This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

6078 

Vol. 87, No. 23 

Thursday, February 3, 2022 

1Unless otherwise specified, the term ‘‘credit 

union’’ as used in this preamble refers to all 

federally insured credit unions, whether federally 

or state chartered. As noted in this preamble, the 

proposed regulatory amendments would apply only 

to FCUs; however, the Board’s intent in issuing the 

proposed rule is to encourage and strengthen 

succession planning for all federally insured credit 

unions. 

2 12 U.S.C. 1761b; 12 CFR 701.4, and Article VI, 

section 6 of the Federal Credit Union Bylaws 

codified in Appendix A of 12 CFR part 701. 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 701 

[NCUA–2022–0016] 

RIN 3133–AF42 

Succession Planning 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Proposed rule. 

SUMMARY: Through this proposed rule, 

the NCUA Board (Board) would require 

that Federal Credit Union (FCU) boards 

of directors establish and adhere to 

processes for succession planning. The 

succession plans will help to ensure 

that the credit union has plans to fill 

key positions, such as officers of the 

board, management officials, executive 

committee members, supervisory 

committee members, and (where 

provided for in the bylaws) the members 

of the credit committee to provide 

continuity of operations. In addition, 

the proposed rule would require 

directors to be knowledgeable about the 

FCU’s succession plan. Although the 

proposed rule would apply only to 

FCUs, the Board’s purpose is to 

encourage and strengthen succession 

planning for all credit unions. The 

proposed rule would provide FCUs with 

broad discretion in implementing the 

proposed regulatory requirements to 

minimize any burden. 

DATES: Comments must be received on 

or before April 4, 2022. 

ADDRESSES: You may submit comments, 

by any of the following methods (Please 

send comments by one method only): 

• Federal eRulemaking Portal: 

https://www.regulations.gov. The docket 

number for this proposed rule is NCUA– 

2021–NCUA–2022–0016 and is 

available at https://

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (703) 518–6319. Include 

‘‘[Your name] Comments on 

‘‘Succession Planning’’ in the 

transmittal. 

• Mail: Address to Melane ConyersAusbrooks, Secretary of the Board, 

National Credit Union Administration, 

1775 Duke Street, Alexandria, Virginia 

22314–3428. 

• Hand Delivery/Courier: Same as 

mail address. 

Public inspection: All public 

comments are available on the Federal 

eRulemaking Portal at: https://

www.regulations.gov as submitted, 

except as may not be possible for 

technical reasons. Public comments will 

not be edited to remove any identifying 

or contact information. 

Due to social distancing measures in 

effect, the usual opportunity to inspect 

paper copies of comments in the 

NCUA’s law library is not currently 

available. After social distancing 

measures are relaxed, visitors may make 

an appointment to review paper copies 

by calling (703) 518–6540 or emailing 

OGCMail@ncua.gov. 

FOR FURTHER INFORMATION CONTACT: 

Ariel Pereira, Senior Staff Attorney, 

Office of General Counsel, at (703) 548– 

2778; or by mail at National Credit 

Union Administration, 1775 Duke 

Street, Alexandria, Virginia 22314. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Background 

A. Succession Planning 

B. Increased Relevance of Succession 

Planning 

II. Legal Authority 

III. This Proposed Rule 

A. Applicability of Proposed Rule 

B. Proposed Regulatory Amendments 

C. Current Succession Planning Efforts 

D. Minimizing Burden 

E. Questions for Comment 

IV. Regulatory Procedures 

A. Regulatory Flexibility Act 

B. Paperwork Reduction Act 

C. Executive Order 13132 on Federalism 

D. Assessment of Federal Regulations and 

Policies on Families 

I. Background 

A. Succession Planning 

Board members play a key role in a 

credit union’s success.1 The Federal 

Credit Union Act (FCU Act) vests the 

general direction and control of an FCU 

to its board.2 Credit union boards are 

faced with a multitude of complicated 

challenges, such as meeting evolving 

member needs, fostering employee 

loyalty and trust, retaining and 

developing necessary skills, and 

keeping pace with technological and 

industry changes. Among this list of 

issues, succession planning is one of the 

most critical. 

