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

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REGISTER issue of each week.

Rules and Regulations Federal Register

53841 

Vol. 75, No. 170 

Thursday, September 2, 2010 

1The effective date of the Dodd-Frank Act is July 

22, 2010, one day after its enactment. Although the 

SMSIA has been permanently increased, it is still 

subject to an inflation adjustment pursuant to 

subparagraph (F) of section 11(a)(1) of the Federal 

Deposit Insurance Act. 12 U.S.C. 1821(a)(1)(F). 

However, this inflation adjustment will not affect 

the level of the SMSIA in the foreseeable future 

because it will not take effect until the value of 

$100,000, inflation adjusted since 2005, exceeds the 

current SMSIA. 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Parts 740 and 745 

RIN 3133–AD78 

Display of Official Sign; Permanent 

Increase in Standard Maximum Share 

Insurance Amount 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Final rule. 

SUMMARY: President Obama signed into 

law the Dodd-Frank Wall Street Reform 

and Consumer Protection Act (DoddFrank Act) on July 21, 2010. Section 335 

of the Dodd-Frank Act amended the 

Federal Credit Union Act (FCU Act) to 

make permanent the standard maximum 

share insurance amount (SMSIA) of 

$250,000. NCUA is amending its share 

insurance and official sign regulations 

to conform to this statutory change. 

DATES: The rule is effective September 

2, 2010. The mandatory compliance 

date regarding the revisions to NCUA’s 

official sign rule, 12 CFR Part 740, is 

March 2, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Frank Kressman, Senior Staff Attorney, 

Office of General Counsel, 1775 Duke 

Street, Alexandria, Virginia 22314 or 

telephone (703) 518–6540. 

SUPPLEMENTARY INFORMATION: NCUA is 

amending its Part 745 share insurance 

regulations and Part 740 official sign 

regulations to reflect Congress’ action 

making permanent the increase in the 

SMSIA from $100,000 to $250,000. 

A. Background 

The Emergency Economic 

Stabilization Act of 2008 temporarily 

increased the SMSIA from $100,000 to 

$250,000 through December 31, 2009. 

Public Law 110–343 (Oct. 3, 2008). On 

October 15, 2008, NCUA issued an 

interim final rule amending its share 

insurance regulations to reflect that 

temporary increase. 73 FR 62856 

(October 22, 2008). On May 20, 2009, 

the President signed the Helping 

Families Save Their Homes Act of 2009 

(‘‘Helping Families Act’’) which, among 

other things, extended the temporary 

increase in the SMSIA from December 

31, 2009 to December 31, 2013. Public 

Law 111–22 (May 20, 2009). On October 

22, 2009, NCUA issued a final rule 

which, among other things, amended its 

share insurance regulations to reflect 

this extension. 74 FR 55747 (October 29, 

2009). On July 21, 2010, the President 

signed the Dodd-Frank Act which, 

among other things, made permanent 

the increase in the SMSIA from 

$100,000 to $250,000. Public Law 111– 

203 (July 21, 2010).1

Part 740 of NCUA’s regulations 

requires that each insured credit union 

continuously display an official NCUA 

sign. The official sign informs members 

of the minimum amount of share 

insurance coverage to which they are 

entitled and states that the insurance is 

backed by the full faith and credit of the 

United States Government. Because the 

SMSIA of $250,000 has been temporary 

until the recent enactment of the DoddFrank Act, NCUA’s current official sign 

regulation has provided insured credit 

unions with maximum flexibility in 

displaying the sign. 12 CFR 740.4. 

Specifically, § 740.4 currently permits 

insured credit unions the options to: 

(1) Continue to display the version of 

the official sign reflecting the $100,000 

limit; (2) display any other version of 

the official sign distributed or approved 

by NCUA and appearing on NCUA’s 

official Web site that reflects the 

increase to $250,000; or (3) alter by 

hand or otherwise the $100,000 sign to 

make it reflect the increase to $250,000 

provided the altered sign is legible and 

otherwise complies with Part 740. 

