BANKING

DEPARTMENT OF BANKING AND INSURANCE

DIVISION OF BANKING

Credit Unions

Readoption with Amendments: N.J.A.C. 3:21

Proposed: February 19, 2002 at 34 N.J.R. 816(a)

Filed: June 10, 2002 as R.2002 d.209, without change.

Authority: N.J.S.A. 17:1-8.1, 17:1-15(e) and 17:13-79 et seq.

Effective Date: June 10, 2002, Readoption

Expiration Date: June 10, 2007

Summary of Public Comment and Agency Response:

The Department of Banking and Insurance ("Department") received one written comment from the New Jersey League of Community Bankers.

COMMENT: The commenter stated the Residential Lending/Affordable Housing Committee of the New Jersey League of Community Bankers had no reservations with the amendment to N.J.A.C. 3:21-4.1 governing credit union mergers and the readoption.

RESPONSE: The Department notes and appreciates the comments indicating no

reservations with the amendment and readoption.

Credit unions may, in the future, become subject to Federal standards pursuant to a proper exercise of parity in accordance with the readopted rules. While the Federal standards applicable in such cases cannot be identified at this time, there will be no applicable State standards that may exceed them because parity with Federal institutions entails application of the pertinent Federal standards. Low income credit unions may participate in Federal programs. If they do participate, they would be subject to the Federal standards. No state standard would exceed the Federal standards in such a case.

The branching provisions of the rules readopted with amendments are not subject to any Federal standards or requirements. The adopted new rules relating to mergers of credit unions do not contain standards or requirements that exceed Federal standards. These adopted new rules apply certain Federal standards, set forth at 12 U.S.C. §§1715 et seq., to New Jersey credit unions that merge.

Full text of the readoption can be found in the New Jersey Administrative Code at N.J.A.C. 3:21.

Full text of the adopted amendments follows:

________________ ______________________

Date Holly C. Bakke

Commissioner

Fos02-01/INOREGS