Legal Briefs

NCUA

The NCUA issued Letter to Credit unions 11-CU-06. This letter to credit unions covers the $1,740,000 that is available for technical assistance grants from the NCUA.

The NCUA issued Opinion Letter 11-0332The opinion letter discusses the permissibility of a Federal Credit Union to purchase or invest in an existing insurance agency as a CUSO if the insurance agency would change its customer base to primarily serve credit union members.

The NCUA proposed rulemaking that will allow federal credit unions to engage in derivatives for the purpose of hedging or offsetting interest rate risk.  Comments will be due 60 days after the rule in published in the Federal Register.  Approximately August 22, 2011

The NCUA approved the final rule allowing Federal Credit Unions to use member survey sample data to meet low-income designation.  The rule will be effective 30 days after published in the Federal Register.  Approximately July 22, 2011.

The NCUA issued final rule technical corrections to the Golden Parachute and Indemnification Payments rules.  The technical corrections specify that only 457 (b) plans under the IRS code are excluded by the definition of the term “golden parachute payment”.  The rule corrects will be effective on June 27, 2011.

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Office of Foreign Assets Control 

The OFAC SDN list was updated again.  Last update June 21, 2011. 

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FASB

The FASB issued an accounting standards update to improve the presentation of comprehensive income.  The main provision which will supersede some of the guidance in Topic 220 will provide that an entity that reports items of other comprehensive income has the option to present comprehensive income in either one or two consecutive financial statements.

Posted in Compliance, Federal, NCUA.