ALEXANDRIA, VA. — Board members of federal credit unions could only get limited exemption from being sued for some of their actions, FCUs seeking to convert to banks would have to get an independent evaluation, and board members and employees couldn't assist members in filling out ballots during conversion votes.
Those are among the proposed regulations in a rule that the NCUA Board unanimously sent out for a 60-day comment period at today's meeting.
Federal credit unions wouldn't be able to indemnify officials and employees against liability based on "aggravated breach of duty of care," when a breach affects members' rights and financial interests."
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If a federal credit union is considering a bank conversion, the board and its executives must break down the costs of converting and distribute it to members and provide "complete and accurate" information about possible changes in service, such as branch closings or access to a shared branching network.
The board also sent out for 60-day comment period a proposal to eliminate Regulatory Flexibility exemptions for federal credit unions in areas such as fixed assets, member business lending and stress testing.
Almost 20% of insured shares continued to be in credit unions with a rating of CAMEL 3 or higher at the end of last month and the NCUSIF's equity ratio remained at 1.23%, NCUA Chief Financial Officer Mary Ann Woodson told the NCUA Board.
She said that 13.9% of insured shares were in CAMEL 3 credit unions and 5.72% of shares were at CAMEL 4 and 5 credit unions.
There were four failures of federally insured credit unions in February.
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