Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
NCUA guides California CUs on IOUs
ALEXANDRIA, Va. (7/24/09)--The National Credit Union Administration (NCUA) has issued guidance for California credit unions accepting IOUs, or registered warrants, during the state’s budget crisis. On Monday, Calif. Gov. Arnold Schwarzenegger and state lawmakers reached an agreement to balance the state’s $26 billion deficit by making cuts throughout state government. However, details regarding the budget are still being negotiated (News Now July 22). Roughly 90 California credit unions are still accepting registered warrants issued by the state. According to NCUA:
* A federal credit union should not treat its acceptance of a warrant from a member as an investment but may treat its acceptance of a warrant as a collection item, deposit or loan depending on whether the credit union has extended credit to a member and the disclosures or other documentation it has provided to members; * A credit union should inform members of the charge back and collection rights the credit union may have if it extends credit in accepting the warrant; * Federal credit unions are not restricted in the type of collateral they can hold as security for payment of an extension of credit; * State-chartered credit unions are advised that if they choose to record the warrants as a credit union investment, they will have to reserve for a nonconforming investment under NCUA’s investment rule.
For more information, use the link.
Other Resources

RSS print
News Now LiveWire
.@BelvoirFederal revamped the checking acct. it offers to active duty military members and achieved 23% growth on the product in 1 mo.
13 hours ago
.@FinancialCmte markup of Reg D Study Act set for Tuesday. CUNA will submit support letter. http://t.co/cDWkZ0Q0x1
17 hours ago
The 54th Western CUNA Management School graduated 89 students on July 25.
17 hours ago
.@CUNA Bank Secrecy Act training to reach 38 Mich. state examiners #NewsNow http://t.co/7HDPgwih8G
18 hours ago
St. Louis treasurer taps #creditunion to serve unbanked #NewsNow http://t.co/lWtcezJOej
7 25 ago