[Federal Register Volume 62, Number 219 (Thursday, November 13, 1997)]
[Proposed Rules]
[Pages 60799-60807]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28586]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 792


The Freedom of Information Act and Privacy Act

AGENCY: National Credit Union Administration (NCUA).

ACTION: Proposed rule.

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SUMMARY: NCUA proposes to revise its regulations governing the 
disclosure of information pursuant to the Freedom of Information Act 
(FOIA) to reflect recent changes to FOIA brought about by the enactment 
of the Electronic Freedom of Information Act Amendments of 1996 (E-
FOIA). The proposed rule, among other things, sets forth new procedures 
NCUA will employ to implement provisions of E-FOIA, such as expedited 
treatment of requests and multi-track processing. The proposed rule 
also clarifies the information which must be included in FOIA requests 
so that NCUA can process them. Other proposed changes to the rule are 
designed to provide guidance to the public on how to obtain records 
contained in the files of the Office of Inspector General.

DATES: Comments must be submitted on or before January 12, 1998.

ADDRESSES: Comments should be directed to Becky Baker, Secretary of the 
Board. Mail or hand-deliver comments to: National Credit Union 
Administration, 1775 Duke Street, Alexandria, Virginia 22314-3428. Fax 
comments to (703) 518-6319. E-mail comments to <a href="/cdn-cgi/l/email-protection#4d2f222c3f29202c24210d232e382c632a223b"><span class="__cf_email__" data-cfemail="c8aaa7a9baaca5a9a1a488a6abbda9e6afa7be">[email protected]</span></a>. 
Please send comments by one method only.

FOR FURTHER INFORMATION CONTACT: Dianne Salva, Staff Attorney, or 
Sheila Albin, Associate General Counsel, (703) 518-6540.

SUPPLEMENTARY INFORMATION:

Background

    The Freedom of Information Act (FOIA) was enacted in 1966 to 
establish the right of any member of the public to obtain access to 
government information. FOIA was amended several times before 1996, 
when the Electronic Freedom of Information Act Amendments of 1996, Pub. 
L. 104-231, was enacted. E-FOIA has twin goals of making records 
contained in government files more easily accessible to the public and 
improving administration of FOIA programs in the agencies. In 
particular, Congress moved to amend the FOIA because it found that 
government agencies were increasingly using computers to conduct agency 
business and store valuable agency records and information. When the 
Senate passed FOIA in 1966, the government is reported to have had just 
1,826 computers in use. By 1994, in addition to the proliferation of 
individual personal computers used by government employees, the number 
of government computers had climbed to almost 35,000. In recognition of 
the vast amount of information the government maintains in electronic 
format, E-FOIA was designed to ensure continued public access to 
government information, including that maintained in electronic format.
    FOIA ensures that the public has access to government information 
by requiring agencies to disclose information in three ways. First, 
FOIA requires agencies to disclose basic information about agency 
structure and general rules of procedure within the agency by 
publication in the Federal Register. Second, FOIA requires agencies to 
make certain categories of records available for the public to inspect 
and copy. Many agencies have established public reading rooms to comply 
with this requirement. And, third, FOIA requires agencies to respond to 
individual requests for other specific agency records. Records must be 
released unless one or more of FOIA's nine statutory exemptions 
applies.
    Under E-FOIA, public access to ``reading room'' records, which are 
those records that must be made available for inspection and copying, 
will be enhanced in two ways. The categories of records which fall 
within the ``reading room'' provision of FOIA have been expanded. 
Previously, three categories of records were required to be made 
available for inspection and copying: Final opinions, including 
concurring and dissenting opinions, as well as orders, made in the 
adjudication of cases; statements of policy and interpretations which 
have been adopted by the agency and are not published in the Federal 
Register; and administrative staff manuals and instructions to staff 
that affect a member of the public. Under E-FOIA two new categories 
have been added: Records released under the FOIA after March 31, 1997, 
which the agency determines have become or are likely to become the 
subject of subsequent requests, and a general index of the new category 
of records.
    Public access to reading room records will be further enhanced by 
the provision in E-FOIA which requires that agencies make their reading 
room records available electronically, if they are created by the 
agency on or after November 1, 1996. The ``electronic reading room'' 
can be implemented by placing records on the internet.
    As for individual requests, E-FOIA clarifies that reasonable 
efforts must be made to search for records electronically. It also 
requires agencies to provide requesters with records in the form or 
format the requester chooses, if the agency can readily do so. Perhaps 
most fundamental to the new law is its provision that clarifies that 
records, if they meet other legal requirements, are subject to FOIA 
even though they are maintained in electronic format.
    The other goal of E-FOIA was to improve the administration of FOIA 
programs in the agencies. Congress found that due to a lack of 
resources, some agencies suffered stubborn

[[Page 60800]]

backlogs. E-FOIA is designed to ensure timely responses to FOIA 
requests by requiring that specific types of requests be answered on an 
expedited basis and by encouraging a dialogue between the agency and 
the requester to frame more targeted requests. E-FOIA also enlarges the 
time for response to requests from 10 to 20 business days. Agencies are 
encouraged to employ multi-track processing systems, so that requesters 
who seek simple information are not made to wait while the agency 
processes more complex requests or requests for voluminous material.

