Negotiate Letters of Understanding and Agreement

August 2009Articles Credit Union Magazine

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Typically you might think of due diligence review as applying only to vendor relationships. However, you also should thoroughly analyze the formal agreements you might have to enter into with the National Credit Union Administration (NCUA) or your state regulator during these troubling economic times.

The Examination Outcome

The document of resolution (DOR), sometimes called the record of action, is the most important section of the examination report. It’s the examiner’s focus during the joint conference or exit meeting with your board if notable weaknesses are found. The DOR details agreements with your board to correct major concerns, which the NCUA Examiner’s Guide says are problems “that could affect the credit union’s safety and soundness or interfere with the normal daily operations” of the credit union.