B. The Final Rule 

1. Section 745.1—Share Insurance 

Definitions 

The final rule amends NCUA’s share 

insurance regulation by defining the 

SMSIA as $250,000 on a permanent 

basis as mandated by the Dodd-Frank 

Act. 

2. Section 740.4—NCUA’s Official Sign 

The final rule amends NCUA’s official 

sign rule to reflect the permanent 

increase in the SMSIA. The official sign 

will continue to have the same size and 

design. The only revision is replacing 

‘‘$100,000’’ with ‘‘$250,000’’ on the sign. 

This amendment also is in response to 

the Dodd-Frank Act. 

To ensure credit union members are 

made aware of the permanent $250,000 

limit, insured credit unions should 

obtain and display the new official sign 

as promptly as possible, but in no event 

later than the mandatory compliance 

date discussed below. After the 

mandatory compliance date, insured 

credit unions may only display the 

revised official sign reflecting the 

$250,000 limit. Insured credit unions 

may not continue to display signs 

reflecting the $100,000 limit nor may 

they continue to display signs that 

originally reflected the $100,000 limit 

that have been altered by hand or 

otherwise to reflect the $250,000 limit. 

NCUA is aware, from previous 

experience, that putting a revised 

official sign in place can be a disruptive 

process for credit unions. NCUA 

recognizes the need to balance easing 

that burden with the importance of 

informing members of the increased 

insurance coverage. 

Accordingly, an insured credit union 

will be required to replace the old 

version of the official sign with the 

revised official sign at required 

locations such as each station or 

window where the credit union 

normally receives insured funds or 

deposits in its principal place of 

business and all of its branches and on 

its internet page where it accepts 

deposits or opens accounts by March 2, 

2011, which is six months from the 

effective date of this rule. Additionally, 

a credit union must replace the old 

version of the official sign with the 

revised official sign on each document 

where the credit union has chosen to 

include the official sign, including 

advertisements, marketing and 


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53842 Federal Register / Vol. 75, No. 170 / Thursday, September 2, 2010 / Rules and Regulations 

promotional materials, disclosures, and 

others by that same date. NCUA believes 

six months is sufficient time for an 

insured credit union to replace physical 

and internet signs and deplete its 

stockpiles of other printed advertising 

materials. NCUA also believes that 

many credit unions are already using 

official signs and printed advertising 

materials reflecting the $250,000 limit 

as permitted by § 740.4. 

NCUA will provide insured credit 

unions with an initial supply of the 

revised official sign with a blue 

background and white lettering at no 

cost and has already made a 

downloadable graphic of the revised 

official sign available on the agency 

Web site for credit unions to use on 

their own Web sites. An insured credit 

union may continue to purchase signs 

from a commercial supplier or develop 

its own and use any color scheme it 

chooses so long as the sign is legible and 

otherwise complies with Part 740. 

12 CFR 740.4(b)(2). 

C. Administrative Procedure Act 

NCUA believes that good cause exists 

for issuing the final rule without an 

opportunity for public comment, 

pursuant to section 553(b)(3)(B) of the 

Administrative Procedure Act (APA), 

because seeking public comment under 

these circumstances is ‘‘unnecessary,’’ 

‘‘impracticable,’’ and ‘‘contrary to the 

public interest.’’ 5 U.S.C. 553(b)(3)(B). 

NCUA also finds good cause for issuing 

the final rule without a 30-day delayed 

effective date, pursuant to section 

553(d)(3) of the APA. 

The Dodd-Frank Act amends section 

207(k)(5) of the FCU Act, 12 U.S.C. 

1787(k)(5), to permanently increase the 

SMSIA to $250,000. The final rule 

makes conforming amendments to 

NCUA’s regulations to reflect this 

statutory change. None of the other 

regulations affecting the calculation of 

share insurance are affected by the final 

rule. 

