WASHINGTON -- CUNA and NAFCU leaders this week reviewed their respective proposals seeking regulatory relief

for credit unions and pledged to work cooperatively with NCUA Chairman Dennis Dollar and House Financial Services

Committee Chairman Michael Oxley, R-OH, who is spearheading the legislative effort.

Meeting by conference call Aug. 27 under the auspices of the National Credit Union Legislative and Regulatory

Coordinating Council, the two associations applauded both Chairman Oxley and NCUA Chairman Dollar for recognizing

credit unions' need for regulatory relief and making it a clear priority. They also expressed their appreciation

for Dollar’s solicitation of their input and expressed their desire to fully support the final list of

recommendations that the NCUA Board ultimately forwards to Chairman Oxley.

"We very much appreciate Chairman Dollar’s firm commitment to regulatory relief, and we are pleased that he has

offered us this opportunity to participate in the process," said NAFCU Chair Jim Mills, CEO of Three Rivers FCU in

Ft. Wayne, IN. "We look forward to providing Chairman Oxley with specific suggestions to make it easier for

America’s credit unions to better serve their members."

"Congress has not enacted a regulatory relief bill in several years. And this is the first time in many years

that an effort has been made to reach out to credit unions for suggestions on specific provisions that can be

incorporated into the bill," said CUNA Chairman Dave Maus, CEO of Public Service Credit Union, Denver, CO. "With

Chairman Oxley leading the effort, it virtually ensures regulatory relief will be a high priority for the

committee."

Rep. Oxley is expected to introduce his regulatory relief bill shortly after the Labor Day recess, beginning a

legislative process that will continue into next year. Last week CUNA and NAFCU provided a list of suggested

relief proposals to NCUA Chairman Dollar. NCUA will consider these proposals as it develops its own list that will

be sent to Chairman Oxley later this week.

CUNA’s preliminary recommendations for Chairman Oxley include authorizing credit unions to invest in private

debt instruments, authorizing credit unions to invest more than 1% in credit union service organizations (CUSOs),

permitting voluntary mergers of healthy credit unions, and giving credit unions the option of issuing uninsured

membership shares to count as net worth. CUNA suggested added relief could be attained by amending the FCU usury

ceiling, prompt corrective action provisions, member business lending limits and other lending restrictions, such

as the 12-year maturity on loans, and making field-of-membership changes consistent with the unique nature of

credit unions.

NAFCU’s recommendations include restoring pre-CUMAA authority for healthy credit unions to merge voluntarily,

allowing federal credit unions converting to a community charter to continue to serve their previous SEGs after a

conversion, eliminating "local" from the definition of community, eliminating the preference under CUMAA for the

formation of new credit unions over the addition of groups to an existing credit union, repealing the 12-year

limit on loans, and relaxing the current member business loan restrictions imposed by CUMAA.

NAFCU leaders on yesterday’s coordinating council conference call included Mills, NAFCU Vice Chair Diane

Furnas, CEO of Southwest Airlines FCU, Dallas, TX, NAFCU Legislative Chairman Mike Vadala, CEO of The Summit FCU,

Rochester, NY, NAFCU Director Brad Beal, CEO of Nevada FCU, Las Vegas, NV, NAFCU President and CEO Fred Becker,

and senior NAFCU staff.

In addition to Board Chairman Maus, CUNA representatives on the call were CUNA Treasurer Juri Valdov, CEO of

Northwest Federal Credit Union, Herndon, VA,