§ 703.109. Regulatory violation or unsafe and unsound condition.
195 words·~1 min read·
/us/cfr/t12/s§ 703.109·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Upon determination by the applicable Regional Director, and written notice by the same, a Federal credit union that no longer meets the requirements of this subpart; if applicable, fails to comply with its approved application; or is operating in an unsafe or unsound condition must immediately stop entering into any new Derivative transactions until the Federal credit union is notified by the applicable Regional Director in writing that it is permitted to resume engaging in Derivative transactions under this subpart.
(b)If the applicable Regional Director determines a Federal credit union must take any action under paragraph
(a)of this section, he or she will provide the Federal credit union with written notice including the reason(s) for such determination and the remedial actions that are required.
(c)During this period, however, the Federal credit union may terminate existing Derivative transactions. A Regional Director may permit a Federal credit union to enter into offsetting transactions if he or she determines such transactions are part of a corrective action strategy; and
(d)A Federal credit union that receives written notice under this section may appeal such determination in accordance with part 746 of the NCUA's regulations.