Purchase of Assets and Assumptions of Liabilities

eCFR — Code of Federal Regulations

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ELECTRONIC CODE OF FEDERAL REGULATIONS
e-CFR Data is current as of December 9, 2014
Title 12 → Chapter VII → Subchapter A → Part 741 → Subpart A → §741.8
Title 12: Banks and Banking
PART 741—REQUIREMENTS FOR INSURANCE
Subpart A—Regulations That Apply to Both Federal Credit Unions and Federally Insured StateChartered Credit Unions and That Are Not Codified Elsewhere in NCUA's Regulations
§741.8 Purchase of assets and assumption of liabilities.
(a) Any credit union insured by the National Credit Union Share Insurance Fund (NCUSIF) must
receive approval from the NCUA before purchasing loans or assuming an assignment of deposits,
shares, or liabilities from:
(1) Any credit union that is not insured by the NCUSIF;
(2) Any other financial-type institution (including depository institutions, mortgage banks,
consumer finance companies, insurance companies, loan brokers, and other loan sellers or liability
traders); or
(3) Any successor in interest to any institution identified in paragraph (a)(1) or (a)(2) of this
section.
(b) Approval is not required for:
(1) Purchases of student loans or real estate secured loans to facilitate the packaging of a pool of
loans to be sold or pledged on the secondary market under §701.23(b)(1)(iii) or (iv) of this chapter or
comparable state law for state-chartered credit unions, or purchases of member loans under §701.23
(b)(1)(i) of this chapter or comparable state law for state-chartered credit unions;
(2) Assumption of deposits, shares or liabilities as rollovers or transfers of member retirement
accounts or in which a federally-insured credit union perfects a security interest in connection with an
extension of credit to any member.
(3) Purchases of assets, including loans, or assumptions of deposits, shares, or liabilities by any
credit union insured by the NCUSIF from another credit union insured by the NCUSIF, except a
purchase or assumption as a part of a merger under part 708b; or
(4) Purchases of loan participations as defined in and meeting the requirements of §701.22 of this
chapter.
(c) A credit union seeking approval under paragraph (a) of this section must submit a letter to the
regional office with jurisdiction for the state where the credit union is headquartered. A corporate credit
union seeking approval under paragraph (a) of this section must submit a letter to the Office of
National Examinations and Supervision. The letter must request approval and state the nature of the
transaction and include copies of relevant transaction documents. The NCUA will make a decision to
approve or disapprove the request as soon as possible depending on the complexity of the proposed
transaction. Credit unions should submit a request for approval in sufficient time to close the
transaction.

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eCFR — Code of Federal Regulations

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[70 FR 75725, Dec. 21, 2005, as amended at 75 FR 34622, June 18, 2010; 78 FR 32545, May 31, 2013; 78 FR
37958, June 25, 2013]

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