ALEXANDRIA, Va. – It was a long haul to a new corporate regulation, but most corporate leaders feel it was worth it. The NCUA Board approved the new corporate reg at its October board meeting. The main highlights include the following: *A grandfathering provision for Paid-in-Capital; *Elimination of a provision restricting corporates from paying dividends if Reserves, Undivided Earnings fall below 2%; *Ability of corporates to invest in BBB investments at a limit of 25% of capital; *Permitting the purchase of servicing rights in conjunction with the purchase of a loan. What weren't corporates happy about? The provision that requires corporates to record ACH transactions at the time of advice of funds, rather than the settlement date. Corporate leaders are also disappointed that they were unable to get NCUA to move to a more risk-based system for evaluating their balance sheets.
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