(a) Timing. NCUA will notify the covered credit union of the acceptance or rejection of its capital plan within 90 calendar days of the date of the plan's submission.
(b) Grounds for rejection of capital plan. NCUA may reject a capital plan if it determines that:
(1) The covered credit union has material unresolved supervisory issues associated with its capital planning process;
(2) The capital analysis underlying the covered credit union's capital plan, or the covered credit union's methodologies for reviewing the robustness of its capital adequacy, are not reasonable or appropriate;
(3) Data utilized for the capital analysis is insufficiently detailed to capture the risks of the covered credit union, or the data lacks integrity;
(4) The plan does not meet all of the requirements of Sec. 702.504;
(5) NCUA finds unacceptable weakness in the capital plan, the capital planning analysis, or any critical system or process supporting capital analysis; or
(6) The covered credit union's capital planning process constitutes an unsafe or unsound practice, or would violate any law, regulation, NCUA order, directive, or any condition imposed by, or written agreement with, NCUA. In determining whether a capital plan would constitute an unsafe or unsound practice, NCUA considers whether the covered credit union is and would remain in sound financial condition after giving effect to the capital plan.
(c) Notification in writing. NCUA will notify the credit union in writing of the reasons for a decision to reject a capital plan.
(d) Re-submission of a capital plan. If NCUA rejects a credit union's capital plan, the credit union must update and resubmit an acceptable capital plan to NCUA within 90 calendar days of the rejection. The resubmitted capital plan must at a minimum address:
(1) NCUA-noted deficiencies in the credit union's original capital plan; and
(2) Remediation plans for unresolved supervisory issues contributing to the rejection of the credit union's original capital plan.
(e) Supervisory actions. Any covered credit union operating without a capital plan accepted by NCUA may be subject to supervisory actions on the part of NCUA.
(f) Consultation on proposed action. Before taking any action under this section on the capital plan of a federally insured, state-chartered credit union, NCUA will consult and work cooperatively with the appropriate State official.