For Details, Contact:
Public & Congressional Affairs
email: pacamail@ncua.gov
Fax: (703) 518-6409

National Credit Union Administration
1775 Duke Street
Alexandria, VA 22314-3428
Phone: (703) 518-6330
Web Address: http://www.ncua.gov/

NCUA News Release

FOR IMMEDIATE RELEASE

NCUA DISASTER ASSISTANCE ACTIVATED FOR TORNADOES IN ALABAMA, KANSAS, MISSOURI, OKLAHOMA AND TENNESSE

Alexandria, Va., May 14, 2003 -- The National Credit Union Administration has activated its disaster relief policy to assist credit unions and members in counties eligible for aid in Alabama, Kansas, Missouri, Oklahoma and Tennessee, where offices and homes were destroyed by multiple tornadoes in the last two weeks. President Bush authorized the Federal Emergency Management Agency (FEMA) to provide aid and FEMA designated counties in each of the five states for assistance.

NCUA examiners and staff have been staying in close contact with federal credit unions in these states to determine whether any immediate danger exists and to offer advice and assistance.

Under the policy, the NCUA will, where necessary:

• Encourage credit unions to make loans with special terms and reduced documentation to members whose homes and property are damaged;
• Reschedule routine examinations of affected credit unions; and
• Guarantee lines of credit for credit unions through the National Credit Union Share Insurance Fund and 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
• Provide material and technical assistance, as needed, to affected credit unions

The National Credit Union Administration, governed by a three-member board appointed by the President and confirmed by the Senate, is the independent federal agency that regulates, charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 80 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.