heat, and light), fixtures, and maintenance shall be furnished at no cost to a credit union occupying free space in a Government building. The credit union shall pay for other services, such as telephone lines, long-distance toll calls, and space alterations. Should a credit union fail to meet the 95 percent membership criterion, any logistic support furnished shall be on a reimbursable basis. (ii) When available from local stock, typewriters, adding machines, other office equipment, and office furniture may be leased to an on-base credit union at nominal cost; i.e., $1.00 per year, under authority of 10 U.S.C. 2667. (iii) Central locator service shall be provided under conditions identified in enclosure 3 of DoD Directive 1000.11 when requested by Defense credit unions. This service shall be provided at no cost, in accordance with DoD Instruction 7230.76 (32 CFR part 288). (iv) DoD Components shall provide debt processing assistance to Defense credit unions, in accordance with DoD Directive 1344.97 (32 CFR part 43a), as limited by the Privacy Act Guidelines set forth in enclosure 3 of DoD Directive 1000.11. Unless otherwise prohibited, Defense credit unions seeking restitution for delinquent loans or dishonored checks may request the assistance of local commanders, credit union liaison officers, or other officials. (v) DoD Components shall prescribe clearance procedures for departing military personnel that provide the onbase credit union with adequate notice of such membership changes. Clearance involves reporting a change of address, reaffirming allotments or notes payable, and arranging for counseling, if appropriate. Clearance shall not be denied to facilitate the collection of debts or the resolution of disputes between the credit union and its departing members. Where administratively feasible, similar clearance procedures shall be used for departing DoD civilian employees. (4) Additional support in overseas areas. In addition to the logistic support identified in paragraphs (h)(1) through (3) of this section, the following may be 6 See footnote 1 to §231a.1. 7 See footnote 1 to §231a.1. made available to Defense credit unions operating at overseas installations: (i) Military postal service may be authorized, in accordance with DoD Directive 4525.68. For full service credit unions, as defined in DoD Directive 1000.11, use of the free intra-theater delivery system (IDS) is authorized for all routine mail sent and received between Army Post Offices (APOs) and Fleet Post Offices (FPOs) within a theater. To qualify, the credit union must certify to the appropriate postal official that all its full-time overseas offices provide "full service" or equivalence to full service, i.e., the availability of cash through ATMs at nonfull service locations. (ii) Access to DoD voice and data telecommunication systems as granted by the Defense Communication Agency on a case-by-case reimbursable basis. (iii) Travel of U.S.-based credit union officials to their overseas offices shall be as set forth in DoD Directive 4000.69 Invitational travel orders that authorize travel at no expense to the U.S. Government may be issued by the local commander for official onsite visits. (iv) For full service credit unions, as defined in DoD Directive 1000.11, logistical support shall include steel bars, grillwork, security doors, a vault or safe (or both), burglar alarm system, other security features normally used by credit unions, construction of teller cages, and other necessary modifications and alterations to existing buildings to facilitate cash operations, subject to the procedures and fiscal limits in DoD Directive 4270.24 10. (i) Construction of credit union buildings. (1) Credit union proposals to finance construction of buildings on domestic DoD installations at their own expense must be processed in accordance with DoD Instruction 7700.1811. In support of each construction proposal, the credit union shall provide written assurance that: (i) Management understands its potential loss of the building in the event See footnote 1 to §231a.1. 9 See footnote 1 to §231a.1. 10 10See footnote 1 to §231a.1. 11 See footnote 1 to §231a.1. of installation closure or other delimiting condition specified in paragraph (j)(1)(i) of this section; (ii) The proposed building shall serve only the needs of the credit union and shall not be used to house other activities;. (iii) Management accepts financial responsibility and shall reimburse the U.S. Government for all costs of construction and any maintenance, utilities, and other services furnished. Rates shall be established in accordance with DoD Instruction 7230.7 and confirmed by a written agreement between the DoD installation and the credit union. (2) Credit unions that finance building construction at their own expense do not have to meet the space criteria contained in MIL-HDBK-1190. (j) Leases of Government land. (1) Except as provided in paragraphs (h)(2) (iv) and (v) of this section, land required for approved building construction at credit union expense shall be made available by real estate lease at minimal charge; e.g., $1.00 per year. (i) Leases shall include the provision that, in the event of national emergency or any other event cited in paragraph (1)(3) of this section, and at the option of the Government, structures and other improvements erected thereon shall be conveyed