Proposal

    NCUA is proposing changes to 12 CFR part 792 to implement both 
expedited processing and multi-track processing. In addition, changes 
are proposed to incorporate the new processing deadlines, appeal rights 
and other disclosure procedures mandated by E-FOIA. NCUA is also 
proposing a change to reflect the delegation of authority from NCUA's 
Board to the Inspector General to grant or deny initial requests for 
records contained in Office of Inspector General files. Subpart A has 
been reorganized, streamlined and rewritten in question and answer 
format to improve its readability and simplify its use. A description 
of the more significant proposed changes is set forth below. Due to the 
fact that the regulation has been rewritten in question and answer 
format, the section numbers in the proposed rule in most cases do not 
correlate to the section numbers in the existing regulation.
    Section 792.02 now reflects the additional category of records NCUA 
will make publicly available for inspection and copying: Records 
released under FOIA after March 31, 1997, which the agency determines 
have become or are likely to become the subject of subsequent requests.
    Section 792.03 sets forth the indices of records made available for 
public inspection and copying and includes the additional index of 
popular FOIA responses.
    Section 792.04 informs the public that certain records created by 
NCUA after November 1, 1996 are also available on the NCUA website.
    Section 792.06 clarifies that records maintained in electronic 
format are subject to FOIA.
    Section 792.07 identifies the places within NCUA where the public 
may write to request records. The Office of Inspector General has been 
added to reflect that the NCUA Board delegated authority to the 
Inspector General to respond to initial FOIA requests for records 
contained in Office of Inspector General files.
    Sections 792.08 and 792.09 clarify administrative requirements and 
procedures for submitting FOIA requests. In order to improve 
communications between the agency and requesters, requesters are 
instructed to include their name, address and telephone number with 
their request. In recognition of the new requirement that agencies 
honor form or format requests, requesters are also asked to designate 
their form or format of choice, if other than paper copy, at the time 
they make their request.
    Section 792.10 sets forth the procedures for the multi-track 
processing system comprised of a fast-track and regular-track. Fast-
track processing will apply to records that are easily identifiable by 
NCUA staff and have been previously cleared for release to the public. 
Fast-track requests will be handled as expeditiously as possible in the 
order in which they are received. All information requests that do not 
meet the fast-track processing standards will be handled under regular 
processing procedures. A requester who desires fast-track processing, 
but whose request does not meet those standards, may contact the NCUA 
to try to narrow the scope of the request so that it will qualify for 
fast-track processing.
    Section 792.12 was added to inform requesters that, as long as it 
is technically feasible and would not harm an interest that a FOIA 
exemption is intended to protect, then NCUA will indicate where, why 
and how much information was withheld from its response.
    Section 792.13 was added to advise requesters that they may obtain 
information in any readily reproducible form or format they request. It 
also clarifies that only one copy of a record will be produced.
    Section 792.15 sets forth the new processing time limit of 20 
working days. It also sets forth the two exceptions to the 20 working 
day time limit: the suspension of time for the payment of fees or if 
unusual circumstances exist.
    Section 792.16 describes the criteria for determining whether 
unusual circumstances exist. The criteria have not changed. The 
proposed regulation contains a new provision on aggregating multiple 
requests which, together, cause unusual circumstances to exist. NCUA 
will now aggregate multiple requests from the same requester or group 
of requesters acting in concert, if it believes they constitute a 
single request, and if, taken together, the requests satisfy the 
unusual circumstances criteria. This section also contains a new 
provision advising requesters that, if NCUA sends them a notice 
extending the processing time due to unusual circumstances, it will 
also tell them that they may reduce the scope of their request so that 
it can be processed within the statutory time frame or agree to an 
alternative time frame.
    Section 792.18 has been added to implement the expedited processing 
provision of E-FOIA. It sets forth the criteria for a requester seeking 
to establish a compelling need to support a request for expedited 
processing. E-FOIA permits two categories of requests involving 
compelling needs to be granted expedited treatment: Those which entail 
an imminent threat to the life or physical safety of an individual or 
those which are filed by persons primarily engaged in disseminating 
information and involve an urgency to inform the public concerning 
actual or alleged government activity. For ease of administration and 
consistency, the proposed rule uses the term ``representative of the 
news media'' to describe a person primarily engaged in disseminating 
information, because the term has been used for many years in other 
provisions of the regulation and is familiar to the public and agency 
staff. In keeping with Congress' express intent that the specified 
criteria for compelling need be narrowly applied, expedited processing 
will only be granted in those extraordinary cases meeting the specific 
requirements of the regulation. H.R. Rep. 795, 104th Cong., 2d Sess. 26 
(1996). As the legislative history states, ``the expedited process 
procedure is intended to be limited to circumstances in which a delay 
in obtaining information can reasonably be foreseen to cause a 
significant adverse consequence to a recognized interest.'' Id. To meet 
the criterion of an urgency to inform the public concerning an actual 
or alleged Federal Government activity, the requester must show that a 
delay in the release of the information would compromise a significant 
recognized interest, and that the requested information pertains to a 
matter of current exigency to the American public. This section also 
informs the public of the right of appeal for denial of a request for 
expedited processing.
    Section 792.19 has been amended to reflect that the current fee 
schedule is available on the NCUA website. The current regulation sets 
out that searches for records responsive to a FOIA request will be 
conducted by computer using existing programming. The proposal strikes 
the reference to existing programming and adds language to say

[[Page 60801]]

that no modification of existing programming or system will be made if 
it would significantly interfere with the operation of an NCUA 
automated information system.
    Section 792.28 clarifies that appeals are permitted when NCUA 
denies a request for a fee waiver or reduction.

Regulatory Procedures

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires the NCUA to prepare an 
analysis to describe any significant economic impact any proposed 
regulation may have on a substantial number of small credit unions, 
meaning those under $1 million in assets. The NCUA Board 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. The proposal simplifies some of the procedures regarding the 
release of information and requires disclosure of information in 
certain instances in accordance with law. The disclosure requirements 
are imposed on the NCUA, therefore, they should not have a significant 
economic impact on a substantial number of small credit unions.

