NCUA Proposed Changes Regarding FCU Bylaws

CUNA
June 11, 2007

The National Credit Union Administration (NCUA) is seeking comments for sixty days on a proposal concerning federal credit union bylaws. A copy of the proposal is available at http://ncua.gov/RegulationsOpinionsLaws/proposed_regs/P-701.pdf

Under the proposal, NCUA would reincorporate the FCU Bylaws into its regulations. This action would make it clear that the agency can use a range of enforcement actions to enforce bylaws. The Supplementary Information accompanying the proposal clarifies that NCUA plans to use such authority only to enforce certain bylaws that address “fundamental, material rights” of members.

The proposal would establish a new standard bylaw regarding the responsibility of the Supervisory Committee to assume responsibilities of the credit union's board of directors temporarily if the entire board is simultaneously removed, such as at a special meeting, or unable to serve.

The proposal includes a procedural change regarding bylaw amendments that use identical language to nonstandard bylaws that the agency has already approved. While the proposed amendment must still be filed with the appropriate NCUA regional office, the NCUA regional director would have to respond to the request within 15 business days.

The proposal includes a new introduction to the bylaws that reflects their incorporation into the regulations and clarifies that for bylaw amendments that are identical to ones previously permitted by NCUA, the credit union should expect approval from its NCUA regional official within 15 days.

CUNA's comment call can be found at: http://www.cuna.org/reg_advocacy/reg_call/rcc_053107.html

Please submit your comments to CUNA by July 11, 2007. Please feel free to fax your responses to CUNA at 202-638-7052 or e-mail them to CUNA Deputy General Counsel Mary Dunn at mdunn@cuna.com . You may also contact her at 800-356-9655, ext. 6736.