12 CFR Part 708b

National Credit Union Administration

Pt. 708b

selecting a meeting location that can
accommodate the anticipated number
of attendees and is conveniently located. The meeting should also be held
on a day and time suitable to most
members’ schedules. A credit union
should conduct its meeting in accordance with applicable Federal and State
law, its bylaws, Robert’s Rules of Order
or other appropriate parliamentary
procedures, and determine before the
meeting the nature and scope of any
discussion to be permitted.
(d) Voting incentives. Some credit
unions may wish to offer incentives to
members, such as entry to a prize raffle, to encourage participation in the
merger vote. The credit union must exercise care in the design and execution
of such incentives.
(1) The credit union should ensure
that the incentive complies with all
applicable State, Federal, and local
laws.
(2) The incentive should not be unreasonable in size. The cost of the incentive should have a negligible impact
on the credit union’s net worth ratio
and the incentive should not be so
large that it distracts the member
from the purpose of the vote. If the
board desires to use such incentives,
the cost of the incentive should be included in the directors’ deliberation
and determination that the merger is
in the best interests of the credit
union’s members.
(3) The credit union should ensure
that the incentive is available to every
member that votes regardless of how or
when he or she votes. All of the credit
union’s written materials promoting
the incentive to the membership must
disclose to the members, as required by
§ 708a.311 of this part, that they have an
equal opportunity to participate in the
incentive program regardless of whether they vote for or against the merger.
The credit union should also design its
incentives so that they are available
equally to all members who vote, regardless of whether they vote by mail
or in person at the special meeting.
(e) Solicitation of votes. Some credit
unions may wish to contact members
who have not voted and encourage
them to vote on the merger proposal.
NCUA believes, however, that using
credit union employees to solicit votes

is problematic. Employees directed to
solicit votes could easily neglect everyday duties critical to the credit union’s
safe and sound operation. Also, employees may very well feel pressured to
solicit votes for the merger, regardless
of whether or not they support the
merger. Accordingly, NCUA strongly
encourages credit unions to use an
independent third party to solicit votes
rather than diverting credit union employees from their usual duties.

PART 708b—MERGERS OF FEDERALLY-INSURED CREDIT UNIONS;
VOLUNTARY TERMINATION OR
CONVERSION OF INSURED STATUS
Sec.
708b.1
708b.2

Scope.
Definitions.

Subpart A—Mergers
708b.101 Mergers generally.
708b.102 Special provisions for federal insurance.
708b.103 Preparation of merger plan.
708b.104 Submission of merger proposal to
the NCUA.
708b.105 Approval of merger proposal by the
NCUA.
708b.106 Approval of the merger proposal by
members.
708b.107 Certification of vote on merger proposal.
708b.108 Completion of merger.

Subpart B—Voluntary Termination or
Conversion of Insured Status
708b.201 Termination of insurance.
708b.202 Notice to members of proposal to
terminate insurance.
708b.203 Conversion of insurance.
708b.204 Notice to members of proposal to
convert insurance.
708b.205 Modifications to notice and ballot.
708b.206 Share insurance communications
to members.

Subpart C—Forms
708b.301 Conversion of insurance (State
Chartered Credit Union)
708b.302 Conversion of insurance (Federal
Credit Union).
708b.303 Conversion of insurance through
merger.
708b.304 Merger of a federally-insured credit
union into another federally-insured
credit union.

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§ 708b.1

12 CFR Ch. VII (1–1–19 Edition)

AUTHORITY: 12 U.S.C. 1752(7), 1766, 1785, 1786,
1789.
SOURCE: 70 FR 3288, Jan. 24, 2005, unless
otherwise noted.

§ 708b.1

Scope.

(a) Subpart A of this partprescribes
the procedures for merging one or more
credit unions with a continuing credit
union where at least one of the credit
unions is federally-insured.
(b) Subpart B of this partprescribes
the procedures and notice requirements
for termination of federal insurance or
conversion of federal insurance to nonfederal insurance, including termination or conversion resulting from a
merger.
(c) Subpart C prescribes required
forms for use in conversion of federal
insurance to nonfederal insurance.
(d) Nothing in this partrestricts or
otherwise impairs the authority of the
NCUA to approve a merger pursuant to
section 205(h) of the Act.
(e) This part does not address procedures or requirements that may be applicable under state law for a state
credit union.
§ 708b.2

Definitions.

Conducted by an independent entity
means:
(1) The independent entity will receive the ballots directly from voting
members.
(2) After the conclusion of the special
meeting that ends the ballot period,
the independent entity will open all
the ballots in its possession and tabulate the results. The entity must not
open or tabulate any ballots before the
conclusion of the special meeting.
(3) The independent entity will certify the final vote tally in writing to
the credit union and provide a copy to
the NCUA Regional Director. The certification will include, at a minimum,
the number of members who voted, the
number of affirmative votes, and the
number of negative votes. During the
course of the voting period the independent entity may provide the credit
union with the names of members who
have not yet voted, but may not provide any voting results to the credit
union prior to certifying the final vote
tally.

Continuing credit union means the
credit union that will continue in operation after the merger.
Convert, conversion, and converting,
when used in connection with insurance, refer to the act of canceling federal insurance and simultaneously obtaining insurance from another insurance carrier. They mean that after cancellation of federal insurance the credit union will be nonfederally-insured.
Covered person means the chief executive officer or manager (or a person
acting in a similar capacity); each of
the four most highly compensated employees other than the chief executive
officer or manager; and any member of
the board of directors or the supervisory committee.
Federally-insured means insured by
the National Credit Union Administration (NCUA) through the National
Credit Union Share Insurance Fund
(NCUSIF).
Independent entity means a company
with experience in conducting corporate elections. No official or senior
manager of the credit union, or the immediate family members of any official
or senior manager, may have any ownership interest in, or be employed by,
the entity.
Insurance and insured refer to primary share or deposit insurance. These
terms do not include excess share or
deposit insurance as referred to in part
740 of this chapter.
Merger-related financial arrangement
means a material increase in compensation or benefits because of, or in
anticipation of, a merger that any covered person of a merging credit union
has received during the 24 months before the date the boards of directors of
both credit unions approve the merger
plan. It also means a material increase
in compensation or benefits that any
covered person of a merging credit
union will receive in the future because
of the merger. This includes the sum of
all increases in direct and indirect
compensation, such as salary, bonuses,
leave, deferred compensation, early
payout of retirement benefits, or any
other financial rewards, other than
benefits available to all employees of
the continuing credit union on identical terms and conditions. A material

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National Credit Union Administration

§ 708b.101

increase is an increase in value that exceeds the greater of 15 percent of existing compensation or benefits or $10,000.
Merging credit union means the credit
union that will cease to exist as an operating credit union at the time of the
merger.
Nonfederally-insured means insured by
a private or cooperative insurance fund
or guaranty corporation organized or
chartered under state or territorial
law.
Record date means a date announced
by the board of directors of a merging
credit union as the date by which a
person must have been a member of the
merging credit union to be eligible to
vote on a proposed merger.
Regional Director means either the director for the NCUA Regional Office for
the region where a natural person credit union’s main office is located or the
director of the NCUA’s Office of Credit
Union Resources and Expansion. For
corporate credit unions and natural
person credit unions with $10 billion or
more in assets, Regional Director
means the director of the NCUA’s Office of National Examinations and Supervision.
Secret ballot means no credit union
employee or official can determine how
a particular member voted. Credit
union employees and officials are prohibited from assisting members in
completing ballots or handling completed ballots.
Share insurance communication means
any written communication, excluding
the forms in subpart C of this part,
that is made by or on behalf of a federally-insured credit union that is intended to be read by two or more credit
union members and that mentions
share insurance conversion or termination. The term:
(1) Includes communications delivered or made available before, during,
and after the credit union’s board of directors decides to seek conversion or
termination.
(2) Includes, but is not limited to,
communications delivered or made
available by mail, e-mail, and internet
website posting.
(3) Does not include communications
intended to be read only by the credit
union’s own employees or officials.

