Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
NCUA asks Corp. CUs to speed biz plan development
ALEXANDRIA, Va. (12/16/10)--The National Credit Union Administration (NCUA) in a letter encouraged corporate credit unions to submit their business plans “as early as possible,” and provided a timeline and other information “designed to enable corporate and natural person credit unions to undergo a smooth transition and ensure no disruption in member services” as they transition into an altered corporate credit union system. In a letter to credit unions sent this week, the NCUA provided an outline of the actions that credit unions will need to take due to the new rule, and the dates by which many of these actions will need to be completed. One key date is March 31, the date by which undercapitalized corporates must provide recapitalization plans and business plans to their members. The NCUA in the letter said that district examiners will work with corporates in some cases to obtain an early understanding of their proposed strategic and capital compliance plans to help expedite the review and approval process. The letter to credit unions and a fact sheet also specifically address corporate capital escrow accounts, capital priority and conversion, the priority of legacy assets, corporate chartering and merging, and various credit union service organization (CUSO) activities. One notable addition is a to-be-established process that will require corporates to maintain escrow accounts for accumulated capital. “If a corporate raises enough capital by Sept. 30, 2011 to meet NCUA’s new capital standards, which take effect Oct. 20, 2011, the pledged capital in escrow will be converted to regulatory capital. However, if a corporate’s capital subscription falls short by that Oct. 20 regulatory compliance deadline, all pledged capital in escrow will be returned to members,” the NCUA said. For the NCUA documents, use the resource links.
Other Resources

RSS print
News Now LiveWire
#FreeGasFriday courtesy of @tvfcu, TN #creditunions http://t.co/wDRFYJVlpz
1 Day ago
If you were unable to watch or attend @cuna 's @thehill Hill forum on Wed., you can now watch the archived version: http://t.co/FhUnp7HbU8
1 Day ago
Time is running out. If you haven't taken the #NewsNow readership survey, please click here now: http://t.co/4Gp6C2Wa4o
1 Day ago
African financial inclusion possible with mobile money: @IMFNews study http://t.co/0V5DTQToxY
40 minutes ago
Louise Herring's birthday is Saturday. 105 years later, her legacy lives on through her kids http://t.co/oMqGADmo0d http://t.co/T3NmS9NqEY
1 hours ago