Succession planning is the process 

through which an organization helps 

identify, develop, and retain key 

personnel to ensure its viability and 

continued effective performance. It also 

allows an organization to prepare for the 

unexpected, including the sudden 

departure of key staff. Succession 

planning is recognized as vital to the 

success of any institution, including 

credit unions. One of the variables over 

which a credit union board has control 

is the hiring of the organization’s senior 

management. A board’s failure to plan 

for the transition of its management 

could potentially come with high costs, 

including the potential for the 

unplanned merger of the credit union 

upon the departure of key personnel. 

Conversely, good succession planning 

confers a variety of benefits, including: 

• Minimizing service disruptions 

during management transitions; 

• Ensuring organizational viability 

over the long term; 

• Clarifying the employee 

development path; 

• Developing current talent; 

• Creating opportunities for 

employees; and 

• Bringing in new ideas from outside 

hires. 

Succession planning is a critical 

component of a credit union’s overall 

strategic plan. It ensures that the 

appropriate personnel are available to 

execute the credit union’s strategic plan 

and mission. As noted, the goal of 

succession planning is to build and/or 

identify a pool of qualified individuals 

who can be recruited or selected to fill 

a vacancy in a key position. To be 

successful, succession planning should 

be an ongoing and iterative process, not 

a one-time event. 


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3NCUA, Financial Trends in Federally Insured 

Credit Unions Q3, page iii, available at: https://

www.ncua.gov/files/publications/analysis/ 

quarterly-data-summary-2021-Q3.pdf. 

4 Id. 

5 Id. 

6NCUA, Truth in Mergers: A Guide for Merging 

Credit Unions, page 9, available at: https://

www.ncua.gov/files/publications/Truth-InMergers.pdf. 

7 12 U.S.C. 1759(d)(1). 

8 12 U.S.C. 1759(f). 

9Russell Heimlich, Baby Boomers Retire, Pew 

Research Center (December 20, 2010) https://

www.pewresearch.org/fact-tank/2010/12/29/babyboomers-retire/. 

10 Id. 

11Richard Fry, The Pace of Boomer Retirements 

Has Accelerated in the Past Year, Pew Research 

Center (November 9, 2020) https://

www.pewresearch.org/fact-tank/2020/11/09/thepace-of-boomer-retirements-has-accelerated-in-thepast-year/. 

12CUtoday.info, CUNA ACUC Coverage: What’s 

Happening in Executive Compensation (June 19, 

2019) https://www.cutoday.info/Fresh-Today/ 

CUNA-ACUC-Coverage-What-s-Happening-inExecutive-Compensation. 

13 12 U.S.C. 1716b. 

14 12 U.S.C. 1752–1775. 

15 12 U.S.C. 1766(a). 

16 12 U.S.C. 1787(b)(1). 

17 12 U.S.C. 1789(a)(11). 

B. Increased Relevance of Succession 

Planning 

Several factors have contributed to 

increase the relevance of succession 

planning for credit union boards. First, 

there has been a decline in the number 

of credit unions mainly resulting from 

the long-running trend of consolidation 

across all depository institutions. This 

trend has remained relatively constant 

across all economic cycles for more than 

three decades. 

During the third quarter of 2021, the 

number of FICUs increased in every 

asset category tracked by the NCUA, 

except for those with less than $50 

million in assets.3 The number of FICUs 

with assets of at least $10 million but 

less than $50 million declined to 1,467 

in the third quarter of 2021 from 1,561 

in the third quarter of 2020 (a decline 

of 94 credit unions).4 The decline in the 

number of FICUs with less than $10 

million in assets was even greater. The 

number of FICUs with less than $10 

million in assets declined to 1,068 in 

the third quarter of 2021 from 1,199 in 

the third quarter of 2020 (a decline of 

131 credit unions).5 The available data 

does not differentiate between those 

smaller credit unions that consolidated 

or were liquidated, versus those that 

expanded into a larger asset category. 

