The NCUA should pay interest to credit unions that make prepayments of their corporate credit union rescue assessments that is "slightly less'' than what the agency is paying in interest to the Treasury Department, CUNA President/CEO Bill Cheney suggested in a letter he sent Monday to NCUA Board members.
Cheney wrote that he was making the suggestion because NCUA officials had expressed concern that if they paid interest on the prepayments it would violate rules established by the Federal Credit Union Act and the Internal Revenue Code as to what constitutes a gift.
He wrote that the approach he outlined would "be permissible, consistent with the FCU Act and the IRS's definition.''
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