This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

55513 

Vol. 70, No. 183 

Thursday, September 22, 2005 

NUCLEAR REGULATORY 

COMMISSION 

10 CFR Part 72 

RIN 3150–AH75 

List of Approved Fuel Storage Casks: 

NAC–UMS Revision 4, Confirmation of 

Effective Date 

AGENCY: Nuclear Regulatory 

Commission. 

ACTION: Direct final rule: Confirmation 

of effective date. 

SUMMARY: The Nuclear Regulatory 

Commission (NRC) is confirming the 

effective date of October 11, 2005, for 

the direct final rule that was published 

in the Federal Register on July 25, 2005 

(70 FR 42485). This direct final rule 

amended the NRC’s regulations to revise 

the NAC–UMS cask system listing to 

include Amendment No. 4 to Certificate 

of Compliance (CoC) No. 1015. 

EFFECTIVE DATE: The effective date of 

October 11, 2005, is confirmed for this 

direct final rule. 

ADDRESSES: Documents related to this 

rulemaking, including comments 

received, may be examined at the NRC 

Public Document Room, located at One 

White Flint North, 11555 Rockville 

Pike, Rockville, MD 20852. These same 

documents may also be viewed and 

downloaded electronically via the 

rulemaking Web site (http:// 

ruleforum.llnl.gov). For information 

about the interactive rulemaking 

website, contact Ms. Carol Gallagher 

(301) 415–5905; e-mail CAG@nrc.gov. 

FOR FURTHER INFORMATION CONTACT: 

Jayne M. McCausland, Office of Nuclear 

Material Safety and Safeguards, U.S. 

Nuclear Regulatory Commission, 

Washington, DC 20555, telephone (301) 

415–6219, e-mail jmm2@nrc.gov. 

SUPPLEMENTARY INFORMATION: On July 

25, 2005 (70 FR 42485), the NRC 

published a direct final rule amending 

its regulations in 10 CFR part 72 to 

revise the NAC-UMS cask system listing 

within the ‘‘List of Approved Spent Fuel 

Storage Casks’’ to include Amendment 

No. 4 to CoC No. 1015. This amendment 

replaces the term ‘‘zircaloy’’ with the 

more generic term ‘‘zirconium alloy’; 

revises the definitions of ‘‘operable’’ and 

‘‘site specific fuel’’; revises vacuum 

drying pressure and time limits; revises 

short-term temperature limits and 

completion times for the heat removal 

system; clarifies the surface dose rate 

surveillance; adds a dissolved boron 

concentration option; deletes a 

redundant boron concentration 

administrative control; adds an alternate 

site-specific design basis earthquake 

analysis; and incorporates editorial and 

administrative changes. In the direct 

final rule, NRC stated that if no 

significant adverse comments were 

received, the direct final rule would 

become final on October 11, 2005. The 

NRC did not receive any comments that 

warranted withdrawal of the direct final 

rule. Therefore, this rule will become 

effective as scheduled. 

Dated at Rockville, Maryland, this 18th day 

of September, 2005. 

For the Nuclear Regulatory Commission. 

Michael T. Lesar, 

Chief, Rules and Directives Branch, Division 

of Administrative Services, Office of 

Administration. 

[FR Doc. 05–18914 Filed 9–21–05; 8:45 am] 

BILLING CODE 7590–01–P 

FARM CREDIT ADMINISTRATION 

12 CFR Part 627 

RIN 3052–AC26 

Title IV Conservators, Receivers, and 

Voluntary Liquidations; Receivership 

Repudiation Authorities 

AGENCY: Farm Credit Administration. 

ACTION: Final rule. 

SUMMARY: The Farm Credit 

Administration (FCA, we, or our) issues 

this final rule amending our regulations 

governing how the Farm Credit System 

Insurance Corporation (FCSIC), as 

receiver or conservator of a Farm Credit 

System (System) institution, will treat 

financial assets transferred by the 

institution in connection with a 

securitization or in the form of a 

participation. This final rule will 

resolve issues raised by Financial 

Accounting Standards Board (FASB) 

Statement No. 140, Accounting for 

Transfers and Servicing of Financial 

Assets and Extinguishment of Liabilities 

(SFAS 140). Under conditions described 

in the final rule, the FCSIC will not seek 

to recover or reclaim certain financial 

assets in exercising its authority to 

repudiate or disaffirm contracts 

pursuant to 12 CFR 627.2725(b)(2), 

(b)(14) and 627.2780(b) and (d). 

