Once a credit union qualifies for low-income designation, it is
presumed that the status will be retained. However, the income level of the
field of membership may increase due to improvement in economic conditions, or
the merger or expansion of the credit union. Documentation regarding continued
low-income status eligibility will be reviewed during each regular examination
of the credit union to ensure that the credit union continues to meet the
standards established by this rule. Final decision regarding removal of
low-income designation rests with the superintendent. Removals may be appealed
to the credit union review board in a timely manner.
(1)
Reason for removal. The
designation as a low-income credit union may be removed by the superintendent:
a. At the request of the credit union if it
is determined by the superintendent that to do so will not adversely affect the
members of the credit union and that the removal action would be in the public
interest; or
b. If, after notice to
the credit union and the opportunity for a hearing, the superintendent
determines that the credit union no longer meets the standards and limitations
established by this rule and that the removal action would be in the public
interest.
(2)
Result of loss of low-income designation on nonmember
accounts. Immediately following the removal of the low-income status,
the credit union shall provide all nonmembers written notice of the removal
action, informing them:
a. That the credit
union is no longer eligible to receive nonmember payments on shares and
deposits;
b. That all nonmember
accounts with a stated maturity date may be withdrawn prior to maturity without
any early withdrawal penalty; and
c. That the nonmember shares and deposits
held by the credit union must be withdrawn and the account closed either upon
the stated date of maturity of the account or the date when the account ceases
to be federally insured as required by Iowa Code section
533.307, whichever occurs
first.
