NAFCU NCCO Exam 1 2024 – 2025 latest update with all questions and correct answers PASS A+

NAFCU NCCO Exam 1 2024 – 2025 latest update with all questions and correct answers PASS A+ Loans to officials - ANSWER-A-B > $20 k Official is BOD, SC Need BOD approval Maturity limits - ANSWER-Does not apply to LOC 40, 20, 15 years 15 yr balloon and refi allows so as not attempt to circumvent maturity limit MBL v Commercial Loans - ANSWER-Both - made for commercial, industrial, agricultural or professional purposes MBL - loans secured by a vehicle manufactured for household use and used for commercial, corp, ag purpose Commercial - Fed or state will insure, guarantee or commit to buy. Nonmemeber commerce loans or nonmember participation interests in commercial loans. Neither - made by a Corp cu, made to and by a fed insured cu, fully secured by shares, secured by 1-4 family residential property Nonmembers - ANSWER-Can be guarantor, cosigner or auth user Membership - ANSWER-Being within FOM and purchasing 1 share (par value) in CU Each member has ownership stake in CU Electing BOD by voting Better rates Inspecting books and records Once a member always a member Membership ends.. - ANSWER-Voluntarily termination or member expelled Membership rights - ANSWER-1. Vote 2. Maintain share account 10% Limit - ANSWER-No member can make a loan exceeding 10% of CU total unimpaired capital and surplus NAFCU NCCO Exam 1 2024 – 2025 latest update with all questions and correct answers PASS A+ Loans to officials - ANSWER-A-B > $20 k Official is BOD, SC Need BOD approval Maturity limits - ANSWER-Does not apply to LOC 40, 20, 15 years 15 yr balloon and refi allows so as not attempt to circumvent maturity limit MBL v Commercial Loans - ANSWER-Both - made for commercial, industrial, agricultural or professional purposes MBL - loans secured by a vehicle manufactured for household use and used for commercial, corp, ag purpose Commercial - Fed or state will insure, guarantee or commit to buy. Nonmemeber commerce loans or nonmember participation interests in commercial loans. Neither - made by a Corp cu, made to and by a fed insured cu, fully secured by shares, secured by 1-4 family residential property Nonmembers - ANSWER-Can be guarantor, cosigner or auth user Membership - ANSWER-Being within FOM and purchasing 1 share (par value) in CU Each member has ownership stake in CU Electing BOD by voting Better rates Inspecting books and records Once a member always a member Membership ends.. - ANSWER-Voluntarily termination or member expelled Membership rights - ANSWER-1. Vote 2. Maintain share account 10% Limit - ANSWER-No member can make a loan exceeding 10% of CU total unimpaired capital and surplus Administrative Tools - NCUA - ANSWER-Examiner Findings Document of Resolution Letter of Understanding Cease and Desist Other Powers - Civil money penalty, prohibition orders, removal of officials Annual Meeting - ANSWER-Must be held once a year and at same general time, notice 30-75 days prior to meeting, must have a quorum - 15 members APA (Administrative Procedure Act) - ANSWER-Establishes specific procedures for issuing proposed rules and providing time for public comment on proposals Areas of Risk Evaluation - ANSWER-Credit Liquidity Interest Rate Transactional Compliance Strategic Reputation Board of Directors - ANSWER-Odd number 5-15 members, employees can be on Board but not make up majority , terms from 2-3 years, only 1 directors may be compensated, reimburse reasonable expenses, indemnification, must be member of CU, no convictions of crimes of dishonesty or breach of trust and meet age requirements. Sets strategic goals of CU.Administrative Tools - NCUA - ANSWER-Examiner Findings Document of Resolution Letter of Understanding Cease and Desist Other Powers - Civil money penalty, prohibition orders, removal of officials Annual Meeting - ANSWER-Must be held once a year and at same general time, notice 30-75 days prior to meeting, must have a quorum - 15 members APA (Administrative Procedure Act) - ANSWER-Establishes specific procedures for issuing proposed rules and providing time for public comment on proposals Areas of Risk Evaluation - ANSWER-Credit Liquidity Interest Rate Transactional Compliance Strategic Reputation Board of Directors - ANSWER-Odd number 5-15 members, employees can be on Board but not make up majority , terms from 2-3 years, only 1 directors may be compensated, reimburse reasonable expenses, indemnification, must be member of CU, no convictions of crimes of dishonesty or breach of trust and meet age requirements. Sets strategic goals of CU.