NCUA Starts Disaster Assistance to Respond to Southern Storms
NCUA Chairman Debbie Matz on Saturday activated the agency’s disaster assistance policy in response to the tornadoes that killed hundreds of people across the South earlier in the week.
The policy allows the NCUA to take the following actions:
- Guarantee lines of credit for credit unions in affected areas via the NCUSIF.
- Encourage credit unions to make loans with special terms and reduced documentation to affected members.
- Reschedule routine examinations of affected credit unions if necessary.
- Make loans to meet the liquidity needs of member credit unions through the Central Liquidity Facility.
The agency said a survey by its examiners showed that the $33 million, 5,700-member DCH Credit Union in hard-hit Tuscaloosa, Ala., was the only federally insured credit union unable to serve members from any of its locations. It is scheduled to reopen for business at one location on Monday.
Members were able to access their accounts via the $410 million Alabama Credit Union’s Tuscaloosa branches, via a shared branching network. Most credit unions in the affected areas are able to serve their members.
“Credit unions are about people helping people,” Matz said in a statement. “When tragedies like this week’s wave of deadly tornadoes and storms strike, people need to come together. Credit unions should reach out to their members and assist them.”
More than 330 people were confirmed killed by the storms Wednesday and Thursday, including about 250 in Alabama alone.
President Obama has declared the following counties to be disaster areas: Cullman, DeKalb, Franklin, Jefferson, Lawrence, Marshall, Tuscaloosa and Walker counties in Alabama; Bartow, Catoosa, Dade, Floyd, Polk, Spalding and Walker counties in Georgia; and Clarke, Greene, Hinds, Jasper, Kemper, Lafayette and Monroe counties in Mississippi.