This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

11239

Vol. 66, No. 37

Friday, February 23, 2001

NATIONAL CREDIT UNION

ADMINISTRATION

12 CFR Part 749

Records Preservation Program

AGENCY: National Credit Union

Administration (NCUA).

ACTION: Proposed rule.

SUMMARY: NCUA proposes to revise its

regulation establishing standards for

vital record preservation. The proposal

clarifies that a credit union may

preserve records in electronic form, as

authorized by the Electronic Signatures

in Global and National Commerce Act.

By eliminating the requirement that a

credit union’s financial officer be

responsible for storing vital records, the

revision permits a credit union’s board

of directors to determine which

employee will be responsible for storing

vital records under the record

preservation program. It also

incorporates an appendix to provide

suggested guidelines to credit unions on

retention periods for various types of

records.

DATES: Comments must be received on

or before April 24, 2001.

ADDRESSES: Direct comments to Becky

Baker, Secretary of the Board. Mail or

hand-deliver comments to: National

Credit Union Administration, 1775

Duke Street, Alexandria, Virginia

22314–3428. Fax comments to (703)

518–6319. E-mail comments to

regcomments@ncua.gov. Please send

comments by one method only.

FOR FURTHER INFORMATION CONTACT:

Dianne M. Salva, Staff Attorney,

Division of Operations, Office of

General Counsel, at the above address or

telephone: (703) 518–6540.

SUPPLEMENTARY INFORMATION: NCUA is

proposing a revision of its regulation

governing the preservation of vital

records. The revision simplifies the

regulation by converting it to a question

and answer format. It also updates and

clarifies the provision of the regulation

that currently permits a credit union to

store records in any format that can be

used to reconstruct the credit union’s

files. By implementing the record

retention provisions of the Electronic

Signatures in Global and National

Commerce Act, 15 U.S.C. 7001, the

revision clarifies that credit unions may

store records in any electronic format

that is accurate, accessible and capable

of being reproduced by printing,

transmittal or other methods.

The current regulation designates that

the credit union’s financial officer is

responsible for vital records

preservation duties. The Board finds

that the credit union’s board of directors

may reasonably assign the duties to

another staff member. The revision

permits a credit union’s board of

directors to determine which employee

will be responsible for carrying out the

vital record preservation duties.

Section 749.2 of the proposal restates

the provision in the existing regulation

that credit unions whose records are

retained by off-site data processors are

deemed to be in compliance for those

records. The Board notes that credit

unions should exercise care in the

selection of an off-site data processor to

ensure that it is capable of producing

the records if requested.

There is a need for guidance in the

area of record retention based on the

frequency of requests for assistance from

credit unions. Although similar

guidance is available in the NCUA

Accounting Manual for Credit Unions, it

will be more accessible as an appendix

to the regulation. For those reasons, the

revision incorporates an appendix that

offers guidance on recommended

retention periods for various types of

credit union records.

Regulatory Procedures

Paperwork Reduction Act

NCUA has determined that the

proposed regulation does not increase

paperwork requirements under the

Paperwork Reduction Act of 1995 and

regulations of the Office of Management

and Budget.

Executive Order 13132

Executive Order 13132 encourages

independent regulatory agencies to

consider the impact of their regulatory

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 proposed

rule, if adopted, will apply only to all

federally insured credit unions. It will

not have substantial direct effects on the

states, on the relationship between the

national government and the states, or

on the distribution of power and

responsibilities among the various

levels of government. NCUA has

determined that the proposed 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.

The NCUA has determined that this

proposed rule will not affect family

well-being within the meaning of

section 654 of the Treasury and General

Government Appropriations Act, 1999,

Pub. L. 105–277, 112 Stat. 2681 (1998).

Agency Regulatory Goal

NCUA’s goal is to promulgate clear

and understandable regulations that

impose minimal regulatory burden. We

request your comments on whether the

proposed rule is understandable and

minimally intrusive if implemented as

proposed.

