WASHINGTON - Federal credit unions will pay NCUA more money andin return get examined more closely, as a result of today's actionsby the agency's board.

Those credit unions will pay at least 6.7% more next year inoperating fees and possibly as much as 12% more, based on assetsize, according to the new rate structure approved unanimously bythe three-member board.

NCUA Deputy Chief Financial Officer Michael McNeill said the feewas necessary to finance additional costs of the agency'soperations, including changes to the examination cycle. He toldboard members that the assets of federal credit unions areprojected to increase 6.5% this year.

Most federal corporate credit unions will pay the same dollaramount in a fee. The only exception is for those with assetsbetween $750,000 and $5 million-their fee is based on the naturalperson scale-meaning that their dollar amount will increase by6.7%.

In addition to paying more money, federal credit unions will beexamined more frequently by the agency.

The board revised the examination schedule so that all federalcredit unions will receive an examination or an "on-sitesupervision contact'' every 12 months, based on risks observed overa period of 10-14 months. Currently, the agency's target is oneexam every 18 months with an average of 16 months betweenexams.

NCUA will closely monitor all CAMEL coded 3 and 4 federally insuredstate chartered credit unions and do an on-site insurance reviewwithin a targeted period of every 10-14 months.