[Federal Register Volume 85, Number 246 (Tuesday, December 22, 2020)]
[Rules and Regulations]
[Pages 83405-83409]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28279]
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Rules and Regulations
Federal Register
________________________________________________________________________
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 the Superintendent of Documents.
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Federal Register / Vol. 85, No. 246 / Tuesday, December 22, 2020 /
Rules and Regulations
[[Page 83405]]
NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 701
RIN 3133-AF15
Temporary Regulatory Relief in Response to COVID-19-Extension
AGENCY: National Credit Union Administration (NCUA).
ACTION: Final rule and temporary final rule; extension.
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SUMMARY: The NCUA Board (Board) is extending the effective date of its
temporary final rule, which modified certain regulatory requirements to
help ensure that federally insured credit unions (FICUs) remain
operational and can properly conduct appropriate liquidity management
to address economic conditions caused by the COVID-19 pandemic.
Specifically, the temporary final rule issued by the Board in April
2020 temporarily raised the maximum aggregate amount of loan
participations that a FICU may purchase from a single originating
lender to the greater of $5,000,000 or 200 percent of the FICU's net
worth. The rule also temporarily suspended limitations on the eligible
obligations that a Federal credit union (FCU) may purchase and hold. In
addition, given physical distancing practices necessitated by COVID-19,
the rule also tolled the required timeframes for the occupancy or
disposition of properties not being used for FCU business or that have
been abandoned. Unless extended, each of these temporary modifications
will expire on December 31, 2020. Due to the continued impact of COVID-
19, the Board has decided it is necessary to extend the effective
period of these temporary modifications until December 31, 2021.
DATES: This rule is effective December 22, 2020. The expiration date of
the temporary final rule published on April 21, 2020 (85 FR 22010), is
extended through the close of December 31, 2021.
FOR FURTHER INFORMATION CONTACT: Policy and Analysis: Victoria
Nahrwold, Office of Examination and Insurance, at (703) 548-2633;
Legal: Thomas Zells and Ariel Pereira, Staff Attorneys, Office of
General Counsel, at (703) 518-6540; or by mail at: National Credit
Union Administration, 1775 Duke Street, Alexandria, Virginia 22314.
SUPPLEMENTARY INFORMATION:
I. Background
II. Legal Authority
III. Section-by-Section Analysis
IV. Regulatory Procedures
I. Background
A. COVID-19 Pandemic
The COVID-19 pandemic has created uncertainty for FICUs and their
members. The Board continues to work with Federal and state regulatory
agencies, in addition to FICUs, to assist FICUs in managing their
operations and to facilitate continued assistance to credit union
members and communities impacted by the novel coronavirus. In April
2020, as part of these ongoing efforts, the Board temporarily modified
certain regulatory requirements to help ensure that FICUs remain
operational and liquid during the COVID-19 pandemic.\1\ The Board
concluded that the amendments would provide FICUs necessary additional
flexibility in a manner consistent with the NCUA's responsibility to
maintain the safety and soundness of the credit union system. The
temporary amendments were to remain in place through the end of
calendar year 2020 unless the Board took action to extend their
effectiveness.
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\1\ 85 FR 22010 (Apr. 21, 2020).
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The economic environment is a key determinant of credit union
performance. After several years of solid growth, the economy entered a
recession at the start of 2020.\2\ Given the potential depth of the
recession, forecasters do not expect the economy to return to its pre-
recession, late 2019 peak before the end of 2021. A sustained, high
level of unemployment could reduce loan demand, particularly for non-
mortgage consumer loans, and affect credit quality. System-wide
delinquency rates, which remained low through the second quarter, could
begin to rise as the forbearance programs put in place during the
spring come to an end.\3\ The economic impact of the COVID-19 pandemic
may result in additional stress on credit union balance sheets,
potentially requiring robust liquidity management over the course of
2021. While recovery in economic activity and labor markets is widely
expected to continue, there is a high risk of a worse-than-expected
outcome. This will depend on the path of COVID-19 infections. As COVID-
19 cases rise, another wave of temporary business closures and other
measures that hinder economic activity may become necessary. As a
result, the recovery could falter, leading to more job losses and
higher unemployment. Weaker-than-expected economic conditions or
another downturn would keep interest rates low or cause them to
decline, particularly at the long end of the yield curve, and pose more
significant challenges for the credit union system. The NCUA, like
credit unions, needs to plan and prepare for a range of economic
outcomes that could affect credit union performance. This includes
ensuring a regulatory environment that provides FICUs with the
flexibility necessary to cope with and address the range of potential
COVID-19 impacts.
