Rule2026-16028
Chartering and Field of Membership for Federal Credit Unions-Interpretive Ruling and Policy Statement 06-1
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 6, 2026
Effective
September 8, 2026
Issuing agencies
National Credit Union Administration
Abstract
The NCUA Board (Board) is rescinding Interpretive Ruling and Policy Statement (IRPS) 06-1. The Chartering and Field of Membership Manual (Chartering Manual) incorporates the current requirements for adding underserved areas, making IRPS 06-1 unnecessary. This rescission reduces the burden for federal credit unions (FCUs) by limiting the number of sources that FCUs must check to verify compliance with applicable requirements. After considering the public comments, the Board adopts the proposal without modification.
Full Text
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<title>Federal Register, Volume 91 Issue 150 (Thursday, August 6, 2026)</title>
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[Federal Register Volume 91, Number 150 (Thursday, August 6, 2026)]
[Rules and Regulations]
[Pages 50669-50672]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-16028]
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 701
RIN 3133-AF78
Chartering and Field of Membership for Federal Credit Unions--
Interpretive Ruling and Policy Statement 06-1
AGENCY: National Credit Union Administration (NCUA).
ACTION: Final action.
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SUMMARY: The NCUA Board (Board) is rescinding Interpretive Ruling and
Policy Statement (IRPS) 06-1. The Chartering and Field of Membership
Manual (Chartering Manual) incorporates the current requirements for
adding underserved areas, making IRPS 06-1 unnecessary. This rescission
reduces the burden for federal credit unions (FCUs) by limiting the
number of sources that FCUs must check to verify compliance with
applicable requirements. After considering the public comments, the
Board adopts the proposal without modification.
DATES: This final actionis effective on September 8, 2026.
FOR FURTHER INFORMATION CONTACT: Keisha Brooks, Attorney-Advisor,
Office of General Counsel, at (703) 518-6540 or 1775 Duke Street,
Alexandria, VA 22314.
SUPPLEMENTARY INFORMATION:
I. Introduction
A. Background
Since 1979, the Board has issued IRPS to address various generally
applicable interpretive and policy matters in the Federal Register.\1\
In issuing IRPS, the Board has often, but not always, used notice-and-
comment procedures comparable to those it uses for codified
regulations. While the IRPS are often not codified in the Code of
Federal Regulations, NCUA does make the currently effective IRPS
available on its public website at <a href="https://ncua.gov/regulation-supervision/rules-regulations/interpretive-rulings-policy-statements">https://ncua.gov/regulation-supervision/rules-regulations/interpretive-rulings-policy-statements</a>.
As NCUA's rules, regulations, and interpretive positions evolved over
the years, the Board has withdrawn or rescinded certain IRPS when the
guidance was superseded by a new IRPS or incorporated into NCUA's
regulations.\2\
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\1\ The first NCUA IRPS was published in April 1979. IRPS No.
79-1, Statement of Policy Regarding Relationship of Credit Union
Service Corporations and Existing Accounting Service Centers, 44 FR
21762 (Apr. 12, 1979).
\2\ See e.g., Withdrawal of outdated and unnecessary
Interpretive Rulings and Policy Statements (IRPS), 62 FR 50245
(Sept. 25, 1997); Final Rule, 89 FR 79380 (Sept. 30, 2024).
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In 1989, the Board issued its Chartering and Field of Membership
Policy (IRPS 89-1), which consolidated NCUA's chartering and field of
membership (FOM) guidance. The Board also incorporated IRPS 89-1 by
reference into Sec. 701.1 of NCUA's regulations. Over the years, the
Board periodically updated the policy through other IRPS and amended
Sec. 701.1 to reference the updated IRPS. In 2006, after notice and
consideration of public comment, the Board issued IRPS 06-1 to update
and clarify NCUA's policies for adding underserved areas.\3\ In 2010,
the Board revised Sec. 701.1 to establish the Chartering Manual as the
consolidated source for FCU chartering and FOM policies in Appendix B
to part 701 of NCUA's regulations.\4\
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\3\ 71 FR 36667 (June 28, 2006).
\4\ 75 FR 36257, 36263 (June 25, 2010).
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On February 11, 2026, the Board announced its proposal to rescind
IRPS 06-1 as a separate policy, noting that Chapter 3 of the Chartering
Manual already contains the prevailing requirements for adding
underserved areas.\5\ In the proposed rule, the Board stated that
rescinding IRPS 06-1 would also ease the regulatory burden for FCUs by
reducing the number of reference sources they must consult to comply
with applicable FOM requirements. The comment period ended on April 13,
2026.
