Supplemental Capital State Laws
Existing State Law:
Several states already have regulations in place authorizing the use of supplemental capital for state-chartered credit unions. Unfortunately, because those forms of capital cannot be used toward regulatory requirements, credit unions do not have an incentive to utilize that authority to bolster their capital position. Below are links to existing state regulations pertaining to the use of supplemental forms of capital. NASCUS has urged NCUA to incorporate these state-approved sources of capital into the risk-based capital calculation so that state chartered credit unions may begin to utilize these tools immediately.
Texas: Credit union capital can include “other forms of capital in accordance with generally accepted accounting principles and approved by the commissioner.” (Texas Finance Code Section 122.103). Credit Unions may issue certain types of Certificates of Indebtedness that may count as capital (7 TAC Section 91.7000). Texas Finance Code Section 122.103