ALEXANDRIA, Va. — NCUA issued a letter to credit unions last week to alert them to exactly what is included in the Financial Services Regulatory Relief Act now that it is law.
Letter to Credit Unions 06-CU-17 pointed out that NCUA already issued an interim final rule at its October board meeting to allow credit unions to provide check cashing and wire transfer services to nonmembers within their fields of membership and to extend loan maturity limits from 12 to 15 years; these become effective after publication in the Federal Register, expected shortly. "NCUA intends to draft other necessary revisions promptly," the letter stated.
NCUA also noted that reg relief clarifies that credit unions are permitted to lease facilities and federal land at no or low cost and redefines net worth for purposes of Prompt Corrective Action for the continuing credit union in a merger.
Recommended For You
There are also lesser-known provisions NCUA enumerates in its letter:
o Section 707 amends the FCUA to allow NCUA, in its discretion, to share examination or other confidential supervisory information with other agencies and state supervisors, and directors and officers of a credit union.
o Section 708 clarifies that suspensions, prohibitions, and removals are effective when the order is issued whether or not they remain institution-affiliated parties of a credit union.
o Section 715 explains that NCUA can issue orders, as well as notices, to institution-affiliated parties, even after separation from service.
o Section 716 amends the FCUA to change one of the grounds for cease and desist orders, removal and prohibition orders, and civil money penalties.
o Section 718 prevents any party to a contract (except director and officer liability and credit union bonds and certain qualified financial contracts) from terminating, accelerating or declaring default for 45 days after appointment of a conservator or 90 days after appointment of the liquidating agent.
o Section 719 amends the Fair Credit Reporting Act to authorize NCUA to acquire credit scores of individuals in connection with the resolution or liquidation of a failed or failing credit union.
o Section 720 exempts NCUA from prosecution by federal, state, or local authorities for criminal offenses committed by a credit union or institution affiliated parties before its appointment as liquidating agent.
o Section 721 changes the review of the NCUA Board's determination of insurance coverage from the Federal Appeals Courts to the Federal District Courts; the 60-day statute of limitations for challenging remains unchanged.
o Section 722 allows destruction of records more than 10 years old upon NCUA's appointment as liquidating agent; current law requires waiting six years after appointment as liquidating agent before destroying any records.
o Section 723 authorizes NCUA to store records in film or electronic form, and clarifies that these records are deemed original records for all purposes.
o Section 726 includes a number of technical corrections to the Federal Credit Union Act.
NCUA also pointed out that the new law requires two Government Accountability Office studies "that will likely be of interest to credit unions." GAO will have to submit a report on the currency transaction report filing system within 15 months of enactment and, separately, examine options for depository institution chartering. This second study, due one year after enactment, is to include differences in powers among the different charters and the aggregate cost and breakdown associated with regulatory compliance for banks, savings associations, credit unions, or any other financial institution. The investigative arm of Congress must also consider the efficiency of consolidating the financial regulators and charter simplification. –[email protected]
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
