NAFCU welcomes move toward eased fixed-assets rule

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Mike Coleman

NAFCU welcomes NCUA’s move to propose an easing in the fixed-assets rule, as long urged by the association, and will closely review the proposal for its impact on member credit unions, Mike Coleman, NAFCU’s director of regulatory affairs, said today.

The proposed rule, issued by the board during today’s open meeting, is out for a 60-day comment period. It would remove the current requirement that federal credit unions seek NCUA approval before exceeding 5 percent investment in fixed assets and allow FCUs to set their own investment limits under an internal fixed assets management program. The FAM program would have to include a written board policy, board oversight and ongoing internal controls.

NAFCU has long sought an easing in the fixed-assets reg and has included the measure on its “Dirty Dozen” list of rules that could be improved or eliminated. The association will solicit input on how the proposed rule would affect members and will submit comments.

In addition to addressing the cap, the proposed rule would revise the occupancy requirement applied to premises acquired for future expansion. Where the current rule sets varied requirements on partial and full occupancy, today’s proposal would establish a single requirement – partial occupancy within five years from acquisition, whether premises are improved or unimproved.

NAFCU will publish a Regulatory Alert seeking members’ input.

 

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