The NCUA Board Thursday unanimously approved a proposed rule related to subordinated debt, amending the definition of “grandfathered secondary capital” to include secondary capital issued to the U.S. Government or one of its subdivisions under an application approved before Jan. 1, 2022.
The proposal aims to benefit low-income credit unions (LICUs) participating in the Treasury Department’s Emergency Capital Investment Program (ECIP) or other programs, provided that the funds are not received by Dec. 31, 2021. NAFCU is supportive of the NCUA providing clarity on the treatment of ECIP funds for LICUs with pending secondary capital applications.
In addition, the Board also unanimously approved the mid-session budget revisions to reprogram budgeted funds for additional cybersecurity and ethics counsel positions, as well as funds for employee relocations, and more. In August, NAFCU called on the NCUA to schedule its customary mid-session budget review and increase financial transparency.
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