Comment Letter Writing Tips
NCUA's Risk-Based Capital (RBC) Proposal
Comment Letters Filed from New Jersey:
CUNA's Coment Letters:
02/21/12 - NJCUL Comment Letter on NCUA Proposed Rulemaking for 12 CFR Parts 701 and 741; Loan Participations; Purchase, Sale and Pledge of Eligible Obligations; Purchase of Assets and Assumption of Liabilities
11-CC-02 - NCUA Proposed Rule for Credit Union Service Organizations (CUSOs) (due September 16, 2011)
The proposed rule would require all CUSOs to file financial reports directly with NCUA and, if a federally-insured state-chartered credit union (FISCU) has invested in or made loans to the CUSO, the appropriate state supervisory authority (SSA). Any CUSO subsidiary would also have to comply with the regulation as though it were a CUSO if the rule is finalized as proposed.
In addition, the proposed rule would require FISCUs to comply with certain requirements regarding CUSOs that federal credit unions (FCUs) must currently meet, such as requiring a CUSO to agree to follow NCUA rules on accounting and allow supervisory access to its books and records, and making FISCUs subject to NCUA?s CUSO investment limitations for less than adequately capitalized credit unions.
Highlights of the CUSO proposal:
- The proposed rule would require FISCUs to comply with certain requirements regarding CUSOs that federal credit unions (FCUs) must currently meet.
- CUSOs that are owned by or borrow from FISCUs must already comply with Section 712.3(d)(3) (requiring CUSOs to provide NCUA and state regulators with "complete access to any books and of the CUSO and the ability to review CUSO internal controls ...") and Section 712.4 (requiring CUSOs and credit unions to maintain separate corporate identities) of NCUA regulations. According to the agency, this proposal is necessary because of the lack of accurate and complete financial information about CUSOs "and their potential impact on the NCUSIF." The Board also said it is concerned about undercapitalized credit unions investing in CUSOs.
- NCUA used to have statutory authority to examine CUSOs that were owned by or borrowed from FICUs under former Section 206A of the Federal Credit Union Act, 12 U.S.C. Â§ 1786a, as added by the Examination Parity and Year 2000 Readiness for Financial Institutions Act. Pub. L. No. 105-164 (1998).
- NCUA's Section 206A authorities expired on December 31, 2001. NCUA is therefore relying on its more general powers under the Act regarding safety and soundness requirements for FICUs as the statutory basis for this rule (as it did in its 2008 revisions to its CUSO regulations).
National Association of Credit Union Service Organizations' (NACUSO) sample comment letter
CUNA's analysis of the proposal
NJCUL's Explanation of the Comment Call
11-CC-01 - Voluntary Prepayment Assessment Plan proposal (due June 20, 2011)
In response to credit union industry urging, the NCUA Board has proposed to create a voluntary prepaid assessment program plan (Plan) in an effort to improve the liquidity of the Corporate Stabilization Fund and provide enhanced flexibility in setting future Stabilization Fund assessments. Key elements of the Program are as follows:
- Participation would be purely voluntary and open to all federally insured credit unions able to meet the minimum participation amount of $10,000. (NOTE: NCUA has excluded credit unions with less than $2.8 million in assets from this voluntary program);
- Liquidity would be provided to the Stabilization Fund by augmenting the 2011 and 2012 assessments from participating credit unions;
- NCUA would implement the voluntary prepaid assessment program only if a minimum aggregate amount (at least $300 million) could be raised, which would reduce mandatory assessments for all federally insured credit unions in 2011 and 2012; Beginning in 2013,
- NCUA would offset each participating credit union's future Stabilization Fund assessments with any contributions they made to the voluntary program;
- The interest rate would be zero. Participating credit unions would not receive any interest or any other form of compensation from NCUA in connection with the program;
- The program outline regarding this proposal is available at http://go.usa.gov/jVy.
11-CL-01 - Voluntary Prepayment Assessment Plan proposal (submitted June 20, 2011)