Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Rules and Regulations 72895 

forms are periodically reviewed to 

reduce information requirements and 

duplication by industry and public 

sector agencies. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

A proposed rule concerning this 

action was published in the Federal 

Register on November 4, 2005 (70 FR 

67096). Copies of the proposed rule 

were also mailed or sent via facsimile to 

all walnut handlers. Finally, the 

proposal was made available through 

the Internet by USDA and the Office of 

the Federal Register. A 10-day comment 

period ending on November 14, 2005, 

was provided for interested persons to 

respond to the proposal. No comments 

were received. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/ 

fv/moab.html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

After consideration of all relevant 

material presented, including the 

information and recommendation 

submitted by the Board and other 

available information, it is hereby found 

that this rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 

Pursuant to 5 U.S.C 553, it also found 

and determined that good cause exists 

for not postponing the effective date of 

this rule until 30 days after publication 

in the Federal Register because 

handlers are already receiving the 2005 

walnut crop from growers. The 

marketing year began on August 1, 2005, 

and the assessment rate applies to all 

walnuts received during the 2005–06 

and subsequent seasons. The Board 

needs to have sufficient funds to pay its 

expenses which are incurred on a 

continuous basis. Further, handlers are 

aware of this rule which was 

recommended at a public meeting. Also 

a 10-day comment period was provided 

in the proposed rule and no comments 

were received. 

List of Subjects in 7 CFR Part 984 

Marketing agreements, Nuts, 

Reporting and recordkeeping 

requirements, Walnuts. 

■ For the reasons set forth in the 

preamble, 7 CFR part 984 is to be 

amended as follows: 

PART 984—WALNUTS GROWN IN 

CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 984 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 984.347 is revised to read 

as follows: 

§ 984.347 Assessment rate. 

On and after August 1, 2005, an 

assessment rate of $0.0096 per 

kernelweight pound is established for 

California merchantable walnuts. 

Dated: December 5, 2005. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 05–23818 Filed 12–5–05; 4:29 pm] 

BILLING CODE 3410–02–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 707 

RIN 3133–AC57 

Truth in Savings 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Interim final rule with request 

for comments. 

SUMMARY: As required by the Truth in 

Savings Act, the NCUA is amending its 

rule and official staff interpretation to 

address the uniformity and adequacy of 

information provided to members when 

they overdraw their share accounts. The 

amendments address services referred to 

as ‘‘bounced-check protection’’ or 

‘‘courtesy overdraft protection’’ that pay 

members’ checks and allow other 

overdrafts when there are insufficient 

funds in the account. The interim final 

rule creates a new section in the 

regulation and requires credit unions 

that promote the payment of overdrafts 

in advertisements to disclose fees and 

other information in advertisements of 

overdraft services. 

DATES: This rule is effective December 8, 

2005. To allow time for any necessary 

operational changes, however, the 

mandatory compliance date for the 

interim final rule is July 1, 2006. 

Comments must be received on or 

before February 6, 2006. 

ADDRESSES: You may submit comments 

by any of the following methods (Please 

send comments by one method only): 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• NCUA Web site: http:// 

www.ncua.gov/ 

RegulationsOpinionsLaws/ 

proposed_regs/proposed_regs.html. 

Follow the instructions for submitting 

comments. 

• E-mail: Address to 

regcomments@ncua.gov. Include ‘‘[Your 

name] Comments on Part 707 Truth in 

Savings’’ in the e-mail subject line. 

• Fax: (703) 518–6319. Use the 

subject line described above for e-mail. 

• Mail: Address to Mary Rupp, 

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 agency’s 

Web site at http://www.ncua.gov/ 

RegulationsOpinionsLaws/comments as 

submitted, except as may not be 

possible for technical reasons. Public 

comments will not be edited to remove 

any identifying or contact information. 

Paper copies of comments may be 

inspected in NCUA’s law library at 1775 

Duke Street, Alexandria, Virginia 22314, 

by appointment weekdays between 9 

a.m. and 3 p.m. To make an 

appointment, call (703) 518–6540 or 

send an e-mail to OGCMail@ncua.gov. 

FOR FURTHER INFORMATION CONTACT: 

Moisette I. Green or Frank S. Kressman, 

Staff Attorneys, at the address above or 

telephone: (703) 518–6540. 

SUPPLEMENTARY INFORMATION: 

I. Background 

In November 2002, the Board of 

Governors of the Federal Reserve 

System (Federal Reserve) solicited 

comment about financial institutions’

current overdraft services to determine 

the need for guidance to depository 

institutions under 12 CFR part 226 

(Regulation Z) and other laws. 67 FR 

72618 (December 6, 2002). Based on 

comments it received, the Federal 

Reserve amended 12 CFR part 230 

(Regulation DD), and its staff 

commentary in May 2005. 70 FR 29582 

(May 24, 2005). Regulation DD, the 

Federal Reserve’s implementation of the 

Truth in Savings Act (TISA), now 

requires banks to disclose rates and fees 

charged as a part of ‘‘bounced-check 

protection’’ or ‘‘courtesy overdraft 

protection’’ programs offered as an 

alternative to traditional overdraft lines 

of credit. The Federal Reserve’s final 

rule also requires financial institutions 

that promote the payment of overdrafts 

in an advertisement to: (1) Disclose the 

total fees imposed for paying overdrafts 

and returning unpaid items on periodic 

statements for both the statement period 

and the calendar year to date and (2) 

72896 Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Rules and Regulations 

include certain other disclosures in 

advertisements of overdraft services. 

TISA requires NCUA to promulgate 

regulations substantially similar to those 

promulgated by the Federal Reserve 

within 90 days of the effective date of 

the Federal Reserve’s rules. 12 U.S.C. 

4311(b). In doing so, NCUA is to take 

into account the unique nature of credit 

unions and the limitations under which 

they may pay dividends on member 

accounts. In compliance with TISA, 

NCUA is issuing this interim final rule 

with request for comments that is 

substantially similar to the Federal 

Reserve’s May 2005 final rule. 

Part 707 of NCUA’s regulations 

implements TISA for credit unions. 12 

CFR part 707. Part 707 requires, among 

other things, disclosure of yields, fees 

and other terms concerning share 

accounts to members before an account 

is opened, upon a member’s request, 

before an adverse change in account 

terms occurs, before the renewal of 

certificates of deposit, and in periodic 

statements. Credit unions are not 

required to provide periodic statements, 

but if they do, statements must have the 

disclosures TISA requires. 

