NAFCU Vice President of Legislative Affairs Brad Thaler clarified in a message to defense-related credit unions Thursday that “nothing is proposed to change for credit unions in their ability to receive nominal fee leases” as Congress works out the final details of the 2019 National Defense Authorization Act (NDAA). Questions are arising from credit unions on this topic as some news reports have been misleading, Thaler explained.
Credit unions have nominal lease space in federal buildings and on military bases from a provision in the Federal Credit Union Act; Thaler reiterated that the NDAA pending before Congress does not change this.
He did note in his message that the House version of the NDAA does have a provision that would direct the Department of Defense (DoD) to give space to financial institutions on bases (not discretionary) and that the definition of financial institutions used only includes banks and not credit unions. However, the Senate version of the NDAA includes no such provision.
continue reading »