Organization and Operation of Federal Credit Unions (FCU only),
FCU Ownership of Fixed Assets.
701.36(d) Prohibited Transactions.
(d) Prohibited transactions. (1) A federal credit union must not acquire, or lease for one year or longer, premises from any of the following, unless NCUA waives this prohibition:
(i) A member of the federal credit union’s board of directors, credit committee, supervisory committee, or senior management, or an immediate family member of such individual;
(ii) A corporation in which a member of the federal credit union’s board of directors, credit committee, supervisory committee, or senior management, or an immediate family member of such individual, is an officer or director, or has a stock interest of 10 percent or more; or
(iii) A partnership, limited liability company, or other entity in which a member of the federal credit union’s board of directors, credit committee, supervisory committee, or senior management, or an immediate family member of such individual, is a general partner, or a limited partner or entity member with an interest of 10 percent or more.
(2) A federal credit union must not lease for one year or longer premises from any of its employees if the employee is directly involved in acquiring premises, unless the federal credit union’s board of directors determines the employee’s involvement is not a conflict of interest.
(3) All transactions with business associates or family members not specifically prohibited by this section must be conducted at arm’s length and in the interest of the federal credit union.
(4) To seek a waiver from any of the prohibitions in this paragraph (d), a federal credit union must submit a written request to its Regional Office and fully explain why it needs the waiver. Within 45 days of the receipt of the waiver request or all necessary documentation, whichever is later, the Regional Director will provide the federal credit union a written response, either approving or disapproving its request. The Regional Director’s decision will be based on safety and soundness considerations and a determination as to whether a conflict of interest exists.