Part 707 and TISA have rules for 

advertising share accounts and prohibit 

advertisements, announcements, or 

solicitations that are inaccurate or 

misleading, or that misrepresent the 

credit union’s account contract. 12 CFR 

707.8(a). For example, credit unions are 

prohibited from describing an account 

as ‘‘free’’ or using words of similar 

meaning if any maintenance or activity 

fee may be imposed. Id. 

II. The Interim Final Rule 

To comply with the Board’s obligation 

under TISA, it is adopting interim final 

revisions to part 707 and the 

accompanying official staff 

interpretation that are substantially 

similar to the Federal Reserve’s final 

rule in May 2005. NCUA has made some 

modifications to the rule to account for 

the unique nature of credit unions. The 

interim final rule consolidates the 

guidance for credit unions that promote 

the payment of overdrafts in a new 

§ 707.11 to facilitate compliance. To 

give credit unions sufficient time to 

implement the necessary system 

changes to comply with the regulation, 

compliance with the interim final rule 

will not become mandatory until July 1, 

2006. 

The NCUA Board is issuing this rule 

as an interim final rule because there is 

a strong public interest in having in 

place consumer-oriented rules that are 

consistent with those recently 

promulgated by the Federal Reserve. 

Additionally, as discussed above, NCUA 

is statutorily required to issue rules 

substantively similar to those of the 

Federal Reserve within 90 days of the 

effective date of the Federal Reserve’s 

rules. Although the Federal Reserve’s 

rule will not be effective until July 1, 

2006, credit unions and their accounting 

software providers will need to adapt 

their current systems to accommodate 

these changes. The Board wants to 

provide adequate lead time for these 

changes. Accordingly, for good cause, 

the Board finds that, pursuant to 5 

U.S.C. 553(b)(3)(B), notice and public 

procedures are impracticable, 

unnecessary, and contrary to the public 

interest; and, pursuant to 5 U.S.C. 

553(d)(3), the rule will be effective 

immediately and without 30 days 

advance notice of publication. Although 

the rule is being issued as an interim 

final rule and is effective immediately, 

compliance will not become mandatory 

until July 1, 2006 to give credit unions 

sufficient time to implement the 

necessary system changes to comply 

with the regulation. Even so, the NCUA 

Board encourages interested parties to 

submit comments. 

Summary of Revisions to the Regulation 

The following is a summary of the 

interim final rule. This interim final rule 

tracks closely the Federal Reserve’s 

recent amendments to Regulation DD. A 

section-by-section analysis of the 

regulatory language and staff 

commentary is in the Federal Reserve’s 

final rule. 70 FR 29582 (May 24, 2005). 

Disclosures Concerning Overdraft Fees 

on Periodic Statements 

Courtesy overdraft protection allows 

the payment of a check or debit 

transaction that would otherwise be 

rejected for non-sufficient funds (NSF). 

Payment of the item overdraws the 

member’s account, and a fee is charged 

for paying the NSF item. Under 

overdraft protection programs, there is 

no written agreement between the 

member and credit union to pay NSF 

items. Instead, payment is made at the 

discretion of the credit union, and a fee 

is charged for each item paid. Generally, 

overdraft protection services allowed 

the occasional, manual payment of an 

overdraft. Some financial institutions 

have automated the decision and 

payment process however. 

Credit unions that provide courtesy 

overdraft protection must separately 

disclose on their periodic statements the 

total amount of fees or charges imposed 

on the share account for paying 

overdrafts and returning items unpaid. 

These disclosures must be provided for 

the statement period and for the 

calendar year to date. Credit unions that 

do not provide this service would not be 

required to provide the new disclosures. 

Account-Opening Disclosures 

Credit unions must specify in 

account-opening disclosures the 

categories of transactions for which an 

overdraft fee may be imposed. An 

exhaustive list of transactions is not 

required. It is sufficient to state that the 

fee is imposed for overdrafts created by 

checks, in-person withdrawals, ATM 

withdrawals, or by other electronic 

means, as applicable. This requirement 

applies to all credit unions, including 

credit unions that do not promote the 

payment of overdrafts in an 

advertisement. 

Advertising Rules 

To avoid confusion with traditional 

lines of credit, credit unions that 

promote the payment of overdrafts must 

include certain disclosures in their 

advertisements about the service: 

(1) The applicable fees or charges, the 

categories of transactions covered; 

(2) The time period members have to 

repay or cover any overdraft; and 

(3) The circumstances under which 

the credit union would not pay an 

overdraft. 

Stating the available overdraft limit or 

the amount of funds available on a 

periodic statement would be considered 

an advertisement triggering the required 

disclosures. 

The interim final rule provides safe 

harbors from the advertising 

requirements similar to those for the 

periodic statement disclosure 

requirements. For example, the 

advertising disclosure requirements 

would not apply to credit unions when 

they provide educational materials, 

respond to a member-initiated inquiry 

about overdrafts or share accounts, or 

notify a member about a specific 

overdraft in their account. 

Advertising disclosures are not 

required on ATM receipts, due to space 

limitations. Similarly, advertising 

disclosures are not required for 

advertisements using broadcast media, 

billboards, or telephone response 

systems. This parallels an exemption in 

part 707 for other types of advertising 

disclosures. Limited advertising 

disclosures are required on ATM 

screens, telephone response machines, 

and indoor signs. For example, a sign in 

a credit union lobby advertising 

courtesy overdraft protection must state 

that fees may apply and direct members 

to contact a credit union employee for 

more information. 

Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Rules and Regulations 72897 

Prohibiting Misleading Advertisements 

TISA’s prohibition against 

advertisements, announcements, or 

solicitations that are misleading or 

misrepresent the deposit contract is 

extended to communications with 

members about the terms of their 

existing accounts. 

