October 1, 1997
Patricia S. Kimmel, President/CEO
Fort Belvoir Federal Credit Union
14040 Central Loop
Woodbridge, Virginia 22193
Dear Ms. Kimmel:
You have asked whether your credit union may
open a Treasury General Account for the Fort Belvoir Commissary.
FCUs are permitted to act as fiscal agents and depositories for
the United States. 12 U.S.C. ยง1767(a). To engage in these
activities, FCUs must follow applicable Treasury rules. In addition,
FCUs must follow Section 701.37 of NCUA's Regulations. Essentially,
this rule permits FCUs to serve as a Treasury tax and loan depository,
a depository of public money, and a financial agent of the United
States government. Section 701.37(a)(4) defines a Treasury General
Account as "an account, established under United States Treasury
Department regulations, in which a zero balance may be maintained
and from which the entire balance may be withdrawn by the depositor
immediately under all circumstances except closure of the credit
union." Funds held in such accounts must be exempt from
the 60-day notice requirement of Article III, Section 5(a) of
the FCU Bylaws. We have no legal objection to your credit union
opening a Treasury General Account for the Fort Belvoir Commissary
as long as all the relevant rules are followed.
You have also asked if your credit union can
open a branch office in the Fort Belvoir Commissary. Your field
of membership includes "Members of the U.S. Armed Forces,
active or retired, or their dependents or dependent survivors,
who are eligible by laws and regulations to receive, and are receiving
benefits or services from Fort Belvoir." We have no legal
objection to your credit union opening a branch office at the
Fort Belvoir Commissary assuming all Defense Department Regulations
are met and there are no safety and soundness concerns.
Sincerely,
Sheila A. Allbin
Associate General Counsel
GC/MJMcK:bhs
SSIC 3501
97-0949