Proposed Rules and Regulations

Regulation B-2012-01 _ Credit Union Member Business Loans

The Department of Financial Regulation (“Department”) intends to repeal its Credit Union Member Business Loans regulation, Regulation B-2012-01.  In order to be effective, a state’s member business loan regulation must be approved by the National Credit Union Administration (“NCUA”).  12 CFR §723.20.  The NCUA did not approve the Department's regulation.  Thus, Regulation B-2012-01 is unenforceable.

Vermont state chartered credit unions making member business loans will still be subject to the NCUA Member Business Loan regulation, 12 CFR Part 723, rather than the Department's Regulation B-2012-01. Pursuant to 8 V.S.A. §32402, a Vermont state chartered credit union must still obtain the Department’s prior written approval before engaging in the business of making member business loans.

Contact Person:  Sue S. Clark, 802-828-3307, sue.clark@vermont.gov

Public Hearing:  9/27/2016 at 10:00 a.m., Department of Financial Regulation, 89 Main Street, Montpelier, VT

Deadline for Comments: 10/5/2016

Full text of proposed regulation