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 (PCA) requirements for federally insured credit unions (FICUs) that become less than well capitalized. Section 216 requires the NCUA Board 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 PCA while allowing an FICU reasonable time to build its net worth to an adequately capitalized level. Part 702 implements the statutory requirements. The purpose of prompt corrective action is to resolve the problems of FICUs at the least possible long-term loss to the National Credit Union Share Insurance Fund (NCUSIF).

The latest form for Prompt Corrective Action, 12 CFR 702 (Subparts A-D) expires 2023-09-30 and can be found here.