State credit union means any credit
union organized and operated according to the laws of any state, the several
territories and possessions of the
United States, or the Commonwealth
of Puerto Rico. Accordingly, state authority means the appropriate state or
territorial regulatory or supervisory
authority for any such credit union.
Terminate, termination, and terminating, when used in reference to insurance, refer to the act of canceling federal insurance and mean that the credit union will become uninsured.
Uninsured means there is no share or
deposit insurance available on the
credit union accounts.
[70 FR 3288, Jan. 24, 2005, as amended at 75
FR 80680, Dec. 23, 2010; 75 FR 81393, Dec. 28,
2010; 78 FR 32544, May 31, 2013; 81 FR 76496,
Nov. 3, 2016; 82 FR 60292, Dec. 20, 2017; 83 FR
30310, June 28, 2018]

Subpart A—Mergers
§ 708b.101

Mergers generally.

(a) In any case where a merger will
result in the termination of federal insurance or conversion to nonfederal insurance, the merging credit union must
comply with the provisions of subparts
B and C of this part in addition to this
subpart A.
(b) A federally-insured credit union
must have the prior written approval
of the NCUA before merging with any
other credit union.
(c) Where the continuing credit union
is a federal credit union, it must be in
compliance with the chartering policies of the NCUA.
(d) Where the continuing or merging
credit union is a state credit union, the
merger must be permitted by state law
or authorized by the state authority.
(e) Where both the merging and continuing credit unions are federally-insured and the two credit unions have
overlapping fields of membership, the
continuing credit union must, within
three months after completion of the
merger, either:
(1) Notify all members of the continuing credit union of the potential
loss of insurance coverage if they had
overlapping membership,
(2) Notify all individuals and entities
that were actually members of both

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§ 708b.102

12 CFR Ch. VII (1–1–19 Edition)

credit unions of the potential loss of
insurance coverage, or
(3) Determine which members of both
credit unions may actually have uninsured funds six months after the merger and notify those members of the potential loss of insurance coverage.
§ 708b.102 Special provisions for federal insurance.
(a) Where the continuing credit union
is federally-insured, the NCUSIF will
assess a deposit and a prorated insurance premium (unless waived in whole
or in part for all insured credit unions
during that year) on the additional
share accounts insured as a result of
the merger of a nonfederally-insured or
uninsured credit union with a federally-insured credit union.
(b) Where the continuing credit union
is nonfederally-insured or uninsured
but desires to be federally-insured as of
the date of the merger, it must submit
an application to the appropriate Regional Director when the merging credit union requests approval of the merger proposal. If the Regional Director
approves the merger, the NCUSIF will
assess a deposit and a prorated insurance premium (unless waived in whole
or in part for all insured credit unions
during that year) on any additional
share accounts insured as a result of
the merger.
(c) Where the continuing credit union
is nonfederally-insured or uninsured
and does not make application for insurance, but the merging credit union
is federally-insured, the continuing
credit union is entitled to a refund of
the merging credit union’s NCUSIF deposit and to a refund of the unused portion of the NCUSIF share insurance
premium (if any). If the continuing
credit union is uninsured, the NCUSIF
will make the refund only after expiration of the one-year period of continued insurance coverage noted in paragraph (e) of this section.
(d) Where the continuing credit union
is nonfederally-insured, NCUSIF insurance of the member accounts of a
merging federally-insured credit union
ceases as of the effective date of the
merger.
(e) Where the continuing credit union
is uninsured, NCUSIF insurance of the
member accounts of the merging feder-

ally-insured credit union will continue
for a period of one year, subject to the
restrictions in section 206(d)(1) of the
Act.
§ 708b.103 Preparation of merger plan.
(a) Upon the approval of a proposition for merger by the boards of directors of the credit unions, the two
credit unions must prepare a plan for
the proposed merger that includes:
(1) Current financial statements for
both credit unions;
(2) Current delinquent loan summaries and analyses of the adequacy of
the Allowance for Loan and Lease
Losses account;
(3) Consolidated financial statements, including an assessment of the
generally accepted accounting principles (GAAP) net worth of each credit
union before the merger and the GAAP
net worth of the continuing credit
union after the merger;
(4) Analyses of share values;
(5) Explanation of any proposed share
adjustments, and where the net worth
ratio of the merging credit union is
more than 500 basis points higher than
the net worth ratio of the continuing
credit union, an explanation of the factors considered in establishing the
amount of any proposed adjustment or
in determining no adjustment is necessary;
(6) Explanation of any provisions for
reserves, undivided earnings or dividends;
(7) Description of any merger-related
financial arrangement, as defined in
§ 708b.2;
(8) Provisions with respect to notification and payment of creditors;
(9) Explanation of any changes relative to insurance such as life savings
and loan protection insurance and insurance of member accounts;
(10) Provisions for determining that
all assets and liabilities of the continuing credit union will conform with
the requirements of the Act (where the
continuing credit union is a federal
credit union); and
(11) Proposed charter amendments
(where the continuing credit union is a
federal credit union). These amendments, if any, will usually pertain to
the name of the credit union and the
definition of its field of membership.

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National Credit Union Administration

§ 708b.106

(b) [Reserved]
[70 FR 3288, Jan. 24, 2005, as amended at 75
FR 81394, Dec. 28, 2010]

§ 708b.104 Submission of merger proposal to the NCUA.
(a) Upon approval of the merger plan
by the boards of directors of the credit
unions, the credit unions must submit
the following information to the Regional Director:
(1) The merger plan, as described in
this part;
(2) Resolutions of the boards of directors;
(3) Proposed Merger Agreement;
(4) Proposed Notice of Special meeting of the Members;
(5) Copy of the form of Ballot to be
sent to the members;
(6) Evidence that the state’s supervisory authority approves the merger
proposal (for states that require such
agreement before NCUA approval);
(7) Application and Agreement for Insurance of Member Accounts (for continuing state credit unions desiring to
become federally-insured);
(8) If the merging credit union’s assets on its latest call report are equal
to or greater than the threshold
amount established and published in
the FEDERAL REGISTER annually by the
Federal Trade Commission under 15
U.S.C. 18a(a)(2)(B)(i), a statement
about whether the two credit unions
intend to make a Hart-Scott-Rodino
Act premerger notification filing with
the Federal Trade Commission and, if
not, an explanation why not;
(9) For mergers where the continuing
credit union is not federally-insured
and will not apply for federal insurance:
(i) A written statement from the continuing credit union that it ‘‘is aware
of the requirements of 12 U.S.C.
1831t(b), including all notification and
acknowledgment requirements’’; and
(ii) Proof that the accounts of the
credit union will be accepted for coverage by the nonfederal insurer (if the
credit union will have nonfederal insurance);
(10) Board minutes for the merging
and continuing credit union that reference the merger for the 24 months before the date the boards of directors of

both credit unions approve the merger
plan; and
(11) A certification signed by the
CEOs and Chairmen of the merging
credit union and the continuing credit
union, using the form in § 708b.304(c),
that there are no merger-related financial arrangements to covered persons
other than those disclosed in the notice
required by paragraph (a)(4) of this section.
(b) [Reserved]
[70 FR 3288, Jan. 24, 2005, as amended at 75
FR 81394, Dec. 28, 2010; 83 FR 30310, June 28,
2018]

§ 708b.105 Approval of
posal by the NCUA.

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(a) In any case where the continuing
credit union is federally-insured and
the merging credit union is nonfederally-insured or uninsured, the NCUA
will determine the potential risk to the
NCUSIF.
(b) If the NCUA finds that the merger
proposal complies with the provisions
of this part and does not present an
undue risk to the NCUSIF, it may approve the proposal subject to any other
specific requirements as it may prescribe to fulfill the intended purposes
of the proposed merger. For mergers of
federal credit unions into federally-insured credit unions, if the NCUA determines that the merging credit union is
in danger of insolvency and that the
proposed merger would reduce the risk
or avoid a threatened loss to the
NCUSIF, the NCUA may permit the
merger to become effective without an
affirmative vote of the membership of
the merging credit union otherwise required by § 708b.106 of this part.
(c) NCUA may approve any proposed
charter amendments for a continuing
federal credit union contingent upon
the completion of the merger. All charter amendments must be consistent
with NCUA chartering policy.
[70 FR 3288, Jan. 24, 2005, as amended at 73
FR 30477, May 28, 2008]

§ 708b.106 Approval of the merger proposal by members.
(a) Advance notice of member vote.
Members of the merging credit union
must receive written notice at least 45

