Source: https://www.federalregister.gov/articles/2013/01/23/2013-01206/office-of-small-credit-unions-oscui-loan-program-access-for-credit-unions
Timestamp: 2015-07-31 23:29:09
Document Index: 625423454

Matched Legal Cases: ['art 705', 'art 705', 'arts 701', '§ 701', '§ 705', '§ 705']

Dates: The application open period is from January 1, 2013 thru December 31, 2013. Funds may be exhausted prior to this deadline, at which time the programs/funds will no longer be available.
78 FR 4875
-4878 (4 pages)
Document Number: 2013-01206
Shorter URL: https://federalregister.gov/a/2013-01206 Regulations.gov Docket Info
NCUA-2013-0007
Funding Opportunities: Office of Small Credit Unions Loan Program Access for Credit Unions
The application open period is from January 1, 2013 thru December 31, 2013. Funds may be exhausted prior to this deadline, at which time the programs/funds will no longer be available.
Applications must be submitted online at www.cybergrants.com/ncua/applications.
Further information can be found at: www.ncua.gov/OSCUI/grantsandloans. For questions email: National Credit Union Administration, Office of Small Credit Union Initiatives at OSCUIAPPS@ncua.gov.
A. Program Regulation: Part 705 of NCUA's regulations implements the OSCUI Grant and Loan Program. 12 CFR 705. A revised Part 705 was published on November 2, 2011. 76 FR 67583. Additional requirements are found at 12 CFR Parts 701 and 741. Applicants should review these regulations in addition to this NOFO. Each capitalized term in this NOFO is more fully defined in the regulations, the loan application, and the loan agreement. For the purposes of this NOFO, an Applicant is a Qualifying Credit Union that submits a complete Application to NCUA under the OSCUI Loan Program.
B. Funds Availability: Congress has not made an appropriation to the OSCUI Loan Program for Fiscal Years 2013-2014. NCUA expects to lend approximately $9.5 million under this NOFO, derived from appropriated and earned funds. Monies for additional loans come from scheduled loan amortizations. NCUA reserves the right to: (i) Award more or less than the amount cited above; (ii) fund, in whole or in part, any, all, or none of the applications submitted in response to this NOFO; and (iii) reallocate funds from the amount that is anticipated to be available under this NOFO to other programs, particularly if NCUA determines that the number of awards made under this NOFO is fewer than projected.
A. Eligibility Requirements: The regulations specify the requirements a credit union must meet in order to be eligible to apply for assistance under this NOFO. See 12 CFR 705.
Following are additional requirements for participating in the Loan Program under this NOFO. In short, an Applicant must:
1. Low Income Credit Union Designation: A credit union must be a LICU, or equivalent in the case of a Qualifying State-chartered Credit Union, in order to participate in the OSCUI Grant and Loan Program. Requirements for obtaining the designation are found at 12 CFR § 701.34.
B. Permissible Uses of Funds: NCUA will consider requests for funds consistent with the purpose of the OSCUI Loan Program. 12 CFR § 705.1. A non-exhaustive list of examples of permissible uses or projects of loan proceeds are contained in § 705.4 of the regulation, and include: (i) Development of new products or services for members including new or expanded share draft or credit card programs; (ii) Partnership arrangements with community based service organizations or government agencies; (iii) Loan programs, including, but not lmited to, micro business loans, payday loan alternatives, education loans, and real estate loans; (iv) Acquisition, expansion or improvement of office space or equipment, including branch facilities, ATMs, and electronic banking facilities; and (v) Operational programs such as security and disaster recovery.
3. Interest: The interest rate on loans is governed by the Loan Interest Rate Policy, which can be found on NCUA's Web site at www.ncua.gov/OSCUI/GrantsandLoans.
(i) CAMEL Composite Rating
(ii) CAMEL Management Component Rating
(iii) CAMEL Asset Quality
(iv) Regional Director Concurrence
(v) Net Worth Ratio
C. Submission of Application: Under this NOFO, Applications must be submitted online at www.cybergrants.com/ncua/applications.
1. Eligibility and Completeness Review: NCUA will review each Application to determine whether it is complete and that the Applicant meets the eligibility requirements described in the Regulations and Section II of this NOFO. An incomplete Application or one that does not meet the eligibility requirements will be declined without further consideration.
2. Substantive Review: After an Applicant is determined eligible and its Application is determined complete, NCUA will conduct a substantive review in accordance with the criteria and procedures described in the Regulations and this NOFO. NCUA reserves the right to contact the Applicant during its review for the purpose of clarifying or confirming information contained in the Application. If so contacted, the Applicant must respond within the time specified by NCUA or NCUA, in its sole discretion, may decline the application without further consideration.
12 U.S.C. 1756, 1757(5)(D), and (7)(I), 1766, 1782, 1784, 1785 and 1786; 12 CFR 705.
By the National Credit Union Administration Board on January 16, 2013.
[FR Doc. 2013-01206 Filed 1-22-13; 8:45 am]