If a federal credit union offers services such as lines of credit, share-draft processing, check collection, ACH origination and receipts to its members, it can also provide them to other credit unions, according to an advisory opinion from the NCUA's Office of General Counsel.
Associate General Counsel Hattie M. Ulan wrote that a federal credit union can provide lines of credit to other credit unions under the statutory lending authority included in the applicable law. The other services are allowed under the credit union's incidental powers authority.
She also wrote that if a federal credit union operates a centralized vault and performs regular pickups of coins and currency, it can provide these services to other credit unions under the definition of correspondent services.
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
