The National Credit Union Administration (NCUA) Board has unanimously approved a proposed rule to streamline NCUA's fixed assets regulation to make the rule easier for credit unions to understand.
The National Credit Union Administration (NCUA) Board has unanimously approved a proposed rule to streamline NCUA’s fixed assets regulation to make the rule easier for credit unions to understand.
NCUA’s current fixed assets rule (Section 701.36) allows federal credit unions to purchase, hold and dispose of property necessary or incidental to their operations. These fixed assets include office buildings, branch facilities, furniture, computer hardware and software, and ATMs.
Credit unions should find it easier to follow NCUA’s fixed assets regulation under a proposed rule approved by the Board. The proposed rule does not make substantive changes to the regulation or impose new requirements for fixed assets.
“At NCUA, we continually review our rules to find ways to make them clearer and easier to understand,” NCUA Board Chairman Debbie Matz said. “The latest product of my Regulatory Modernization Initiative is the proposed rule on fixed assets, which Board Member Fryzel suggested we clarify. By reorganizing the rule, adding definitions and using the principles of plain writing, we’re making it easier for credit unions to follow the rule.”
In keeping with the Plain Writing Act of 2010, the proposed rule revises the regulation for clarity and readability, including:
Amending regulatory text using plain language;
Adding an introduction to define the scope and application of the regulation; and
Clarifying the processes for obtaining regulatory waivers.
The proposed rule also reorganizes existing definitions and adds new definitions for the terms “partially occupy” and “unimproved land or unimproved property.” The changes will help clarify a potentially confusing aspect of the current regulation.
The Board issued the proposed rule with a 60-day comment period, once published in the Federal Register.