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§ 708b.106

12 CFR Ch. VII (1–1–19 Edition)

calendar days, but no more than 90 calendar days, before any member meeting called to vote on the merger proposal.
(b) Contents of member notice. While
the merging credit union may refer
members to attachments for additional
information or explanation, the notice
provided to members pursuant to paragraph (a) of this section must be in the
form set forth in subpart C of this part
and contain the following information:
(1) A statement of the purpose of the
meeting and the time and place;
(2) A statement that members may
vote on the merger proposal in person
or by mail ballot (or electronically, if
the credit union’s Bylaws so permit)
received by the merging credit union
no later than the date and time announced for the member meeting called
to vote on the merger proposal;
(3) A statement about the availability of a website where members of
the merging credit union can share
comments and questions about the
merger pursuant to paragraph (d) of
this section;
(4) A summary of the merger plan, including but not necessarily limited to:
(i) A statement that the merging
credit union does or does not have a
higher net worth percentage than the
continuing credit union;
(ii) A statement as to whether the
members of the merging credit union
will receive a share adjustment or
other distribution of reserves or undivided earnings, including a summary of
reasons for the decision and, at the
merging credit union’s discretion, a
short explanation about the capital
level;
(iii) An explanation of any changes to
ATM access or to services such as life
savings protection insurance or loan
protection insurance;
(iv) If the continuing credit union is
not federally insured, an explanation of
any changes related to federal share insurance; and
(v) A detailed description of all merger-related financial arrangements. This
description must include the recipient’s name and title as well as, at a
minimum, the amount or value of the
merger-related financial arrangement
expressed, where possible, as a dollar
figure;

(5) A statement of the reasons for the
proposed merger; and
(6) A statement identifying the physical locations of the merging credit
union by street address, stating whether each location is to be closed or retained, and a list of branches of the
continuing credit union by street address that are located in reasonable
proximity to the merging credit
union’s locations.
(c) Additional documents. The notice
provided to members pursuant to paragraph (a) of this section shall be accompanied by the following separate
documents:
(1) The current financial statements
for each credit union and a consolidated financial statement for the continuing credit union;
(2) Any additional information or explanatory material that the merging
credit union wishes to provide that
does not detract from the required disclosures and gives further detail to
members regarding information disclosed pursuant to paragraph (b) of this
section; and
(3) A Ballot for Merger Proposal.
(d) Member information. Within 30 calendar days of receiving the notice provided to members pursuant to paragraph (a) of this section, members may
jointly or individually submit a comment about the merger to the NCUA.
The NCUA will post these comments on
a website accessible to credit union
members.
(e) Posting member comments. The
NCUA reserves the right to not post
comments that it reasonably believes:
(1) Are false or misleading with respect to any material fact;
(2) Omit a material fact necessary to
make the statement in the material
not false or misleading;
(3) Relate to a personal claim or personal grievance, or solicit personal
gain or business advantage by or on behalf of any party;
(4) Address any matter, including a
general economic, political, racial, religious, social, or similar cause that is
not related to the proposed merger;
(5) Directly or indirectly and without
expressed factual foundation impugn a
person’s character, integrity, or reputation;

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National Credit Union Administration

§ 708b.201

(6) Directly or indirectly and without
expressed factual foundation make
charges concerning improper, illegal,
or immoral conduct; or
(7) Directly or indirectly and without
expressed factual foundation make
statements impugning the safety and
soundness of the credit union.
(f) Clear and conspicuous disclosures required. Any information required by
paragraph (b) of this section to be disclosed on the notice provided to members pursuant to paragraph (a) of this
section must be legible, written in
plain language, and reasonably understandable by ordinary consumers.
(g) Approval of a proposal to merge. Approval of a proposal to merge a federally-insured credit union into a federally-insured credit union requires the
affirmative vote of a majority of the
members of the merging credit union
who vote on the proposal. Members
must be members as of the record date
to vote. If the continuing credit union
is not federally insured, the requirements of subpart B of this part also
apply, and the merging credit union
must use the appropriate form ballot
and notice in subpart C of this part unless the Regional Director approves the
use of different forms. If the continuing
credit union is federally insured, use of
the sample form notice, ballot, and certification of vote forms in subpart C of
this part will satisfy the requirements
of this subpart.
[83 FR 30310, June 28, 2018]

§ 708b.107 Certification
merger proposal.

of

vote

on

The board of directors of the merging
federal credit union must certify the
results of the membership vote to the
Regional Director within 10 days after
the vote is taken. The certification
must include the total number of members of record of the credit union, the
number who voted on the merger, the
number who voted in favor, and the
number who voted against. If the continuing credit union is nonfederally-insured, the merging credit union must
use the certification form in subpart C
of this part unless the Regional Direc-

tor approves the use of a different
form.
[70 FR 3288, Jan. 24, 2005, as amended at 75
FR 81394, Dec. 28, 2010]

§ 708b.108

Completion of merger.

(a) Upon approval of the merger proposal by the NCUA and by the state supervisory authority (where the continuing or merging credit union is a
state credit union) and by the members
of each credit union where required,
the credit unions may complete the
merger.
(b) Upon completion of the merger,
the board of directors of the continuing
credit union must certify the completion of the merger to the Regional Director within 30 days after the effective
date of the merger.
(c) Upon the NCUA’s receipt of certification that the merger has been
completed, the NCUA will cancel the
charter of the merging federal credit
union (if applicable) and the insurance
certificate of any merging federally-insured credit union.

Subpart B—Voluntary Termination
or Conversion of Insured Status
§ 708b.201

Termination of insurance.

(a) A state credit union may terminate federal insurance, if permitted by
state law, either on its own or by merging into an uninsured credit union.
(b) A federal credit union may terminate federal insurance only by merging
into, or converting its charter to, an
uninsured state credit union.
(c) A majority of the credit union’s
members must approve a termination
of insurance by affirmative vote. The
vote must be taken by secret ballot
and conducted by an independent entity.
(d) Termination of federal insurance
requires the NCUA’s prior written approval. A credit union must notify the
NCUA and request approval of the termination through the Regional Director in writing at least 90 days before
the proposed termination date and
within one year after obtaining the
membership vote. The notice to the
NCUA must include:

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§ 708b.202

12 CFR Ch. VII (1–1–19 Edition)

(1) A written statement from the
credit union that it ‘‘is aware of the requirements of 12 U.S.C. 1831t(b), including all notification and acknowledgment requirements;’’ and
(2) A certification of the member
vote that must include the total number of members of record of the credit
union, the number who voted in favor
of the termination, and the number
who voted against.
(e) The NCUA will approve or disapprove the termination in writing
within 90 days after being notified by
the credit union.
[70 FR 3288, Jan. 24, 2005, as amended at 75
FR 81394, Dec. 28, 2010]

§ 708b.202 Notice to members of proposal to terminate insurance.
(a) When the board of directors of a
federally-insured credit union adopts a
resolution proposing to terminate federal insurance, including termination
due to a merger or conversion of charter, it must provide its members with
written notice of the proposal to terminate and of the date set for the membership vote. The first written communication following the resolution that
is made by or on behalf of the credit
union and that informs the members
that the credit union will seek termination is the notice of the proposal to
terminate. This notice must:
(1) Inform the members of the requirement for a membership vote and
the date for the vote;
(2) Explain that the insurance provided by the NCUA is federal insurance
and is backed by the full faith and
credit of the United States government; and
(3) Include a conspicuous statement
that if the termination or merger is approved, and the credit union, or the
continuing credit union in the case of a
merger, subsequently fails, the federal
government does not guarantee the
member will get his or her money
back.
(b) The credit union must deliver the
notice in person to each member, or
mail it to each member at the address
for the member as it appears on the
records of the credit union, not more
than 30 nor less than 7 days before the
date of the vote. The membership must
be given the opportunity to vote by

mail ballot. The credit union may provide the notice of the proposal and the
ballot to members at the same time.
(c) If the membership and the NCUA
approve the proposition for termination of insurance, the credit union
must give the members prompt and
reasonable notice of termination.
§ 708b.203 Conversion of insurance.
(a) A federally-insured state credit
union may convert to nonfederal insurance, if permitted by state law, either
on its own or by merging into a nonfederally-insured credit union.
(b) A federal credit union may convert to nonfederal insurance only by
merging into, or converting its charter
to, a nonfederally-insured state credit
union.
(c) Conversion to nonfederal insurance requires the prior written approval of the NCUA. After the credit
union board of directors resolves to
seek a conversion, the credit union
must notify the Regional Director
promptly, in writing, of the desired
conversion and request NCUA approval
of the conversion. The notification
must be in the form specified in subpart C of this part, unless the Regional
Director approves a different form. The
credit union must provide this notification and request for approval to the
Regional Director at least 14 days before the credit union notifies its members and seeks their vote and at least
90 days before the proposed conversion
date. NCUA will approve or disapprove
the conversion as described in paragraph (g) of this section.
(d) Approval of a conversion of Federal to nonfederal insurance requires
the affirmative vote of a majority of
the credit union’s members who vote
on the proposition, provided at least 20
percent of the total membership participates in the voting. The vote must
be taken by secret ballot and conducted by an independent entity.
(e) For all conversions, the notice to
the NCUA must include:
(1) A written statement from the
credit union that ‘‘it is aware of the requirements of 12 U.S.C. 1831t(b), including all notification and acknowledgment requirements;’’ and
(2) Proof that the nonfederal insurer
is authorized to issue share insurance

