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CUNA Comment on NCUA Bylaws Proposal
August 22, 2007
FOR IMMEDIATE RELEASE
Contact:
Patrick Keefe, CUNA Communications
(202) 508-6765; pkeefe@cuna.com
Bylaw disputes should be kept outside of the examination process and NCUA’s authority on bylaws should focus only on disagreements that involve fundamental issues of members’ rights or boards’ responsibilities, CUNA told NCUA in a letter commenting on its recent bylaws rule proposal. Further, CUNA pointed out that the proposal does not give sufficient deference to the ability of each federal credit union to settle bylaw disputes for itself, first, under its own internal procedures before turning to the agency for assistance.
In the alternative, CUNA recommends that NCUA not promulgate a new rule, but instead amend the Introduction to the Bylaws, thus providing provide sufficient notice to stakeholders that the agency has changed its policy on bylaw enforcement and will be available to help resolve bylaw disputes that cannot be settled through a credit union’s internal process.
Additionally, CUNA has developed a one-page set of suggested “guidelines” for enforcement of federal credit union bylaws. The guidelines recognize NCUA has legal authority to enforce bylaws, but due to number of practical and operational concerns, the guidelines oppose NCUA’s enforcement of bylaws that do not address members’ fundamental rights and merely address administrative issues. The guidelines also seek to preclude the potential for NCUA examiners to intrude, under the auspices of bylaw regulation, into the daily affairs of a credit union.The complete text of CUNA’s letter and guidelines is attached in the single PDF document.
Copyright © 2008 - Credit Union National Association, Inc.