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The NCUA Board meets next week and is set to issue a final rule related to Federal Credit Union Bylaws. The NAFCU-sought Credit Union Governance Modernization Act (CUGMA), enacted into law in 2022, required the NCUA to implement a rule to make changes to member expulsion procedures bylaws of federal credit unions (FCUs).

In response to the NCUA’s proposed rule, which would develop a policy through which an FCU member may be expelled “for cause” by a two-thirds vote of a quorum of the FCU’s board of directors, NAFCU called on the agency to adopt a realistic member expulsion policy that “avoids overly burdensome requirements, provides clear guidelines, and prioritizes the safety and welfare of credit union staff and boards of directors.”

The association offered its support for a final rule that more closely reflects the language of CUGMA and is cognizant of the varied nature of credit unions and avoids a one-size-fits-all approach to member expulsion. 

In addition to the bylaws final rule, the NCUA Board will discuss its 2023 mid-session budget.

NAFCU will monitor the meeting – set to begin at 10 a.m. Eastern Thursday and available via livestream on the agency’s website – and update credit unions on the details of the final rule.