Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Liquidation must stay a last CU resort: CUNA to NCUA
WASHINGTON (5/5/14)--In its proposed updates to voluntary liquidation rules, the National Credit Union Administration should reinforce that liquidation of a credit union is a drastic step and should be only be undertaken when no other options are viable, the Credit Union National Association said in a comment letter filed with the agency last week.

The proposed liquidation rule updates, released at the February NCUA open board meeting, would permit liquidating federal credit unions to publish required creditor notices in electronic media or newspapers of general circulation.

It would also increase the asset size threshold for requiring multiple creditor notices, by exempting federal credit unions with less than $1 million in assets from the publication requirement, and exempting federal credit unions with less than $50 million in assets from the multiple publication requirement.

Other portions of the update impact how credit union members will be refunded their member shares in the event of a liquidation. NCUA Chairman Debbie Matz in February said the changes are intended to modernize the rule and factor in credit union growth since 1993, which was when the rule was last updated.

"We recognize that a small number of credit unions may choose to liquidate, but we urge NCUA to add language to the rule requiring agency staff to work with a credit union considering such an option to find ways to either continue operation or merge with another credit union, in order to ensure members will continue to have access to a credit union if at all possible," CUNA Deputy General Counsel Mary Dunn wrote.

While it generally supports the agency's efforts to update the rule and generally agrees with it, CUNA has recommended some changes.

"Consistent with longstanding CUNA policy, we believe that credit union liquidation should only occur as a last resort," Dunn added.

For more on the changes, use the resource link.
Other Resources

CUNA comment letter
RSS





print
News Now LiveWire
Watching #SuperBowlXLIX this Sunday? Look for regional #creditunion #commercials @CltMetroCU @BECU @golden1cu #Seahawks #Patriots
9 hours ago
Philadelphia's American Bakery Workers FCU liquidated by @TheNCUA; @trumarkonline assumes shares
9 hours ago
More branch shutterings by @Citi: 4th-largest bank to close 10% of #Chicago area branches HT @CrainsChicago http://t.co/2vAvgucLY5
10 hours ago
56% struggle with subprime credit scores says @cfed survey HT @washingtonpost http://t.co/RHmMvuhNtw
11 hours ago
How to use social media for crisis communications Feb. 10 webinar from @SBAgov, @AgilityRecovery http://t.co/d16t8RHr7n
11 hours ago