The federal regulator of credit unions is publishing a correction to its February final rule on equity distributions from the fund that insures credit union member shares (deposits), revising a reference in the text that defines define “equity ratio.”
The equity distribution rule, adopted in February by the National Credit Union Administration (NCUA) Board, is aimed at providing stakeholders more transparency regarding the calculation of each eligible credit union’s pro rata share of a declared equity distribution from the National Credit Union Share Insurance Fund (NCUSIF). The agency says the correction addresses a clerical error; the published correction revises a reference to another portion of the same rule section and is scheduled for publication Friday in the Federal Register.
The February final rule, published in the Feb. 23 Federal Register, also includes temporary provisions related to distributions from funds transferred to the NCUSIF with last year’s closure of the Temporary Corporate Credit Union Stabilization Fund (TCCUSF). The stabilization fund was created to resolve troubled “corporate” credit unions affected by the economic turndown in the late 2000s.
The final rule on equity distributions took effect March 26, and the temporary provisions (section 741.13) expire Dec. 31, 2022.