Paperwork Reduction Act Analysis

    These regulations, if adopted, will impose no additional 
information collection, reporting or record keeping requirements 
subject to the approval of the Office of Management and Budget pursuant 
to the Paperwork Reduction Act of 1995, 44 U.S.C. 3501, et seq.

Executive Order 12,612

    The NCUA Board certifies that the proposal will not have a 
substantial direct effect on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among various levels of government.

List of Subjects in 12 CFR Part 792

    Administrative practice and procedure, Confidential business 
information, Credit unions, Freedom of Information Act, Privacy.

    By the National Credit Union Administration Board on October 22, 
1997.
Hattie M. Ulan,
Acting Secretary of the Board.

    For the reasons set forth in the preamble, NCUA proposes to amend 
12 CFR part 792 as follows:

PART 792--[AMENDED]

    1. The authority citation for part 792 is revised to read as 
follows:

    Authority: 5 U.S.C. 301, 552, 552a, 552b; 12 U.S.C. 1752a(d), 
1766, 1789, 1795f; E.O. 12600, 52 FR 23781, 3 CFR, 1987 Comp., p. 
235; E.O. 12958, 60 FR 19825, 3 CFR, 1995 Comp., p.333.


Secs. 792.20-792.37  (Subpart B) [Redesignated as Secs. 792.52-792.69 
(Subpart E)]

    2. Redesignate subpart B (Secs. 792.20-792.37) as subpart E 
(Secs. 792.52-792.69) and reserve subpart B.
    3. Revise subpart A of part 792 to read as follows:

Subpart A--The Freedom of Information Act

General Purpose

Sec.
792.01  What is the purpose of this subpart?

Records Publicly Available

792.02  What records does NCUA make available to the public for 
inspection and copying?
792.03  How will I know which records to request?
792.04  How can I obtain these records?
792.05  What is the significance of records made available and 
indexed?

Records Available Upon Request

792.06  Can I obtain other records?
792.07  Where do I send my request?
792.08  What must I include in my request?
792.09  What if my request does not meet the requirements of this 
section?
792.10  What will NCUA do with my request?
792.11  What kind of records are exempt from public disclosure?
792.12  How will I know what records were determined to be exempt?
792.13  Can I get the records in different forms or formats?
792.14  Who is responsible for responding to my request?
792.15  How long will it take to process my request?
792.16  What unusual circumstances can delay NCUA's response?
792.17  What can I do if the time limit passes and I still have not 
received a response?

Expedited Processing

792.18  What if my request is urgent and I cannot wait for the 
records?

Fees

792.19  How does NCUA calculate the fees for processing my request?
792.20  What are the charges for each fee category?
792.21  Will NCUA provide a fee estimate?
792.22  What will NCUA charge for other services?
792.23  Can I avoid charges by sending multiple, small requests?
792.24  Can NCUA charge me interest if I fail to pay my bill?
792.25  Will NCUA charge me if the records are not found or are 
determined to be exempt?
792.26  Will I be asked to pay the fees in advance?

Fee Waiver or Reduction

792.27  Can fees be reduced or waived?

Appeals

792.28  What if I am not satisfied with the response I receive?

Submitter Notice

792.29  If I send NCUA confidential commercial information, can it 
be disclosed under FOIA?

Release of Exempt Records

792.30  Is there a prohibition against disclosure of exempt records?

[[Page 60802]]

792.31  Can exempt records be disclosed to credit unions, financial 
institutions and state or federal agencies?
792.32  Can exempt records be disclosed to investigatory agencies?

Subpart A--The Freedom of Information Act

General Purpose


Sec. 792.01  What is the purpose of this subpart?

    This subpart describes the procedures you must follow to obtain 
records from NCUA under the Freedom of Information Act (FOIA), (5 
U.S.C. 552).

Records Publicly Available


Sec. 792.02  What records does NCUA make available to the public for 
inspection and copying?

    Except for records that are exempt from public disclosure under 
FOIA as amended (5 U.S.C. 552) or are promptly published and copies are 
available for purchase, NCUA routinely makes the following five types 
of records available for you to inspect and copy:
    (a) Final opinions, including concurring and dissenting opinions, 
and orders made in the adjudication of cases;
    (b) Statements of policy and interpretations which have been 
adopted by the agency but not published in the Federal Register;
    (c) Administrative staff manuals and instructions to staff that 
affect a member of the public;
    (d) Copies of all records, regardless of form or format, which have 
been released after March 31, 1997, in response to a FOIA request and 
which, because of the nature of their subject matter, NCUA determines 
have been or are likely to become the subject of subsequent requests; 
and
    (e) Indices of the documents referred to in this paragraph.


Sec. 792.03  How will I know which records to request?

    NCUA maintains current indices providing identifying information 
for the public for any matter referred to in Sec. 792.02, issued, 
adopted, or promulgated after July 4, 1967. The listing of material in 
an index is for the convenience of possible users and does not 
constitute a determination that all of the items listed will be 
disclosed. NCUA has determined that publication of the indices is 
unnecessary and impractical. You may obtain copies of indices by making 
a request to the Office of Administration, at NCUA, 1775 Duke Street, 
Alexandria, VA 22314-2387 or, as indicated, on the NCUA website. The 
indices are available for public inspection and copying and are 
provided at their duplication cost. The indices are:
    (a) NCUA Publications List: Manuals relating to general and 
technical information, booklets published by NCUA, and the Credit Union 
Directory. The NCUA Publications list is available on the NCUA Website.
    (b) Directives Control Index: A list of statements of policy, NCUA 
Instructions, Bulletins, Letters to Credit Unions, and certain internal 
manuals.
    (c) Popular FOIA Index: Records released in response to a FOIA 
request, which NCUA determines are likely to be the subject of 
subsequent requests because of the nature of their subject matter. The 
Popular FOIA Index will be available on the NCUA website on or before 
December 31, 1999.