Examples of Misleading Advertisements 

The staff interpretation is revised to 

provide five examples of advertisements 

that would ordinarily be deemed 

misleading: 

(1) Representing an overdraft service 

as a ‘‘line of credit’’; 

(2) Representing that the credit union 

will honor all checks or transactions if 

the credit union in fact retains 

discretion not to honor a transaction; 

(3) Representing that members with 

an overdrawn account can maintain a 

negative balance if the overdraft service 

requires members to return the share 

account to a positive balance promptly; 

(4) Describing an overdraft service 

solely as protection against bounced 

checks, if the credit union also permits 

and charges a fee for ATM withdrawals 

and other electronic fund transfers that 

permit members to overdraw their 

account; and 

(5) Describing an account as ‘‘free’’ or 

‘‘no cost’’ in an advertisement that also 

promotes a service for which there is a 

fee, including an overdraft service, 

unless the advertisement clearly and 

conspicuously indicates the cost 

associated with the service. 

Possible Coverage Under the Truth in 

Lending Act (TILA) 

The amendments to part 707 

recognize that an overdraft service is a 

feature and term of a share account, and 

that the fees associated with the service 

are assessed against the share account. 

The adoption of interim final rules 

under part 707 does not preclude a 

future determination by the Federal 

Reserve that TILA disclosures would 

also benefit consumers. 

III. Regulatory Flexibility Analysis 

The Board has prepared a final 

regulatory flexibility analysis as 

required by the Regulatory Flexibility 

Act (5 U.S.C. 601 et seq.). TISA was 

enacted, in part, for the purpose of 

requiring clear and uniform disclosures 

regarding deposit account terms and 

fees assessable against these accounts. 

Such disclosures allow members to 

make meaningful comparisons between 

different accounts and also allow 

members to make informed judgments 

about the use of their accounts. 12 

U.S.C. 4301. TISA requires the Board to 

prescribe regulations to carry out the 

purpose and provisions of the statute. 

12 U.S.C. 4308(a)(1), 4311(b). The Board 

is adopting revisions to part 707 to 

address the uniformity and adequacy of 

credit unions’ disclosure of fees 

associated with overdraft services 

generally and to address concerns about 

advertised overdraft services in 

particular. The existing regulation is 

amended to require credit unions 

offering certain overdraft services to 

provide more complete information 

regarding those services. The Board 

believes that the revisions to part 707 

are within the Board’s authority to 

adopt provisions that carry out the 

purposes of the statute. 

There are other laws that credit 

unions must consider when 

administering an overdraft protection 

program. Although other laws and 

regulations may apply to credit unions’

payment of overdrafts, the final 

revisions to part 707 do not duplicate or 

conflict with the requirements imposed 

by these laws. The Board has also 

considered the interagency guidance on 

overdraft protection programs issued in 

February 2005, and has determined that 

issuance of the final revisions to part 

707 is consistent with the interagency 

guidance. 70 FR 9127 (February 24, 

2005). 

Approximately 2,666 of the credit 

unions in the United States that must 

comply with TISA have assets of $10 

million or less and thus are considered 

small entities for purposes of the 

Regulatory Flexibility Act, based on 

2004 call report data. The Board 

believes that almost all small credit 

unions that offer accounts where 

overdraft or returned-item fees are 

imposed currently send periodic 

statements on those accounts, although 

the number of small credit unions that 

promote their overdraft services is 

unknown. For those credit unions that 

promote the payment of overdrafts in an 

advertisement, periodic statement 

disclosures will need to be revised to 

display aggregate overdraft and 

aggregate returned-item fees for the 

statement period and year to date. All 

small credit unions will have to review, 

and perhaps revise account-opening 

disclosures and marketing materials. 

The revisions to part 707 require all 

credit unions to provide more complete 

information to members regarding 

overdraft services. Account-opening 

disclosures and marketing materials 

would describe more completely how 

fees may be triggered. Credit unions that 

provide overdraft services must 

separately disclose on periodic 

statements the total dollar amount of 

fees and charges imposed on the 

account for paying overdrafts and the 

total dollar amount for returning items 

unpaid. These disclosures must be 

provided for the statement period and 

for the calendar year to date for each 

account to which the service is 

provided. Certain advertising practices 

are prohibited, and additional 

disclosures on advertisements of 

overdraft services are required. 

The Board is soliciting comment on 

how the burden of disclosures on credit 

unions could be minimized. The interim 

final rule limits the requirement to 

disclose aggregate totals for overdraft 

and returned-item fees for the statement 

period and the calendar year to date to 

credit unions that provide ad hoc 

payments of overdrafts or promote the 

payment of overdrafts in an 

advertisement, thereby encouraging the 

routine use of the service. It also 

specifies certain practices that would 

not trigger the new overdraft 

disclosures. The safe harbors provide 

additional certainty to credit unions in 

determining whether compliance with 

the rule is required in particular 

circumstances. Consistent with the rule 

requiring periodic statement 

disclosures, the interim final rule also 

provides safe harbors to specify 

circumstances when a credit union 

would not be required to provide 

additional advertising disclosures. 

Under the interim final rule, credit 

unions are permitted to provide an 

illustrative list of categories by which 

overdrafts may be created to generally 

eliminate the need to provide a changein-terms notice each time a new channel 

for creating overdrafts is added. The 

interim final rule also provides 

additional guidance regarding the types 

of fees that should be included in the 

total dollar amount of fees and charges 

imposed on the account for paying 

overdrafts and in the total dollar amount 

for returning items unpaid. 

IV. Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995, 44 U.S.C. 3501 

et seq., the Board has submitted the 

information collection requirements 

contained in this interim final rule to 

the Office of Management and Budget 

(OMB). The NCUA may not conduct or 

sponsor, and an organization is not 

required to respond to, this information 

collection unless it displays a currently 

valid OMB control number. The current 

OMB control number for the Truth in 

Savings program is 3133–0134. This 

information collection will be revised to 

include the requirements of this interim 

final rule. 

The collection of information that is 

revised by this rulemaking is found in 

12 CFR part 707 and Appendix C. This 

72898 Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Rules and Regulations 

collection is mandatory to evidence 

compliance with the requirements of 

part 707 and TISA. 15 U.S.C. 4301 et 

seq. Credit unions must retain records 

for twenty-four months. This regulation 

applies to all types of credit unions, not 

just federally-insured credit unions. 

The revisions provide that credit 

unions offering certain overdraft 

payment services must provide more 

complete information regarding those 

services. Account-opening disclosures 

and other marketing materials describe 

more completely how fees may be 

triggered. Credit unions that promote 

the payment of overdrafts must 

separately disclose on periodic 

statements the total dollar amount of 

fees and charges imposed on the 

account for paying overdrafts and the 

total dollar amount of fees charged to 

the account for returning items unpaid. 

