The NCUA board passed its final Payday Alternative Loan (PAL) II rule Thursday, as well as final rules on bylaws and supervisory committee audits. Representatives from the Kentucky Credit Union League, Cooperative Credit Union League, Cornerstone Credit Union League, Credit Union Association of the Dakotas and the Northwest Credit Union Association were in attendance at the meeting, and were acknowledged by NCUA Chairman Rodney Hood.
The PAL II final rule does not replace the existing PAL, but allows additional short-term, small-dollar options for federal credit unions.
The final rule:
It will become effective 60 days after publication in the Federal Register.
The rule will become effective 90 days after its publication in the Federal Register.
The final supervisory committee audit rule is designed to update outdated provisions of the regulation and provides federal credit unions with assets of less than $500 million with added flexibility.
The rule rill be effective 90 days after publication in the Federal Register.
The board also heard an update on the National Credit Union Share Insurance Fund for the quarter ending June 30.
Additional meeting details can be found on CUNA’s Removing Barriers Blog.