On Compliance: Getting official opinions about the rules

first_imgWith all the complex rules credit unions must follow, it is not surprising that CU leaders sometimes seek a legal opinion from the agency that wrote a particular regulation. What is required in a specific circumstance or whether a planned service fits within legal limits are two common subjects of requests for a legal opinion.Sometimes the agency responds with clarification. For example, last year the National Credit Union Administration’s Office of General Counsel, which writes NCUA opinions, addressed the permissibility of credit union indirect lending participations, with certain caveats. This was done in response to a request from the Georgia Credit Union Affiliates. The business of credit unions is complicated, and such opinions can be useful in applying a legal provision to a credit union’s operations or products.An agency legal opinion, which also may be termed an “advisory opinion” or “legal interpretation” among other things, represents the agency’s views regarding the application of the law or rules, and can be relied on by the party making the request as an authoritative determination. An agency legal opinion also can provide guidance for other credit unions regulated by the agency that have the same or closely related issues. An opinion also can be very useful, for example, in settling a dispute with an examiner.An agency legal opinion does not create new authority, but rather must be based on and be consistent with current law, rules or other agency interpretations. Otherwise, the agency would likely need to seek comments from stakeholders and the public regarding the impact of the interpretation. continue reading » 4SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

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