CUNA Regulatory Comment Call


June 18, 2001

Proposal Concerning Definitions and Technical Amendments In Various NCUA Rules

(NOT A MAJOR RULE)

EXECUTIVE SUMMARY

The NCUA Board has issued for public comment a proposal that amends various rules to make technical corrections and add and revise certain definitions. NCUA has a policy of continually reviewing its regulations to determine whether they should be updated, clarified, simplified, or eliminated. Every year, NCUA examines one-third of its regulations as part of this annual rule review process. In its most recent review, NCUA has identified the following provisions as requiring revision:

Comments on the proposed rule are due to NCUA by August 20, 2001. Please submit your comments to CUNA by August 8, 2001. Please feel free to fax your responses to CUNA at 202-371-8240; e-mail them to Associate General Counsel Mary Dunn at mdunn@cuna.com or to Senior Regulatory Counsel Catherine Orr at corr@cuna.com; or mail them to Mary or Catherine in c/o CUNA’s Regulatory Advocacy Department, 805 15th Street, NW, Suite 300, Washington, DC 20005. You may also contact us if you would like a copy of the rules.

QUESTIONS REGARDING THE PROPOSAL

  1. Do you agree with the proposed definition of “paid-in and unimpaired capital and surplus" as shares plus post-closing, undivided earnings?









  2. Do you agree that “unimpaired capital and surplus" should be defined to mean the same as “paid-in and unimpaired capital and surplus”?









  3. The Board believes adding the statement that “This [“paid-in and unimpaired capital and surplus”] does not include regular reserves or special reserves required by law, regulation, or special agreement between the credit union and its regulator or share insurer” will lessen possible confusion by distinguishing between “retained earnings” in the PCA Rule, which includes regular and special reserves and “undivided earnings”, which do not include them. Do you agree with the addition of this statement?









  4. Do you agree that the reference in the Member Business Loan Rule from “federally insured credit unions” should be changed to “federally insured state-chartered credit unions”?









  5. Other comments?









Eric Richard • General Counsel • (202) 508-6742 • erichard@cuna.com
Mary Mitchell Dunn • SVP & Associate General Counsel • (202) 508-6736 • mdunn@cuna.com
Jeffrey Bloch • Assistant General Counsel • (202) 508-6732 • jbloch@cuna.com
Catherine Orr • Senior Regulatory Counsel • (202) 508-6743 • corr@cuna.com