Press

ALEXANDRIA, VA (May 8, 2014) — The National Credit Union Administration continues to monitor the situation in areas of the South and Midwest struck by recent tornadoes and flooding, and the agency has taken several actions to assist credit unions in response to the disaster.

Four credit unions in areas affected by the storms and flooding temporarily curtailed operations, but all are now conducting normal business services.

NCUA’s Atlanta-based Region III office activated its regional emergency response plan on April 28, including accounting for all agency personnel and contacting credit unions in the affected areas to confirm operating status and offer assistance.

NCUA’s Office of Continuity and Security Management is coordinating information sharing on the disaster recovery efforts among staff within the agency, as well as conducting outreach with other federal agencies.

NCUA on May 1 informed low-income credit unions they may apply for emergency assistance through the Urgent Needs Initiative for grants up to $7,500 to cover expenses related to natural disasters or other unexpected adverse events. The grants provide funds to these credit unions to repair damages or replace equipment in order to restore services to members. Low-income credit unions can obtain more information about Urgent Needs Grants or apply for a grant online here.

The Urgent Needs Initiative is funded through the Community Development Revolving Loan Fund, which Congress created to support credit unions that serve low-income communities. NCUA’s Office of Small Credit Union Initiatives administers the program.

NCUA recognizes disasters may affect the orderly conduct of lending relationships with individual members and member businesses. NCUA encourages credit unions to exercise prudent efforts to alter terms of existing loans for affected members and businesses. Actions may include extending the terms of loan payments, restructuring a borrower’s debt obligations, and easing credit terms for new loans to certain borrowers, consistent with prudent practices.

During natural disasters, NCUA works with state regulators and state league organizations to ensure all federally insured credit unions are aware of the agency’s available assistance. Agency examiners remain in close contact with credit unions affected by a disaster to offer advice and provide material and technical assistance, as needed.

• Emergency financial services for non-members, including check cashing, access to ATM networks or other services to meet short-term emergency needs of individuals in affected areas can be provided under the authority to engage in charitable activities. Federal credit unions providing services on this charitable basis may not impose charges for services that exceed their direct costs.
• A federal credit union may provide access to other credit unions that it is authorized to perform for its own members or as part of its operations. This activity is part of a federal credit union’s incidental powers, so it may impose charges for those services.

Credit unions in need of NCUA’s assistance dealing with members affected by natural disasters should contact their primary supervisory official.