WSR 06-14-058

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF

FINANCIAL INSTITUTIONS

[ Filed June 30, 2006, 8:02 a.m. ]

Subject of Possible Rule Making: Rules interpreting the definition of "equivalent share insurance program" under RCW 31.12.408, rules describing the requirements for credit unions that want to insure under an equivalent share insurance program, and rules setting forth the requirements for the private share insurer.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 31.12.516(2).

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: In the event an equivalent share insurance program seeks permission to offer private share insurance to state-chartered credit unions, the department needs rules to define the meaning of: (a) Holds reserves proportionately equal to the federal share insurance program; (b) maintains adequate reserves and access to additional sources of funds through replenishment features, reinsurance, or other sources of funds; and (c) has share insurance contracts that reflect a national geographic diversity. The department also needs rules describing the requirements for a credit union wanting to insure its shares privately and rules setting forth requirements that a private share insurance program would have to follow to be acceptable to the department of financial institutions.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: There are no other federal or state agencies that regulate this subject.

Process for Developing New Rule: We will be working with stakeholders to develop our rules.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Deborah Bortner, Regulatory Counsel, Department of Financial Institutions, P.O. Box 41200, Olympia, WA 98504, (360) 902-0511, dbortner@dfi.wa.gov; or Linda Jekel, Director of Credit Unions, Department of Financial Institutions, P.O. Box 41200, Olympia, WA 98504, (360) 902-[8778], ljekel@dfi.wa.gov. Meetings will be set up during the rule-making process to solicit interested party input both in person and electronically through the agency's web site at www.dfi.wa.gov.

June 30, 2006

Deborah Bortner

Regulatory Counsel

Washington State Code Reviser's Office