List of Subjects in 12 CFR Part 749

Archives and records, Credit unions,

Reporting and recordkeeping

requirements.

By the National Credit Union

Administration Board on February 15, 2001.

Becky Baker,

Secretary of the Board.

For the reasons set forth in the

preamble, it is proposed that 12 CFR

Part 749 is revised to read as follows:

11240 Federal Register / Vol. 66, No. 37 / Friday, February 23, 2001 / Proposed Rules

PART 749—RECORDS

PRESERVATION PROGRAM AND

RECORD RETENTION APPENDIX

Sec.

749.0 What is covered in this part?

749.1 What are vital records?

749.2 What must a credit union do with

vital records?

749.3 What is a vital records center?

749.4 What format may the credit union use

for preserving records?

749.5 What format may credit unions use

for maintaining writings, records or

information required by other NCUA

regulations?

Appendix A to Part 749—Record Retention

Guidelines

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

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

§ 749.0 What is covered in this part?

This part describes the obligations of

all federally insured credit unions to

maintain a records preservation program

to identify, store and reconstruct vital

records in the event that the credit

union’s records are destroyed. It

establishes flexibility in the format

credit unions may use for maintaining

writings, records or information

required by other NCUA regulations.

The appendix also provides guidance

concerning the appropriate length of

time credit unions should retain various

types of operational records.

§ 749.1 What are vital records?

Vital records include at least the

following records, as of the most recent

month-end:

(a) A list of share, deposit, and loan

balances for each member’s account

which:

(1) Shows each balance individually

identified by a name or number;

(2) Lists multiple loans of one account

separately; and

(3) Contains information sufficient to

enable the credit union to locate each

member, such as address and telephone

number, unless the board of directors

determines that the information is

readily available from another source.

(b) A financial report, which lists all

of the credit union’s asset and liability

accounts and bank reconcilements.

(c) A list of the credit union’s

financial institutions, insurance

policies, and investments. This

information may be marked

‘‘permanent’’ and stored separately, to

be updated only when changes are

made.

§ 749.2 What must a credit union do with

vital records?

The board of directors of a credit

union is responsible for establishing a

vital records preservation program

within 6 months after its insurance

certificate is issued. The vital records

preservation program must contain

procedures for storing duplicate vital

records at a vital records center and

must designate the staff member

responsible for carrying out the vital

records duties. Records must be stored

every 3 months, within 30 days after the

end of the 3-month period. Previously

stored records may be destroyed when

the current records are stored. The

credit union must also maintain a

records preservation log showing what

records were stored, where the records

were stored, when the records were

stored, and who sent the records for

storage. Credit unions, which have some

or all of their records maintained by an

off-site data processor, are considered to

be in compliance for the storage of those

records.

§ 749.3 What is a vital records center?

A vital records center is defined as a

storage facility at any location far

enough from the credit union’s offices to

avoid the simultaneous loss of both sets

of records in the event of disaster.

§ 749.4 What format may the credit union

use for preserving records?

Preserved records may be in any

format that can be used to reconstruct

the credit union’s records. Formats

include paper originals, machine copies,

micro-film or fiche, magnetic tape, or

any electronic format that accurately

reflects the information in the record,

remains accessible to all persons who

are entitled to access by statute,

regulation or rule of law, and is capable

of being reproduced by transmission,

printing or otherwise.

§ 749.5 What format may credit unions use

for maintaining writings, records or

information required by other NCUA

regulations?

Various NCUA regulations require

credit unions to maintain certain

writings, records or information. Credit

unions may use any format, electronic

or other, for maintaining the writings,

records or information that accurately

reflects the information, remains

accessible to all persons who are

entitled to access by statute, regulation

or rule of law, and is capable of being

reproduced by transmission, printing or

otherwise. The credit union must

maintain the necessary equipment or

software to permit an examiner access to

the records during the examination

process.

Appendix A to Part 749—Record

Retention Guidelines

Credit unions often look to NCUA for

guidance on the appropriate length of time to

retain various types of operational records.