However, the decrease in the total 

number of FICUs with less than $50 

million in assets (especially those with 

assets of less than $10 million), 

combined with the ongoing industry 

trend of consolidation, suggests that 

mergers may be more prevalent among 

smaller credit unions. 

One of the reasons for the 

consolidation is the lack of succession 

planning. An NCUA analysis found that 

poor management succession planning 

was either a primary or secondary 

reason for almost a third (32 percent) of 

credit union consolidations.6

The FCU Act contains provisions that 

disfavor consolidation, implying a 

presumption that the public is better 

served with a greater number of credit 

unions. For example, the statute 

imposes added limitations on the 

addition of larger groups to multiple 

common-bond credit unions, prompting 

the Board to consider the feasibility of 

formation of a separate credit union.7

Further, the FCU Act provides that the 

Board shall ‘‘encourage the formation of 

separately chartered credit unions 

instead of approving an application to 

include an additional group within the 

field of membership of an existing credit 

union whenever practicable and 

consistent with reasonable standards for 

the safe and sound operation of the 

credit union.’’ 8

Another reason for a heightened focus 

on succession planning is the ongoing 

retirements of the so-called ‘‘Baby 

Boomer’’ generation (individuals born 

between 1946 and 1964). These 

individuals comprise more than a 

quarter of the total population of the 

United States.9 Each day, commencing 

in 2011 (when the oldest members of 

the generation turned 65) and 

continuing until 2030, approximately 

10,000 Baby Boomers will turn age 65.10

The COVID–19 pandemic has 

accelerated the pace of retirements 

among this generational cohort.11 These 

retirements include credit union board 

members and executives. According to 

some sources, approximately 10 percent 

of credit union chief executive officers 

were expected to retire between 2019 

and 2021.12 Succession planning is 

critical to the continued operation of 

those credit unions with board members 

and executives that are part of this 

retirement wave. 

II. Legal Authority 

The Board is issuing this proposed 

rule pursuant to its authority under the 

FCU Act. The proposed rule would 

establish succession planning 

requirements for an FCU. Section 113 of 

the FCU Act provides that the board of 

directors shall have the general 

direction and control of the affairs of the 

FCU.13 The board of directors must 

oversee the credit union’s operations to 

ensure the credit union operates in a 

safe and sound manner. For example, 

the board must be kept informed about 

the credit union’s operating 

environment, hire and retain competent 

management, and ensure that the credit 

union has a risk management structure 

and process suitable for the credit 

union’s size and activities. 

Further, under the FCU Act, the 

NCUA is the chartering and supervisory 

authority for FCUs and the Federal 

supervisory authority for FICUs.14 The 

FCU Act grants the NCUA a broad 

mandate to issue regulations governing 

both FCUs and all FICUs. Section 120 of 

the FCU Act is a general grant of 

regulatory authority and authorizes the 

Board to prescribe rules and regulations 

for the administration of the FCU Act.15

Section 207 of the FCU Act is a specific 

grant of authority over share insurance 

coverage, conservatorships, and 

liquidations.16 Section 209 of the FCU 

Act is a plenary grant of regulatory 

authority to the Board to issue rules and 

regulations necessary or appropriate to 

carry out its role as share insurer for all 

FICUs.17 Accordingly, the FCU Act 

grants the Board broad rulemaking 

authority to ensure that the credit union 

industry and the NCUSIF remain safe 

and sound. 

III. This Proposed Rule 

A. Applicability of Proposed Rule 

As described in more detail in the 

following discussion, the proposed 

regulatory amendments would apply 

solely to FCUs. FISCUs must comply 

with any state-specific requirements 

pertaining to succession planning. 

However, the Board encourages FISCU 

boards, to the extent compatible with 

state law, to undertake succession 

planning efforts to help ensure 

continued viability of their credit union. 

