REQUEST FOR TECHNICAL CHANGE
AGENCY: Department of Commerce Credit Union Division
RULE CITATION: All Rules
DEADLINE FOR RECEIPT: Friday, May 10, 2013
NOTE WELL: This request when viewed on computer may extend several pages. Please be sure you have reached the end of the document.
The Rules Review Commission staff has completed its opinion review of this rule or set of rules your agency filed with the RRC for review by the RRC at its next meeting. The Commission has not yet met and therefore there has not been a determination as to whether the rule will be approved. You may call this office to inquire concerning the staff recommendation.
In reviewing these rules, the staff determined that one or more technical changes need to be made. Approval of any rule is contingent on making this technical change as set out in G.S. 150B-21.10.
On the Submission for Permanent Rule Forms, you state that the Credit Union Division is the rule-making agency. However, the Administrator has the statutory authority to promulgate rules. I assume the Administrator has adopted the rules and delegated the authority to file them with the RRC to the Credit Union Division?
On the Submission for Permanent Rule Forms, delete the statutory reference stating notice is not required. You published the Rules and included information on the notice.
Introductory statements are governed by Rule 26 NCAC 02 .0404. Each rule requires an introductory statement that states “Rule XXXX is amended as published in Volume and Issue of the Register and the page number.”
For Rules where you make changes after publication (including those following Technical Change Requests) you will need to state “amended with changes” and highlight the changed text within the Rule. (See Rule 26 NCAC 02C .0405)
Please retype or otherwise correct the rule(s) or submission form(s) as necessary and deliver it to our office at 1711 New Hope Church Rd, Raleigh, North Carolina 27609.
If you have any questions or problems concerning this request, please contact me.
Amanda J. Reeder
Commission Counsel
REQUEST FOR TECHNICAL CHANGE
AGENCY: Department of Commerce Credit Union Division
RULE CITATION: 04 NCAC 06B .0302
DEADLINE FOR RECEIPT: Friday, May 10, 2013
The Rules Review Commission staff has completed its opinion review of this rule or set of rules your agency filed with the RRC for review by the RRC at its next meeting. The Commission has not yet met and therefore there has not been a determination as to whether the rule will be approved. You may call this office to inquire concerning the staff recommendation.
In reviewing these rules, the staff determined that one or more technical changes need to be made. Approval of any rule is contingent on making this technical change as set out in G.S. 150B-21.10.
The name of a Rule is not part of the rulemaking process, but do you want to rename this Rule “Notice of Rule-Making”? The Rule language doesn’t seem to pertain only to hearings.
Under what circumstances will the Administrator require actual postage? (Since the Administrator may do so, rather than always doing so.)
In the History Note, why do you reference 54-109.21(25)?
Please retype or otherwise correct the rule(s) or submission form(s) as necessary and deliver it to our office at 1711 New Hope Church Rd, Raleigh, North Carolina 27609.
If you have any questions or problems concerning this request, please contact me.
Amanda J. Reeder
Commission Counsel
REQUEST FOR TECHNICAL CHANGE
AGENCY: Department of Commerce Credit Union Division
RULE CITATION: 04 NCAC 06B .0303
DEADLINE FOR RECEIPT: Friday, May 10, 2013
The Rules Review Commission staff has completed its opinion review of this rule or set of rules your agency filed with the RRC for review by the RRC at its next meeting. The Commission has not yet met and therefore there has not been a determination as to whether the rule will be approved. You may call this office to inquire concerning the staff recommendation.
In reviewing these rules, the staff determined that one or more technical changes need to be made. Approval of any rule is contingent on making this technical change as set out in G.S. 150B-21.10.
Delete or define “fair” on line 5.
In the History Note, why do you reference 54-109.21(25)?
Please retype or otherwise correct the rule(s) or submission form(s) as necessary and deliver it to our office at 1711 New Hope Church Rd, Raleigh, North Carolina 27609.
If you have any questions or problems concerning this request, please contact me.
Amanda J. Reeder
Commission Counsel
REQUEST FOR TECHNICAL CHANGE
AGENCY: Department of Commerce Credit Union Division
RULE CITATION: 04 NCAC 06C .0101
DEADLINE FOR RECEIPT: Friday, May 10, 2013
The Rules Review Commission staff has completed its opinion review of this rule or set of rules your agency filed with the RRC for review by the RRC at its next meeting. The Commission has not yet met and therefore there has not been a determination as to whether the rule will be approved. You may call this office to inquire concerning the staff recommendation.
In reviewing these rules, the staff determined that one or more technical changes need to be made. Approval of any rule is contingent on making this technical change as set out in G.S. 150B-21.10.
Please have the definitions in alphabetical order. In addition, please have a standard introduction for each term, such as “Administrator means…” “Capital means…” etc.
The definition of “Commission” in Item 3 repeats the statute. Replace the definition with “’Commission’ means the Credit Union Commission established by G.S. 143B-439.”
Whenever you are removing or adding punctuation, remember that the punctuation must be done by the requirement of Rule 26 NCAC 02C .0108(7), and you must strike through or add not only the punctuation but also the word immediately preceding it. Everywhere in the Rule where you have simply deleted a period or semicolon, or added a period, you must amend the word before it similarly.
Throughout the Rule, please write the term “Board of Directors” or “board of directors”. I prefer the first version, but however you do this, it needs to be consistent. Similarly throughout the Rule, please refer to “Credit Union” or “credit union.”
Board of Directors is not defined, but I assume this is the Board for each credit union, as contemplated in G.S. 54-109.2? I think it would be useful to include the definition in this Rule to clarify that this is the local Board for each organization.
In Item 6, you need to add language to make it clear that the Board will declare dividends as the bylaws provide, per G.S. 54-109.54.
