Assessment Fears Widen to State-Chartered CUs
If more credit unions leave the NCUSIF, can the NCUA take steps to minimize the impact on those that remain?
That’s a question raised by NASCUS and some credit union executives.
The agency has previously said that it can collect the entire premium up front as long as it does so for all credit unions. However, its attorneys have also said that it lacks the statutory authority to require an individual credit union that leaves the NCUSIF, either through conversion to private insurance or to a bank, to pay its full share of the costs of rescuing the corporate credit unions before leaving the NCUSIF.
NAFCU Vice President and General Counsel Carrie Hunt said the equal protection clause of the Constitution’s 14th Amendment makes it difficult for Congress to craft legislation that would give the NCUA the ability to mandate that a credit union pay the entire amount before leaving the NCUSIF.