NCUA does not regulate in this area, but as

an aid to credit unions it is publishing this

appendix of suggested guidelines for record

retention. NCUA recognizes that credit

unions must strike a balance between the

competing demands of space, resource

allocation and the desire to retain all the

records that they may need to conduct their

business successfully. Efficiency requires

that all records that are no longer useful be

discarded, just as both efficiency and safety

require that useful records be preserved and

kept readily available.

A. What Format Should the Credit Union Use

for Retaining Records?

NCUA does not recommend a particular

format for record retention. If the credit

union stores records on microfilm,

microfiche, or in an electronic format, the

stored records must be accurate, reproducible

and accessible to an NCUA examiner. If

records are stored on the credit union

premises, they should be immediately

accessible upon the examiner’s request; if

records are stored by a third party or off-site,

then they should be made available to the

examiner within a reasonable time after the

examiner’s request. The credit union must

maintain the necessary equipment or

software to permit an examiner to review and

reproduce stored records upon request. The

credit union should also ensure that the

reproduction is acceptable for submission as

evidence in a legal proceeding.

B. Who is Responsible for Establishing a

System for Record Disposal?

The credit union’s board of directors may

approve a schedule authorizing the disposal

of certain records on a continuing basis upon

expiration of specified retention periods. A

schedule provides a system for disposal of

records and eliminates the need for board

approval each time the credit union wants to

dispose of the same types of records created

at different times.

C. What Procedures Should a Credit Union

Follow When Destroying Records?

The credit union should prepare an index

of any records destroyed and retain the index

permanently. Destruction of records should

ordinarily be carried out by at least two

persons whose signatures, attesting to the fact

that records were actually destroyed, should

be affixed to the listing.

D. What Are the Recommended Minimum

Retention Times?

Record destruction may impact the credit

union’s legal standing to collect on loans or

defend itself in court. Since each state can

impose its own rules, it is prudent for a

credit union to consider consulting with

local counsel when setting minimum

retention periods. A record pertaining to a

member’s account that is not considered a

vital record may be destroyed once it is

verified by the supervisory committee.

Individual Share and Loan Ledgers should be

Federal Register / Vol. 66, No. 37 / Friday, February 23, 2001 / Proposed Rules 11241

retained permanently. Records, for a

particular period, should not be destroyed

until both a comprehensive annual audit by

the supervisory committee and a supervisory

examination by the NCUA have been made

for that period.

E. What Records Should be Retained

Permanently?

(1) Official records of the credit union that

should be retained permanently are:

(a) Charter, bylaws, and amendments.

(b) Certificates or licenses to operate under

programs of various government agencies,

such as a certificate to act as issuing agent

for the sale of U. S. savings bonds.

(c) Current manuals, circular letters and

other official instructions of a permanent

character received from the NCUA and other

governmental agencies.

(2) Key operational records that should be

retained permanently are:

(a) Minutes of meetings of the membership,

board of directors, credit committee, and

supervisory committee.

(b) One copy of each semiannual and

annual (June 30 and December 31) financial

report NCUA 5300 or their equivalents.

(c) One copy of each supervisory

committee comprehensive annual audit

report and attachments.

(d) Supervisory committee records of

account verification.

(e) Applications for membership and joint

share account agreements.

(f) Journal and cash record.

(g) General ledger.

(h) Copies of the periodic statements of

members, or the individual share and loan

ledger. (A complete record of the account

should be kept permanently.)

(i) Bank reconcilements.

(j) Listing of records destroyed.

F. What Records Should a Credit Union

Designate for Periodic Destruction?

Any record not described above is

appropriate for periodic destruction unless it

must be retained to comply with the

requirements of consumer protection

regulations. Periodic destruction should be

scheduled so that the most recent of the

following records are available for the annual

supervisory committee audit and the NCUA

examination. Records that may be

periodically destroyed include:

(a) Applications of paid off loans.

(b) Paid notes.

(c) Various consumer disclosure forms,

unless retention is required by law.

(d) Cash received vouchers.

(e) Journal vouchers.

