ALEXANDRIA, Va. (9/6/13)--A final version of fixed asset regulations will lead the day when the National Credit Union Administration board holds its next open board meeting on Sept. 12.
The NCUA in March proposed plain language revisions to the agency's fixed-asset rule. New definitions and rewordings were also proposed at that time.
The changes would impact NCUA's current fixed-assets rule, Section 701.36, which allows federal credit unions to purchase, hold and dispose of property necessary or incidental to their operations. These fixed assets include office buildings, branch facilities, furniture, computer hardware and software, and ATMs.
The Credit Union National Association has spoken in support of these proposed fixed-asset rule changes, noting the amendments would clarify the regulation by improving its organization, structure and ease of use. However, CUNA also urged the agency to make greater improvements to the rule.
CUNA's recommendations for improving the fixed-assets rule include:
- Eliminating the current regulatory limit imposed on the ownership of fixed assets, which is 5% of a federal credit union's shares, since it is not required under the Federal Credit Union Act;
- Improving the rule's definition of "partially occupy" to clear up some credit union confusion;
- If the cap is retained, using the blanket waiver concept to give credit unions additional flexibility under the fixed-assets rule;
- Adding an appeal process to denied fixed-asset rule waiver requests; and
- Issuing an annual report detailing fixed-asset rule waiver-request statistics from each region.
The NCUA will also discuss a community charter expansion request filed by Peoples Advantage FCU, Chester, Va.
A proposed rule addressing charitable donation authorizations is also on the open meeting agenda. The closed portion of the agency's board meeting is set to follow the open session. NCUA supervisory activities are the lone item on that meeting agenda.
The Thursday board meetings will be the first attended by new NCUA board member Richard Metsger, who was sworn in late last month in a private ceremony on Capitol Hill.