Federal Register / Vol. 75, No. 190 / Friday, October 1, 2010 / Proposed Rules 60651 

annuity computation under 5 U.S.C. 

8415(d). 

(f) While an employee who does not 

hold a primary or secondary position is 

detailed or temporarily promoted to 

such a position, the additional 

withholdings and agency contributions 

will not be made. 

(g) While an employee who holds a 

primary or secondary position is 

detailed or temporarily promoted to a 

position that is not a primary or 

secondary position, the additional 

withholdings and agency contributions 

will continue to be made. 

§ 842.1006 Mandatory separation. 

(a) Except as provided in paragraph 

(d) of this section, the mandatory 

separation provisions of 5 U.S.C. 8425 

apply to customs and border protection 

officers, including those in secondary 

positions. A mandatory separation 

under 5 U.S.C. 8425 is not an adverse 

action under part 752 of this chapter or 

a removal action under part 359 of this 

chapter. 

(b) Exemptions from mandatory 

separation are subject to the conditions 

set forth under 5 U.S.C. 8425. An 

exemption may be granted at the sole 

discretion of the head of the employing 

agency or by the President in 

accordance with 5 U.S.C. 8425(c). 

(c) In the event that an employee is 

separated mandatorily under 5 U.S.C. 

8425, or is separated for optional 

retirement under 5 U.S.C. 8412 (d) or 

(e), and OPM finds that all or part of the 

minimum service required for 

entitlement to immediate annuity was 

in a position that did not meet the 

requirements of a primary or secondary 

position and the conditions set forth in 

this subpart or, if applicable, in part 831 

of this chapter, such separation will be 

considered erroneous. 

(d) The customs and border protection 

officer mandatory separation provisions 

of 5 U.S.C. 8425 do not apply to an 

individual first appointed as a customs 

and border protection officer before July 

6, 2008. 

§ 842.1007 Review of decisions. 

(a) The final decision of the agency 

head denying an individual’s request for 

approval of a position as a rigorous, 

secondary, or air traffic controller 

position made under § 842.1003(a) may 

be appealed to the Merit Systems 

Protection Board under procedures 

prescribed by the Board. 

(b) The final decision of the agency 

head denying an individual coverage 

while serving in an approved secondary 

position because of failure to meet the 

conditions in § 842.1003(b) may be 

appealed to the Merit Systems 

Protection Board under procedures 

prescribed by the Board. 

§ 842.1008 Oversight of coverage 

determinations. 

(a) Upon deciding that a position is a 

customs and border protection officer, 

the U.S. Department of Homeland 

Security must notify OPM (Attention: 

Director, Planning and Policy Analysis, 

or such other official as may be 

designated) stating the title of each 

position, the occupational series of the 

position, the number of incumbents, 

whether the position is primary or 

secondary, and, if the position is a 

primary position, the established 

maximum entry age, if one has been 

established. The Director of OPM retains 

the authority to revoke the agency 

head’s determination that a position is 

a primary or secondary position. 

(b) The U.S. Department of Homeland 

Security must establish and maintain a 

file containing all coverage 

determinations made by the agency 

head under § 842.1003(a) and (b), and 

all background material used in making 

the determination. 

(c) Upon request by OPM, the U.S. 

Department of Homeland Security will 

make available the entire coverage 

determination file for OPM to audit to 

ensure compliance with the provisions 

of this subpart. 

(d) Upon request by OPM, the U.S. 

Department of Homeland Security must 

submit to OPM a list of all covered 

positions and any other pertinent 

information requested. 

§ 842.1009 Elections of Retirement 

Coverage, exclusions from retirement 

coverage, and proportional annuity 

computations. 

(a) Election of coverage. (1) The U.S. 

Department of Homeland Security must 

provide an individual who is a customs 

and border protection officer on 

December 26, 2007, with the 

opportunity to right to elect to be treated 

as a customs and border protection 

officer under section 535(a) and (b) of 

the Department of Homeland Security 

Appropriations Act, 2008, Public Law 

110–161, 121 Stat. 2042). 

(2) An election under this paragraph 

(a) is valid only if made on or before 

June 22, 2008. 

