Friday, October 9, 2026

The Statutory Lien and How to Use It.

Have you ever had a member who refused to make payments on a loan? Well, a federal credit union can use a statutory lien to claim a member's shares and dividends as security for an unpaid debt.

Under the Federal Credit Union Act and Section 701.39 of NCUA’s Rules and Regulations credit unions are granted a statutory lien in its member’s shares and dividends. This allows credit unions to use funds deposited in a member’s account to satisfy outstanding defaulted loans. However, the lien comes with several requirements and limitations.

Impressing the lien

In order to first use the statutory lien, credit unions must first impress or attach the lien to a member’s account. Under section 701.39(c), a federal credit union may impress or attach a lien on an account held at the credit union in one of three ways:

•    Provide notice to the member through account opening documentation;
•    Provide notice of the lien through loan documentation that is signed or otherwise acknowledged by the member; or
•    Through a bylaw amendment or policy, of which the member is given notice.

Under Section 701.39(a)(4), notice means:

“written notice to a member disclosing, in plain language, that the credit union has the right to impress and enforce a statutory lien against the member's shares and dividends in the event of failure to satisfy a financial obligation, and may enforce the right without further notice to the member. Such notice must be given at the time, or at any time before, the member incurs the financial obligation”

Enforcing the lien

Once the statutory lien has been impressed, no further notice is required to enforce the statutory lien and, unless otherwise prohibited by federal law, a credit union may debit a member’s account and apply the funds against the member’s outstanding financial obligations to the credit union. However, credit unions should keep in mind that Section 701.39 only allows for enforcement if the member has defaulted. In other words, credit unions cannot preemptively use the statutory lien but must wait until the member has defaulted. However, unlike a garnishment, credit unions do not need to obtain a judgment in order to enforce the statutory lien.

Limitations of the lien

There are several notable limitations on the statutory lien. The first is that while section 701.39(b) provides credit union priority over other creditors, this priority can be superseded by both federal and state law. Credit unions may also want to note that their ability to impress and/or enforce the statutory lien can be superseded by federal law. For example, under Regulation Z, Section 1026.12, card issuers are generally prohibited from offsetting any funds held on deposit against an obligation owed on a credit card account. Thus, a federal credit union may not use its statutory lien power against a member’s shares and dividends to satisfy a credit card debt.

Credit unions may also not freeze an account. In a 2002 legal opinion letter, the NCUA noted that credit unions could not freeze a member’s account as a means of enforcing the statutory lien. Credit unions should also be aware that the statutory lien only applies to funds in a member’s accounts held at the credit union. The statutory lien does not apply to other types of collateral securing a loan, such as a vehicle. Lastly, the statutory lien only applies to defaulted loan debts; it does not apply to losses from a non-credit account, such as due to a returned check.

Here is a link to the NCUA’s Examiner’s Guide that provides a discussion on exceptions to the statutory lien (see page 33).

Proposed call report changes add stablecoin account codes.

Proposed changes to the NCUA’s 5300 Call Report published Friday would create new account codes for reporting stablecoin-specific information. Comments are due to the NCUA by Dec. 8, 

The notice summarizes four categories of data collection, adding:

  • Eight new accounts for reporting custody of reserve assets for permitted payment stablecoin issuer (PPSI) third parties. 
  • Nine new accounts for reporting cryptographic key custody and control. 
  • Five new accounts for reporting direct exposure to PPSIs. This information will enhance NCUA’s off-site supervision. 
  • Four new accounts for reporting payment stablecoins held on the credit union’s balance sheet.

The NCUA indicates this information will enhance the agency’s offsite supervision.

The proposed changes would result in quarterly data collection, a move that is expected to align with publication of final rules to implement the GENIUS Act for credit unions. However, it does not preclude the possibility of additional reporting obligations which are present in the NCUA’s stablecoin proposal. America’s Credit Unions will remain engaged with the NCUA as it finalizes its stablecoin rulemakings. 

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Remember, you're not alone with NCOFCU.org

Lynn Firefighters FCU to Merge Wth First Responders CU

Seeking a Merger Partner, Lynn Firefighters FCU Calls on First Responders

Founded in 1935, the $20.1-million LFFCU has approximately 1,600 members. It reported $157,799 in net income through June 30, with net worth of 19.62%. The $452.5-million First Responders CU, founded in 1947, has approximately 12,150 members and posted $1.7 million in net income and net worth of 12.93% as of the same date.