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\5\ Proposed Rule, 91 FR 6138 (Feb.11,2026).
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B. Legal Authority
The Board is issuing this final action pursuant to its authority
under the Federal Credit Union (FCU Act). Under the FCU Act, NCUA is
the chartering and supervisory authority for FCUs and the federal
supervisory authority for federally insured credit unions (FICUs).\6\
The FCU Act grants NCUA a broad mandate to issue regulations governing
both FCUs and all FICUs. Section 120 of the FCU Act is a general grant
of regulatory authority and authorizes the Board to prescribe rules and
regulations for the administration of the FCU Act.\7\ Section 207 of
the FCU Act is a specific grant of authority over share insurance
coverage,
[[Page 50670]]
conservatorships, and liquidations.\8\ Section 209 of the FCU Act is a
plenary grant of regulatory authority to issue rules and regulations
necessary or appropriate to carry out its role as share insurer for all
FICUs.\9\ Accordingly, the FCU Act grants the Board broad rulemaking
authority to ensure that the federally insured credit union industry
and the National Credit Union Share Insurance Fund remain safe and
sound.
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\6\ 12 U.S.C. 1752-1775.
\7\ 12 U.S.C. 1766(a).
\8\ 12 U.S.C. 1787.
\9\ 12 U.S.C. 1789.
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The Board is also issuing this final action pursuant to its
rulemaking authority under Section 109 of the FCU Act.\10\ Section 109
of the FCU Act establishes the chartering and FOM framework for
FCUs.\11\ Section 109(d)(3) directs the Board to issue guidelines or
regulations, after notice and opportunity for comment, setting forth
the criteria that the Board will apply in determining whether or not an
additional group may be included within the FOM category of an existing
multiple common bond FCU.\12\ Sections 109(a) and 109(f)(2)(E)
reference more general rulemaking authority with respect to
associational groups and FCU FOMs.\13\ Pursuant to its authority under
the FCU Act, the Board implements these statutory requirements through
the Chartering Manual.\14\
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\10\ 12 U.S.C. 1751 et seq.
\11\ 12 U.S.C. 1753(5), 1754, 1759.
\12\ 12 U.S.C. 1759.
\13\ 12 U.S.C. 1759.
\14\ 12 CFR part 701, App. B. The Chartering Manual addresses
all aspects of chartering FCUs. In that respect, it is like the
regulations of the Office of the Comptroller of the Currency
applicable to the chartering of national banks or federal savings
associations. 12 CFR part 5.
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II. Final Rule
A. Overview
This final action follows publication of the February 11, 2026,
proposed rule, and takes into consideration the comments received on
the proposal. By the close of the public comment period on April 13,
2026, the Board received 22 public comments. Of these, 15 addressed
rescinding IRPS 06-1. Comments were submitted by FCUs, trade
associations, credit union leagues, and individuals.
Most commenters expressed support for the proposal. These
commenters observed that IRPS 06-1 overlaps with Chapter 3 of the
Chartering Manual, and its rescission would avoid unnecessary
complexity and duplicative tasks. Moreover, commenters agreed that the
proposal would ease the compliance burden for FCUs without altering
existing requirements. Four commenters opposed the proposed rescission,
noting that the proposal may increase regulatory ambiguity and
inconsistent supervision. After careful consideration of the comments,
the Board has decided to adopt the proposal as final without change.
B. Discussion of Public Comments
This section of the preamble discusses the significant issues
raised by the commenters, and the Board's responses to the comments.
Most commenters supported rescission, stating that IRPS 06-1 is
redundant. Several commenters observed that the proposal promotes
efficiency and consistency by shifting focus to the Chartering Manual
as the consolidated source for FOM requirements. Some commenters
observed that maintaining parallel standards across multiple sources
creates unnecessary complexity and may result in duplicative compliance
checks.
Most commenters identified the benefits of rescinding IRPS 06-1 in
terms of reducing the compliance burden for FCUs. Several commenters
noted that rescission would streamline compliance by limiting the
number of sources that FCUs must consult for FOM requirements. Several
commenters remarked that simplification is particularly beneficial for
smaller FCUs with limited staff resources. Many commenters agreed that
rescinding IRPS 06-1 would not alter substantive requirements. These
commenters observed that the Chartering Manual will continue to guide
compliance, thereby maintaining safety and soundness.
