Federally insured, state-chartered credit unions (FISCUs) in Oregon will continue to be exempt from federal rules on credit union member business lending (MBL) under action Thursday by the National Credit Union Administration (NCUA) Board.
The NCUA Board first exempted Oregon’s FISCUs from the federal MBL rule, Part 723 of the NCUA rules and regulations, in June 2002. Voting 3-0 on Thursday, it found that the Oregon rule, recently amended, still “at least overs all the provisions and is no less restrictive than Part 723 of the NCUA’s regulations.”
According to section 723.10(a) of the NCUA’s regulations, FISCUs in a given state are exempt from compliance with Part 723 if “the state supervisory authority administers a state commercial and member business loan rule for use by federally insured credit unions chartered in that state, provided the state rule at least covers all the provisions in this part and is no less restrictive, upon determination by NCUA.”