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National Credit Union Administration

§ 708b.204

in the state where the credit union is
located and that the insurer will insure
the credit union.
(f) The board of directors of the credit union and the independent entity
that conducts the membership vote
must certify the results of the membership vote to the NCUA within 14 calendar days after the deadline for receipt of votes. The certification must
include the total number of members of
record of the credit union, the number
who voted on the conversion, the number who voted in favor of the conversion, and the number who voted
against. The certification must be in
the form specified in subpart C of this
part.
(g) Generally, the NCUA will conditionally approve or disapprove the conversion in writing within 14 days after
receiving the certification of the vote.
The credit union must complete the
conversion within six months of the
date of conditional approval. If a credit
union fails to complete the conversion
within six months the Regional Director will disapprove the conversion. The
credit union’s board of directors, if it
still wishes to convert, must then
adopt a new conversion proposal and
solicit another member vote.
(h) For conversions by merger, the
merging credit unions must follow the
procedures specified in subparts A and
B of this part and use the forms specified in subpart C of this part. In the
event the procedures of subpart A and
B conflict, the credit union must follow
subpart B.
[70 FR 3288, Jan. 24, 2005, as amended at 73
FR 30477, May 28, 2008; 75 FR 81394, Dec. 28,
2010]

§ 708b.204 Notice to members of proposal to convert insurance.
(a) When the board of directors of a
federally-insured credit union adopts a
resolution proposing to convert from
federal to nonfederal insurance, including an insurance conversion associated
with a merger or conversion of charter,
it must provide its members with written notice of the proposal to convert
insurance and of the date set for the
membership vote. The first written
communication following this resolution that is made by or on behalf of the
credit union and that informs the

members that the credit union will
seek conversion of insurance is the notice of the proposal to convert. This
notice must:
(1) Inform the members of the requirement for a membership vote and
the date for the vote;
(2) Explain that the insurance provided by the NCUA is federal insurance
and is backed by the full faith and
credit of the United States government, while the insurance provided by
the nonfederal insurer is not guaranteed by the federal or any state government;
(3) Include a conspicuous statement
that if the conversion or merger is approved, and the credit union, or the
continuing credit union in the case of a
merger, subsequently fails, the federal
government does not guarantee the
member will get his or her money
back; and
(4) Be in the form set forth in subpart
C of this part, unless the Regional Director approves a different form.
(b) The credit union must deliver the
notice in person to each member or
mail it to each member at the address
for the member as it appears on the
records of the credit union, not more
than 30 nor less than 7 days before the
date for the vote. The credit union
must give the membership the opportunity to vote by mail ballot. The form
of the ballot must be as set forth in
subpart C of this part, unless the Regional Director approves the use of a
different form. The notice of the proposal and the ballot may be provided to
the members at the same time.
(c) If the membership and the NCUA
approve the proposition for conversion
of insurance, the credit union will give
prompt and reasonable notice to the
membership. The credit union must deliver the notice at least 30 days before
the effective date of the conversion.
The notice must identify the effective
date of the conversion, and the first
page must also include a conspicuous
statement (i.e., in bold and no smaller
than any other font size used in the notice) that:
(1) The conversion will result in the
loss of federal share insurance, and
(2) The credit union will, at any time
before the effective date of conversion,
permit all members who have share

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§ 708b.205

12 CFR Ch. VII (1–1–19 Edition)

certificates or other term accounts to
close the federally-insured portion of
those accounts without an early withdrawal penalty.
§ 708b.205 Modifications to notice and
ballot.
(a) Converting credit unions will use
the form notice and ballot as provided
in subpart C of this part unless the Regional Director approves the use of a
different form.
(b) A converting credit union will
provide the Regional Director with a
copy of the notice and ballot, including
any reasons for conversion and estimated costs of conversion, on or before
the date the notice and ballot are
mailed to the members.
(c) Federally-insured state credit
unions may include additional language in the notice and ballot regarding state requirements for mergers,
where appropriate.
§ 708b.206 Share insurance communications to members.
(a) Every share insurance communication must comply with § 740.2 of
this chapter, which, in part, prohibits
federally-insured credit unions from
making any representation that is inaccurate or deceptive in any particular.
(b) Every share insurance communication must contain the following
conspicuous statement: ‘‘IF YOU ARE
A MEMBER OF THIS CREDIT UNION,
YOUR ACCOUNTS ARE CURRENTLY
INSURED BY THE NATIONAL CREDIT UNION ADMINISTRATION, A FEDERAL AGENCY. THIS FEDERAL INSURANCE IS BACKED BY THE FULL
FAITH AND CREDIT OF THE UNITED
STATES GOVERNMENT. IF THE
CREDIT UNION CONVERTS TO PRIVATE INSURANCE WITH [insert name
of private share insurer] AND THE
CREDIT UNION FAILS, THE FEDERAL GOVERNMENT DOES NOT
GUARANTEE THAT YOU WILL GET
YOUR MONEY BACK.’’ The statement
must:
(1) Appear on the first page of the
communication where conversion is
discussed and, if the communication is
on an Internet Web site posting, the
credit union must make reasonable efforts to make it visible without

scrolling; and (2) Must be in capital letters, bolded, offset from the other text
by use of a border, and at least one font
size larger than any other text (exclusive of headings) used in the communication.
(c) Every share insurance communication about share insurance termination must contain the following conspicuous statement: ‘‘IF YOU ARE A
MEMBER OF THIS CREDIT UNION,
YOUR ACCOUNTS ARE CURRENTLY
INSURED BY THE NATIONAL CREDIT UNION ADMINISTRATION, A FEDERAL AGENCY. THIS FEDERAL INSURANCE IS BACKED BY THE FULL
FAITH AND CREDIT OF THE UNITED
STATES GOVERNMENT. IF THE
CREDIT UNION TERMINATES ITS
FEDERAL INSURANCE AND THE
CREDIT UNION FAILS, THE FEDERAL GOVERNMENT DOES NOT
GUARANTEE THAT YOU WILL GET
YOUR MONEY BACK.’’ The statement
must:
(1) Appear on the first page of the
communication where termination is
discussed and, if the communication is
on an internet website posting, the
credit union must make reasonable efforts to make it visible without
scrolling; and
(2) Must be in capital letters, bolded,
offset from the other text by use of a
border, and at least one font size larger
than any other text (exclusive of headings) used in the communication.
(d) A converting credit union must
provide the Regional Director with a
copy of any share insurance communication that the credit union will
make during the voting period. The Regional Director must receive the copy
at or before the time the credit union
makes it available to members. The
converting credit union must inform
the Regional Director when the communication is to be made, to which
members it will be directed, and how it
will be disseminated. For purposes of
this section, the voting period begins
on the date of the board of director’s
resolution to seek conversion or termination and ends on the date the member voting closes.
(e) The Regional Director may take
appropriate action, including disapproving a conversion, if he or she determines that a converting credit

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§ 708b.301

union, by inclusion or omission of information in a share insurance communication, materially mislead or misinformed its membership. For example,
the Regional Director will treat any
share insurance communication that
compares the relative strength, safety,
or claims paying ability of a private insurer with that of the National Credit
Union Share Insurance Fund as materially misleading if the comparison fails
to mention that the federal insurance
provided by the NCUA is backed by the
full faith and credit of the United
States government.
[70 FR 3288, Jan. 24, 2005, as amended at 75
FR 81394, Dec. 28, 2010]

