WASHINGTON—CUNA supports an approach to federal credit union bylaws that provides those institutions flexibility to work within the bylaws, as well as an efficient amendments process when deviation is appropriate, CUNA wrote to NCUA.
CUNA submitted its comment letter in response to NCUA’s bylaws proposed rule.
“As NCUA proceeds with this rulemaking, we urge the agency to keep in mind the importance of flexibility when it comes to bylaws,” CUNA’s letter reads. “As NCUA acknowledges in the proposal, and CUNA agrees, an overly rigid approach—including a lack of opportunity to deviate from the FCU bylaws—can inhibit an FCU’s ability to respond to changing market practices or to address basic corporate governance matters in a prompt and efficient manner.”
CUNA said it also believes the Federal Credit Union Act, as it applies to bylaws, is overly prescriptive and that decisions pertaining to federal credit union bylaws should be entirely in the hands of the federal credit unions themselves, not the regulator.
CUNA said it supports most of the objectives of NCUA’s proposal, which are aimed at ensuring members have timely information regarding meetings, encouraging greater participation during meetings, and ensuring FCUs have the tools necessary to deal with member issues as they arise.
However, CUNA said it does not necessarily agree with the proposed methods to achieve such objectives.
“For example, the proposal would reduce the potential pool of meeting participants that constitute a quorum, which we believe will make it difficult for some FCUs to achieve a quorum on a consistent basis,” CUNA said.
NAFCU provided its comments to NCUA Monday.