After years of disagreement on how to approach the issue of supplemental capital for credit unions, CUNA and NAFCU last week moved closer together and agreed on some of the language on legislation to allow member-only alternative capital.

The trades are in agreement on proposed language, which allows secondary capital for mainstream credit unions but restricts it to accounts that are funded by members, are subordinate to all other claims against the credit union, including the claims of creditors, shareholders and the share insurance fund. The capital infusion cannot alter the cooperative nature of the credit union, including, members' ownership and control of the credit union and are uninsured.

The draft language, which NAFCU President Fred Becker sent to CUNA President/CEO Dan Mica on Sept. 24 and senior officials of the trade groups discussed on Sept. 25, does not include a provision for allowing outside capital, which CUNA has supported. But Mica told Credit Union Times that he hopes the group's position on that part of the issue might resurface later on.

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