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A proposed rule on the way equity distributions from the National Credit Union Share Insurance Fund are calculated and paid is out for comment until Sept. 5.

The proposal, released Thursday by the NCUA Board, would revise the method for calculating a federally-insured credit union's proportionate share of a declared NCUSIF equity distribution and clearly state that method in the regulations.

There is also a temporary provision in the proposal addressing distributions resulting from the agency's Corporate System Resolution Program: it would ensure that insured credit unions that paid corporate stabilization assessments are paid first when distributions are related to the agency's corporate resolution program. (Also Thursday, the board released a proposal for closing the corporate stabilization fund this year and merging it into the NCUSIF; read more.)

The proposed rule would also bar an insured credit union that terminates NCUSIF coverage during the calendar year from receiving an equity distribution for that year.

NAFCU is preparing a Regulatory Alert seeking members' input.