Compliance Question of the Week

We have funds held for a share-secured Visa and we received a tax lien. Do we have to send the funds securing our debt?

No, you do not have to send the funds securing the debt.  The credit union would have priority over an IRS levy or other lien if the member signs a security agreement pledging a specific dollar amount and the funds are not available to the member until the loan is paid off.  The security agreement must be signed before the credit union receives the levy.

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance.