Regulatory Comment Calls & a Final Rule Analysis

CUNA
August 19, 2010 | COMMENTS

COMMENT CALLS:

NCUA Proposed Rule on Golden Parachute and Indemnification Payments

The National Credit Union Administration (NCUA) Board has issued a proposed rule for comments on prohibited golden parachute and indemnification payments for all federally insured credit unions (FICUs), including both natural person and corporate credit unions.  Under the proposed rule, FICUs, regardless of their financial condition, may not make indemnification payments to an institution-affiliated party (IAP) for legal and other professional expenses in administrative and civil proceedings by NCUA or a state regulatory agency where the IAP is assessed a civil money penalty, removed from office or made subject to a cease and desist order.  IAPs are defined under section 206(r) of the Federal Credit Union Act (FCU Act) and include a committee member, director, officer, or employee of or agent for an insured credit union and certain consultants and independent contractors that have knowingly violated a law or regulation and caused a financial loss to the credit union.

In addition, FICUs may not generally make golden parachute payments to an IAP if the FICU is: insolvent, in conservatorship, rated CAMEL 4 or 5, or in an otherwise troubled condition.  A credit union that has received assistance under sections 208 or 216 of the FCU Act would be considered in a ‘‘troubled condition.'' 

> View Full Comment Call at CUNA.org

Interim Final Rule: Low-Income Definition

The National Credit Union Administration recently adopted an interim final rule.  NCUA amended the definition of "low-income members" to clarify that, in determining a credit union's low-income designation, the comparison of credit union data (whether individual or family data) must utilize statistical data in the same category.  This means, for example, an individual's income must be compared to median individual income and not to median family income.  Comments are due to CUNA on September 20, 2011 and due to NCUA on October 4, 2011.

> View Full Comment Call at CUNA.org

NCUA Interim Final Rule Clarifies Regulation DD Overdraft Protection Rules

The National Credit Union Administration has issued an interim final rule that clarifies the recent final rules amending Regulation DD, the Truth in Savings Act, that changed the disclosure requirements for overdraft protection plans.

> View Full Comment Call at CUNA.org

Interim Final Rule that Extends the Effective Date for Certain Provisions of the CARD Act Gift Card Rules

The Federal Reserve Board has issued an interim final rule that implements an amendment to the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (CARD Act) that was signed by President Obama on July 27, 2010.  This amendment delays the August 22, 2010 effective date of certain provisions of the CARD Act rules that impose restrictions on the fees and expiration dates for gift certificates, store gift cards, and general-use prepaid cards.

> View Full Comment Call at CUNA.org

FINAL RULE ANALYSIS:

Fed Adjusts the Amount of Mortgage Fees that Trigger Additional Disclosures Under Truth in Lending

The Federal Reserve Board has announced its annual adjustment of the dollar amount of points and fees that trigger additional disclosures and prohibitions under the Truth in Lending Act for certain mortgage loans.  The dollar amount will be adjusted from $579 for 2010 to $592 for 2011, which is based on the Consumer Price Index.  More info:

> View Full Final Rule Analysis at CUNA.org

 

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