NCUA Flashcards
What are the 3 parts of the FCU Act?
- General Provisions
- Share Insurance
- Central Liquidity Facility
True or False? Federal Credit Unions are subject to federal income tax.
False
IRPS
Interpretive Ruling and Policy Statement
How often must a federally insured credit union file a Call Report?
Quarterly
Name 4 NCUA action steps
- Findings
- Document of Resolution
- Letter of Understanding and Agreement
- Cease and Desist
- CMP (Civil Money Penalties)
- Conservatorship
- Liquidation
- For State CUs - Special Reserves & Cancellation of Insurance
How much Share Insurance does an individual member owned account have?
$250,000
How much Share Insurance does a joint member account have?
$500,000
Where must NCUA signs be located?
Main office, branch offices at each teller station, and website.
True or False? A CU board must have an odd number of members.
True
What is the Business Judgement Rule?
Legal Doctrine that officers & directors cannot be liable for business decisions that are unprofitable or harmful if they are legal and done in good faith
How many board members can be compensated for board duties?
One
What are the three fields of membership?
- Single Common Bond
- Multiple Common Bond
- Community
How many board members can serve on the Supervisory/audit Committee?
1
How many members can the Supervisory/Audit Committee have?
3-5
True of False. The Supervisory/Audit Committee creates credit union policy and ensures it’s followed.
False
CUSO
Credit Union Service Organization
True or False? A CUSO is subject to taxation.
True
What 3 circumstances does the Central Liquidity Facility address?
- Short term lending
- Seasonal credit
- Emergency (Adjustment credit)
UBIT
Unrelated Business Income Tax
What is a Call Report?
Quarterly report that all federally insured credit unions are required to file with their financial statistical data
What is a Financial Performance Report?
A report derived from the call report data providing CUs a 5 year review and showing how other CUs are performing
What taxes are FCUs subject to under the FCU Act?
Subject to Real Estate property taxes and personal property taxes like other businesses, but are exempt from Federal and State income taxes and franchise taxes
What tax are state chartered credit unions subject to that FCUs are not?
UBIT - Unrelated Business Income Tax
NCUA rules and regulations
NCUA directives that govern a particular topic and have a substantial impact on cu operations
Interpretive Rulings and Policy Statements (IRPS)
Provide NCUA interpretations on what a law means on a particular subject generally requiring credit unions to comply and follow.
Interpretive Rulings and Policy Statements (IRPS)
Provide NCUA interpretations on what a law means on a particular subject generally requiring credit unions to comply and follow.
Capital Assets Management Earnings and Liquidity (CAMEL) rating
Risk rating from NCUA. Higher the number, the higher the risk!
Capital Assets Management Earnings and Liquidity (CAMEL) rating
Risk rating from NCUA. Higher the number, the higher the risk!
Letters to Credit Unions
Issued by NCUA board to clarify info about a specific regulation, express concern about cu compliance, issue warnings, or announce rule changes
Letters to Credit Unions
Issued by NCUA board to clarify info about a specific regulation, express concern about cu compliance, issue warnings, or announce rule changes
Regulatory Alerts
Advise Federally insured credit unions about regulatory changes
Regulatory Alerts
Advise Federally insured credit unions about regulatory changes
Legal Opinion Letters
Written responses to inquiries made to NCUA representing their legal staff’s interpretation of the law and regulations that are posted on the NCUA website
What is a final regulation?
Issued after an official notice and comment period of 30-120 days giving CUs at least 30 days before compliance is mandatory.
What is an interim final regulation?
Issued because of a pressing agency concern such as safety or soundness problem or a new law
What percentage of a credit union’s insured shares are required to be on deposit with the NCUSIF?
1%
What are the 3 eligibility requirements for FCU board membership?
- Must be a member of the CU
- Cannot have been convicted of a crime involving dishonesty or breach of trust
- Minimum age requirement as set in the board bylaws
What is the one committee that a FCU must maintain?
Supervisory Committee
Can a credit union’s CEO serve on the board of directors?
Yes
What are permissible investments for credit unions?
CDs, low risk bonds, CMOs, loans to members
NCUA definition of immediate family
Spouse, child, parent, grandparents, grandchild (includes step)
What is form 4015?
Used to add a group with more than 5k ppl to a CU’s field of membership
What is form 4015-A?
Used for adding a group of 3-5k ppl to a CU’s field of membership
What is form 4015-EZ?
Used for adding a group with less than 3k ppl to a CU’s field of membership