Subpart C—Forms
§ 708b.301 Conversion of insurance
(State Chartered Credit Union).
Unless the Regional Director approves the use of different forms, a
state chartered credit union must use
the forms in this section in connection
with a conversion to nonfederal insurance.
(a) Form letter notifying NCUA of intent to convert:
(insert name), NCUA Regional Director
(insert address of NCUA Regional Director)
Re: Notice of Intent to Convert to Private
Share Insurance
Dear Director (insert name):
In accordance with federal law at title 12,
United States Code Section 1785(b)(1)(D), I
request the National Credit Union Administration approve the conversion of (insert
name of credit union) from federal share insurance to private primary share insurance
with (insert name of private insurance company).
On (insert date), the board of directors of
(insert name of credit union) resolved to pursue the conversion from federal insurance to
private insurance. A copy of the resolution is
enclosed.
On (insert date), the credit union plans to
solicit the vote of our members on the conversion. The credit union will employ (insert
name, address, and telephone number of
independent entity) to conduct the member
vote. The credit union will use the form notice and ballot required by NCUA regulations, and will certify the results to NCUA as
required by NCUA regulations.
Aside from the notice and ballot, the credit
union (does)(does not) intend to provide its
members with additional written information about the conversion. I understand that

NCUA regulations forbid any communications to members, including communications
about NCUA insurance or private insurance,
that are inaccurate or deceptive.
(Insert name of State) allows credit unions
to obtain primary share insurance from (insert name of private insurance company). I
have enclosed a copy of a letter from (insert
name and title of state regulator) establishing that (insert name of private insurer)
has the authority to provide (insert name of
credit union) with primary share insurance.
I have enclosed a copy of a letter from (insert name of private insurer) indicating it
has accepted (insert name of credit union)
for primary share insurance and will insure
the credit union immediately upon the date
that it loses its federal share insurance.
I am aware of the requirements of 12 U.S.C.
1831t(b), including all notification and acknowledgment requirements.
The point of contact for conversion matters is (insert name and title of credit union
employee), who can be reached at (insert
telephone number).
Sincerely,
(signature)
Chief Executive Officer.
Enclosures

(b) Form notice to members of intent
to convert and special meeting of members:
NOTICE OF PROPOSAL TO CONVERT TO NONFEDERALLY-INSURED
STATUS AND SPECIAL
MEETING OF MEMBERS
(INSERT NAME OF CONVERTING CREDIT UNION)
On (insert date), the board of directors of
your credit union approved a proposition to
convert from federal share (deposit) insurance to private insurance. You are encouraged to attend a special meeting of our credit union at (insert address) on (insert time
and date) to address this proposition.
PURPOSE OF MEETING
The meeting has two purposes:
1. To consider and act upon a proposal to
convert your account insurance from federal
insurance to private insurance.
2. To approve the action of the Board of Directors in authorizing the officers of the
credit union to carry out the proposed conversion.
INSURANCE CONVERSION
Currently, your accounts have share insurance provided by the National Credit Union
Administration, an agency of the federal
government. The basic federal coverage is up
to $100,000, but accounts may be structured
in different ways, such as joint accounts,
payable-on-death accounts, or IRA accounts,

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§ 708b.301

12 CFR Ch. VII (1–1–19 Edition)

to achieve federal coverage of much more
than $100,000. If the conversion is approved,
your federal insurance will terminate on the
effective date of the conversion. Instead,
your accounts in the credit union will be insured up to $(insert dollar amount) by (insert
name of insurer), a corporation chartered by
the State of (insert name of State). The fed-

eral insurance provided by the National
Credit Union Administration is backed by
the full faith and credit of the United States
government. The private insurance you will
receive from (insert name of insurer), however, is not guaranteed by the federal or any
state or local government.

IF THIS CONVERSION IS APPROVED, AND THE (insert name of credit
union) FAILS, THE FEDERAL GOVERNMENT DOES NOT GUARANTEE YOU
WILL GET YOUR MONEY BACK.

Also, because this conversion, if approved,
would result in the loss of federal share insurance, the credit union will, at any time
between the approval of the conversion and
the effective date of conversion and upon request by the member, permit all members
who have share certificates or other term accounts to close the federally-insured portion
of those accounts without an early withdrawal penalty. (This is an optional sentence. It may be deleted without the approval of the Regional Director. The members must be informed about this right, however, as described in 12 CFR 708b.204(c).)
The board of directors has concluded that
the proposed conversion is desirable for the
following reasons: (insert reasons). (This is
an optional paragraph. It may be deleted
without the prior approval of the Regional
Director.)
The proposed conversion will result in the
following one-time cost associated with the
conversion: (List the total estimated dollar
amount, including (1) the cost of conducting
the vote, (2) the cost of changing the credit
union’s name and insurance logo, and (3) attorney and consultant fees.)
The conversion must have the approval of
a majority of members who vote on the proposal, provided at least 20 percent of the
total membership participates in the voting.
Enclosed with this Notice of Special Meeting is a ballot. If you cannot attend the
meeting, please complete the ballot and return it to (insert name and address of independent entity conducting the vote) by no

later than (insert time and date). To be
counted, your ballot must reach us by that
date and time.
By order of the board of directors.
(signature of Board Presiding Officer)
(insert title and date)

(c) Form ballot:
BALLOT FOR CONVERSION TO NONFEDERALLYINSURED STATUS
(INSERT NAME OF CONVERTING CREDIT UNION)
Name of Member: (insert name)
Account Number: (insert account number)
The credit union must receive this ballot
by (insert date and time for vote). Please
mail or bring it to: (Insert name of independent entity and address).
I understand if the conversion of the (insert name of credit union) is approved, the
National Credit Union Administration share
(deposit) insurance I now have, up to $100,000,
or possibly more if I use different account
structures, will terminate upon the effective
date of the conversion. Instead, my shares in
the (insert name of credit union) will be insured up to $(insert dollar amount) by (insert
name of insurer), a corporation chartered by
the State of (insert name of state). The federal insurance provided by the National
Credit Union Administration is backed by
the full faith and credit of the United States
Government. The private insurance provided
by (insert name of insurer) is not.

I FURTHER UNDERSTAND THAT IF THIS CONVERSION IS APPROVED
AND THE (insert name of credit union) FAILS, THE FEDERAL
GOVERNMENT DOES NOT GUARANTEE THAT I WILL GET MY MONEY
BACK.

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§ 708b.302

I vote on the proposal as follows (check
one box):
[ ] Approve the conversion to private insurance and authorize the Board of Directors
to take all necessary action to accomplish
the conversion.
[ ] Do not approve the conversion to private insurance.
Signed: lllllllllllllllllll
(Insert printed member’s name)
Date: llllllllllllllllllll

(d) Form certification of member
vote to NCUA:
CERTIFICATION OF VOTE ON CONVERSION TO
NONFEDERALLY-INSURED STATUS
We, the undersigned officers of the (insert
name of converting credit union), certify the
completion of the following actions:
1. At a meeting on (insert date), the Board
of Directors adopted a resolution to seek the
conversion of our primary share insurance
coverage from NCUA to (insert name of private insurer).
2. Not more than 30 nor less than 7 days before the date of the vote, copies of the notice
of special meeting and the ballot, as approved by the National Credit Union Administration, were mailed to our members.
3. The credit union arranged for the conduct of a special meeting of our members at
the time and place announced in the Notice
to consider and act upon the proposed conversion.
4. At the special meeting, the credit union
arranged for an explanation of the conversion to the members present at the special
meeting.
5. The (insert name), an entity independent
of the credit union, conducted the membership vote at the special meeting. The members voted as follows:
(insert) Number of total members
(insert) Number of members present at the
special meeting
(insert) Number of members present who
voted in favor of the conversion
(insert) Number of members present who
voted against the conversion
(insert) Number of additional written ballots in favor of the conversion
(insert) Number of additional written ballots opposed to the conversion
(insert ‘‘20% or more’’) OR (insert ‘‘Less
than 20%’’) of the total membership voted.
Of those who voted, a majority voted (insert
‘‘in favor of’’) OR (‘‘against’’) conversion.
The action of the members at the special
meeting was recorded in the minutes.
This certification signed the (insert date).
(signature of Board Presiding Officer)
(insert typed name and title)
(signature of Board Secretary)
(insert typed name and title)

