NCUA to Deal With Mergers, Low-Income Definition and Transaction Accounts
The NCUA Board doesn't plan to end the year quietly.
At its final scheduled meeting of 2010 next Thursday, the board will tackle merger policies, the definition of low income and the health of the insurance fund, among other subjects.
Board members will vote on a final rule on mergers and conversions. The proposed rule says that board members of federal credit unions could only get limited exemption from being sued for some of their actions. In addition, FCUs seeking to convert to banks would have to get an independent evaluation and board members and employees couldn't assist members in filling out ballots during conversion votes. NCUA's proposed rules mandate that voting must be conducted in secret and tallied by an independent entity and prohibit preliminary vote tallies.
In comment letters, CUNA and NAFCU said the rules limiting indemnification would make it hard to recruit board members.
The board is also slated to vote on a final rule modifying the definition of low income. The interim final rule states that in determining a credit union's low-income designation, the comparison of credit union data must use data for the same category. The rule mandates that individual member data be compared to individual median income data and not compared to median family income.
In addition, the board is scheduled to vote on a proposed rule governing the agency's insurance on non-interest bearing transaction accounts, as required by the financial overhaul bill passed earlier this year.
The NCUA Board is also slated to discuss a proposal to change the methodology for determining the overhead reimbursement policy of the Central Liquidity Facility.
It is also slated to hear an appeal from Tri-State FCU of a denial of its field of membership request.
NCUA CFO Mary Ann Woodson is scheduled to give an update on the health of the NCUSIF and the Temporary Corporate Credit Union Stabilization Fund.
The meeting is scheduled to begin at 10:00 a.m. next Thursday, Dec. 16, at the agency's headquarters in Alexandria, Va.