As Lousiana residents take the brunt of Hurricane Isaac's slow and damaging pace Wednesday, the NCUA announced in a release it has activated its disaster relief policy.
Under the policy, the NCUA will, if necessary, encourage loans with special terms and reduced documentation for affected members; reschedule exams for affected credit unions; guarantee lines of credit through the share insurance fund; and, make liquidity loans available through the Central Liquidity Facility.
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The regulator is also encouraging credit unions to prudently alter loan terms for affected members by extending repayment terms, restructuring loans and easing credit terms for new loans.
Credit union leaders may also assist affected residents under the authority to engage in charitable activities by providing 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.
Federal credit unions providing services on this charitable basis may not impose charges for services that exceed their direct costs, the agency said.
A federal credit union may also provide services to fellow credit unions, if those services are authorized for its own members or as part of its regular operations. Credit unions may charge for these services, because the authority is part of a federal credit union's incidental powers, the agency said.
NCUA examiners will survey credit unions operating in affected areas, the agency said. While many credit unions remain open and operating business as usual, some affected credit unions and their branches may have curtailed hours or services.
During natural disasters, NCUA recruits state regulators and league organizations to spread the word of available assistance to all federally insured credit unions. Examiners will also remain in close contact with affected credit unions to offer advice and to provide material and technical assistance, as needed.
The agency is also reminding consumers that their share deposits at federally insured credit unions remain insured up to $250,000 by the NCUSIF.
Institutions in need of hurricane related assistance should contact their primary supervisory official. Members needing assistance should call NCUA's Hurricane Isaac toll-free hotline at (888) 584-6847. Operators will answers calls Monday through Friday between 8 a.m. and 6 p.m. EDT, the agency said.
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