BOARD ACTIONS OCTOBER 2012 (FROM PAGE 5)
higher than June 30. The fund continued to have $3.2 billion
in outstanding U.S. Treasury borrowings.
The Stabilization Fund billed $792.5 million from a special
premium assessment in September. The fund received $19.6
million in guarantee fees during the third quarter and more
than $61.4 million year-to-date through Sept. 30. As a result,
the Stabilization Fund had net operating income of $810.3
million for the quarter and $897.7 million through Sept. 30.
The 2012 financial data for the NCUSIF and the Stabilization
Fund is preliminary and unaudited.
Proposed Rule to Extend the Time
for Acceptance of a Low-Income
Credit Union Designation
The Board voted to release a proposed rule extending the
deadline for credit unions to accept the low-income designation
to 90 days following notification of eligibility by NCUA. Under
existing regulations, credit unions that receive this notification
have 30 days to tell the agency they wish to accept.
Hundreds of credit unions around the country have indicated
an interest in securing the low-income designation, but the
30-day acceptance deadline in NCUA’s current regulations
could be an unnecessary obstacle for some. To address this
situation, the Board approved a proposed rule to extend that
deadline to 90 days.
“The proposed rule change is in keeping with NCUA’s
overall goal of providing regulatory relief and with the policy
of continual review of regulations to update, clarify or
simplify them,” Chairman Matz said. “This latest action is
just one of many ways NCUA is working to cut red tape and
ease regulatory burdens
through my Regulatory
Credit unions may well need more than the 30 days now in
the current regulations to respond to the notice of their
eligibility for a low-income credit union designation. Given
the potential benefits that flow from the low-income
designation, Chairman Matz said credit unions should have
sufficient time to properly assess whether to accept and
complete their internal approval processes.
Comments on the proposed rule are due by Nov. 26, 2012.
BMI Federal Credit Union Community
The Board voted to approve the application of BMI Federal
Credit Union to convert to a community charter from a
multiple common bond charter. Chartered in 1936, the
Dublin, Ohio based credit union currently has more than
27,000 members and $378.6 million in assets.
The credit union originally served the employees of the
Battelle Memorial Institute, a research and development
center. As a result of the conversion, BMI Federal Credit
Union will serve the eight counties in the Columbus MSA
with a combined population of 1. 8 million.
Board approval was required as the Columbus MSA has a
population greater than 1 million.
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US CENTRAL BRIDGE CLOSING ENDS SUCCESSFUL EFFORT TO STABILIZE INDUSTRY (FROM PAGE 4)
n Credit unions with more than $100 million in assets would
have to demonstrate access to at least one of the following
three options for a backup federal liquidity source:
– becoming a direct member of the CLF;
– becoming an indirect CLF member through a CLF
– establishing direct borrowing access to the Federal
Reserve’s Discount Window.
“Credit unions have access to everyday liquidity needs
through their balance sheet, and through correspondent
relationships such as corporates or Federal Home Loan
Banks,” Chairman Matz noted. “But in the event of another
systemic crisis, it is critical for larger credit unions to have
demonstrated access to a failsafe source of government-
backed emergency liquidity, such as NCUA’s CLF or the
Federal Reserve’s Discount Window. That’s why the NCUA
Board proposed the emergency liquidity rule.”
NCUA staff is now reviewing the 45 comments received on
the proposed emergency liquidity rule in order to develop a
recommendation for further action.
Credit union executives, managers, and directors may learn
more about the benefits of the CLF by watching a video
on NCUA’s You Tube channel at http://tinyurl.com/9ly9zn4.
For information about how to join the CLF, go to
Detailed information about the corporate resolution is also
available at http://go.usa.gov/YVa4.