ALEXANDRIA, Va. — The credit union community and other interested parties are divided on how federal credit union bylaws should be enforced following an NCUA proposal to re-incorporate them by reference into regulation.

While NAFCU shares the agency's concerns over member access to the courts, NCUA should not re-incorporate its bylaws into regulation at this time, the group recommended. According to NAFCU's comment letter, signed by Senior Vice President of Government Affairs Dan Berger, "NAFCU does not agree that federal regulation and oversight of bylaws disputes is appropriate at this time. NAFCU member credit unions have expressed concern that the involvement of the NCUA could result in various unintended consequences." For example, a small group of unhappy members of other antagonists could create undue hardship for the credit union.

For very different reasons, Marvin Umholtz, president/CEO of Umholtz Strategic Planning & Consulting Services, opposed the adoption of the proposal in a final rule, as "any supporter of economic liberty and limited government should"; Umholtz helps credit unions convert to mutual savings banks, which is one of the issues at the heart of the proposal. In recent cases in Washington State and Michigan, members seeking to uphold the bylaws after the credit union declined special meetings have been costly in various senses of the word or inefficient.