[Federal Register Volume 60, Number 91 (Thursday, May 11, 1995)]
[Rules and Regulations]
[Pages 25121-25122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11657]



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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 707


Truth in Savings

AGENCY: National Credit Union Administration.

ACTION: Final rule; extension of compliance date.

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SUMMARY: The NCUA Board is publishing a change to the compliance date 
of Appendix C to NCUA's Truth in Savings regulation. This document 
extends the compliance date for all credit unions until January 1, 
1996. This extension gives credit unions more time to come into 
compliance with the technicalities of the Truth in Savings regulation.

DATES: Effective Date: This document is effective May 11, 1995. 
[[Page 25122]] 
    Compliance Date: The compliance date of Appendix C to part 707 is 
extended to January 1, 1996.

FOR FURTHER INFORMATION CONTACT: Martin S. Conrey, Staff Attorney, 
Office of General Counsel, telephone (703) 518-6540.

SUPPLEMENTARY INFORMATION:

Background

    The Truth in Savings Act (``TISA''), contained in the Federal 
Deposit Insurance Corporation Improvement Act of 1991, Public Law No. 
102-242, 12 U.S.C. 4301 et seq., was enacted in December 1991. TISA 
directed the Federal Reserve Board (``FRB'') to issue final regulations 
governing depository institutions other than credit unions. Regulation 
DD was promulgated by the FRB on September 21, 1992, with a compliance 
date of June 21, 1993. 57 FR 43337 (September 21, 1992), as extended in 
58 FR 15077 (March 19, 1993). In addition, the FRB issued an Official 
Staff Commentary to Regulation DD to expand upon and interpret TISA 
requirements for banks and thrifts. 59 FR 40217 (August 8, 1994). The 
FRB made compliance with the Official Staff Commentary optional for six 
months, making compliance mandatory on February 6, 1995.

    NCUA, obligated to issue a rule for credit unions substantially 
similar to Regulation DD, promulgated part 707 to the NCUA Rules and 
Regulations on September 27, 1993, with a compliance date of January 1, 
1995, for most credit unions. 58 FR 50394 (September 27, 1993). To be 
substantially similar to Regulation DD, NCUA also promulgated an 
Official Staff Commentary to explain and interpret TISA requirements 
for credit unions. 59 FR 59887 (November 21, 1994). Like the FRB, NCUA 
made compliance with the Official Staff Commentary optional for six 
months, making compliance mandatory on May 22, 1995. Small, 
nonautomated credit unions with assets of $2 million or less are exempt 
from part 707 coverage, including the Official Staff Commentary, until 
January 1, 1996. 59 FR 39425 (August 3, 1994).

    In the meantime, several bills have been introduced into the 104th 
Congress of the United States to either repeal, or restrict the scope 
of TISA. ``A bill to repeal the Truth in Savings Act,'' H.R. 337, 
introduced in the House of Representatives on January 4, 1995, would 
repeal TISA. The ``Financial Institutions Regulatory Relief Act of 
1995,'' H.R. 1362, introduced in the House of Representatives on March 
30, 1995, would amend TISA by repealing many of its disclosure 
requirements and civil liability provisions. The ``Economic Growth and 
Regulatory Paperwork Reduction Act of 1995,'' S. 650, introduced in the 
Senate on March 30, 1995, would repeal TISA and replace it with the 
Payment of Interest Act (``PIA''). PIA would basically eliminate TISA's 
disclosure requirements, but would retain the requirement that interest 
and dividends on accounts be calculated on the full amount of principal 
in the account for each day and at the rate(s) disclosed by the 
depository institution.

    Given all of this legislative activity, and requests for a 
postponement in the Official Staff Commentary from several credit 
unions and a national trade association, the Board has decided, in the 
name of regulatory relief and in the spirit of the National Performance 
Review and the Presidential Regulatory Reform Initiative, to delay the 
compliance date of the Official Staff Commentary, Appendix C, to part 
707 until January 1, 1996. The new Official Staff Commentary compliance 
date will coincide with the general part 707 compliance date for small, 
nonautomated credit unions. A compliance date extension of this length 
will enable the NCUA to observe and implement any possible legislative 
initiatives by the 104th Congress, while also providing regulatory 
relief to all credit unions already complying with NCUA's Truth in 
Savings rules. 12 CFR 707.1--707.9, Apps. A and B.

Administrative Procedure Act

    The extension made to this part is not subject to the notice and 
comment provisions of the Administrative Procedure Act (the ``APA''), 5 
U.S.C. 551 et seq. The extension relates to the Official Staff 
Interpretations of part 707, and not to the sections 707.1 through 
707.9 or Appendices A and B to part 707. No major changes are 
contemplated, or made, by this extension. Therefore, the NCUA Board has 
determined that, in this case, the APA notice and comment procedures 
for this extension is impracticable, unnecessary, and contrary to the 
public interest. 5 U.S.C. 553(b)(3)(B).

    By the National Credit Union Administration Board on May 5, 
1995.
Becky Baker,
Secretary of the Board.
[FR Doc. 95-11657 Filed 5-10-95; 8:45 am]
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