NCUA Plans Meeting Next Week on Corporate Rescue Prepayment Plan
The NCUA is holding a special meeting next Wednesday to discuss whether to implement its proposed plan to allow credit unions to prepay part of the assessment to finance the rescue of the corporate credit union system.
The comment period has ended and many letter writers made suggestions on what they think the agency could do to improve the program, including paying interest and raising the minimum amount of money that is needed before the program could be started.
Under the proposal, which the agency unveiled last month, credit unions could prepay between $10,000 and 36 basis points of insured shared toward their assessments to pay the costs of the rescue of corporate credit unions.
Credit unions wouldn't earn any interest and the total collected in prepayments would have to be at least $300 million for the program to take effect.
The meeting is scheduled to take place at 8:30 a.m. at the agency’s headquarters in Alexandria, Va.