(3) An individual eligible to make an 

election under this paragraph (a) who 

fails to make such an election on or 

before June 22, 2008, is deemed to have 

elected to be treated as a customs and 

border protection officer for retirement 

purposes. 

(b) Exclusion from coverage. The 

provisions of this subpart and any other 

specific reference to customs and border 

protection officers in this part do not 

apply to employees who on December 

25, 2007, were law enforcement officers, 

under subpart H of this part or subpart 

I of part 831, within U.S. Customs and 

Border Protection. These employees 

cannot elect to be treated as a customs 

and border protection officer under 

paragraph (a), nor can they be deemed 

to have made such an election. 

(c) Proportional annuity computation. 

The annuity of an employee serving in 

a primary or secondary customs and 

border protection officer position on 

July 6, 2008, must, to the extent that its 

computation is based on service 

rendered as a customs and border 

protection officer on or after that date, 

be at least equal to the amount that 

would be payable— 

(1) To the extent that such service is 

subject to the Civil Service Retirement 

System, by applying section 8339(d) of 

title 5, United States Code, with respect 

to such service; and 

(2) To the extent such service is 

subject to the Federal Employees’ 

Retirement System, by applying section 

8415(d) of title 5, United States Code, 

with respect to such service. 

[FR Doc. 2010–24496 Filed 9–30–10; 8:45 am] 

BILLING CODE 6325–39–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 704 

RIN 3133–AD80 

Corporate Credit Unions 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Proposed Interpretive Ruling 

and Policy Statement 10–XX. 

SUMMARY: The NCUA Board is 

proposing to adopt an Interpretive 

Ruling and Policy Statement (IRPS) 

setting forth the requirements and 

process for chartering corporate federal 

credit unions. 

DATES: Comments must be received on 

or before November 1, 2010. 

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/Resources/ 

RegulationsOpinionsLaws/ 

ProposedRegulations.aspx. Follow the 

instructions for submitting comments. 

• E-mail: Address to 

regcomments@ncua.gov. Include ‘‘[Your 


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name] Comments on ‘‘Notice of 

Proposed Rulemaking for Corporate 

FCU Chartering’’ 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/ 

Resources/RegulationsOpinionsLaws/ 

ProposedRegulations.aspx 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) 518–6546 or send an e-mail to 

OGCMail@ncua.gov. 

FOR FURTHER INFORMATION CONTACT: Lisa 

Henderson, Staff Attorney, Office of 

General Counsel, at the address above or 

telephone: (703) 518–6540; or Dave 

Shetler, Deputy Director, Office of 

Corporate Credit Unions, at the address 

above or telephone: (703) 518–6640. 

SUPPLEMENTARY INFORMATION: 

A. Background 

NCUA recently finalized changes to 

its Corporate Credit Union Rule, 12 CFR 

part 704. These changes, as well as 

NCUA’s other efforts to resolve the 

problems created by the legacy assets 

remaining in the corporate credit union 

system, are likely to result in a 

fundamental restructuring of the 

corporate credit union system. As part 

of this restructuring, NCUA believes 

that some groups of natural person 

credit unions may wish to form new 

corporate credit unions. 

NCUA first issued guidance on 

chartering corporate federal credit 

unions (corporate FCUs) in 1982, but 

withdrew this guidance and never 

reissued it. See NCUA Interpretive 

Ruling and Policy Statement (IRPS) 82– 

6. In light of the impending changes to 

the corporate system, NCUA is now 

reissuing chartering guidance in the 

form of a new proposed IRPS. The 

proposed IRPS explains the 

requirements for prospective new 

corporate FCUs and NCUA’s standards 

for evaluating applications and will 

assist credit union officials in assessing 

the feasibility of a new corporate 

charter. The proposed IRPS also lists 

timeframes for NCUA action on 

corporate charter applications. 