Additionally, with this final rule, the 

FCSIC will not seek to enforce the 

‘‘contemporaneous’’ requirement of 

section 5.61(d) of the Farm Credit Act of 

1971, as amended (Act) (12 U.S.C. 

2277a–10(d)). The final rule is 

substantially identical to receivership 

rules issued by the Federal Deposit 

Insurance Corporation (FDIC) and the 

National Credit Union Administration 

(NCUA). 

EFFECTIVE DATE: This regulation will be 

effective 30 days after publication in the 

Federal Register during which either or 

both Houses of Congress are in session. 

We will publish a notice of the effective 

date in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: 

Robert E. Donnelly, Senior Accountant, 

Office of Policy and Analysis, Farm 

Credit Administration, McLean, VA 

22102–5090, (703) 883–4498, TTY 

(703) 883–4434, or 

Rebecca S. Orlich, Senior Attorney, 

Office of General Counsel, Farm 

Credit Administration, McLean, VA 

22102–5090, (703) 883–4020, TTY 

(703) 883–4020. 

SUPPLEMENTARY INFORMATION: 

I. Objective 

The objective in this final rule is to 

give certainty to System institutions 

regarding how the FCSIC will treat 

qualifying participations and 

securitizations if the institution is 

subsequently placed in conservatorship 

or receivership. The rule will achieve 

this by ensuring that the FCSIC will not 

attempt to ‘‘pull back’’ the subject assets 

into the conservatorship or receivership 

estate if the transaction meets specified 

conditions. 

There is nothing in this final rule that 

provides any System institutions with 

the authority to engage in any 

transaction that is not otherwise 

authorized. 

55514 Federal Register / Vol. 70, No. 183 / Thursday, September 22, 2005 / Rules and Regulations 

1SFAS 140 replaced SFAS 125 (which had 

covered the same issues and was identically titled) 

in September 2000. SFAS 140 revised the standards 

for accounting for securitizations and other 

transfers of financial assets and collateral and 

required certain disclosures, but it carried over 

most of the provisions of SFAS 125 without 

reconsideration. The FDIC receivership issues and 

its related rule 12 CFR 360.6, which are discussed 

later in this preamble, are described in paragraphs 

157–160 of SFAS 140. 

2See 12 CFR 627.2725(b)(2), (b)(14) and 

627.2780(b) and (d), and 12 U.S.C. 2277a–10(d). 

II. Background 

As discussed in the preamble to the 

proposed rule (see 70 FR 21685, April 

27, 2005), under generally accepted 

accounting principles (GAAP), a transfer 

of financial assets is accounted for as a 

sale if the transferor surrenders control 

over the assets. This principle is set 

forth in the SFAS No. 140 issued by the 

FASB.1 Under this principle, one of the 

conditions for determining that the 

transferor has surrendered control is 

that the assets have been isolated from 

the transferor, i.e., put presumptively 

beyond the reach of the transferor, its 

creditors, a trustee in bankruptcy, or a 

receiver. This is known as the ‘‘legal 

isolation’’ condition. 

Whether the legal isolation condition 

has been met is determined primarily 

from a legal perspective. This 

determination involves considerations 

of the kind of receivership into which 

the transferor may be placed and the 

powers of the receiver to reach assets 

that were transferred prior to its 

appointment. If the available evidence 

provides reasonable assurance that the 

transferred assets would be beyond the 

reach of the powers of a bankruptcy 

trustee or receiver for the transferor, 

then a determination that the transferred 

assets have been legally isolated is 

appropriate. 

When the transferor is a System 

institution, the FCSIC may be appointed 

conservator or receiver. The FCSIC has 

authority to repudiate burdensome 

contracts under §§ 627.2725(b)(2), 

(b)(14) and 627.2780(b) and (d) of FCA 

regulations; and it can repudiate certain 

other contracts under section 5.61(d) of 

the Act.2 Due to these provisions, the 

question becomes whether financial 

assets transferred in connection with a 

securitization or in the form of a 

participation would be beyond the reach 

of the FCSIC as conservator or receiver. 

Under §§ 627.2725(b)(2) and 

627.2780(d), the FCSIC may take any 

action it considers appropriate or 

expedient to carry on the business of the 

institution during the process of 

liquidation or during the 

conservatorship. Under 

§ 627.2725(b)(14), the FCSIC, when 

acting as conservator or receiver of a 

System institution, has the power to 

disaffirm or repudiate any contract or 

lease to which the institution is a party, 

the performance of which the FCSIC 

determines to be burdensome. 

