Compliance Blog

Yesterday, NCUA held its monthly Board meeting.  You can access the results and the relevant documents here.  Overall, it was a good day for credit unions compliance officers. 

• NCUA issued a proposed rulemaking to amend its RegFlex rule to provide additional flexibility to qualifying federal credit unions when acquiring unimproved land for future expansion.  Now, when a credit union acquires unimproved land for future expansion and does not fully occupy it within a year, the credit union must partially occupy the completed premises within three years, or obtain a waiver.  The proposal would increase the three years to six years without necessitating a waiver.  NCUA also proposes to make conforming amendments to its fixed asset rule to provide consistency with the RegFlex changes.
• NCUA also issued a final rule that amends Part 740 of its rules and regs.  You may recall that in April, NCUA proposed that Part 740 be revised to allow insured credit unions greater flexibility in meeting the requirement of giving notice of their insured status. The final rule amends §740.5(b) as proposed to allow insured credit unions to satisfy the advertising statement requirement by using one of three methods:
  • The basic official advertising statement itself; or 
  • The shortened version of the official advertising statement, “Federally insured by NCUA” alone; or
  • The official insurance sign alone, as shown in §740.4(b).  That's right - you'd only need to use the sign, should you wish.

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Yesterday, the FDIC announced that it will broadcast its Board of Director's Meeting today at 10 a.m.  You can access information about that meeting here.  There is a very eye-catching agenda item:

  Memorandum and resolution re: Simplification of Deposit Insurance Rules for Trust Accounts.

The word on the street is that the FDIC may propose a major change regarding how trust accounts are insured.  NCUA's insurance system is very similar to the FDIC's, so this is something that you will want to keep a eye on.  We certainly will, for sure.

Have a great weekend, everyone!  (With the exception of the Illinois football team, that is.)