CUNA: Let FCUs Set Their Own Bylaws

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CUNA is calling for federal credit unions to be given more options when it comes to their bylaws, including the ability to draft their own bylaws consistent with guidance provided by NCUA. In a comment letter to the agency, CUNA urged it to consider a "new approach" permitting the drafting of bylaws by the respective FCU "as long as essential and necessary provisions, as determined by the agency, are included."

CUNA said NCUA should retain its current bylaw standards, along with the options NCUA has approved, and continue to permit federal credit unions to submit nonstandard bylaws for approval, if they wish.

But CUNA also called for the bylaw drafting by federal credit unions, following the guidance that NCUA provides through a list "containing specific issues and content requirements that a federal credit union must include."

"Our recommendation recognizes that a sizeable group of federal credit unions, particularly smaller ones, may generally want to use the bylaws NCUA develops and thus be assured their bylaws conform to legal requirements," wrote CUNA Senior Vice President Mary Dunn.

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