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\2\ See https://www.nber.org/news/business-cycle-dating-committee-announcement-june-8-2020.
\3\ See Title IV of the Coronavirus Aid, Relief, and Economic
Security Act, Public Law 116-136, 134 Stat 281 (March 27, 2020).
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Due to the continuing impact of the COVID-19 pandemic on FICUs and
their members, the Board has determined that it is necessary to extend
the effectiveness of these temporary provisions. The economic impact of
the COVID-19 pandemic remains uncertain and is forecasted to extend
through 2021. As such, the temporary amendments will remain in place
through the end of calendar year 2021 unless the Board finds conditions
warrant additional action to further extend their effectiveness.
B. The Temporary Amendments
In general, two of the temporary amendments expanded the authority
of FICUs to purchase loans and participations in loans, thereby
enhancing FICUs' ability to meet liquidity needs. Specifically, the
Board temporarily raised the maximum aggregate amount of loan
participations that a FICU may purchase from a single originating
lender to the greater of $5,000,000 or 200 percent of the credit
[[Page 83406]]
union's net worth. The Board also temporarily suspended certain
limitations on the types of eligible obligations that a FICU may
purchase and hold. The third regulatory amendment tolled the required
timeframes for the occupancy or disposition of properties not being
used for FCU business or that have been abandoned to address the impact
of the physical distancing practices necessitated by the COVID-19
pandemic.
Section III of this preamble discusses the temporary regulatory
amendments in greater detail and the rationale for the extension of
their temporary effect.
II. Legal Authority
The Board is issuing this temporary final rule pursuant to its
authority under the Act.\4\ The Act grants the Board a broad mandate to
issue regulations governing both Federal credit unions and, more
generally, all FICUs. For example, section 120 of the Act is a general
grant of regulatory authority and authorizes the Board to prescribe
rules and regulations for the administration of the Act.\5\ Section 209
of the Act is a plenary grant of regulatory authority to issue rules
and regulations necessary or appropriate for the Board to carry out its
role as share insurer for all FICUs.\6\ Other provisions of the Act
confer specific rulemaking authority to address prescribed issues or
circumstances.\7\ Accordingly, the Act grants the Board broad
rulemaking authority to ensure that the credit union industry and the
NCUSIF remain safe and sound.
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\4\ 12 U.S.C. 1751 et seq.
\5\ 12 U.S.C. 1766(a).
\6\ 12 U.S.C. 1789.
\7\ An example of a provision of the Act that provides the Board
with specific rulemaking authority is section 207 (12 U.S.C. 1787),
which is a specific grant of authority over share insurance
coverage, conservatorships, and liquidations.
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III. Section-by-Section Analysis
A. Aggregate Limit on Loan Participation Purchases (Section
701.22(b)(5)(ii))
Section 107(5)(E) of the FCU Act authorizes an FCU to engage in
participation lending with other credit unions, credit union
organizations, or financial organizations in accordance with written
policies of the FCU's board of directors.\8\ The NCUA has implemented
this statutory provision in Sec. 701.22 of its regulations, which
applies to all FICUs. The statute contains no limitation on the amount
of participations that an FCU may purchase from any single originating
lender.
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\8\ 12 U.S.C. 1757(5)(e).
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The regulation limits the aggregate amount of loan participations
that a FICU may purchase from any one originating lender to the greater
of $5,000,000 or 100 percent of the FICU's net worth.\9\ As explained
in the preamble to the final rule that established the limitation, the
purpose of the provision is to mitigate the exposure of FICUs to
concentration risk.\10\ The preamble explained that, in prescribing
concentration limits on loan participations, the Board's goal was ``to
strike an appropriate balance between mitigating risk and fostering the
[credit union] industry's growth and stability.'' \11\
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\9\ 12 CFR 701.22(b)(5)(ii).
