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Newest corp. CU plan needs significant changes CUNA
WASHINGTON (1/25/11)--Significant changes to the National Credit Union Administration’s (NCUA) November proposed rule regarding corporate credit unions are needed before the Credit Union National Association (CUNA) could support the plan, the association said Monday. The November proposal was sent out for comment just two months after the NCUA approved its comprehensive overhaul of the regulatory structure of the corporate credit union system. This later proposed rulemaking is intended, in part, to limit credit union membership in corporates to one corporate at a time, with some exceptions, and to change some internal control and reporting requirements. In a comment letter to the NCUA released Monday, CUNA said it does not support the limit on membership and does not consider it good public policy. “We believe the better public policy would be to allow natural person credit unions to decide which corporates they want to join and to be able to support them without these membership limitations. This approach would benefit natural person credit unions as well as corporate credit unions and would not jeopardize the safety and soundness of either group of credit unions or the National Credit Union Share Insurance Fund,” CUNA Deputy General Counsel wrote in the CUNA letter. CUNA also expressed serious concerns about the agency’s intention to ask for “voluntary” contributions from non-federally insured credit unions (non-FICUs) to the agency’s corporate credit union stabilization fund. CUNA said the NCUA has no authority to assess non-FICUs and would not be able to defend that position legally. In fact, CUNA maintained, the statutory record “could not be clearer” that only federally insured credit unions may be assessed for corporate stabilization costs. In its extensive comments regarding the NCUA “technical corrections” to its initial corporate rule, CUNA also said that many of the issues addressed in the November rule--such as internal controls and reporting requirement--are already adequately addressed elsewhere in NCUA regulations.


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