NCUA To Deal With Golden Parachutes, Advertising and Insurance Fund
The NCUA Board is scheduled to discuss and vote on a final rule at next Thursday’s meeting that would ban troubled federally insured credit unions from offering golden parachutes to their executives.
Under the proposed rule, agency defines golden parachutes as payments that are "contingent on the termination of that person's employment and received when the credit union making the payment is troubled, capitalized or insolvent."
Those would be banned at credit unions that are insolvent, in conservatorship or have ratings of CAMEL 4 and 5. All federally insured credit unions would be banned from paying legal or professional expenses incurred in federal or state administrative proceedings that result in a monetary punishment, cease and desist order.
The board is also slated to discuss a rule that would place additional requirements on advertisements. The proposed rule would reinstate the requirement that the following communications include the “Federally Insured by NCUA” official advertising statement: Radio and television ads of 30 seconds or less, annual reports,nd other “statements of condition.’’
Board members are also slated to discuss what options might be available for credit unions that want to prepay their assessments to the Temporary Corporate Credit Union Stabilization Fund.
The board is also scheduled to unveil a proposed rule aimed at clarifying the procedures for applying to the Community Development Revolving Loan Fund.
NCUA CFO Mary Ann Woodson is slated to give her regular report on the NCUSIF and the Temporary Corporate Credit Union Stabilization Fund.
The board has a closed meeting after the public session. On the agenda are an insurance appeal, two personnel matters and one supervisory activity.
The meeting is at 10 a.m. at the agency’s headquarters in Alexandria, Va.