The NCUA board of directors yesterday held their monthly board meeting, at which the board approved final rules on emergency mergers and parts of the agency’s reorganization plan.
Section 208 of the Federal Credit Union Act gives the NCUA board broad discretion to avoid credit union liquidation. The final rule on emergency mergers amends the definition of “in danger of insolvency” in the agency’s Chartering and Field of Membership Manual. The current definition requires NCUA to project a credit union to fall into at least one of three net worth categories over a period of time in order to be found in danger of insolvency. The rule lengthens the time period for two of the three current categories by six months and adds a fourth category to include credit unions that have been granted or received “Section 208” assistance within the 15 months before an “in danger of insolvency” determination has been made.
The rule will take effect 30 days after it is published in the Federal Register.
The agency’s restructuring rule will:
- close the Office of Small Credit Union Initiatives;
- create the Office of Credit Union Resources and Expansion, which will take over various responsibilities of the Office of Small Credit Union Initiatives, as well as some functions of the Office of Consumer Financial Protection and Access and the Office of Minority and Women Inclusion; and
- change the name of the Office of Consumer Financial Protection and Access to the Office of Consumer Financial Protection.
That rule becomes effective Jan. 6, 2018, to coincide with the implementation of the agency’s reorganization plan.