Repudiation of a contract relieves the 

FCSIC from performing any 

unperformed obligations remaining 

under the contract. Section 5.61(d) of 

the Act provides that no agreement that 

tends to diminish or defeat the FCSIC’s 

interest in an asset acquired by the 

FCSIC as conservator or receiver is 

enforceable against the FCSIC unless the 

agreement meets certain requirements. 

One of those requirements is that the 

agreement must be executed, by the 

institution and by any person claiming 

an adverse interest under it, 

contemporaneously with the acquisition 

of the asset by the institution. This is 

referred to as the ‘‘contemporaneous’’

requirement. These provisions are 

discussed below. 

III. Description of the Final Rule 

This final rule will add a new 

§ 627.2726 to the conservatorship and 

receivership provisions in part 627 of 

FCA’s regulations. The rule will apply 

only to those securitizations or 

participations in which the transfer of 

financial assets meets all conditions for 

sale accounting treatment under GAAP, 

other than the ‘‘legal isolation’’

condition as it applies to institutions for 

which the FCSIC may be appointed as 

conservator or receiver, which is 

addressed by this rule. The final rule 

provides that, for these transfers, the 

FCSIC will not, by exercise of its 

authority to repudiate contracts under 

§ 627.2725(b)(2) or (b)(14), reclaim, 

recover, or recharacterize as property of 

the institution or the receivership any 

financial assets transferred by a System 

institution in connection with a 

securitization or in the form of a 

participation. Although the repudiation 

of a securitization or participation will 

not affect transferred financial assets, 

repudiation will excuse the FCSIC from 

performing any continuing obligations 

imposed by the securitization or 

participation. If the FCSIC, in order to 

terminate such continuing obligations or 

duties, seeks to repudiate an agreement 

or contract under which a System 

institution has transferred financial 

assets in connection with a 

securitization or in the form of a 

participation, the FCSIC will not seek to 

reclaim, recover, or recharacterize as 

property of the institution or the 

receivership such financial assets. 

The definitions in the final rule are 

limited to this rule only, and language 

has been added to the final rule to 

clarify this point. The definition of 

‘‘participation’’ is specifically limited to 

participations that are ‘‘without 

recourse’’ to the selling or ‘‘lead’’

institution. ‘‘Without recourse’’ means 

that the participation must not be 

subject to any agreement that requires 

the selling or ‘‘lead’’ institution to 

repurchase the participant’s interest or 

to otherwise compensate the participant 

upon the borrower’s default on the 

underlying obligation. The term 

‘‘without recourse’’ will not, however, 

preclude the lead institution from 

retaining a subordinated interest in the 

participated obligation, against which 

losses are initially allocated. The final 

rule will not apply unless the System 

institution received adequate 

consideration for the transfer of 

financial assets at the time of the 

transfer, and the documentation 

effecting the transfer of financial assets 

reflects the intent of the parties to treat 

the transaction as a sale, and not as a 

secured borrowing, for accounting 

purposes. 

The final rule further provides that it 

will not be construed as waiving, 

limiting, or otherwise affecting the 

rights or powers of the FCSIC to take 

any action or to exercise any power not 

specifically limited by this section. 

Such rights or powers include, but are 

not limited to, any rights, powers or 

remedies of the FCSIC regarding 

transfers taken in contemplation of the 

institution’s insolvency or with the 

intent to hinder, delay, or defraud the 

institution or the creditors of such 

institution, or that is a fraudulent 

transfer under applicable law. 

The final rule further provides that 

the FCSIC will not seek to avoid an 

otherwise legally enforceable 

securitization agreement or 

participation agreement executed by a 

System institution solely because such 

agreement does not meet the 

‘‘contemporaneous’’ requirement of 

section 5.61(d) of the Act. 

The final rule will apply to 

securitizations and participations 

engaged in by System institutions while 

the rule is in effect, even if the rule is 

later amended or repealed. Section 

627.2726(g) provides that any repeal or 

amendment of the rule by the FCA will 

not apply to any transfer of financial 

assets made in connection with a 

securitization or participation that was 

in effect before such repeal or 

amendment. As a result of § 627.2726(g), 

where a transfer of financial assets in 

connection with a securitization or in 

the form of a participation is made by 

a System institution and the 

securitization or participation was in 

effect before any repeal or amendment 

of the rule by the FCA, such transfer 

Federal Register / Vol. 70, No. 183 / Thursday, September 22, 2005 / Rules and Regulations 55515 

will continue to satisfy the legal 

isolation requirement notwithstanding 

the repeal or amendment. 

