NCUA’s May 2014 Report; New Merger Resource; Assessment of Fines for Late First-Quarter 2014 Call Reports
Written by Bernadette Clair, Senior Regulatory Compliance Counsel
NCUA Report. Last week, NCUA released its May 2014 report. Features in this issue include:
ChairmanâÂÂs Corner: Little-Known Facts About Risk-Based Capital
Board Actions: Proposed Associational Common Bond Rule Would Increase Clarity, Flexibility
Registration for 2014 Listening Sessions Now Open
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New Merger Resource. NCUA also released a new brochure last week entitled Truth in Mergers: A Guide for Merging Credit Unions. The brochure was prepared by NCUAâÂÂs Office of Small Credit Union Initiatives and is intended to serve as a resource to help credit unions understand merger trends, assess when merger might be necessary or in a credit unionâÂÂs best interests, and to provide guidance on negotiating a merger agreement that serves a merging credit unionâÂÂs best interests. Other resources on this topic include NCUAâÂÂs Credit Union Merger and Conversion Manual and Letter to Credit Unions 10-CU-11 regarding NCUAâÂÂs Merger and Purchase & Assumption Process.
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Assessment of Fines for Late First-Quarter 2014 Call Reports. NCUA has begun the process of assessing civil money penalties on credit unions that filed 2014 first-quarter Call Reports late. NCUAâÂÂs press release indicates credit unions that filed late can expect to receive letters describing the penalties the agency is planning to assess. NCUA states it is reviewing each late filing to determine the fine that will be assessed and to determine whether there are any mitigating factors that would warrant forbearance. Back in January 2014, NCUA issued Letter to Credit Unions 14-CU-03 warning that it would begin assessing penalties to deter late filings.