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Prepare for Jan. 2 FCU bylaws with Compliance Blog
NAFCU's Vice President of Regulatory Compliance Brandy Bruyere answered frequently asked questions on the NCUA's bylaws - both old and new - in a new post on the Compliance Blog. The NCUA Board last month unanimously passed a final rule that codifies in one place several existing NCUA legal opinions and clarifies several bylaw provisions.
Following the board's decision, NAFCU's Compliance team has published a number of blogs detailing the changes and covered the issue during the association's recent Regulatory Compliance Seminar.
Bruyere noted that the 2019 bylaws, which make changes to the rules regarding meeting attendance, expulsion of members and joint accounts, will become effective on Jan. 2, 2020, and apply only to newly chartered federal credit unions (FCUs). However, other FCUs may opt to adopt these bylaws in whole or in part, but they are not required to do so.
Regarding expulsion of members, Bruyere highlighted that the agency "is taking a strict reading of expulsion under the Federal Credit Union Act, which requires a special meeting and membership vote to expel someone, other than for nonparticipation."
"From the agency’s perspective, a limitation of services policy can allow FCUs to prohibit members who are being disruptive or abusing staff from accessing branches or otherwise having contact with staff," she added.
Bruyere also responded to questions regarding board and annual meetings and joint accounts, specifically if joint account owners can be co-borrowers on a loan from a FCU. For more, read the full Compliance Blog post.
NAFCU's Compliance Team publishes a new blog every Monday, Wednesday, and Friday on key regulatory issues affecting credit unions. Sign up to receive new Compliance Blog posts.