Recently, the NCUA announced a second round of proposed regulatory changes under its “Deregulation Project,” an ongoing effort to reduce regulatory burden and eliminate outdated or duplicative requirements (previously covered by InfoBytes here). The agency requested public comment on four proposals published in the Federal Register:

1. Suretyship and Guaranty Requirements: The NCUA proposed removing segregated deposit and collateral requirements when federally insured credit unions serve as a surety or guarantor to allow institutions greater flexibility in product design (12 CFR 701.20(c)(3), 701.20(d)).
2. Limits on Loans to Other Credit Unions: The agency proposed eliminating the regulatory requirement for board approval and written policies regarding loans to other credit unions, but noted that related statutory requirements would remain in place (12 CFR 701.25(b)).
3. Catastrophic Act Reporting: The NCUA proposed extending the reporting deadline for catastrophic acts from five business days to 15 calendar days and simplifying recordkeeping requirements to enable credit unions to focus on recovery efforts (12 CFR 748.1(b)).
4. Accuracy of Advertising and Notice of Insured Status: The agency proposed rescinding what it deems to be “highly prescriptive” requirements for official advertising statements in order to provide credit unions more flexibility while retaining requirements for accurate advertising and display of the official sign (12 CFR 740.0, 740.5).

Comments on the four proposals must be submitted by February 27.