Wednesday, July 11, 2018

Public Hearing for CUs Using Narrative Approach Seeking WDLC with Population Over 2.5 Million

The National Credit Union Administration (NCUA) Board will allow federal credit unions to submit a narrative to establish the existence of a well-defined local community (WDLC), if the proposed community extends beyond a single political jurisdiction. If a federal credit union is using a narrative approach for a proposed community with a population in excess of 2.5 million people, NCUA will hold a public hearing.

The Board believes that it is appropriate to require a public hearing, because it would give an applicant, community groups, business, and competitors with the opportunity to present their views.

Here is what you need to know about the public hearing process.
  • Upon receiving such an application, information stating the location, time, procedures and other relevant information about the hearing will be published in the Federal Register at least 30 days prior to the hearing date.
  • The hearing will either be held at the NCUA's Headquarters in Alexandria, VA or a location near the applicant's anticipated community.
  • The public hearing will last no more than four hours with interested parties being permitted to make presentations of no more than 30 minutes each.
  • The applicant along with no more than seven other interested parties may request to make presentations.
  • The first six entities contacting the NCUA in writing will be permitted to make presentations.
  • A seventh entity may be permitted to make a presentation, but only at the discretion of NCUA staff.
In addition to the presentations, interested parties may submit written statements at least twenty business days prior to the hearing.

NCUA has identified 13 criteria that the credit union applicant should address in its narrative to show that the proposed community meets the requirements of common interaction and interest among residents. The NCUA Board believes the more a proposed area satisfies the 13 criteria, the stronger the applicant's case.

However, applicants are not limited to the 13 criteria. Applicants may introduce other evidence that shows the proposed area is a WDLC.

The final rule becomes effective on September 1, 2018.

Read the Federal Register Notice.

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