[Federal Register Volume 62, Number 24 (Wednesday, February 5, 1997)]
[Rules and Regulations]
[Pages 5315-5316]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2830]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 701


Organization and Operations of Federal Credit Unions

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final rule and withdrawal of amendments to Interpretive Ruling 
and Policy Statement 94-1.

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SUMMARY: The NCUA Board has withdrawn Interpretive Ruling and Policy 
Statement 96-2 (IRPS 96-2) that was published in 61 FR 59305 (November 
22, 1996). The NCUA Board has determined that subsequent legal events 
make the withdrawal of IRPS 96-2 appropriate.

DATES: This rule is effective February 5, 1997.

FOR FURTHER INFORMATION CONTACT: John Ianno, Trial Attorney, Office of 
General Counsel or Michael J. McKenna, Acting Associate General 
Counsel, Office of General Counsel, National Credit Union 
Administration, 1775 Duke Street, Alexandria, Virginia 22314-3428 or 
telephone: (703) 518-6540.

SUPPLEMENTARY INFORMATION: On November 14, 1996, the Board issued an 
interim final Interpretive Ruling and Policy Statement (IRPS 96-2) to 
permit federal credit unions to restructure their fields of membership 
consistent with court decisions limiting federal credit union's ability 
to serve eligible credit union members and new select groups. Two 
events have caused the Board to conclude that withdrawal of IRPS 96-2 
is appropriate at this time. First, on December 4, 1996, the U.S. 
District Court for the District of Columbia issued an Order 
invalidating IRPS 96-2 and enjoining NCUA from implementing it. Second, 
on December 24, 1996, the U.S. Court of Appeals for the District of 
Columbia Circuit issued a partial stay of the District Court's earlier 
injunction which prevented federal credit unions from serving new 
members of select

[[Page 5316]]

employee groups which were within their existing field of membership. 
The NCUA Board will consider further regulatory action at an 
appropriate time depending on developments in the ongoing litigation 
concerning field of membership issues.

List of Subjects in 12 CFR Part 701

    Credit, Credit unions, Reporting and recordkeeping requirements.

    By the National Credit Union Administration Board on January 23, 
1997.
Becky Baker,
Secretary of the Board.

    Accordingly, NCUA amends 12 CFR part 701 as follows:

PART 701--ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS

    1. The authority citation for part 701 continues to read as 
follows:

    Authority: 12 U.S.C. 1752(5), 1755, 1756, 1757, 1759, 1761a, 
1761b, 1766, 1767, 1782, 1784, 1787, 1789. Section 701.6 is also 
authorized by 31 U.S.C. 3717. Section 701.31 is also authorized by 
12 U.S.C. 1601, et seq., 42 U.S.C. 1981 and 3601-3610. Section 
701.35 is also authorized by 12 U.S.C. 4311-4312.

    2. Section 701.1 is revised to read as follows:


Sec. 701.1  Federal credit union chartering, field of membership 
modifications, and conversions.

    National Credit Union Administration practice and procedure 
concerning chartering, field of membership modifications, and 
conversions are set forth in Interpretive Ruling and Policy Statement 
94-1 Chartering and Field of Membership Policy (IRPS 94-1) as amended 
by IRPS 96-1. Copies may be obtained by contacting NCUA at the address 
found in Sec. 792.2(g)(1) of this chapter. The combined IRPS are 
incorporated into this section.

(Approved by the Office of Management and Budget under control 
number 3133-0015.)

    Note: The text of Interpretive Ruling and Policy Statement (IRPS 
94-1, as amended by IRPS 96-1) does not appear in the Code of 
Federal Regulations.

[FR Doc. 97-2830 Filed 2-4-97; 8:45 am]
BILLING CODE 7535-01-P