Banking



The National Credit Union Administration issued a proposed rule that would standardize and clarify the procedures for members to inspect federal credit union books, records and minutes.

The rule would allow a group representing approximately 1% of the membership to petition to inspect and copy the nonconfidential portions of the credit union’s books, records and minutes. The rule would limit the material open for inspection to minutes and “accounting records.” The credit union may charge petitioners reasonable costs of searching for and duplicating the materials.

The request must be made for a proper purpose such as to protect members’ financial interests or to ascertain possible mismanagement. Members would not have a right to inspect nonpublic personal information; certain information about credit union employees or officials; or information that is prohibited from disclosure by other federal laws.

The proposed rule, Member Inspection of Credit Union Books, Records, and Minutes, is available at www.ncua.gov/RegulationsOpinionsLaws/proposed_regs/P-701-3.pdf.

The National Credit Union Administration issued a proposal that would require federally insured credit unions to disclose material increases in senior management compensation in connection with a merger. The rule would require disclosure of the terms of the compensation agreement to members voting on whether to approve the merger. The rule defines a “material increase” in compensation as an increase of 15% or $10,000, whichever is greater.

The proposed rule, Disclosure of Merger Related Compensation Arrangements, is available at www.ncua.gov/RegulationsOpinionsLaws/proposed_regs/P-708b.pdf.

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