A new chartering proof of concept tool that prospective credit union organizers can use to get the federal regulator’s feedback on how well they satisfy the requirements for chartering a credit union was launched Friday by the National Credit Union Administration (NCUA).
The tool, on which comments were sought earlier this year through a proposed notice of information collection, is an automated system that will help organizers better understand the charter application process, and requirements, by allowing the NCUA’s Office of Credit Union Resources and Expansion (CURE) to preview the information to be included in an application.
Organizers will use the tool to evaluate how well they meet the requirements for starting a credit union by reviewing the four critical application elements: purpose and core values, field of membership, capital, and subscribers.
NCUA says the CURE office will evaluate and score submissions on how adequately the organizers address each critical element. “CURE will invite groups that achieve a minimum score of 80 out of 100 to submit a formal charter application,” the agency said. Groups that do not achieve that minimum score will advise them to either provide additional information or consider alternatives.