Sec. 792.04  How can I obtain these records?

    You may obtain these types of records or information in the 
following ways:
    (a) You may obtain copies of the records referenced in Sec. 792.02 
by obtaining the index referred to in Sec. 792.03 and following the 
ordering instructions it contains, or by making a request to the FOIA 
Officer, NCUA, Office of General Counsel at 1775 Duke Street, 
Alexandria, Virginia 22314-3428.
    (b) If they were created by NCUA on or after November 1, 1996, 
records referenced in Sec. 792.02 are available on the NCUA website, 
found at
http://www.ncua.gov.


Sec. 792.05  What is the significance of records made available and 
indexed?

    The records referred to in Sec. 792.02 may be relied on, used, or 
cited as precedent by NCUA against a party, provided:
    (a) The materials have been indexed and either made available or 
published; or
    (b) The party has actual and timely notice of the materials' 
contents.

Records Available Upon Request


Sec. 792.06  Can I obtain other records?

    Except with respect to records routinely made available under 
Sec. 792.02 or published in the Federal Register, or to the extent that 
records are exempt under the FOIA, if you make a request for records in 
accordance with this section, NCUA will make such records available to 
you, including records maintained in electronic format, as long as you 
agree to pay the actual, direct costs.


Sec. 792.07  Where do I send my request?

    (a) You must send your request to one of NCUA's Information 
Centers. The Central Office, Regional Offices, Office of Inspector 
General and the Asset Management and Assistance Center are designated 
as Information Centers for the NCUA. The Freedom of Information Officer 
of the Office of General Counsel is responsible for the operations of 
the Information Center maintained at the Central Office. The Regional 
Directors are responsible for the operation of the Information Centers 
in their Regional Offices. The Inspector General is responsible for the 
operation of the Office of Inspector General Information Center.
    (b) If you think that the records are located at one of NCUA's 
Regional Offices, then you should send your request to the appropriate 
Regional Director, whose address can be found in Sec. 790.2(c) of this 
chapter.
    (c) If you think that the records are located at the Asset 
Management and Assistance Center, then you should send your request to 
the President, Asset Management and Assistance Center, 4807 Spicewood 
Springs Road, Suite 5100, Austin, Texas 78759-8490.
    (d) If you think that the records you want are in the files of the 
Office of Inspector General, then you should send your request to the 
Inspector General, NCUA, 1775 Duke Street, Alexandria, Virginia 22314-
3428.
    (e) When you are not sure of the location of records, or if you 
think that the records you want are located in the Central Office, you 
should send your request to the Freedom of Information Officer at NCUA, 
Office of the General Counsel, 1775 Duke Street, Alexandria, Virginia 
22314-3428.


Sec. 792.08  What must I include in my request?

    Your request must include the following:
    (a) Your name, address and a telephone number where you can be 
reached during normal business hours.
    (b) A reasonable description of the records you seek. A reasonable 
description is one which enables an NCUA employee, who is familiar with 
the subject area of the request, to locate the record with a reasonable 
amount of effort.
    (c) A statement agreeing to pay all applicable fees or to pay fees 
up to a certain maximum amount, or requesting a fee reduction or waiver 
in accordance with Sec. 792.27. If the actual fees are expected to 
exceed the maximum amount you indicate in your request, NCUA will 
contact you to see if you are willing to pay the estimated fees. If you 
do not want to pay the estimated fees, your request will be closed and 
no bill will be sent.

[[Page 60803]]

    (d) If other than paper copy, you must identify the form and format 
of responsive information you are requesting.


Sec. 792.09  What if my request does not meet the requirements of this 
subpart?

    NCUA need not accept or process your request if it does not comply 
with the requirements of this subpart. NCUA may return such a request 
to you with an explanation of the deficiency. You may then submit a 
corrected request, which will be treated as a new request.


Sec. 792.10  What will NCUA do with my request?

    (a) On receipt of any request, the Information Center assigns it to 
the appropriate processing schedule, pursuant to paragraph (b) of this 
section. The date of receipt for any request, including one that is 
addressed incorrectly or that is referred to NCUA by another agency, is 
the date the appropriate Information Center actually receives the 
request.
    (b) NCUA has a multi-track processing system. Requests for records 
that are readily identifiable by the Information Center and have 
already been cleared for public release may qualify for fast-track 
processing. All other requests will be handled under normal processing 
procedures.
    (c) The Information Center will make the determination whether a 
request qualifies for fast-track processing. You may contact the 
Information Center to learn whether your request has been assigned to 
fast-track processing. If your request has not qualified for fast-track 
processing, you will be given an opportunity to limit the scope of 
material requested in order to qualify for fast-track processing. 
Limitations of requests must be in writing.
    (d) In accordance with sound administrative procedure, the 
Information Center will normally process requests in the order they are 
received in the separate processing tracks. However, in NCUA's 
discretion a particular request may be processed out of turn.
    (e) Upon a determination by the appropriate Information Center to 
comply with your initial request for records, the records will be made 
promptly available to you. If we notify you of a denial of your 
request, we will include the names and titles or positions of each 
person responsible for the denial.


