CUNA Regulatory Comment Call


January 10, 2003

NCUA Amends Corporate Federal Credit Union Bylaws

(NOT A MAJOR RULE)

EXECUTIVE SUMMARY

The NCUA Board issued a proposal revising the Corporate Federal Credit Union Bylaws to update, modernize and clarify these rules. The proposed revisions, published in the Federal Register on December 27, 2002 are due on February 25, 2003. Please click here for a copy of the proposal.

NCUA strongly encourages corporate federal credit unions (corporates) to adopt the revised bylaws when they are finalized, but corporates are not required to do so. They may use the old bylaws or substitute certain provisions of the new bylaws into their existing bylaws. NCUA cautions corporates that if they only use certain portions of the bylaws, their bylaws may be inconsistent. NCUA's corporate bylaws are binding on corporates, but the NCUA routinely approves requests for individual corporate changes.

In general, the more important bylaw changes allow for the following:

Please send your comments to CUNA by February 10, 2003. Please feel free to fax your responses to CUNA at 202-638-7052; e-mail them to Associate General Counsel Mary Dunn or Assistant General Counsel Michelle Profit at mdunn@cuna.com or mprofit@cuna.com; or mail them to Mary or Michelle c/o CUNA’s Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, Suite 600, Washington, D.C. 20004-2601.

BACKGROUND

The final bylaws will contain a table of contents. The changes to the bylaws are listed below by article:

Article II - Renumbered Article III: Membership

Article III – Renumbered Article IV: Share of Members

Article IV - Renumbered Article V: Meetings of Members

Article V - Renumbered Article VI: Elections

Article VI - Renumbered Article VII

Article VII - Renumbered Article VIII

Article VIII - Renumbered Article IX

Article X, XI and XIII

Article XIV - Renumbered Article I

Article XV – Renumbered Article XI

Article XVI – Renumbered Article XII

QUESTIONS REGARDING THE PROPOSAL

  1. Does your credit union support the changes that allow for electronic elections, notices and conferences?













  2. Does your credit union support the provision that allows a credit union to remain a member until they withdraw or are expelled?













  3. Does your credit union support the provision that permits a corporate to restrict services to a member no longer in the field of membership and addresses the termination of membership in the case of a member converting to another form of financial institution?













  4. Do you support the relaxation of quorum requirements and member requirements for calling a special meeting?













  5. Would this proposal result in costs or benefits to your organization? Please explain.













    Please submit your address and phone number.













Eric Richard • General Counsel • (202) 508-6742 • erichard@cuna.com
Mary Mitchell Dunn • SVP & Associate General Counsel • (202) 508-6736 • mdunn@cuna.com
Jeffrey Bloch • Assistant General Counsel • (202) 508-6732 • jbloch@cuna.com
Catherine Orr • Senior Regulatory Counsel • (202) 508-6743 • corr@cuna.com