Blown away: Dealing with a disaster

As Hurricane Dorian makes its way up the east coast, I have decided to dedicate today’s blog to an issue many credit unions are concerned with: what to do during a hurricane or other disaster.

One important task to complete in the days leading up to or immediately after a disaster-related closure is to notify NCUA. Section 748.1 of NCUA’s rules and regulations requires all federally-insured credit unions to notify the regional director within 5 business days of the disaster. A disaster is any event that causes physical damage to the credit union or is expected to cause an interruption in vital member services projected to last more than two consecutive business days. Vital member services include account inquiries, withdrawals and deposits and loan payments and disbursements. For many credit unions, one or more of these services may be affected by an office closure due to a hurricane.

NCUA has explained that it expects credit unions to have procedures in place to be able to communicate with NCUA about disasters affecting the credit union. NCUA has emphasized that its field staff need the following information from the credit union in the case of a disaster-related closure:

 

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