NATIONAL CREDIT UNION ADMINISTRATION ISSUES PROPOSED RULE: COMPENSATION IN CONNECTION WITH LOANS TO MEMBERS AND LINES OF CREDIT TO MEMBERS

WASHINGTON, Feb. 25 -- National Credit Union Administration has issued a proposed rule called: Compensation in Connection With Loans to Members and Lines of Credit to Members.

The proposed rule was published in the Federal Register on Feb. 25 by Melane Conyers-Ausbrooks, Secretary of the Board.

Summary: The NCUA Board (Board) is issuing for public comment a proposal to amend the NCUA's regulation that limits a federally insured credit union (FICU) official and employee compensation in connection with loans to members and lines of credit to members. These regulations have generated confusion and are unduly restrictive. To provide clearer and more flexible standards, the proposed rule would expressly permit incentive and bonuses to employee...