to the Government without reimbursement or removed and the land restored to its original condition. (ii) Once determined, the rental charge under any lease granted at fair market rental is applicable for the term of the lease. However, an extension of any such existing lease may provide for nominal rental, e.g., $1.00 for the term of the lease extension. (2) When a credit union participates in the construction of a complex, such as an installation shopping mall, it shall be provided a lease at nominal rental covering only underlying land for the specific space to be occupied by the credit union. (3) If determined, in accordance with 10 U.S.C. 2667, to be in the Government's interest, an existing lease of land may be extended before to expiration of its term. Passage of title to facilities shall be deferred until all extensions have expired. Such extensions shall be for periods not to exceed 5 years. The credit union shall continue to maintain the premises and pay for utilities and services furnished in accordance with DoD Instruction 7230.7. (4) When, under the terms of a lease or extension, title to improvements passes to the Government, the credit union shall be given first choice to continue occupying those improvements under a facility lease. (i) The lease shall require the credit union to maintain the premises and pay for utilities and services furnished in accordance with DoD Instruction 7230.7. (ii) In addition, the lease for a credit union not qualifying under the 95 percent criterion cited in paragraph (h)(1) of this section, shall require that the credit union pay fair market rental for land underlying the improvements. (k) Automated teller machine (ATM) service. (1) ATMs may be used to augment service provided by an on-base credit union. (2) An on-base credit union that proposes to augment its service by installing one or more ATMs shall: (i) Coordinate the ATM proposal through the installation commander under provisions of applicable DoD Component regulations. (ii) Provide a statement that the cost of ATM installation and maintenance shall be borne by the credit union alone or in conjunction with other financial institutions. (iii) Provide for access through debit and credit cards. (3) Before service begins, regulatory agency approval, as necessary, must be obtained, and leases must be negotiated in accordance with this part. (i) No lease is needed to site an ATM within an existing credit union office. (ii) When a credit union requests up to 100 square feet of additional floor space in an existing structure and the credit union agrees to bear all expenses for modifying the structure, a lease providing for nominal rental, i.e., $1.00 for the term of the lease, shall be locally negotiated and approved. This lease provision also shall be offered if a credit union requests up to 250 square feet of land to construct, at its expense, a kiosk or other structure to house an ATM. In either case, the charge for any maintenance, utilities, and services shall be consistent with that applied to the on-base credit union office. (iii) Leases pertaining to other situations shall be negotiated in accordance with paragraphs (h)(2) and (j) of this section. (1) Termination of credit union service(1) Termination of operations by the credit union. An on-base credit union planning to terminate its operations should notify the installation commander at least 90 days before the closing date. This notification should precede public announcement of the planned closure. When appropriate, the commander shall attempt to negotiate an agreement permitting the credit union to continue operations until the installation has made other arrangements. Immediately upon notification of a closing, the commander shall advise the DoD Component headquarters concerned. If it is determined that continuation of credit union services is justified, action to establish another credit union shall comply with paragraph (c) or (d) of this section. (2) Termination for cause. Installation commanders should ensure that onbase credit unions are providing services in the best interest of DoD personnel. If, after discussion with credit union officials, the installation commander determines that the operating policies of the credit union are inconsistent with this part, a recommendation for termination of logistic support and space arrangements may be made through DoD Component channels. A credit union shall be removed from the installation only with approval by the DoD Component headquarters, after coordination with the DC(MS) and the appropriate regulatory agency. (3) Termination in interest of national defense. At the option of the Government, leases may be terminated in the event of national emergency or as a result of installation inactivation, closing, or other disposal action. APPENDIX A TO PART 231a-OPERATIONS A. Staffing 1. Full services shall be provided by onbase credit unions that are staffed by: a. A loan officer authorized to act for the credit committee; b. An individual authorized to sign checks; and c. A qualified financial counselor available to serve members during operating hours. 2. Exceptions to subsection A.1., above, may be approved by the DoD Component concerned in the case of newly organized credit unions. 3. When an on-base credit union can sup port only minimum staffing, one of the other positions required in subsection A.1., above. may be subsumed under the counselor duties. 