Combination Transactions with Non-Credit Unions; Credit Union Asset Acquisitions

Title:
Combination Transactions with Non-Credit Unions; Credit Union Asset Acquisitions
Subject: Acquisitions
Agency: NCUA
Status: Proposed rule; reopening of comment period
Summary:
The NCUA Board (Board) proposes to add subpart D to part 708a of its regulations. This will clarify and make transparent the procedures and requirements currently in place related to combination transactions. Combination transactions include those where a federally insured credit union (FICU) proposes to assume liabilities from a non-credit union, including a bank. They also include a FICU’s merger or consolidation with a non-credit union entity. Further, the proposed rule clarifies the scope of section 741.8 of the NCUA’s regulations, which currently requires the NCUA to grant approval before a FICU may purchase loans or assume an assignment of deposits, shares, or liabilities from any institution that is not insured by the National Credit Union Share Insurance Fund (NCUSIF).
FR Doc: 2020-01538; 2020-07157 (reopening of comment period)
Date proposed:
Comments due date:

June 15, 2020

Final rule effective date:
Rule compliance date:
Agency release:

Related Reg Report item(s):

Proposed rule intended to ‘clarify’ regs governing credit union acquisition of banks (or ‘combination transactions’)

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