Credit unions with questions, comments or concerns about the latest NCUA proposed rulemaking are encouraged to contact the New York Credit Union Association.

At its September, and first in-person open board meeting since the COVID-19 pandemic began, the NCUA board of directors unanimously approved two items:

• a notice of proposed rulemaking on Federal Credit Union Bylaws, Member Expulsion, and
• a notice of proposed rulemaking on subordinated debt.

The proposed member expulsion rule that would amend the standard federal credit union bylaws to adopt a policy by which a FCU member may be expelled for cause by a two-thirds vote of a quorum of the FCU’s board of directors. Currently, a credit union could expel a credit union member in two ways: by a two-thirds vote of the membership present at a special meeting called for that purpose, and for non-participation in the affairs of the credit union as specified in a policy adopted and enforced by the board.

The proposed rule that would amend the Subordinated Debt rule, which became effective Jan. 1, 2022, would extend the Regulatory Capital treatment of Grandfathered Secondary Capital GSC and benefit eligible low-income credit unions participating in the U.S. Department of the Treasury’s Emergency Capital Investment Program or in other programs administered by the federal government.

Questions, comments or concerns can be directed to Kristina Persaud, the Association’s legislative analyst, at kristina.persaud@nycua.org.