Items 11, 12 and 13 are governed by G.S. 54-109.26. At the very least, you should include the citation in the History Note, but you may wish to give the citation within the definition, as well.
In Item 12, state that membership is limited to “those persons or groups as stipulated by the bylaws of the credit union.”
In Item 17, who will determine “probable losses”?
Item 17 needs to be fleshed out. I do not know why there is a semicolon. I assume you are trying to say “cash on hand, comprised of cash in the bank and investments”, but without extra language, it’s difficult to determine.
In Item 19, line 7, delete “which.”
In Item 19(c), is it an understanding or an agreement to sell the securities at a future date? Further, I prefer the term “regardless” to “irrespective.”
In Item 19(d), is the credit union going to sell the securities to anyone, or back to the vendor?
In Item 20, you need to include a reference to G.S. 54-110.1, which sets forth the duties of the Corporate Credit Union much more clearly than in the definition in the Rule.
There are several statutes that should be added to the history notes, including the ones cited to in Rule (143B-439 and 54-109.86). In addition, cite 54-109.1 (which includes the definition of Credit Union) and other terms as appropriate.
Please retype or otherwise correct the rule(s) or submission form(s) as necessary and deliver it to our office at 1711 New Hope Church Rd, Raleigh, North Carolina 27609.
If you have any questions or problems concerning this request, please contact me.
Amanda J. Reeder
Commission Counsel
REQUEST FOR TECHNICAL CHANGE
AGENCY: Department of Commerce Credit Union Division
RULE CITATION: 04 NCAC 06C .0307
DEADLINE FOR RECEIPT: Friday, May 10, 2013
The Rules Review Commission staff has completed its opinion review of this rule or set of rules your agency filed with the RRC for review by the RRC at its next meeting. The Commission has not yet met and therefore there has not been a determination as to whether the rule will be approved. You may call this office to inquire concerning the staff recommendation.
In reviewing these rules, the staff determined that one or more technical changes need to be made. Approval of any rule is contingent on making this technical change as set out in G.S. 150B-21.10.
Eliminate the line spaces between the Paragraphs.
On line 6, insert “its” before “officers” (assuming that is what you mean).
On line 7, what committee are you referring to? Is it the Executive Committee established by G.S. 54-109.42?
Delete or define “key operating personnel” are on line 7.
Correctly change “committeemen” to “committee members,” by deleting the full word. Also, there is no need to bold the underlined term.
I assume in (b) that the days and hours are those when the credit union is open to the public. If so, why not rewrite (b) to state, “Each credit union shall notify the Administrator of its days and hours of operation”? Or even refer to the “business hours”?
Do you mean for Paragraph (c) to apply to changes in the individuals and the days and hours of business? If so, eliminate the reference to keeping the Administrator “current” on lines 6 and 9 of the Rule. Further, rewrite the sentence in the active voice and state, “The credit union shall notify the Administrator of any changes to the information required by this Rule within 10 business days.”
Please retype or otherwise correct the rule(s) or submission form(s) as necessary and deliver it to our office at 1711 New Hope Church Rd, Raleigh, North Carolina 27609.
If you have any questions or problems concerning this request, please contact me.
Amanda J. Reeder
Commission Counsel
REQUEST FOR TECHNICAL CHANGE
AGENCY: Department of Commerce Credit Union Division
RULE CITATION: 04 NCAC 06C .0311
DEADLINE FOR RECEIPT: Friday, May 10, 2013
The Rules Review Commission staff has completed its opinion review of this rule or set of rules your agency filed with the RRC for review by the RRC at its next meeting. The Commission has not yet met and therefore there has not been a determination as to whether the rule will be approved. You may call this office to inquire concerning the staff recommendation.
In reviewing these rules, the staff determined that one or more technical changes need to be made. Approval of any rule is contingent on making this technical change as set out in G.S. 150B-21.10.
By Directors on line 3, do you mean the members of the Board of Directors? If not, who are you referring to?
On line 4, when you state “as may be required by the Administrator”, you mean as set forth in rule, consistent with G.S. 54-109.44(2), correct?
Remove the spacing between the end of line 6 and the beginning of line 7, so it does not appear that line 7 starts a new Paragraph.
On line 7, should there be a “The” before “Credit Union Blanket Bond”?
There is no need to bold the underlined language on line 8.
I assume your regulated public knows where to find the new bond series and the NCUA Optional Form 581? Further, do they know what the equivalent to the NCUA form is?
I do not think you need the “hereby” on line 9.
I think it would be easier to read the Rule if lines 7-10 were rewritten to state, “The approved bond forms are the Credit Union Blanket Bond 500 Bond Series, plus faithful performance rider, NCUA Optional Form 581 or its equivalent.” Would that language suffice to relay the information in those lines?
On line 11, the rule states that the bond must cover “fraud and dishonesty.” However, G.S. 54-109.44(2) requires that the bond cover much more, and that should be reflected in the Rule. You may wish to simply cite the statute, saying something like, “Fidelity bonds must provide coverage against losses as set forth in G.S. 54-109.44(2) for all employees…” Further, it appears that the bond must also cover actions by the attorney at law and any other agent, as set forth in G.S. 54-109.44(2), so the Rule language should reflect this.
On lines 12 and 13, what will the Administrator consider to determine approval of other forms or changes of the amount of bond coverage? That sounds like a waiver provision, and G.S. 150B-19(6) requires those waiver provision guidelines to be in rule.
Please apply the question above to the language in (c), line 28.
In (c), does this mean there is no maximum deductible limit in the NCUA Optional Form 581?
Please retype or otherwise correct the rule(s) or submission form(s) as necessary and deliver it to our office at 1711 New Hope Church Rd, Raleigh, North Carolina 27609.