Regulatory Flexibility Program and Fixed Assets
Recently, NCUA proposed a change to its regulations that would give additional relief to FCU's who qualify as RegFlex credit unions. Currently, when a federal credit union acquires unimproved land for future expansion and does not fully occupy the land within one year, it must partially occupy the land within three years or obtain a waiver. NCUA's fixed asset rule is located at 12 C.F.R. 701.36.
The proposed rule would allow RegFlex credit unions up to six years to partially occupy unimproved land. This proposal only applies when a credit union purchases unimproved land. NAFCU submitted a comment letter seeking similar flexibility when a credit union purchases improved land. Keep an eye out for the final rule from NCUA early next year.
Wondering if your credit union is eligible for the Reg Flex program? Take a quick read through the September 2008 NAFCU Compliance Newsletter (members-only) and/or review Part 742 of NCUA's Regulations. If you qualify, you may find some regulatory relief.Â
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