The NCUA board held its first meeting where all three board members were present. Richard Metsger, just confirmed within the last month, attended his first meeting as a board member. Among the actions taken on Thursday, the board finalized an amendment to clarify and simplify the fixed assets ownership rule.
The rule does not make substantive changes to the regulation or impose new requirements for fixed assets by federal credit unions.
“The latest product of my Regulatory Modernization Initiative is the final rule on fixed assets, which Board Member (Mike) Fryzel suggested we streamline ,” said NCUA Chairman Debbie Matz. “Through the changes approved today, credit unions should find the regulation easier to follow.”
The approved NCUA fixed assets rule allows federal credit unions to purchase, hold and dispose of property necessary or incidental to their operations. These fixed assets include office buildings, branch facilities, furniture, computer hardware and software, ATMs, and parking lots.
Those that receive a waiver from the five-percent fixed assets limit will have the ability to make multiple purchases of fixed assets within a one percent buffer above their approved waiver limit. This change is intended to eliminate the need for a federal credit union to make repeated waiver requests for minor acquisitions.
The final fixed assets rule, available online, will be effective 60 days from the date of publication in the Federal Reserve. Visit the NCUA's website to read a full report from the board meeting.