NCUA: Public Unit and Nonmember Shares; Comments Due Jul. 29

The National Credit Union Administration (NCUA) Board issued a proposal May 31, 2019 that would amend the NCUA’s Public Unit and Nonmember Shares rule to allow federally insured credit unions to receive public unit and nonmember shares up to 50 percent of the credit union’s paid-in and unimpaired capital and surplus less any exiting public unit and nonmember shares. The agency is calling for the public to comment. Comment letters are due July 29, 2019.

The proposed rule:

  • Changes the basis for measuring the limit from total shares to paid-in and unimpaired capital and surplus less public unit and nonmember deposits. (Subtracting out existing public unit and nonmember deposits prevents a circular increase in the limit.)
  • Increases the limit from 20 percent to 50 percent.
  • Clarifies the limit is measured at time of issuance.
  • Removes the waiver provision.
  • Requires a plan only if a credit union’s public unit and nonmember deposits plus borrowings are greater than 70 percent of paid-in and unimpaired capital and surplus.

CLICK HERE to log in, review the proposal and voice your concerns through PowerComment.


Questions about writing a comment letter?  Contact Nicola Foggie at nfoggie@njcul.org .