In the wake of the tornadoes that struck Alabama last Wednesday, National Credit Union Administration (NCUA) Board Chairman Debbie Matz activated the agency’s disaster relief policy to assist credit unions and their members in rebuilding and recovering in severely damaged areas across the southeast.
Under the agency’s disaster assistance policy, the NCUA 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
Make loans to meet the liquidity needs of member credit unions through the Central Liquidity Facility.
“Credit unions are about people helping people,” said Chairman Matz. “Credit unions should reach out to their members and assist them. For example, credit unions could offer loans with special terms like lower rates or extended maturities. NCUA also remains committed to providing material and technical assistance for storm-affected credit unions.”
After natural disasters, the NCUA works with individual state league organizations and state regulators to ensure all federally insured credit unions know of NCUA’s available assistance. The agency’s examiners have therefore remained in close contact with the affected local credit unions to offer advice and assistance. During disaster conditions, NCUA personnel operate under three priorities:
Ensure the safety of credit union staff
Keep facilities and operations available to members
Provide material and technical assistance, as needed, to affected credit unions
Federal credit unions may also provide assistance to other credit unions and non-members in the affected areas, under certain conditions:
A federal credit union may provide services to persons who are members of another credit union under their correspondent services authority
Emergency financial services for non-members, including check cashing, access to ATM networks, or other services to meet short-term emergency needs of individuals in the areas affected by the storms, can be provided under the authority to engage in charitable activities
Federal credit unions providing services on a charitable basis may not impose charges for services that exceed their direct costs
Click here to read the entire release by the NCUA.