NCUA to vote on final occupancy rule Dec. 15

The NCUA board will vote on a final rule giving credit unions more flexibility for the use of credit union-owned fixed assets at its Dec. 15 meeting. The meeting will be the agency’s final board meeting of 2016, with the next one scheduled for Jan. 19.

The proposed rule has CUNA’s, as it would give credit unions the additional flexibility for the use of credit union-owned fixed assets by not requiring full occupancy and allowing more flexibility in leasing and renting unused space.

Specifically, it would eliminate the current requirement that credit unions eventually fully occupy or use its land and building, replacing it with a requirement that federal credit unions partially occupy building or premises within 6 years. Partial occupancy is defined as the use of at least 50% of a building or premises.

The meeting will also feature a board briefing on the NCUA Guaranteed Notes legacy asset disposition strategy. CUNA has requested NCUA to provide more information to credit unions on the timing and amount of corporate stabilization refunds, and welcomes the briefing.

 

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