NCUA Drops ABA-Opposed Equitable Sharing of TCCUSF Expense Provision

The NCUA Board on Thursday dropped an ABA-opposed amendment on the equitable sharing of the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) expense from its final corporate credit union rule. If the proposal had been adopted, it would have shifted a portion of the TCCUSF’s cost from federally insured to non-federally insured corporate members.

Under the proposal, the NCUA Board would ask non-federally insured corporate members to make voluntary payments to the TCCUSF when the board assessed a fund premium on federally insured corporate members. If a non-federally insured member declined to make the requested payment, or made a payment for a lesser amount, the corporate credit union would hold a vote on whether to expel the member.

ABA argued that 1) the TCCUSF’s creation directly benefited the National Credit Union Share Insurance Fund and federally insured credit unions, not non-federally insured credit unions; 2) the proposed amendment exceeds the NCUA’s statutory authority; and 3) the proposed payment by non-federally insured credit unions to the TCCUSF is neither a gift, nor is it voluntary.