CUNA Presses For Action OnHurricane-Related Bill

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WASHINGTON - (12/13/05) CUNA has notified the Senate BankingCommittee that the financial recovery of credit unions affected bythis year‘s hurricanes, as well as assistance from othercredit unions, will be "significantly limited" by currentrestraints imposed by PCA rules, and is calling on the committee totake action on legislation that would ease the restraints. In aletter to Sen. Richard Shelby (R-AL), CUNA President Dan Micacalled for “swift action” on the H.R. 4146, TheHurricane Rita and Katrina Financial Services Act. Mica said thatSection 6 of Hurricane Katrina Act of would provide NCUA with theability to exercise forbearance on a case-by-case basis withrespect to undercapitalized institutions, if the reduction in networth or capital was directly caused by Hurricane Katrina and ifthe forbearance would facilitate recovery for a period of 18months. CUNA is also urging the committee to give "seriousconsideration" to permanently extending the forbearance authority,the association said.

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