The NCUA Board Discusses Public Unit and Nonmember Shares, FOM

The Board approved a final rule to allow credit unions to accept larger amounts of public unit and nonmember shares.

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A credit union will be able to accept public unit and nonmember shares in an amount up to 50-percent of the credit union’s net amount paid-in and unimpaired capital and surplus, less any public unit and nonmember shares, or $3 million, whichever is greater. Current regulations limit the total amount of public unit and nonmember shares to 20-percent of the credit union’s total shares, or $3 million, whichever is greater. The new limit is expected to better enable federal credit unions, particularly those with a low-income designation, to achieve growth and safely expand access to financial services within their communities.

Field of Membership
The NCUA also discussed a proposed final rule to amend the agency’s field of membership regulations. The proposed rule would allow credit unions applying for a federal charter/charter change to designate a combined statistical area, or an individual contiguous portion of such an area, as a well-defined local community, provided its population is 2.5 million or less.

The proposal also clarifies existing requirements in the agency’s FOM regulations and adds an explicit provision to address concerns about potential discrimination in the FOM selection process. The proposed rule also provides further explanation and support for the agency’s decision to eliminate the FOM core-based statistical area requirement in its 2016 final rule. These changes would implement an August 2019 opinion issued by the District of Columbia Circuit Court of Appeals.