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contains regulatory documents having general

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Rules and Regulations Federal Register

35767 

Vol. 74, No. 138 

Tuesday, July 21, 2009 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Parts 741, 748 and 749 

RIN 3133–AD56 

Credit Union Reporting 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Final rule. 

SUMMARY: NCUA is amending its 

reporting procedures and record 

retention requirements to conform 

regulatory provisions to its new, Webbased reporting system. The rule 

incorporates into the regulation a 

statutory requirement on reporting 

changes in senior officials resulting 

from election or appointments and 

clarifies requirements on when a credit 

union files reports with NCUA online. 

The rule also provides alternative 

reporting methods for credit unions 

unable to submit online reports. 

DATES: The rule is effective 

September 1, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Amber Gravius, Risk Management 

Officer, Office of Examination and 

Insurance, (703) 518–6360; or Moisette 

Green, Staff Attorney, the Office of 

General Counsel, (703) 518–6540, 

National Credit Union Administration, 

1775 Duke Street, Alexandria, Virginia 

22314. 

SUPPLEMENTARY INFORMATION: 

Background 

NCUA has replaced the software used 

to submit financial and other reports 

with an integrated, Web-based 

information management system. The 

online system makes reporting more 

efficient and cost effective, and 

enhances the accuracy of credit union 

data. The implementation of the new 

online system requires revisions to 

current reporting regulations. 

The Federal Credit Union Act (Act) 

grants NCUA broad authority to require 

federally insured credit unions (FICUs), 

including corporate credit unions, to 

submit financial data and other 

information as required by the NCUA 

Board (Board). 12 U.S.C. 1761, 1766, 

1781, and 1782. NCUA has 

implemented this authority in various 

regulatory provisions. NCUA requires 

FICUs to submit financial reports, 

reports of officials, and other reports. 12 

CFR 704.1, 741.6, and 748.1. Section 

741.6(a) prescribes the requirements for 

financial, statistical, and other reports 

and, currently, requires natural person 

credit unions to file a Financial and 

Statistical Report quarterly, also referred 

to as a Call Report and identified as 

NCUA Form 5300. The provisions in 

§ 741.6 currently do not specify the form 

corporate credit unions use; corporate 

credit unions file Call Reports monthly 

using NCUA Form 5310. Further, FICUs 

must file a Report of Officials, NCUA 

Form 4501, with NCUA annually after 

the election of officials. 12 CFR 748.1(a). 

In addition to information about a credit 

union’s main location and branches, 

hours of operation, and identity of and 

contact information for senior officials, 

NCUA Form 4501 also contains a 

certification of FICU compliance with 

the requirements of Part 748, which 

includes catastrophic act reporting, 

suspicious activity reporting, and 

security program and Bank Secrecy Act 

requirements. Id. The front page of the 

NCUA Form 4501 states the Report of 

Officials must be filed with the regional 

director no later than 10 days after the 

election of officials. 

Appendix A to Part 749 sets out 

guidelines for record retention and 

identifies key operational records FICUs 

should retain permanently. 12 CFR Part 

749, Appendix A, para. E.2. NCUA 

Form 5300 or its equivalent is currently 

identified as an example of these key 

operational records. Id. at para. E(2)(b). 

In March 2009, NCUA proposed 

revisions to §§ 741.6 and 748.1, and 

Appendix A to Part 749 to clarify online 

reporting procedures and record 

retention requirements, conform 

regulatory provisions to the new online 

system, and incorporate into the 

regulation a statutory requirement on 

reporting changes in senior officials. 74 

FR 13139 (March 26, 2009). 

Online Reporting Process 

NCUA is interested in increasing 

efficiency, reducing costs, enhancing 

accuracy of data, and providing a 

secure, single access portal where credit 

unions can submit, edit, and view data 

NCUA collects. The new information 

management tool allows FICUs to 

submit financial reports, information 

regarding officials, and other 

information to NCUA through a secure, 

Web-based system. Credit unions have 

access to the online system via the 

internet from NCUA’s Web site at 

http://www.ncua.gov. For credit unions 

to use the online system, they must have 

a computer, Internet connectivity, 

Internet Explorer 6.0 or higher, and a 

valid e-mail address. All users of the 

online system must use a login and 

password to access the system, and 

credit union users only have access to 

their own credit union’s confidential 

information. The public may obtain 

non-confidential information without a 

login or password. 

