CUCE - NCUA RULES AND REGULATIONS NEW
UPDATE WITH COMPLETE SOLUTION
UBIT - Answer - Unrelated Business Income Tax
Federal credit unions are subject to what kind of federal, state, or local taxes under the
Federal credit Union Act? - Answer - Federal credit unions are exempt from federal and
state income taxes in franchise taxes but are subject to the same real property taxes and
personal property taxes that are imposed other businesses.
The central liquidity facility was established to address the economic conditions of the
1970s in to lend money to credit unions under certain circumstances. What are the three
circumstances listed in the book? - Answer - Short term adjustment credit to help meet
temporary requirements for funds; seasonal credit to help me seasonal needs for funds;
and protracted adjustment Credit to help me needs in unusual or emergency
circumstances of long-term nature.
Because state-charted credit unions are not "federal instrumentalities" what tax are
subject to the federal chartered credit unions or not? - Answer - Unrelated business
income tax
NCUA rules and regulations - Answer - NCUA directives that govern a particular topic
and have a substantial impact on credit union operations.
Letters to credit unions - Answer - Issued by the NCUA board to provide clarifying
information about a specific regulation, expressed concern about credit union compliance,
issue warnings, or announce changes in accounting rules, operating fee assessment or
examination procedures and generally sent to all federally insured credit unions.
Interpretive rulings in policy statements - Answer - Provide NCUA interpretations and
what a law means and a particular subject generally requiring credit unions to comply and
follow the guidance provided in them.
Regulatory alerts - Answer - Advise federally insured credit unions about regulatory
changes affecting their compliance requirements.
Legal opinion letters - Answer - Written responses to inquiries made to the NCUA
representing their legal staff's interpretation of the law and regulations that are posted
and the NCUA website not sent directly to the credit unions.
, Federal credit union act gives a NCUA authority to issue regulations another guidance to
direct operations of federal credit unions in federally insured state-chartered credit unions.
What is the difference between a "final regulation" and an "interim final regulation"? -
Answer - A "final regulation" is issued after an official "notice and comment period" of 30
days to 120 days giving credit unions at least 30 days before compliance is mandatory.
An "interim final regulation" is issued because of the pressing agency concern such a
safety or sound problem or the entactment of a new law.
If a state-charted credit union has federal share insurance, NCUA has the right to examine
the credit union, but in most cases Relies on the state regulator to actually do the
examination. True or False? - Answer - True
What is the difference between a "call report" in a "financial performance report"? -
Answer - Call reports - the financial and statistical report - NCUA requires all federal
insured credit unions to submit a summary of the financial statistical data quarterly.
Financial performance report - a report drawn from the call report data providing credit
unions a five year review of the data showing how the credit union's peers are performing.
Letters of understanding and agreement - Answer - Agreements between the credit union
and the regulator that require the credit union to take specific corrective action.
Cease and desist order - Answer - Prohibits a credit union from engaging in an activity
described in the order and/or requires a correction of a condition resulting from a violation.
Removal and prohibition orders - Answer - An order to remove a credit Union board
member or employee after a notice and hearing and an order to ban credit union officials
and employees as well as affiliated parties from serving or being employed by any
federally insured financial institution.
Civil Money Penalties - Answer - A three-tier penalty program against federally insured
credit unions or institution-affiliated party ranging from $5000 to $1 million a day.
Conservatorship - Answer - The NCUA board takes immediate control of a federally
insured credit union with no notice or hearing required.
Order for special reserves - Answer - The NCUA board requires a federal or federally
insured state-chartered credit union to maintain special reserves to protect the interest of
the members.
UPDATE WITH COMPLETE SOLUTION
UBIT - Answer - Unrelated Business Income Tax
Federal credit unions are subject to what kind of federal, state, or local taxes under the
Federal credit Union Act? - Answer - Federal credit unions are exempt from federal and
state income taxes in franchise taxes but are subject to the same real property taxes and
personal property taxes that are imposed other businesses.
The central liquidity facility was established to address the economic conditions of the
1970s in to lend money to credit unions under certain circumstances. What are the three
circumstances listed in the book? - Answer - Short term adjustment credit to help meet
temporary requirements for funds; seasonal credit to help me seasonal needs for funds;
and protracted adjustment Credit to help me needs in unusual or emergency
circumstances of long-term nature.
Because state-charted credit unions are not "federal instrumentalities" what tax are
subject to the federal chartered credit unions or not? - Answer - Unrelated business
income tax
NCUA rules and regulations - Answer - NCUA directives that govern a particular topic
and have a substantial impact on credit union operations.
Letters to credit unions - Answer - Issued by the NCUA board to provide clarifying
information about a specific regulation, expressed concern about credit union compliance,
issue warnings, or announce changes in accounting rules, operating fee assessment or
examination procedures and generally sent to all federally insured credit unions.
Interpretive rulings in policy statements - Answer - Provide NCUA interpretations and
what a law means and a particular subject generally requiring credit unions to comply and
follow the guidance provided in them.
Regulatory alerts - Answer - Advise federally insured credit unions about regulatory
changes affecting their compliance requirements.
Legal opinion letters - Answer - Written responses to inquiries made to the NCUA
representing their legal staff's interpretation of the law and regulations that are posted
and the NCUA website not sent directly to the credit unions.
, Federal credit union act gives a NCUA authority to issue regulations another guidance to
direct operations of federal credit unions in federally insured state-chartered credit unions.
What is the difference between a "final regulation" and an "interim final regulation"? -
Answer - A "final regulation" is issued after an official "notice and comment period" of 30
days to 120 days giving credit unions at least 30 days before compliance is mandatory.
An "interim final regulation" is issued because of the pressing agency concern such a
safety or sound problem or the entactment of a new law.
If a state-charted credit union has federal share insurance, NCUA has the right to examine
the credit union, but in most cases Relies on the state regulator to actually do the
examination. True or False? - Answer - True
What is the difference between a "call report" in a "financial performance report"? -
Answer - Call reports - the financial and statistical report - NCUA requires all federal
insured credit unions to submit a summary of the financial statistical data quarterly.
Financial performance report - a report drawn from the call report data providing credit
unions a five year review of the data showing how the credit union's peers are performing.
Letters of understanding and agreement - Answer - Agreements between the credit union
and the regulator that require the credit union to take specific corrective action.
Cease and desist order - Answer - Prohibits a credit union from engaging in an activity
described in the order and/or requires a correction of a condition resulting from a violation.
Removal and prohibition orders - Answer - An order to remove a credit Union board
member or employee after a notice and hearing and an order to ban credit union officials
and employees as well as affiliated parties from serving or being employed by any
federally insured financial institution.
Civil Money Penalties - Answer - A three-tier penalty program against federally insured
credit unions or institution-affiliated party ranging from $5000 to $1 million a day.
Conservatorship - Answer - The NCUA board takes immediate control of a federally
insured credit union with no notice or hearing required.
Order for special reserves - Answer - The NCUA board requires a federal or federally
insured state-chartered credit union to maintain special reserves to protect the interest of
the members.