These disclosures must be provided for 

the statement period and for the 

calendar year to date for each account 

to which an advertisement applies. 

Certain advertising practices are 

prohibited, and additional disclosures 

in advertisements for the payment of 

overdrafts are required. Although the 

interim final rule adds these 

requirements, it is expected that these 

revisions would not significantly 

increase the ongoing paperwork burden 

of credit unions. However, respondents 

would face a one-time burden to 

reprogram and update their systems to 

include these new notice requirements. 

There are an estimated 9,128 credit 

unions. The NCUA estimates that it will 

take the respondents, on average, 8 

hours or one business day to make these 

one-time system changes. Additionally, 

Respondents would also face a one-time 

burden to revise and update their 

advertising materials. NCUA estimates 

that it will take approximately 40 hours, 

one business week to update these 

materials. NCUA estimates respondents 

will incur a burden of 12,514,201 hours 

meeting the requirements of this interim 

final rule. NCUA estimates that the 

total, continuing annual burden for the 

Truth in Savings program to be 

12,076,057 hours. Prior to this interim 

final rule, NCUA estimated the annual 

burden to be 10,467,679 hours. The 

annual burden under this interim final 

rule will increase 1,608,378 burden 

hours. 

NCUA invites comment on: 

(1) The accuracy of NCUA’s estimate 

of the burden of the information 

collection; 

(2) Ways to minimize the burden of 

the information collection on credit 

unions, including the use of automated 

collection techniques or other forms of 

information technology; and 

(3) Estimates of capital or start-up 

costs and costs of operation, 

maintenance, and purchase of services 

to provide information. Interested may 

submit comments regarding the 

information collection requirements in 

this rule. Comments must be received 

within 30 days from the publication of 

this interim final rule. Include 

‘‘Comments on Part 707 Truth in 

Savings’’ in the comments header and 

send them to NCUA using one of the 

methods described above and to: NCUA 

Desk Officer, Office of Management and 

Budget, New Executive Office Building, 

Washington, DC 20503, Fax number: 

(202) 395–6974. 

List of Subjects in 12 CFR Part 707 

Advertising, Consumer protection, 

Credit unions, Reporting and 

recordkeeping requirements, Truth in 

savings. 

By the National Credit Union 

Administration Board on November 29, 2005. 

Mary F. Rupp, 

Secretary of the Board. 

■ For the reasons set forth in the 

preamble, the Board amends 12 CFR 

part 707 as set forth below: 

PART 707—TRUTH IN SAVINGS 

■ 1. The authority citation for part 707 

continues to read as follows: 

Authority: 12 U.S.C. 4311. 

■ 2. Section 707.2 is amended by 

revising paragraph (b) to read as follows: 

§ 707.2 Definitions. 

* * * * * 

(b) Advertisement means a 

commercial message, appearing in any 

medium, that promotes directly or 

indirectly: 

(1) The availability or terms of, or a 

deposit in, a new account; and 

(2) For purposes of § 707.8(a) and 

§ 707.11 of this part, the terms of, or a 

deposit in, a new or existing account. 

* * * * * 

■ 3. Section 707.6 is amended by 

republishing paragraph (b) introductory 

text and revising paragraph (b)(3) to 

read as follows: 

§ 707.6 Periodic statement disclosures. 

* * * * * 

(b) Statement disclosures. If a credit 

union mails or delivers a periodic 

statement, the statement must include 

the following disclosures: 

* * * * * 

(3) Fees imposed. Fees required to be 

disclosed under § 707.4(b)(4) of this part 

that were debited from the account 

during the statement period. The fees 

must be itemized by type and dollar 

amounts. Except as provided in 

§ 707.11(a)(1) of this part, when fees of 

the same type are imposed more than 

once in a statement period, a credit 

union may itemize each fee separately 

or group the fees together and disclose 

a total dollar amount for all fees of that 

type. 

* * * * * 

■ 4. Section 707.8 is amended by 

revising paragraph (a), and adding a 

new paragraph (f) to read as follows: 

§ 707.8 Advertising. 

(a) Misleading or inaccurate 

advertisements. An advertisement must 

not: 

(1) Be misleading or inaccurate or 

misrepresent a credit union’s account 

agreement; or 

(2) Refer to or describe an account as 

‘‘free’’ or ‘‘no cost’’ or contain a similar 

term if any maintenance or activity fee 

may be imposed on the account. The 

word ‘‘profit’’ must not be used in 

referring to dividends or interest paid 

on an account. 

* * * * * 

(f) Additional disclosures in 

connection with the payment of 

overdrafts. Credit unions that promote 

the payment of overdrafts in an 

advertisement must include in the 

advertisement the disclosures required 

by § 707.11(b) of this part. 

* * * * * 

■ 5. Section 707.11 is added to read as 

follows: 

§ 707.11 Additional disclosure 

requirements for credit unions advertising 

the payment of overdrafts. 

(a) Periodic statement disclosures. (1) 

Disclosure of Total Fees. (i) Except as 

provided in paragraph (a)(2) of this 

section, if a credit union promotes the 

payment of overdrafts in an 

advertisement, the credit union must 

separately disclose on each periodic 

statement: 

(A) The total dollar amount for all fees 

or charges imposed on the account for 

paying checks or other items when there 

are insufficient funds and the account 

becomes overdrawn; and 

(B) The total dollar amount for all fees 

imposed on the account for returning 

items unpaid. 

(ii) The disclosures required by this 

paragraph must be provided for the 

statement period and for the calendar 

year to date, for any account to which 

the advertisement applies. 

(2) Communications not triggering 

disclosure of total fees. The following 

communications by a credit union do 

not trigger the disclosures required by 

paragraph (a)(1) of this section: 

Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Rules and Regulations 72899 

(i) Promoting in an advertisement a 

service for paying overdrafts where the 

credit union’s payment of overdrafts 

will be agreed upon in writing and 

subject to part 226 of this title 

(Regulation Z); 

(ii) Communicating, whether by 

telephone, electronically, or otherwise, 

about the payment of overdrafts in 

response to a member-initiated inquiry 

about share accounts or overdrafts. 

