February 20, 2014

Voluntary liquidation rule update proposed

NCUA is taking comments for 60 days on a proposal that would update the agency's regulations on voluntary liquidation, which has occurred about twice a year over the past five years.

The proposal, which NCUA says is aimed at reducing regulatory burden, would:

  • allow liquidating federal credit unions to publish required creditor notices in electronic media or newspapers of general interest;
  • increase the asset-size threshold triggering a requirement for multiple-creditor notices; and
  • revise rules governing distributions to members.

The comment period will run for 60 days following its publication in the Federal Register. NAFCU will prepare a Regulatory Alert seeking members' input.