The National Credit Union Administration (NCUA) is proposing a change to its rule governing credit union applications for loans and assistance grants. The change is intended to credit greater transparency, clarity and flexibility.

The NCUA is asking for comments on their proposed rules changes to be submitted by July 25, 2011.

Check out the background info on the proposed changes:

The CDRLF was created by Congress in 1979 with an initial appropriation of $6 million and has been administered exclusively by NCUA since 1986. Through subsequent appropriations and earnings on Fund assets, the Fund has grown to over $19.7 million as of the end of the first quarter of 2011. The Fund serves as a source of financial support, in the form of both loans and technical assistance grants, for credit unions serving predominantly low-income members. It also serves as a source of funding to help low-income credit unions respond to emergencies arising in their communities. The NCUA Board has delegated to the Office of Small Credit Union Initiatives authority to make the determination of how to allocate the finite resources of the Fund among qualifying credit unions. Awards provided through the CDRLF Program have strengthened credit unions by enabling them to increase their capacity to support the communities in which they operate. This increased capacity has allowed credit unions to provide basic financial services to low-income residents of these communities, resulting in more opportunities for residents of the credit unions' communities to improve their financial circumstances.
The technical assistance grant portion of the CDRLF provides funds to low-income credit unions so that they may extend services to their
members and improve their operations. The source of awards includes appropriated funds, current year earnings, and a portion of prior
years' retained earnings.

Through the loan portion of the CDRLF, low-income credit unions may receive funds to support a variety of financial and related services
designed to meet the particular needs of members and the low-income communities served. In years where Congress has not appropriated funds
for loans, funding has come from scheduled loan repayments of prior loans.
Part 705 has been largely unchanged, in substantive terms, since 1993. In the years following, significant enhancements, including changes in technology, have altered the way in which NCUA retrieves and uses data from credit unions. The proposed changes in this rule, which
comprehensively revise part 705, reflect these changes and are designed to reduce the burden on credit unions. The proposed changes remove some of the detail in the current rule dealing with administrative aspects of the program to provide the agency with greater flexibility to make changes and variations to suit specific circumstances. Other changes add detail to the rule, for example, regarding how NCUA evaluates
applications, to provide greater transparency and better knowledge and information to prospective applicants. The changes also add a new
section addressing reporting to and monitoring by NCUA, which is designed to help the agency assure that an award from the Fund is used
in the manner and for the purposes represented by the credit unions receiving loans or grants. On balance, the rule is streamlined and the
burden imposed on credit unions seeking an award from the Fund is reduced.

You may submit comments by any one of the following methods:
* Federal eRulemaking Portal:
Follow the instructions for submitting comments.
* NCUA Web Site:
RegulationsOpinionsLaws/proposed_regs/proposed_regs.html. Follow the instructions for submitting comments.
* Email: Address to [email protected] Include ``[Your name] Comments on Proposed Rule 705, CDRLF Amendments'' in the e-mail
subject line.
* Fax: (703) 518-6319. Use the subject line described above for e-mail.
* Mail: Address to Mary Rupp, Secretary of the Board, National Credit Union Administration, 1775 Duke Street, Alexandria,
Virginia 22314-3428.
* Hand Delivery/Courier: Same as mail address.

For more details visit:!documentDetail;D=NCUA-2011-0033-0001