ALEXANDRIA, Va. (6/18/08)—Responding to an unusual rash of violent weather, the National Credit Union Administration (NCUA)--for the second time in a week—has activated its disaster relief policy to assist credit unions and their members affected by storms, flooding, and tornadoes. In an announcement Tuesday, the NCUA noted that President George W. Bush has declared an emergency exists in the Wisconsin counties of Columbia, Crawford, Milwaukee, Sauk, and Vernon. The NCUA said its disaster policies now apply to those areas. Late last week, the agency invoked its disaster relief rules for Indiana and Iowa, two states also struggling to recover from weather-related disasters. Under its disaster assistance policy, NCUA announced it will, where necessary:
* Encourage credit unions to make loans with special terms and reduced documentation to affected members; * Reschedule routine examinations of affected credit unions if necessary; * Guarantee lines of credit for credit unions through the National Credit Union Share Insurance Fund; and * Make loans to meet the liquidity needs of member credit unions through the Central Liquidity Facility.
The NCUA announcement noted that the agency is working with the Wisconsin state credit union regulator to make certain that all state-chartered, federally insured credit unions in the affected areas are aware of NCUA’s available assistance. Also, NCUA regional examiners are closely monitoring the situation in concert with Wisconsin officials and will provide assistance as requested or needed. During disaster conditions, NCUA personnel operate under three priorities:
* Determine the safety of credit union staff and operational condition of credit unions; * Provide needed material and technical assistance to affected credit unions; and. * Return credit unions to normal operations as quickly as possible.