NCUA Moves Fast To Shore Up New Corporate Rule
ALEXANDRIA, Va. – NCUA is planning to amend its new corporate credit union regulation next week–even as the ink is still drying on the new rule passed just weeks ago--by restricting credit union membership to a single corporate and providing additional sources of revenue for corporates.
The amendments will include a provision limiting a natural person credit union’s membership to one corporate, which NCUA says will prevent corporates from shopping for deposits, believed to be one of the catalysts of the corporate meltdown.
The amendments will also allow corporates to assess annual membership fees and to increase retained earnings.
They will also set internal control reporting requirements, similar to what the Sarbanes-Oxley Act required for publicly owned corporations. And they will require a recorded vote on board actions.
The amendments come just seven weeks after NCUA approved the new corporate regulations.