NCUA Releases 2013 List Of Rules, Regs Under Review

ALEXANDRIA, Va.-NCUA has released itslist of rules and regulations that will come under review this year. The agency reviews one-third of its rules and regs every year, and is accepting comment on the following items through Aug. 5. NCUA will be reviewing rules on: Management Official Interlocks; CUSOs; Share Insurance and Appendix, Fidelity Bond and Insurance Coverage for FCUs; Leasing; Supervisory Committee Audits and Verifications; Fair Credit Reporting; Incidental Powers; Appraisals; MBLs; Trustees and Custodians of Certain Tax-Advantaged Savings Plans; the CLF; Accuracy of Advertising and Notice of Insured Status; Privacy of Consumer Financial Information; Requirements for Insurance; and Administrative Actions, Adjudicative Hearings, Rules of Practice and Procedure, and Investigations.

Chetco Failure Projected To Cost NCUA $76 Million

HARBOR, Ore.-NCUA said the December failure of Chetco FCU, a one-time $375 million credit union, is projected to cost the agency $76.5-million in losses, making it one of the costliest credit union failures ever. As part of a rare two-way purchase-and-assumption deal, Chetco's five Oregon branches and member accounts valued at $171.9 million were purchased by Oregon's Rogue, and the credit union's California branch and accounts valued at $5.5 million were purchased by California's Coast Central CU, according to information NCUA provided the Credit Union Journal. NCUA assumed $82.7 million of the liabilities held by Chetco under the P&A deal. Chetco's lone CUSO, a small servicing operation, was closed down as part of the P&A.

The losses put Chetco among the top ten costliest natural person credit union failures, along with Cal State 9 CU ($206 million); St. Paul Croatian FCU ($186 million); Norlarco FCU ($100 million); Telesis Community CU ($72 million) and Eastern Financial Florida CU ($40 million).

Robbery Attempted At School Branch

OKLAHOMA CITY, Okla.-Police rushed to a local high school last week after an attempted armed robbery at Tinker FCU inside John Marshall High School and arrested a 16-year-old student at the school. The attempted robbery is one of the first among the proliferating number of in-school credit union branches.

When officers arrived, they spoke to a teller at the credit union who told them she was helping two students when Rayqwonn Chatman walked up to the counter and allegedly told her to "give me some money." Witnesses say he had his right hand in his pocket, making it appear as if he was armed. A witness said she told Chatman he could be in a lot of trouble, before he left without any cash. Police were able to review security footage and arrested Chatman.

Member Wins $5,000 In Contest

WESTERLY, R.I.-Westerly Community CU said the winner of its $5,000 Savings Challenge is Leonora Cacabelos of Bradford, R.I. The grand prize was unveiled at a Savings Challenge Finale held at the credit union's office here. WCCU's Savings Challenge ran from Jan. 1 through Dec. 31, 2012 and was launched with a goal of providing a way to create good savings habits by encouraging its members to open a Savings Challenge CD (with $25 min. deposit) and adding to it throughout the year. Each deposit of $25 (up to 10 per month) entered members into quarterly drawings and the Grand Prize drawing for $5,000. More than 250 members took advantage of the opportunity and watched their savings grow over the year, Westerly Community said. Although the contest ended, the Savings Challenge CD will continue to be offered.

Man Gets 45-Year Sentence

KNOXVILLE, Tenn.-A 22-year-old man was sentenced last week to 45 years in prison for shooting to death a member of TVA Employees CU and firing on several other members outside the credit union in December 2010. Brandon Johnson shot Davida Nicholson, tried to kill her autistic son and either shot at or threatened to shoot three other members at the TVAECU drive-thru, according to police. Johnson walked into the CU parking lot with two guns and a plan to rob the members. The 46-year-old Nicholson was in the driver's seat of a pickup truck while she was using an ATM. She was accompanied by her 21-year-old son, Richard Vowell, who is mentally disabled. Police later fired on Johnson when he pointed a gun at responding officers. He suffered a grazing wound to the neck.

In Other News

Barks To Fed Advisory Council

ST. LOUIS-Glenn Barks, president of First Community CU in Chesterfield, Mo., has been apointed chairman of the St. Louis Fed's Community Depository Institute Advisory Council. Barks succeeds Dennis Terry, president of First Clover Leaf Bank in Edwardsville, as head of the panel that helps the local Fed Bank set regulatory and financial policy. Barks will be the council's representative at twice-yearly meetings with Fed Chairman Ben Bernanke. Among the other members of the St. Louis Fed's committee is William Rissel, president of Fort Knox FCU in Radcliff, Ky.

Program Addresses Benefits Costs

CRANSTON, R.I.-O.M. Financial Group said it has entered into a partnership with MassMutual Trust Co. to offer a program that seeks to address both rising employee benefits costs while also increasing investment earnings potential for credit unions. The new offering, called the O.M. Financial Earnings Enrichment Program, "provides credit unions with a means to pre-fund a wide range of employee benefits with investments that may generate higher returns than traditional credit union investments," according to the company.

"The credit union can then use the returns generated by the program to offset its employee benefit costs, which can improve its bottom line," said Joe Tripalin of O.M. Financial.

Partners, CU Realty Reach Deal

BURBANK, Calif.-Partners FCU has joined with CU Realty Services LLC to use the CUSO's turnkey, Web-based active lead channel. Members of the credit union will be able to use CU Realty's turnkey real estate program to research neighborhoods, estimate payments and find qualified real estate agents.

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