ALEXANDRIA, Va. (9/23/11)—The National Credit Union Administration (NCUA) expanded the authority of its Office of Corporate Credit Unions (OCCU) director by adding seven new items to the list of actions that its director may approve or disapprove. The new authority is tied to the agency’s corporate credit union rule changes that were made in September 2010. Specifically, the changes relate to prompt corrective action notices and a corporates treatment of capital. Under the new rule, approved unanimously by the board during Thursday’s open board meeting, the OCCU director will be allowed to approve or disapprove a given corporate credit union’s retained earnings accumulation plan and whether a corporate credit union may release non-perpetual capital accounts (NCAs) to facilitate the payout of shares in a liquidation. The OCCU director will also have the ability to approve or disapprove a corporate’s establishment of individual minimum capital requirements and any actions it wishes to take regarding capital restoration plans. According to the NCUA, the director will also have authority over:
* Whether a corporate credit union may redeem NCAs before they reach maturity or before the end of the notice period; * Whether a corporate credit union may release perpetual contributed capital (PCC) instruments to facilitate the payout of shares in a liquidation; and * Whether a corporate credit union may call PCC instruments.
The NCUA said these changes would “enhance the effectiveness” of its corporate credit union rule, increase the timeliness of OCCU responses, and reduce the regulatory burden for credit unions. For more on the NCUA meeting, use the resource link.