ARLINGTON, Va. — NCUA's proposal to add a conflict of interest provision to eligible obligations dealings will help ensure these decisions are made in the best interest of the institution, NAFCU wrote in its comment letter.

While recognizing that such conflicts are rare, NAFCU Senior Vice President of Governmental Affairs Dan Berger wrote, "Recognizing that self-dealing and insider benefit should not be a motivating factor in a credit union's business decisions, NAFCU generally supports the proposed rule." He stressed that NAFCU fully supported the exceptions allowed for in the rule for permissible payments, including employee incentives and bonuses.

Berger added, "NAFCU believes that while it is important to ensure fair dealing in credit union transactions, it is equally imperative that credit unions maintain the ability to fully exercise their business judgment to make decisions that are truly in their members' best interest."

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