In addition, the proposed rule would 

not amend the regulations in 12 CFR 

part 704, which establishes 

requirements applicable to federally 

insured corporate credit unions, since 

the Board believes these regulations 

already adequately address succession 

planning. For example, § 704.13(c)(1) 

requires that the board must ensure that 

‘‘[s]enior managers . . . are capable of 

identifying, hiring, and retaining 

qualified staff.’’ Further, paragraph 

(c)(2) of the section requires that the 

board also ensure that ‘‘[q]ualified 

personnel are employed or under 

contract for all line support and audit 

areas, and designated back-up personnel 

or resources with adequate crosstraining are in place.’’ The Board 

welcomes public comment on whether 

changes to the wording of § 704.13 are 

necessary to effectuate the purposes of 

the proposed regulatory amendments. 


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18Supra, note 6. 

19 12 U.S.C. 1761. 

20See e.g., Federal Reserve Board, Supervisory 

Guidance on Board of Directors’ Effectiveness (Feb. 

26, 2021); also the guidelines of the Office of the 

Comptroller of the Currency (OCC) at 12 CFR part 

30, Appendix D, captioned ‘‘OCC Guidelines 

Establishing Heightened Standards for Certain 

Large Insured National Banks, Insured Federal 

Savings Associations, and Insured Federal 

Branches.’’ 

21NCUA, Succession Planning (2021), https://

ncua.csod.com/LMS/catalog/Welcome.aspx?tab_

page_id=-67&tab_id=221000382. 

22 84 FR 53278 (Oct. 4, 2019). 

23 Id. at 53301. 24Supra, note 21. 

The proposed rule applies to all 

FCUs, irrespective of asset size. 

However, as discussed above, smaller 

credit unions may be more susceptible 

to consolidation. Further, data 

demonstrates that the lack of succession 

planning is a major cause of credit 

union mergers.18 Accordingly, smaller 

credit unions may be the most likely to 

benefit from the proposed rule. The 

Board specifically invites comment from 

smaller credit unions on the proposed 

regulatory amendments, as well as other 

suggestions, to improve credit union 

succession planning. 

B. Proposed Regulatory Amendments 

The proposed rule would amend 

§ 701.4, which sets forth the general 

duties and responsibilities of FCU 

directors. The proposal would add a 

new paragraph (e) requiring that FCU 

directors must establish and adhere to 

processes for succession planning for 

key positions. In specifying the officials 

covered by the succession plan, the 

Board has relied on the language of the 

FCU Act, which provides that ‘‘[t]he 

management of a Federal credit union 

shall be by a board of directors, a 

supervisory committee, and where the 

bylaws so provide, a credit 

committee.’’ 19 The FCU bylaws codified 

in Appendix A of 12 CFR part 701 

expand the list of senior FCU executives 

to include the members of an executive 

committee and management officials. 

The board of directors or an 

appropriate committee of the board 

would be required to review and 

approve a written succession plan 

regarding the specified FCU executives 

and officials. The succession plan must, 

at a minimum, identify the credit 

union’s key positions, necessary 

competencies and skill sets for those 

positions, and strategies to identify 

alternatives to fill vacancies. The board 

of directors must review the succession 

plan in accordance with a schedule 

established by the board, but no less 

than annually. 

In addition, the proposed rule would 

amend § 701.4(b)(3), which sets forth 

certain education requirements for FCU 

directors, to require that directors have 

a working familiarity with the FCU’s 

succession plan. In making this change, 

the Board also proposes to reorganize 

the current contents of paragraph (b)(3) 

for clarity and grammar. No substantive 

changes are proposed to the current 

requirements of § 701.4(b)(3). 

