12 Cfr 741.8 (1-1-18 Ed)

lpowell on DSK54DXVN1OFR with $$_JOB

§ 741.7

12 CFR Ch. VII (1–1–17 Edition)

§ 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

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National Credit Union Administration

§ 741.11

for approval in sufficient time to close
the transaction.

lpowell on DSK54DXVN1OFR with $$_JOB

[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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