Summary outlines new rule for FCU fixed assets
AUG. 13, 2015 -- A summary of NCUA’s new rule on fixed assets – which only applies to federal credit unions but changes a number of regulatory approaches to fixed assets by the agency – has been posted by NASCUS for reference.
The NASCUS summary notes that the final rule:
- Eliminates the 5% aggregate limit on FCU fixed-asset investment;
- Establishes a single 6-year time period from the date of acquisition of real property for an FCU to partially occupy any premises acquired for future expansion (regardless of whether the premises are improved or unimproved property), and
- Removes the requirement that an FCU applying for a waiver of the partial occupancy requirement do so within 30 months of acquisition of any property acquired for future expansion.
With the elimination of the fixed-asset threshold, the NASCUS summary points out that NCUA also deletes the definition of fixed assets, and focuses the final rule on ownership of property and the requirement for partial occupation. There is no regulatory deadline for full occupancy, just a requirement that the FCU plans to fully occupy the property within a reasonable time.
FCUs may still apply to the NCUA Regional Director for a waiver from the partial occupancy requirement.