Federally insured credit unions with a capital classification of undercapitalized or less are subject to Section 702.107(a)(2) of the NCUA Rules and Regulations (opens new window) and are required to have an NCUA-approved net worth restoration plan in place.
This page contains materials explaining Section 702.107 and how credit unions should develop their net worth restoration plans, including:
- Frequently asked questions about the prompt corrective action process; and
- Useful tips for developing net worth restoration plans.
Credit unions with questions regarding Section 702.107 and net worth restoration plans should contact their regional office or the Office of Credit Union Resources and Expansion.