CUNA has notified the Senate Banking Committee that the financial recovery of credit unions affected by this year's hurricanes, as well as assistance from other credit unions, will be "significantly limited" by current restraints imposed by PCA rules, and is calling on the committee to take action on legislation that would ease the restraints.
In a letter to Sen. Richard Shelby (R-AL), CUNA President Dan Mica called for "swift action" on H.R. 4146, The Hurricane Rita and Katrina Financial Services Act. Mica said that Section 6 of the Hurricane Katrina Act would provide NCUA with the ability to exercise forbearance on a case-by-case basis with respect to undercapitalized institutions, if the reduction in net worth or capital was directly caused by Hurricane Katrina and if the forbearance would facilitate recovery for a period of 18 months. CUNA is also urging the committee to give "serious consideration" to permanently extending the forbearance authority, the association said.