The proposal requires charter 

applicants submit various information 

to NCUA, including: 

• A detailed business plan; 

• NCUA Form 4001, the Federal 

Credit Union Organization Report; 

• NCUA Forms 9500 and 9501, 

regarding federal share insurance for 

member accounts; 

• NCUA Form 4012, containing key 

biographical information and 

authorization of a background check 

and credit check for each prospective 

board member, credit and supervisory 

committee member, and senior 

management employee; and 

• NCUA Form 4008, the credit 

union’s organization certificate. 

The proposed IRPS also includes 

detailed timelines for processing a 

charter application. 

B. Comment Period and Charter 

Applications Submitted Before IRPS Is 

Finalized 

The Board is proposing this IRPS with 

a 30-day comment period rather than 

NCUA’s standard 60-day comment 

period. The Board believes that this 

proposal is neither novel nor complex, 

and that 30 days should be sufficient for 

all parties interested in commenting. 

Any charter application submitted 

before this IRPS is finalized should 

conform to the requirements of the 

proposed IRPS, and NCUA will process 

applications under the terms of the 

proposed IRPS until the IRPS is 

finalized. The possibility of impending 

charter applications further supports the 

Board’s perceived need for a shorter 

comment period and a quicker 

finalization of the IRPS. 

C. Regulatory Procedures 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

requires NCUA to prepare an analysis to 

describe any significant economic 

impact any proposed regulation may 

have on a substantial number of small 

entities (those under $10 million in 

assets). The proposed IRPS only applies 

to corporate credit unions, all of which 

have assets well in excess of $10 

million. Accordingly, the proposed IRPS 

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 

The Paperwork Reduction Act of 1995 

(PRA) applies to rulemakings in which 

an agency by rule creates a new 

paperwork burden on regulated entities 

or modifies an existing burden. 44 

U.S.C. 3507(d); 5 CFR part 1320. For 

purposes of the PRA, a paperwork 

burden may take the form of either a 

reporting or a recordkeeping 

requirement, both referred to as 

information collections. The Office of 

Management and Budget (OMB) has 

approved the current information 

collection requirements in part 704 and 

assigned them control number 3133– 

0129. 

The proposed IRPS contains an 

additional information collection in the 

form of an application requirement. Any 

group of persons creating a new 

federally chartered corporate credit 

union must apply for NCUA’s approval. 

As required by the PRA, NCUA is 

submitting a copy of this proposed IRPS 

to OMB for its review and approval. 

Persons interested in submitting 

comments with respect to the 

information collection aspects of the 

proposed IRPS should submit them to 

OMB at the address noted below. 

1. Estimated PRA Burden 

The following describes the 

application requirements in the 

proposed IRPS that create manhour 

burdens: 

a. Form 4001 and Business Plan 

The proposed IRPS requires 

applicants for a corporate FCU charter 

to submit Form 4001, which lists the 

prospective credit union’s officers, 

directors and basic information about 

proposed operations. Form 4001 also 

requires applicants to submit a business 

plan. For corporate credit union charter 

applications, the business plan must 

address the following items: 

• Mission statement; 

• Analysis of market conditions (i.e., 

economic prospects for the corporate 

credit union and availability of 

proposed financial services from 

alternative depository institutions); 

• Summary of survey results and/or 

customer base analysis; 

• Proposed financial services to be 

offered; 

• How and when services are to be 

implemented; 

• Anticipated corporate credit union 

staffing and credentials of key 

employees; 

• Physical facility—office and 

equipment; 

• Proposed recordkeeping, data 

processing, and communications 

systems and/or vendors; 

• Budget for the first three years; 

• Semiannual pro-forma financial 

statements for the first three years, 


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including a listing of the assumptions 

used to develop the financial 

statements; 

• Goals for the number of members 

and shares under various scenarios; 

• Projected break-even or date of 

achieving independent operations; 

• Source of funds to pay expenses 

during the initial setup and early 

months of operation; 

• Written policies for shares, lending, 

investments, funds management, capital 

accumulation as required by part 704, 

payment systems, and EDP; 

• Plan for continuity—directors, 

committee members, and senior 

management; 

• Evidence of commitment (i.e., 

letters and/or contracts used to 

substantiate projections); and 

• Services and marketing strategies 

for financial and correspondent 

services, including the ability of the 

proposed corporate credit union to 

efficiently deliver these products. 

