Academic journal article ABA Banking Journal

An Architect Objects to Contractor's Execution of the Blueprint

Academic journal article ABA Banking Journal

An Architect Objects to Contractor's Execution of the Blueprint

Article excerpt

Congressman John LaFalce had problems with the proposed revisions to the NCUA's proposed chartering and field of membership policy--four problems, to be specific. So he told NCUA so.

"There are at least four key provisions of the proposed regulations where NCUA staff has either misunderstood the purpose or intent of the legislative language, or has deliberately sought to provide the legislative language with an interpretation contradictory to what Congress intended," LaFalce wrote.

It's not uncommon for members of Congress to weigh in during a regulatory comment period, but LaFalce's participation was extraordinary. He is the ranking minority member of the House Banking and Financial Services Committee and played a key role in the development of H.R. 1151, which set the changes at NCUA in motion. LaFalce (D.-N.Y.) told the agency he had problems with their proposed regulation in four areas:

1. Proximity test. The definition used for "reasonable proximity" was so broad that "rather than limiting the number of potential groups in a defined area that can be incorporated within a credit union's field of membership, would permit almost unlimited membership growth over broad areas." This arose, he wrote, from NCUA's very liberal definition of what constitutes a branch.

2. The "3,000 member limit." LaFalce pointed out that the act passed by Congress establishes 3,000 as the ceiling, in most circumstances, for the size of a group of people eligible to be included in a credit union's field of membership. In its proposed rule, he wrote, "NCUA staff misconstrues this 3,000-member limit on the size of groups eligible to be included within an existing credit union to create an almost opposite standard of requiring a minimum of 3,000 members to be eligible to form a separate credit union. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.