NCUA Activates Disaster Relief Policy after Colorado Flooding
(Targeted News Service Via Acquire Media NewsEdge) ALEXANDRIA, Va., Sept. 14 -- The National Credit Union Administration issued the following news release:
In the wake of the flooding in Colorado, the National Credit Union Administration has activated its disaster relief policy to help protect consumers and ensure the continuity of credit union services in affected areas.
Share deposits at federally insured credit unions remain protected up to $250,000 by the National Credit Union Share Insurance Fund. Administered by NCUA, the Share Insurance Fund is backed by the full faith and credit of the U.S. Government.
As part of the response to the flooding, NCUA examiners are surveying credit unions operating in affected areas. Some credit unions and branches in locations affected by the flooding may have curtailed hours or services. Credit union members in these areas should contact their credit unions or check their websites for the latest information.
Under the agency's disaster relief policy NCUA will, where necessary:
* Encourage credit unions to make prudent loans with special terms and reduced documentation to affected members;
* Reschedule routine examinations of affected credit unions, if necessary;
* Guarantee lines of credit for credit unions through the Share Insurance Fund; and
* Make loans to meet the liquidity needs of member credit unions through the Central Liquidity Facility.
NCUA recognizes the flooding may affect the orderly conduct of lending relationships with both individual members and member businesses. NCUA encourages credit unions to exercise prudent efforts to alter terms on existing loans for affected members and businesses. Actions may include extending the terms of loan repayments, restructuring a borrower's debt obligations, and easing credit terms for new loans to certain borrowers, consistent with prudent practices.
During natural disasters, NCUA works with state regulators and state league organizations to ensure all federally insured credit unions know of NCUA's available assistance. The agency's examiners will remain in close contact with credit unions affected by the flooding to offer advice and to provide material and technical assistance, as needed.
Federal credit unions may also provide assistance to other credit unions, their members, and non-members in the affected areas, under certain conditions:
* Emergency financial services for non-members, including check cashing, access to ATM networks or other services to meet short-term emergency needs of individuals in the affected areas can be provided under the authority to engage in charitable activities. Federal credit unions providing services on this charitable basis may not impose charges for services that exceed their direct costs.
* A federal credit union may provide services to other credit unions that it is authorized to perform for its own members or as part of its operations. This activity is part of a federal credit union's incidental powers, so it may impose charges for those services.
Credit unions in need of NCUA assistance dealing with members affected by the flooding should contact their primary supervisory official.
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