If a federal credit union offers services such as lines ofcredit, share-draft processing, check collection, ACH originationand receipts to its members, it can also provide them to othercredit unions, according to an advisory opinion from the NCUA'sOffice of General Counsel.
|Associate General Counsel Hattie M. Ulan wrote that a federalcredit union can provide lines of credit to other credit unionsunder the statutory lending authority included in the applicablelaw. The other services are allowed under the credit union'sincidental powers authority.
|She also wrote that if a federal credit union operates acentralized vault and performs regular pickups of coins andcurrency, it can provide these services to other credit unionsunder the definition of correspondent services.
|Ulan was responding to an inquiry from Indianapolis consultantDan Schoenherr.
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