The OFR proposes to amend Rule 69U-110.0211, F.A.C., which governs Liability and Bond Insurance, to correct a citation to a National Credit Union Administration (“NCUA”) rule; amend Rule 69U-110.031(2), F.A.C., which governs Powers of Credit Unions, ...

 

DEPARTMENT OF FINANCIAL SERVICES

FSC - Financial Institution Regulation

RULE NOS.:RULE TITLES:

69U-110.008Branches

69U-110.0211Liability and Bond Insurance

69U-110.031Powers

PURPOSE AND EFFECT: The OFR proposes to amend Rule 69U-110.0211, F.A.C., which governs Liability and Bond Insurance, to correct a citation to a National Credit Union Administration (“NCUA”) rule; amend Rule 69U-110.031(2), F.A.C., which governs Powers of Credit Unions, to repeal language relating to the NCUA Regulatory Flexibility Program as it no longer exists; and amend Rule 69U-110.008(3), F.A.C., to delete reference to Rule 69U-110.031(2)(a)2., F.A.C., which will be repealed as set forth above.

SUMMARY: The OFR proposes to amend Chapter 69U-110, F.A.C., to delete/correct references obsolete rules and federal regulations.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 655.012(2) FS.

LAW IMPLEMENTED: 657.008, 655.061, 657.031, 657.042, 657.021 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Jodi-Ann V. Livingstone, Chief Counsel, Division of Financial Institutions, [phone], [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69U-110.008 Branches.

(1) through (2) No change.

(3) Any additional investment in fixed assets related to a change in location or opening of a branch office may not exceed the statutory limits of investments in real estate and equipment without prior written approval of OFR. unless the credit union meets the criteria of subparagraph 69U-110.031(2)(a)2., F.A.C.

(4) No change.

Rulemaking Authority 655.012(2) FS. Law Implemented 657.008, 657.042 FS. History-New 6-16-78, Amended 10-13-81, Formerly 3C-30.29, Amended 7-2-87, Formerly 3C-30.029, Amended 10-8-95, Formerly 3C-110.008, Amended 3-6-07, _____.

 

69U-110.0211 Liability and Bond Insurance.

The credit union shall maintain officer and director liability insurance and blanket bond insurance in such amounts and terms as required to maintain insurance of accounts by the National Credit Union Share Insurance Fund, as provided in National Credit Union Administration Rules 741.3(c) and 741.201(a) (codified at 12 C.F.R. §§ 741.3(d) 741.3(c) and 741.201(a), respectively (2018 2006)), which are hereby incorporated by reference. The liability and bond insurance shall provide, at a minimum, coverage for errors, omissions, negligence, fraud, and dishonesty by all employees, directors, officers, supervisory or audit committee members, and credit committee members. The credit union shall also maintain applicable insurance coverage with respect to all operations and activities. 

Rulemaking Authority 655.012(2) FS. Law Implemented 657.021 FS. History-New 10-13-81, Formerly 3C-30.33, 3C-30.033, Amended 10-8-95, Formerly 3C-110.0211, Amended 3-6-07, _____.

 

69U-110.031 Powers.

(1) No change.

(2) General Powers Activities. Credit unions are authorized to engage in those general powers activities to provide financial services and benefits to their members without prior approval of the OFR, unless such approval is otherwise specifically required by law or is necessary to achieve competitive equality per Section 655.061, F.S. The following general power activity is powers activities are so authorized for competitive equality:

(a) Credit unions exempted from significant events reporting per Section 655.948(4)(a), F.S., and meeting the net worth and Capital, Asset, Management, Earnings and Liquidity (CAMEL) rating eligibility criteria for the National Credit Union Administration's Regulatory Flexibility Program, as specified in 12 C.F.R Part 742 (2006), which is hereby incorporated by reference, may:

1. Establish and maintain Federal public unit and nonmember accounts in accordance with National Credit Union Administration (NCUA) Rule 701.32 (codified at 12 C.F.R. § 701.32 (2006)), which is hereby incorporated by reference, and the exemption of NCUA Rule 742.4(a) (codified at 12 C.F.R. § 742.4(a)(2006)), which is incorporated by reference in paragraph (a), consistent with the limitations of Chapter 280, F.S.;

2. Invest in real estate and equipment for the credit union as provided in Section 657.042(5), F.S., that may exceed five percent of the capital of the credit union, without prior notice or approval of the OFR; and

3. Invest in commercial mortgage related securities as may be permitted by NCUA Rule 703.16 (codified at 12 C.F.R. § 703.16 (2006)), which is hereby incorporated by reference, and the exemption, limitations and restrictions of NCUA Rule 742.4(b) (codified at 12 C.F.R. § 742.4(b) (2006)), which is incorporated by reference in paragraph (a).

(b) Credit unions may serve as a United States Treasury Department tax and loan depository, a depository of Federal taxes, and a financial agent of the United States Government, in accordance with NCUA Rule 701.37 (codified at 12 C.F.R. §701.37 (2006)), which is hereby incorporated by reference.

(3) No change.

Rulemaking Authority 655.012(2) FS. Law Implemented 655.061, 657.031, 657.042, FS. History-New 3-6-07, Amended_____.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Jeremy W. Smith, Director, Division of Financial Institutions

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: June 13, 2018

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: April 5, 2018