Statutory Lien

Issuing agencies

Abstract

On February 25, 2026, NCUA (or `agency') published a proposed rule to solicit comments on the removal of a provision of NCUA regulations regarding federal credit unions' (FCUs) statutory lien authority. Upon further consideration, and based on the comments received, the Board is issuing this final rule, as proposed, to remove the term, "except as otherwise provided by law or except as otherwise provided by federal law." This language does not provide any assistance to FCUs in determining whether such statutory or case law exists, therefore it has no material value.

Full Text

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<title>Federal Register, Volume 91 Issue 212 (Wednesday, November 4, 2026)</title>
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[Federal Register Volume 91, Number 212 (Wednesday, November 4, 2026)]
[Rules and Regulations]
[Pages 69491-69492]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22536]



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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. 91, No. 212 / Wednesday, November 4, 2026 / 
Rules and Regulations

[[Page 69491]]



NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 701

RIN 3133-AF86


Statutory Lien

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final rule.

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SUMMARY: On February 25, 2026, NCUA (or `agency') published a proposed 
rule to solicit comments on the removal of a provision of NCUA 
regulations regarding federal credit unions' (FCUs) statutory lien 
authority. Upon further consideration, and based on the comments 
received, the Board is issuing this final rule, as proposed, to remove 
the term, ``except as otherwise provided by law or except as otherwise 
provided by federal law.'' This language does not provide any 
assistance to FCUs in determining whether such statutory or case law 
exists, therefore it has no material value.

DATES: This final rule is effective December 4, 2026.

FOR FURTHER INFORMATION CONTACT: Gira Bose, Senior Staff Attorney, 
Office of General Counsel, at (703) 518-6562 or <a href="/cdn-cgi/l/email-protection#0562676a7660456b6670642b626a73"><span class="__cf_email__" data-cfemail="791e1b160a1c39171a0c18571e160f">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Introduction

A. Background

    Section 701.39 of the NCUA's regulations implements the statutory 
lien authority granted to FCUs under the Federal Credit Union Act (FCU 
Act).\1\ The regulation, which converted a prior policy statement into 
a regulation in 1999, states that an FCU has the power to impress and 
enforce a lien against a member's shares and dividends to satisfy any 
outstanding financial obligation owed to the credit union.\2\
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    \1\ 12 U.S.C. 1757(11).
    \2\ 64 FR 56956 (Oct. 22, 1999).
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    The proposed rule, issued on February 25, 2026, put forward an 
amendment to the regulation by removing the definition of the term 
``[e]xcept as otherwise provided by law or except as otherwise provided 
by federal law.'' \3\ The Board determined that this definition is not 
helpful. The fact that an FCU must determine which laws apply to its 
operations and must be aware that some legal requirements supersede 
others, is a universal consideration and not one that is specific to 
this regulation. Thus, the Board proposed to repeal paragraph 
701.39(a)(1).
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    \3\ 12 CFR 701.39(a)(1).
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B. Legal Authority

    The Board is issuing this final rule pursuant to its authority 
under the 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).\4\ 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.\5\ Section 207 of the FCU Act is a 
specific grant of authority over share insurance coverage, 
conservatorships, and liquidations.\6\ 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.\7\ 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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    \4\ 12 U.S.C. 1752-1775.
    \5\ 12 U.S.C. 1766(a).
    \6\ 12 U.S.C. 1787.
    \7\ 12 U.S.C. 1789.
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II. Final Rule

