Prompt Corrective Action, 12 CFR 702 (Subparts A-D)

Section 216 of the Federal Credit Union Act (12 U.S.C. §1790d) mandates prompt corrective action requirements for federally insured credit unions (FICUs) that become less than well capitalized. The NCUA Board is required to (1) adopt, by regulation, a system of prompt corrective action to restore the net worth of inadequately capitalized FICUs; and (2) develop an alternative system of prompt corrective action for new credit unions that carries out the purpose of prompt corrective actions while allowing an FICU reasonable time to build its net worth to an adequately capitalized level. Part 702 implements the statutory requirements and, to achieve this, various information collections to meet the purpose of prompt corrective action as circumstances require.

The latest form for Prompt Corrective Action, 12 CFR 702 (Subparts A-D) expires 2026-10-31 and can be found here.