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NCUA Board Seeks Comments on Possible Credit Union Bylaws Changes

Board Action Bulletin

Credit Union Stakeholders Can Also Comment on a Proposal to Improve Procurement Process

ALEXANDRIA, Va. (March 15, 2018) – The National Credit Union Administration Board held its third open meeting of 2018 at the agency’s headquarters here today and unanimously approved two items:

  • An advance notice of proposed rulemaking seeking stakeholder comments on ways to streamline, clarify, and improve the standard federal credit union bylaws.
  • A proposal to adopt suspension and debarment procedures to establish an administrative process protecting the federal government’s interest in only doing business with presently responsible contractors.
 

Comments Sought on Possible Changes to Standard Credit Union Bylaws

Credit union stakeholders have an opportunity to comment on possible changes to the standard federal credit union bylaws following the Board’s approval of an advance notice of proposed rulemaking.

The Board is considering a number of significant changes to the standard bylaws to provide credit unions with greater flexibility in their operations and reduce regulatory compliance burdens. Under the Federal Credit Union Act, the NCUA Board is required to have a standard set of bylaws prospective credit unions can use in order to simplify the incorporation process. The agency’s Regulatory Reform Task Force has recommended that changes to the bylaws may be necessary, as they have not been updated in nearly 10 years.

The Board will accept general comments and is requesting specific comments on five questions:

  • How can the federal credit union bylaws amendment process be improved?
  • How can the NCUA Board clarify the bylaws provisions addressing limitation of service and expulsion of members?
  • How can the NCUA Board improve the bylaws to facilitate the recruitment and development of directors?
  • How can the NCUA Board improve the bylaws to encourage member attendance at annual and special meetings?
  • Should the NCUA Board eliminate overlaps between the agency’s regulations and the bylaws?

Stakeholders requesting a specific change to a provision of the standard bylaws should provide a brief statement regarding whether the Federal Credit Union Act would permit such a change. Some provisions of the standard Federal Credit Union Act bylaws are drawn directly from the law, and, therefore, may not be legally amended.

The advance notice of proposed rulemaking is available online here. Comments must be received with 60 days of publication in the Federal Register.

 

Proposed Procedures Would Improve Agency’s Procurement Practices

The NCUA Board also is seeking comments on a proposal to adopt contractor suspension and debarment procedures as part of its effort to modernize its procurement process.

The NCUA is not required to follow federal government acquisition laws and regulations, but the agency believes those include best practices, and suspension and debarment procedures have proven to be an important part of government procurement. These procedures would protect the agency by helping ensure the NCUA and other executive-branch agencies do business only with presently responsible contractors.

Comments on this proposal, available online here, must be received with 60 days of publication in the Federal Register.

The NCUA tweets all open Board meetings live. Follow @TheNCUA on Twitter, and access Board Action Memorandums and NCUA rule changes at www.ncua.gov. The NCUA also live streams, archives and posts videos of open Board meetings online.



NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. At MyCreditUnion.gov, NCUA also educates the public on consumer protection and financial literacy issues.

--NCUA--

Office of Public & Congressional Affairs

703.518.6330
pacamail@ncua.gov

Contacts:

John Fairbanks
Office: 703.518.6336
Mobile: 571.438.0801
jfairbanks@ncua.gov

Ben C. Hardaway
Office: 703.518.6333
Mobile: 703.298.5223
bhardaway@ncua.gov

Kenzie Snowden
Office: 703.518.6334
ksnowden@ncua.gov

"Protecting credit unions and the consumers who own them through effective regulation"

9/20/2018 5:52 PM