\10\ 78 FR 37946 (June 25, 2013).
\11\ Id. at 37951.
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Under the temporary final rule issued in April 2020, the aggregate
limit below which a waiver from the appropriate NCUA Regional Director
is not required was temporarily raised to the greater of $5,000,000 or
200 percent of a FICU's net worth. The increase was intended to help
safeguard the stability of FICUs during the COVID-19 pandemic, without
undue additional risk to the safety and soundness of the credit union
system. The temporary increase was set to expire at the close of
December 31, 2020.
Due to the ongoing COVID-19 pandemic and its continued impact on
FICUs, the Board believes it necessary to extend the effective period
of this temporary amendment until the close of December 31, 2021. As
noted in the April 2020 temporary final rule, the Board continues to
believe that a cap is an important protection against FICU insolvency.
However, the Board also continues to believe that, as currently
formulated in Sec. 701.22(b)(5)(ii), the limitation may be overly
prescriptive during this time. Additional regulatory flexibility
continues to be especially warranted to deal with the economic impact
of the COVID-19 pandemic, which may result in additional stress on
credit union balance sheets, potentially requiring robust liquidity
management.
When the Board issued the temporary increase in April, it
emphasized its belief that this amendment would help safeguard the
stability of FICUs during the COVID-19 pandemic, without undue
additional risk to the safety and soundness of the credit union system.
The Board maintains this belief and expects that the impact of the
COVID-19 pandemic will warrant an increased cap until the close of
December 31, 2021. The Board also continues to believe that the
temporary increase is needed to strike the balance the Board sought in
originally promulgating the rule in 2013; the Board encourages FICUs to
engage in appropriate due diligence in this context. As such, the Board
feels it necessary to extend this relief until the close of December
31, 2021 to continue to allow FICUs the flexibility to conduct robust
liquidity management to cope with the atypical economic conditions
caused by the COVID-19 pandemic. The Board believes that a one-year
extension appropriately balances the unpredictable length of the
economic impact of the COVID-19 pandemic with safety and soundness
considerations.
In the April 2020 temporary final rule, the Board noted that,
subsequent to the temporary rule's expiration at the close of December
31, 2020, a FICU must return into compliance with the current
limitation (that is, the greater of $5,000,000 or 100 percent of its
net worth) by either ceasing to purchase loan participations from the
originating lender or requesting a waiver as provided in the
regulation. With this extension of the expiration, a FICU now must
return into compliance with the current limitation or obtain a waiver
at the close of December 31, 2021.
B. Purchase, Sale, and Pledge of Eligible Obligations (Section
701.23(b))
Section 107(13) of the FCU Act authorizes an FCU, ``in accordance
with rules and regulations prescribed by the Board,'' to purchase,
sell, or pledge all or part of an eligible obligation to one of its own
members.\12\ The NCUA has implemented this authority in its regulations
at Sec. 701.23(b)(1)(i) and (b)(2)(i), which provide that an FCU may
purchase an eligible obligation from any source, provided the FCU is
empowered to grant the loan or the loan is refinanced within 60 days
following its purchase so that it is a loan the FCU is empowered to
grant.
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\12\ 12 U.S.C. 1757(13).
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The purpose of the refinancing requirement is to help ensure that
loans purchased by an FCU comply with the statutory and regulatory
requirements applicable to loans made by the FCU. Although the Board's
longstanding policy has been that all eligible obligations of an FCU,
whether made or purchased, comply with the requirements and goals of
the FCU Act, the explicit statutory language of the FCU Act does not
necessarily compel this. As explained in the April 2020 temporary final
rule, the Board believes that, given the impact of the COVID-19
pandemic, the balance weighs in favor
[[Page 83407]]
of adopting a closer reading of the text of the statute and suspending
the refinancing requirement for a temporary period to promote the
extension of credit and flow of liquidity in the credit union system
generally.
As noted, the FCU Act and Sec. 701.23 generally do not authorize
an FCU to purchase a loan unless the person liable on the loan is a
member of that credit union. The Board's publicly articulated
interpretation since the 1979 rulemaking that implemented section
107(13) is that Congress did not intend section 107(13) to be an
express prohibition on purchases of obligations made to non-members
provided they are authorized by other sections of the FCU Act.\13\
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\13\ 44 FR 27068, 27069 (May 9, 1979).