BOSTON—First Responders Credit Union and Lynn Firemen’s Federal Credit Union have announced plans to merge, creating a combined organization with approximately $470 million in assets and 13,500 members serving first responders and their families across Massachusetts.

The merger is expected to be completed in March of 2027.

First Responders CU, which has nearly $450 million in assets, will absorb $20-million Lynn Firemen’s FCU. The merger is subject to member and regulatory approvals, with both existing branches in Dorchester and Lynn remaining open and employees of both institutions being retained.

“The opportunity to expand First Responders Credit Union’s support for firefighters, while making our credit union stronger for the members we already serve, makes this a seamless unification of two strong organizations,” said Danielle Milner, president and CEO of First Responders CU. “Our credit unions share a common history and shared belief that first responders deserve an organization dedicated to the unique needs of them and their families. Coming together with Lynn Firemen’s Federal Credit Union will preserve the highest levels of service to our firefighter communities while strengthening the resources available to them.”

“Lynn Firemen’s Federal Credit Union has proudly served firefighters in Boston’s North Shore for more than ninety years,” said CJ Gheringhelli, board chairman of Lynn Firemen’s FCU, which serves approximately 1,500 members. “Our goal has always been to take care of those who serve. Now our two organizations will be stronger together and ensure that members have expanded access to the financial technology, products, and support they need, while maintaining the values and priorities that have historically supported Massachusetts’ firefighting communities.”



Thursday, October 8, 2026

NCOFCU Celebrates 25 Years with Highly Successful Annual Conference in Tucson, Arizona

 

National Council of First Responder Credit Unions Celebrates 25 Years with Highly Successful Annual Conference in Tucson, Arizona

Credit union leaders from across the nation gather to celebrate a milestone anniversary, exchange ideas, and prepare for the future of first responder credit unions.

MIAMI, FL – October 8, 2026 – The National Council of First Responder Credit Unions (NCOFCU) proudly celebrated its 25th Anniversary Annual Conference, held September 28 through October 2, 2026, at the beautiful Loews Ventana Canyon Resort in Tucson, Arizona. The event brought together credit union executives, board members, industry leaders, business partners, and exhibitors for five days of education, networking, collaboration, and celebration.

Under the theme “Looking Towards the Future,” this year's conference marked an important milestone in NCOFCU's history while reinforcing its commitment to strengthening credit unions serving America's firefighters, law enforcement officers, emergency medical personnel, and other first responders.

The conference featured an outstanding lineup of speakers, industry experts, and interactive discussions addressing some of the most pressing issues facing credit unions today. Topics included leadership and governance, regulatory developments, emerging technologies, cybersecurity, membership growth, financial performance, and long-term sustainability.

One of the highlights of this year's program was the introduction of expanded CEO and Board of Directors Roundtable Discussions. These interactive sessions gave participants an opportunity to exchange experiences, discuss common challenges, and explore practical solutions with peers who understand the unique responsibilities of serving first responder communities.

“The success of this year's conference was about much more than celebrating 25 years,” said Grant Sheehan, Founder and CEO of NCOFCU. “It was about bringing people together who share a common purpose. The conversations, exchange of ideas, and willingness to help one another are what make this organization so special. We may represent different credit unions from different parts of the country, but we all share the same commitment to serving those who serve and protect our communities.”

The anniversary celebration also provided an opportunity to reflect on NCOFCU's beginnings in 2001 and its evolution into a national organization dedicated to supporting the volunteer leaders and professional staff of credit unions serving first responders.

Beyond the educational sessions, attendees enjoyed opportunities to renew friendships, establish new professional relationships, and experience the beauty and hospitality of Tucson. From the opening reception to the golf outing, local excursions, and memorable closing celebration at the Coyote Corral, the conference offered a balance of professional development and camaraderie.

NCOFCU also recognized the important contributions of its speakers, exhibitors, sponsors, and business partners, whose participation helped make the anniversary conference a success.

“After 25 years, one thing remains clear: the greatest strength of NCOFCU is its people,” Sheehan added. “Our members are not simply attending another industry conference. They are building relationships, sharing knowledge, and helping each other become stronger credit unions. That spirit of cooperation is what has carried us through our first 25 years, and it is what will guide us into the future.”

Looking Ahead to Amelia Island in 2027

Building on the enthusiasm and success of the Tucson conference, NCOFCU is already preparing for its 2027 Annual Conference, September 27–30, 2027, at the Omni Amelia Island Resort & Spa in Amelia Island, Florida.