While the precise time necessary to 

prepare the business plan will vary with 

the intended complexity and activities 

of the proposed corporate credit union, 

NCUA estimates that on average, 

preparation of Form 4001 and an 

acceptable business plan will require 

300 hours. 

b. Form 4012, Report of Official or 

Employee 

NCUA requires each prospective 

board member, members of key 

committees, and senior management 

employees to submit this form 

providing basic biographical 

information and authorizing NCUA to 

conduct a background and credit check. 

Because the form is straightforward and 

applicants are likely to have most of the 

information requested in other formats, 

such as resumes, NCUA estimates 

completion of the form will take no 

more than one hour for each individual 

required to submit the form. 

c. Forms 9500 and 9501, Insurance 

Forms 

NCUA requires the prospective chief 

executive officer and recording officer to 

submit Form 9500 to certify that the 

prospective board has adopted a 

resolution that the prospective FCU will 

apply for federal share insurance. NCUA 

requires the chair and the chief financial 

officer to submit Form 9501 to apply for 

federal share insurance. NCUA 

estimates completion of both these 

forms will require no more than one 

hour per charter applicant. 

d. Form 4008, Organization Certificate 

Prospective organizers must also 

submit an organization certificate listing 

the credit union’s name and names and 

contact information of the initial 

subscribers. NCUA estimates that 

collection of the required information 

and completion of this form should 

require no more than two hours per 

charter applicant. 

2. Summary of Collection Burden 

NCUA estimates the total information 

collection burden represented by the 

proposal, as follows: 

Estimated annual number of 

respondents: 1 corporate FCU charter 

applicant. 

Preparation of Form 4001 and 

business plan: 1 charter applicant × 300 

hours = 300 hours. 

Preparation of NCUA Form 4012: 1 

charter applicant × 25 individual 

officials, committee members and 

employees per applicant × 1 hour per 

individual = 25 hours. 

Preparation of NCUA Forms 9500 and 

9501: 1 charter applicant × 1 hour = 1 

hour. 

Preparation of NCUA Form 4008: 1 

charter applicant × 2 hours = 2 hours. 

Total estimated annual burden hours: 

328 hours. 

The NCUA considers comments by 

the public on this proposed collection of 

information in: 

• Evaluating whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of the NCUA, including 

whether the information will have a 

practical use; 

• Evaluating the accuracy of the 

NCUA’s estimate of the burden of the 

proposed collection of information, 

including the validity of the 

methodology and assumptions used; 

• Enhancing the quality, usefulness, 

and clarity of the information to be 

collected; and 

• Minimizing the burden of collection 

of information on those who are to 

respond, including through the use of 

appropriate automated, electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology; e.g., permitting 

electronic submission of responses. 

The Paperwork Reduction Act 

requires OMB to make a decision 

concerning the collection of information 

contained in the proposed regulation 

between 30 and 60 days after 

publication of this document in the 

Federal Register. Therefore, a comment 

to OMB is best assured of having its full 

effect if OMB receives it within 30 days 

of publication. This does not affect the 

deadline for the public to comment to 

the NCUA on the proposed regulation. 

Comments on the proposed 

information collection requirements 

should be sent to: Office of Information 

and Regulatory Affairs, OMB, New 

Executive Office Building, Washington, 

DC 20503; Attention: NCUA Desk 

Officer, with a copy to Mary Rupp, 

Secretary of the Board, National Credit 

Union Administration, 1775 Duke 

Street, Alexandria, Virginia 22314– 

3428. 

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. 

The proposed IRPS would not have 

substantial direct effects on the states, 

on the connection 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 proposal 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 

The NCUA has determined that this 

proposed IRPS 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). 

By the National Credit Union 

Administration Board on September 24, 

2010. 

Mary F. Rupp, 

Secretary of the Board. 

Authority: 12 U.S.C. 1753, 1754, 1758, 

1766. 

Corporate Federal Credit Union 

Chartering Guidelines 

I—Goals of NCUA Corporate 

Chartering Guidelines 

These guidelines are intended to 

achieve the following goals: 

• Uphold the provisions of the 

Federal Credit Union Act (Act); 

• Promote safety and soundness 

within the credit union industry; and 

• Provide quality services to 

members. 

