By Mike Lee
LSCU Director of Regulatory Advocacy
The National Credit Union Administration has a new proposed rule on combination transactions with non-credit unions. This new proposed rule will clarify the procedures and requirements currently in place that relate to combination transactions, including those in which 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).
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Should you wish to discuss this topic further, please contact our Director of Regulatory Advocacy, Mike Lee email@example.com