Thursday, February 21, 2013 11:46:00 AM
ALEXANDRIA, Va. – NCUA at its monthly meeting held this morning approved final rules addressing the definition of "rural district" and Treasury Inflation Protected Securities (TIPS).
The agency approved a final rule that expands the definition of "rural district" for field of membership purposes. The new rule sets the definition at the greater of "no more than 250,000 persons or 3%" of the population of the state in which the majority of the district's persons are located. The rule will go into effect 30 days after it is published in the Federal Register.
NCUA also approved a final rule that will allow federal credit unions to purchase Treasury Inflation Protected Securities (TIPS) as a permissible investment. The agency believes that TIPS will provide an additional investment portfolio risk management tool. TIPS were not a permissible investment being that TIPS re-price their value based on changes in the CPI, which is a prohibited index for variable rate instruments.
The quarterly insurance fund report was also presented by NCUA staff at today's open meeting.