To ensure information is protected, 

users identify themselves using an 

authentication process requiring a 

unique login and password. 

Authenticated users may only access the 

information they are authorized to view. 

Additionally, the transmission of 

sensitive information between credit 

unions and NCUA is encrypted using 

the industry-standard Secure Sockets 

Layer (SSL) technology to prevent 

others from intercepting and accessing 

confidential, credit union information. 

NCUA will no longer issue software to 

submit data; the online system permits 

credit unions to submit data to NCUA 

from any computer. Additionally, the 

online system eliminates mailing and 

printing delays, missing information, 

and damaged software CDs. The online 

system provides real-time warnings 

throughout the input process to ensure 

data integrity. NCUA is currently 

implementing the new system for 

natural person credit unions and 

anticipates implementing it for 

corporate credit unions in 2010. 

All credit union data will be 

submitted and viewed through the 

online Credit Union Profile and Call 

Report. The online profile includes 

information NCUA maintains about a 

credit union that infrequently changes, 

for example, the credit union 

address(es), phone number(s), list of 

officials, hours of operation, etc. It has 


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35768 Federal Register / Vol. 74, No. 138 / Tuesday, July 21, 2009 / Rules and Regulations 

additional information such as disaster 

recovery information, and information 

systems and technology information. 

After profile data are entered, 

subsequent input is only required for 

additions, deletions, or changes to the 

data. 

For efficiency and to make reporting 

less burdensome, credit unions may 

have multiple users to enhance the 

likelihood that profile information is 

accurate and updated when necessary 

and ensure the Call Report is submitted 

timely. Additionally, multiple users 

may access the system and complete 

different sections of the Call Report and 

profile simultaneously. Credit unions 

unable to use the online system will use 

a manual process to submit their 

information on a paper form. 

Comments on the Proposal 

NCUA received comments from one 

credit union and two trade associations. 

The credit union supported the 

proposed changes, but raised concerns 

about data security. It suggested using 

electronic tokens or other multi-factor 

authentication method in conjunction 

with strong passwords to ensure data 

submitted through the online system is 

not compromised. The credit union also 

recommended giving credit unions up 

to 12 months instead of 30 days to 

update the online Reports of Officials 

information. 

This final rule does not address data 

security. Credit unions can be sure 

NCUA will maintain the online system 

in accordance with federal computer 

security standards for the management 

of automated information resources. See 

Office of Management and Budget 

Circular No. A–130. Additionally, 

NCUA will encrypt sensitive 

information during transmission using 

industry-standard Secure Sockets Layer 

(SSL) technology to prevent others from 

intercepting and accessing confidential, 

credit union information. 

The Board believes 30 days is a 

reasonable time for FICUs to update 

changes to the information regarding 

their officials in the online profile. 

Under the Act, federal credit unions 

must file the names and addresses of 

senior management officials and 

volunteer officials with NCUA within 

10 days after their election or 

appointment. 12 U.S.C. 1761(b). NCUA 

needs up-to-date credit union 

information for many reasons, for 

example, member complaint resolution, 

examination completion, and disaster 

and emergency preparedness. 

Accordingly, credit unions must ensure 

their profiles contain accurate 

information. 

One trade association supported the 

proposed adoption of an internet-based 

reporting system, but requested NCUA 

conduct a comprehensive review of the 

content of the reports credit unions 

must submit to reduce the reporting 

burden. Another trade association 

supported the objective to increase 

efficiency and ease of reporting 

information to NCUA, but expressed 

concern about the training required for 

credit union staff to use the new online 

system. It urged NCUA to allow 

sufficient time for implementation of 

the new system and to permit credit 

unions to make necessary logistical 

changes and train staff. 

The Board expects the online system 

will reduce the burden on credit unions 

and make reporting more efficient. 

NCUA reviewed the information it 

collects from credit unions during the 

development of the online system and 

has reduced the redundancy associated 

with the various reporting requirements. 

Information that had previously been 

reported in multiple forms or reports 

has been consolidated in the online 

profile. 

