WASHINGTON (7/30/08)—The National Credit Union Administration (NCUA) should implement its three proposals to expand the definition of incidental powers for federal credit unions, but it should also go further than its current plan, according to the Credit Union National Association (CUNA). CUNA, commenting on an NCUA proposed rule that would add illustrations of permissible activities under the categories of correspondent services, operational programs, and finder activities, said it supports the agency plan as far as it goes. However, CUNA wrote in a July 28 comment letter, the NCUA and Office of the Comptroller of the Currency (OCC) use the same three-part test to determine appropriate incidental powers, but the OCC has been more liberal in according incidental powers than has been the NCUA. The federal credit union regulator should therefore use its interpretative authority to determine incidental powers for credit unions in a manner more consistent with OCC's incidental powers determinations. CUNA also urged the NCUA to allow for federal credit unions any state-authorized incidental powers in their state of operation, as long as the activity has not been prohibited by the Federal Credit Union Act. Additional new incidental powers recommended by CUNA include allowing federal credit unions to:
* Accept pre-paid funeral home accounts under the trustee or custodial services category; and * Manage repossessed residential properties for other credit unions.
CUNA also continues to encourage the NCUA to authorize a foreign currency investment pilot program as CUNA recommended in an October 2007 comment letter. The NCUA routinely examines one-third of its body of regulations each year to determine if any improvements can be made. The incidental powers proposal was the result of this routine look. Use the resource link below for more information on the NCUA incidental powers proposal.