The NCUA has added several correspondent services to the list of incidental powers that federally chartered credit unions have.
According to a Jan.14 letter to Dan Schoenherr, an Indianapolis consultant, the agency said federally chartered credit unions could process other CUs share drafts, collect their checks, originate and receive ACH transactions and wire transfers for them; store and handle coin and currency on their behalf and offer them lines of credit.
"An FCU may offer lines of credit to other credit unions under its statutory lending authority in the FCU Act," the agency wrote. "An FCU may provide the other proposed services to credit unions pursuant to its incidental powers authority."
"Correspondent services are services an FCU provides to other credit unions that it is authorized to provide to its own members or as part of its operation," the NCUA continued. "You indicated to [Office of General Counsel] staff that your client FCU provides share draft processing; check collection; ACH origination and receipt; and, wire transfer services to its members. You also indicated the FCU operates a centralized vault, picking up and delivering coin and currency to its branch facilities as needed. As the FCU currently offers these services to its members and performs a cash center function for its own operation, these activities meet the definition of correspondent services."
