ALEXANDRIA, Va.–Today is the deadline for comment to NCUA on its proposed rulemaking to modernize the Federal Credit Union (FCU) Bylaws. It is the first proposal to update the bylaws since 2007.
Of particular note in the proposal is the addition of a section that describes 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. The trade associations have been calling on 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. The proposal, however, 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 comment after the proposal was released, NAFCU called for input on how 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.
For its part, NCUA noted the FCU Act provides only two mechanisms for correcting bylaws violations: (1) suspension or revocation of an FCU’s charter or (2) placing an FCU into conservatorship.
More information on the proposal can be found here: https://www.govinfo.gov/content/pkg/FR-2018-11-13/pdf/2018-24169.pdf
For additional info: www.ncua.gov