Source: https://www.federalregister.gov/documents/2006/11/22/E6-19703/share-insurance-appeals-clarification-of-enforcement-authority-of-the-ncua-board
Timestamp: 2017-08-17 05:05:08
Document Index: 566974144

Matched Legal Cases: ['arts 745', 'art 745', 'art 747', '§\u2009747', '§\u2009747', '§\u2009747']

Federal Register :: Share Insurance Appeals; Clarification of Enforcement Authority of the NCUA Board
This interim final rule is effective November 22, 2006. Comments must be received by NCUA on or before January 22, 2007.
67439-67441 (3 pages)
A. Insurance Appeals
B. Expansion of Enforcement Authority
C. Clarification of Suspension, Prohibition and Removal Authority
https://www.federalregister.gov/d/E6-19703 https://www.federalregister.gov/d/E6-19703
E-mail: Address to regcomments@ncua.gov. Include “[Your name] Comments on Interim Final Rule—Parts 745 and 747” in the e-mail subject line.
The Reg Relief Act amended section 207(d) of the FCU Act, which addresses the resolutions of disputes relating to any claim for insurance coverage. 12 U.S.C. 1787(d). This interim rule amends the provision in NCUA's regulations, 12 CFR 745.203(c), that sets forth the appropriate venue for seeking judicial review of a final determination by the Board relating to a claim for insurance coverage.
The current regulation provides for judicial review by the United States Court of Appeals for the District of Columbia or the court of appeals for the Federal circuit where the credit union's principal place of business is located. The interim rule revises the regulation to reflect the statutory change that a final agency determination by the Board on a claim for insurance coverage is reviewable by the United States district court for the Federal judicial district where the principle place of business of the credit union is located.
The Reg Relief Act amended three provisions of Section 206 of the FCU Act, 12 U.S.C. 1786, to broaden the NCUA Board's authority to take enforcement actions for violations of conditions imposed in any action on any application, notice, or other request by a credit union or an institution-affiliated party. Such violations can serve as a basis for cease and desist orders, removal and prohibition orders, and civil money penalties. Previously such enforcement actions could only be taken upon a violation of conditions imposed in “the granting of any application or other request by the credit union”. The amendments to Sections 747.1 and 202 of NCUA's Regulations conform the language of the regulation to that of the FCU Act as amended. Start Printed Page 67440
The NCUA Board is issuing this rule as an interim final rule because there is a strong public interest in assuring that NCUA's Rules and Regulations conform to statutory authority. This rule does this by making regulatory changes consistent with the statutory amendments in the Reg Relief Act. NCUA also finds these reasons are good cause to dispense with the 30-day delayed effective date requirement under section 553(d)(3) of the Administrative Procedure Act (APA). Accordingly, the Board finds that, pursuant to 5 U.S.C. 553(b)(3), notice and public procedures are unnecessary and contrary to the public interest; and, pursuant to 5 U.S.C. 553(d)(3), the rule will be effective upon publication in the Federal Register. Although the rule is being issued as an interim final rule and is effective upon publication, the Board encourages interested parties to submit comments.
The NCUA has determined that this interim 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).
1. The authority citation for part 745 is revised to read as follows:
2. Section 745.203(c) is amended by removing “Court of Appeals for the District of Columbia or the court of appeals for the Federal judicial circuit,” and adding in its place “district court for the Federal judicial district.”
3. The authority citation for part 747 is revised to read as follows:
4. Section 747.1(c)(3) is amended by removing “the grant of an application or request,” and adding in its place “any action on any application, notice, or other request by the credit union or institution-affiliated party,”.
§ 747.202
5. Section 747.202(c) is amended by removing “any application or request of the credit union,” and adding in its place “any action on any application, notice, or other request by the credit union or institution-affiliated party,”.
6. Section 747.303 is revised to read as follows:
§ 747.303
Notice of suspension or prohibition.
Whenever an institution-affiliated party of an insured credit union is charged in any state, Federal or territorial information or indictment or complaint with the commission of or participation in a crime involving dishonesty or breach of trust, which crime is punishable by imprisonment for a term exceeding one year under state or Federal law, the NCUA Board may, if continued service or participation by the concerned party may pose a threat to the interests of any Start Printed Page 67441credit union's members or may threaten to impair public confidence in any credit union, by written notice served upon such party, suspend him or her from office, or prohibit him or her from further participation in any manner in the affairs of any credit union, or both. A copy of the notice of suspension or prohibition shall also be served upon the credit union of which the subject of the order is, or most recently was, an institution-affiliated party.
7. Section 747.304 is revised to read as follows:
§ 747.304
Removal or permanent prohibition.
(c) A finding of not guilty or other disposition of the charge will not preclude the Board from thereafter instituting proceedings, pursuant to the provisions of section 206(g) of the Act (12 U.S.C. 1786(g)) and subpart A of this part, to remove such director, committee member, officer, or other person from office or to prohibit his or her further participation in the affairs of the credit union.
[FR Doc. E6-19703 Filed 11-21-06; 8:45 am]