The final rule makes a conforming 

change to § 627.2780(b) to clarify that 

the provisions of this final rule apply to 

a conservatorship as well as to a 

receivership. 

IV. Comments 

The FCA received no written 

comments on the proposed rule. The 

FCA adopts the rule as final with no 

substantive changes other than the 

change to the definitions section 

described above. 

V. Regulatory Flexibility Act 

Pursuant to section 605(b) of the 

Regulatory Flexibility Act (5 U.S.C. 601 

et seq.), FCA hereby certifies that the 

rule will not have a significant 

economic impact on a substantial 

number of small entities. Each of the 

banks in the Farm Credit System, 

considered together with its affiliated 

associations, has assets and annual 

income in excess of the amounts that 

would qualify them as small entities. 

Therefore, Farm Credit System 

institutions are not ‘‘small entities’’ as 

defined in the Regulatory Flexibility 

Act. 

List of Subjects in 12 CFR Part 627 

Agriculture, Banks, banking, Claims, 

Rural areas. 

■ For the reasons stated in the preamble, 

part 627 of chapter VI, title 12 of the 

Code of Federal Regulations is amended 

as follows: 

PART 627—CONSERVATORS, 

RECEIVERS, AND VOLUNTARY 

LIQUIDATIONS 

■ 1. The authority citation for part 627 

is amended to read as follows: 

Authority: Secs. 4.2, 5.9, 5.10, 5.17, 5.51, 

5.58, 5.61 of the Farm Credit Act (12 U.S.C. 

2183, 2243, 2244, 2252, 2277a, 2277a–7, 

2277a–10). 

Subpart B—Receivers and 

Receiverships 

■ 2. Add a new § 627.2726 to read as 

follows: 

§ 627.2726 Treatment by the conservator 

or receiver of financial assets transferred in 

connection with a securitization or 

participation. 

(a) Definitions. For the purposes of 

this section, the following definitions 

apply: 

Beneficial interest means debt or 

equity (or mixed) interests or obligations 

of any type issued by a special purpose 

entity that entitle their holders to 

receive payments that depend primarily 

on the cash flow from financial assets 

owned by the special purpose entity. 

Financial asset means cash or a 

contract or instrument that conveys to 

one entity a contractual right to receive 

cash or another financial instrument 

from another entity. 

Participation means the transfer or 

assignment of an undivided interest in 

all or part of a loan or a lease from a 

seller, known as the ‘‘lead’’, to a buyer, 

known as the ‘‘participant’’, without 

recourse to the lead, pursuant to an 

agreement between the lead and the 

participant. Without recourse means 

that the participation is not subject to 

any agreement that requires the lead to 

repurchase the participant’s interest or 

to otherwise compensate the participant 

due to a default on the underlying 

obligation. 

Securitization means the issuance by 

a special purpose entity of beneficial 

interests: 

(1) The most senior class of which at 

the time of issuance is rated in one of 

the four highest categories assigned to 

long-term debt or in an equivalent shortterm category (within either of which 

there may be sub-categories or 

gradations indicating relative standing) 

by one or more nationally recognized 

statistical rating organizations, or 

(2) Which are sold in transactions by 

an issuer not involving any public 

offering for purposes of section 4 of the 

Securities Act of 1933 (15 U.S.C. 77d), 

as amended, or in transactions exempt 

from registration under such Act 

pursuant to Regulation S thereunder (or 

any successor regulation). 

Special purpose entity means a trust, 

corporation, or other entity 

demonstrably distinct from the Farm 

Credit institution that is primarily 

engaged in acquiring and holding (or 

transferring to another special purpose 

entity) financial assets, and in activities 

related or incidental thereto, in 

connection with the issuance by such 

special purpose entity (or by another 

special purpose entity that acquires 

financial assets directly or indirectly 

from such special purpose entity) of 

beneficial interests. 

