Comment Call: NCUA Proposed Rule on Fixed Assets, Member Business Loans, and Regulatory Flexibility Program

CUNA
April 9, 2010 | COMMENTS

The National Credit Union Administration (NCUA) Board has adopted a proposed rule to make changes to its Regulatory Flexibility Program (RegFlex) pertaining to fixed assets, member business loans (MBL), stress testing of investments, and discretionary control of investments.

Specifically, the proposal would require RegFlex credit unions to comply with the general limitation of a federal credit union's investment in fixed assets to no more than 5% of its shares and retained earnings.

In regard to MBL, the proposed rule would subject RegFlex participants to the collateral and security provisions requiring the personal liability and guarantee of the borrower's principals.

Additionally, RegFlex credit unions would be required to stress test securities in certain instances.

When delegating discretionary control over investments, the proposal would place on RegFlex credit unions the same 100% net worth limitation that applies to all federal credit unions.

Comments are due to NCUA by May 24, 2010; please submit your comments to CUNA by May 10.

Please e-mail your responses to Senior Vice President and Deputy General Counsel Mary Dunn at mdunn@cuna.coop and Regulatory Counsel Luke Martone at lmartone@cuna.com. You may also contact Luke Martone at (800) 356-9655, ext. 6743, if you have questions. Click here to access the proposed rule in the Federal Register .

> View the full comment call at CUNA.org

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