NCUA Proposes to Update, Clarify, and Simplify Bylaws

The National Credit Union Administration (NCUA) Board has published in the Federal Register a list of proposed changes that are to update, clarify and simplify its Bylaws. As part of the process, NCUA solicits comments regarding the proposed changes.  Proposals include Bylaw Articles I-XII and XIV-XVII.

A few of the more substantive proposals include, but are not limited to:

• Not allowing a Federal Credit Union (FCU) to adopt an entirely electronic voting process;
• Establishing a live webcast of annual and special meetings for various uses;
• Clarification of membership requirements for an irrevocable trust account;
• Adding new language providing representative examples for FCUs to choose in establishing varying par values for different classes of membership;
• Details on how an FCU may handle an abusive or disruptive member;
• Further clarification regarding combinations of family members or FCU employees constituting a majority of the FCU board; and
• Additional flexibility in addressing an applicant’s request for review of a denied loan application.

The Federal Register contains detailed Article-by-Article Analysis.

The comment period ends January 14, 2019