Friday, September 23, 2011 12:27:00 PM
ALEXANDRIA Va. - At its monthly board meeting yesterday, the NCUA Board approved a final rule, approved delegation of authority to the Director of the Office of Corporate Credit Unions, and reviewed the National Credit Union Share Insurance Fund (NCUSIF) and Temporary Corporate Credit Union Stabilization Fund (Stabilization Fund) reports.
The main item of interest is the agency's final rule on the net worth and equity ratio definitions. CUNA strongly opposed a provision of the rule that will require deduction of any "bargain purchase gain" from the net worth of the target credit union prior to a merger.
The Board also reviewed reports on the NCUSIF and the Stabilization Fund. The Board did not review in detail the issue of whether the NCUSIF is over-reserved. However, as indicated in CUNA's summary, there was a discussion of the disposition of funds at the end of the year if the NCUSIF has exceeded the normal operating level of 1.3%.
A summary of the board meeting is available on the League Web site. This aspect of the site is limited to members only and requires a loin. To register for a login, click "Register" in the upper hand corner.