In line with a revised NCUA rule, certain federally insured credit unions must amend their CUSO contractual agreements before the June 30 effective date.
The provision applies to federal credit unions investing in or lending to a CUSO under CUSO rule amendments finalized by the NCUA board in November 2013.
However, a federal credit union that only receives products or services from a CUSO is not subject to the new requirement, according to the NCUA.
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Brian Lauer, a partner with law firm Messick & Lauer P.C., in Media, Pa., wrote the NCUA for clarification on which credit unions and CUSOs would be affected.
"There was some confusion among credit unions and CUSOs whether this regulatory burden extends to credit unions with only a contractual agreement for services with a CUSO," Lauer wrote on NACUSO's website. "We did not believe that it did or that it should. The NCUA agrees."
Indeed, in a May 29 letter to Lauer, NCUA General Counsel Michael McKenna clarified that a CUSO is not required to enter into a written agreement in which the CUSO is obligated to submit an annual report to the regulator if the credit union does not have an investment in or loan outstanding to the CUSO.
The amended CUSO rule goes into effect June 30.
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