(f) Canceled checks.

(g) Bank statements.

(h) Outdated manuals, canceled

instructions, and nonpayment

correspondence from the NCUA and other

governmental agencies.

[FR Doc. 01–4398 Filed 2–22–01; 8:45 am]

BILLING CODE 7535–01–P

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Chapter II

Review of Existing Regulations

AGENCY: Minerals Management Service,

Interior.

ACTION: Extension of comment period.

SUMMARY: The Minerals Management

Service (MMS) hereby gives notice that

it is extending the public comment

period on a document reviewing our

existing regulations, which was

published in the Federal Register on

December 26, 2000 (65 FR 81465). The

document requests comments on

regulations that could be more

performance based, or on regulations

that should be eliminated or revised. We

also gave a status update on actions by

MMS regarding comments previously

received on our regulations. MMS will

grant a 30-day extension until March 28,

2001.

DATES: Written comments must be

received by March 28, 2001.

ADDRESSES: Mail written comments to

Department of the Interior; Minerals

Management Service; Mail Stop 4230;

1849 C Street NW; Washington DC

20240; Attention: Elizabeth

Montgomery, MMS Regulatory

Coordinator, Policy and Management

Improvement.

FOR FURTHER INFORMATION CONTACT:

Elizabeth Montgomery, Policy and

Management Improvement, telephone:

(202) 208–3976; Fax: (202) 208–4891;

and E-Mail:

Elizabeth.Montgomery@mms.gov.

SUPPLEMENTARY INFORMATION: MMS was

asked to extend the deadline for

submitting comments on the document,

‘‘Review of Existing Regulations,

Request for Comment.’’ The requester

indicated that more time was needed to

comment due to the change of

Administration. We believe the

extension of time until March 28, 2001,

will give the public sufficient time to

comment on our existing regulations

and on the actions we have taken in

response to past comments and enacted

legislation.

Dated: February 14, 2001.

George Triebsch,

Chief, Washington Division, Policy and

Management Improvement.

[FR Doc. 01–4436 Filed 2–22–01; 8:45 am]

BILLING CODE 4310–MR–P

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 164

46 CFR Parts 25 and 27

[USCG–2000–6931]

RIN 2115–AF53

Fire-Suppression Systems and Voyage

Planning for Towing Vessels

AGENCY: Coast Guard, DOT.

ACTION: Extension of comment period.

SUMMARY: In response to public

requests, the Coast Guard is extending

the comment period on its supplemental

notice of proposed rulemaking (SNPRM)

on Fire-Suppression Systems and

Voyage Planning for Towing Vessels.

Extending the comment period gives the

public and the Towing Safety Advisory

Committee (TSAC) more time to submit

comments and recommendations on the

issues raised in our SNPRM. These

proposed rules would improve the

safety of towing vessels by requiring the

installation of fixed fire-extinguishing

systems in their engine rooms, and by

requiring their owners or operators, and

their masters, to ensure that voyage

plans are complete before they

commence their trips with any barge in

tow.

DATES: Comments on the SNPRM must

reach the Coast Guard on or before May

8, 2001.

ADDRESSES: You may mail written

comments to the Docket Management

Facility [USCG–2000–6931], U.S.

Department of Transportation (DOT),

room PL–401, 400 Seventh Street, SW.,

Washington, DC 20590–0001, or deliver

them to room PL–401, located on the

Plaza Level of the Nassif Building at the

same address between 10 a.m. and 5

p.m., Monday through Friday, except

Federal holidays. The telephone number

is 202–366–9329. You may also E-mail

comments using the Marine Safety and

Environmental Protection Regulations

Web Page at http://www.uscg.mil/hq/gm/regs/reghome.html.

The Docket Management Facility

maintains the public docket for the

rulemaking. Comments will become part

of this docket and will be available for

inspection or copying at room PL–401,

located on the Plaza Level of the Nassif

Building at the same address between

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

Friday, except Federal holidays. You

may electronically access the public

docket on the Internet at http://

dms.dot.gov.