ABA, CUs Weigh In On New CUSO Regs
Of the nearly 70 comment letters the NCUA has received so far in reaction to its proposed amendments to the CUSO rule, it’s no surprise that the majority are opposing the measure.
In addition to several CUSOs, nearly 30 credit unions cited detailed instances of how CUSOs have helped to bring added services to their respective membership and increased their bottom line.
The ABA said it has concerns about the section of the proposed rule, which would allow undercapitalized, federally insured state chartered credit unions to invest in a CUSO to the permissible state limit.
Specifically, some state laws have significantly higher CUSO investment limits than the Federal Credit Union Act, which would cause the CUSO investment to represent a significant contingent claim on the net worth of an undercapitalized FISCU, Leggett said.