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The Board's regulations in Sec. 701.23 generally require that
purchased eligible obligations be obligations of a purchasing FCU's
members. However, Sec. 701.23(b)(2) provides certain limited
exceptions to the general requirements for well-capitalized FCUs that
have composite CAMEL ratings of ``1'' or ``2.'' \14\ The regulations
authorize these FCUs to purchase the eligible obligations of any FICU
or of any liquidating credit union without regard to whether they are
obligations of the purchasing FCU's members. As the Board has
previously noted, these types of purchases could be construed as being
made under section 107(14) of the FCU Act (which does not impose a
membership requirement), as opposed to under section 107(13).\15\
Section 107(14) authorizes FCUs to ``purchase all or part of the assets
of another credit union and to assume the liabilities of the selling
credit union and those of its members.'' This statutory interpretation
is consistent with the general principle that the more specific
provision or authority applies in favor of the more general provision.
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\14\ Section 701.23 also contains exceptions to the membership
requirement for certain purchases of student loans and real estate
loans that an FCU purchases to complete a pool for sale. The Board
established this exception in the 1979 final rule discussed above.
44 FR 27068 (May 9, 1979).
\15\ Section 107(14) is codified in 12 U.S.C. 1757(14). For the
Board's prior statements on this matter, please refer to 66 FR
58656, 58660 (Nov. 23, 2001); 51 FR15055, 15059 (Mar. 15, 2001), and
76 FR 81421, 81426 (Dec. 28, 2011).
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In the April 2020 temporary final rule, the Board explained that--
while it continues to believe that this exception should generally be
limited to FCUs with CAMEL 1 or 2 composite ratings--it also recognizes
the urgent need to support the extension of credit and facilitate
downstream loan purchases as a tool to manage liquidity. The Board,
therefore, temporarily amended its regulations to authorize FCUs with
CAMEL composite ratings of 1, 2, or 3 to purchase eligible obligations
of FICUs and liquidating credit unions irrespective of whether the
obligation belongs to the purchasing FCU's members. This change did not
alter the requirement for a purchasing FCU to be well-capitalized under
Sec. 701.22(b)(2).\16\
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\16\ Generally, credit unions with a CAMEL composite rating
lower than 3 are considered to be in ``troubled condition'' under
the NCUA's regulations. 12 CFR 700.2.
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This temporary amendment was set to expire at the close of December
31, 2020. Due to the ongoing and unforeseeable impact of the COVID-19
pandemic, the Board believes it appropriate to extend these temporary
provisions until the close of December 31, 2021. The Board recognizes
that the need to support the extension of credit and facilitate the
downstream loan purchases as a tool to manage liquidity remains, and
likely will remain for the foreseeable future. The Board believes that
a one-year extension appropriately balances the unpredictable length of
the economic impact of the COVID-19 pandemic with safety and soundness
considerations.
As noted in the April 2020 temporary final rule, the Board
reiterates that this change allows FCUs to continue to hold obligations
purchased pursuant to this temporary final rule subsequent to the
rule's expiration. The standard requirements applicable to the purchase
of obligations under Sec. 701.23 will resume after the expiration of
the temporary provisions at the close of December 31, 2021, unless
extended, and will apply to all future purchases, including to
purchases of obligations previously acquired under the provisions of
this temporary final rule. The Board also reiterates that the
restrictions temporarily relieved in Sec. 701.23 do not apply to
state-chartered, federally insured credit unions. Any such restrictions
applicable to state-chartered credit unions would be based on state
laws or regulations. This temporary final rule does not modify the
current authority of FCUs under Sec. 701.23 to purchase the
obligations of a liquidating credit union without regard to whether the
obligations belong to the purchasing FCU's members.
C. FCU Occupancy and Disposal of Acquired Premises (Section 701.36(c))
Section 107(4) of the FCU Act authorizes an FCU to purchase, hold,
and dispose of property necessary or incidental to its operations.\17\
The Board has implemented and interpreted this provision of the FCU Act
in its regulation at 12 CFR 701.36. In general, an FCU may only invest
in property that it intends to use to transact credit union business or
in property that supports its internal operations or serves its
members. Among other provisions, Sec. 701.36: (1) Limits FCU
investments in fixed assets; and (2) establishes occupancy, planning,
and disposal requirements for acquired and abandoned premises.
