NCUA activates disaster relief policy
NCUA Board Chairman Debbie Matz activated the agency’s disaster relief policy to help credit unions and their members rebuild and recover from last week’s storms, which killed at least 350 people and caused $2 billion to $5 billion in insured losses.
Under the agency’s disaster assistance policy, NCUA will, where necessary:
- Encourage credit unions to make loans with special terms and reduced documentation to affected members;
- Reschedule routine examinations of affected credit unions;
- Guarantee lines of credit for credit unions through the National Credit Union Share Insurance Fund; and
- Make loans to meet the liquidity needs of member credit unions through the Central Liquidity Facility.
During disaster conditions, according to the agency, NCUA personnel operate under three priorities: Ensure the safety of credit union staff, keep facilities and operations available to members, and provide material and technical assistance, as needed, to affected credit unions.
Federal credit unions may also provide assistance to other credit unions and nonmembers in the affected areas, under certain conditions:
- A federal credit union may provide services to persons who are members of another credit union under their correspondent services authority.
- Emergency financial services for nonmembers—including check cashing, access to ATM networks, or other services to meet short-term emergency needs—can be provided under the authority to engage in charitable activities.
- Federal credit unions providing services on a charitable basis may not impose charges for services that exceed their direct costs.
Credit unions and credit union members needing help because of last week’s storms may contact NCUA’s Region III office in Atlanta at 678-443-3000 during normal business hours.