NCUA issued a letter to federal credit unions (22-FCU-02) on the final rule amending the definition of “service establishment” for multi-bond credit unions. The rule went into effect on December 27, 2021.
The final rule provides that shared locations are service facilities for the purposes of multiple additions of common obligation federal credit union groups, whether or not the federal credit union has an interest in the shared branch network providing the locations.” , indicates the letter. “Shared locations, including electronic facilities providing required services such as video tellers, are also service facilities for the purposes of several federal common bond credit union additions in underserved areas, which the credit union whether or not the federal government has a stake.
“If your multiple joint-bond federal credit unions plan to add clusters or underserved areas, you should be aware that the final rule only changes the ownership requirement related to shared locations,” he adds. “All other requirements related to service facilities, group eligibility and underserved area qualification remain unchanged.”
The letter also includes information on several common bond federal credit unions adding professional or association groups; and underserved areas.
CUNA CompBlog also contains complementary analysis of the rule and links to other resources.