ALEXANDRIA, Va. — The NCUA Board voted 2-1 today to reincorporate the Federal Credit Union Bylaws into federal regulation.
Despite assurances from NCUA that they are not interested in becoming bylaw police, the credit union trade associations will keep a close eye on enforcement. The bylaws were removed from the regs as part of the overall deregulation movement in the 1980s.
NCUA Vice Chairman Rodney Hood cast the dissenting vote. "I have asked a lot of questions of the NCUA staff about the necessity of this proposal and could only come to one conclusion–incorporating the bylaws into regulation is not only excessive, but unnecessary," he said during his remarks at today's board meeting.
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NCUA Chairman JoAnn Johnson and Board Member Gigi Hyland did not agree that the reincorporation created new regulatory burdens and were only being put in place to protect fundamental member rights, particularly in mutual savings bank conversions where the state courts have failed to act or not acted in time to make a difference.
CUNA and NAFCU continued to express concerns that the agency would get further involved in bylaw disputes than the rule's preamble portends.
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