Established in May of 1985 by Legislative Act 85-457 (the Act), the Alabama Credit Union Administration is an independent state agency devoted exclusively to chartering, regulating, and
supervising Alabama state chartered credit unions. The ACUA is one of only a very few state agencies nationwide that enjoys such independence. The Alabama Credit Union Administration
was accredited by the National Association of State Credit Union Supervisors (NASCUS) in 1998. Accreditation standards are reviewed every five years. In February 2014, the agency was
reaccredited by NASCUS for five years.
The Act provides for the annual examination of each credit union’s books and records for safe and sound operation. On every such examination, inquiry is made as to the conditions and
resources of the credit union, the mode of conducting and managing the affairs of the credit union, and the action of its directors, officers, and management. The agency’s examiners
also inquire into the investment of the funds (deposits) of the credit union, the safety and soundness issues affecting the credit union, and whether the requirements of its charter
and applicable laws have been complied with. In addition to annual examinations, multiple examinations shall occur whenever, in the judgment of the Administrator, the condition of a
credit union or the public’s best interest render additional examinations necessary. The ACUA also approves charters for new credit unions, supervises mergers, liquidations, bylaw changes,
field of membership changes, and promulgates regulations as necessary.
Examining staff, in their capacity, assist credit unions in practicing due diligence, increasing efficiency and ensuring strong internal controls. Examiners also review compliance with
applicable laws and regulations, and oversee corrective actions where required. When necessary, ACUA may augment its regulatory presence through the issuance of Memoranda of
Understanding (MOU’s), Letter of Understanding and Agreements (LUA’s), Cease and Desist Orders (C&D’s), and Conservatorship Orders.