CUNA supports an approach to federal credit union bylaws that provides those institutions flexibility to work within the bylaws, as well as an efficient amendments process when deviation is appropriate, CUNA wrote to NCUA Monday. CUNA submitted its comment letterin response to NCUA’s bylaws proposed rule.
“As NCUA proceeds with this rulemaking, we urge the agency to keep in mind the importance of flexibility when it comes to bylaws,” CUNA’s letter reads. “As NCUA acknowledges in the proposal, and CUNA agrees, an overly rigid approach—including a lack of opportunity to deviate from the FCU bylaws—can inhibit an FCU’s ability to respond to changing market practices or to address basic corporate governance matters in a prompt and efficient manner.”
CUNA also believes that federal credit union act, as it applies to bylaws, is overly prescriptive and that decisions pertaining to federal credit union bylaws should be entirely in the hands of the federal credit unions themselves, not the regulator.
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