702.101—Measures and effective date of net worth classification.
(a) Net worth measures.
For purposes of this part, a credit union must determine its net worth category classification at the end of each calendar quarter using two measures:
(b) Effective date of net worth classification.
For purposes of this part, the effective date of a federally-insured credit union's net worth category classification shall be the most recent to occur of:
(1) Quarter-end effective date.
The last day of the calendar month following the end of the calendar quarter; or
(2) Corrected net worth category.
The date the credit union received subsequent written notice from NCUA or, if State-chartered, from the appropriate State official, of a decline in net worth category due to correction of an error or misstatement in the credit union's most recent Call Report; or
(3) Reclassification to lower category.
The date the credit union received written notice from NCUA or, if State-chartered, the appropriate State official, of reclassification on safety and soundness grounds as provided under §§ 702.102(b) or 702.302(d).
(c) Notice to NCUA by filing Call Report.
(1)
Other than by filing a Call Report, a federally-insured credit union need not notify the NCUA Board of a change in its net worth ratio that places the credit union in a lower net worth category;
(2)
Failure to timely file a Call Report as required under this section in no way alters the effective date of a change in net worth classification under this paragraph (b) of this section, or the affected credit union's corresponding legal obligations under this part.