I (insert name), an officer of the (insert
name of independent entity that conducted
the vote), hereby certify that the information recorded in paragraph 5 above is accurate.
This certification signed the (insert date):
(signature of officer of independent entity)
(typed name, title, and phone number)
[70 FR 3288, Jan. 24, 2005, as amended at 73
FR 30477, May 28, 2008]

§ 708b.302 Conversion of insurance
(Federal Credit Union).
Unless the Regional Director approves the use of different forms, a federal credit union must use the following forms in this section in connection with a conversion to a nonfederally-insured state charter.
(a) Form letter notifying NCUA of intent to convert:
(insert name), NCUA Regional Director
(insert address of NCUA Regional Director)
Re: Notice of Intent To Convert to State
Charter and to Private Share Insurance
Dear Director (insert name):
In accordance with federal law at title 12,
United States Code Section 1785(b)(1)(D), I
request the National Credit Union Administration approve the conversion of (insert
name of federal credit union) to a state charter in (insert name of state) and from federal
share insurance to private primary share insurance with (insert name of private insurance company).
On (insert date), the board of directors of
(insert name of credit union) resolved to pursue the charter conversion and the conversion from federal insurance to private insurance. A copy of the resolution is enclosed.
On (insert date), the credit union plans to
solicit the vote of our members on the conversion. The credit union will employ (insert
name, address, and telephone number of
independent entity) to conduct the vote. The
credit union will use the form notice and ballot required by NCUA regulations, and will
certify the results to NCUA as required by
NCUA regulations.
Aside from the notice and ballot, the credit
union (does)(does not) intend to provide our
members with additional written information about the conversion. I understand that
NCUA regulations forbid any communications to members, including communications
about NCUA insurance or private insurance,
that are inaccurate or deceptive.
I have enclosed a copy of a letter from (insert name and title of state regulator) indicating approval of our conversion to a state
charter.
(Insert name of State) allows credit unions
to obtain primary share insurance from (insert name of private insurance company). I

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12 CFR Ch. VII (1–1–19 Edition)

have enclosed a copy of a letter from (insert
name and title of state regulator) establishing that (insert name of private insurer)
has the authority to provide (insert name of
credit union), after conversion to a state
charter, with primary share insurance.
I have enclosed a copy of a letter from (insert name of private insurer) indicating it
has accepted (insert name of credit union)
for primary share insurance and will insure
the credit union immediately upon the date
that it loses its federal share insurance.
I am aware of the requirements of 12 U.S.C.
1831t(b), including all notification and acknowledgment requirements.
Enclosed you will also find other information required by NCUA’s Chartering and
Field of Membership Manual, Chapter 4,
§ III.C.
The point of contact for conversion matters is (insert name and title of credit union
employee), who can be reached at (insert
telephone number).
Sincerely,
(signature),
Chief Executive Officer.
Enclosures

(b) Form notice to members of intent
to convert and special meeting of members:
NOTICE OF PROPOSAL TO CONVERT TO A STATE
CHARTER AND TO NONFEDERALLY-INSURED
STATUS AND SPECIAL MEETING OF MEMBERS

(INSERT NAME OF CONVERTING CREDIT UNION)
On (insert date), the board of directors of
your credit union approved a proposition to
convert from federal share (deposit) insurance to private insurance and to convert

from a federal credit union to a state-chartered credit union. You are encouraged to attend a special meeting of our credit union at
(insert address) on (insert time and date) to
address this proposition.
PURPOSE OF MEETING
The meeting has two purposes:
1. To consider and act upon a proposal to
convert your credit union from a federal
charter to a state charter and your account
insurance from federal insurance to private
insurance.
2. To approve the action of the Board of Directors in authorizing the officers of the
credit union to carry out the proposed conversion.
INSURANCE CONVERSION
Currently, your accounts have share insurance provided by the National Credit Union
Administration, an agency of the federal
government. The basic federal coverage is up
to $100,000, but accounts may be structured
in different ways, such as joint accounts,
payable-on-death accounts, or IRA accounts,
to achieve federal coverage of much more
than $100,000. If the conversion is approved,
your federal insurance will terminate on the
effective date of the conversion. Instead,
your accounts in the credit union will be insured up to $(insert dollar amount) by (insert
name of insurer), a corporation chartered by
the State of (insert name of State). The federal insurance provided by the National
Credit Union Administration is backed by
the full faith and credit of the United States
government. The private insurance you will
receive from (insert name of insurer), however, is not guaranteed by the federal or any
state or local government.

IF THIS CONVERSION IS APPROVED, AND THE (insert name of credit
union) FAILS, THE FEDERAL GOVERNMENT DOES NOT GUARANTEE YOU
WILL GET YOUR MONEY BACK.

Also, because this conversion, if approved,
would result in the loss of federal share insurance, the credit union will, at any time
between the approval of the conversion and
the effective date of conversion and upon request of the member, permit all members
who have share certificates or other term accounts to close the federally-insured portion
of those accounts without an early withdrawal penalty. (This is an optional sentence. It may be deleted without the approval of the Regional Director. The mem-

bers must be informed about this right, however, as described in 12 CFR 708b.204(c).)
The board of directors has concluded that
the proposed conversion is desirable for the
following reasons: (Insert reasons). (This is
an optional paragraph. It may be deleted
without the approval of the Regional Director.).
The proposed conversion will result in the
following one-time cost associated with the
conversion: (List the total estimated dollar
amount, including (1) the cost of conducting
the vote, (2) the cost of changing the credit

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§ 708b.302

union’s name and insurance logo, and (3) attorney and consultant fees.)
The conversion must have the approval of
a majority of members who vote on the proposal, provided at least 20 percent of the
total membership participates in the voting.
Enclosed with this Notice of Special Meeting is a ballot. If you cannot attend the
meeting, please complete the ballot and return it to (insert name and address of independent entity conducting the vote) by no
later than (insert time and date). To be
counted, your ballot must reach us by that
date and time.
By order of the board of directors.
(signature of Board Presiding Officer)
(insert title and date)

(c) Form ballot:
BALLOT FOR CONVERSION TO STATE CHARTER
AND NONFEDERALLY-INSURED STATUS

Account Number: (insert account number)
The credit union must receive this ballot
by (insert date and time for vote). Please
mail or bring it to: (Insert name of independent entity and address).
I understand if the conversion of the (insert name of credit union) is approved, the
National Credit Union Administration share
(deposit) insurance I now have, up to $100,000,
or possibly more if I use different accounts
structures, will terminate upon the effective
date of the conversion. Instead, my shares in
the (insert name of credit union) will be insured up to $(insert dollar amount) by (insert
name of insurer), a corporation chartered by
the State of (insert name of state). The federal insurance provided by the National
Credit Union Administration is backed by
the full faith and credit of the United States
Government. The private insurance provided
by (insert name of insurer) is not.

(INSERT NAME OF CONVERTING CREDIT UNION)
Name of Member: (insert name)

I FURTHER UNDERSTAND THAT, IF THIS CONVERSION IS APPROVED
AND THE (insert name of credit union) FAILS, THE FEDERAL
GOVERNMENT DOES NOT GUARANTEE THAT I WILL GET MY MONEY
BACK.

I vote on the proposal as follows (check
one box):
[ ] Approve the conversion of charter and
conversion to private insurance and authorize the Board of Directors to take all necessary action to accomplish the conversion.
[ ] Do not approve the conversion of charter and the conversion to private insurance.
Signed:
Date:

lllllllllllllllllll
(Insert printed member’s name)
llllllllllllllllllll

(d) Form certification to NCUA of
member vote:
CERTIFICATION OF VOTE ON CONVERSION TO
STATE CHARTER AND NONFEDERALLY-INSURED STATUS
We, the undersigned officers of the (insert
name of converting credit union), certify the
completion of the following actions:
1. At a meeting on (insert date), the Board
of Directors adopted a resolution to seek the
conversion of our credit union to a state
charter and the conversion of our primary
share insurance coverage from NCUA to (insert name of private insurer).

