendix to part 745 is 

amended by revising Examples 3(a) and 

3(b) of Paragraph G to read as follows: 

Appendix to Part 745—Examples of 

Insurance Coverage Afforded Accounts 

in Credit Unions Insured by the 

National Credit Union Share Insurance 

Fund 

* * * * * 

G. How Are Trust Accounts and Retirement 

Accounts Insured? 

* * * * * 

Example 3(a) 

Question: Member T invests $500,000 in 

trust for ABC Employees Retirement Fund. 

Some of the participants are members and 

some are not. What is the insurance 

coverage? 

Answer: The account is insured as to the 

determinable interests of each participant to 

a maximum of $100,000 per participant 

regardless of credit union member status. T’s 

member status is also irrelevant. Participant 

interests not capable of evaluation shall be 

added together and insured to a maximum of 

$100,000 in the aggregate (§ 745.9–2). 

Example 3(b) 

Question: T is trustee for the ABC 

Employees Retirement Fund containing 

$1,000,000. Fund participant A has a 

determinable interest of $90,000 in the Fund 

(9% of the total). T invests $500,000 of the 

Fund in an insured credit union and the 

remaining $500,000 elsewhere. Some of the 

participants of the Fund are members of the 

credit union and some are not. T does not 

segregate each participant’s interest in the 

Fund. What is the insurance coverage? 

Answer: The account is insured as to the 

determinable interest of each participant, 

adjusted in proportion to the Fund’s 

investment in the credit union, regardless of 

the membership status of the participants or 

trustee. A’s insured interest in the account is 

$45,000, or 9% of $500,000. This reflects the 

fact that only 50% of the Fund is in the 


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Federal Register / Vol. 71, No. 186 / Tuesday, September 26, 2006 / Rules and Regulations 56005 

account and A’s interest in the account is in 

the same proportion as his interest in the 

overall plan. All other participants would be 

similarly insured. Participants’ interests not 

capable of evaluation are added together and 

insured to a maximum of $100,000 in the 

aggregate (§ 745.9–2). 

* * * * * 

[FR Doc. 06–8258 Filed 9–25–06; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Parts 21 and 91 

[Docket No. FAA–2003–14825; Amendment 

No. 21–88, 91–293] 

RIN 2120–AH90 

Standard Airworthiness Certification of 

New Aircraft; Correction 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; correction. 

SUMMARY: This document makes a 

correction to the final rule published in 

the Federal Register on September 1, 

2006 (71 FR 52250), which amends 

regulations for issuing airworthiness 

certificates to certain new aircraft 

manufactured in the United States. This 

action is necessary to add an 

amendment number to the headings 

section at the beginning of the final rule. 

This correction does not make 

substantive changes to the final rule. 

DATES: Effective Date: October 2, 2006. 

FOR FURTHER INFORMATION CONTACT: Dan 

Hayworth, Airworthiness Certification 

Branch, AIR–230, Federal Aviation 

Administration, 800 Independence 

Avenue, SW., Washington, DC 20591, 

telephone (202) 267–8449. 

SUPPLEMENTARY INFORMATION: 

Background 

The September 1, 2006, final rule (71 

FR 52250) inadvertently failed to 

include in the headings section at the 

beginning of the rule an amendment 

number for the change to 14 CFR part 

91. Amendment numbers are a means 

by which the FAA keeps track of 

changes to its regulations. The final rule 

included an amendment number for the 

changes to 14 CFR part 21 (No. 21–88), 

but not for part 91. For this reason, we 

are adding amendment number 91–293 

to the headings section at the beginning 

of the rule. 

Correction 

In final rule FR Doc. 06–7355, 

beginning on page 52250 in the issue of 

September 1, 2006, make the following 

correction in the headings section. On 

page 52250 in the first column, change 

the agency docket information to read as 

follows: 

‘‘[Docket No. FAA–2003–14825; 

Amendment Nos. 21–88, 91–293]’’

Issued in Washington, DC, on September 

11, 2006. 

Ida M. Klepper, 

Acting Director, Office of Rulemaking. 

[FR Doc. 06–8234 Filed 9–25–06; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Parts 413 and 417 

[Docket No. FAA–2000–7953; Amendment 

Nos. 401–4, 406–3, 413–7, 415–4, 417–0] 

RIN 2120–AG37 

Licensing and Safety Requirements for 

Launch; Correction 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; correction. 

SUMMARY: This document makes two 

minor corrections to a final rule that 

amends commercial space 

transportation regulations governing the 

launch of expendable launch vehicles. 

71 FR 50507 (Aug. 25, 2006). This 

action is necessary to correct a 

paragraph designation and add a 

notation of a reserved appendix. This 

correction does not make substantive 

changes to the final rule. 

EFFECTIVE DATES: September 25, 2006. 

FOR FURTHER INFORMATION CONTACT: 

Rene ́ Rey, Licensing and Safety 

Division, AST–200, Federal Aviation 

Administration, 800 Independence 

Avenue, SW., Washington, DC 20591; 

telephone (202) 267–7538; e-mail 

Rene.Rey@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

In the August 25, 2006, final rule (71 

FR 50507, 50531), amendatory 

instruction no. 6 added paragraph (d), 

Measurement system consistency to 14 

CFR 413.7. However, an earlier FAA 

action had added paragraph (d), Safety 

approval to § 413.7. 71 FR 46847, 46852 

(Aug. 15, 2006). It was not the FAA’s 

intention in the August 25, 2006 rule to 

supersede the previously added 

paragraph (d). Thus, we are changing 

the paragraph designation of 

Measurement system consistency to 14 

CFR 413.7(e). 

Also, in the August 25, 2006 rule, 

amendatory instruction no. 21 added 14 

CFR part 417 in its entirety. 71 FR at 

50537. The table of contents for the part 

indicated that appendix F was reserved 

for future use. However, the text of part 

417 inadvertently failed to include any 

reference to the existence of the 

reserved appendix. To avoid any 

possible confusion, we are adding a 

notation referencing the reserved 

appendix between the text of appendix 

E of part 417 and the text of appendix 

G of part 417. 

Justification for Expedited Rulemaking 

Section 553 of the Administrative 

Procedure Act, 5 U.S.C. 553(b)(B), 

provides that, when an agency for good 

cause finds that notice and public 

procedure are impracticable, 

unnecessary, or contrary to the public 

interest, the agency may issue a rule 

without providing notice and an 

opportunity for public comment. We 

have determined there is good cause for 

making today’s action final without 

prior proposal and opportunity for 

comment because the changes are minor 

technical corrections and do not change 

the substantive requirements of the rule. 

Thus, notice and public procedure are 

unnecessary. 

List of Subjects 

14 CFR Part 413 

Rockets, Space transportation and 

exploration. 

14 CFR Part 417 

Rockets, Space transportation and 

exploration. 

The Amendment 

■ Accordingly, the FAA amends 

Chapter 1 of Title 14 of the Code of 

Federal Regulations as follows: 

PART 413—LICENSE APPLICATION 

PROCEDURES 

■ 1. The authority citation for part 413 

continues to read as follows: 

Authority: 49 U.S.C. 70101–70121. 

■ 2. Amend § 413.7 by removing 

paragraph (d) that was added on August 

25, 2006 (71 FR 50531), and by adding 

paragraph (e) to read as follows: 

§ 413.7 Application. 

* * * * * 

(e) Measurement system consistency. 

For each analysis, an applicant must 

employ a consistent measurements 

system, whether English or metric, in its 

application and licensing information. 


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