ALEXANDRIA, Va.—At NCUA’s open board meeting next Thursday the agency will vote a final rule on federal credit unions’ investment in mixed-use buildings, according to an agenda released by the agency.
NCUA will also conduct a board briefing on the Temporary Corporate Credit Union Stabilization Fund.
NAFCU said it expects NCUA to approve the final rule on federal credit unions’ investment in mixed-use buildings.
Introduced in April, the NCUA’s proposed occupancy rule, formerly called the fixed-assets rule, modifies the existing definition of “partially occupy” so any federal credit union, or a combination of the federal credit union and a credit union service organization in which it owns a controlling interest, can meet the rule’s requirements if it uses at least 50% of the premises within six years of purchasing it.
The proposed rule also would amend the excess capacity provision in the NCUA’s incidental powers rule; the revision would specify that federal credit unions may lease or sell excess capacity in their facilities as long as the federal credit union has a reasonable expectation that it will eventually fully use the excess capacity, NAFCU explained.
Next week’s board briefing on the TCCUSF is specifically on the NCUA Guaranteed Notes program on the Legacy Asset Disposition Strategy. In October, the agency announced it was repaying the $1 billion outstanding balance on fund’s borrowing line with the Treasury Department.
With that final payment, the TCCUSF’s outstanding borrowings are fully paid off, which has prompted NAFCU to repeatedly ask the NCUA to make refunds to credit unions from the TCCUSF. The NCUA has said previously that 2021 is the earliest that credit unions could receive a refund, but NAFCU noted that the NCUA’s recent statements and actions open up the possibility that some refunds could occur before that date.
“NAFCU is pleased that the board has agreed to hold a briefing on the TCCUSF at our urging,” said NAFCU President and CEO Dan Berger. “We hope that credit unions will receive a refund from the fund sooner rather than later.”
The board next week is also set to:
- receive a quarterly report on the TCCUSF;
- issue a final interim rule under the Freedom of Information Act; and
- approve a revised Texas member business loan rule.