Can a regulation really be your buddy? If you are a federal credit union, you bet. The regulation noted in the title, 12 C.F.R. § 701.35, prevents state lawmakers from tinkering with federal credit union operations. Subsection (c) notes that:
A Federal credit union may, consistent with this section, parts 707 and 740 of this subchapter, other federal law, and its contractual obligations, determine the types of fees or charges and other matters affecting the opening, maintaining and closing of a share, share draft or share certificate account. State laws regulating such activities are not applicable to federal credit unions. (Emphasis added.)
- A state law says your credit union must pay dividends on a mortgage escrow account. Your buddy says otherwise.
- A state law tries to limit fees on checking accounts. Your buddy says otherwise.
O.K., perhaps the buddy analogy is a bit much. But just a bit, as the Compliance Guy quotes this regulation as the answer to a compliance question at least once a week.