2. Not more than 30 nor less than 7 days before the date of the vote, copies of the notice
of special meeting and ballot, as approved by
the National Credit Union Administration,
were mailed to our members.
3. The credit union arranged for the conduct of a special meeting of our members at
the time and place announced in the Notice
to consider and act upon the proposed conversion.
4. At the special meeting, the credit union
arranged for an explanation of the conversion to the members present at the special
meeting.
5. The (insert name), an entity independent
of the credit union, conducted the membership vote at the special meeting. The members voted as follows:
(insert) Number of total members
(insert) Number of members present at the
special meeting
(insert) Number of members present who
voted in favor of the conversion
(insert) Number of members present who
voted against the conversion
(insert) Number of additional written ballots in favor of the conversion

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§ 708b.303

12 CFR Ch. VII (1–1–19 Edition)

(insert) Number of additional written ballots opposed to the conversion
(insert ‘‘20% or more’’) OR (insert ‘‘Less
than 20%’’) of the total membership voted.
Of those who voted, a majority voted (inset
‘‘in favor of’’) OR (‘‘against’’) conversion.
The action of the members at the special
meeting was recorded in the minutes.
This certification signed the (insert date).
(signature of Board Presiding Officer)
(insert typed name and title)
(signature of Board Secretary)
(insert typed name and title)
I (insert name), an officer of the (insert
name of independent entity that conducted
the vote), hereby certify that the information recorded in paragraph 5 above is accurate.
This certification signed the (insert date):
(signature of officer of independent entity)
(typed name, title, and phone number)
[70 FR 3288, Jan. 24, 2005, as amended at 73
FR 30477, May 28, 2008; 75 FR 34621, June 18,
2010]

posit) insurance to private insurance. You
are encouraged to attend a special meeting
of our credit union at (insert address) on (insert time and date).
PURPOSE OF MEETING
The meeting has two purposes:
1. To consider and act upon a proposal to
merge our credit union with (insert name of
continuing credit union), the continuing
credit union.
2. To approve the action of the Board of Directors of our credit union in authorizing the
officers of the credit union, subject to member approval, to carry out the proposed
merger.
If this merger is approved, our credit union
will transfer all its assets and liabilities to
the continuing credit union. As a member of
our credit union, you will become a member
of the continuing credit union. On the effective date of the merger, you will receive
shares in the continuing credit union for the
shares you own now in our credit union.
INSURANCE CONVERSION

§ 708b.303 Conversion of insurance
through merger.
Unless the Regional Director approves the use of different forms, a federally-insured credit union that is
merging into a nonfederally-insured
credit union must use the forms in this
section.
(a) Form notice to members of intent
to merge and convert and special meeting of members:
NOTICE OF SPECIAL MEETING ON PROPOSAL TO
MERGE AND CONVERT TO NONFEDERALLY-INSURED STATUS
(INSERT NAME OF MERGING CREDIT UNION)
On (insert date), the Board of Directors of
your credit union approved a proposition to
merge with (insert name of continuing credit
union) and to convert from federal share (de-

Currently, your accounts have share insurance provided by the National Credit Union
Administration, an agency of the federal
government. The basic federal coverage is up
to $100,000, but accounts may be structured
in different ways, such as joint accounts,
payable-on-death accounts, or IRA accounts,
to achieve federal coverage of much more
than $100,000. If the merger is approved, your
federal insurance will terminate on the effective date of the merger. Instead, your accounts in the credit union will be insured up
to $(insert dollar amount) by (insert name of
insurer), a corporation chartered by the
State of (insert name of State). The federal
insurance provided by the National Credit
Union Administration is backed by the full
faith and credit of the United States government. The private insurance you will receive
from (insert name of insurer), however, is
not guaranteed by the federal or any state or
local government.

IF THIS MERGER IS APPROVED AND THE (insert name of continuing
credit union) FAILS, THE FEDERAL GOVERNMENT DOES NOT
GUARANTEE YOU WILL GET YOUR MONEY BACK.

Also, because this merger, if approved,
would result in the loss of federal share insurance, the (insert name of merging credit
union) will, at any time between the approval of the merger and the effective date of
merger and upon request of the member, permit all members who have share certificates

or other term accounts to close the federally-insured portion of those accounts without an early withdrawal penalty. (This is an
optional sentence. It may be deleted without
the approval of the Regional Director. The
members must be informed about this right,
however, as described in 12 CFR 708b.204(c).)

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National Credit Union Administration

§ 708b.303

OTHER INFORMATION RELATED TO THE
PROPOSED MERGER
The directors of the participating credit
unions carefully analyzed the assets and liabilities of the participating credit unions
and appraised each credit union’s share values. The appraisal of the share values appears on the attached individual and consolidated financial statements of the participating credit unions.
The directors of the participating credit
unions have concluded that the proposed
merger is desirable for the following reasons:
(insert reasons)
The Board of Directors of our credit union
believes the merger should include/not include an adjustment in shares for the following reasons: (insert reasons)
The main office of the continuing credit
union will be as follows: (insert location)
The branch office(s) of the continuing credit union will be as follows: (insert locations)
The merger must have the approval of a
majority of members who vote on the proposal, provided at least 20 percent of the
total membership participates in the voting.
Enclosed with this Notice of Special Meeting is a Ballot for Merger Proposal and Conversion to Nonfederally-insured Status. If
you cannot attend the meeting, please complete the ballot and return it to (insert name
of independent entity conducting vote) at
(insert mailing address) by no later than (insert date and time). To be counted, your ballot must reach (insert name of independent

entity conducting vote) by the date and time
announced for the meeting.
By order of the board of directors.
(signature of Board Presiding Officer)
(insert name and title of Board Presiding Officer) (insert date)

(b) Form ballot:
BALLOT FOR MERGER PROPOSAL AND CONVERSION TO NONFEDERALLY-INSURED STATUS
Name of Member: (insert name)
Account Number: (insert account number)
The credit union must receive this ballot
by (insert date and time for vote). Please
mail or bring it to: (Insert name of independent entity and address)
I understand if the merger or conversion of
the (insert name of merging credit union)
into the (insert name of continuing credit
union) is approved, the National Credit
Union Administration share (deposit) insurance I now have, up to $100,000, or possibly
more if I use different account structures,
will terminate upon the effective date of the
conversion. Instead, my shares in the (insert
name of credit union) will be insured up to
$(insert dollar amount) by (insert name of
insurer), a corporation chartered by the
State of (insert name of state). The federal
insurance provided by the National Credit
Union Administration is backed by the full
faith and credit of the United States Government. The private insurance provided by (insert name of insurer) is not.

I FURTHER UNDERSTAND THAT, IF THIS MERGER IS APPROVED AND
THE (insert name of continuing credit union) FAILS, THE FEDERAL
GOVERNMENT DOES NOT GUARANTEE THAT I WILL GET MY MONEY
BACK.

I vote on the proposal as follows (check
one box):
[ ] Approve the merger and the conversion
to private insurance and authorize the Board
of Directors to take all necessary action to
accomplish the merger and conversion.
[ ] Do not approve the merger and the
conversion to private insurance.
Signed:
Date:

lllllllllllllllllll
(Insert printed member’s name)
llllllllllllllllllll

(c) Form certification of vote:

CERTIFICATION OF VOTE ON MERGER PROPOSAL
AND
CONVERSION TO NONFEDERALLY-INSURED STATUS OF THE (INSERT NAME OF
MERGING CREDIT UNION)
We, the undersigned officers of the (insert
name of merging credit union), certify the
completion of the following actions:
1. At a meeting on (insert date), the Board
of Directors adopted a resolution approving
the merger of our credit union with (insert
name of continuing credit union).
2. Not more than 30 nor less than 7 days before the date of the vote, copies of the notice

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§ 708b.304

12 CFR Ch. VII (1–1–19 Edition)

of special meeting and the ballot, as approved by the National Credit Union Administration, and a copy of the merger plan announced in the notice, were mailed to our
members.
3. The credit union arranged for the conduct of a special meeting of our members at
the time and place announced in the Notice
to consider and act upon the proposed merger.
4. At the special meeting, the credit union
arranged for an explanation of the merger
proposal and any changes in federally-insured status to the members present at the
special meeting.
5. The (insert name), and entity independent of the credit union, conducted the
membership vote at the special meeting. At
least 20 percent of our total membership
voted and a majority of voting members
favor the merger as follows:
(insert) Number of total members
(insert) Number of members present at the
special meeting
(insert) Number of members present who
voted in favor of the merger
(insert) Number of members present who
voted against the merger
(insert) Number of additional written ballots in favor of the merger
(insert) Number of additional written ballots opposed to the merger
6. The action of the members at the special
meeting was recorded in the minutes.
This certification signed the (insert date):
(signature of Board Presiding Officer)
(insert typed name and title)
(signature of Board Secretary)
(insert typed name and title)
I (insert name), an officer of the (insert
name of independent entity that conducted
the vote), hereby certify that the information recorded in paragraph 5 above is accurate.
This certification signed the (insert date):
(signature of officer of independent entity)
(typed name, title, and phone number)
[70 FR 3288, Jan. 24, 2005, as amended at 73
FR 30477, May 28, 2008]

§ 708b.304 Merger of a federally-insured credit union into another federally-insured credit union.
(a) Merger resolution for continuing
credit union, NCUA 6302. The continuing
credit union’s board of directors must
complete this form after it votes to
merge with the merging credit union.
The merger package required by
§ 708b.104 must include merger resolutions from both the merging and continuing credit unions.

