Federal Register - Credit Unions Proposals

Public Unit and Nonmember Shares

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AI Summary

• The NCUA Board proposes removing the requirement for a written plan documenting intended use of borrowings, public unit, or nonmember shares if they exceed 70% of a FICU's capital and surplus. • This change aims to provide greater flexibility while maintaining accountability through principles-based supervision.

Texas Relevance

The article does not explicitly mention Texas, TX, TCUD, or any Texas-specific entities. It is a general proposal applicable to all federally insured credit unions.

Original Content

The NCUA Board (Board) seeks comment on a proposed rule to amend the NCUA's public unit and nonmember share rule to remove the requirement for a written plan to document the intended use of any borrowings, public unit, or nonmember shares if, collectively, those funds exceed 70 percent of the federally insured credit union's (FICU's) paid-in and unimpaired capital and surplus. FICUs would remain subject to the limits and other regulatory requirements governing public unit and nonmember shares. Removing this regulation will provide greater flexibility while holding FICUs accountable for managing the associated risks through a principles-based supervisory approach.