Providing information about the 

payment of overdrafts in response to a 

balance inquiry made through an 

automated system, such as a telephone 

response machine, an automated teller 

machine (ATM), or a credit union’s 

Internet site, is not a response to a 

member-initiated inquiry for purposes 

of this paragraph; 

(iii) Engaging in an in-person 

discussion with a member; 

(iv) Making disclosures that are 

required by Federal or other applicable 

law; 

(v) Providing a notice or including 

information on a periodic statement 

informing a member about a specific 

overdrawn item or the amount the 

account is overdrawn; 

(vi) Including in a share account 

agreement a discussion of the credit 

union’s right to pay overdrafts; 

(vii) Providing a notice to a member, 

such as at an ATM, that completing a 

requested transaction may trigger a fee 

for overdrawing an account, or 

providing a general notice that items 

overdrawing an account may trigger a 

fee; or 

(viii) Providing informational or 

educational materials concerning the 

payment of overdrafts if the materials do 

not specifically describe the credit 

union’s overdraft service. 

(3) Time period covered by 

disclosures. A credit union must make 

the disclosures required by paragraph 

(a)(1) of this section for the first 

statement period that begins after a 

credit union advertises the payment of 

overdrafts. A credit union may disclose 

total fees imposed for the calendar year 

by aggregating fees imposed since the 

beginning of the calendar year, or since 

the beginning of the first statement 

period that year for which such 

disclosures are required. 

(4) Termination of promotions. 

Paragraph (a)(1) of this section becomes 

inapplicable with respect to a share 

account two years after the date of a 

credit union’s last advertisement 

promoting the payment of overdrafts 

related to that account. 

(5) Acquired accounts. A credit union 

that acquires an account must thereafter 

provide the disclosures required by 

paragraph (a)(1) of this section for the 

first statement period that begins after 

the credit union promotes the payment 

of overdrafts in an advertisement that 

applies to the acquired account. If 

disclosures under paragraph (a)(1) of 

this section are required for the acquired 

account, the credit union may, but is not 

required to, include fees imposed before 

acquisition of the account. 

(b) Advertising disclosures for 

overdraft services. (1) Disclosures. 

Except as provided in paragraphs 

(b)(2),(b)(3), and (b)(4) of this section, 

any advertisement promoting the 

payment of overdrafts must disclose in 

a clear and conspicuous manner: 

(i) The fee or fees for the payment of 

each overdraft; 

(ii) The categories of transactions for 

which a fee for paying an overdraft may 

be imposed; 

(iii) The time period by which the 

member must repay or cover any 

overdraft; and 

(iv) The circumstances under which 

the credit union will not pay an 

overdraft. 

(2) Communications about the 

payment of overdrafts not subject to 

additional advertising disclosures. 

Paragraph (b)(1) of this section does not 

apply to: 

(i) An advertisement promoting a 

service where the credit union’s 

payment of overdrafts will be agreed 

upon in writing and subject to part 226 

of this title (Regulation Z); 

(ii) A communication by a credit 

union about the payment of overdrafts 

in response to a member-initiated 

inquiry about share accounts or 

overdrafts. Providing information about 

the payment of overdrafts in response to 

a balance inquiry made through an 

automated system, such as a telephone 

response machine, ATM, or a credit 

union’s Internet site, is not a response 

to a member-initiated inquiry for 

purposes of this paragraph; 

(iii) An advertisement made through 

broadcast or electronic media, such as 

television or radio; 

(iv) An advertisement made on 

outdoor media, such as billboards; 

(v) An ATM receipt; 

(vi) An in-person discussion with a 

member; 

(vii) Disclosures required by Federal 

or other applicable law; 

(viii) Information included on a 

periodic statement or a notice informing 

a member about a specific overdrawn 

item or the amount the account is 

overdrawn; 

(ix) A term in a share account 

agreement discussing the credit union’s 

right to pay overdrafts; 

(x) A notice provided to a member, 

such as at an ATM, that completing a 

requested transaction may trigger a fee 

for overdrawing an account, or a general 

notice that items overdrawing an 

account may trigger a fee; or 

(xi) Informational or educational 

materials concerning the payment of 

overdrafts if the materials do not 

specifically describe the credit union’s 

overdraft service. 

(3) Exception for ATM screens and 

telephone response machines. The 

disclosures described in paragraphs 

(b)(1)(ii) and (b)(1)(iv) of this section are 

not required in connection with any 

advertisement made on an ATM screen 

or using a telephone response machine. 

(4) Exception for indoor signs. 

Paragraph (b)(1) of this section does not 

apply to advertisements for the payment 

of overdrafts on indoor signs as 

described by § 707.8(e)(2) of this part, 

provided that the sign contains a clear 

and conspicuous statement that fees 

may apply and that members should 

contact an employee for further 

information about applicable fees and 

terms. For purposes of this paragraph 

(b)(4), an indoor sign does not include 

an ATM screen. 

■ 6. Amend Appendix C to part 707 as 

follows: 

■ a. Under § 707.2 Definitions, under (b) 

Advertisement, the introductory 

sentence to paragraph 2 is republished, 

paragraph 2.iv is revised, and new 

paragraphs 2.v through 2.vii are added. 

■ b. Under § 707.4 Account disclosures, 

under (b)(4) Fees, a new paragraph 6 is 

added. 

■ c. Under § 707.6 Periodic statement 

disclosures, under (b)(3) Fees imposed, 

paragraph 2 is revised. 

■ d. Under § 707.8 Advertising, under 

(a) Misleading or inaccurate 

advertisements, a new paragraph 10 is 

added. 

■ e. A new § 707.11 Additional 

disclosure requirements for credit 

unions advertising the payment of 

overdrafts, is added in numerical order. 

The additions and revisions read as 

follows: 

Appendix C To Part 707—Official Staff 

Interpretations 

* * * * * 

§ 707.2 Definitions. 

* * * * * 

(b) Advertisement 

* * * * * 

2. Other messages. Examples of 

messages that are not advertisements 

are—

* * * * * 

iv. For purposes of § 707.8(b) of this 

part through § 707.8(e) of this part, 

information given to members about 

72900 Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Rules and Regulations 

existing accounts, such as current rates 

recorded on a voice-response machine 

or notices for automatically renewable 

time account sent before renewal. 

v. Information about a particular 

transaction in an existing account. 

vi. Disclosures required by Federal or 

other applicable law. 

vii. A share account agreement. 

