A proposal that would offer additional regulatory relief under the National Credit Union Administration’s (NCUA) fixed-assets regulations was approved Thursday by the NCUA board. Specifically, the proposal eliminates a requirement that a federal credit union must plan for, and eventually achieve full occupation of acquired premises.
It does retain the requirement that a credit union “partially occupy” a premises defined as use on a full-time basis of at least 50% of the premises, or by a combination of the credit union and a credit union service organization controlled by the credit union.
It further amends the excess capacity provision to clarify that an FCU may lease or sell excess capacity in its facilities, but it does not need to anticipate that the capacity will ultimately be occupied by the FCU in the future.
In its comment letter last year on the fixed-assets proposal, the Credit Union National Association called for the NCUA to revise the definition of “partial occupancy” to allow any reasonable use of land or premises by a credit union that is related to its operations as a not-for-profit financial cooperative.
Comments on the proposal will be due 60 days from its publication in the Federal Register, which is expected in the coming days.