WASHINGTON (9/19/13)--Changes to the National Credit Union Administration's fixed-asset rule, adopted at its Sept. 12 open board meeting, will go into effect Nov. 18, according to a document published in the Wednesday Federal Register.
The Credit Union National Association supported the amendments to the regulation governing federal credit union ownership of fixed-assets. Although the new final rule does not make any substantive changes to regulatory requirements, CUNA has said that the plain language revisions, new definitions and revised wording could help credit unions with their compliance efforts.
Overall, the rule allows federal credit unions to purchase, hold and dispose of property necessary or incidental to their operations. These fixed assets include office buildings, branch facilities, furniture, computer hardware and software, and ATMs.
The NCUA has said the rule changes will also offer greater flexibility to federal credit unions. "Those that receive a waiver from the 5% fixed-assets limit will have the ability to make multiple purchases of fixed assets within a 1% buffer above their approved waiver limit. This change is intended to eliminate the need for a federal credit union to make repeated waiver requests for minor acquisitions," the agency wrote in its proposal document.
Use the resource link to access the Federal Register document.