(b) The receiver shall not, by exercise 

of its authority to repudiate contracts 

under § 627.2725(b)(2) and (b)(14), 

reclaim, recover, or recharacterize as 

property of the institution or the 

receivership any financial assets 

transferred by a Farm Credit institution 

in connection with a securitization or 

participation, provided that such 

transfer meets all conditions for sale 

accounting treatment under generally 

accepted accounting principles, other 

than the ‘‘legal isolation’’ condition as it 

applies to institutions for which the 

FCSIC may be appointed as receiver 

which is addressed by this section. 

(c) Paragraph (b) of this section shall 

not apply unless the Farm Credit 

institution received adequate 

consideration for the transfer of 

financial assets at the time of the 

transfer, and the documentation 

effecting the transfer of financial assets 

reflects the intent of the parties to treat 

the transaction as a sale, and not as a 

secured borrowing, for accounting 

purposes. 

(d) Paragraph (b) of this section shall 

not be construed as waiving, limiting, or 

otherwise affecting the power of the 

receiver to disaffirm or repudiate any 

agreement imposing continuing 

obligations or duties upon the 

institution in receivership. 

(e) Paragraph (b) of this section shall 

not be construed as waiving, limiting or 

otherwise affecting the rights or powers 

of the receiver to take any action or to 

exercise any power not specifically 

limited by this section, including, but 

not limited to, any rights, powers or 

remedies of the receiver regarding 

transfers taken in contemplation of the 

institution’s insolvency or with the 

intent to hinder, delay, or defraud the 

institution or the creditors of such 

institution, or that is a fraudulent 

transfer under applicable law. 

(f) The receiver shall not seek to avoid 

an otherwise legally enforceable 

securitization agreement or 

participation agreement executed by a 

Farm Credit institution solely because 

such agreement does not meet the 

‘‘contemporaneous’’ requirement of 

section 5.61(d) of the Act. 

(g) This section may be repealed or 

amended by the Farm Credit 

Administration, but any such repeal or 

amendment shall not apply to any 

transfers of financial assets made in 

connection with a securitization or 

participation that was in effect before 

such repeal or modification. 

Subpart C—Conservators and 

Conservatorships 

■ 3. Amend § 627.2780(b) by adding a 

second sentence to read as follows: 

§ 627.2780 Powers and duties of 

conservators. 

* * * * * 

(b) * * * The provisions of 

§ 627.2726 shall also apply to the 

conservator of a Farm Credit 

institution.* * * 

* * * * * 

55516 Federal Register / Vol. 70, No. 183 / Thursday, September 22, 2005 / Rules and Regulations 

Dated: September 16, 2005. 

Jeanette C. Brinkley, 

Secretary, Farm Credit Administration Board. 

[FR Doc. 05–18892 Filed 9–21–05; 8:45 am] 

BILLING CODE 6705–01–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Parts 703, 790, 791 

Technical Corrections 

AGENCY: National Credit Union 

Administration. 

ACTION: Final rule. 

SUMMARY: The National Credit Union 

Administration (NCUA) Board is issuing 

a rule to make certain technical 

corrections. The rule corrects titles of 

some NCUA offices and reorganizes the 

section describing the central and 

regional office organization. The NCUA 

Board is also making a minor revision 

to its own rules of procedure to clarify 

when notation voting is appropriate. 

DATES: This rule is effective September 

22, 2005. 

FOR FURTHER INFORMATION CONTACT: 

Moisette Green, Staff Attorney, Division 

of Operations, Office of General 

Counsel, at the National Credit Union 

Administration, 1775 Duke Street, 

Alexandria, Virginia 22314–3428 or 

telephone: (703) 518–6540. 

SUPPLEMENTARY INFORMATION: 

A. Background 

The NCUA Board reorganized a few 

offices within the central office of the 

agency as a result of the fiscal year 2005 

(FY05) budget review. The Board’s goals 

included improving the efficiency of 

NCUA operations, clarifying central 

office functions and extending 

assistance to small credit unions. 

As part of the reorganization, the 

Board reassigned some existing NCUA 

positions and resources to the Office of 

Credit Union Development and renamed 

it as the Office of Small Credit Union 

Initiatives. This change recognizes the 

important role small credit unions, 

which represent about one-half of all 

credit unions, play in the credit union 

movement and provides additional 

focus within NCUA on the problems 

small credit unions face. 

The Board also restructured the Office 

of Strategic Program Support and 

Planning when it approved the FY05 

budget. The Board reorganized this staff 

to achieve more effective operations and 

better respond to NCUA’s emerging 

needs and renamed the office as the 

Office of Capital Markets and Planning 

to reflect its purpose and function more 

accurately. 

