Members of a federally insured credit union seeking a voluntary merger will be better-informed about that merger and have more time to consider their votes under a final rule (Parts 701, 708a, and 708b) approved by the NCUA Board in a recent meeting.
The final rule will apply to all federally insured credit unions and will:
- Increase the minimum required time for notice to members before a merger vote to 45 days;
- Require the merging credit unions to disclose merger-related compensation increases above $10,000 or 15 percent of compensation, whichever is greater, for certain employees and officials of the merging credit union;
- Clarify the contents and format of the members’ notice to provide better information; and,
- Provide a method to communicate to the NCUA regarding the proposed merger.
The final rule, available online here, will become effective Oct. 1, 2018.