This week, the National Credit Union Administration (NCUA) board met for its July board meeting. This was the last meeting before the summer break, with the next board meeting occurring in September.
Final Rule: FCU Bylaws (Member Expulsion) [Part 701, Appendix A]
The board adopted a final rule to implement the Credit Union Governance Modernization Act of 2022. The final rule, adopted largely as proposed, permits a federal credit union (FCU) to expel a member for cause by a two-thirds vote of a quorum of the FCU’s board of directors.
The final rule includes a standard disclosure form of the NCUA expulsion policy outside of the language in Article XIV of the FCU Bylaws. At its discretion, an FCU may opt to use the standard disclosure form rather than develop its own.
In the Leagues’ comment letter, we indicated that each credit union faces different challenges and therefore urged the NCUA to provide them with ample flexibility within their FCU Bylaw structure to conduct and continue business operations.
The final rule will become effective 30 days after publication in the Federal Register. The Leagues will provide a detailed summary soon.
2023 Mid-Session Budget
The board received update on the 2023 budget. Based on projections for the remainder of the year, NCUA staff estimates that spending will be approximately $5.1 million lower than the Board-approved 2023 Operating Budget. The projected surplus will cover six new positions for 2023, at a cost of $394,000 in 2023 and $1.4 million in 2023. These include:
The NCUA is currently working on the draft 2024 budget, which we should see it within the next few months.