Source: https://www.ecfr.gov/cgi-bin/text-idx?mc=true&node=pt12.7.705&rgn=div5
Timestamp: 2020-08-04 03:22:20
Document Index: 90114035

Matched Legal Cases: ['art 705', '§705', '§705', '§705', '§705', '§705', '§705', '§705', '§705', '§705', 'art 705', '§701', '§701', '§741', '§701', '§701', '§701', '§705', '§705', '§705', 'art 746', '§705']

Title 12 → Chapter VII → Subchapter A → Part 705
§705.1 Authority, purpose, and scope.
§705.3 Eligibility requirements.
§705.4 Permissible uses of loan funds.
§705.5 Terms and conditions for loans.
§705.6 Terms and conditions for technical assistance grants.
§705.7 Application and award processes.
§705.8 Urgency.
§705.9 Reporting and monitoring.
§705.10 Appeals.
Source: 76 FR 67587, Nov. 2, 2011, unless otherwise noted.
Editorial Note: Nomenclature changes to part 705 appear at 84 FR 1607, Feb. 5, 2019.
[76 FR 67587, Nov. 2, 2011, as amended at 81 FR 85112, Nov. 25, 2016]
Low-income Members are those members defined in §701.34 of this chapter.
Qualifying Credit Union means a credit union that may be, or has agreed to be, examined by NCUA, with a current low-income designation pursuant to §701.34(a)(1) or §741.204 of this chapter or, in the case of a noninsured credit union, a low-income designation from a state regulator, made under appropriate state standards with the concurrence of NCUA. Services to low-income members must include, at a minimum, offering share accounts and loans.
[81 FR 85112, Nov. 25, 2016]
(c) Recording of a loan. At the discretion of NCUA, a loan will be recorded by a Participating Credit Union as either a note payable or a nonmember deposit.
(d) Interest rate. The rate of interest on loans is governed by the CDRLF Loan Interest Rate Policy, which can be found on NCUA's Web site or by contacting NCUA's Office of Credit Union Resources and Expansion. The specific interest rate for a particular funding will be announced in the related Notice of Funding Opportunity. The Board will announce changes, if any, to the CDRLF Loan Interest Rate Policy and those changes will apply to loans made under future Notices of Funding Opportunities.
(1) Loan monies made available generally must be matched by the Participating Credit Union in an amount equal to the loan amount. Any loan monies matched by nonmember share deposits are not subject to the 20% limitation on nonmember deposits under §701.32 of this chapter. Participating Credit Unions must maintain the increase in the total amount of share deposits for the duration of the loan. Once the loan is repaid, nonmember share deposits accepted to meet the matching requirement are subject to §701.32 of this chapter.
(h) Other terms and conditions. Other terms and conditions pertaining to loans, including but not necessarily limited to duration, repayment obligations, security agreements (if any), and covenants, will be specified in the related Notice of Funding Opportunity or applicable loan documents to be signed by the Participating Credit Union.
[76 FR 67587, Nov. 2, 2011, as amended at 81 FR 85112, Nov. 25, 2016; 82 FR 60292, Dec. 20, 2017]
(3) In addition to those items required in this section, a Qualifying Credit Union that is a noninsured credit union must also include the following:
(iv) Documentation of the credit union's status as a low-income credit union by the appropriate state supervisory agency consistent with NCUA Rules and Regulations at §§701.34(a) and 741.204(b); and
(v) An agreement to be subject to examination by NCUA.
(ii) NCUA will only provide a loan to a qualifying state-charted credit union with the written concurrence of the applicable Regional Director and the credit union's state supervisory authority. A qualifying state-chartered credit union should notify its state supervisory authority that it is applying for a loan from the Fund before submitting its application to NCUA. However, a qualifying state-chartered credit union is not required to obtain concurrence before applying for a loan. NCUA will obtain the concurrence directly from the state supervisory authority rather than through the qualifying state-chartered credit union. Additionally, before NCUA will provide a loan to a qualifying state-charted credit union the credit union must make copies of its state examination reports available to NCUA and agree to examination by NCUA.
(f) Notice of Award. NCUA will determine whether an application meets NCUA's standards established by this part and the related Notice of Funding Opportunity. NCUA will provide written notice to a Qualifying Credit Union as to whether or not it has qualified for a loan or technical assistance grant under this part. A Qualifying Credit Union whose application has been denied for failure of a qualification may appeal that decision in accordance with §705.10 of this part.
[76 FR 67587, Nov. 2, 2011. Redesignated and amended at 81 FR 85112, Nov. 25, 2016]
[76 FR 67587, Nov. 2, 2011. Redesignated at 81 FR 85112, Nov. 25, 2016]
[76 FR 67587, Nov. 2, 2011, as amended at 81 FR 85113, Nov. 25, 2016]
(a) Appeals of non-qualification. A Qualifying Credit Union whose application for a loan or technical assistance grant has been denied under §705.7(f) for failure to satisfy any of the conditions set forth in §705.7(c), including any additional criteria set forth in the related notice of funding opportunity, may request the Director of the Office of Small Credit Union Initiatives to reconsider the denial and/or appeal that decision to the NCUA Board in accordance with the procedures set forth in subpart B to part 746 of this chapter, subject to the following limitations:
(2) Appeals procedures inapplicable. The foregoing procedure applies during an open period in which funds are available and NCUA has called for applications. NCUA will reject any application submitted during a period in which NCUA has not called for applications, except for applications submitted under §705.8. Such rejections are not subject to appeal or review by the NCUA Board.
[81 FR 85113, Nov. 25, 2016, as amended at 82 FR 50293, Oct. 30, 2017]