ALEXANDRIA, Va. — The NCUA's proposed rule regarding federalcredit union ownership of fixed assets doesn't make any substantive changes to the rule;rather, it merely clarifies the regulation so credit unions betterunderstand how to comply.

The proposed changes, revealed Thursday during the regulator'sMarch board meeting, replace regulatory text with so-called“plain language,” add an introductory section, reorganize existingdefinitions and add new ones, and clarify the waiver process.

Staff Attorney Pamela Wu told the board when presenting theproposed rule that it redefines terms that credit unions had toldthe NCUA were unclear.

Specifically, the rule redefines terms in a provision thatrequires a credit union to partially occupy unimproved property,with both the “partially occupy” and “unimproved property”definitions receiving additional clarification.

The proposed rule also intends to clarify the NCUA'sexpectations for waiver requests, as well as its obligations inreviewing those requests.

In the proposal, the NCUA issued an informal comment request forideas to improve the wavier process, admitting the current rule issomewhat inconsistent, uneven and burdensome in somecircumstances.

“The board emphasizes that NCUA is committed to making theagency's waiver process more consistent and user friendly andwelcomes public comment on ways of doing so,” the proposed rulesaid.

Language treatments proposed would clarify exactly when aparticular requirement or limitation is subject to waiver by theNCUA, and would describe the agency's obligations in each provisionthat is subject to a waiver.

Comments on the proposed rule are due 60 days after it ispublished in the Federal Register.

The NCUA Board also approved a community charter conversionrequest from the $313 million Cinfed FCU of Cincinnati. The credit union has penetrated 74%of its potential current membership and has seen its primary selectemployee group, the federal government, downsize in recent years,Chairman Debbie Matz said. She said the conversion “makes sense forthe long haul” of the credit union.

As of Dec. 31, 2012, Cinfed served nearly 30,000 members, allgained from SEGs. The conversion will expand the credit union'sfield of membership to include a four-county area in the Cincinnatimetropolitan area. Three of the four counties are across the OhioRiver in Kentucky: Boone, Campbell and Kenton. Hamilton County, thefourth county, is located in Ohio and includes Cincinnatiitself.

Matz asked Consumer Access Analyst Elliot Weiss why Cinfedrequested to serve only four of the 14 counties that make up theCincinnati metropolitan statistical area. He said the four countiesform a well-defined local community, which is designated as a “CoreBased Statistical Area” with a population of 2.5 million orless.

Additionally, the four counties provide public transportationaccess to Cinfed locations, he said.