NCUA Compliance Deadline: Emergency Mergers

Final rule amends NCUA's Chartering and Field of Membership Manual to redefine "in danger of insolvency" for emergency merger purposes.

January 19, 2018

This NCUA final rule amends its Chartering and Field of Membership Manual to redefine "in danger of insolvency" for emergency mergers. NAFCU would like to highlight the following:

  • The new definition lengthens by six months the forecast horizons for two of the three net worth categories that a credit union is required to fall into over a period of time to be considered "in danger of insolvency." 
  • The rule extends the time period in which a credit union's projected net worth either renders it insolvent or drops below two percent from 24 to 30 months and from 12 to 18 months, respectively. 
  • The final rule also adds a fourth category to the three existing net worth categories to include credit unions that have been granted or received assistance under Section 208 of the Federal Credit Union Act in the preceding 15 months to a determination that the credit union is in danger of insolvency.

NAFCU Final Regulation Summary: 18-EF-01

Download the latest full Compliance Calendar, including proposed regulations, past deadlines and more.