National Credit Union Administration September 2011 – Federal Register Recent Federal Regulation Documents

On January 4, 2011, President Obama signed Senate Bill 4036 into law, which, among other things, amended the statutory definitions of ``net worth'' and ``equity ratio'' in the Federal Credit Union Act. Through this final rule, NCUA is making conforming amendments to the definition of ``net worth'' as it appears in NCUA's Prompt Corrective Action regulation and the definition of ``equity ratio'' as it appears in NCUA's Requirements for Insurance regulation. NCUA is also making technical changes in other regulations to ensure clarity and consistency in the use of the term ``net worth,'' as it is applied to federally-insured credit unions.

NCUA is issuing proposed amendments to its rule governing corporate credit unions (corporates). The proposed amendments clarify certain provisions and make some technical corrections to the rule. The amendments: delete the definition of ``daily average net risk-weighted assets,'' revise the definition of ``net assets'' to exclude Central Liquidity Facility (CLF) stock subscriptions, clarify certain requirements regarding investment action plans, clarify the weighted average life (WAL) tests, revise the consequences of WAL violations, substitute the term ``core capital'' for the phrase ``the sum of retained earnings and paid-in capital,'' correct a section heading, and correct a model form instruction.

The NCUA intends to submit the following information collection to the Office of Management and Budget (OMB) for review and clearance under the Paperwork Reduction Act of 1995 (Pub. L. 104-13, 44 U.S.C. chapter 35). This information collection is published to obtain comments from the public.