Corporate Credit Union Rule Absent from NCUA September Board Meeting Agenda

Sept. 10, 2010 — The National Credit Union Administration (NCUA) had predicted that it would consider a final rule on Part 704, Corporate Credit Unions, at its September 16 meeting. However, the agency has announced it will take up the final rule at a later date.

A final Part 704 rule is contingent on a plan for the corporate credit union legacy assets, also yet to be revealed by the agency.

According to the September 16 agenda, the NCUA Board will announce a National Credit Union Share Insurance Fund (NCUSIF) Premium, expected to be as much as 15 basis points. Earlier this year, a premium was assessed of 13.4 basis points, or 0.134 of insured shares, to pay a portion of the borrowings for the Temporary Corporate Credit Union Stabilization Fund. This assessment equaled $1 billion, funds that were paid to Treasury toward repayment of the temporary fund.

Further, at the September meeting, the NCUA Board is slated to brief the public on the agency's work to implement the applicable areas of the Dodd-Frank Act, and adoption of FASAB standards for the financial reporting of the NCUSIF. Two final rules impacting federal credit unions' secondary capital accounts and short-term, small amount loans (Part 701) will be considered, and NCUA staff will also provide a report on the NCUSIF.

To view the agenda, follow this link. NASCUS' comments on the proposed Part 704 can be viewed here.