Compliance: NCUA final rule on ‘service facility’ definition
NCUA issued a Letter to Federal Credit Unions (22-FCU-02) on the final rule amending the definition of “service facility” for multiple common-bond credit unions. The rule became effective Dec. 27, 2021.
The final rule provides that shared locations are service facilities for purposes of multiple common-bond federal credit union additions of groups, regardless of whether the federal credit union has an ownership interest in the shared branching network providing the locations,” the letter reads. “Shared locations, including electronic facilities offering required services such as video teller machines, are also service facilities for purposes of multiple common-bond federal credit union additions of underserved areas, regardless of whether the federal credit union has an ownership interest.
“If your multiple common-bond federal credit unions plans to add groups or underserved areas, you should be aware that the final rule only changes the ownership requirement related to shared locations,” it adds. “All other requirements related to service facilities, eligibility of groups, and the qualification of underserved areas remain unchanged.”
The letter also includes information on multiple common-bond federal credit unions adding occupational or associational groups; and underserved areas.
CUNA’s CompBlog also contains additional analysis of the rule and links to other resources.