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Incidental powers okd shared insurance sign unveiled
WASHINGTON (10/17/08)—The National Credit Union Administration (NCUA) Thursday approved an updated list of pre-approved incidental powers for credit unions and asked for comments on a plan to amend share insurance sign requirements for federally insured credit unions participating in shared branding networks. The NCUA changed its incidental powers rule (Part 721) by adding
Click to view larger image Before the official board meeting, the NCUA hosted a brief reception in honor of International Credit Union Day. From left, NCUA Associate General Counsel John Ianno; Dave Marquis, director of NCUA's Office of Examination and Insurance; and Kathy Thompson, CUNA senior vice president and associate general counsel for regulatory compliance and legislative law. (Photo provided by CUNA)
illustrations of permissible activities under the categories of correspondent services, operational programs, and finder activities. The new final rule, unchanged since it was proposed, is intended to consolidate published legal opinion letters issued since 2001. Examples of newly included incidental powers for federal credit unions include: providing correspondent services to foreign as well as federal or state-chartered credit unions; finder activities to introduce members to an outside vendor; and payroll services. In addition to the illustrations contained in the regulation, NCUA staff clarified that, upon request, credit unions may seek a determination by NCUA whether a certain activity qualifies as an incidental power. The NCUA board also approved a thirty-day comment period for a proposed rule to amend the share insurance sign requirements for federally insured credit unions participating in shared branding networks. The NCUA staff explained that a comment period was being issued, rather than an interim final rule, to allow for comments that may educate staff on some inner workings of shared branching with which they may be unfamiliar. The proposal is intended to simplify the NCUA’s existing rules governing a required second sign that must be adjacent to the official NCUA insurance sign in shared-branching situations. For instance, currently the second sign must list each federally insured credit union served by a teller, along with a statement naming those credit unions that are federally insured. The proposed rule would replace the required list of credit unions with a general statement that not all of the credit unions served by the teller are federally insured and members should contact their credit union for further information. (See related story: NCUSIF report delivered; “underserved” plan held over) Use the resource link below for more information on the incidental powers rules and the insurance sign proposal.
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