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OneSource FCU CEO Encouraged by NCUA Proposed Rule that Gives More Flexibility in Managing Fixed Assets
Wednesday, August 20, 2014 6:35 AM

The National Credit Union Administration says federal credit unions would gain greater flexibility in their management of fixed assets under a proposed rule (Part 701.36) approved by the board in July. The proposed rule would eliminate the current requirement that a federal credit union with assets of $1 million or more that wants to make investments in fixed assets exceeding 5 percent of shares and retained earnings must obtain an agency waiver.

In the latest issue of the NCUA Report, Matz says, “Our intent is to allow federal credit unions to manage their own fixed-asset purchases without having to seek permission or waivers from NCUA. So, the proposed rule will cut red tape, and provide regulatory relief for more than 3,500 federal credit unions.”

Bob Peterson, president and CEO of OneSource FCU is encouraged by NCUA’s move on this matter.

“Any effort to relieve regulatory burden is certainly welcomed,” Peterson tells the Leaguer. “For any credit union seeking to expand their presence in the community with a physical branch, for example, this proposed rule would make the acquisition of a new building less cumbersome from a regulatory standpoint.”

The fixed-assets proposed rule would:

  • Allow federal credit unions to exceed 5 percent limit without prior NCUA approval, provided they do so safely and soundly by establishing and following fixed-asset management policies and programs.
  • Simplify the partial occupancy requirement for premises acquired for future expansion.
  • Eliminate or streamline certain aspects of the fixed-asset waiver requirements.

Credit unions can read more about the proposed rule in the August 2014 issue of The NCUA Report. Other articles in the August edition include:

  • Chairman’s Corner: We’re Still Listening
  • Board Actions: Mid-Year Budget Adjustments Save Credit Unions $1.1 Million
  • Top 10 Cyber Security Areas Examiners Look At
  • Opportunities, Risks in the Improving Economy
  • Are You Prepared for Changes in Interest Rates?
  • Updates Make FAQ+ a More Valuable Tool
  • Reporter on Deadline: Understanding the Basics of Media Relations
  • NCUA Releases Videos on Preventing Employee Dishonesty and Fraud