To assist credit unions with the 

transition to the online system, NCUA 

will host training sessions, including 

Webcasts, workshops, and seminars, 

throughout summer 2009. Information 

regarding the training sessions will be 

posted in the Upcoming Events section 

of NCUA’s Web site, http:// 

www.ncua.gov. Additionally, frequently 

asked questions are answered on 

NCUA’s Web site at http:// 

www.ncua.gov/DataServices/ 

OnlineFAQ.pdf. 

The Final Rule 

NCUA is adopting the amendments to 

Parts 741, 748, and 749 as proposed 

without change. Section 741.6 clarifies 

when FICUs must update their Credit 

Union Profiles and addresses corporate 

credit unions and the NCUA Form 5310. 

Additionally, the rule amends § 748.1 to 

clarify the compliance report filing 

requirements for FICUs using the online 

system and for FICUs filing reports 

manually. FICUs that cannot certify 

compliance online must certify 

compliance in writing on the new Credit 

Union Profile form, NCUA Form 4501A. 

Finally, the rule updates the record 

retention guidelines in Appendix A of 

Part 749 and includes the new Credit 

Union Profile form as a key operational 

record that should be retained 

permanently. 

Regulatory Procedures 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

requires NCUA to prepare an analysis to 

describe any significant economic 

impact any regulation may have on a 

substantial number of small entities. 5 

U.S.C. 603(a). For purposes of this 

analysis, NCUA considers credit unions 

having under $10 million in assets as 

small entities. Interpretive Ruling and 

Policy Statement 03–2, 68 FR 31949 

(May 29, 2003). As of March 31, 2009, 

out of 7,749 natural person, federally 

insured credit unions, 3,168 had less 

than $10 million in assets. NCUA 

estimates out of 28 corporate credit 

unions, one is a small entity. This rule 

directly affects all small FICUs. 

Therefore, NCUA has determined this 

rule will have an impact on a 

substantial number of small entities. 

NCUA has determined, however, the 

economic impact on entities affected by 

the rule will not be significant. The rule 

will reduce the regulatory burden on 

FICUs that submit their financial 

reports, Credit Union Profile, and other 

information online. NCUA is also 

proposing alternate methods for FICUs 

without internet access to submit 

information. Additionally, NCUA’s 

Office of Small Credit Union Initiatives 

has reviewed the rule and concluded it 

would have a moderate impact on small 

credit unions, but contained sufficient 

provisions to mitigate the impact and 

would result in greater efficiencies for 

all credit unions. Further, NCUA invited 

comment on the economic impact the 

rule would have in its proposal and 

requested suggestions on how to 

minimize it. 74 FR 13139, 13141 (March 

26, 2009). The Board received no 

comments on this issue. Accordingly, 

NCUA certifies the rule would not have 

a significant economic impact on small 

entities. 

Paperwork Reduction Act 

In accordance with section 3512 of 

the Paperwork Reduction Act of 1995, 

44 U.S.C. 3501–3521 (PRA), NCUA may 

not conduct or sponsor, and the 

respondent is not required to respond 

to, an information collection unless it 

displays a currently valid Office of 

Management and Budget (OMB) control 

number. NCUA submitted the 

information collection requirements in 

this rule to OMB for review and 

approval under section 3507 of the PRA 

and § 1320.11 of OMB’s implementing 

regulations. 5 CFR 1320.11. The 

proposed rule contained a discussion of 

the revised information collection. 74 

FR 13139, 13141 (March 26, 2009). OMB 

approval is pending. 


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Federal Register / Vol. 74, No. 138 / Tuesday, July 21, 2009 / Rules and Regulations 35769 

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 Administrative Procedures 

Act. 5 U.S.C. 551. The Office of 

Information and Regulatory Affairs, an 

office within OMB, is reviewing this 

final rule for purposes of SBREFA, and 

a determination is pending. 

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 rule would not have a 

substantial direct effect 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 this rule does not constitute 

a policy that has federalism 

implications for purposes of the 

executive order. 

The Treasury and General Government 

Appropriations Act, 1999—Assessment 

of Federal Regulations and Policies on 

Families 

NCUA has determined that this rule 

would 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 741 

Credit unions, Reporting and 

recordkeeping requirements, Share 

insurance. 

