NCUA Board Drops Controversial Provisions for Final Rule on Corporates (Misc News: April 25, 2011)
The NCUA board removed two controversial provisions from the final rule on corporate credit unions’ internal risk management, reporting and corporate governance requirements.
Mary Dunn, CUNA senior vice president and deputy general counsel, said that the deleted provisions would have:
- Limited natural person credit unions’ membership to only one corporate credit union; and
- Resulted in a virtual requirement that all entities using the services of a corporate credit union contribute to the Corporate Stabilization Fund, including entities that are not federally insured or financial institutions.
“NCUA did not have legal authority to adopt these provisions,” Dunn said.
In addition, the Board approved new services for CCU CUSOs, adopted a final interpretive ruling and policy statement (IRPS) on NCUA Supervisory Review Committee guidelines, and reviewed reports on the National Credit Union Share insurance Fund and the Temporary Corporate Credit Union Stabilization Fund.
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