CUNA Regulatory Comment Call


April 18, 2007

Member Inspection of FCU Books, Records and Minutes

EXECUTIVE SUMMARY

BACKGROUND

DESCRIPTION OF THE PROPOSAL

Member Inspection Rights Petition for Inspection Inspection Procedures Confidential Books, Records, and Minutes Costs Dispute Resolution

QUESTIONS REGARDING THE PROPOSAL

  1. Do you agree that this proposal does not represent a significant departure from existing practice that FCU’s must permit inspection under the same terms and conditions that state law requires for shareholders to inspect corporation records?

    Yes ______ No ______

    If yes, in what ways is it a significant departure?















  2. Is the proposed requirement that a minimum of one percent of the FCU’s members sign a petition to obtain access appropriate? (In some states this burden on the members might exceed the burden on shareholders to obtain access.)

    Yes ______ No ______

    Please explain.
















  3. The proposal indicates that it will take an FCU that receives a petition authority approximately 20 hours to evaluate the petition, locate relevant documents, and make them available for inspection and copying. Does the figure of 20 hours seem reasonable?

    Yes ______ No ______

    Please explain.
















    Is the 14 day turn-around time to respond to a petition generally sufficient time for an FCU?

    Yes ______ No ______

    Please explain.
















  4. Besides the three circumstances mentioned in the proposal, are there any other circumstances in which members do not/should not have the right to inspect portions of the books, records of minutes of an FCU?

    Yes ______ No ______

    If yes, what are those circumstances?
















  5. Should the cost of the document search and duplication fall on the petitioners and not on the FCU as set forth in the proposal?

    Yes ______ No ______

    Please explain.
















  6. NCUA does not believe that members will use this petition authority often. Do you agree?

    Yes ______ No ______

    Please explain.
















  7. Other comments?
















Eric Richard • General Counsel • (202) 508-6742 • erichard@cuna.com
Mary Mitchell Dunn • SVP & Deputy General Counsel • (202) 508-6736 • mdunn@cuna.com
Jeffrey Bloch • Assistant General Counsel • (202) 508-6732 • jbloch@cuna.com
Lilly Thomas • Assistant General Counsel • (202) 508-6733 • lthomas@cuna.com
Catherine Orr • Senior Regulatory Counsel • (202) 508-6743 • corr@cuna.com