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August 26, 2016

NAFCU urges NCUA to update FCU bylaws

NAFCU Senior Regulatory Affairs Counsel Michael Emancipator on Friday reiterated the association's and its members' request that NCUA "explore provisions of the Bylaws that could be enhanced, streamlined and improved in order to provide additional flexibility to federal credit unions."

NAFCU further urged NCUA to issue a proposed rule or an advanced notice of proposed rulemaking to continue its work on improving the bylaws, Emancipator wrote in Friday's letter to NCUA Board Chairman Rick Metsger and Board Member J. Mark McWatters.

Emancipator cited the working group NCUA convened in 2014 to study possible improvements to the bylaws and resent NCUA the white paper NAFCU provided to them at the start of the working group. NAFCU's recommendations addressed clarification governing the duties of a credit union board's nominating committee, more flexibility for nominees to be elected by consent or acclamation and the flexibility for committees to establish a minimum age for a nominee.

NAFCU also made similar recommendations in 2012 and 2015, Emancipator wrote, when the association was responding to the agency's Annual Regulatory Review.

"As part of the agency's ongoing continual quality improvement initiative and related to its current efforts to modernize field-of membership rules, NAFCU believes now is an appropriate time for the agency to revisit improvement of FCU Bylaws," Emancipator wrote.