CUNA Regulatory Comment Call
July 3, 2007
- The National Credit Union Administration (NCUA) Board has issued a proposal to amend its rule governing the purchase, sale, and pledge of eligible obligations by adding a conflict of interest provision similar to the one in the general lending rule.
- NCUAs current rule provides that a federal credit union (FCU) may purchase its members eligible obligations (loans and groups of loans it is authorized to make) from any source, subject to certain limitations, provided the loans are ones that the FCU is empowered to grant, with a limitation of 5% of the FCUs unimpaired capital and surplus. NCUA maintains that similar to situations in which a federal credit union is the original lender to its member, eligible obligation transactions may present the same types of conflict of interest concerns.
- The proposal, issued as part of the agencys ongoing review of its regulations each year, would generally provide that an official, employee, or immediate family members of such individuals may not receive, directly or indirectly, any commission, fee or other compensation in connection with an eligible obligation transaction.
- Comments on the proposed rule will be due by August 27, 2007. Please submit your comments to CUNA by August 16, 2007.
Please feel free to fax your responses to CUNA at 202-638-7052; e-mail them to Senior Vice President and Deputy General Counsel Mary Dunn at firstname.lastname@example.org and to Senior Assistant General Counsel Jeff Bloch at email@example.com; or mail them to Mary and Jeff in c/o CUNAs Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, Suite 600, Washington, DC 20004-2601. You may also contact us at 800-356-9655, ext. 6032, if you would like a copy of the proposed rule, or you may access it here.
QUESTIONS TO CONSIDER REGARDING THE PROPOSED RULE ON ELIGIBLE OBLIGATIONS
- Do you believe this rule is needed to ensure that FCUs make decisions concerning
the purchase and sale of eligible obligations based on appropriate business
- Other comments?.
Eric Richard General Counsel (202) 508-6742 firstname.lastname@example.org |
Mary Mitchell Dunn SVP & Deputy General Counsel (202) 508-6736 email@example.com
Jeffrey Bloch Assistant General Counsel (202) 508-6732 firstname.lastname@example.org
Lilly Thomas Assistant General Counsel (202) 508-6733 email@example.com
Catherine Orr Senior Regulatory Counsel (202) 508-6743 firstname.lastname@example.org