Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Rules and Regulations 50245

who is not subject to the provisions of

the final rule.

The final rule regarding tethering of

dogs was issued under the authority of

the Animal Welfare Act. The Animal

Welfare Act authorizes APHIS to

license, register, and regulate animal

dealers, animal transporters, animal

exhibitors, and research facilities that

sell, transport, exhibit, or use certain

kinds of animals, including dogs.

Regulations established under the Act

are contained in 9 CFR parts 1, 2, and

3. Subpart A of 9 CFR part 3 contains

requirements concerning dogs and cats.

With regard to dogs sold, transported,

exhibited, or used in research by

persons subject to the Animal Welfare

Act, APHIS’ regulations are intended to

ensure that the dogs are given proper

and humane care. Persons subject to the

Animal Welfare Act include persons

who sell dogs wholesale or breed dogs

to sell wholesale, sell dogs to

laboratories for research purposes or

breed dogs for sale to laboratories for

research purposes, broker dogs, operate

an auction at which dogs are sold, or

give dogs as prizes as part of a

promotion. Transporters of dogs, such

as airlines, railroads, motor carriers, and

handlers contracted to transport dogs,

are also subject to the Animal Welfare

Act. Additionally, persons who exhibit

dogs (such as circuses or carnivals) and

laboratories that use dogs for research

are subject to the Animal Welfare Act.

These are the groups that must comply

with the final rule prohibiting

permanent tethering of dogs as a means

of primary enclosure. However, any

person required to comply with the final

rule may request approval from APHIS

to temporarily tether a dog.

Any person who is not subject to the

Animal Welfare Act does not have to

comply with the final rule on tethering,

and may continue to tether their dogs.

Persons who own dogs as pets are not

subject to the Animal Welfare Act.

Persons who breed dogs as a hobby, and

do not sell them wholesale, are not

subject to the Animal Welfare Act. Dog

mushers and owners of guard dogs or

hunting dogs are not subject to the

Animal Welfare Act. Therefore, these

entities are not subject to and do not

have to comply with APHIS’ final rule

regarding tethering of dogs. APHIS has

no authority under the Animal Welfare

Act to prohibit tethering of dogs by

persons who are not subject to the Act.

Individuals most likely to be affected

by the final rule on tethering are those

licensed by APHIS as Class A and Class

B dealers of dogs. This includes persons

who sell dogs wholesale, breed dogs to

sell wholesale, sell dogs to laboratories

for research purposes, or breed dogs for

sale to laboratories for research

purposes. Most dog breeder and

wholesale industry organizations agree

that tethering is not a humane means of

primary enclosure for dogs when used

under the circumstances typical to

breeding and wholesale facilities. Many

of these organizations already prohibit

member facilities from using tethering

as a means of primary enclosure. For

this reason, using tethering as a means

of primary enclosure is rare among

licensed Class A and Class B dog

dealers. We recognize that many

persons not subject to the Animal

Welfare Act do tether their dogs.

Persons not regulated under the Animal

Welfare Act who tether their dogs are

likely to be using this means of restraint

under circumstances different than

those typical to breeding and wholesale

facilities. In these cases, tethering may

be a humane method of restraint.

Regardless, APHIS does not have the

authority to regulate the activities of dog

owners who are not subject to the

Animal Welfare Act.

Authority: 7 U.S.C. 2131–2159; 7 CFR 2.22,

2.80, and 371.2(g).

Done in Washington, DC, this 22nd day of

September 1997.

Terry L. Medley,

Administrator, Animal and Plant Health

Inspection Service.

[FR Doc. 97–25482 Filed 9–24–97; 8:45 am]

BILLING CODE 3410–34–P

NATIONAL CREDIT UNION

ADMINISTRATION

12 CFR Chapter VII

Interpretive Rulings and Policy

Statements

AGENCY: National Credit Union

Administration (NCUA).

ACTION: Withdrawal of outdated and

unnecessary Interpretive Rulings and

Policy Statements (IRPS).

SUMMARY: NCUA is withdrawing several

of its Interpretative Rulings and Policy

Statements (IRPS) that have become

outdated or unnecessary or have been

superseded by other IRPS or NCUA

regulations. This is the first step in

NCUA’s ongoing project to update and

streamline its IRPS. The intended

purpose of withdrawing these IRPS is to

ease the compliance burden on federally

chartered and federally insured credit

unions and provide more valuable

guidance by eliminating IRPS that no

longer effectively advance NCUA’s

regulatory goals or statutory

responsibilities.