* * * * * 

§ 707.4 Account Disclosures. 

* * * * * 

(b) Content of account disclosures 

* * * * * 

(b)(4) Fees 

* * * * * 

6. Fees for overdrawing an account. 

Under § 707.4(b)(4) of this part, credit 

unions must disclose the conditions 

under which a fee may be imposed. In 

satisfying this requirement credit unions 

must specify the categories of 

transactions for which an overdraft fee 

may be imposed. An exhaustive list of 

transactions is not required. It is 

sufficient for a credit union to state that 

the fee applies to overdrafts ‘‘created by 

check, in-person withdrawal, ATM 

withdrawal, or other electronic means.’’

Disclosing a fee ‘‘for overdraft items’’

would not be sufficient. 

* * * * * 

§ 707.6 Periodic statement disclosures. 

* * * * * 

(b) Statement Disclosures 

* * * * * 

(b)(3) Fees imposed 

* * * * * 

2. Itemizing fees by type. In itemizing 

fees imposed more than once in the 

period, credit unions may group fees if 

they are the same type. See 

§ 707.11(a)(1) of this part regarding 

certain fees that must be grouped when 

a credit union promotes the payment of 

overdrafts. When fees of the same type 

are grouped together, the description 

must make clear that the dollar figure 

represents more than a single fee, for 

example, ‘‘total fees for checks written 

this period.’’ Examples of fees that may 

not be grouped together are—

i. Monthly maintenance and excessactivity fees. 

ii. ‘‘Transfer’’ fees, if different dollar 

amounts are imposed, such as $.50 for 

deposits and $1.00 for withdrawals. 

iii. Fees for electronic fund transfers 

and fees for other services, such as 

balance-inquiry or maintenance fees. 

iv. Fees for paying overdrafts and fees 

for returning checks or other items 

unpaid. 

* * * * * 

§ 707.8 Advertising. 

(a) Misleading or inaccurate 

advertisements 

* * * * * 

10. Examples. Examples of 

advertisements that would ordinarily be 

misleading, inaccurate, or misrepresent 

the deposit contract are: 

i. Representing an overdraft service as 

a ‘‘line of credit,’’ unless the service is 

subject to 12 CFR part 226 (Regulation 

Z). 

ii. Representing that the credit union 

will honor all checks or authorize 

payment of all transactions that 

overdraw an account, with or without a 

specified dollar limit, when the credit 

union retains discretion at any time not 

to honor checks or authorize 

transactions. 

iii. Representing that members with 

an overdrawn account can maintain a 

negative balance when the terms of the 

account’s overdraft service require 

members promptly to return the share 

account to a positive balance. 

iv. Describing a credit union’s 

overdraft service solely as protection 

against bounced checks when the credit 

union also permits overdrafts for a fee 

for overdrawing their accounts by other 

means, such as ATM withdrawals, debit 

card transactions, or other electronic 

fund transfers. 

v. Advertising an account-related 

service for which the credit union 

charges a fee in an advertisement that 

also uses the word ‘‘free’’ or ‘‘no cost’’

or a similar term to describe the 

account, unless the advertisement 

clearly and conspicuously indicates that 

there is a cost associated with the 

service. If the fee is a maintenance or 

activity fee under § 707.8(a)(2) of this 

part, however, an advertisement may 

not describe the account as ‘‘free’’ or 

‘‘no cost’’ or contain a similar term even 

if the fee is disclosed in the 

advertisement. 

* * * * * 

§ 707.11 Additional disclosure 

requirements for credit unions advertising 

the payment of overdrafts. 

(a) Periodic statement disclosures. 

(a)(1) Disclosure of total fees. 

1. Examples of credit unions 

advertising the payment of overdrafts. A 

credit union would trigger the periodic 

statement disclosures if it: 

i. Promotes the credit union’s policy 

or practice of paying some overdrafts, 

unless the service would be subject to 

12 CFR part 226 (Regulation Z), in 

advertisements using broadcast media, 

brochures, telephone solicitations ,or 

electronic mail, or on Internet sites, 

ATM screens or receipts, billboards, or 

indoor signs. But see, § 707.11(a)(2) of 

this part regarding communications 

about the payment of overdrafts that 

would not trigger periodic statement 

disclosures; 

ii. Includes a message on a periodic 

statement informing the member of an 

overdraft limit or the amount of funds 

available for overdrafts. For example, a 

credit union that includes a message on 

a periodic statement informing the 

member of a $500 overdraft limit or that 

the member has $300 remaining on the 

overdraft limit, is promoting an 

overdraft service; 

iii. Discloses an overdraft limit or 

includes the dollar amount of an 

overdraft limit in a balance disclosed by 

any means, including on an ATM 

receipt or on an automated system, such 

as a telephone response machine, ATM 

screen, or the credit union’s Internet 

site. 

2. Applicability of periodic statement 

disclosures. The periodic statement 

disclosures apply to all accounts for 

which the credit union has advertised 

the payment of overdrafts. For example, 

if an advertisement promoting the 

payment of overdrafts specifies the 

types of accounts to which the 

advertisement applies, the credit union 

would not be required to provide the 

periodic statement disclosures for other 

types of accounts offered by the credit 

union for which the advertisement does 

not apply. If an advertisement does not 

specify the types of accounts to which 

it applies, the advertisement would be 

considered to apply to all of a credit 

union’s share accounts. 

3. Transfer services. The overdraft 

services covered by § 707.11(a)(1) of this 

part do not include a service providing 

for the transfer of funds from another 

share account of the member to permit 

the payment of items without creating 

an overdraft, even if a fee is charged for 

the transfer. 

4. Fees for paying overdrafts. A credit 

union that advertises the payment of 

overdrafts must disclose on periodic 

statements a total dollar amount for all 

fees charged to the account for paying 

overdrafts. The credit union must 

disclose separate totals for the statement 

period and for the calendar year to date. 

