At its third scheduled open meeting of the year, the NCUA Board unanimously approved a proposed rule to streamline NCUA's fixed assets regulation to make the rule easier for credit unions to understand.
At its third scheduled open meeting of the year, the NCUA Board unanimously approved a proposed rule to streamline NCUA’s fixed assets regulation to make the rule easier for credit unions to understand.
As noted in the latest issue of the NCUA Report, the agency explains that its 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.
The agency believes credit unions should find it easier to follow its fixed assets regulation under this proposed rule. The proposed rule does not make substantive changes to the regulation or impose new requirements for fixed assets on federally insured credit unions. Instead, it clarifies the language of the existing rule, making it easier for credit unions to understand.
“At NCUA, we continually review our rules to find ways to make them clearer and easier to understand,” NCUA Board Chairman Debbie Matz tells NCUA Report readers. “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, which ends May 20, 2013. For more information or to submit a comment, go to http://go.usa.gov/26HW.
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