NCUA will consider the above criteria 

as the primary factors in determining 

whether to approve a corporate federal 

credit union (FCU) charter. In unusual 

circumstances, NCUA may consider 


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other information in deciding if a 

charter should be approved, such as 

other federal law or public policies. 

II—Subscribers 

Seven or more natural person 

representatives of natural person credit 

unions (NPCUs)—‘‘the subscribers’’— 

must present to NCUA for approval a 

sworn organization certificate stating at 

a minimum: 

• The name of the proposed corporate 

FCU; 

• The location of the proposed 

corporate FCU; 

• The names and addresses of the 

subscribers to the certificate and the 

number of shares subscribed by each; 

• The initial par value of the shares; 

and 

• The proposed field of membership. 

False statements on any of the 

required documentation filed in 

obtaining an FCU charter may be 

grounds for federal criminal 

prosecution. 

III—Economic Advisability 

A—General 

Before chartering a corporate FCU, 

NCUA must be satisfied that the 

institution will be viable and that it will 

provide needed services to its members. 

NCUA will conduct an independent 

investigation of each charter application 

to ensure that the proposed corporate 

credit union can be successful. In 

general, the success of any credit union 

depends on: (a) The character and 

fitness of management; (b) the depth of 

the members’ support; and (c) present 

and projected market conditions. 

B—Proposed Management’s Character 

and Fitness 

The Act requires NCUA to ensure that 

the subscribers of federal charters are of 

good ‘‘general character and fitness.’’ In 

addition, employees and officials must 

be competent, experienced, honest, and 

of good character. 

NCUA will conduct background and 

credit investigations on prospective 

officials and employees, and the reports 

must establish each applicant’s 

character and ability to effectively 

handle financial matters. Factors that 

may lead to disapproval of a prospective 

official or employee include criminal 

convictions, indictments, and acts of 

fraud and dishonesty. Other factors, 

such as serious or unresolved past due 

credit obligations and bankruptcies 

disclosed during credit checks, may also 

disqualify an individual. 

NCUA also needs reasonable 

assurance that the management team 

will have the requisite skills— 

particularly in leadership, accounting, 

funds management, and payment 

systems risk—and the commitment to 

dedicate the time and effort needed to 

make the proposed corporate FCU a 

success. 

Section 701.14 of NCUA’s Rules and 

Regulations sets forth the procedures for 

NCUA approval of officials of newly 

chartered FCUs, including corporate 

FCUs. If the application of a prospective 

official or employee to serve is not 

acceptable to NCUA’s Director, Office of 

Corporate Credit Unions (OCCU), the 

group can propose an alternate to act in 

that individual’s place. If the charter 

applicant feels it is essential that the 

disqualified individual be retained, the 

individual may appeal the OCCU’s 

decision to the NCUA Board. If an 

appeal is pursued, action on the 

application may be delayed. If the 

appeal is denied by the NCUA Board, an 

applicant acceptable to NCUA must be 

provided before the charter can be 

approved. 

C—Member Support 

An important chartering 

consideration is the degree of support 

from the field of membership. The 

charter applicant must demonstrate a 

sufficient customer base from which to 

draw business in the form of 

membership applications, capital and 

share commitments, and commitments 

to use the corporate FCU’s services. The 

applicant must provide surveys and/or 

written commitments certifying to this 

potential membership base and capital 

commitment to the levels required by 

Part 704 of NCUA’s Rules and 

Regulations. Although NCUA may work 

with a newly chartered corporate on a 

plan to meet the retained earnings 

requirements of Part 704, the newly 

chartered corporate must have a viable 

plan to solicit and maintain sufficient 

contributed capital. Generally, the plan 

must show how the corporate FCU will 

keep its total capital at 4 percent or 

more of its moving daily average net 

assets at all times beginning on the date 

NCUA issues the charter. 

