National Credit Union Administration (NCUA) Law and Legal Definition

The National Credit Union Administration (NCUA) is an independent federal agency supervising and chartering federal credit unions. NCUA administers the National Credit Union Share Insurance Fund. The NCUA was created in 1970 to monitor federal credit unions across the country. The headquarters of NCUA is in Alexandria, Virginia. The NCUA is headed by a three-member board. The members of the board are appointed directly by the president of the U.S. The term of office of the board members is six years. The NCUA is administered through five regional offices. The NCUA is responsible for chartering, insuring, supervising, and examining federal credit unions. The NCUA aids its members by improving their economic situation through encouraging thrift among its members. The NCUA provides the members with a source of credit for provident purposes at reasonable rates of interest. The NCUA conducts periodic examinations of federal credit unions. Periodic examinations are conducted to determine the union’s solvency, compliance with laws and regulations, and to assist credit union management in improving operations.