The total dollar amount includes peritem fees as well as interest charges, 

daily or other periodic fees, or fees 

charged for maintaining an account in 

overdraft status, whether the overdraft is 

by check or by other means. It also 

includes fees charged when there are 

insufficient funds because previously 

deposited funds are subject to a hold or 

are uncollected. It does not include fees 

for transferring funds from another 

account to avoid an overdraft, or fees 

Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Rules and Regulations 72901 

charged when the credit union has 

previously agreed in writing to pay 

items that overdraw the account and the 

service is subject to 12 CFR part 226 

(Regulation Z). 

5. Fees for returning items unpaid. A 

credit union that advertises the payment 

of overdrafts must disclose a total dollar 

amount for all fees charged to the 

account for dishonoring or returning 

checks or other items drawn on the 

account. The credit union must disclose 

separate totals for the statement period 

and for the calendar year to date. Fees 

imposed when deposited items are 

returned are not included. 

6. Waived fees. In some cases, a credit 

union may provide a statement for the 

current period reflecting that fees 

imposed during a previous period were 

waived and credited to the account. 

Credit unions may, but are not required 

to, reflect the adjustment in the total for 

the calendar year to date. Such 

adjustments should not affect the total 

disclosed for fees imposed during the 

current statement period. 

7. Totals for the calendar year to date. 

Some credit unions’ statement periods 

do not coincide with the calendar 

month. In such cases, the credit union 

may disclose a calendar year-to-date 

total by aggregating fees for 12 monthly 

cycles, starting with the period that 

begins during January and finishing 

with the period that begins during 

December. For example, if statement 

periods begin on the 10th day of each 

month, the statement covering 

December 10, 2006 through January 9, 

2007 may disclose the year-to-date total 

for fees imposed from January 10, 2006 

through January 9, 2007. Alternatively, 

the credit union could provide a 

statement for the cycle ending January 

9, 2007, showing the year-to-date total 

for fees imposed January 1, 2006 

through December 31, 2006. 

8. Itemization of fees. A credit union 

may itemize each fee in addition to 

providing the disclosures required by 

§ 707.11(a)(1) of this part. 

(a)(3) Time period covered by 

disclosures 

1. Periodic statement disclosures. The 

disclosures under § 707.11(a)(1) of this 

part must be included on periodic 

statements provided by a credit union 

reflecting the first statement period that 

begins after the credit union advertises 

the payment of overdrafts. For example, 

if a member’s statement period typically 

closes on the 15th of each month, a 

credit union that promotes the payment 

of overdrafts on July 1, 2006, must 

provide the disclosures required by 

§ 707.11(a)(1) of this part on subsequent 

periodic statements for that member 

beginning with the statement reflecting 

the period from July 16, 2006 through 

August 15, 2006. Only credit unions 

that promote the payment of overdrafts 

in an advertisement on or after July 1, 

2006 must provide disclosures on 

periodic statements under § 707.11(a)(1) 

of this part. 

(a)(5) Acquired accounts 

1. Examples. As provided in 

§ 707.11(a)(5) of this part, a credit union 

that acquires share accounts through 

merger must provide the disclosures 

required by paragraph (a)(1) of this 

section for the first statement period 

that begins after the credit union 

promotes the payment of overdrafts in 

an advertisement that applies to the 

acquired account. If the acquiring credit 

union does not advertise the payment of 

overdrafts, or the advertisement does 

not apply to the acquired accounts, the 

credit union need not provide the 

disclosures required by § 707.11(a)(1) of 

this part for the acquired accounts, even 

if the credit union that previously held 

the accounts advertised the payment of 

overdrafts with respect to those 

accounts. 

(b) Advertising disclosures in 

connection with overdraft services 

1. Examples of credit unions 

promoting the payment of overdrafts. A 

credit union must include the 

advertising disclosures in § 707.11(b)(1) 

of this part if the credit union: 

i. Promotes the credit union’s policy 

or practice of paying overdrafts, unless 

the service would be subject to 12 CFR 

part 226 (Regulation Z). This includes 

advertisements using print media such 

as newspapers or brochures, telephone 

solicitations, electronic mail, or 

messages posted on an Internet site. But 

see, § 707.11(b)(2) of this part for 

communications that are not subject to 

the additional advertising disclosures; 

ii. Includes a message on a periodic 

statement informing the member of an 

overdraft limit or the amount of funds 

available for overdrafts. For example, a 

credit union that includes a message on 

a periodic statement informing the 

member of a $500 overdraft limit or that 

the member has $300 remaining on the 

overdraft limit, is promoting an 

overdraft service. 

iii. Discloses an overdraft limit or 

includes the dollar amount of an 

overdraft limit in a balance disclosed on 

an automated system, such as a 

telephone response machine, ATM 

screen, or the credit union’s Internet 

site. See, however, § 707.11(b)(3) of this 

part. 

2. Transfer services. The overdraft 

services covered by § 707.11(b)(1) of this 

part do not include a service providing 

for the transfer of funds from another 

share account of the member to permit 

the payment of items without creating 

an overdraft, even if a fee is charged for 

the transfer. 

3. Electronic media. The exception for 

advertisements made through broadcast 

or electronic media, such as television 

or radio, does not apply to 

advertisements posted on a credit 

union’s Internet site, on an ATM screen, 

provided on telephone response 

machines, or sent by electronic mail. 

4. Fees. The fees that must be 

disclosed under § 707.11(b)(1) of this 

part include per-item fees as well as 

interest charges, daily or other periodic 

fees, and fees charged for maintaining 

an account in overdraft status, whether 

the overdraft is by check or by other 

means. The fees also include fees 

charged when there are insufficient 

funds because previously deposited 

funds are subject to a hold or are 

uncollected. The fees do not include 

fees for transferring funds from another 

account to avoid an overdraft or fees 

charged when the credit union has 

previously agreed in writing to pay 

items that overdraw the account and the 

service is subject to 12 CFR part 226 

(Regulation Z). 

5. Categories of transactions. An 

exhaustive list of transactions is not 

required. Disclosing that a fee may be 

imposed for covering overdrafts 

‘‘created by check, in-person 

withdrawal, ATM withdrawal, or other 

electronic means would satisfy the 

requirements of § 707.11(b)(1)(ii) of this 

part where the fee may be imposed in 

these circumstances. See comment 

4(b)(4)-5 of this part. 

6. Time period to repay. If a credit 

union reserves the right to require a 

member to pay an overdraft 

immediately or on demand instead of 

affording members a specific time 

period to establish a positive balance in 

the account, a credit union may comply 

with § 707.11(b)(1)(iii) of this part by 

disclosing this fact. 