The final rule only amends NCUA’s 

definition of SMSIA to conform to the 

language of the amended FCU Act and 

conforms the official NCUA sign to be 

consistent with those provisions. In this 

circumstance, NCUA has no rulemaking 

discretion that could be informed by the 

APA’s notice and comment process. 

Accordingly, NCUA finds that notice 

and comment procedures are 

‘‘unnecessary’’ and that the ‘‘good cause’’ 

exception to the APA’s notice and 

comment requirement applies. See, e.g., 

Gray Panthers Advocacy Comm. v. 

Sullivan, 936 F.2d 1284, 1290–92 (DC 

Cir. 1991) (regulations that ‘‘either 

restate or paraphrase the detailed 

requirements’’ of a self-executing statute 

do not require notice and comment); 

Nat’l Customs Brokers & Forwarders 

Ass’n v. United States, 59 F.3d 1219, 

1223–24 (Fed. Cir. 1995) (notice and 

comment unnecessary where Congress 

directed agency to change regulations 

and public would benefit from 

amendments). 

Additionally, a finding of good cause 

is warranted because it would be 

‘‘impracticable’’ and ‘‘contrary to the 

public interest’’ to delay the effective 

date of this rule in order to seek public 

comment on the revision. Because the 

revision to the SMSIA was effective one 

day after enactment of the Dodd-Frank 

Act, it is in the public interest for NCUA 

to take immediate action to make credit 

union members aware of the permanent 

increase in share insurance coverage. A 

delay in taking action would be 

detrimental to this goal, and therefore, 

complying with formal notice and 

comment procedures is ‘‘impracticable’’ 

and ‘‘contrary to the public interest.’’ 

Finally, a finding of good cause for 

waiving the requirement of a 30-day 

delayed effective date is warranted 

because of the need to provide 

immediate guidance to credit union 

members. Timely displaying of the new 

official sign will provide this. Also, 

delaying the effective date is 

unnecessary because the only provision 

of the final rule requiring credit unions 

to take action will not be enforced for 

six months after the rule’s effective date, 

which is when credit unions must 

comply with the rule. 

D. Regulatory Procedures 

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 (primarily 

those under ten million dollars in 

assets). This rule will not have a 

significant economic impact on a 

substantial number of small credit 

unions, and therefore, no regulatory 

flexibility analysis is required. 

Small Business Regulatory Enforcement 

Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act (SBREFA) of 

1996, Public Law 104–121, provides 

generally for congressional review of 

agency rules. A reporting requirement is 

triggered in instances where NCUA 

issues a final rule as defined by Section 

551 of the APA. 5 U.S.C. 551. The Office 

of Information and Regulatory Affairs, 

an office within the Office of 

Management and Budget, is currently 

reviewing this rule, and NCUA 

anticipates it will determine that, for 

purposes of SBREFA, this is not a major 

rule. 

Paperwork Reduction Act 

The final rule will revise NCUA’s 

share insurance and official sign 

regulations. It will not involve any new 

collections of information pursuant to 

the Paperwork Reduction Act. 44 U.S.C. 

3501 et seq. NCUA has determined that 

the amendments will not increase 

paperwork requirements and a 

paperwork reduction analysis is not 

required. 

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, 

NCUA, an independent regulatory 

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

voluntarily complies with the executive 

order. This final rule will not have a 

substantial direct effect on the states, on 

the relationship between the national 

government and the states, or on the 

distribution of power and 

responsibilities among the various 

levels of government. NCUA has 

determined that this final 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 final 

rule will not affect family well-being 

within the meaning of section 654 of the 

Treasury and General Government 

Appropriations Act, 1999, Public Law 

105–277, 112 Stat. 2681 (1998). 

List of Subjects 

12 CFR Part 740 

Advertisements, Credit unions, Signs 

and symbols. 

12 CFR Part 745 

Credit unions, Share insurance. 

By the National Credit Union 

Administration Board, this 25th day of 

August 2010. 

Linda K. Dent, 

Acting Secretary of the Board. 