C. Current Succession Planning Efforts 

This proposed rule is intended to 

strengthen current succession planning 

efforts being taken by credit unions, and 

to require others that have not yet done 

so to commence their succession 

planning process. The proposed rule is 

also consistent with the guidance issued 

by the other banking agencies to address 

succession planning.20

The Board is aware that many credit 

unions have already adopted succession 

planning strategies and models. The 

NCUA offers training and other 

resources to aid credit unions in 

developing their succession plans. For 

example, the NCUA has posted a video 

series on succession planning on the 

internet.21 In addition, the Board’s 2019 

final rule on FCU bylaws promoted 

succession planning efforts by providing 

guidance to FCUs on associate director 

positions.22 The proposed rule clarified, 

through staff commentary, that these 

positions may be thought of as 

apprenticeships in which the incumbent 

receives training and knowledge about 

the business of the board, with the 

expectation that the experience will 

prepare the individual for an eventual 

election to a director position.23

D. Minimizing Burden 

In designing this proposed rule, the 

Board has endeavored to minimize the 

burden on FCUs, especially small FCUs. 

The proposed regulatory amendments 

provide FCUs with broad discretion in 

how to implement the new 

requirements. For example, while the 

proposed rule would require succession 

plans to include certain mandatory 

elements, the rule neither specifies how 

the topics should be addressed nor does 

it otherwise prescribe the contents of 

the succession plans. Similarly, the 

proposal would require that directors 

have a working familiarity with the 

FCU’s succession plan but does not 

mandate the contents of training to meet 

this requirement. 

The expectation is for credit unions to 

develop a plan and provide training that 

is consistent with the size and 

complexity of the credit union. 

Therefore, smaller credit unions are 

more likely to have a simple succession 

plan that only addresses a few key 

leadership positions. The Board 

envisions that the examination program 

would confirm the existence of a 

succession plan and training. The 

examination program will defer to a 

credit union’s self-assessment of its 

succession planning needs and the 

information contained in the plan, so 

long as its plan addresses the elements 

required by the rule. 

Further, the Board envisions that, as 

a result of other planning and 

documentation efforts, many FCUs 

already have the necessary data and 

information to complete their 

succession plans. Rather than 

undertaking new analysis specifically 

for the succession plan, FCUs are 

encouraged to use already existing 

information in preparing their plans. 

For example, under the NCUA 

guidelines codified in 12 CFR part 749, 

Appendix B, all federally insured credit 

unions are encouraged to develop a 

program to prepare for a catastrophic 

act. The codified guidelines suggest that 

the program address several elements 

that are also relevant to succession 

planning. These suggested elements 

include a ‘‘business impact analysis to 

evaluate potential threats,’’ the 

determination of ‘‘critical systems and 

necessary resources,’’ and the 

identification of the ‘‘[p]ersons with 

authority to enact the plan.’’ 

The Board is committed to assisting 

credit unions in implementing their 

succession plans. For example, the 

NCUA has posted online training on 

succession planning through its 

Learning Management System.24 In 

addition, credit union trade associations 

may also provide training and have 

guidance available to assist credit 

unions in the development of their 

succession plan process. Credit unions 

with low-income designation may be 

able to apply for technical assistance 

grants to support succession planning or 

offset training costs through the 

Community Development Revolving 

Loan Fund. Credit unions are 

encouraged to make use of these and 

other available resources in complying 

with the proposed rule. The NCUA will 

develop additional guidance, as it 

deems necessary, to aid credit union 

succession planning efforts. 

E. Questions for Comment 

The Board welcomes comments on all 

aspects of this proposed rule. It is 

especially interested in comments 

addressing ways the NCUA may better 

support succession planning in small 


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25See, https://www.ncua.gov/regulationsupervision/rules-regulations/regulatory-review. 

26 5 U.S.C. 603(a). 

27 80 FR 57512 (Sept. 24, 2015). 

28 44 U.S.C. 3501–3520. 

29Executive Order 13132 on Federalism, was 

signed by former President Clinton on August 4, 

1999, and subsequently published in the Federal 

Register on August 10, 1999 (64 FR 43255). 30Public Law 105–277, 112 Stat. 2681 (1998). 

credit unions and suggestions on ways 

the final rule might minimize burden. In 

particular, the Board requests public 

input on the following questions: 

1. What do you believe will be the 

quantified burden imposed by the rule, 

be it in hours, dollars, or effort? 

