NCUA Compliance Deadline: Public Unit and Nonmember Shares
NCUA’s current regulations limit the total amount of nonmember shares a federally insured credit union may have to 50 percent of the credit union's total paid-in and unimpaired capital and surplus (not counting any public unit and nonmember shares), or $3 million, whichever is greater. This final rule eliminates the option of seeking a waiver in exchange for a higher limit and changes the way the limit is measured, however, it retains the alternative $3 million limit. The rule requires a federally insured credit union to develop and maintain a written plan if its public unit and nonmember shares, taken together with borrowings, exceed 70 percent of paid-in and unimpaired capital and surplus. NCUA does not require the plans to be submitted to the agency for prior approval. The rule also makes conforming amendments to NCUA’s rules for insurance (specifically, 12 CFR § 741.204), which applies to all federally insured credit unions, to reflect the new 50 percent limit and other requirements.
Final Regulation – 19-EF-18
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