NCUA News Release

NCUA Activates Disaster Assistance for Hurricane and Tropical Storm Victims

Alexandria, Va., September 16, 2004 -- The National Credit Union Administration (NCUA) has activated its disaster relief policy to assist credit unions and their members in areas where offices and homes were damaged and destroyed by wind, rain and flooding caused by Hurricane Ivan and Tropical Storm Gaston.

President George W. Bush has declared major disasters exist in the states of Alabama , Louisiana , Mississippi and South Carolina and ordered federal aide to supplement state and local recovery efforts in these areas beginning in South Carolina effective August 28, 2004 . The President’s action makes federal funding available to the following counties and parishes:

Alabama -- Baldwin , Butler , Clarke, Coffee, Conecuh, Covington , Crenshaw, Escambia , Geneva , Mobile , Monroe and Washington .

Louisiana – Jefferson , Lafourche, Orleans , Plaquemines, St. Bernard, St. Charles , St. Tammany and Terrebonne.

Mississippi – George, Hancock, Harrison, Jackson, Perry, Stone, and Wayne.

South Carolina – Berkeley , Charleston and Williamsburg .

Additional states and counties may become designated disaster areas as damage surveys are completed and Hurricane Ivan tracks north through the U.S.

NCUA examiners from Region III and IV are in close contact with the affected local federal credit unions to offer advice and assistance.

Under the disaster assistance policy, NCUA will, where necessary:

1. Encourage credit unions to make loans with special terms and reduced documentation to affected members;
2. Reschedule routine examinations of affected credit unions if necessary;
3. Guarantee lines of credit for credit unions through the National Credit Union Share Insurance Fund; and
4. Make loans to meet the liquidity needs of member credit unions through the Central Liquidity Facility.

During disaster conditions, NCUA personnel operate under three priorities:

• Ensure the safety of credit union staff;
• Keep facilities and operations available to members; and
• Provide material and technical assistance, as needed, to affected credit unions.

NCUA is working with the individual state league organizations and state regulators to ensure all federally insured credit unions are aware of NCUA’s available assistance.

The NCUA is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates the National Credit Union Share Insurance Fund (NCUSIF), insuring the savings of over 83 million account holders in all federal credit unions and many state-chartered credit unions.