Legal Briefs


The Federal Reserve Board released CA 11-6. This letter covers the Revised Examination Procedures for the Servicemembers Civil Relief Act.


The NCUA released Letter to Credit Unions 11-CU-11. This letter to credit unions covers the impact on credit unions of the U.S. debt downgrade by S&P. Regulators will not change government risk weights, but the letter also discusses consumer confidence and the potential impact on share and loan demand.

The NCUA released Letter to Credit Unions 11-CU-12. This letter to credit unions covers disclosing CAMEL ratings to federally-insured state credit unions when the NCUA examiners perform insurance reviews.

The NCUA issued Risk Alert 11-RISK-01. This risk alert covers the National Security Agency’s advisories regarding the risks presented by the RSA SecurID tokens breach. The risks of relying on the tokens that were issued prior to April 2011 are greater than originally assessed.

The NCUA issued Legal Opinion Letter 11-0642. This letter discusses forming a Credit Union Service Organization to purchase an office building from the Federal Credit Union (FCU) and leasing a majority portion of the building back to the FCU. The NCUA raises some issues with the lease arrangement, primary services, and fixed asset accounting.

The NCUA issued Legal Opinion Letter 11-0734. This letter discusses loans for the purchase of musical instruments being treated as member business loans. The conclusion of the letter is that a loan’s purpose and amount determines whether the loan is a member business loan. Since the instrument loan provides a means for members who are professional musicians to purchase a musical instrument for use in their trade, it is considered a member business loan.

Office of Foreign Assets Control

The OFAC SDN list was updated again. Last update: Aug. 16, 2011.


The FASB approves standard to simplify testing goodwill for impairment. The amendments will allow an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity will no longer be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The guidance also includes examples of the types of factors to consider in conducting the qualitative assessment.

11th Circuit Court of Appeals

The 11th Circuit Court of Appeals in Atlanta ruled on Aug. 12, 2011, that the federal government may not force individuals to purchase government-approved health insurance in the private marketplace. This ruling affirmed the lower court’s ruling that the individual mandate of the Affordable Care Act is unconstitutional.

Department of Labor

The U.S. Department of Labor proposed new rules under the Affordable Care Act to enable consumers to easily understand their health care coverage. The proposed rules would require an easy-to-understand summary of benefits and coverage along with a uniform glossary of terms.


Questions? Contact Director of Regulatory Advocacy Jaycee Winn: 503.350.2209,

Posted in NCUA.