Summary gets to meat of appeals procedures proposal

Condensing 14, three-column Federal Register pages into essentially four typewritten pages, the NASCUS summary of NCUA’s recently proposed rule on its appeal procedures gets down to the meat of the proposal while making clear that the proposal does not cover supervisory actions taken by state regulators – only those taken by federal supervisors.

But the proposal does “homogenize” appeals processes covered in eight separate rules, in cases in which a decision rendered by a regional director or other program office director is subject to appeal to the Board. These kinds of decisions are regarded as “informal” decisions by NCUA. They include:

  • Part 709 Claims of a Creditor of an Insolvent FICU under an NCUA Alternative Resolution Dispute Process;
  • Payment of Claims Regarding Federally Insured Shares or Deposits;
  • Chartering and Field of Membership (which apply solely to federal credit unions);
  • Community Development Loans;
  • Golden Parachutes;
  • Investment Authority;
  • Change of Officials for Troubled or Newly Chartered Credit Unions;
  • Conversions and Mergers.

“Formal” agency determinations are not covered under the proposal, the NASCUS summary points out. Those formal determinations include Administrative Procedure Act (APA) adjudications, formal NCUA enforcement actions, prompt corrective action (PCA) orders, matters under jurisdiction of NCUA’s Supervisory Review Committee, creditor claims in liquidation, delegated final agency actions, others (such as FOIA requests).

The summary also notes that the proposal includes a new, recommended appeals rule, which establishes six new areas under section 746 of NCUA rules, covering such items as “request for consideration,” “appeal to the board,” and “procedures for an oral hearing.”

Comments on the proposal are due Aug. 7.


Summary: NCUA Appeal Procedures