A. Overview

    This final rule follows publication of the proposed rule and takes 
into consideration the comments received on the proposal. By the close 
of the public comment period on April 27, 2026, the Board had received 
11 comments. Commenters were two credit unions, five state and regional 
credit union leagues or associations, three national credit union trade 
associations, and one individual member of the public who did not 
disclose a group affiliation. After careful consideration of the issues 
raised by the commenters, the Board has decided to adopt the proposal 
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. 
Nine of the eleven commenters expressed support for the proposal 
generally stating that:
    <bullet> the provision identified for removal is redundant and does 
not provide substantive guidance to credit unions;
    <bullet> the proposal would remove potentially confusing language 
from NCUA's regulation and have no effect on lien authority or 
obligations; and
    <bullet> from an operational perspective, FCUs must already 
maintain processes to identify and apply applicable statutory and case 
law when exercising their authorities, including statutory lien rights. 
The presence or absence of this definitional language does not alter 
that responsibility.
    Two commenters opposed the rule. One stated that preserving the 
current statutory lien framework best balances member transparency, 
operational certainty, and safety and soundness. The other commenter 
did not speak specifically to this proposal, but voiced opposition to 
deregulation in general. This commenter stated that the suggestion that 
certain requirements are overly burdensome warrants careful scrutiny. A 
regulation requiring staff time or administrative effort does not 
necessarily indicate that the requirement lacks value. Oversight, 
documentation, and verification processes inevitably require time and 
resources, but those efforts are part of maintaining responsible 
governance and protecting member assets.
    The Board agrees that deregulatory proposals must be carefully 
considered and appropriately balanced with the need to maintain the 
safety and soundness of the credit union system. The Board also 
believes that this amendment will not jeopardize that balance. As a 
number of commenters noted, the term ``except as otherwise provided by 
law or except as otherwise provided by federal law'' does not provide 
any assistance to FCUs in determining whether such statutory or

[[Page 69492]]

case law exists. And its removal does not diminish an FCU's obligation 
to determine, as in all cases, if there are other laws that apply to 
its activities. Thus, this rule is being finalized as proposed.

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. 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. This final rule was drafted and 
reviewed in accordance with Executive Order 12866 and Executive Order 
13563. OIRA has determined that this final rule is not a ``significant 
regulatory action'' as defined in section 3(f) of Executive Order 
12866.
    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. This final rule is considered an E.O. 14192 deregulatory 
action.

B. The 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.\8\ 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.\9\ For purposes of this 
analysis, the NCUA considers small credit unions to be those having 
under $100 million in assets.\10\ The Board fully considered the 
potential economic impacts of the regulatory amendment on small credit 
unions.
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    \8\ 5 U.S.C. 601 et seq.
    \9\ 5 U.S.C. 605(b).
    \10\ 80 FR 57512 (Sept. 24, 2015).
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    The proposed rule eliminates a nonsubstantive reference in Sec.  
701.39 regarding statutory liens. Accordingly, the NCUA certifies the 
final rule will not have a significant economic impact on a substantial 
number of small credit unions.

C. The 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 final 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. Analysis on Executive Order 13132 on Federalism

    Executive Order 13132 encourages certain regulatory agencies to 
consider the impact of their actions on state and local interests. The 
NCUA, an agency as defined in 44 U.S.C. 3502(5), voluntarily complies 
with the executive order to adhere to fundamental federalism 
principles. This proposed rule is intended to eliminate an unnecessary 
reference without making any substantive change. The regulation applies 
only to FCUs. Thus, it is not intended to affect the division of 
responsibilities between the NCUA and state regulatory authorities with 
oversight of federally insured, state-chartered credit unions.

E. Assessment of Federal Regulations and Policies on Families

    The NCUA has determined that this final rule will not affect family 
well-being within the meaning of section 654 of the Treasury and 
General Government Appropriations Act, 1999. The final rule amends the 
regulation regarding an FCU's authority to impose a statutory lien on a 
member but makes no substantive change; thus, this proposed rule is not 
expected to have any effect on family well-being.

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.\11\ NCUA 
must submit a report to Congress and the Comptroller General when it 
issues a final rule, as defined in the CRA.\12\ 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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    \11\ 5 U.S.C. 801-808.
    \12\ 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.

    By the National Credit Union Administration Board, this 2nd day 
of November 2026.
Melane Conyers-Ausbrooks,
Secretary of the Board.

    For the reasons stated in the preamble, the Board amends 12 CFR 
part 701 as follows:

PART 701--ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS

0
1. The authority citation for part 701 continues to read as follows:

    Authority: 12 U.S.C. 1752(5), 1755, 1756, 1757, 1758, 1759, 
1761, 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 12 U.S.C. 4311-
4312.


Sec.  701.39  [Amended]

0
2. Amend Sec.  701.39 by removing paragraph (a)(1) and redesignating 
paragraphs (a)(2) through (5) as paragraphs (a)(1) through (4).

[FR Doc. 2026-22536 Filed 11-3-26; 8:45 am]
BILLING CODE 7535-01-P


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