FCU Can Contract For Services From SEG Sponsor

May 17, 2001, 1:00 a.m. EDT 1 Min Read

- ALEXANDRIA, Va. (05/17/01) - A federal credit union may endorse orcontract with third-party providers that is or may become a selectemployee group (SEG), NCUA said in a new legal opinion letter. Thelegal opinion said IBEWSJ Cascade FCU, Salem, Ore., may enter anarrangement with a financial services firm to offer discountedfinancial counseling to members as permissible under NCUA's grouppurchasing regulations. However,, Federal CY bylaws would prohibita director who is associated with that firm from participating inthe decision whether to enter into that contract.

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