ALEXANDRIA, Va.–A new “proof of concept” application for groups wishing to obtain a federal credit union charter is out for comment for 60 days, according to a Federal Register notice from NCUA.
The application, submitted over an automated system, “will assist organizing groups in demonstrating that they have thoroughly evaluated the proposed credit union’s operations by documenting the most critical elements of a new charter, such as the purpose and core values, field of membership, capital, and subscribers,” the notice states.
The “proof of concept” application was first reported by Regulatory Report.
According to Regulatory Report, the notice says NCUA will review the data received and provide guidance before a formal application for a new FCU charter is submitted. “The purpose of this information collection is to identify the level of understanding an organizing group has before they make a formal charter application submission,” the notice reads.
The application was developed by NCUA’s Office of Credit Union Resources and Expansion (CURE), which reviews and approves federal credit union charter applications. It constitutes a new information collection, which has to be offered for public comment and reviewed by the Office of Budget and Management (OMB), Regulatory Report added.
NCUA estimates it will receive proof-of-concept applications from 24 respondents annually