WASHINGTON—Credit unions should have equal opportunity to issue letters of credit (LOCs) when it comes to the Federal Communications Commission’s (FCC) Rural Digital Opportunity Fund, according to America’s Credit Unions.
In a letter to the FCC, the trade group said credit unions “needed parity” with banks within the FCC broadband funding programs.
There is a current requirement for fund recipients to acquire LOCs from an FDIC-insured bank with a Weiss rating of B- or higher. The FCC issued a Notice of Proposed Rulemaking (NPRM) to ease various issues with its LOC requirements, providing an opportunity to make the change, ACU stated.
ACU Urges ‘Oversight’ Fix
America’s Credit Unions’ letter requests the FCC to address the “oversight” and revise its rules to enable credit unions with the same Weiss rating and insured by the NCUA to issue LOCs for any Commission program requiring one.
The letter can be found here.