Several commenters expressed concern that rescinding IRPS 06-1
could increase regulatory ambiguity and remove beneficial redundancies
that may help close regulatory gaps. According to one commenter,
removing these provisions due to perceived repetition could compromise
rule integrity and potentially create loopholes. Noting that oversight
and documentation are part of responsible governance and member
protection, this commenter also cautioned against equating staff effort
with lack of value. Another commenter stated that proposed rescission
may adversely impact smaller FCUs that rely on interpretive rulings as
accessible summaries, anchors for consistent interpretation, and
training tools. This commenter suggested that the Board retain IRPS 06-
1 in abbreviated form and clearly link guidance within the Chartering
Manual to ensure high visibility and consistent examiner references.
A few commenters recommended additional changes outside the scope
of the proposal. One commenter wrote that NCUA's continued reliance on
IRPS adds procedural layers and unnecessary regulatory burdens. This
commenter urged NCUA to discontinue issuing IRPS and suggested
publishing all regulatory requirements solely in the Code of Federal
Regulations. Another commenter conditioned their support for the
proposal on continued transparency in updates to the Chartering Manual.
Specifically, the commenter wrote that the Chartering Manual should
remain easily accessible on <a href="http://ncua.gov">ncua.gov</a>, the agency's public website.
Additionally, the commenter noted that NCUA should provide notice and
an opportunity for public comment before implementing any substantive
changes to the Chartering Manual, with any updates clearly marked and
dated. Several commenters supported additional streamlining and
modernization to reduce burdens on FCUs. Another commenter opposed
rescinding multiple IRPS, arguing that removing established guidance
without replacements creates regulatory ambiguity. The commenter noted
that eliminating IRPS could weaken consumer protection, reduce
transparency, and increase the risk of inconsistent enforcement. The
commenter urged NCUA to assess impacts, consult additional
stakeholders, and provide replacement guidance before proceeding.
NCUA Response. The Board agrees with the majority of commenters
that IRPS 06-1 has become redundant. The Board agrees that
consolidating FOM requirements in the Chartering Manual improves
clarity and consistency. The Board agrees and expects the rescission of
IRPS 06-1 to reduce regulatory burden and enhance operational
efficiency by limiting the number of sources that FCUs must check to
verify compliance with applicable laws and regulations.
The broader suggestions addressing IRPS in general and future
amendments to the Chartering Manual are outside the scope of this
specific rescission. As noted in this preamble and the preamble to the
proposed rule, rescinding IRPS 06-1 simplifies NCUA's regulatory
framework without changing substantive requirements. The Board
acknowledges the concern with the continued accessibility and clear
versioning of the Chartering Manual. The Board observes that this
rescission does not change Sec. 701.1, which specifies that the
Chartering Manual is contained in Appendix B to 12 CFR part 701 and is
also available online at <a href="http://ncua.gov">ncua.gov</a>.
[[Page 50671]]
Consistent with Sec. 701.1, the Board expects that the Chartering
Manual will remain publicly available on the agency's website. In
addition, because the Chartering Manual is published in the Code of
Federal Regulations, the public can review current and prior versions
on the Federal Register website and <a href="http://GovInfo.gov">GovInfo.gov</a>. The Board agrees that
any future amendments of substantive effect should follow applicable
notice-and-comment procedures. The Board notes the constructive
feedback and will consider it in the future as appropriate.
Accordingly, the Board adopts the proposal as final and, therefore,
rescinds IRPS 06-1.
III. Regulatory Procedures
A. Executive Orders 12866, 13563, and 14192
Pursuant to Executive Order 12866 (``Regulatory Planning and
Review''), a determination must be made whether a regulatory action is
significant and therefore subject to review by the Office of
Information and Regulatory Affairs (OIRA), within the Office of
Management and Budget (OMB) in accordance with the requirements of the
Executive Order.\15\ Executive Order 13563 (``Improving Regulation and
Regulatory Review'') supplements and reaffirms the principles,
structures, and definitions governing contemporary regulatory review
established in Executive Order 12866.\16\ This final action was drafted
and reviewed in accordance with Executive Order 12866 and Executive
Order 13563. OIRA has determined that this final action is not a
``significant regulatory action'' as defined by section 3(f) of
Executive Order 12866.
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\15\ 58 FR 51735 (Oct. 4, 1993).
\16\ 76 FR 3821 (Jan.21, 2011).
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Executive Order 14192 (``Unleashing Prosperity Through
Deregulation'') requires that any new incremental costs associated with
new regulations shall, to the extent permitted by law, be offset by the
elimination of existing costs associated with at least 10 prior
regulations.\17\ This final action is considered an Executive Order
14192 deregulatory action.
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\17\ 90 FR 9065 (Feb. 6, 2025).
