12 C.F.R. § 702.2 Definitions
Title 12 - Banks and Banking
Except as provided below, the terms used in this part have the same meanings as set forth in FCUA sections 101 and 216, 12 U.S.C. 1752, 1790d. (a) Appropriate regional director means the director of the NCUA regional office having jurisdiction over federally-insured credit unions in the state where the affected credit union is principally located. (b) Appropriate State official means the commission, board or other supervisory authority having jurisdiction over credit unions chartered by the State which chartered the affected credit union. (c) Credit union means a federally-insured, natural person credit union, whether federally- or State-chartered, as defined by 12 U.S.C. 1752(6). (d) CUSO means a credit union service organization as described in 12 CFR 712 et seq. for federally-chartered credit unions, and as defined under State law for State-chartered credit unions. (e) NCUSIF means the National Credit Union Share Insurance Fund as defined by 12 U.S.C. 1783. (f) Net worth means the retained earnings balance of the credit union at quarter end as determined under generally accepted accounting principles. Retained earnings consists of undivided earnings, regular reserves, and any other appropriations designated by management or regulatory authorities. This means that only undivided earnings and appropriations of undivided earnings are included in net worth. For low income-designated credit unions, net worth also includes secondary capital accounts that are uninsured and subordinate to all other claims, including claims of creditors, shareholders and the NCUSIF. For any credit union, net worth does not include the allowance for loan and lease losses account. (g) Net worth ratio means the ratio of the net worth of the credit union (as defined in paragraph (f) of this section to the total assets of the credit union (as defined by a measure chosen under paragraph (j) of this section. (h) New credit union means a federally-insured credit union which both has been in operation for less than ten (10) years and has $10,000,000 or less in total assets. (i) Senior executive officer means a senior executive officer as defined by 12 CFR 701.14(b)(2). (j) Shares means deposits, shares, share certificates, share drafts, or any other depository account authorized by federal or state law. (k) Total assets. (1) Total assets means a credit union's total assets as measured by either— (i) Average quarterly balance. The average of quarter-end balances of the current and three preceding calendar quarters; or (ii) Average monthly balance. The average of month-end balances over the three calendar months of the calendar quarter; or (iii) Average daily balance. The average daily balance over the calendar quarter; or (iv) Quarter-end balance. The quarter-end balance of the calendar quarter as reported on the credit union's Call Report. (2) For each quarter, a credit union must elect a measure of total assets from paragraph (k)(1) of this section to apply for all purposes under this part except §§702.103 through 702.108 [risk-based net worth requirement]. (l) Weighted-average life means the weighted-average time to the return of a dollar of principal, calculated by multiplying each portion of principal received by the time at which it is expected to be received (based on a reasonable and supportable estimate of that time), and then summing and dividing by the total amount of principal. [65 FR 8584, Feb. 18, 2000, as amended at 65 FR 44966, July 20, 2000; 67 FR 71087, Nov. 29, 2002]
Title 12: Banks and Banking
PART 702—PROMPT CORRECTIVE ACTION
§ 702.2 Definitions
