NCUA has issued a final rule for FCUs that makes some minor revisions to the Fixed Assets Rule and clarifies and streamlines the waiver process. The final rule takes effect 11/18/2013.Part 701.36 of the NCUA Rules and Regulations limits the amount of investment an FCU can make in fixed assets (premises, furniture, fixtures, branch offices, service centers, parking lots, equipment, real estate where an FCU conducts or will conduct business, computer hardware and software, ATMs, etc.) to an amount not in excess of 5% of the FCU’s shares and retained earnings.
In general, the changes are to the format and the language used in the rule.  The plain language format provides additional clarity to provisions dealing with unimproved property, the waiver process and to what it means to partially occupy property.
The only new provision states that FCUs that obtain a waiver to the 5% limit will have the ability to make multiple purchases of fixed assets within a 1% buffer above their approved waiver limit without having to  make repeated waiver requests for minor acquisitions.