Credit unions will have an additional 60 days to submit comments on their federal regulator’s corporate credit union proposal as a result of unanimous action by the agency’s board, according to an announcement Wednesday.
The National Credit Union Administration (NCUA) in February proposed rule changes to Part 704 of its regulations to clarify, simplify, and update provisions of the rule. Changes highlighted by the agency include:
- permitting a corporate credit union to make a minimal investment in a credit union service organization (CUSO) without that organization being classified as a corporate CUSO and subject to heightened NCUA oversight;
- expanding the categories of senior staff positions at member credit unions who would be eligible to serve on the corporate credit union’s board;
- amending the prescriptive experience and independence requirements for a corporate credit union’s enterprise risk management expert; and
- clarifying the treatment of an investment in a subordinated debt instrument of a natural-person credit union.
The proposed rule also would allow corporates to invest in subordinated debt instruments issued by credit unions (authority to issue such instruments was proposed in January) under the institution’s lending authority, but the corporate would be required to fully deduct the amount of the instrument from tier 1 capital. It would also remove the minimum experience and independence requirement for a corporate credit union’s enterprise risk management expert.
The original public comment deadline for this proposed rule was May 26; the board’s action will push that to July 27, according to a Federal Register notice scheduled to publish April 13.
Reg lookup: Corporate Credit Unions