2. It is anticipated that most FCUs 

already possess the information needed 

to comply with the proposed rule, and 

thus that most FCU will not have to 

create any new documentation as a 

result of the rule. Do you agree with this 

view? Why or why not? 

3. As noted, the Board anticipates that 

the examination program will establish 

an FCU’s compliance with the proposed 

rule by confirming the existence of a 

succession plan and training. Do you 

have any other suggested methods of 

establishing compliance? 

4. This preamble provides that 

smaller credit unions with less than $10 

million in assets will be the primary 

beneficiaries of the proposed rule. What 

benefits do you think smaller credit 

unions will receive from the Board’s 

adoption of this proposed rule? 

5. What benefits do you anticipate 

larger FCUs will receive from adoption 

of the proposed rule? For purposes of 

this question, ‘‘larger FCUs’’ may 

include FCUs with more than $10 

million in assets or FCUs in another 

higher asset category. 

6. What benefits do you anticipate 

members will receive from the adoption 

of the proposed rule? 

7. What impact do you believe this 

rule will have on credit union 

consolidations? 

8. The NCUA believes that the 

proposed rule will result in benefits for 

the National Credit Union Share 

Insurance Fund, to the overall safety 

and soundness of the credit union 

system, and to FCU members. If the rule 

is adopted as is, what would you 

suggest the NCUA do to test the 

assumption above? 

9. The NCUA reviews all of its 

existing regulations every three years. 

The NCUA’s Office of General Counsel 

maintains a rolling review schedule that 

identifies one-third of the NCUA’s 

existing regulations for review each year 

and provides notice to the public of 

those regulations under review so the 

public may have an opportunity to 

comment.25 In addition, should the 

NCUA commit to revisiting this rule 

within a specific period, say after 7 

years, at which time the rule would 

either be rescinded or approved by the 

Board for renewal? The Board might 

also choose, at that time to renew the 

rule but with some revisions. 

IV. Regulatory Procedures 

A. Regulatory Flexibility Act 

The Regulatory Flexibility Act 

requires the NCUA to prepare an 

analysis to describe any significant 

economic impact a regulation may have 

on a substantial number of small 

entities.26 For purposes of this analysis, 

the NCUA considers small credit unions 

to be those having under $100 million 

in assets.27 The Board fully considered 

the potential economic impacts of the 

proposed succession planning 

requirements on small credit unions 

during the development of the proposed 

rule. As noted in the preamble, the 

proposed rule would provide FCUs with 

discretion in how to implement the new 

regulatory requirements. For example, 

the rule does not specify how specific 

succession plan topics should be 

addressed. Similarly, the proposal does 

not mandate the contents of succession 

plan training. Accordingly, the NCUA 

certifies that it would not have a 

significant economic impact on a 

substantial number of small credit 

unions. 

B. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(PRA) applies to rulemakings in which 

an agency by rule creates a new 

paperwork burden on regulated entities 

or amends an existing burden.28 For 

purposes of the PRA, a paperwork 

burden may take the form of a reporting, 

disclosure, or recordkeeping 

requirement, each referred to as an 

information collection. The proposed 

changes to part 701 would establish new 

information collections in the form of 

succession policies, plans, and related 

trainings. These revisions will be 

addressed in a separate Federal Register 

notice and will be submitted for 

approval by the Office of Information 

and Regulatory Affairs at the Office of 

Management and Budget. 

C. Executive Order 13132 on Federalism 

Executive Order 13132 29 encourages 

independent regulatory agencies to 

consider the impact of their actions on 

state and local interests. The NCUA, an 

independent regulatory agency, as 

defined in 44 U.S.C. 3502(5), voluntarily 

complies with the executive order to 

adhere to fundamental federalism 

principles. The proposed rule would not 

have substantial direct effects on the 

states, on the relationship between the 

national government and the states, or 

on the distribution of power and 

responsibilities among the various 

levels of government. The Board has 

therefore determined that this rule does 

not constitute a policy that has 

federalism implications for purposes of 

the executive order. 

