WASHINGTON (6/19/08)—The Credit Union National Association (CUNA) is asking credit unions to comment on a plan to update federal rules addressing permissible incidental powers. In May, the National Credit Union Administration (NCUA) proposed amendments to its incidental powers regulation (Section 721) to clarify and update definitions of permissible activities in correspondent and operational programs, and finder activities. The proposal would add examples of activities that have been recognized as permissible since Part 721 was last amended in 2001. Also, the proposed rule would recognize that federal credit unions (FCUs) may provide correspondent services to foreign as well as federal or state-charted credit unions. The following are among the questions that CUNA would like credit unions to address:
* What issues may arise from the provision of the proposal to include foreign credit unions under the correspondent services category? *Are there any unforeseen problems that may arise in including payroll services within the operational programs category? * Are there any specific concerns with the provision of the proposal to clarify that finder activities include an FCU’s negotiation of group discounts? * Are there any specific concerns with the provisional to clarify that finder activities include the performance of administrative functions for outside vendors?
Comments are due to CUNA by July 15 and to the NCUA by July 28. For more on CUNA’s comment call and more information of the NCUA proposal, use the resource link below.