NCUA takes three actions geared toward flexibility

ALEXANDRIA, Va. (9/26/08)—The National Credit Union Administration (NCUA) Thursday approved a final rule giving federal credit unions more latitude in how they use the official share insurance sign in advertising and voted to put out for comment a plan that would give Reg Flex credit unions more flexibility in developing unimproved properties.

Click for slide show CUNA President/CEO Dan Mica (left) with NCUA Chairman Michael Fryzel before the start of Fryzel's first monthly board meeting. CLICK TO VIEW SLIDESHOW (Photo provided by CUNA)
The board also approved a final regulation intended to streamline the agency's system for complying with freedom of information and privacy laws.

It was the first open board meeting conducted by Chairman Michael Fryzel. Setting the tone and pace for the meeting in general, Fryzel made a concise opening statement. He said he was honored to sit as NCUA chairman and pledged that he and his "esteemed colleagues" on the three-member board will do "the best job we can."

Fryzel joins Vice Chairman Rodney Hood, whose term expires April 10, and board member Gigi Hyland, whose term extends to Aug. 2, 2011 on the board. Fryzel described the three items on the agenda Thursday as "noncontroversial" and there was a unanimous affirmative vote on each of the three actions.

The revision to the agency's rule governing the requirements for use of the official insurance sign and official advertising statement now gives credit unions the flexibility to use the basic form of the official statement, a shortened form, or just the official sign.

The new rule also clarifies that the font of the text in the official sign may be modified to ensure it is legible when used in an ad. The change moves the NCUA's rule into conformity with those of the Federal Deposit Insurance Corp. for banks.

The final rule on Freedom of Information Act (FOIA) requests and privacy laws combined both housekeeping and substantive changes. The new rule incorporates recent amendments to the Freedom of Information Act, adds definitions, and revises and clarifies provisions implementing the Privacy Act.

And in another action, the NCUA board agreed to seek comment for 60 days on a plan to allow credit unions eligible under the Regulatory Flexibility Program (Reg Flex) additional time to occupy properties bought in an unimproved state.

Currently, when a federal credit union acquires unimproved land for future expansion and does not fully occupy the completed premises within one year, it must partially occupy the property within three years or obtain a waiver.

The proposal would extend that three year period to six years. The 60-day comment period will commence once the NCUA plan is published in the Federal Register.

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