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NAFCU issues Final Reg on NCUA’s service facility rule
NAFCU Wednesday sent a Final Regulation Alert to members breaking down the NCUA’s final rule that modernizes the definition of “service facility” in the Chartering and Field of Membership Manual. The association's Final Regulation Alerts are member-only resources that feature full text and easy to read summaries for final rulemakings affecting credit unions.
Through the Final Regulation, NAFCU notes the NCUA’s final rule eliminates the ownership requirement for shared facilities, so that facilities of any shared branch network in which a federal credit union participates, regardless of ownership interest, would qualify as a service facility for the addition of groups or underserved areas.
In addition, the association noted that:
- the final rule includes electronic facilities like video teller machines in the service facility definition;
- the final rule drops a provision from the proposed rule that would have included ATMs in the definition of service facility for the addition of underserved communities; and
- for the addition of groups, the final rule requires that a service facility accept shares for member accounts, accept loan applications, or disburse loans, while for the addition of underserved areas the requirement for a service facility is to accept shares for member accounts, accept loan applications, and disburse loans.
The rule will become effective Dec. 27. For detailed background information of the finalized rule, including a section-by-section analysis, view the Final Regulation.