NCUA: Single board member constitutes quorum

The NCUA late Friday afternoon released a message sent to employees that provides an update on the state of the NCUA. In it, the agency states it is its “long-held view that a single Board Member constitutes a quorum when there are no other Board Members. Chairman [Kyle] Hauptman and NCUA’s leadership are equipped with the required authorities to continue implementing the Administration’s priorities and fulfilling our mission of protecting the system of cooperative credit and its member-owners through effective chartering, supervision, regulation, and insurance.”

America's Credit Unions will continue to engage the agency to seek clarity on next steps during this interim period. An FAQ resource that continues to be updated is available on America’s Credit Unions’ website.

Following President Donald Trump’s termination of Board Members Todd Harper and Tanya Otsuka, the NCUA’s release says the members and their staff are no longer employed by the agency.

“The departure of two of our three NCUA Board Members has led to speculation within the credit union industry and trade press about the NCUA Board’s ability to exercise authority with the presence of only a single Board Member,” the release states. “Please be assured that the NCUA has precedent and standing delegations of authority in place to continue performing all operational and statutory requirements under the authority of a single Board Member.”

The agency points to a period during the Bush Administration where Chairman Dennis Dollar acted as a sole Board Member.  

“He held a Board meeting, voted, and took several actions, both administrative and operational. Chairman Dollar recently stated in an article in CU Today, ‘The records are in place at NCUA from 2002 that clearly establish the precedent that the Chairman can act as the Board.’” However, during that period, Dollar never approved or rescinded any regulations.

The agency indicates its work to “ensure America’s credit unions are safe and sound, address any unnecessary regulatory barriers to their prosperity, and provide excellent service to the public” continues.