12 CFR Part 748 

Credit unions, Reporting and 

recordkeeping requirements, Security 

measures. 

12 CFR Part 749 

Archives and records, Credit unions, 

Reporting and recordkeeping 

requirements. 

By the National Credit Union 

Administration Board, on July 16, 2009. 

Mary F. Rupp, 

Secretary of the Board. 

■ For the reasons stated above, NCUA 

amends 12 CFR parts 741, 748 and 749 

as follows: 

PART 741—REQUIREMENTS FOR 

INSURANCE 

■ 1. The authority citation for part 741 

continues to read as follows: 

Authority: 12 U.S.C. 1757, 1766(a), 1781– 

1790, and 1790d; 31 U.S.C. 3717. 

■ 2. Amend § 741.6 by removing 

paragraph (d) and revising paragraph (a) 

to read as follows: 

§ 741.6 Financial and statistical and other 

reports. 

(a) Upon written notice from the 

Board, Regional Director, or Director of 

the Office of Corporate Credit Unions, 

insured credit unions must file financial 

and other reports in accordance with the 

instructions in the notice. Credit unions 

with the capacity to do so must use 

NCUA’s information management 

system to submit their data online. If a 

credit union is unable to use the 

information system, it must file written 

reports in accordance with the 

instructions. 

(1) Credit Union Profile. Insured 

credit unions must submit to NCUA a 

Credit Union Profile, NCUA Form 4501 

or its equivalent, within 10 days after an 

election or appointment of senior 

management or volunteer officials or 

within 30 days of any change of the 

information in the profile. 

(2) Financial and statistical report. 

Natural person credit unions must file a 

Call Report with NCUA quarterly in 

accordance with the instructions in the 

NCUA Form 5300. Corporate credit 

unions must file a Corporate Credit 

Union Call Report with NCUA monthly 

in accordance with the instructions in 

the NCUA Form 5310. Credit unions 

must submit a corrected Call Report 

upon notification or the discovery of a 

need for correction. 

* * * * * 

PART 748—SECURITY PROGRAM, 

REPORT OF SUSPECTED CRIMES, 

SUSPICIOUS TRANSACTIONS, 

CATASTROPHIC ACTS AND BANK 

SECRECY ACT COMPLIANCE 

■ 3. The authority citation for part 748 

continues to read as follows: 

Authority: 12 U.S.C. 1766(a), 1786(q); 15 

U.S.C. 6801 and 6805(b); 31 U.S.C. 5311 and 

5318. 

■ 4. Amend § 748.1 by revising 

paragraph (a) to read as follows: 

§ 748.1 Filing of reports. 

(a) The president or managing official 

of each federally-insured credit union 

must certify compliance with the 

requirements of this Part in its Credit 

Union Profile annually. Credit unions 

that cannot update their profile online 

must certify compliance in writing in 

accordance with the instructions on 

NCUA Form 4501 or its equivalent. The 

credit union president or managing 

official must sign and date the written 

certification. 

* * * * * 

PART 749—RECORDS 

PRESERVATION PROGRAM AND 

APENDICES—RECORD RETENTION 

GUIDELINES; CATASTROPHIC ACT 

PREPAREDNESS GUIDELINES 

■ 5. The authority citation for part 749 

continues to read as follows: 

Authority: 12 U.S.C. 1766, 1783, and 1789; 

15 U.S.C. 7001(d). 

■ 6. Amend Appendix A to Part 749 by 

revising paragraph E.2.(b) to read as 

follows: 

Appendix A to Part 749—Record 

Retention Guidelines 

* * * * * 

E. * * * 

2. * * * 

(b) One copy of each financial report, 

NCUA Form 5300 or 5310, or their 

equivalent, and the Credit Union Profile 

report, NCUA Form 4501, or its equivalent as 

submitted to NCUA at the end of each 

quarter. 

* * * * * 

[FR Doc. E9–17312 Filed 7–20–09; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2009–0646; Directorate 

Identifier 2009–NM–055–AD; Amendment 

39–15974; AD 2009–15–11] 

RIN 2120–AA64 

Airworthiness Directives; Aerospatiale 

Model SN–601 (Corvette) Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule; request for 

comments. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for the 


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