# 12 C.F.R. § 702.101 (2026): Capital measures, capital adequacy, effective date of classification, and notice to NCUA > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_101 ## Section - **Citation:** 12 C.F.R. § 702.101 (2026) - **Heading:** Capital measures, capital adequacy, effective date of classification, and notice to NCUA - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Title 12 CFR: Banks and Banking / Chapter VII: NATIONAL CREDIT UNION ADMINISTRATION / Part 702: CAPITAL ADEQUACY / Subpart A: Prompt Corrective Action / § 702.101: § 702.101 Capital measures, capital adequacy, effective date of classification, and notice to NCUA. ## Text (a) Capital measures. For purposes of this part, a credit union must determine its capital classification at the end of each calendar quarter using the following measures: (1) The net worth ratio; and (2) If determined to be applicable under § 702.103, either the risk-based capital ratio under § 702.104(a) through (c) or the CCULR framework under § 702.104(d). (b) Capital adequacy. (1) Notwithstanding the minimum requirements in this part, a credit union defined as complex must maintain capital commensurate with the level and nature of all risks to which the institution is exposed. (2) A credit union defined as complex must have a process for assessing its overall capital adequacy in relation to its risk profile and a comprehensive written strategy for maintaining an appropriate level of capital. (c) Effective date of capital classification. For purposes of this part, the effective date of a federally insured credit union's capital 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; (2) Corrected capital classification. The date the credit union received subsequent written notice from NCUA or, if state-chartered, from the appropriate state official, of a decline in capital classification 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. 202(d). fficial, of a decline in capital classification 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. 202(d). (d) 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 capital measures that places the credit union in a lower capital 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 capital classification under paragraph (b) of this section, or the affected credit union's corresponding legal obligations under this part. [80 FR 66706, Oct. 29, 2015, as amended at 86 FR 72804, Dec. 23, 2021] ## Nearby sections - [12 C.F.R. § 702.101 (2026) § 702.101 Capital measures, capital adequacy, effective date of classification, and notice to NCUA.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_101.md) - [12 C.F.R. § 702.102 (2026) § 702.102 Capital classification.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_102.md) - [12 C.F.R. § 702.103 (2026) § 702.103 Applicability of risk-based capital measures.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_103.md) - [12 C.F.R. § 702.104 (2026) § 702.104 Risk-based capital ratio.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_104.md) - [12 C.F.R. § 702.105 (2026) § 702.105 Derivative contracts.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_105.md) - [12 C.F.R. § 702.106 (2026) § 702.106 Prompt corrective action for adequately capitalized credit unions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_106.md) - [12 C.F.R. § 702.107 (2026) § 702.107 Prompt corrective action for undercapitalized credit unions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_107.md) - [12 C.F.R. § 702.108 (2026) § 702.108 Prompt corrective action for significantly undercapitalized credit unions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_108.md) - [12 C.F.R. § 702.109 (2026) § 702.109 Prompt corrective action for critically undercapitalized credit unions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_109.md) - [12 C.F.R. § 702.110 (2026) § 702.110 Consultation with state officials on proposed prompt corrective action.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_110.md) - [12 C.F.R. § 702.111 (2026) § 702.111 Net worth restoration plans (NWRP).](https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_111.md) - [12 C.F.R. § 702.112 (2026) § 702.112 Reserves.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_112.md) - [12 C.F.R. § 702.113 (2026) § 702.113 Full and fair disclosure of financial condition.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_113.md) - [12 C.F.R. § 702.114 (2026) § 702.114 Payment of dividends.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_114.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P702_S702_101. Check the current official text before relying on it. Not legal advice.