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\17\ 12 U.S.C. 1757(4).
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The regulation provides that if an FCU acquires premises, including
unimproved land or unimproved real property, it must partially occupy
them ``no later than six years after the date of acquisition,'' subject
to the NCUA granting a waiver.\18\ Further, an FCU must make diligent
efforts to dispose of abandoned premises and any other real property it
does not intend to use in transacting business. Additionally, the FCU
must advertise for sale premises that have been abandoned for four
years.\19\ The specific terms of these requirements do not stem
directly from the FCU Act, but instead reflect the Board's judgment in
implementing the general statutory provision.
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\18\ 12 CFR 701.36(c)(1).
\19\ 12 CFR 701.36(c)(2).
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In the April temporary final rule, the Board--noting the impact of
the physical distancing measures adopted by many states and localities
related to COVID-19 \20\ on FCU's ability to comply with the occupancy
and disposition requirements in Sec. 701.36--adopted provisions to
temporarily toll the regulatory mandated timeframes in the rule. The
Board emphasized that these health-related restrictions on the mobility
of individuals made the changes in occupancy and dispositions required
by Sec. 701.36 extremely difficult. The Board explained that this
temporary change appropriately reflected these unique circumstances
while maintaining consistency with the statutory provision as
interpreted and implemented by the Board.
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\20\ See https://www.nytimes.com/interactive/2020/us/coronavirus-stay-at-home-order.html. (``[A] a vast majority of
Americans -- nine in 10 United States residents -- are now or will
soon be under instructions to stay at home.'')
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The temporary final rule provided that any days that fall within
the period commencing on April 21, 2020 and concluding at the close of
December 31, 2020 shall not be counted for purposes of determining an
FCU's compliance with the regulatory time periods. This temporary
deferral has provided FCUs additional flexibility to comply with the
prescribed time periods, while still complying with the statutory and
regulatory goals of ensuring that
[[Page 83408]]
properties acquired or held by FCUs are used for credit union business.
Due to the ongoing nature of the COVID-19 pandemic and its
continued impact on FICUs, the Board has decided it is necessary to
extend the effectiveness of this temporary amendment until the close of
December 31, 2021. Physical distancing practices continue to be a key
component of preventing the spread of COVID-19 and many states,
localities, and businesses have adopted related requirements or
policies \21\ that continue to make the changes in occupancy and
dispositions required by Sec. 701.36 extremely difficult.
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\21\ See https://www.nytimes.com/interactive/2020/us/states-reopen-map-coronavirus.html. (``As coronavirus cases continue to
surge and hospitals in some areas stretch to capacity, many states
are once again imposing limits on businesses and everyday life. Some
governors are closing sectors they had reopened after spring
lockdowns. Others, wary of an ailing economy, are letting businesses
remain largely open but setting stricter capacity limits or
mandating the wearing of masks in public.'')
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The Board continues to believe this temporary change appropriately
reflects the unique circumstances necessitated by the COVID-19 pandemic
while maintaining consistency with the statutory provision as
interpreted and implemented by the Board. The Board feels that a one-
year extension appropriately balances the unpredictable length of the
impact of the COVID-19 pandemic with safety and soundness
considerations.
Example One: An FCU closed on the purchase of an office building 30
days before April 21, 2020 (that is, the temporary final rule is
published on the 31st day following acquisition). Under the temporary
regulatory amendment, January 1, 2022 would be deemed the 31st day
following acquisition for purposes of calculating the six-year deadline
for partial occupancy.
Example Two: An FCU has an abandoned parcel of land that, under
Sec. 701.36(c)(2), it is required to advertise for sale no later than
November 9, 2020 (i.e., that fourth year anniversary of the date the
parcel was abandoned). Under this temporary final rule, the FCU would
have an additional amount of time to meet this requirement equal to the
number of days between the publication date and January 1, 2022.