Part 790 describes NCUA’s 

organization. Due to the renaming of 

these offices, the Board revises 

§§ 790.2(b)(12) and (13) to delete the 

references to the ‘‘Office of Credit Union 

Development’’ and ‘‘Office of Strategic 

Program Support and Planning.’’ These 

references are replaced with ‘‘Office of 

Small Credit Union Initiatives’’ and 

‘‘Office of Capital Markets and 

Planning’’ respectively. The Board also 

makes a conforming change to § 703.19. 

Accordingly, the Board revises 

§§ 703.19(c), 790.2(b)(12) and (13) to 

make this correction. 

The Board also revises § 790.2(b)(4) to 

describe graphics as an example of the 

administrative services provided by the 

Office of the Chief Financial Officer 

instead of a responsibility of the Office 

of Public and Congressional Affairs. 

Additionally, the Board has a policy 

of continually reviewing NCUA 

regulations to ‘‘update, clarify and 

simplify existing regulations and 

eliminate redundant and unnecessary 

provisions.’’ NCUA Interpretive Rulings 

and Policy Statement (IRPS) 87–2, 

Developing and Reviewing Government 

Regulations. The NCUA staff’s most 

recent review of NCUA’s regulations 

revealed the need for a few minor 

updates and corrections. 

The description of the NCUA Central 

Liquidity Facility (CLF) is currently 

placed within the description of the 

Office of Examination and Insurance. 

The CLF is an instrumentality of the 

United States established under Title III 

of the Federal Credit Union Act, 12 

U.S.C. 1795–1795k, and should be 

described in a separate paragraph in 

§ 790.2. Accordingly, the Board 

redesignates § 790.2(b)(5)(ii) as a new 

paragraph § 790.2(b)(15) to make this 

correction. 

The NCUA Board has reviewed the 

rules governing its procedures in Part 

791. Specifically, Board is revising 

§ 791.4 to reflect when it may consider 

matters by notation voting. When the 

rule was approved in 1980, the Board 

described matters it would consider by 

notation voting with the word 

‘‘routine,’’ intending to restrict the use 

of this method of acting. The Board 

continues to believe notation voting 

should not be used for substantive 

decisions of significant, broad impact on 

credit unions. To clarify the rule and 

provide the Board with additional 

flexibility, while complying the 

Government in the Sunshine Act, 5 

U.S.C. 552b, the Board revises 

§ 791.4(b)(1) by replacing the word 

‘‘routine’’ with the words 

‘‘administrative or time sensitive.’’

B. Regulatory Procedures 

Final Rule Under the Administrative 

Procedure Act 

The amendments in this rule are 

technical rather than substantive or 

involve only agency rules governing 

internal procedure. NCUA finds good 

cause that notice and public comment 

are unnecessary under section 553(b)(B) 

of the Administrative Procedure Act 

(APA). 5 U.S.C. 553(b)(B). NCUA also 

finds good cause to dispense with the 

30-day delayed effective date 

requirement under section 553(d)(3) of 

the APA. The rule will, therefore, be 

effective immediately upon publication. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

requires NCUA to prepare an analysis to 

describe any significant economic 

impact a rule may have on a substantial 

number of small entities, those credit 

unions with less than ten million 

dollars in assets. This rule makes 

technical corrections and revises the 

Board’s internal procedural rules, so it 

will not have a significant economic 

impact on a substantial number of small 

credit unions, and, therefore, a 

regulatory flexibility analysis is not 

required. 

Paperwork Reduction Act 

NCUA has determined that this rule 

will not increase paperwork 

requirements under the Paperwork 

Reduction Act of 1995 and regulations 

of the Office of Management and 

Budget. 

Executive Order 13132 

Executive Order 13132 encourages 

independent regulatory agencies to 

consider the impact of their actions on 

state and local interests. In adherence to 

fundamental federalism principles, the 

NCUA, an independent regulatory 

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

voluntarily complies with the executive 

order. This rule will 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 NCUA has 

determined that this rule does not 

constitute a policy that has federalism 

implications for purposes of the 

executive order. 

The Treasury and General Government 

Appropriations Act, 1999—Assessment 

of Federal Regulations and Policies on 

Families 

NCUA has determined that this rule 

will not affect family well-being within