# 12 CFR § 702.101: Capital measures, capital adequacy, effective date of classification, and notice to NCUA

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-12-702.101

## Section

- **Citation:** 12 CFR § 702.101
- **Heading:** Capital measures, capital adequacy, effective date of classification, and notice to NCUA
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 12—Banks and Banking > CHAPTER VII—NATIONAL CREDIT UNION ADMINISTRATION > SUBCHAPTER A—REGULATIONS AFFECTING CREDIT UNIONS > PART 702—CAPITAL ADEQUACY > Subpart A—Prompt Corrective Action

## 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).
(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 CFR § 702.101 § 702.101 Capital measures, capital adequacy, effective date of classification, and notice to NCUA.](https://www.frixlaw.com/law-library/statutes/ecfr-12-702.101.md)
- [12 CFR § 702.102 § 702.102 Capital classification.](https://www.frixlaw.com/law-library/statutes/ecfr-12-702.102.md)
- [12 CFR § 702.103 § 702.103 Applicability of risk-based capital measures.](https://www.frixlaw.com/law-library/statutes/ecfr-12-702.103.md)
- [12 CFR § 702.104 § 702.104 Risk-based capital ratio.](https://www.frixlaw.com/law-library/statutes/ecfr-12-702.104.md)
- [12 CFR § 702.105 § 702.105 Derivative contracts.](https://www.frixlaw.com/law-library/statutes/ecfr-12-702.105.md)
- [12 CFR § 702.106 § 702.106 Prompt corrective action for adequately capitalized credit unions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-702.106.md)
- [12 CFR § 702.107 § 702.107 Prompt corrective action for undercapitalized credit unions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-702.107.md)
- [12 CFR § 702.108 § 702.108 Prompt corrective action for significantly undercapitalized credit unions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-702.108.md)
- [12 CFR § 702.109 § 702.109 Prompt corrective action for critically undercapitalized credit unions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-702.109.md)
- [12 CFR § 702.110 § 702.110 Consultation with state officials on proposed prompt corrective action.](https://www.frixlaw.com/law-library/statutes/ecfr-12-702.110.md)
- [12 CFR § 702.111 § 702.111 Net worth restoration plans (NWRP).](https://www.frixlaw.com/law-library/statutes/ecfr-12-702.111.md)
- [12 CFR § 702.112 § 702.112 Reserves.](https://www.frixlaw.com/law-library/statutes/ecfr-12-702.112.md)
- [12 CFR § 702.113 § 702.113 Full and fair disclosure of financial condition.](https://www.frixlaw.com/law-library/statutes/ecfr-12-702.113.md)
- [12 CFR § 702.114 § 702.114 Payment of dividends.](https://www.frixlaw.com/law-library/statutes/ecfr-12-702.114.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-12-702.101. Check the current official text before relying on it. Not legal advice.