Oregon DCBS to Hold Unimproved Property Rulemaking Hearing

The Oregon Department of Consumer and Business Services (DCBS) has scheduled a rulemaking hearing for Monday, July 1, at 8:30 a.m., on the proposed rule that would allow Oregon state-chartered credit unions to hold unimproved property for up to six years, instead of three years. The proposed rule would permanently adopt a temporary rule that went into effect in February.

The Hearing will be in the Labor & Industries Building, 350 Winter St. NE, Salem—in Room 260. The rule eliminates a specific discrepancy between state and federal regulations, and was one of many recommended by the Northwest Credit Union Association’s (NWCUA) Model Credit Union Act (MCUA) Subcommittee.

In early May the DCBS, convened an advisory group made up of state chartered credit unions to discuss the permanent adoption of this rule.  Nearly one third of Oregon’s state chartered credit unions sent a representative to participate. Participants encouraged the DCBS to consider adding the NCUA’s proposed definition of unimproved real property, to provide clarity and avoid ambiguity.

The NCUA proposal describes unimproved real property as:

  1. Raw land or land without development, significant buildings, structures, or site preparation or land that has never had improvements;
  2. Land that was improved at one time but has functionally reverted to its unimproved state; or
  3. Land that has been improved, but the improvements serve no purpose for the federally insured state credit union’s planned use of the property and are of little value relative to the project.

The hearing is open to the public with interested parties invited to provide testimony. DCBS is expected to adopt the rule with an effective date in late July.

 

The NWCUA Regulatory Advocacy team works with state and federal regulators to help reduce the regulatory burden on credit unions and protect the credit union movement. The Association encourages members to participate in the regulatory process. If you have any questions about these or any regulatory issues, please contact Director of Regulatory Advocacy John Trull at jtrull@nwcua.org, or at 503.350.2209.

Posted in Advocacy News.