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NCUA extends comment period for corporate rule amendments

Tuesday, the NCUA board extended the period for credit unions to comment on the proposed corporate rule amendments from Dec. 20 to January 28, 2011. The NCUA board issued the rule amendments at its November 18th NCUA meeting.

“We believe a 60-day comment period will balance the need for stakeholders to provide thoughtful feedback on the complex issues raised in our newly proposed corporate rule, while ensuring that the final provisions from both corporate rulemakings will take effect over a closely coordinated time frame,” said NCUA Chairman Debbie Matz. “The end result will be a corporate system that is better positioned to manage risks and safely serve
member credit unions.”

The proposed amendments would require corporates to establish new internal control reporting requirements, form an enterprise-wide risk management committee staffed with an independent risk management expert, conduct all board of director votes as recorded votes, and disclose CUSO compensation received by certain employees who are dual employees of corporates and corporate CUSOs. The proposed amendments also provide
for the equitable sharing of Temporary Corporate Credit Union Stabilization Fund expenses among all members of a corporate and permit a corporate to charge reasonable one-time or periodic membership fees. In addition, the proposal would amend 12 C.F.R. Parts 701 and 741 to limit natural-person credit unions to membership in one corporate at a time, beyond certain transition periods.

To learn more about submitting a comment letter on the corporate proposals, visit the LSCU Regulatory Action Calls and Comment Letters section of the website. Contact LSCU VP, Regulatory Affairs Bill Berg at 866.231.0545 ext. 1028 or Director, Compliance Scott Morris at ext. 2165 with questions or to submit a letter.