ARLINGTON, Va.-The trade group representing state regulators is urging NCUA to make some changes as part of the agency's annual Rule Review.
Among NASCUS' recommendation:
* NASCUS urged NCUA to consolidate all insurance rules in Part 741 of its Rules and Regulations. "It has long been NASCUS' experience that identifying which rules incorporated by reference apply to (federally insured, state-chartered CUs) and which rules do not apply has caused confusion among credit unions and state and federal examiners," NASCUS said.
* NASCUS recommends eliminating the requirement of Regional Director approval when purchasing a loan participation interest at an institution not insured by the share insurance fund. "This provision is more restrictive toward FISCUs than NCUA's provisions for federal credit unions (FCUs) found in 701.22 regarding FCU ability to participate in loans," NASCUS said, adding there is no compelling reason for the different standards for state and federally chartered institutions.
* NASCUS suggested the agency make parity changes to Part 701.21, Loans to Members and Lines of Credit to Members, to align it with the treatment of state Member Business recommended parity changes 701.32, Payments on Shares by Public Units and Nonmembers, and encourages the agency to include exemption language and defer to state law for certain areas of its conversion and merger rules for FISCUs.