NCUA releases RBC legal opinion

first_imgby: Nicholas BallasyThe Federal Credit Union Act provides the NCUA with the “interpretive flexibility” to implement a two-tier risk-based net worth system, according to the legal opinion of the law firm Paul Hastings LLP.Section 216 of the Federal Credit Union Act is “at best, ambiguous with respect to the statutory authority of the NCUA to implement a two-tier RBNW [risk-based net worth] requirement for complex credit unions, as the language can be interpreted in multiple ways,” the opinion said.According to the firm’s opinion, section 2016 “does not prevent NCUA from imposing higher requirements on ‘well-capitalized’ credit unions to provide greater protection against risks” and does not show “congressional intent to preclude the NCUA from implementing different RBNW requirements for different capital categories.” continue reading » ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img