[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR705.5]



[Page 429-430]

 

                       TITLE 12--BANKS AND BANKING

 

            CHAPTER VII--NATIONAL CREDIT UNION ADMINISTRATION

 

PART 705_COMMUNITY DEVELOPMENT REVOLVING LOAN PROGRAM FOR CREDIT UNIONS

--Table of Contents

 

Sec. 705.5  Application for participation.



    (a) Applications to participate and qualify for a loan or technical 

assistance under the Program may be obtained from the National Credit 

Union Administration, Community Development Revolving Loan Program For 

Credit Unions.

    (b) The application for a loan shall contain the following 

information:

    (1) Information demonstrating a sound financial position and the 

credit union's ability to manage its day-to-day business affairs, 

including the credit union's latest financial statement. Nonfederally 

insured credit unions must include the following:

    (i) A copy of its most recent outside audit report;

    (ii) Proof of deposit and surety bond insurance which states the 

maximum insurance levels permitted by the policies;

    (iii) A balance sheet, an income and expense statement, and a 

schedule of delinquent loans, for the most recent month-end and each of 

the twelve months preceding that month-end.

    (2) Evidence that the credit union has a need for increased funds in 

order to improve financial services to its members.

    (3) The following information concerning a state-chartered credit 

union's field of membership:

    (i) Current field of membership as set forth in the credit union's 

charter;

    (ii) Changes, if any, to be made to the field of membership for 

participation in the Program, including;

    (A) Evidence of approval of change by credit union board of 

directors;

    (B) Evidence of submission and approval of change by the state 

supervisor;

    (iii) Current designation as a low-income credit union if the credit 

union is not federally insured.

    (4) Along with a community needs plan, specifics of how the credit 

union proposes to serve the needs of its members and the community with 

Program funds. The applicant credit union will also construct and submit 

a plan for its growth and development. The plan will set forth 

objectives for financial growth, credit union development and 

capitalization, and the means for achieving these objectives.

    (5) Indication of any other involvement in existing community 

development programs of state and federal agencies.

    (c) NCUA will notify applicant credit unions as to whether or not 

they have qualified for a loan or technical assistance under this part. 

Reasons for nonqualification will be stated. Any applicant whose 

qualification is denied may



[[Page 430]]



appeal that decision to the NCUA Board.



[58 FR 21646, Apr. 23, 1993, as amended at 61 FR 50695, Sept. 27, 1996]