Six Board Meetings, But Monthly Rules? NCOFCU Credit Unions Seek Answers From NCUA

WASHINGTON--As implementation of the Credit Union Board Modernization Act (CUBMA) is underway, the National Council of First Responder Credit Unions (NCOFCU) has written to the NCUA to call for clarification on several issues.

The NCUA in August wrote that CUBMA, which allows eligible federal credit unions to hold as few as six board meetings per year rather than meeting every month, is “self-executing” and can be implemented once a federal credit union amends its bylaws.

However, while credit unions begin to implement, existing regulations and guidance from the agency still assume monthly meetings, which raises questions about reporting requirements, board approvals, and other credit union responsibilities, NCOFCU said.

NCOFCU asked the agency to provide clarification about monthly financial statements, Suspicious Activity Report notifications, loans to credit union officials, and investment reporting requirements.

“Credit unions want to know what information must still be provided to the board each month, what actions can wait until the next meeting, and what matters can be handled by a board committee or another process,” wrote Grant Sheehan, CEO | NCOFCU.

The letter outlines several questions and asks the agency to provide answers so that credit unions may utilize the flexibility afforded to them by CUBMA.

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