Reminder: Compliance Date for NCUA Emergency Liquidity Rule is March 31

Compliance preparations for the National Credit Union Administration’s new Emergency Liquidity Rule must be complete by March 31.

The liquidity rule sets up three-tiered emergency liquidity requirements for credit unions with less than $50 million in assets, between $50 million and $250 million in assets, and more than $250 million in assets.

Credit unions with less than $50 million in assets must maintain a basic written emergency liquidity policy, but they will not be required to take further action. All credit unions with assets of $50 million or more are required to develop contingency funding plans that describe how their credit union will address liquidity shortfalls in emergency situations. Credit unions with assets of $250 million or more would be required to have access to a backup federal liquidity source for emergency situations.

The final rule does not include the Federal Home Loan Banks as an acceptable source of emergency liquidity, although eligible credit unions required to meet the federal source provisions would be free to borrow from an FHLB for non-emergency purposes. Without the FHLB, credit unions have two options to ensure a federal liquidity source for emergency situations: becoming a member of the NCUA’s Central Liquidity Facility by subscribing to CLF stock, or accessing the Federal Reserve’s discount window.

Credit unions looking to jumpstart either their emergency liquidity policy or contingency funding plan may wish to look at CU PolicyPro model policy 5200 – Liquidity Risk Management.

Question of the Week

Q: Can a credit union require the member to sign up for an electronic repayment plan before they make the loan?

No. Regulation E prohibits a credit union from conditioning a loan on the member’s repayment by pre-authorized EFT, unless the credit is offered as part of an overdraft credit plan or extended to maintain a minimum balance.  A credit union is permitted to offer programs that have cost-related incentives if the member agrees to enroll in a pre-authorized repayment plan.

Related Links:

12 CFR 1005.10(e)

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA released the agenda for its March board meeting.

The March edition of the NCUA Report is now available.

Consumer Financial Protection Bureau (CFPB)

The CFPB issued a Notice and Request for Comment regarding debt collection services.

Office of the Comptroller of the Currency (OCC)

The OCC published examination procedures for consumer compliance. The procedures include a strong focus on the new mortgage rules.

Comptroller Thomas Curry delivered a speech to the Association of Certified Anti-Money Laundering Specialists, which focused on BSA compliance and how it impacts other lines of business.

Housing and Urban Development Department (HUD)

HUD issued a proposed rule that will change the way FHA payments are handled.

Federal Reserve Board (FRB)

The March edition of Fedflash is now available.

The FRB released its audited annual financial statements.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of March 17. The last update prior to this was March 13.


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News, Federal, NCUA.