The NCUA Board adopted a final rule implementing the Credit Union Governance Modernization Act at its Thursday meeting. The bill—and subsequent rulemaking—updates the federal credit union member expulsion process.
Specifically, it permits a federal credit union to expel a member for cause by two-thirds vote of a quorum of the federal credit union’s board of directors.
It also includes a CUNA-requested standard disclosure form of the expulsion policy that can be used by a federal credit union rather than developing its own.
The rule will become effective 30 days after publication in the Federal Register.
The board also received an update on the 2023 budget. NCUA staff estimate spending will be approximately $5.1 million lower than the board-approved 2023 Operating Budget, based on projections through the end of the year.
The projected surplus will cover six new positions for 2023 at a cost of $394,000 (2023) and $1.4 million (2024):
Agency staff is working on the draft 2024 budget, which should be available in the coming months.