Newsroom

March 31, 2015

NAFCU seeks comments on fixed-assets proposal

NAFCU is seeking member comments on NCUA's new fixed-assets proposal, which would eliminate the 5 percent limitation on federal credit union investments in fixed assets and establish a six-year time period for partial occupancy of premises acquired for future expansion.

Members' input to NAFCU's official comment is due April 19. NCUA is taking comments from the public until April 29.

The current proposal is revised from the one issued by the agency last year. "While the 2014 proposal would have required FCUs to implement a written broad-approved policy in order to exceed the five percent limit, this proposal removes the limit wholesale, without prior NCUA approval and with no written policy required," the alert notes.

The current proposed rule also addresses the requirement regarding occupancy of premises owned. It would establish a single time period for partial occupancy of any premises acquired for future expansion by permitting FCUs up to six years from the date of acquisition to meet the partial occupancy requirement, regardless of whether the premises are improved or unimproved property.

The proposal would also eliminate the requirement to apply for a waiver from partial occupancy rules within 30 months of acquisition; it would permit federal credit unions to apply at any time for such a waiver.

NAFCU has pushed for relief for credit unions from this requirement. The current rule applies to federal credit unions with $1 million or more in assets.