A final rule that broadens the definition of a federal credit union (FCU) “service facility” in connection with the addition of groups to the institution’s field of membership is scheduled to take effect Dec. 27, according to a recent Federal Register notice.
The final rule, adopted Nov. 18 by the National Credit Union Administration (NCUA) Board, provides that shared locations are service facilities for purposes of multiple-common-bond FCU additions of groups, regardless of whether the credit union has an ownership interest in the shared branching network providing services.
Contrary to the proposed rule, the final rule retains the exclusion of ATMs from the definition of service facility for additions of underserved areas. The final rule continues to provide that for an undeserved area in particular, a service facility must be a place where shares are accepted, loan applications are accepted, and loan proceeds are disbursed.
While an ATM cannot be treated as a “service facility” for an underserved area, the final rule provides that an electronic facility offering required services, such as a video teller machines, meets the revised definition.