Legal Briefs March 24, 2011
May 24, 2010
Federal Reserve Board
The FRB issued more Credit Card Act clarifications to Reg Z. The Board’s rule clarifies promotional programs for specific time periods, application and similar fees during the first year, using only the member’s ability to pay as the determination of issuing credit. In addition, applications can no longer request consumer’s household income. The final rule’s effective date is October 1, 2011.
The NCUA Board issued a proposal to amend the definitions of “net worth” and “equity ratio.” The conforming amendments are to incorporate the statutory definitions of Senate Bill 4036. Comments are due within 60 days. May 15, 2011.
The NCUA board issued technical corrections to the corporate credit union final regulation. The rule was previously issued as an interim rule that was effective on January 18, 2011.
The NCUA issued modifications to corporate credit unions rules regarding the delegations of authority. These are mostly technical changes to the authorities delegated to the Director of the Office of Corporate Credit Unions.
The NCUA adopted a final rule amending the definition of Low-Risk Assets. The final rule permanently expands the definition to include debt instruments unconditionally guaranteed by the NCUA.
The NCUA issued a proposed rule to address interest rate risk management. The proposed rule will require federally insured credit unions to have a written policy to address interest rate risk management. Comments are due within 60 days after the proposal is entered in the Federal Register. Approximately May 17, 2011
The NCUA released Legal Opinion Letter 11-0152. The letter concerns credit unions reimbursing training expenses for “associate directors”; and if these individuals act in more than an honorary capacity, they can be reimbursed for reasonable training expenses and related travel expenses.
The FinCEN issued Advisory FIN-2001-A006. The guidance discusses enhanced due diligence that is required for any correspondent account that is maintained for a foreign bank.
Posted in NCUA.