EFFECTIVE DATE: September 25, 1997.

ADDRESSES: National Credit Union

Administration, 1775 Duke Street,

Alexandria, Virginia 22314–3428.

FOR FURTHER INFORMATION CONTACT:

Nicole Sippial Williams, Staff Attorney,

Division of Operations, Office of the

General Counsel, (703) 518–6540, or at

the above address.

SUPPLEMENTARY INFORMATION:

A. Background

As part of its Regulatory Review

Program, NCUA conducted a review of

its IRPS to determine their current

effectiveness. Several of the IRPS were

found to be outdated and unnecessary

and, thus, could be withdrawn. On

March 13, 1997, the NCUA Board issued

an advance notice of proposed

rulemaking soliciting comments on a

proposal to revise NCUA’s existing

IRPS. As part of the proposal, NCUA

recommended withdrawing 17 IRPS,

redesignating 9 IRPS into the NCUA

Rules and Regulations, transferring 1

IRPS into a NCUA instructional manual

or directive, and preserving 12 IRPS.

NCUA received a total of 17

comments from federal credit unions,

state-chartered credit unions, trade

organizations, state leagues, and state

credit union regulators. The

commenters were overwhelmingly in

support of NCUA’s efforts to revise and

streamline its IRPS and the proposed

action to be taken with regard to each

IRPS, but suggested a few specific

changes.

One commenter suggested that IRPS

80–10, When Federal Credit Unions Can

Charge More Than 15% Per Annum on

Government Insured or Guaranteed

Loans, should not be withdrawn. We

disagree. The guidance provided in this

IRPS is adequately addressed in Section

701.21(e) of NCUA Rules and

Regulations. One commenter suggested

that IRPS 82–6, Corporate Federal Credit

Union Chartering Guidelines, should

not be withdrawn, but should remain

for credit unions that believe they

would be better served by a new

corporate credit union or for state

chartered credit unions that want to

convert to federal charters. We disagree.

The guidance provided in IRPS 82–6 is

no longer relevant to chartering

corporate credit unions. Applications

for new corporate charters will be

handled on a case-by-case basis with the

NCUA Chartering and Field of

Membership Manual (IRPS 94–1, as

amended by IRPS 96–1) used as

guidance where applicable.

NCUA thoroughly evaluated the

comments and has incorporated some of

the suggested changes into this
50246 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Rules and Regulations

withdrawal of IRPS and will continue to

do so as the IRPS are further revised.

IRPS that were marked for

redesignation into NCUA Rules and

Regulations, according to the March 13,

1997, proposal, will be redrafted as

proposed rules and submitted to the

public for notice and comment at a later

date. IRPS to be preserved, will be

further reviewed for possible revision,

and if any changes are made, the IRPS

will be reissued.

B. IRPS To Be Withdrawn

At this time NCUA is withdrawing 18

IRPS that it considers either outdated,

since they no longer provide relevant or

useful guidance, or unnecessary, since

the guidance provided has already been

incorporated into NCUA regulations or

manuals. In addition, 10 IRPS are being

withdrawn because they have been

superseded by other IRPS or NCUA

regulations and NCUA wants to

reemphasize to the public that these

IRPS are no longer viable.

IRPS No. 79–1, Statement of Policy

Regarding Relationship of Credit Union

Service Corporations and Existing

Accounting Service Centers, 44 FR

21762, Apr. 12, 1979, provides that in

order to assist existing accounting

service centers and ‘‘leeway’’

organizations in complying with a new

CUSO rule implemented by NCUA,

NCUA agrees to forego taking any action

for a period of one year. IRPS 79–1 is

outdated because it addresses a specific

NCUA policy to allow a one-year phasein period for a new CUSO rule

implemented by NCUA at that time.

IRPS No. 79–2, Share Accounts, 44 FR

39382, July 6, 1979, provides that as a

result of a rule change deregulating

share accounts, NCUA no longer

requires share draft accounts to be

identical to regular share accounts and

confirms that share draft accounts are

regular share accounts with terms and

dividend rates that can vary from other

regular share accounts. IRPS 79–2 is

unnecessary because the guidance

provided is restated in Section 701.35 of

NCUA Rules and Regulations.

