Home | Money News | Archives | Contact Us

Search This Site:

Home | Contact Us | News Archives | Resources

NCUA Expands Disaster Relief

ALEXANDRIA, Va. (June 30, 2011) – With severe weather and flooding affecting areas of Montana, Nebraska, Indiana, Kansas and Iowa, National Credit Union Administration (NCUA) Board Chairman Debbie Matz expanded the agency’s disaster relief policy to assist credit unions and their members in dealing with local recovery efforts.
President Barack H. Obama has declared that a major disaster exists in the listed states and ordered federal aid to supplement state efforts. The President’s actions make federal funding available for counties named in White House releases.
The North Dakota flooding, currently receiving widespread news coverage, and reportedly affecting local credit unions, is covered by a similar announcement from May: http://www.ncua.gov/news/press_releases/2011/MR11-0511MoTnNDMnDisasterResponse.pdf
Under the agency’s disaster assistance policy in relation to communities covered by a presidential disaster declaration, NCUA will, where necessary:
 Encourage credit unions to make loans with special terms and reduced documentation to affected members;
 Reschedule routine examinations of affected credit unions if necessary;
 Guarantee lines of credit for credit unions through the National Credit Union Share Insurance Fund; and
 Make loans to meet the liquidity needs of member credit unions through the Central Liquidity Facility.
As part of its disaster response, NCUA examiners will survey credit unions operating in flood and storm affected counties. Most credit unions remain open, operating business as usual, although some credit union branches affected may have curtailed hours or services.
During natural disasters, NCUA works with individual state league organizations and state regulators to ensure all federally insured credit unions know of NCUA’s available assistance. The agency’s examiners will therefore remain in close contact with the affected local credit unions to offer advice and assistance. During disaster conditions, NCUA personnel operate under three priorities:
 Ensure the safety of credit union staff;
 Keep facilities and operations available to members; and
Page 2
NCUA Media Release – Continued
NCUA Expands Disaster Relief…
“Protecting credit unions and the consumers who own them through effective regulation.”
 Provide material and technical assistance, as needed, to affected credit unions.
- MORE -
Federal credit unions may also provide assistance to other credit unions and non-members in the affected areas, under certain conditions:
 A federal credit union may provide services to persons who are members of another credit union under their correspondent services authority.
 Emergency financial services for non-members, including check cashing, access to ATM networks, or other services to meet short-term emergency needs of individuals in the areas affected by the storms, can be provided under the authority to engage in charitable activities.
 Federal credit unions providing services on a charitable basis may not impose charges for services that exceed their direct costs.
Credit unions and credit union members in Nebraska, Kansas, and Iowa needing help because of these declarations may contact NCUA’s Region IV office in Austin at (512) 342-5600 during normal business hours. Those in Indiana may contact NCUA’s Region III office in Atlanta at (678) 443-3000. Those in Montana may contact NCUA’s Region V office in Tempe, Ariz., at (602) 302-6000.
NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the U.S. Government, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 90 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.

Posted in finance | Tagged | Leave a comment