Tuesday, February 14, 2012 10:31:00 AM
WASHINGTON – CUNA and state leagues today launched a nationwide Call-to-Action in support of bi-partisan supplemental capital legislation introduced last week.
The Capital Access for Small Business & Jobs Act (H.R. 3993) would permit NCUA to allow credit unions to accept other forms of capital, provided that it does not alter the cooperative ownership structure of credit unions. The legislation requires that this capital be uninsured and subordinate to other claims against the credit union, including those of creditors, shareholders, and the NCUSIF. The bill authorizes the NCUA to set maturity limits on this capital and restricts the ability to raise supplemental capital to credit unions which are “sufficiently capitalized and well managed.”
The legislation has the support of both CUNA and NAFCU.
“We believe this legislation will provide credit unions with the appropriate ability to raise capital from sources other than retained earnings without violating the one member, one vote principal,” said NJCUL President/CEO Paul Gentile. “This legislation will enhance the safety and soundness of credit unions by developing a supplemental cushion, which would reduce risk to the NCUSIF,” he continued.
Credit union professionals and volunteers are asked to visit the Supplemental Capital Action Alert Web page where they can send a pre-drafted email encouraging their congressman to support this legislation.