IRPS No. 79–3, Amortization of Long

Term Real Estate Loans, 44 FR 39182,

July 5, 1979, states that absent NCUA

approval, federal credit unions must

amortize real estate loans by

‘‘substantially equal monthly

installments’’ with two exceptions. The

total of principal and interest for the

first and last monthly installment may

differ slightly from the total of the other

installments. IRPS 79–3 is outdated

because it is superseded by Sections

5040.5.2.1.1 and 5040.5.2.1.2 of the

NCUA Accounting Manual. The

Accounting Manual establishes two

methods of amortizing loans that may be

used by federal credit unions.

IRPS No. 79–4, Investment Activities,

44 FR 51195, Aug. 31, 1979, established

certain accounting procedures for

permissible investment activities. IRPS

79–4 is unnecessary because the

guidance provided is restated in the

current, as well as, the newly revised

version of Part 703 NCUA of Rules and

Regulations and in the NCUA

Accounting Manual.

IRPS No. 79–5, Insurance Activities,

44 FR 43711, July 26, 1979, provides

that participation in a draft payment

system that involves the presentment

and settlement of claims by a federal

credit union, with subsequent

reimbursement to the federal credit

union by the insurer is impermissible.

Thus, a federal credit union’s

involvement with an insurance vendor

is limited to the forwarding of claim

forms to the vendor for processing. IRPS

79–5 is outdated because it interprets an

obsolete provision. In addition Part 721

of NCUA Rules and Regulations,

addressing rules governing insurance,

limits a federal credit union’s insurance

activities to performing administrative

functions on behalf of a vendor.

IRPS No. 79–7, Liquidity Reserve, 44

FR 61172, Oct. 24, 1979, provides

guidance on NCUA’s position on (1)

provisions of Part 742, (2) the

calculation and disclosure of liquidity

reserves, and (3) procedures for

requesting additional time to meet the

liquidity reserve. IRPS 79–7 is outdated

because Part 742 has been removed from

NCUA Rules and Regulations. The

NCUA Board believed that efficient

liquidity management varies among

credit unions, and liquidity decisions

should be the responsibility of

individual credit unions boards of

directors.

IRPS No. 79–8, Public Observance

and Availability of Information

Regarding Board Meetings; Interim

Sunshine Act Policy Statement, 44 FR

70709, Dec. 10, 1979, sets forth NCUA’s

policy governing the implementation of

the Sunshine Act. IRPS 79–8 is

unnecessary because the guidance

provided is restated in §§ 791.9–791.18

of NCUA Rules and Regulations.

IRPS No. 79–9, Rate of Interest, 44 FR

74799, Dec. 18, 1979, provides that the

effect of a compensating balance must

be considered in determining usury

limits on federal credit union member

loans. IRPS 79–9 is outdated because

the permissible interest rate that credit

union may charge has changed from

12% to 15%, and the practice of

requesting compensating balances is no

longer prevalent among credit unions.

Any potential questions from a federal

credit union, relating to compensating

balances, can be handled without the

continuing need for this IRPS.

IRPS No. 79–10, Notice of Proposed

Consumer Program, 45 FR 7738, Feb. 4,

1980, sets forth NCUA’s proposed

consumer program as requested by

Executive Order 12160. IRPS 79–10 is

outdated because it is superseded by

IRPS 80–7, the Final Notice of

Consumer Program, 45 FR 50260, July

28, 1980.

IRPS No. 80–7, Final Notice of

Consumer Program, 45 FR 50260, July

28, 1980, sets forth NCUA’s final

consumer program which was to be

governed by the Office of Consumer

Affairs. IRPS 80–7 is outdated because

it is superseded by NCUA Instruction

12400.2, Compliance Activities:

Complaint Handling and

Documentation of Violations, which sets

forth NCUA’s current policy for

handling consumer affairs.

IRPS No. 80–10, When Federal Credit

Unions Can Charge More Than 15

Percent Per Annum on Government

Insured or Guaranteed Loans, 45 FR

71353, Oct. 28, 1980, provides that

government insured and guaranteed

loans may exceed the federal usury rate

for federal credit unions. IRPS 80–10 is

unnecessary because the guidance

provided is restated in § 701.21(e) of

NCUA Rules and Regulations.