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B. Regulatory Flexibility Act
The Regulatory Flexibility Act generally requires an agency to
conduct a regulatory flexibility analysis of any rule subject to notice
and comment rulemaking requirements, unless the agency certifies that
the rule will not have a significant economic impact on a substantial
number of small entities.\18\ If the agency makes such a certification,
it shall publish the certification at the time of publication of either
the proposed rule or the final rule, along with a statement providing
the factual basis for such certification.\19\ For purposes of this
analysis, NCUA considers small credit unions to be those having under
$100 million in assets.\20\ The Board fully considered the potential
economic impacts of the regulatory amendments on small credit unions.
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\18\ 5 U.S.C.601 et seq.
\19\ 5 U.S.C. 605(b).
\20\ 80 FR 57512 (Sept. 24, 2015).
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The final rule is intended to ease the compliance burden on FCUs by
limiting the number of sources that FCUs of all sizes must check to
ensure compliance with applicable requirements. The rescission is also
designed to reduce confusion by allowing FCUs to focus principally on
applicable statutes and codified regulations. The rescission imposes no
new requirements that would result in FCUs (irrespective of size)
incurring an economic cost. To the extent the rescission has any
economic impact, it will be indirect by reducing the staff time and
other resources FCUs currently devote to checking potentially
duplicative sources to ensure compliance with existing requirements in
the Chartering Manual. Accordingly, NCUA certifies the final rule will
not have a significant economic impact on a substantial number of small
credit unions.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA) generally provides that
an agency may not conduct or sponsor, and not withstanding any other
provision of law, a person is not required to respond to a collection
of information, unless it displays a currently valid OMB control
number. The PRA applies to rulemaking in which an agency creates a new
or amends existing information collection requirements. For purposes of
the PRA, an information collection requirement may take the form of a
reporting, recordkeeping, or a third-party disclosure requirement. NCUA
has reviewed this rule and determined that it does not create any new
or revise any existing collections of information. Accordingly, no PRA
submissions to OMB will be made with respect to this rule.
D. Executive Order 13132 on Federalism
Executive Order 13132 encourages independent regulatory agencies to
consider the impact of their actions on state and local interests.\21\
NCUA, an agency as defined in 44 U.S.C. 3502(5), voluntarily complies
with the executive order to adhere to fundamental federalism
principles. NCUA expects that any effect on states or on the
distribution of power and responsibilities among the various levels of
government will be minor. This final action would only affect FCUs. The
final action reinforces existing regulatory requirements applicable
solely to FCUs and is not intended to affect the division of
responsibilities between NCUA and state regulatory authorities with
oversight of federally insured, state-chartered credit unions. The
rulemaking therefore does not have direct effect on the states, the
relationship between the national government and the states, or on the
distribution of power and responsibilities among the various levels of
government.
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\21\ 64 FR 43255 (Aug. 4, 1999).
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E. Assessment of Federal Regulations and Policies on Families
NCUA has determined that this final action will not affect family
well-being within the meaning of Section 654 of the Treasury and
General Government Appropriations Act, 1999.\22\ The final action
relates to the FOM requirements for FCUs, and any effect on family
well-being is expected to be indirect.
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\22\ Public Law 105-277, 112 Stat. 2681 (1998).
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F. Congressional Review Act
Subtitle E of the Small Business Regulatory Enforcement Fairness
Act of 1996, also known as the Congressional Review Act (CRA),
generally provides for congressional review of agency rules.\23\ NCUA
must submit a report to Congress and the Comptroller General when it
issues a final rule, as defined by the CRA.\24\An agency rule, in
addition to being subject to congressional oversight, may also be
subject to a delayed effective date if the rule is a ``major rule.''
OIRA has determined that this rule is not a ``major rule'' within the
meaning of the relevant sections of the CRA. NCUA will also file
appropriate reports with Congress and the Comptroller General so this
rule may be reviewed.
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\23\ 5 U.S.C. 801-808.
\24\ 5 U.S.C. 804(3).
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List of Subjects in 12 CFR Part 701
Advertising, Aged, Civil rights, Credit, Credit unions, Fair
housing, Individuals with disabilities, Insurance, Marital status
discrimination, Mortgages, Religious discrimination, Reporting and
recordkeeping requirements, Sex discrimination, Signs and symbols,
Surety bonds.
[[Page 50672]]
By the National Credit Union Administration Board, this 29th day
of July. 2026.
Melane Conyers-Ausbrooks,
Secretary of the Board.
[FR Doc. 2026-16028 Filed 8-5-26; 8:45 am]
BILLING CODE 7535-01-P
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</html>Indexed from Federal Register on August 6, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.