Sec. 792.11  What kind of records are exempt from public disclosure?

    (a) All records of NCUA or any officer, employee, or agent thereof, 
are confidential, privileged and exempt from disclosure, except as 
otherwise provided in this part, if they are:
    (1) Records specifically authorized under criteria established by 
an Executive Order to be kept secret in the interest of national 
defense or foreign policy and are in fact properly classified pursuant 
to an Executive Order.
    (2) Records related solely to NCUA internal personnel rules and 
practices. This exemption applies to internal rules or instructions 
which must be kept confidential in order to assure effective 
performance of the functions and activities for which NCUA is 
responsible and which do not materially affect members of the public. 
This exemption also applies to manuals and instructions to the extent 
that release of the information contained therein would permit 
circumvention of laws or regulations.
    (3) Specifically exempted from disclosure by statute, where the 
statute either makes nondisclosure mandatory or establishes particular 
criteria for withholding information.
    (4) Records which contain trade secrets and commercial or financial 
information which relate to the business, personal or financial affairs 
of any person or organization, are furnished to NCUA, and are 
confidential or privileged. This exemption includes, but is not limited 
to, various types of confidential sales and cost statistics, trade 
secrets, and names of key customers and personnel. Assurances of 
confidentiality given by staff are not binding on NCUA.
    (5) Inter-agency or intra-agency memoranda or letters which would 
not be available by law to a private party in litigation with NCUA. 
This exemption preserves the existing freedom of NCUA officials and 
employees to engage in full and frank written or taped communications 
with each other and with officials and employees of other agencies. It 
includes, but is not limited to, inter-agency and intra-agency reports, 
memoranda, letters, correspondence, work papers, and minutes of 
meetings, as well as staff papers prepared for use within NCUA or in 
concert with other governmental agencies.
    (6) Personnel, medical, and similar files (including financial 
files), the disclosure of which without written permission would 
constitute a clearly unwarranted invasion of personal privacy. Files 
exempt from disclosure include, but are not limited to:
    (i) The personnel records of the NCUA;
    (ii) The personnel records voluntarily submitted by private parties 
in response to NCUA's requests for proposals; and
    (iii) Files containing reports, records or other material 
pertaining to individual cases in which disciplinary or other 
administrative action has been or may be taken.
    (7) Records or information compiled for law enforcement purposes, 
but only to the extent that the production of such law enforcement 
records or information:
    (i) Could reasonably be expected to interfere with enforcement 
proceedings;
    (ii) Would deprive a person of a right to a fair trial or an 
impartial adjudication;
    (iii) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy;
    (iv) Could reasonably be expected to disclose the identity of a 
confidential source, including a state, local, or foreign agency or 
authority or any private institution which furnished information on a 
confidential basis, and, in the case of a record or information 
compiled by a criminal law enforcement authority in the course of a 
criminal investigation on or by an agency conducting a lawful national 
security intelligence investigation, information furnished by the 
confidential source;
    (v) Would disclose techniques and procedures for law enforcement 
investigation or prosecutions, or would disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law; or
    (vi) Could reasonably be expected to endanger the life or physical 
safety of any individual. This includes, but is not limited to, 
information relating to enforcement proceedings upon which NCUA has 
acted or will act in the future.
    (8) Contained in or related to examination, operating or condition 
reports prepared by, or on behalf of, or for the use of NCUA or any 
agency responsible for the regulation or supervision of financial 
institutions. This includes all information, whether in formal or 
informal report form, the disclosure of which would harm the financial 
security of credit unions or would interfere with the relationship 
between NCUA and credit unions.
    (b) We will provide any reasonably segregable portion of a record 
that is requested after deleting those portions that are exempt from 
disclosure under this section.


Sec. 792.12  How will I know what records NCUA has determined to be 
exempt?

    As long as it is technically feasible and does not threaten an 
interest protected by the FOIA, we will:
    (a) Mark the place where we redacted information from documents 
released to

[[Page 60804]]

you and note the exemption that protects the information from public 
disclosure; or
    (b) Make reasonable efforts to include with our response to you an 
estimate of the volume of information withheld.


Sec. 792.13  Can I get the records in different forms or formats?

    NCUA will provide a copy of the record in any form or format 
requested, such as computer disk, if the record is readily reproducible 
by us in that form or format, but we will not provide more than one 
copy of any record.


Sec. 792.14  Who is responsible for responding to my request?

    The appropriate Regional Director, the Inspector General, the 
President of the Asset Management and Assistance Center, or the Freedom 
of Information Officer, or, in their absence, their designee, is 
responsible for making the initial determination on whether to grant or 
deny a request for information. This official may refer a request to an 
NCUA employee who is familiar with the subject area of the request. 
Other NCUA staff members may aid the official by providing information, 
advice, recommending a decision, or implementing a decision, but no 
NCUA employee other than an authorized official may make the initial 
determination. Referral of a request by the official to an employee 
will not affect the time limitation imposed in Sec. 792.15 unless the 
request involves an unusual circumstance as provided in Sec. 792.16.


Sec. 792.15  How long will it take to process my request?

    NCUA will respond to requests within 20 working days, except:
    (a) Where the running of such time is suspended for payment of fees 
pursuant to Sec. 792.26;
    (b) In unusual circumstances, as defined in 5 U.S.C. 552(a)(6)(B) 
and Sec. 792.16, the time limit may be extended for:
    (1) An additional 10 working days as provided by written notice to 
you, stating the reasons for the extension and the date on which a 
determination will be sent; or
    (2) Such alternative time period as mutually agreed by you and the 
Information Office, when NCUA notifies you that the request cannot be 
processed in the specified time limit.


