NAFCU Suggests Changes to NCUA's FCU Bylaws Proposal

ALEXANDRIA, Va.–In response to NCUA’s proposals for updating federal credit union bylaws, NAFCU has proposed several bylaw amendments it said will carry out the agency’s intent to update, clarify and simplify the federal credit union bylaws “while allowing the industry the flexibility necessary to work within their unique fields of membership.”

According to NAFCU, some of its proposals, along with its separate call for NCUA to expedite the process for expelling a member who is abusive or conducting an illegal act, are included in its comment letter. 

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The full comment letter can be found here.

NAFCU, which said it has ardently advocated for bylaws changes, shared with the NCUA its bylaws proposals, which include adjustments to the amendment process, shares of members, limitation of services, meetings of members, elections, recruitment and development, and expulsion.

When it comes to NCUA's proposed changes to FCU bylaws that would add a section describing the concept of "member in good standing" to address limitation of services to those violent and abusive members, NAFCU said the agency has not proposed a more streamlined method for expulsion, and is calling on NCUA to give credit unions the flexibility to craft a policy that best suits their needs when dealing with members who engage in illegal or abusive activities.

Separately, during an earlier conference call with the media, CUNA said it, too, would be stressing the importance of flexibility when it comes bylaws. 

“We don’t necessarily agree with the proposed methods” being proposed, a CUNA spokesperson said.

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Copyright Year: 2019
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