For those credit unions interested in a better understanding of the
NCUA proposal for voluntary prepayment of the corporate stabilization prepayment plan, CUNA has developed a question and answer document that looks at the key elements. The Q&A is designed to help credit union officials understand the proposal and assess whether they want to take part in NCUA's proposed prepayment plan.
The NCUA's plan, which would allow most credit unions to voluntarily prepay up to 36 basis points (bp) of their assessments, was released at the May 19 NCUA board meeting. The plan is not mandatory, but, legally speaking, all federally insured credit unions may participate. However, NCUA noted that 6,023 credit unions have more than $2.8 million in assets and could be able to take part in the plan.
The NCUA said credit unions would need to advance the minimum amount of $10,000 to participate in the plan, and that it would not move forward with the plan if credit unions do not commit a combined $300 million in funds to the proposal. Credit unions that wish to take part in the prepayment program can pledge their desired amount to the NCUA, and the agency would then process a direct debit from those credit union accounts.
You can see the Q&A by visiting the
LSCU Regulatory Resources website. This page also houses a summary of the May 19 NCUA board meeting where the proposal was discussed. Plus there is a link within the summary to comment on the prepayment proposal.
For more information on the proposal, contact LSCU VP, Regulatory Affairs
Bill Berg at 866.231.0545 ext. 1028 or Director, Compliance
Scott Morris at ext. 2165.