D—Present and Future Market 

Conditions—Business Plan 

The ability to provide effective service 

to members, compete in the 

marketplace, and adapt to changing 

market conditions are key to the 

survival of any enterprise. Before NCUA 

will charter a corporate credit union, a 

charter applicant must submit a 

business plan based on realistic and 

supportable projections and 

assumptions. The business plan should 

contain, at a minimum, the following 

elements: 

(1) Mission statement; 

(2) Analysis of market conditions (i.e., 

economic prospects for the corporate 

credit union and availability of 

proposed financial services from 

alternative depository institutions); 

(3) Summary of survey results and/or 

customer base analysis; 

(4) Proposed financial services to be 

offered; 

(5) How and when services are to be 

implemented; 

(6) Anticipated corporate credit union 

staffing and credentials of key 

employees; 

(7) Physical facility—office and 

equipment; 

(8) Proposed recordkeeping, data 

processing, and communications 

systems and/or vendors; 

(9) Budget for the first three years; 

(10) Semiannual pro-forma financial 

statements for the first three years, 

including a listing of the assumptions 

used to develop the financial 

statements; 

(11) Goals for the number of members 

and shares under various scenarios; 

(12) Projected break-even or date of 

achieving independent operations; 

(13) Source of funds to pay expenses 

during the initial setup and early 

months of operation; 

(14) Written policies for shares, 

lending, investments, funds 

management, capital accumulation as 

required by Part 704, payment systems, 

and EDP; 

(15) Plan for continuity—directors, 

committee members, and senior 

management; 

(16) Evidence of commitment (i.e., 

letters and/or contracts used to 

substantiate projections); and 

(17) Services and marketing strategies 

for financial and correspondent 

services, including the ability of the 

proposed corporate credit union to 

efficiently deliver these products. 

IV—Organizing a Corporate Federal 

Credit Union 

The subscribers must submit the 

following documentation to the NCUA 

Office of Corporate Credit Unions 

(OCCU) for processing: 

(1) NCUA Form 4001—Federal Credit 

Union Investigation Report. 

(2) NCUA Form 4012—Report of 

Officials and Agreement to Serve. This 

form documents general background 

information for each official and 

employee of the proposed corporate 

credit union. Each designee must 

complete and sign this form. In 

completing the form, subscribers may 

disregard any reference to ‘‘common 

bond.’’ In addition, where Section B.2 of 

the form requires a potential interest 


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survey sample of at least 250 potential 

members, subscribers may use a sample 

of at least 30 potential members. 

(3) NCUA Form 4008—Organization 

Certificate. This document establishes 

the seven criteria required of subscribers 

by the Act and is signed by the 

subscribers and notarized. This 

document should be executed in 

duplicate. 

(4) NCUA Form 9501—Certification of 

Resolutions. This document certifies the 

board of the proposed corporate credit 

union has resolved to apply for federal 

insurance of member’s accounts and has 

authorized the chief executive officer 

and chief financial officer to execute the 

Application and Agreements for 

Insurance of Accounts. Both the chief 

executive officer and recording officer of 

the proposed corporate credit union 

must sign this certification. 

(5) NCUA Form 9500—Application 

and Agreements for Insurance of 

Accounts. This document contains 

agreements FCUs must comply with in 

order to obtain NCUA insurance 

coverage of member accounts. The 

document must be completed and 

signed by both the chief executive 

officer and chief financial officer. 

V—Name Selection 

It is the responsibility of the corporate 

FCU organizers to ensure that the 

proposed corporate FCU name does not 

constitute an infringement on the name 

of any corporation in its trade area. This 

responsibility also includes researching 

any service marks or trademarks used by 

any other corporation (including credit 

unions) in its trade area. NCUA will 

ensure, to the extent possible, that the 

corporate credit union’s name: 

• Is not already being officially used 

by another FCU; 

• Will not be confused with NCUA or 

another federal or state agency, or with 

another credit union; and 

• Does not include misleading or 

inappropriate language. 

The last three words in the name of 

every credit union chartered by NCUA 

must be ‘‘Federal Credit Union.’’ 

