Legal Briefs


The NCUA released the results of the May 19 Board Meeting.  The board seeks input on a plan for voluntary prepaid assessments.  They approved a proposed rule to ease regulatory burdens on Community Development Revolving Loan Fund, a final rule imposing limits on golden parachutes, a final revision to the NCUA’s advertising regulation, and a final rule clarifying the Dodd-Frank Act’s requirement to provide unlimited share insurance for non-interest bearing transaction accounts.

The NCUA approved final rules amending the accuracy in advertising of insured status.  The amendment rescinds three exemptions from the general rule.  The rescinded exemptions include radio and television advertisements that do not exceed 30 seconds, annual reports, and other statements of condition required by law.  Mandatory compliance with the amendments will be January 1, 2012.

The NCUA approved a final rule clarifying the Dodd-Frank Act, requiring temporary unlimited deposit insurance coverage for non-interest bearing transaction accounts.  The coverage was self-implementing when the Dodd-Frank Act was signed.  The final rule clarifies definitions, provides that this new insurance coverage is separate from and in addition to other coverage under the NCUSIF, and imposes certain notice and disclosure requirements.  The rule is effective 30 days after entry into the Federal Register.  Approximately June 20, 2011.

The NCUA approved a final rule to prohibit golden parachute and indemnification payments in certain circumstances.  The final rule prohibits FICUs that are insolvent, in conservatorship, rated CAMEL 4 or 5 from making golden parachute payments.  The rule is effective 30 days after entry into the Federal Register.  Approximately June 20, 2011.

The NCUA approved a proposed rule regarding the Community Development Revolving Loan Fund.  The rule will change the process by which the NCUA solicits, receives, evaluates, and acts on credit union applications seeking loans and technical assistance grants from the CDRLF.  Comments are due on the proposed rule by approximately July 20, 2011.

The NCUA seeks input on a plan for Voluntary Prepaid Stabilization Fund Assessments.  The plan would allow credit unions to use excess to make voluntary prepayments of the assessments.  The NCUA will be hosting a free webinar on May 26.  Comments are due by June 20, 2011.

The NCUA released Regulatory Alert 11-RA-03 concerning security incidents prevention and detection.  In response to several recent security breaches involving unauthorized access to vendor’s systems that might impact federally insured credit unions, this risk alert highlights appropriate security incident prevention and detection steps for credit unions to protect and secure their members’ information.  The alert also include notices from US-Cert and RSA tokens.

Office of Foreign Assets Control
The OFAC SDN list was updated again.  Last update May 24, 2011. 

Washington DCU
The Washington State DCU issued bulleting b-11-03 regarding safe and sound student loan programs.  The bulletin reviews what examiners will expect to find before a student loan program will be considered safe and sound for Washington credit unions.


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Posted in CU4Kids, NCUA.