IV. Regulatory Procedures
A. Administrative Procedure Act
The Board is issuing the extension of the temporary final rule
without prior notice and the opportunity for public comment and the
delayed effective date ordinarily prescribed by the Administrative
Procedure Act (APA).\22\ Pursuant to the APA, general notice and the
opportunity for public comment are not required with respect to a
rulemaking when an ``agency for good cause finds (and incorporates the
finding and a brief statement of reasons therefor in the rules issued)
that notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest.'' \23\
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\22\ 5 U.S.C. 551 et seq.
\23\ 5 U.S.C. 553(b)(3).
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The Board believes that the public interest is best served by
implementing the extension of the previously issued temporary final
rule immediately upon publication in the Federal Register. The Board
notes that the COVID-19 crisis is unprecedented. It is a rapidly
changing situation and difficult to anticipate how the disruptions
caused by the crisis will manifest themselves within the financial
system and how individual credit unions may be impacted. Because of the
widespread impact of a pandemic and the temporary nature of both the
relief contemplated by the temporary final rule and this extension of
such relief, the Board believes it is has good cause to determine that
ordinary notice and public procedure are impracticable and that moving
expeditiously to extend the temporary final rule is in the best of
interests of the public and the FICUs that serve that public. The
extension of these temporary regulatory changes are proactive steps
that are designed help FICUs cope with the economic impact of the
COVID-19 pandemic, which may result in additional stress on credit
union balance sheets, potentially requiring robust liquidity management
over the course of 2021. The changes are undertaken with expedience to
ensure the maximum intended effects remain in place.
The Board values public input in its rulemakings and believes that
providing the opportunity for comment enhances its regulations.
Accordingly, the Board often solicits comments on its rules even when
not required under the APA, such as for the rules it issues on an
interim-final basis. The Board, however, notes that the provisions
extended in this rule are temporary in nature, and designed
specifically to help credit unions affected by the COVID-19 pandemic.
The extension of the amendments made by the initial temporary final
rule will automatically expire at the close of December 31, 2021, and
are limited in number and scope. For these reasons, the Board finds
that there is good cause consistent with the public interest to issue
the rule without advance notice and comment.
The APA also requires a 30-day delayed effective date, except for:
(1) Substantive rules which grant or recognize an exemption or relieve
a restriction; (2) interpretative rules and statements of policy; or
(3) as otherwise provided by the agency for good cause.\24\ Because the
rules relieve currently codified limitations and restrictions, the
extension of the temporary final rule is exempt from the APA's delayed
effective date requirement. As an alternative basis to make the rule
effective without the 30-day delayed effective date, the Board finds
there is good cause to do so for the same reasons set forth above
regarding advance notice and opportunity for comment.
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\24\ 5 U.S.C. 553(d).
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B. Congressional Review Act
For purposes of the Congressional Review Act,\25\ the Office of
Management and Budget (OMB) makes a determination as to whether a final
rule constitutes a ``major'' rule. If the OMB deems a rule to be a
``major rule,'' the Congressional Review Act generally provides that
the rule may not take effect until at least 60 days following its
publication.
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\25\ 5 U.S.C. 801-808.
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The Congressional Review Act defines a ``major rule'' as any rule
that the Administrator of the Office of Information and Regulatory
Affairs of the OMB finds has resulted in or is likely to result in (A)
an annual effect on the economy of $100,000,000 or more; (B) a major
increase in costs or prices for consumers, individual industries,
Federal, State, or local government agencies or geographic regions, or
(C) significant adverse effects on competition, employment, investment,
productivity, innovation, or on the ability of United States-based
enterprises to compete with foreign-based enterprises in domestic and
export markets.\26\
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\26\ 5 U.S.C. 804(2).
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For the same reasons set forth above, the Board is adopting the
extension of the temporary final rule without the delayed effective
date generally prescribed under the Congressional Review Act. The
delayed effective date required by the Congressional Review Act does
not apply to any rule for which an agency for good cause finds (and
incorporates the finding and a brief statement of reasons therefor in
the rule issued) that notice and public procedure thereon are
impracticable, unnecessary, or contrary to the public interest.\27\ In
light of current market uncertainty, the Board believes that delaying
the effective date of the extension of the
[[Page 83409]]
temporary final rule would be contrary to the public interest for the
same reasons discussed above.
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\27\ 5 U.S.C. 808.
