NCUA Seeks Comments On Whether It Should Issue Rules On Charter Changes And Share Insurance Terminations

CUNA
February 14, 2008 | COMMENTS

The National Credit Union Administration Board is seeking comments through March 31, 2008 on an Advance Notice of Proposed Rulemaking under Parts 708a and 708b of its regulations regarding mergers, conversions to another type of financial institution, and terminations of federal share insurance. The ANPR was approved for comments at the Board's January meeting. Click here for a copy of the ANPR.

CUNA's Examination and Supervision Subcommittee, along with our Federal Credit Union Subcommittee, will be reviewing the ANPR and helping to develop CUNA's comment letter.

EXECUTIVE SUMMARY

• NCUA is asking credit unions whether it should develop new regulations that would address situations in which a federally insured credit union merges or converts to another type of financial institution, other than a mutual savings bank.
• NCUA is also asking for comments on whether it should amend its current rules on mergers, charters conversions and changes in account insurance.
• More specifically, the agency is raising questions about whether its current rules in these areas adequately protect members' interests.
• Issues NCUA has targeted for comments include communications to members, voting integrity, fiduciary duties of board and managements; and merger dividends.
• However, comments on related issues not raised by NCUA can also be included in letters to the agency on the ANPR.

Comments may be submitted to NCUA through the agency's website or through regcomments@ncua.gov. Commenters should include their names and “Comments on Advance Notice of Proposed Rulemaking for Parts 708a and 708b” in the email subject line. Letters may also be faxed to 703-518-6319 or mailed to Ms. Mary Rupp, NCUA Board Secretary, 1775 Duke Street, Alexandria, VA 22314-3428.

Please share your letters with us and send them to CUNA's Regulatory Research Counsel Luke Martone at lmartone@cuna.coop. If you have questions about this Comment Call or the ANPR, contact Mary Dunn, CUNA's SVP and Deputy General Counsel at mdunn@cuna.coop.

> Read the full comment call and questions here @ CUNA.org.