Sec. 792.16  What unusual circumstances can delay NCUA's response?

    (a) In unusual circumstances, the time limits for responding to 
your request (or your appeal) may be extended by NCUA. If NCUA extends 
the time it will provide you with written notice, setting forth the 
reasons for such extension and the date on which a determination is 
expected to be dispatched. Our notice will not specify a date that 
would result in an extension for more than 10 working days, except as 
set forth in paragraph (c) of this section. The unusual circumstances 
that can delay NCUA's response to your request are:
    (1) The need to search for, and collect the requested records from 
field facilities or other establishments that are separate from the 
office processing the request;
    (2) The need to search for, collect, and appropriately examine a 
voluminous amount of separate and distinct records which are demanded 
in a single request; or
    (3) The need for consultation, which will be conducted with all 
practicable speed, with another agency having substantial interest in 
the determination of the request or among two or more components of 
NCUA having substantial subject-matter interest therein.
    (b) If you, or you and a group of others acting in concert, submit 
multiple requests which NCUA believes actually constitute a single 
request, which would otherwise satisfy the unusual circumstances 
criteria specified in this section, and the requests involve related 
matters, then NCUA may aggregate those requests and the provisions of 
Sec. 792.15(b) will apply.
    (c) If NCUA sends you an extension notice, it will also advise you 
that you can either limit the scope of your request so that it can be 
processed within the statutory time limit or agree to an alternative 
time frame for processing your request.


Sec. 792.17  What can I do if the time limit passes and I still have 
not received a response?

    You can file suit against NCUA because you will be deemed to have 
exhausted your administrative remedies if NCUA fails to comply with the 
time limit provisions of this subpart. But if NCUA can show that 
exceptional circumstances exist and that it is exercising due diligence 
in responding to your request, the court may retain jurisdiction and 
allow NCUA to complete its review of the records. In determining 
whether exceptional circumstances exist, the court will consider your 
refusal to reasonably modify the scope of your request or arrange an 
alternative time frame for processing after being given the opportunity 
to do so by NCUA, when it notifies you of the existence of unusual 
circumstances as set forth in Sec. 792.16.

Expedited Processing


Sec. 792.18  What if my request is urgent and I cannot wait for the 
records?

    You may request expedited processing of your request if you can 
show a compelling need for the records. In cases where your request for 
expedited processing is granted or if NCUA has determined to expedite 
the response, it will be processed as soon as practicable.
    (a) To demonstrate a compelling need for expedited processing, you 
must provide a certified statement. The statement, certified by you to 
be true and correct to the best of your knowledge and belief, must 
demonstrate that:
    (1) The failure to obtain the records on an expedited basis could 
reasonably be expected to pose an imminent threat to the life or 
physical safety of an individual; or
    (2) The requester is a representative of the news media, as defined 
in Sec. 792.20, and there is urgency to inform the public concerning 
actual or alleged NCUA activity.
    (b) In response to a request for expedited processing, the 
Information Center will notify you of the determination within ten days 
of receipt of the request. If the Information Center denies your 
request for expedited processing, you may file an appeal pursuant to 
the procedures set forth in Sec. 792.28, and NCUA will expeditiously 
respond to the appeal.
    (c) Priority of responses. The Information Center will normally 
process requests in the order they are received in the separate 
processing tracks. However, in NCUA's discretion, a particular request 
may be processed out of turn.

Fees


Sec. 792.19  How does NCUA calculate the fees for processing my 
request?

    We will charge fees that recoup the full allowable direct costs we 
incur, unless those costs are less than our cost of processing your 
remittance. Direct costs means those expenditures which NCUA actually 
incurs in searching for, duplicating and reviewing documents to respond 
to a FOIA request. Search means all time spent looking for material 
that is responsive to a request, including page-by-page or line-by-line 
identification of material within documents. Searches may be done 
manually or by computer. Search does not include modification of an 
existing program or system that would significantly interfere with the 
operation of an automated information system.

[[Page 60805]]

    Review means examining documents to determine whether any portion 
should be withheld and preparing documents for disclosure. Fees are 
subject to change as costs increase. The current rate schedule is 
available on our website at http://www.ncua.gov.
    We may contract with the private sector to locate, reproduce or 
disseminate records. In no case will NCUA contract out responsibilities 
which the FOIA requires us alone to discharge, such as determining the 
applicability of an exemption, or determining whether to waive or 
reduce fees. The following labor and duplication rate calculations 
apply:
    (a) NCUA will charge fees at the following rates for manual 
searches for and review of records:
    (1) If search/review is done by clerical staff, the hourly rate for 
CU-5, plus 16 percent of that rate to cover benefits;
    (2) If search/review is done by professional staff, the hourly rate 
for CU-13, plus 16 percent of that rate to cover benefits.
    (b) NCUA will charge fees at the hourly rate for CU-13, plus 16 
percent of that rate to cover benefits, plus the hourly cost of 
operating the computer for computer searches for records.
    (c) NCUA will charge the following duplication fees:
    (1) The per-page fee for paper copy reproduction of a document is 
$.25;
    (2) The fee for documents generated by computer is the hourly fee 
for the computer operator, plus the cost of materials (computer paper, 
tapes, labels, etc.);
    (3) If any other method of duplication is used, NCUA will charge 
the actual direct cost of duplication.


Sec. 792.20  What are the charges for each fee category?