VI—NCUA Review 

A—General 

OCCU will conduct an independent 

investigation of the corporate credit 

union’s charter application to assess the 

economic and long-term viability of the 

proposed corporate credit union. OCCU 

field staff will conduct the review and, 

if necessary, perform an on-site contact 

with selected officials and others having 

an interest in the proposed corporate 

credit union. 

The review will include evaluation of 

proposed management’s experience and 

suitability, commitment of proposed 

officials, and assessment of economic 

viability. OCCU field staff may also be 

called upon to assist subscribers in the 

proper completion of required forms 

and the Organization Certificate—NCUA 

Form 4008. 

OCCU field staff will thoroughly 

analyze the prospective corporate credit 

union’s business plan for realistic 

projections, attainable goals, and time 

commitment. Any concerns will be 

reviewed with the subscribers and 

discussed with prospective officials. 

NCUA will follow the timeline set 

forth below in processing corporate 

charter applications: 

1. Within 30 days of receipt of the 

charter package, OCCU field staff will 

meet with the proposed officials and 

management team to evaluate the 

adequacy of management and the 

information provided and to discuss the 

FCU’s ability to begin operations and 

meet their financial projections if the 

charter is approved. 

2. On completion of all required 

reviews, but no later than 60 days after 

the meeting described above, OCCU 

field staff will make a recommendation 

to the OCCU Director regarding the 

charter application. The 

recommendation may include 

provisional requirements to be 

completed prior to final approval of a 

corporate FCU charter. 

3. Within 30 days of receiving OCCU 

field staff recommendation, an OCCU 

analyst will determine if the application 

package can be forwarded to the NCUA 

Board for appropriate action, or if it 

should be returned to the subscribers. 

The subscribers will receive written 

notification of this decision. 

4. Within 60 days after receipt of a 

complete application that addresses all 

of OCCU’s concerns, the NCUA Board 

will vote on the proposed charter. If the 

charter is approved, the officials must 

sign a ‘‘Letter of Understanding and 

Agreement’’ (LUA) before the corporate 

credit union can commence operations. 

This LUA will impose certain 

operational restrictions, require 

compliance with NCUA’s Rules and 

Regulations and adoption of the 

standard Corporate FCU Bylaws, and 

contain several financial performance 

milestones that the new charter must 

meet, consistent with Part 704. 

B—Finalization of New Charter 

If NCUA approves the charter 

application, the subscribers, as their 

final duty, will elect the board of 

directors for the newly chartered 

corporate FCU. The new board of 

directors will subsequently appoint the 

supervisory committee. The corporate 

FCU must then submit a report of 

officials to OCCU. 

[FR Doc. 2010–24659 Filed 9–30–10; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2010–0952; Directorate 

Identifier 2010–NM–131–AD] 

RIN 2120–AA64 

Airworthiness Directives; Airbus Model 

A330–201, –202, –203, –223, and –243 

Airplanes; Airbus Model A330–300 

Series Airplanes; and Airbus Model 

A340–200 and –300 Series Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for the 

products listed above. This proposed 

AD results from mandatory continuing 

airworthiness information (MCAI) 

originated by an aviation authority of 

another country to identify and correct 

an unsafe condition on an aviation 

product. The MCAI describes the unsafe 

condition as: 

[T]he FAA published SFAR 88 (Special 

Federal Aviation Regulation 88). 

By mail referenced 04/00/02/07/01–L296 

of March 4th, 2002 and 04/00/02/07/03–L024 

of February 3rd, 2003 the JAA [Joint Aviation 

Authorities] recommended to the National 

Aviation Authorities (NAA) the application 

of a similar regulation. 

The aim of this regulation is to require 

* * * a definition review against explosion 

hazards. 

* * * * * 

Failure of the auxiliary power unit 

(APU) bleed leak detection system could 

result in overheat of the fuel tank 

located in the horizontal stabilizer and 

ignition of the fuel vapors in that tank, 

which could result in a fuel tank 

explosion and consequent loss of the 

airplane. The proposed AD would 

require actions that are intended to 

address the unsafe condition described 

in the MCAI. 

DATES: We must receive comments on 

this proposed AD by November 15, 

2010. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

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

instructions for submitting comments. 

• Fax: (202) 493–2251. 


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