Department of Financial Institutions

Rules Regarding Credit Unions

and Amending Chapter 208-444 WAC

On November 19, 1997, the Department of Financial Institutions filed a CR-103 on new rules being added to chapter 208-444 WAC. WSR 97-23-071. The new rules provided that they would take effect when the Board of the National Credit Union Administration (NCUA) determined that they were substantially equivalent to their NCUA counterpart rules, WAC 208-444-050.

On March 19, 1998, the NCUA board made such a determination, as reflected by the following copy of the letter from the secretary of the NCUA board. Consequently, the new rules were effective as of March 19, 1998.

March 26, 1998

Honorable John L. Bley

Director

Department of Financial Institutions

State of Washington

P.O. Box 41200

Olympia, WA 98504-1200

RE: Request for NCUA Board Determination that Washington Rule is "Substantially Equivalent" Under 741.203(a)

Dear Mr. Bley:

This is to advise you that on March 19, 1998, the National Credit Union Administration Board approved your request for a determination that the State of Washington's rule WAC 208-444 is "substantially equivalent" under 12 C.F.R. § 741.203(a). As a result of the Board's determination, federally insured credit unions chartered by the State of Washington are exempt from the requirements of 12 C.F.R. §§ 701.21 (c)(8) and 701.21 (d)(5).

This exemption is subject to withdrawal if the NCUA Board determines that the State's implementation of rule WAC 208-444 presents undue safety and soundness concerns or an undue risk to the National Credit Union Share Insurance Fund.

Additionally, the State of Washington must reapply for a substantially equivalent determination anytime either § 701.21 (c)(8) or § 701.21 (d)(5) is amended.

If you have questions regarding this matter, please contact Jon Canerday of the Office of General Counsel at 703-518-6548.

GC/JJC:jc

SSIC 3330

J. Parker Cann

Director

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