7. Circumstances for nonpayment. A 

credit union must describe the 

circumstances under which it will not 

pay an overdraft. It is sufficient to state, 

as applicable: ‘‘Whether your overdrafts 

will be paid is discretionary and we 

reserve the right not to pay. For 

example, we typically do not pay 

overdrafts if your account is not in good 

standing, or you are not making regular 

deposits, or you have too many 

overdrafts.’’

8. Advertising an account as ‘‘free.’’ If 

the advertised account-related service is 

an overdraft service subject to the 

requirements of § 707.11(b)(1) of this 

72902 Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Rules and Regulations 

part, credit unions must disclose the fee 

or fees for the payment of each 

overdraft, not merely that a cost is 

associated with the overdraft service, as 

well as other required information. 

Compliance with comment 8(a)—10.v is 

not sufficient. 

* * * * * 

[FR Doc. 05–23711 Filed 12–7–05; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2005–23187; Directorate 

Identifier 2005–NM–203–AD; Amendment 

39–14397; AD 2005–25–04] 

RIN 2120–AA64 

Airworthiness Directives; Empresa 

Brasileira de Aeronautica S.A. 

(EMBRAER) Model EMB–135BJ, 

–135ER, –135KE, –135KL, –135LR, 

–145, –145ER, –145MR, –145LR, 

–145XR, –145MP, and –145EP 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule; request for 

comments. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for all 

EMBRAER Model EMB–135BJ, –135ER, 

–135KE, –135KL, –135LR, –145, 

–145ER, –145MR, –145LR, –145XR, 

–145MP, and –145EP airplanes. This AD 

requires reviewing the airplane 

maintenance records for recent reports 

of vibration from the tail section or 

rudder pedals. This AD also requires 

repetitively inspecting the skin, 

attachment fittings, and control rods of 

rudder II to detect cracking, loose parts, 

wear, or damage; and related 

investigative/corrective actions if 

necessary. This AD results from reports 

of rudder vibration due to wear. We are 

issuing this AD to prevent failure of 

multiple hinge fittings, which could 

result in severe vibration, and to prevent 

failure of the rudder control rods, which 

could result in jamming of the rudder II; 

and possible structural failure and 

reduced controllability of the airplane. 

DATES: This AD becomes effective 

December 23, 2005. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in the AD 

as of December 23, 2005. 

We must receive comments on this 

AD by February 6, 2006. 

ADDRESSES: Use one of the following 

addresses to submit comments on this 

AD. 

• DOT Docket Web site: Go to 

http://dms.dot.gov and follow the 

instructions for sending your comments 

electronically. 

• Government-wide rulemaking Web 

site: Go to http://www.regulations.gov 

and follow the instructions for sending 

your comments electronically. 

• Mail: Docket Management Facility; 

U.S. Department of Transportation, 400 

Seventh Street, SW., Nassif Building, 

room PL–401, Washington, DC 20590. 

• Fax: (202) 493–2251. 

• Hand Delivery: Room PL–401 on 

the plaza level of the Nassif Building, 

400 Seventh Street, SW., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

Contact Empresa Brasileira de 

Aeronautica S.A. (EMBRAER), P.O. Box 

343—CEP 12.225, Sao Jose dos 

Campos—SP, Brazil, for service 

information identified in this AD. 

FOR FURTHER INFORMATION CONTACT: Dan 

Rodina, Aerospace Engineer, 

International Branch, ANM–116, 

Transport Airplane Directorate, FAA, 

1601 Lind Avenue, SW., Renton, 

Washington 98055–4056; telephone 

(425) 227–2125; fax (425) 227–1149. 

SUPPLEMENTARY INFORMATION: 

Discussion 

The Departmento de Aviacao Civil 

(DAC), which is the airworthiness 

authority for Brazil, notified us that an 

unsafe condition may exist on all 

EMBRAER Model EMB–135BJ, –135ER, 

–135KE, –135KL, –135LR, –145, 

–145ER, –145MR, –145LR, –145XR, 

–145MP, and –145EP airplanes. The 

DAC advises that it has received reports 

of rudder vibration. Investigation 

revealed wear in the attachment flange 

bushings of rudder II that progressed 

over the hinge fittings of rudder II. 

Investigation also revealed excessive 

freeplay of the end-to-rod attachment of 

the lower control rod on rudder II. 

Failure of multiple hinge fittings could 

result in severe vibration, and failure of 

the rudder control rods could result in 

jamming of the rudder II. These 

conditions, if not corrected, could result 

in possible structural failure and 

reduced controllability of the airplane. 

Relevant Service Information 

EMBRAER has issued Alert Service 

Bulletins 145LEG–55–A010, dated 

August 26, 2005, and 145–55–A036, 

Revision 01, dated September 5, 2005. 

The following table identifies the 

actions described in the service 

bulletins, which are divided into six 

parts. 

SERVICE BULLETIN PROCEDURES

Part Action Condition Related investigative and corrective actions 

I .................... Visual inspection of the rudder 

II skin.

Crack ....................................... Repair or replacement of the affected area. 

Inspection of the rudder II control rods.Relative movement between a 

control rod and its rod end.

Replacement of the control rod. 

Detailed visual inspection of 

the rudder II attachment fittings.

Wear or damage at only one 

attachment.

Wear or damage at more than 

one attachment.

Part(s) II, III, IV, or V, as applicable, of the service bulletin. 

Parts II, III, IV, and V of the service bulletin. 

II–V ............... Dimensional inspection of 

hinge attachment points I, II, 

III, and IV.

Adequate measurements ........

Measurements within certain 

limits.

Measurements for the bushing 

less than certain limits.

Part VI of the service bulletin. 

Replacement of the bolt and/or bushing, and accomplishment 

of the remaining parts of the service bulletin. 

Repair as approved by EMBRAER. 

VI .................. Install washers in hinge fittings Group and modification status Installation as specified in Figure 4 of the service bulletin, or 

restoration of modified airplanes as specified in the airplane 

maintenance manual (AMM). 

Install washers in control rod 

assembly.

Modification status .................. Installation as specified in Figure 5 of the service bulletin, or 

restoration of modified airplanes as specified in the AMM.