IRPS No. 80–11, State Chartered

Federally Insured Credit Unions as Most

Favored Lenders, 45 FR 78624, Nov. 26,

1980, sets forth the conditions upon

which federally insured state chartered

credit unions (FISCUs) are granted most

favored lender status pursuant to the

Federal Credit Union Act. IRPS 80–11 is

outdated because it has been superseded

by IRPS 81–3, State Chartered Federally

Insured Credit Unions as ‘‘Most Favored

Lenders,’’ 45 FR 78624, Nov. 26, 1980,

which removed the conditions set forth

in IRPS 80–11 so that most favored

lender status would apply to any loan

that an FISCU grants.

IRPS No. 80–12, Verification of

Member Accounts, 46 FR 9919, Jan. 30,

1981, provides that federal credit unions

are allowed to use statistical sampling

in satisfaction of statutory and

regulatory member account verification

requirements. IRPS 80–12 is

unnecessary because the guidance

provided is restated in Chapter 24 of

NCUA’s Supervisory Committee Guide.

IRPS No. 81–1, Definitions—

Exclusions from Gross Income in

Computing Reserve Requirements, 46

FR 13204, Feb. 20, 1981, provides that

credit unions receiving Central

Liquidity Fund dividends may exclude

those dividends in computing federallyimposed reserve requirements. IRPS 81–
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Rules and Regulations 50247

1 is unnecessary because the guidance

provided is restated in Section 6090.5 of

the NCUA Accounting Manual.

IRPS No. 81–2, Federal Funds, 46 FR

14887, Mar. 3, 1981, authorizes certain

federal funds transactions for federal

credit unions and establishes guidelines

and accounting procedures for the same.

IRPS 81–2 is unnecessary because the

guidance provided is restated in

§ 703.100(g) of NCUA Rules and

Regulations.

IRPS No. 81–4, Developing

Government Regulations, 46 FR 29248,

June 1, 1981, sets forth NCUA’s

procedures for developing and

reviewing its regulations. IRPS 81–4 was

drafted in response to the passage of the

Financial Simplification Act of 1980,

the Regulatory Flexibility Act of 1980, 5

U.S.C. et seq., and the Paperwork

Reduction Act of 1980, 44 U.S.C. 3501

et seq. IRPS 81–4 is now outdated due

to changes in the law, including the

repeal of the Financial Simplification

Act of 1980, and is superseded by IRPS

87–2 which sets forth NCUA’s current

procedures for developing and

reviewing its regulations.

IRPS No. 81–5, Proposed Policy

Statement Release of Consumer

Examination Reports, 46 FR 29575, June

2, 1981, sets forth conditions under

which individual federal credit unions

may release consumer compliance

examination reports to third parties.

IRPS 81–5 is outdated because

consumer compliance examinations are

no longer performed as separate

examinations, but are performed in

conjunction with safety and soundness

examinations producing one

examination report. This examination

report is an exempt document. The

release of an exempt document is

addressed in Part 792 of NCUA Rules

and Regulations.

IRPS No. 81–8, Full and Fair

Disclosure Requirements, 47 FR 23685,

June 1, 1982, provides that compliance

with Section 2000 of the Accounting

Manual will place a federal credit union

in compliance with the full and fair

disclosure requirements of Part 702 of

the NCUA Regulations. IRPS 81–8 is

unnecessary because the guidance

provided is restated in § 702.3 of NCUA

Rules and Regulations and Section 1000

of the NCUA Accounting Manual.

IRPS No. 81–9, Share, Share Draft and

Share Certificate Accounts, 46 FR

57668, Nov. 25, 1981, sets forth NCUA’s

position regarding the calculation and

assessment of premature withdrawal

penalties for variable-rate and multipleaddition share certificate accounts. IRPS

81–9 is outdated because NCUA

deregulated § 701.35 of the NCUA Rules

and Regulations, 47 FR 17979, Apr. 27,

1982, giving a federal credit union’s

board of directors the responsibility for

determining the terms and conditions

governing share, share draft, and share

certificate accounts, including

premature withdrawal penalties.

