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Samantha: Hello, this is Samantha Shares.

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Happy new Year!

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This episode covers National
Credit Union Administration Board’s

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Approval of a  Non-Registered
Investment Fund Pilot Program

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The following is an audio
version of that press release.

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This podcast is educational
and is not legal advice.

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We are sponsored by Credit Union
Exam Solutions Incorporated, whose

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team has over two hundred and
Forty years of National Credit

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Union  Administration experience.

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We assist our clients with N C
U A so they save time and money.

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If you are worried about a recent,
upcoming or in process N C U A

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examination, reach out to learn how they
can assist at Mark Treichel DOT COM.

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Also check out our other podcast called
With Flying Colors where we provide tips

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on how to achieve success with N C U A.

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And now the press release.

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NCUA Board Approves Non-Registered
Investment Fund Pilot Program

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On December 30th  The National Credit
Union Administration Board approved,

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by notation vote, an investment pilot
program authorized under section 703

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point 19 C of the N C U A’s regulations.

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The N C U A will permit up to 30
complex federal credit unions to

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engage in investment activities
prohibited under part 703 but permitted

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by the Federal Credit Union Act.

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Note A credit union is considered
"complex" if its total assets exceed a

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specific threshold set by the N C U A.

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As of today,the threshold is 500
million dollars or more in total assets.

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A L M First Financial Advisors, LLC.,
a Securities and Exchange Commission

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registered investment advisor,
requested the investment pilot program.

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The requested pilot program would
allow complex federal credit

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unions to invest in a series of
non-registered investment funds

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comprised of consumer loans, as follows:

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The pilot fund would be comprised
of permissible consumer loans for

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federally insured credit unions
with maturities of less than 10

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years and overnight investments.

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Federal credit unions must be complex and
have a capital adequacy classification

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of well capitalized to invest in the fund
and are limited to an aggregate investment

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of 50 percent of net worth as defined
in part 702 of N C U A’s regulations.

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The pilot program is subject to the A
L M First Loan Fund Investment Pilot

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Program Requirements and Conditions, which
are available on the N C U A website.

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Under part 703 of the N C U A’s
regulations, federal credit unions

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are authorized to invest in funds
that are registered with the S E C

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or regulated by the Office of the
Comptroller of the Currency, provided

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the underlying assets purchased by
the fund are permissible under N C

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U A rules for federal credit unions.

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This concludes the press release

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If your Credit union could use assistance
with your exam, reach out to Mark Treichel

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on LinkedIn, or at mark Treichel dot com.

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This is Samantha Shares and
we Thank you for listening.