4. Remote service locations at the same installation may be staffed with one person alone, provided that a direct courier or message service links them to the credit union's on-base main office. 5. All staffing shall fully comply with the spirit and intent of DoD equal employment opportunity policies and programs, in ac cordance with DoD Directive 1440.1. 6. Neither active duty military personnel nor DoD civilian employees may be detailed to duty or employment with an on-base credit union. However, off-duty DoD personnel may be employed by a credit union if ap proved by the installation commander following a determination that such employ ment will not interfere with the full performance of the individual's official duties. B. Counseling Members of Defense credit unions shall have access to free counseling service. Members (particularly youthful or inexperienced personnel and young married families) shall receive help in budgeting and solving financial problems. Military members in junior enlisted grades who apply for loans shall receive special attention. C. Lending 1. In accordance with accepted credit union practice, lending policies are expected to be as liberal as possible while remaining consistent with the best interests of the overall credit union membership. Credit unions must strive to provide the best possible service to all members. 2. Defense credit unions evidencing a policy of discrimination in their loan services. as defined in DoD Directive 1000.11, are in violation of this Instruction. In resolving complaints of discrimination, the installation commander shall follow procedures specified in paragraph E.7.a. of this DoD In struction 1000.10. 3. Defense credit unions shall conform to the Standards of Fairness principles set forth in DoD Directive 1344.9 before executing loan or credit agreements. Should an on-base credit union branch refer a prospective borrower to an off-base office of the same credit union, it shall advise the latter office that the Department of Defense requires compliance with the Standards of Fairness. D. Hours of Operation On-base credit unions may conduct operations during normal duty hours provided they do not disrupt the performance of official duties. Credit unions should set operating hours that meet the needs of all concerned. ATMs may be used to provide expanded service and operating hours. E. Share Insurance Credit unions serving on DoD installations must maintain adequate share insurance. Any share insurance that is at least equal to that required by the NCUA for Federal credit unions may be obtained through the NCUA, a State-sponsored insurance program, or a private insurance plan to satisfy this requirement. A credit union not maintaining share insurance shall be suspended from onbase operations. F. Allotments of Pay DoD personnel may use their allotment of pay privileges as authorized by DoD Directives 7330.1 and 1418.4 to establish sound credit and savings practices through Defense credit unions. 1. The credit union shall credit member accounts not later than the value date of the allotment check or electronic funds transfer. 2. Under no circumstances shall the initiation of an allotment of pay become a prerequisite for loan approval or disbursement to the credit union member. Allotments voluntarily consigned to a credit union shall continue at the option of the member. G. Advertising 1. Advertising of on-base credit union services shall be in accordance with policies set forth in DoD Directive 1344.7. 2. Advertising in official Armed Forces newspapers and periodicals (DoD Instruction 5120.4 and DoD Directive 5120.43) is prohibited, with the exception of inserts in the "Stars and Stripes" overseas. 3. DoD Instruction 5120.20 prevents use of the Armed Forces Radio and Television Service to promote a specific credit union. 4. An on-base credit union may use the unofficial section of that installation's daily bulletins, provided space is available, to inform DoD personnel of financial services and announce membership meetings, seminars, consumer information programs, and other matters of broad general interest. Announcement of free financial counseling services is encouraged. Such media may not be used for competitive or comparative advertising of, for example, specific interest rates on savings or loans. 5. An on-base Defense credit union may use that installation's information bulletin boards for announcements of membership meetings and promotional materials generally complementing the installation's financial counseling and thrift promotion programs. An on-base credit union may, with moderation, use that installation's message center services to distribute announcements for display on informational bulletin boards, provided this does not overburden the distribution system. 