A proposed rule to add regulatory language governing credit unions’ acquisitions of bank assets has a public comment deadline of March 30, according to a notice in Thursday’s Federal Register.
The proposal, released Jan. 23 by the National Credit Union Administration (NCUA) Board, would add subpart D to part 708a of the agency’s regulations to clarify and make transparent the procedures and requirements currently in place related to combination transactions.
As explained in the Register notice, 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.
The proposed rule also seeks to clarify the scope of section 741.8 of the NCUA’s regulations, which currently requires the agency 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).
Reg lookup: Combination Transactions with Non-Credit Unions; Credit Union Asset Acquisitions