NCUA Board to Consider Public Unit and Nonmember Shares

Logo for the National Credit Union Administration

The National Credit Union Administration (NCUA) Board will meet this coming Thursday, Oct. 24, at 7 a.m. (Pacific).

The agenda includes: 1) a final rule on public unit and non-member shares; 2) a proposed rule on chartering and field of membership; and 3) a board briefing on cybersecurity.

Public Unit and Non-Member Shares
In May of this year, the NCUA proposed amendments to the Public Unit and Nonmember Shares Rule to allow federally insured credit unions to receive public unit and non-member shares up to 50 percent of the credit union’s paid-in and unimpaired capital and surplus, less any exiting public unit and non-member shares.

The California and Nevada Credit Union Leagues supported the proposed rule as it will enhance credit unions’ ability to serve their members and communities while still providing adequate protection of the share insurance fund.

Chartering and Field of Membership
In a recent court ruling, a three-judge panel of appeals-court judges said the NCUA did not violate federal law when it allowed an expansion of its field of membership rules.

However, the court also ruled the NCUA must better explain the part of its rule that allows credit unions to serve core-based statistical areas without serving the area's urban core. It is expected this proposal will clarify that section of the rule and request public comment.

The Leagues will monitor the board meeting and provide an update soon after. NCUA Board meetings are broadcast via livestream video and can be accessed from NCUA’s homepage at Open board meetings are also tweeted live; follow @TheNCUA on Twitter.

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