Credit unions cannot include their Web sites in the definition of service facility for multiple common bond federal credit unions, according to a recent NCUA legal opinion.
NCUA General Counsel Robert M. Fenner wrote that the Federal Credit Union Act and agency regulations state that if such a credit union wants to add a new group to its field of membership it must be "within reasonable proximity to the location of the group."
He pointed out that to meet that requirement, a credit union must have a service facility near the group and an Internet Web site because it "lacks a physical presence" and is "not a service facility."
Fenner was responding to an inquiry from Ronald Burniske, president/CEO of Chartway Federal Credit Union in Virginia Beach, Va.
Marquis: Corporate CU Rescue Is
The Least Expensive Option
NCUA Executive Director David Marquis told approximately 3,800 participants in an agency Webcast that its plan for stabilizing corporate credit unions was the least expensive of the options and offered the most flexibility for a future dividend.
He said the proposed premium, which will be used to shore up the NCUSIF, will only "significantly impact" less than 175 credit unions.
The Feb. 12 Webcast focused on explaining the options the NCUA considered in determining how best to address the corporate stabilization program and explained their ramifications. In addition to Marquis, other participants included Acting Examination and Insurance Director John Kutchey, and Loss-Risk Analysis Officer Steve Farrar discussed the accounting and reserve issues related to stabilization. CLF President Owen Cole, Deputy Executive Director Larry Fazio and Office of Corporate Credit Union Director Scott Hunt then joined the discussion to help address some of the over 1,200 questions submitted by participants.
Marquis noted that the agency is open to alternative proposals and that they are seeking input as it is undertakes a comprehensive look at the corporate credit union system. Comments on that are due at NCUA by April 6.
All documents relating to the corporate stabilization plan are posted online at http://www.ncua.gov/CorporateStabilizationProgram.html.
Written Signature Not Required
On Stop Payment Orders, NCUA Says
Recommended For You
As long as a credit union maintains an electronic record, a signed form is not needed to document a stop payment order, according to a recent opinion by NCUA Associate General Counsel Sheila Albin.
She noted that under existing rules "entering a shared account number, PIN or both into an electronic system can create an enforceable agreement in place of a signed form."
Albin wrote that federally insured credit unions should retain a stop payment order as an electronic record in accordance with its record retention policy.
She was responding to an inquiry from Sarah Libick Smith, the bookkeeping manager of the Superior Iron Range Federal Credit Union in Negaunee, Mich.
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