The 2027 event will continue the Council's commitment to delivering relevant educational programs, meaningful peer-to-peer discussions, valuable industry partnerships, and opportunities for credit union leaders to learn from one another.

NCOFCU invites credit unions serving first responders throughout the United States and Canada to become involved and experience the benefits of belonging to a national organization dedicated to their unique needs.

“We are proud of what we have accomplished over the past 25 years, but we are even more excited about what lies ahead,” Sheehan concluded. “Our mission continues to grow, our opportunities continue to expand, and our commitment to first responder credit unions has never been stronger. We look forward to welcoming everyone to Amelia Island in 2027.”

About NCOFCU

Founded in 2001, the National Council of Firefighter Credit Unions, Inc., doing business as the National Council of First Responder Credit Unions (NCOFCU), is a nonprofit organization dedicated to the education, support, and advancement of credit unions serving firefighters, law enforcement officers, emergency medical personnel, and other first responders.

Through its annual conferences, First Responder Credit Union Academy, educational resources, advocacy efforts, and business partnerships, NCOFCU helps credit union executives, directors, and volunteers strengthen their institutions and better serve their members.

Media Contact:

Grant Sheehan, Founder & CEO
National Council of First Responder Credit Unions (NCOFCU)
Email: info@ncofcu.org
Phone: 305-783-5433
Website: www.ncofcu.org
2027 Conference: www.ncofcu.org/2027-omni


NCOFCU Name Change


 NAME-CHANGE PRESS RELEASE

National Council of Firefighter Credit Unions Announces Name Change to Reflect Expanded Mission

Tucson, AZ — 9/30/2026 — The National Council of Firefighter Credit Unions (NCOFCU) today announced that it will officially be doing business as the National Council of First Responder Credit Unions (NCOFCU), marking a significant milestone as the organization celebrates its 25th anniversary.

The name change reflects the organization’s expanded mission to support credit unions serving not only firefighters, but also law enforcement, emergency medical services (EMS), and the broader first responder community.

“For 25 years, we have proudly supported firefighter credit unions and the leaders who serve them,” said Grant Sheehan, Founder/CEO of NCOFCU. “As our members have grown and evolved, so have we. This new name reflects the full community we are committed to serving. Those who serve on the front lines every day.”

Since its founding, the organization has focused on equipping volunteer directors, executives, and staff with the education, leadership development, and collaborative opportunities needed to strengthen credit unions serving first responders and their families.

The announcement will be formally unveiled at the organization’s 25th Anniversary Conference in Tucson, AZ, where members and industry partners will gather to celebrate its legacy and look ahead to the future.

“This is not a departure from our roots, it is an expansion of our mission,” Grant Sheehan added. “Firefighter credit unions remain at the heart of who we are. We are building on that foundation to support all first responder credit unions with the same commitment to leadership, education, and impact.”

The National Council of First Responder Credit Unions will continue to provide its signature programs, including leadership training, governance education, and industry collaboration, while expanding resources to meet the evolving needs of its growing membership.

For more information, visit: www.ncofcu.org

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Remember, you're not alone with NCOFCU.org


Thursday, September 24, 2026

New IRS Auto Loan Reporting Rule Creates Major Compliance Challenge for Credit Unions

Credit unions that make auto loans need to begin preparing now for a significant new IRS reporting requirement that could create an especially heavy burden for smaller institutions.

Treasury and the IRS have finalized regulations implementing the new federal deduction for qualifying personal vehicle loan interest. While the tax deduction benefits borrowers, the responsibility for determining which loans qualify—and reporting the information—falls largely on lenders.

Beginning with interest received in 2026, lenders receiving $600 or more in qualifying interest on an eligible personal vehicle loan generally must file the new Form 1098-VLI with the IRS and provide a statement to the borrower. (Credit Union Daily)

The Review Goes Back to January 2025

One of the biggest challenges is that credit unions cannot simply apply the new process to loans originated in 2026.

