ALEXANDRIA, Va.—The NCUA Board approved a final rule oncharitable donation accounts on Thursday during its monthlymeeting.

The final rule limits CDA investments to 5% of a credit union'sassets. That amount was increased from 3%, which was in theproposed rule.

Also at NCUA on Thursday:
Corporate CAMEL Rule Amended
NCUA Approves Home-Based CU Rule

The approved final rule also requires credit unions to makecharitable donations of at least 51% of net total return no lessthan every five years, and again when the account terminates.

NCUA staff received 26 comments on the rule, with 18 comments insupport of the proposal. Most commenters recommended changes to therule such as increasing the net worth cap.

NCUA Board Chairman Debbie Matz supported the final rule butstressed during the meeting that its primary purpose is not to propup a credit union's income statement.

The rule takes effect immediately as opposed to the normal30-day waiting period, said Rick Mayfield, senior capital marketsspecialist at the Office of Examination and Insurance. He stressedthat the rule does not impose any regulatory burden.