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NCUA Chairman J. Mark McWatters, in a letter to credit unions Monday, explained key provisions of the NCUA's voluntary mergers rule, which went into effect yesterday. NAFCU had expressed concerns about the proposed rule, but NCUA made certain positive changes to the final rule that were responsive to NAFCU's recommendations.

A main component of McWatters' letter was detailing the member-to-member (MTM) communications process, which is related to the rule's provision that established a portal for members of the merging credit unions to provide comments about the proposed merger to the NCUA on its website.

In addition, the rule:

• extends the required member notice in advance of a merger vote to a minimum of 45 days;

• requires merging credit unions to disclose merger-related compensation increases above $10,000 or 15 percent of compensation, whichever is greater, for certain employees and officials of the merging credit union; and

• clarifies the contents and format of members' notices.

McWatters further explained the bylaw amendment that was needed for the extended member notice timeline, and also touched on the rule's other provisions.