Comments due: NCUA (acquisitions, proposed rule)
Comments are due to the National Credit Union Administration (NCUA) on its proposed rule to add regulatory language governing credit unions’ acquisitions of bank assets. The proposal, released Jan. 23, would add subpart D to part 708a of the agency’s regulations. The aim is to clarify and make transparent the procedures and requirements currently in place related to combination transactions. These include transactions where a federally insured credit union (FICU) proposes to assume liabilities from a non-credit union, including a bank; or proposes to merge or consolidate 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 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).