ALEXANDRIA, Va. — NCUA has approved updates to its chartering rules for corporate CUs, the first time it has done so in 30 years.
Under the regulator's interpretation, effective 30 days after publication in the Federal Register, a corporate charter application will need to be submitted by a group of at least seven people that represent different natural person credit unions. The application must satisfy the NCUA that the new corporate would be viable based on assessment of the proposed FOM and other factors. It must also be determined that the new corporate would provide needed services to its members.
Some of the changes in the new rule from earlier guidance include:
• Clarification on the timeframe for a newly chartered corporate to meet certain capital requirements.
• Assurance from the agency that the mandatory Letter of Understanding and Agreement required for a new charter will consider the future success of the corporate.
• The addition of the right of charter applicants to petition the NCUA directly for a vote on an application where either: the OCCU director determined the application does not merit approval, or the applicants believe the OCCU has moved too slowly on the application.
