The NCUA board voted to finalize a CUNA-supported final rule that provides regulatory relief to credit unions by giving them more flexibility in managing their fixed assets. The rule is the second piece of CUNA-backed regulatory relief involving fixed assets finalized by the board in recent years.
The rule amends the regulations surrounding federal credit union occupancy planning and disposal of acquired and abandoned premises.
Specifically, the final rule:
- Modifies the definition of “partial occupancy” to mean occupation and use, on a full-time basis, of at least 50% of the premises by a federal credit union, or by a combination of the federal credit unions and a credit union service organization in which the federal credit union has a controlling interest; and
- Amends the excess capacity provision to clarify that a federal credit union may lease or sell excess capacity in its facilities but need not anticipate that such excess capacity will be fully occupied by the credit union in the future.
The rule will be effective 30 days after publication in the Federal Register.
The board also approved an interim final rule implementing changes made by the Freedom of Information Act (FOIA) of 2016. The rule contains new procedures for disclosing records under FOIA, as well as fees and notifications to requestors of options for resolving disputes.
It will become effective immediately upon publication in the Federal Register.
Other items on the agenda include:
- Board approval of a rule from Texas on member business lending, which was submitted by the state for approval. The Texas rule is meant to provide parity with the NCUA’s revised member business lending rule; and
- A quarterly report on the Temporary Corporate Credit Union Stabilization Fund, which indicated that there will likely be no special assessments in the future. Total Income for the quarter ending Sept. 30 was $7.7 million ($27.3 million YTD) and net income of $478 million ($981.9 million YTD). The balance sheet showed assets and liabilities at $2,524.4 million.
Source: CUNA News Now