National Credit Union Administration seeks comments on four deregulatory proposals affecting shares, supplemental insurance notices, borrowing limits and nonmember share disclosures

The National Credit Union Administration has launched a fourth round of proposed regulatory changes under its Deregulation Project, requesting comments on four rulemakings intended to clarify guidance or remove unduly burdensome or duplicative requirements affecting federally insured credit unions. The package would remove the requirement for a credit union board to develop a written plan on the intended use of public unit and nonmember shares when those funds, together with borrowings, would exceed 70 percent of paid-in unimpaired capital and surplus. It would also repeal the rule requiring a federally insured credit union with supplemental share insurance to provide members 30 days’ notice before ending that coverage, leaving a notification requirement without a specified timeframe. A third proposal would delete the maximum borrowing authority provision from the federal share insurance regulations, eliminating the NCUA borrowing limit for federally insured state-chartered credit unions while leaving federal credit unions subject to the statutory borrowing limit and state-chartered credit unions subject to applicable state law. The final proposal would eliminate a state-chartered credit union requirement to identify nonmember share or deposit accounts on required reports and to notify nonmember account holders in writing that such accounts are not insured by the National Credit Union Share Insurance Fund, on the basis that similar disclosures are already required under the share insurance agreement. Stakeholders can submit comments on the notices of proposed rulemaking via the Federal Rulemaking Portal using the relevant docket numbers.