■ For the reasons discussed above, 

NCUA amends 12 CFR Parts 740 and 

745 as follows: 


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Federal Register / Vol. 75, No. 170 / Thursday, September 2, 2010 / Rules and Regulations 53843 

PART 740—ACCURACY OF 

ADVERTISING AND NOTICE OF 

INSURED STATUS 

■ 1. The authority citation for Part 740 

continues to read as follows: 

Authority: 12 U.S.C. 1766, 1781, 1789. 

■ 2. Section 740.4 is amended by 

revising the image in paragraph (b) 

introductory text and by removing the 

last sentence of paragraph (b)(1). 

§ 740.4 Requirements for the official sign. 

* * * * * 

(b) * * * 

* * * * * 

PART 745—SHARE INSURANCE AND 

APPENDIX 

■ 3. The authority citation for Part 745 

continues to read as follows: 

Authority: 12 U.S.C. 1752(5), 1757, 1765, 

1766, 1781, 1782, 1787, 1789. 

■ 4. Section 745.1(e) is revised to read 

as follows: 

§ 745.1 Definitions. 

* * * * * 

(e) The term ‘‘standard maximum 

share insurance amount,’’ referred to as 

the ‘‘SMSIA’’ hereafter, means $250,000 

adjusted pursuant to subparagraph (F) of 

section 11(a)(1) of the Federal Deposit 

Insurance Act (12 U.S.C. 1821(a)(1)(F)). 

[FR Doc. 2010–21864 Filed 9–1–10; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2010–0481; Directorate 

Identifier 2009–NM–192–AD; Amendment 

39–16406; AD 2010–17–14] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Model 737–100 and –200 

Series Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for certain 

Model 737–100 and –200 series 

airplanes. This AD requires repetitive 

inspections for cracking and damaged 

fasteners of certain fuselage frames and 

stub beams, and corrective actions if 

necessary. For certain airplanes, this AD 

also requires repetitive inspections for 

cracking of the inboard chord fastener 

hole of the frame at body station 639, 

stringer S–16, and corrective actions if 

necessary. For certain airplanes, this AD 

also requires an inspection to determine 

the edge margin of the lower chord. For 

airplanes with a certain short edge 

margin, this AD requires repetitive 

inspections for cracking, and corrective 

actions if necessary; replacing the lower 

chord terminates the repetitive 

inspections. This AD requires an 

eventual preventive modification. For 

certain airplanes, doing the 

modification or a repair terminates the 

repetitive inspections for the repaired or 

modified frame only. For airplanes on 

which the modification or repair is done 

at certain body stations, this AD 

requires repetitive inspections for 

cracking of certain frame webs and 

inner and outer chords, and corrective 

actions if necessary. For certain other 

airplanes, this AD requires a 

modification which includes reinforcing 

the body frame inner chords, replacing 

the stub beam upper chords and attach 

angles, and reinforcing the stub beam 

web. This AD results from reports of 

fatigue cracks at certain frame sections, 

in addition to stub beam cracking, 

caused by high flight cycle stresses from 

both pressurization and maneuver load. 

We are issuing this AD to detect and 

correct fatigue cracking of certain 

fuselage frames and stub beams, and 

possible severed frames, which could 

result in reduced structural integrity of 

the frames. This reduced structural 

integrity can increase loading in the 

fuselage skin, which will accelerate skin 

crack growth and result in rapid 

decompression of the fuselage. 

DATES: This AD is effective October 7, 

2010. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in the AD 

as of October 7, 2010. 

ADDRESSES: For service information 

identified in this AD, contact Boeing 

Commercial Airplanes, Attention: Data 

& Services Management, P.O. Box 3707, 

MC 2H–65, Seattle, Washington 98124– 

2207; telephone 206–544–5000, 

extension 1, fax 206–766–5680; e-mail 

me.boecom@boeing.com; Internet 

https://www.myboeingfleet.com. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Management Facility between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The AD 

docket contains this AD, the regulatory 

evaluation, any comments received, and 

other information. The address for the 

Docket Office (telephone 800–647–5527) 


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