The National Credit Union Administration proposed new rules this morning that will dramatically impact regulation of credit union service organizations if approved. The NCUA proposed three major changes.
First, the NCUA has proposed altering the Board’s access to a CUSO’s records. Currently, the NCUA maintains the right to inspect a CUSO’s books and records at any time. Under the new regulations, however, all CUSOs would be required to submit an annual financial report directly to both the NCUA and the Tennessee Department of Financial Institutions (the “Department”).
Next, the Board raised concerns regarding federally insured state-chartered credit unions (“FISCUs”) which find themselves “less than adequately capitalized.” More specifically, the NCUA is worried that FISCUs which continue to invest in failing CUSOs risk creation of serious problems for their members.
Please see full alert below for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.
Administrative Law Updates, Finance & Banking Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
© Miller & Martin PLLC | Attorney Advertising