In a recent letter to NCUA, New York Credit Union Association President/CEO William J. Mellin said New York’s credit unions were overwhelmingly in support of any amendments that give federally chartered credit unions more flexibility to discipline disruptive members.

“Credit unions understand that the Federal Credit Union Act, unlike state counterparts such as New York’s, places strict limits on the steps credit unions can take to expel disruptive members,” Mellin wrote. “While the suggested reforms will be helpful, we also believe that additional steps can and should be taken.”

He suggested that there is widespread support for the creation of a new paragraph 5, to Section II, so that credit unions can easily delineate who is and who is not a member in good standing. Mellin also wrote that in drafting the final bylaws, the language should be more nuanced.

Additionally, Mellin suggested that:

• NCUA should give credit unions more flexibility to use of technology in conducting board/member business; and
• NCUA should clarify its suggestion that at least 12 members unaffiliated with the credit union be present at annual meetings to not penalize credit unions that can’t reach this threshold.

Mellin concluded that the Association and its members appreciate NCUA’s reconsideration of its bylaws. His final suggestion was that the agency’s board commit to more frequently and periodically making adjustments to the bylaw framework. He noted that the financial services industry is changing rapidly and that it is crucial that the bylaws be designed and implemented in a way that allows credit unions to keep up with these changes.