ALEXANDRIA, Va. (6/13/14)--Voluntary liquidations will be among the topics at the National Credit Union Administration's June meeting, set for 10 a.m. (ET) Thursday.
The board will consider the final rule update for voluntary liquidations, which details the process that federally insured credit unions must follow should they choose to liquidate.
The Credit Union National Association submitted a comment letter on the voluntary liquidation proposal in May, where it expressed general agreement with the NCUA's efforts to update the rule, while emphasizing clear reinforcement within the rule that liquidation of a credit union is a "drastic step."
"We recognize that a small number of credit unions may choose to liquidate but we urge NCUA to add language to the rule requiring agency staff to work with a credit union considering such an option to find ways to either continue operation or merge with another credit union, in order to ensure members will continue to have access to a credit union if at all possible," the letter reads.
The voluntary liquidation rule was last updated by the NCUA in 1993.
Other items to be discussed include proposed rules and regulations for asset securitization, safe harbor and appraisals.
The board will also hear a request from Mainstreet CU, Lenexa, Kan., with $355 million in assets, that has requested to convert to a federal charter from a state charter.