Mon, Dec 19, 2016
The NCUA board voted last week to approve a final rule giving credit unions more flexibility for the use of credit union-owned fixed assets. The MD|DC Credit Union Association has obtained a copy of the new rule for credit unions to review. CLICK HERE to view the rule.
The rule would give credit unions the additional flexibility for the use of credit union-owned fixed assets by not requiring full occupancy and allowing more flexibility in leasing and renting unused space.
- Eliminates the current requirement that credit unions eventually fully occupy or use its land and building, replacing it with a requirement that federal credit unions partially occupy building or premises within 6 years. Partial occupancy is defined as the use of at least 50% of a building or premises.
- 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.
The meeting was the agency’s final board meeting of 2016, with the next one scheduled for Jan. 19.
Members with questions are encouraged to contact Glen Cooney, VP of Advocacy and Legislative Affairs at 443-325-0775 or email@example.com