D. Assessment of Federal Regulations 

and Policies on Families 

The NCUA has determined that this 

proposed rule would not affect family 

well-being within the meaning of 

Section 654 of the Treasury and General 

Government Appropriations Act, 

1999.30

List of Subjects in 12 CFR Part 701 

Advertising, Aged, Civil rights, Credit, 

Credit unions, Fair housing, Individuals 

with disabilities, Insurance, Marital 

status discrimination, Mortgages, 

Religious discrimination, Reporting and 

recordkeeping requirements, Sex 

discrimination, Signs and symbols, 

Surety bonds. 

By the National Credit Union 

Administration Board on January 27, 2022. 

Melane Conyers-Ausbrooks, 

Secretary of the Board. 

For the reasons stated in the 

preamble, the NCUA proposes to amend 

12 CFR part 701, as follows: 

PART 701—ORGANIZATION AND 

OPERATION OF FEDERAL CREDIT 

UNION 

■ 1. The authority for part 701 

continues to read as follows: 

Authority: 12 U.S.C. 1752(5), 1755, 1756, 

1757, 1758, 1759, 1761a, 1761b, 1766, 1767, 

1782, 1784, 1785, 1786, 1787, 1789. Section 

701.6 is also authorized by 15 U.S.C. 3717. 

Section 701.31 is also authorized by 15 

U.S.C. 1601 et seq.; 42 U.S.C. 1981 and 3601– 

3610. Section 701.35 is also authorized by 42 

U.S.C. 4311–4312. 

■ 2. Amend § 701.4 by: 

■ a. Revising paragraph (b)(3). 

■ b. Adding paragraph (e). 

The addition and revision to read as 

follows: 

§ 701.4 General authorities and duties of 

Federal credit union directors. 

* * * * * 

(b) * * * 

(3) At the time of election or 

appointment, or within a reasonable 

time thereafter, not to exceed six 

months, have at least a working 


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6082 Federal Register / Vol. 87, No. 23 / Thursday, February 3, 2022 / Proposed Rules 

familiarity with, and to ask, as 

appropriate, substantive questions of 

management and the internal and 

external auditors of: 

(i) Basic finance and accounting 

practices, including the ability to read 

and understand the Federal credit 

union’s balance sheet and income 

statement; and 

(ii) The Federal credit union’s 

succession plan established pursuant to 

paragraph (e) of this section. 

* * * * * 

(e) Succession planning. (1) General. 

A Federal credit union board of 

directors must establish a process to 

ensure proper succession planning to 

include officers of the board, 

management officials, executive 

committee members, supervisory 

committee members, and (where 

provided for in the bylaws) the members 

of the credit committee, as described in 

Appendix A. 

(2) Board responsibilities. The board 

of directors or an appropriate committee 

of the board must: 

(i) Approve a written succession plan 

that covers the individuals described in 

paragraph (e)(1) of this section; and 

(ii) Review, and update as deemed 

necessary, the succession plan and 

policy in accordance with a schedule 

established by the board of directors, 

but no less than annually. 

(3) Succession plan contents. The 

succession plan must, at a minimum, 

identify key positions covered by the 

plan, necessary general competencies 

and skills for those positions, and 

strategies to identify alternatives to fill 

vacancies. 

[FR Doc. 2022–02038 Filed 2–2–22; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2022–0085; Project 

Identifier MCAI–2021–00498–T] 

RIN 2120–AA64 

Airworthiness Directives; Bombardier, 

Inc., Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to adopt a 

new airworthiness directive (AD) for 

certain Bombardier, Inc., Model BD– 

700–1A10 and BD–700–1A11 airplanes. 