Loans incurred beginning January 1, 2025, may need to be evaluated if they remain outstanding and generate interest during 2026. That potentially requires credit unions to review a substantial portion of their existing auto loan portfolio. Transitional relief available for 2025 reporting does not continue for 2026. (Credit Union Daily)

Credit Unions May Not Have the Data

The regulations require information that many loan origination systems and core processors have not historically captured in easily accessible fields. Among the information that may be needed are:

  • Vehicle assembly location and other vehicle information

  • Whether the vehicle's original use began with the borrower

  • Negative equity from a trade-in

  • Down payments and potentially manufacturer rebates

  • Refinancing history and prior-loan information

  • The portion of a loan attributable to qualifying versus nonqualifying financing

Negative equity is particularly complicated. If part of the financing represents nonqualifying negative trade-in equity, interest may have to be allocated proportionately between qualifying and nonqualifying portions of the loan. (Credit Union Daily)

No Broad Safe Harbor

Another concern is the lack of the broad safe harbor lenders had requested. Treasury rejected proposals that would have allowed lenders to rely broadly on dealer or borrower certifications or simply report interest on all vehicle loans and leave the eligibility determination to the IRS. (Credit Union Daily)

That means credit unions need a documented and defensible process for determining which loans require reporting.

What Credit Unions Should Be Doing Now

This should not be viewed simply as another year-end tax-reporting requirement. For many credit unions, it may be better viewed as a loan-data and compliance project.

Credit unions should begin reviewing loans originated since January 2025, determine what information their systems currently capture, identify information that may require manual file review, and obtain firm implementation timelines from their core and loan-origination-system providers.

New originations should also begin capturing important information—such as negative equity, down payments, vehicle information and refinance history—in structured, searchable fields rather than relying solely on documents stored in the loan file. (Credit Union Daily)

Credit unions should also work with their tax and compliance advisers to establish written positions on areas where the regulations require interpretation.

Why This Matters to Smaller Credit Unions

For larger financial institutions, this may become another specialized tax-reporting function. For smaller credit unions, however, the work could fall on a compliance officer or accounting department already handling numerous other regulatory responsibilities.

The article makes an important broader point: a tax benefit created for consumers can become a significant operational and compliance obligation for the financial institution holding the loan.

For first responder credit unions with active auto lending programs, the message is straightforward: do not wait until January to address Form 1098-VLI.

Credit unions should be talking with their core processors, LOS vendors, accountants and tax advisers now and determining how many loans may require review before the first borrower statements are due.

NCOFCU will continue monitoring this issue and its impact on smaller credit unions serving first responders.

The underlying Credit Union Daily article was published September 22, 2026, and goes into considerably more detail on screening the portfolio, VIN data, negative equity, refinancing and filing deadlines. (Credit Union Daily)


Wednesday, September 23, 2026

Simplified CECL Tool Updated for September 2026

 

 

Sunday, September 20, 2026

Sunday Reading - Rock 'n' roll

 


Twist and Shout

Rock 'n' roll is a form of popular music that originated in the American South in the late 1940s and early 1950s. The genre combines elements of other American musical styles—including blues, country, gospel, R&B, Tin Pan Alley, and jazz.

> Explore an interactive timeline of rock 'n' roll's origins in blues, swing, country, and other genres. (More)
> American blues provided the framework for rock 'n' roll, jazz, and other American musical forms. (More, w/video)

Jackie Brenston's "Rocket 88" is now widely considered the genre's starting point, particularly for its use of distorted electric guitar, a defining feature that would shape the genre for decades. By the 1960s, rock 'n' roll was a part of the American mainstream and was spreading outside the country, too.

> Listen to "Rocket 88," widely considered the first rock 'n' roll song. (More, w/video)

> Why is the Rock & Roll Hall of Fame in Cleveland, Ohio? (More) 

In the following decades, rock music continued to evolve and splinter into various styles and subgenres—including funk, punk, glam, new wave, metal, Goth, and indie—and influenced other iconoclastic pop forms like dance and hip-hop. While rock 'n' roll was once denigrated as unserious pop culture, it's now considered serious literature, with its own critics, historians, and even a Nobel laureate.

> Tour the iconic Sun Studio in Memphis, the studio responsible for hundreds of hours of American music history. (More, w/video)

> Find out which rock songwriter was the first to win the Nobel Prize in literature. (More)

Discover more: 

> Santa Cruz, California, banned rock 'n' roll in 1956, fearing the corruption of its youth. (More)

> Frank Sinatra was disgusted by Elvis Presley's hip-shaking "Ed Sullivan Show" appearance. (More)

> Rock became an integral part of Nigeria's civil war when it arrived in the country during the 1960s. (More)

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Remember, you're not alone with NCOFCU.org

The Statutory Lien and How to Use It.

Have you ever had a member who refused to make payments on a loan? Well, a federal credit union can use a statutory lien to claim a member...