Oakland not deterred by NCUA Board's denial of OTR rulemaking petition

TUKWILA, Wash. – Gary Oakland, president/CEO, Boeing Employees’ Credit Union called the NCUA Board’s rejection of the Petition for Rulemaking filed by the credit union “a major disappointment for the dual chartering system.” Oakland said the effort by federally insured credit unions to create a more open and accountable system for determining the overhead transfer rate would continue. “The issue is not one of numbers. It’s whether the assumptions and definitions used to arrive at those numbers make any sense. By denying the petition, the board has chosen to keep the process secretive and subjective. We want it to be open and accountable,” said Oakland. BECU’s Petition for Rulemaking which it filed in September requested that NCUA initiate a notice and comment rulemaking to determine which of its activities were properly paid for by the OTR and to limit the activities paid for by the OTR to administrative costs only. At its regular November Board meeting, NCUA rejected BECU’s petition and asserted that the overhead transfer action does not meet the definition for required rulemaking under the Administrative Procedure Act. “The future of the dual chartering system requires and deserves true accountability through a notice and comment rulemaking.A strong, viable state charter system should not be undermined by NCUA funding decisions that create significant cost disadvantages for state-chartered credit unions,” said Oakland.