July 14, 2014

NAFCU working group urges flexibility in FCU bylaws

July 16, 2014 – NAFCU on Monday submitted recommendations for Federal Credit Union Bylaws revisions aimed at providing greater flexibility to credit unions.

NCUA noted its intent to address the FCU Bylaws in 2012 and formed a working group of agency and industry representatives to review them last year. NAFCU formed its own working group of member representatives and association staff to review the bylaws and came up with a list of recommendaitons aimed at modernizing the bylaws.

Mike Coleman

NAFCU submitted its recommendations Monday. Sent with a letter from Regulatory Affairs Director Mike Coleman, the recommendations include, among other things, a change that would recognize the membership of a trust itself as a legal "person" entity. The recommendations also address 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.

NCUA has not conducted substantive revisions to the FCU bylaws in more than six years. "NAFCU and our members urge NCUA to adopt these recommendations in order to modernize the FCU Bylaws and afford greater flexibility to federal credit unions," Coleman wrote.