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CUNA to NCUA: Modernize Bylaws
Tuesday, August 4, 2015 6:35 AM

While the National Credit Union Administration is working on revisions to its bylaws, Credit Union National Association thinks the agency should review its requirement that all federal credit unions use a single set of bylaws, regardless of size and complexity.

In a letter sent to NCUA yesterday morning, CUNA wrote, “In our view, this ‘one-size fits all’ approach to credit union bylaws is archaic. For example, it may be sufficient for the board of a small credit union to meet every other month as opposed to monthly. The NCUA should provide flexibility to credit unions of varying size and complexity for purposes of their corporate governance.”

CUNA suggests that the NCUA issue comprehensive bylaws and highlighted several areas that are the subject of proposed rules, including:

  • Field of membership. CUNA reiterated its previous comments that the NCUA provide more field of membership flexibility, as the federal charter is falling behind many state charters;
  • Low-income designation. CUNA requested the NCUA do more to allow credit unions to obtain the designation, and asked the agency to revise the procedure for losing the designation in order to allow more certainty for credit unions; and
  • Prompt corrective action. CUNA continues to be concerned with the statutory authority of the agency to issue a two-tiered risk-based capital proposal. CUNA also called for the elimination of the capital adequacy requirement.

Other areas addressed in the letter include: other real estate owned properties, executive compensation in connection with loan growth, loan participations, check-cashing for non-members, mergers and conversions and various technical items.