The NCUA Board has the discretion to reclassify a credit union to the next lower category if the credit union has an unsafe or unsound condition or engages in material unsafe and unsound practices. The NCUA Board may reclassify a well-capitalized credit union as adequately capitalized, and may require an adequately capitalized or undercapitalized credit union to comply with certain mandatory or discretionary supervisory actions as if it were in the next lower category. The NCUA Board may apply this same discretionary authority to reclassify new credit unions that are well, moderately, or marginally capitalized. The NCUA Board alone has this authority; they may not delegate it. However, credit unions may apply to the NCUA Board for reconsideration of its decision.
Submitted by sevans on Fri, 01/02/2015 - 4:50pm
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