A proposed rule to update the federal credit union (FCU) bylaws, published Tuesday in the Federal Register, is out for a 60-day public comment period that ends Jan. 14.
Issued by the National Credit Union Administration (NCUA) Board during its Oct. 18 open meeting, the proposed rule would update the current federal credit union bylaws, with particular focus on a credit union’s ability to limit services to a disruptive or abusive member. Also addressed are issues related to members’ share accounts; annual and special membership meetings; nominations and voting in credit union board elections; credit union board director emeritus and associate director positions; failure to attend board and committee meetings; and more.
The proposed rule includes some timing requirements regarding NCUA’s action on individual federal credit unions’ bylaws requests. If approved in its current form, the rule would set a 90-day calendar day deadline for NCUA’s Office of Credit Union Resources and Expansion (CURE) – the primary office handling bylaws amendments – to reach a decision on a bylaw amendment. If CURE doesn’t approve the amendment within that deadline, the rule would treat that as a denial, after which the credit union can appeal to the NCUA Board.
The FCU bylaws are provided for in Section 108 of the Federal Credit Union Act. Under the act, the NCUA Board must periodically prepare a form of bylaws to be used by FCU incorporators and to provide that form to FCU incorporators upon request; incorporators must submit proposed bylaws to the NCUA as part of the chartering process. Once NCUA has approved an FCU’s proposed bylaws, the FCU must operate according to its approved bylaws or seek agency approval for a bylaw amendment.
The FCU bylaws are in Appendix A to part 701 of NCUA’s regulations.