This proposed AD was prompted by 

reports of oxygen leaks caused by 

cracked, brittle, or broken oxygen hoses 

that were found during scheduled 

maintenance tests of the airplane 

oxygen system. This proposed AD 

would require an inspection of the 

oxygen hose assembly to determine if an 

affected part number is installed, and 

replacement of affected oxygen hoses. 

For certain airplanes, this proposed AD 

would allow repetitive testing of the 

oxygen system until affected hoses are 

replaced. This proposed AD would also 

prohibit installation of an affected 

oxygen hose. The FAA is proposing this 

AD to address the unsafe condition on 

these products. 

DATES: The FAA must receive comments 

on this proposed AD by March 21, 2022. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

https://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

For service information identified in 

this NPRM, contact Bombardier 

Business Aircraft Customer Response 

Center, 400 Coˆte-Vertu Road West, 

Dorval, Que ́bec H4S 1Y9, Canada; 

telephone 514–855–2999; email ac.yul@

aero.bombardier.com; internet https://

www.bombardier.com. You may view 

this service information at the FAA, 

Airworthiness Products Section, 

Operational Safety Branch, 2200 South 

216th St., Des Moines, WA. For 

information on the availability of this 

material at the FAA, call 206–231–3195. 

Examining the AD Docket 

You may examine the AD docket at 

https://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2022–0085; or in person at Docket 

Operations between 9 a.m. and 5 p.m., 

Monday through Friday, except Federal 

holidays. The AD docket contains this 

NPRM, any comments received, and 

other information. The street address for 

Docket Operations is listed above. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth Dowling, Aerospace Engineer, 

Mechanical Systems and Administrative 

Services Section, FAA, New York ACO 

Branch, 1600 Stewart Avenue, Suite 

410, Westbury, NY 11590; telephone 

516–228–7300; fax 516–794–5531; email 

9-avs-nyaco-cos@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

The FAA invites you to send any 

written relevant data, views, or 

arguments about this proposal. Send 

your comments to an address listed 

under ADDRESSES. Include ‘‘Docket No. 

FAA–2022–0085; Project Identifier 

MCAI–2021–00498–T’’ at the beginning 

of your comments. The most helpful 

comments reference a specific portion of 

the proposal, explain the reason for any 

recommended change, and include 

supporting data. The FAA will consider 

all comments received by the closing 

date and may amend the proposal 

because of those comments. 

Except for Confidential Business 

Information (CBI) as described in the 

following paragraph, and other 

information as described in 14 CFR 

11.35, the FAA will post all comments 

received, without change, to https://

www.regulations.gov, including any 

personal information you provide. The 

agency will also post a report 

summarizing each substantive verbal 

contact received about this NPRM. 

Confidential Business Information 

CBI is commercial or financial 

information that is both customarily and 

actually treated as private by its owner. 

Under the Freedom of Information Act 

(FOIA) (5 U.S.C. 552), CBI is exempt 

from public disclosure. If your 

comments responsive to this NPRM 

contain commercial or financial 

information that is customarily treated 

as private, that you actually treat as 

private, and that is relevant or 

responsive to this NPRM, it is important 

that you clearly designate the submitted 

comments as CBI. Please mark each 

page of your submission containing CBI 

as ‘‘PROPIN.’’ The FAA will treat such 

marked submissions as confidential 

under the FOIA, and they will not be 

placed in the public docket of this 

NPRM. Submissions containing CBI 

should be sent to Elizabeth Dowling, 

Aerospace Engineer, Mechanical 

Systems and Administrative Services 

Section, FAA, New York ACO Branch, 

1600 Stewart Avenue, Suite 410, 

Westbury, NY 11590; telephone 516– 

228–7300; fax 516–794–5531; email 9- 

avs-nyaco-cos@faa.gov. Any 

commentary that the FAA receives 

which is not specifically designated as 

CBI will be placed in the public docket 

for this rulemaking. 

Background 

Transport Canada Civil Aviation 

(TCCA), which is the aviation authority 


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