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As required by the Congressional Review Act, the Board will submit
the final rule and other appropriate reports to Congress and the
Government Accountability Office for review.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501 et seq.)
requires that the Office of Management and Budget (OMB) approve all
collections of information by a Federal agency from the public before
they can be implemented. Respondents are not required to respond to any
collection of information unless it displays a valid OMB control
number.
In accordance with the PRA, the information collection requirements
included in this temporary final rule extension have been submitted to
OMB for approval under control numbers 3133-0141, 3133-0127 and 3133-
0040.
D. Executive Order 13132, on Federalism
Executive Order 13132 \28\ encourages independent regulatory
agencies to consider the impact of their actions on state and local
interests. The NCUA, an independent regulatory agency, as defined in 44
U.S.C. 3502(5), voluntarily complies with the Executive order to adhere
to fundamental federalism principles. The extension of the temporary
final rule 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. The Board has therefore determined that this rule does
not constitute a policy that has federalism implications for purposes
of the Executive order.
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\28\ Executive Order 13132 on Federalism, was signed by former
President Clinton on August 4, 1999, and subsequently published in
the Federal Register on August 10, 1999 (64 FR 43255).
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E. Assessment of Federal Regulations and Policies on Families
The NCUA has determined that the extension of the temporary final
rule will not affect family well-being within the meaning of Section
654 of the Treasury and General Government Appropriations Act,
1999.\29\
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\29\ Public Law 105-277, 112 Stat. 2681 (1998).
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F. Regulatory Flexibility Act (RFA)
The Regulatory Flexibility Act (RFA) generally requires that when
an agency issues a proposed rule or a final rule pursuant to the APA or
another law, the agency must prepare a regulatory flexibility analysis
that meets the requirements of the RFA and publish such analysis in the
Federal Register. Specifically, the RFA normally requires agencies to
describe the impact of a rulemaking on small entities by providing a
regulatory impact analysis. For purposes of the RFA, the Board
considers credit unions with assets less than $100 million to be small
entities.
As discussed previously, consistent with the APA, the Board has
determined for good cause that general notice and opportunity for
public comment is unnecessary, and therefore the Board is not issuing a
notice of proposed rulemaking. Rules that are exempt from notice and
comment procedures are also exempt from the RFA requirements, including
conducting a regulatory flexibility analysis, when among other things
the agency for good cause finds that notice and public procedure are
impracticable, unnecessary, or contrary to the public interest.
Accordingly, the Board has concluded that the RFA's requirements
relating to initial and final regulatory flexibility analysis do not
apply.
List of Subjects in 12 CFR Part 701
Aged, Civil rights, Credit, Credit unions, Fair housing,
Individuals with disabilities, Insurance, Mortgages, Reporting and
recordkeeping requirements.
By the NCUA Board, this 17th day of December 2020.
Melane Conyers-Ausbrooks,
Secretary of the Board.
For the reasons discussed in the preamble, the Board amends 12 CFR
part 701 as follows:
PART 701--ORGANIZATION AND OPERATION OF CREDIT UNIONS
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1. The authority citation for part 701 continues to read as follows:
Authority: 12 U.S.C. 1752(5), 1755, 1756, 1757, 1758, 1759,
1761a, 1761b, 1766, 1767, 1782, 1784, 1785, 1786, 1787, 1788, 1789.
Section 701.6 is also authorized by 15 U.S.C. 3717. Section 701.31
is also authorized by 15 U.S.C. 1601 et seq.; 42 U.S.C. 1981 and
3601-3610. Section 701.35 is also authorized by 42 U.S.C. 4311-4312.
Sec. 701.22 [Amended]
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2. In Sec. 701.22(e), remove the date ``December 31, 2020'' and add in
its place the date ``December 31, 2021''.
Sec. 701.23 [Amended]
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3. In Sec. 701.23(i) introductory text, remove the date ``December 31,
2020'' and add in its place the date ``December 31, 2021''.
Sec. 701.36 [Amended]
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4. In Sec. 701.36(c)(3), remove the date ``December 31, 2020'' and add
in its place the date ``December 31, 2021''.
[FR Doc. 2020-28279 Filed 12-21-20; 8:45 am]
BILLING CODE 7535-01-P