NCUA to extend information collections
for low-income designation, PCA, more

July 25, 2018 -- Until Sept. 24, NCUA will accept comments on four proposed extensions of information collection. Only one of the proposals – the designation of low income status – would revise the currently approved collection. NCUA cites the relocation of the appeals process to another section of the rules and regulations as grounds for the change.

The four proposed extensions are:

  • Designation of Low Income Credit Unions: The Federal Credit Union Act permits the NCUA Board to define low-income members so that credit unions with a membership serving predominantly low-income members can benefit from certain statutory relief and receive assistance from the Community Development Revolving Loan Fund. To utilize this authority, a credit union must receive a low-income designation from NCUA and the agency uses the information collected to determine whether the credit union meets the criteria for the designation. 
  • Notice of Change of Officials and Senior Executive Officers: To comply with statutory requirements, NCUA must obtain sufficient information from new officials or senior executive officers of troubled or newly chartered credit unions to determine their fitness for the position. The forms provide a standardize format to collect the information needed.
  • Prompt Corrective Action: The Federal Credit Union Act requires prompt corrective action (PCA) for federally insured credit unions (FICUs) that become less than well capitalized. The NCUA Board is required to (1) adopt, by regulation, a system of prompt corrective action to restore the net worth of inadequately capitalized FICUs; and (2) develop an alternative system of prompt corrective action for new credit unions that carries out the purpose of PCA while allowing an FICU reasonable time to build its net worth to an adequately capitalized level. NCUA provides that the purpose of PCA is to resolve the problems of FICUs at the least possible long-term loss to the National Credit Union Share Insurance Fund (NCUSIF).
  • Involuntary Liquidation Proof of Claim Form: When credit unions are involuntary liquidated, NCUA is appointed as the liquidating agent. Under the rules, creditors making a claim must document their claim in writing and submit a form to NCUA. NCUA may also require claimants to submit supplemental evidence to support their claims. NCUA notes that this collection of information is necessary to determine the validity of claims.

The public is invited to submit comments regarding: 

  • (a) Whether the collection of information is necessary for the proper execution of the function of the agency, including whether the information will have practical utility;
  • (b) the accuracy of the agency's estimate of the burden of the collection of information, including the validity of the methodology and assumptions used; 
  • (c) ways to enhance the quality, utility, and clarity of the information to be collected; and 
  • (d) ways to minimize the burden of the collection of the information on the respondents, including the use of automated collection techniques or other forms of information technology.

LINK:

NCUA Information Collection Activities: Proposed Collection; Comment Request (low income designation, PCA, more)