IRPS No. 82–1, Membership in

Federal Credit Unions, 47 FR 16775,

Apr. 20, 1982, provides that federal

credit unions may offer membership to

borrowers whose loans have been

purchased from a liquidated credit

union and that they may serve multiple

occupational group. IRPS 82–1 is

outdated because it is superseded by

IRPS 82–3, Membership in Federal

Credit Unions, 47 FR 26808, June 22,

1982.

IRPS No. 82–3, Membership in

Federal Credit Unions, 47 FR 26808,

June 22, 1982, provides further guidance

on field of membership issues and

authorizes multiple associational group

charters. IRPS 82–3 is outdated because

it is superseded by IRPS 89–1,

Chartering and Field of Membership

Policy, 54 FR 31165, July 27, 1989.

IRPS No. 83–2, Membership in

Federal Credit Unions, 48 FR 22899,

May 23, 1983, clarified that the

definition of a ‘‘well-defined area’’

stated in IRPS 82–3 includes home

offices and branch offices for purposes

of adding additional associational and

occupational groups. IRPS 83–2 is

outdated because it is superseded by

IRPS 89–1, Chartering and Field of

Membership Policy, 54 FR 31165, July

27, 1989.

IRPS No. 84–1, Membership in

Federal Credit Unions, 49 FR 46536,

Nov. 27, 1984, combines IRPS 82–3 and

IRPS 83–2, sets out modifications made

since the two IRPS were published,

incorporates several unwritten policies,

and sets forth a new policy on service

to senior citizens and retirees. IRPS 84–

1 is outdated because it is superseded

by IRPS 89–1, Chartering and Field of

Membership Policy, 54 FR 31165, July

27, 1989.

IRPS No. 85–1, Trustees and

Custodians of Pension Plans, 50 FR

48176, Nov. 22, 1985, provides

guidelines for federal credit unions

involved with self-directed IRA and

Keogh accounts. IRPS 85–1 is

unnecessary because the guidance

provided is restated in Part 724 of

NCUA Rules and Regulations.

IRPS No. 86–2, Joint Policy Statement

on Basic Financial Services, 51 FR

42083, Nov. 21, 1986, provides that

NCUA has adopted FFIEC’s

recommendation encouraging credit

unions to offer basic financial services

accessible to low and moderate-income

members. IRPS 86–2 is unnecessary

because it restates the basic mission of

credit unions. As stated in the Federal

Credit Unions Act, 12 U.S.C. 1751, the

Act was established ‘‘to make more

available to people of small means

credit for provident purposes through a

national system of cooperative credit,

thereby helping stabilize the credit

structure of the United States.’’

IRPS No. 88–1, Policy on Selection of

Securities Dealers and Unsuitable

Investment Practices, 53 FR 18268, May

23, 1988, provides that NCUA will

adopt a modified version of the FFIEC’s

Supervisory Policy containing guidance

to federal credit unions concerning

selection of securities brokers and the

avoidance of unsound investment

practices. IRPS 88–1 is outdated because

it is superseded by IRPS 92–1,

Supervisory Policy Statement on

Securities Activities, 57 FR 22157, May

27, 1992, which provides additional

information on the development of a

portfolio policy and strategies for

securities and on securities practices

that are inappropriate for an investment

account.

IRPS No. 89–1, Chartering and Field

of Membership Policy, 54 FR 31165,

July 27, 1989, provides membership and

chartering policies. IRPS 89–1 is

outdated because it is superseded by

IRPS 94–1, Chartering and Field of

Membership Policy, 59 FR 29066, June

3, 1994, as amended by IRPS 96–1, 61

FR 11721, Mar. 22, 1996.

By the National Credit Union

Administration Board on September 17,

1997.

Becky Baker,

Secretary to the Board.

[FR Doc. 97–25261 Filed 9–24–97; 8:45 am]

BILLING CODE 7535–01–P

FEDERAL HOUSING FINANCE BOARD

12 CFR Part 950

[No. 97–57]

RIN 3069–AA57

Revision of Financing Corporation

Operations Regulation

AGENCY: Federal Housing Finance

Board.

ACTION: Final rule.

SUMMARY: The Federal Housing Finance

Board (Finance Board) is amending its

regulation on Financing Corporation

(FICO) operations to comply with new

statutory requirements, eliminate

provisions that have been rendered

obsolete by statutory changes, and

clarify the practices and procedures of

the Finance Board and FICO. The final

rule is consistent with the goals of the