ALEXANDRIA, Va.—The NCUA board will vote on a final public unit and non-member shares rule, and issue a notice of public rulemaking on chartering and field of membership at its open meeting Thursday.
The board will also receive a briefing on cybersecurity.
NCUA's proposal allows federal credit unions to receive public unit and nonmember shares up to 50% of paid-in and unimpaired capital and surplus less than any public unit and nonmember shares.
While the proposed rule would eliminate the waiver option in exchange for a higher general limit and modify the method by which the limit is measured, NAFCU has recommended NCUA retain the alternative dollar limit and consider increasing it to at least $5 million to ensure that smaller credit unions that rely on a large volume of nonmember shares obtain relief.
As CUToday.info reported here, the American Bankers Association recently filed a petition with the U.S. Court of Appeals for the D.C. Circuit for an en banc rehearing of its lawsuit challenging the NCUA's 2016 FOM rule. The appeals court had previously issued a decision largely in favor of the NCUA on key issues in the lawsuit – including, the agency's authority to issue the rule – via a three-judge panel in August.
In addition, the agency last year finalized a rule that further reformed FOM rules. Details of the notice of public rulemaking will be released at the start of the NCUA board meeting Thursday.
McWatters’ Forecast
Speaking to the Northwest Credit Union Association’s MAXX meeting last week in Spokane, NCUA Board Member J. Mark McWatters said in response to the court’s ruling the agency will look to clarify its rules around serving the core, or urban center, of SMSAs.
In its ruling, the U.S. Court of Appeals remanded the portion of the rule—without vacating it entirely—that addressed core-based statistical areas “for further consideration of the discriminatory impact it might have on poor and minority urban residents.” The provision permits credit unions to serve core-based statistical areas without serving the urban core that defines the area, an issue in the case that was the subject of questioning by the judges when the case was heard.
CUToday.info will have full coverage of the NCUA board meeting.