National Credit Union Administration July 2008 – Federal Register Recent Federal Regulation Documents

NCUA requests public comment on a proposed rule implementing a statutory amendment to the definition of a natural person credit union's ``net worth'' that applies solely to NCUA's system of regulatory capital standards, known as ``prompt corrective action.'' The amendment expands the definition of ``net worth'' to allow the acquiring credit union, in a merger of natural person credit unions, to include the merging credit union's retained earnings with its own to determine the acquirer's post-merger ``net worth.'' In a merger of corporate credit unions, the proposed rule similarly redefines corporate credit union capital to allow an acquiring credit union to include with its capital the retained earnings of the merging credit union to determine the acquirer's post-merger capital.