ALEXANDRIA, Va. (6/16/08)--The National Credit Union Administration (NCUA) has activated its disaster relief policy to assist credit unions and their members affected by the storms, flooding, and tornadoes in Indiana and Iowa. As of Friday in Iowa alone, an estimated 20 to 30 credit unions had been affected by numerous Midwest storms and subsequent flooding, according to the Iowa Credit Union League. President George W. Bush has declared an emergency exists in Indiana and Iowa and has ordered federal aid to supplement state and local response efforts. Under its disaster assistance policy, NCUA announced it will, where necessary:
* Encourage credit unions to make loans with special terms and reduced documentation to affected members; * Reschedule routine examinations of affected credit unions if necessary; *Guarantee lines of credit for credit unions through the National Credit Union Share Insurance Fund; and *Make loans to meet the liquidity needs of member credit unions through the Central Liquidity Facility.
The NCUA announcement noted that the agency works with individual state league organizations and state regulators to ensure all federally insured credit unions are aware of NCUA’s available assistance. Region III and Region IV examiners are closely monitoring the situation and will provide assistance as needed. When operating under disaster conditions, the NCUA instructs its personnel to operate maintaining three priorities. First is to determine the safety of credit union staff and operational condition of credit unions. Second is to provide needed material and technical assistance to affected credit unions. The final priority is to return credit unions to normal operations as quickly as possible. The NCUA reiterated that member accounts in all federally insured credit unions, including those affected by the storms, are insured by the National Credit Union Share Insurance Fund, a federal fund backed by the full faith and credit of the U.S. government.