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NCUA Board Approves Final Rules on Voluntary Mergers and Field of Membership

The voluntary mergers final rule: (a) increases the required time for notice to FICU members in advance of the vote to a minimum of 45 days; (b) requires merging FICUs to disclose material merger-related compensation (exceeds the greater of 15 percent or $10,000) for certain employees and officials of the merging FICU (CEO/Manager, the four most highly paid employees, members of the board and supervisory committee); and (c) allows members of the merging FICU to comment on the merger proposal by submitting their comments to National Credit Union Administration (NCUA) for posting on a page on the NCUA’s website.

The field of membership final rule allows applicants for a community charter approval to use a narrative approach to establish a well-defined local community. The board will hold a public hearing for narrative applications when the proposed community exceeds 2.5 million people. The rule also permits a credit union to designate a portion of an area as its community without regard to division boundaries when the area is subdivided into metropolitan divisions. The rule maintains the population limit of 2.5 million for a community consisting of a statistical area or portion thereof (the proposal had suggested an increase up to 10 million).

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