ALEXANDRIA, Va.—NCUA has now published in the Federal Register its proposed rulemaking to modernize the Federal Credit Union (FCU) Bylaws.
Of note, the proposal would add a section describing the concept of "member in good standing" to address limitation of services to those violent and abusive members, but does not address the issue of expulsion, noted NAFCU, which added the association has urged NCUA to give credit unions the flexibility to craft a policy that best suits their needs when dealing with members who engage in illegal or abusive activities.
However, the proposal specifies that the board "continues to believe that having a uniform set of FCU Bylaws is more consistent with the spirit of the FCU Act."
In a Regulatory Alert sent to member credit unions this week, NAFCU asked how the NCUA should define and clarify the terms "violent," "belligerent" and "disruptive" in the context of defining a "member in good standing," and if credit unions have any other examples that should be incorporated.
The proposal also includes a 90-day deadline for bylaws amendments; NAFCU had urged a longer amendment deadline. Credit unions would have more flexibility to utilize technological resources for voting in elections under this proposal as well.