ALEXANDRIA, Va. —The NCUA Board on Thursday approved a proposed rule that would eliminate the 5% cap existing on fixed assets.
"An FCU that chooses to exceed the 5% aggregate limit may do so without prior NCUA approval, provided it implements a fixed assets management (FAM) program that demonstrates appropriate pre-acquisition analysis to ensure the FCU can afford any impact on earnings and net worth levels," said the proposed rule approved at the board's monthly meeting.
"An FCU's FAM program is subject to supervisory scrutiny and must provide for close ongoing oversight of fixed assets levels and their effect on the financial performance of the FCU," the text of the rule also said.
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