    The fee category definitions are:
    (a) Commercial use request means a request from or on behalf of one 
who seeks information for a use or purpose that furthers the 
commercial, trade, or profit interests of the requester or the person 
on whose behalf the request is made.
    (b) Educational institution means a preschool, an elementary or 
secondary school, an institution of undergraduate higher education, an 
institution of graduate higher education, an institution of 
professional education, and an institution of vocational education 
operating a program or programs of scholarly research.
    (c) Noncommercial scientific institution means an institution that 
is not operated for a ``commercial'' purpose as that term is used in 
paragraph (a) of this section and is operated solely for the purpose of 
conducting scientific research, the results of which are not intended 
to promote any particular product or industry.
    (d) Representative of the news media means any person actively 
gathering news for an entity that is organized and operated to publish 
or broadcast news to the public.
    Included within the meaning of public is the credit union 
community. The term news means information that is about current events 
or that would be of current interest to the public. You may consult the 
following chart to find the fees applicable to your request:

------------------------------------------------------------------------
                                                        And you'll be   
    If your fee category is        You'll receive          charged      
------------------------------------------------------------------------
Commercial use.................  0 hours free       Search time.        
                                  search.           Review time.        
                                 0 hours free       Duplication.        
                                  review.                               
                                 0 free pages.....                      
Educational institution,         Unlimited free                         
 noncommercial scientific         search hours                          
 institution, newsmedia.         Unlimited free     Duplication.        
                                  review hours                          
                                 100 free pages...                      
All others.....................  2 hours free       Search time.        
                                  search.                               
                                 Unlimited free     Duplication.        
                                  review hours                          
                                 100 free pages...                      
------------------------------------------------------------------------

Sec. 792.21  Will NCUA provide a fee estimate?

    NCUA will notify you of the estimated amount if fees are likely to 
exceed $25, unless you have indicated in advance a willingness to pay 
fees as high as those anticipated. You will then have the opportunity 
to confer with NCUA personnel to reformulate the request to meet your 
needs at a lower cost.


Sec. 792.22  What will NCUA charge for other services?

    Complying with requests for special services is entirely at the 
discretion of NCUA. NCUA will recover the full costs of providing such 
services to the extent it elects to provide them.


Sec. 792.23  Can I avoid charges by sending multiple, small requests?

    You may not file multiple requests, each seeking portions of a 
document or similar documents, solely in order to avoid payment of 
fees. If this is done, NCUA may aggregate any such requests and charge 
you accordingly.


Sec. 792.24  Can NCUA charge me interest if I fail to pay my bill?

    NCUA can assess interest charges on an unpaid bill starting on the 
31st day following the date of the bill. If you fail to pay your bill 
within 30 days, interest will be at the rate prescribed in 31 U.S.C. 
3717, and will accrue from the date of the billing.


Sec. 792.25  Will NCUA charge me if the records are not found or are 
determined to be exempt?

    NCUA may assess fees for time spent searching and reviewing, even 
if it fails to locate the records or if records located are determined 
to be exempt from disclosure.


Sec. 792.26  Will I be asked to pay fees in advance?

    NCUA will require you to give an assurance of payment or an advance 
payment only when:
    (a) NCUA estimates or determines that allowable charges that you 
may be required to pay are likely to exceed $250. NCUA will notify you 
of the likely cost and obtain satisfactory assurance of full payment 
where you have a history of prompt payment of FOIA fees, or require an 
advance payment of an amount up to the full estimated charges in the 
case where you have no history of payment; or
    (b) You have previously failed to pay a fee charged in a timely 
fashion. NCUA may require you to pay the full amount owed, plus any 
applicable interest, or demonstrate that you have, in fact, paid the 
fee, and to make an advance payment of the full amount of the estimated 
fee before we begin to process a new request or a pending request from 
you.
    (c) If you are required to make an advance payment of fees, then 
the administrative time limits prescribed in Sec. 792.16 will begin 
only after NCUA has received the fee payments described.

[[Page 60806]]

Fee Waiver or Reduction


Sec. 792.27  Can fees be reduced or waived?

    You may request that NCUA waive or reduce fees if disclosure of the 
information you request is in the public interest because it is likely 
to contribute significantly to public understanding of the operations 
or activities of the government, and is not primarily in your 
commercial interest.
    (a) NCUA will make a determination of whether the public interest 
requirement above is met based on the following factors:
    (1) Whether the subject of the requested records concerns the 
operations or activities of the government;
    (2) Whether the disclosure is likely to contribute to an 
understanding of government operations or activities;
    (3) Whether disclosure of the requested information will contribute 
to public understanding; and
    (4) Whether the disclosure is likely to contribute significantly to 
public understanding of government operations or activities,
    (b) If the public interest requirement is met, NCUA will make a 
determination on the commercial interest requirement based upon the 
following factors:
    (1) Whether you have a commercial interest that would be furthered 
by the requested disclosure; and if so
    (2) Whether the magnitude of your commercial interest is 
sufficiently large in comparison with the public interest in 
disclosure, that disclosure is primarily in your commercial interest.
    (c) If the required public interest exists and your commercial 
interest is not primary in comparison, NCUA will waive or reduce fees.
    (d) If you are not satisfied with our determination on your fee 
waiver or reduction request, you may submit an appeal to the General 
Counsel in accordance with Sec. 792.28.

Appeals


Sec. 792.28  What if I am not satisfied with the response I receive?