6. Installations, to include military exchange outlets or concessionaires, shall not permit the promotion of competing credit union relationships or the distribution of competitive literature from other credit unions at locations served by on-base credit unions. This does not prevent: a. A credit union from using mail, telecommunications, or commercial advertising to serve its field of membership in another credit union's area, or b. Exchange Services from distributing literature on affinity credit cards centrally acquired through competitive solicitation. H. Overseas Operations 1. An overseas credit union branch or facility shall be limited to on-base operations. It shall confine its field of membership to individuals or organizations eligible by law or regulation to receive services and benefits from the installation, not prevented from receiving these services by intergovernmental agreement or host-country law. 2. Credit unions shall serve overseas only within a DoD-designated geographic franchise. However, any credit union may continue to serve its members stationed overseas by mail or telecommunications. 3. Any proposal for a new service must be coordinated with the appropriate Unified Commander and U.S. Chief of Diplomatic Mission or U.S. Embassy to ensure that it does not conflict with status of forces agreements or host-country law. 4. Cash Operations. a. Credit unions that operate full service branches, as defined in DoD Directive 1000.11, shall have U.S. currency and coin available for member transactions. In areas served by currency custody accounts, transactional U.S. currency and coins shall be made available from the servicing Military Banking Facility (MBF) with no direct or analysis charge to the credit union, provided settlement is made via a local MBF account or equivalent arrangements are made with the MBF. b. Credit unions may purchase foreign currency from the servicing MBF at the bulk rate when used for internal vendor or payroll payments. The rate of exchange for sales to individuals must be no more favorable than that available from the MBF, in accordance with DoD Directive 7360.11. Pt. 234 c. Overseas credit unions operating in military payment certificate areas shall comply with DoD Directive 7360.5 and any DoD Component regulations implementing issuance. that 5. The operations of all federally-chartered Defense credit unions are subject to regulation by NCUA. Thus, NCUA Rules and Regureports, and lations, procedural forms, manuals directly apply to all Defense credit union branches and facilities operating over seas. 6. NCUA Rules and Regulations prohibit Federal credit unions from granting longterm (in excess of 15 years) first mortgage loans on any type of residence in any country outside the United States, its territories and possessions, or the Commonwealth of Puerto Rico. 7. Funds shall be deposited and invested in accordance with the authority -applicable to federal credit unions. Overseas Defense credit union branches and facilities shall deposit funds in accordance with instructions issued by the NCUA, giving full consideration to using the servicing MBFs. 8. Operation of overseas Defense credit union branches and facilities shall be reviewed by the NCUA during examination of the parent credit union or as the NCUA determines necessary. 1. Notification of Credit Unions Each DoD Component shall ensure that every credit union with an office at its installations receives a copy of the document that implements this Instruction and DoD Directive 1000.11. 234.11 Alcoholic beverages and controlled substances. 234.12 Restriction on animals. 234.13 Soliciting, vending, and debt collection. 234.14 Posting of materials. 234.15 Use of visual recording devices. 234.16 Gambling. 234.17 Vehicles and traffic safety. 234.18 Enforcement of parking regulations. 234.19 Penalties and effect on other laws. AUTHORITY: 10 U.S.C. 131 and 2674(c). SOURCE: 63 FR 32619, June 15, 1998, unless otherwise noted. 8234.1 Definitions. As used in this part. Authorized person. An employee or agent of the Defense Protective Service, or any other Department of Defense employee or agent who has delegated authority to enforce the provisions of this part. Operator. A person who operates, drives, controls, otherwise has charge of, or is in actual physical control of a mechanical mode of transportation or any other mechanical equipment. Pentagon Reservation. Area of land and improvements thereon, located in Arlington, Virginia, on which the Pentagon Office Building, Federal Building Number 2, the Pentagon heating and sewage treatment plants, and other related facilities are located, including all roadways, walkways, waterways, and all areas designated for the parking of vehicles. Permit. A written authorization to engage in uses or activities that are otherwise prohibited, restricted, or regulated. Possession. Exercising direct physical control or dominion, with or without ownership, over property. State law. The applicable and nonconflicting laws, statutes, regulations, ordinances, and codes of the state(s) and other political subdivision(s) within whose exterior boundaries the Pentagon Reservation or a portion thereof is located. Traffic. Pedestrians, ridden or herded animals, vehicles, and other conveyances, either singly or together, while using any road, path, street, or other thoroughfare for the purposes of travel. Vehicle. Any vehicle that is self-propelled or designed for self-propulsion, any motorized vehicle, and any vehicle drawn by or designed to be drawn by a motor vehicle, including any device in, upon, or by which any person or property is or can be transported or drawn upon a highway, hallway, or pathway, to include any device moved by human or animal power, whether required to be licensed in any state or otherwise. Weapons. Any loaded or unloaded pistol, rifle, shotgun, or other device which is designed to, or may be readily |