SAN DIEGO -- Allowing corporates to require paid-in capital as a condition of membership is among the new regulations under consideration by the NCUA.
The NCUA will not require all corporates to collect PIC from members, General Counsel Bob Fenner told Town Hall attendees here this morning. However, the NCUA may let corporates choose whether or not to require permanent capital contributions from members.
Downsides of the proposal include the possibility that inconsistent PIC requirements will cause "corporate shopping" within the system, said Office of Corporate Credit Unions Director Scott Hunt, and could additionally encourage credit unions to shop outside the corporate system.
The NCUA is anticipating unveiling its proposed corporate regulations on Nov. 19, during a scheduled public board meeting. The industry will have either 60 or 90 days to comment, Fenner said.