    If you are not satisfied with NCUA's response to your request, you 
can file an administrative appeal. Your appeal must be in writing and 
must be filed within 30 days from receipt of the initial determination 
(in cases of denials of an entire request, or denial of a request for 
fee waiver or reduction), or from receipt of any records being made 
available pursuant to the initial determination (in cases of partial 
denials.) In its response to your initial request, the Freedom of 
Information Act Officer, Inspector General, President of the Asset 
Management and Assistance Center, or responsible Regional Director, (or 
designee,) will notify you that you may appeal any adverse 
determination to the Office of General Counsel. The General Counsel, or 
designee, as set forth in this paragraph, will:
    (a) Make a determination with respect to any appeal within 20 days 
(except Saturdays, Sundays, and legal public holidays) after the 
receipt of such appeal. If, on appeal, the denial of the request for 
records is, in whole or in part, upheld, the Office of General Counsel 
will notify you of the provisions for judicial review of that 
determination under FOIA. Where you do not address your request or 
appeal to the proper official, the time limitations stated above will 
be computed from the receipt of the request or appeal by the proper 
official.
    (b) The General Counsel is the official responsible for determining 
all appeals from initial determinations. In case of this person's 
absence, the appropriate officer acting in the General Counsel's stead 
will make the appellate determination, unless such officer was 
responsible for the initial determination, in which case the Vice-
Chairman of the NCUA Board will make the appellate determination.
    (c) All appeals should be addressed to the General Counsel in the 
Central Office and should be clearly identified as such on the envelope 
and in the letter of appeal by using the indicator ``FOIA-APPEAL.'' 
Failure to address an appeal properly may delay commencement of the 
time limitation stated in paragraph (a)(1) of this section, to take 
account of the time reasonably required to forward the appeal to the 
Office of General Counsel.


Sec. 792.29  If I send NCUA confidential commercial information can it 
be disclosed under FOIA?

    (a) If you submit confidential commercial information to NCUA , it 
may be disclosed in response to a FOIA request in accordance with this 
section.
    (b) For purposes of this section:
    (1) Confidential commercial information means commercial or 
financial information provided to NCUA by a submitter that arguably is 
protected from disclosure under Sec. 792.11(a)(4) because disclosure 
could reasonably be expected to cause substantial competitive harm.
    (2) Submitter means any person or entity who provides business 
information, directly or indirectly, to NCUA.
    (c) Submitters of business information must use good faith efforts 
to designate, by appropriate markings, either at the time of submission 
or at a reasonable time thereafter, those portions of their submissions 
deemed to be protected from disclosure under Sec. 792.11(a)(4). Such a 
designation shall expire ten years after the date of submission.
    (d) We will provide a submitter with written notice of a FOIA 
request or administrative appeal encompassing designated business 
information when:
    (1) The information has been designated in good faith by the 
submitter as confidential commercial information deemed protected from 
disclosure under Sec. 792.11(a)(4); or
    (2) NCUA has reason to believe that the information may be 
protected from disclosure under Sec. 792.11(a)(4).
    (e) A copy of the notice to the submitter will also be provided to 
the FOIA requester.
    (f) Through the notice described in paragraph (d) of this section, 
NCUA will afford the submitter a reasonable period of time within which 
to provide a detailed written statement of any objection to disclosure. 
The statement must describe why the information is confidential 
commercial information and why it should not be disclosed.
    (g) Whenever we decide that we must disclose confidential 
commercial information over the objection of the submitter, we will 
send both the submitter and the FOIA requester, within a reasonable 
number of days prior to the specified disclosure date, a written notice 
which will include:
    (1) A statement of the reasons for which the submitter's disclosure 
objection was not sustained; and
    (2) A description of the information to be disclosed; and
    (3) A specified disclosure date.
    (h) If a requester brings suit to compel disclosure of confidential 
commercial information, we will promptly notify the submitter.
    (i) The notice requirements of paragraph (d) of this section do not 
apply if:
    (1) We determine that the information should not be disclosed;
    (2) The information has been lawfully published or has been 
officially made available to the public;
    (3) Disclosure of the information is required by law; or
    (4) The designation made by the submitter in accordance with 
paragraph (c) of this section appears obviously frivolous; except that 
in such case, NCUA will provide the submitter with written notice of 
any final administrative decision to disclose the information within a 
reasonable number of days prior to the specified disclosure date.

[[Page 60807]]

Release of Exempt Information:


Sec. 792.30  Is there a prohibition against disclosure of exempt 
records?

    Except as provided in Secs. 792.31-792.32, and subpart C of this 
part, no officer, employee, or agent of NCUA or of any federally-
insured credit union shall disclose or permit the disclosure of any 
exempt records of NCUA to any person other than those NCUA or credit 
union officers, employees, or agents properly entitled to such 
information for the performance of their official duties.


Sec. 792.31  Can exempt records be disclosed to credit unions, 
financial institutions and state or federal agencies?

    The NCUA Board, in its sole discretion, or any person designated by 
it in writing, may make available to certain governmental agencies and 
insured financial institutions copies of reports of examination and 
other documents, papers or information for their use, when necessary, 
in the performance of their official duties or functions. All reports, 
documents and papers made available pursuant to this paragraph shall 
remain the property of NCUA. No person, agency or employee shall 
disclose the reports or exempt records without NCUA's express written 
authorization.


Sec. 792.32  Can exempt records be disclosed to investigatory agencies?

    The NCUA Board, or any person designated by it in writing, in its 
discretion and in appropriate circumstances, may disclose to proper 
federal or state authorities copies of exempt records pertaining to 
irregularities discovered in credit unions which may constitute either 
unsafe or unsound practices or violations of federal or state, civil or 
criminal law.

[FR Doc. 97-28586 Filed 11-12-97; 8:45 am]
BILLING CODE 7535-01-U


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