MERGER RESOLUTION (CONTINUING CREDIT
UNION)
RESOLUTION
The Board of Directors believes our credit
union should merge with [name of merging
credit union] (merging credit union). Our
credit union will assume the merging credit
union’s shares and liabilities. The merging
credit union will transfer to our credit union
all of its assets, rights, and property. All
members of the merging credit union will receive shares in our credit union, which will
stay in business under its present charter.
CERTIFICATION
We, the Board Presiding Officer and Secretary of this credit union, are authorized to:
• Seek National Credit Union Administration Regional Director approval of the merger.
• Execute and deliver the merger agreement on the effective date of the merger.
• Execute all agreements and other papers
required to complete the merger.
We certify to the National Credit Union
Administration that the foregoing is a full,
true, and correct copy of a resolution adopted by the Board of Directors of our credit
union at a meeting held under our bylaws on
[month and date], 20ll. A quorum was
present and voted. The resolution is duly recorded in the minutes of the meeting and is
still in full force and effect.
lllllllllllllllllllllll
Board Presiding Officer
lllllllllllllllllllllll
Date
lllllllllllllllllllllll
Secretary
lllllllllllllllllllllll
Date

(b) Merger resolution for merging credit
union, NCUA 6303. The merging credit
union’s board of directors must complete this form after it votes to merge
with the continuing credit union. The
merger package required by § 708b.104
must include merger resolutions from
both the merging and continuing credit
unions.
MERGER RESOLUTION (MERGING CREDIT
UNION)
RESOLUTION
The Board of Directors believes our credit
union should merge with [name of continuing credit union] (continuing credit
union). The continuing credit union will assume the shares and liabilities of our credit
union. Our credit union will transfer to the
continuing credit union all of our assets,

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National Credit Union Administration

§ 708b.304

rights, and property. All members of our
credit union will receive shares in the continuing credit union, which will stay in business under its present charter.
CERTIFICATION
We, the Board Presiding Officer and Secretary of this credit union, are authorized to:
• Seek National Credit Union Administration Regional Director approval of the merger.
• Execute and deliver the merger agreement on the effective date of the merger.
• Execute all agreements and other papers
required to complete the merger.
We certify to the National Credit Union
Administration that the foregoing is a full,
true, and correct copy of a resolution adopted by the Board of Directors of our credit
union at a meeting held under our bylaws on
[month and day], 20ll. A quorum was
present and voted. The resolution is duly recorded in the minutes of the meeting and is
still in full force and effect.
lllllllllllllllllllllll
Board Presiding Officer
lllllllllllllllllllllll
Date
lllllllllllllllllllllll
Secretary
lllllllllllllllllllllll
Date

union. In addition, the continuing credit
union will issue all members of the merging
credit union the same amount of shares they
currently own in the merging credit union,
subject to the following share adjustments
(if any):
[Name of continuing credit union] by:
lllllllllllllllllllllll
Board Presiding Officer
lllllllllllllllllllllll
Treasurer
[Name of merging credit union] by:
lllllllllllllllllllllll
Board Presiding Officer
lllllllllllllllllllllll
Treasurer
Before me a Notary Public (or other authorized officer) appeared the above named
[name of Board presiding officer] and [name
of Treasurer], Board Presiding Officer and
Treasurer of [name of continuing credit
union], who being personally known to me as
(or proved by the oath of credible witnesses
to be) the persons who executed the annexed
instrument acknowledged the same to be
their free act and deed and in their respective capacities the free act and deed of said
credit union.
(SEAL)

(c) Merger agreement, Form 6304. Submit a proposed merger agreement to
the NCUA with the initial merger
package required by § 708b.104. Do not
sign, date, or notarize the proposed
agreement. At the completion of the
merger, officials of the merging and
continuing credit unions must sign this
agreement and have it notarized. The
continuing credit union should retain
the original document. Send one copy
of the executed form to the NCUA Regional Director (see Form NCUA 6309 in
paragraph (g) of this section). The date
you execute this document is the effective date of the merger.

Notary Public
My commission expiresllllll, 20ll.
State of lllllllllllllllllll
County of llllllllllllllllll
Before me a Notary Public (or other authorized officer) appeared the above named
[name of Board Presiding Officer] and [name
of Treasurer], Board Presiding Officer and
Treasurer of [name of merging credit union],
who being personally known to me as (or
proved by the oath of credible witnesses to
be) the persons who executed the annexed instrument acknowledged the same to be their
free act and deed and in their respective capacities the free act and deed of said credit
union.

MERGER AGREEMENT

Notary Public
My commission expiresllllll, 20ll.
State of lllllllllllllllllll
County of llllllllllllllllll

(SEAL)
This agreement is made and entered into
on [month and day], 20ll, by and between
[name of continuing credit union] (continuing credit union) and [name of merging
credit union] (merging credit union). The
continuing credit union and the merging
credit union agree to the following terms:
1. The merging credit union will transfer
to the continuing credit union all of its assets, rights, and property.
2. The continuing credit union will assume
and pay all liabilities of the merging credit

(d) Sample form notice to members,
NCUA 6305A. If a federally insured credit union is merging into another federally insured credit union, use of this
form will meet the requirements of
§ 708b.106. Brackets provide instructions or indicate that the merging

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§ 708b.304

12 CFR Ch. VII (1–1–19 Edition)
rate documents. In addition, the following
information applies to the proposed merger.
Reasons for merger: The Board of Directors
has concluded that the proposed merger is
desirable and in the best interests of members because [insert reasons].
Net worth: The net worth of a merging
credit union at the time of a merger transfers to the continuing credit union. [Name of
merging credit union] [has or does not have]
a higher net worth ratio than [name of continuing credit union].
Share adjustment or distribution: [Choose option A or B and delete the other.]
A: [Name of merging credit union] will not
distribute a portion of its net worth to its
members in the merger. The board of directors has determined a share adjustment, or
other distribution of [name of merging credit
union]’s net worth is unnecessary because
[insert reasons].
B: [Name of merging credit union] will distribute a portion of its net worth to its members in the merger. The board of directors
has determined to distribute a portion of
[name of merging credit union]’s net worth
as [describe method of calculating share adjustment or other provisions for reserves,
undivided earnings or dividends.]
Locations of merging and continuing credit
union: [Name of merging credit union]’s
main office at [street address, city] will
[close/remain open/remain open forll]. [If
the merging credit union has branches, insert the same statement about the branch locations]. [Name of continuing credit union]
has the following locations that are near
[name of merging credit union]. [List address
and type of location—i.e. main office, fullservice branch for each non-ATM location of
the continuing credit union in reasonable
proximity to the locations of the merging
credit unions.]
Changes to services and member benefits: [If
applicable, explain any loss of services, such
as increases in fees or loss of ATM access, as
well as any changes to benefits such as life
savings protection insurance or loan protection insurance. If inapplicable, delete entire
section.]
Merger-related financial arrangements: [ ]
[If inapplicable, delete entire section.]
NCUA Regulations require merging credit
unions to disclose certain increases in compensation that any of the merging credit
union’s officials or the five most highly compensated employees have received or will receive in connection with the merger. The following individuals have received or will receive such compensation:

credit union should fill in the appropriate information, or select the appropriate option to conform the notice to
the circumstances of the merger.
NOTICE OF MEETING OF THE MEMBERS OF
[NAME] CREDIT UNION
The Board of Directors of [name of merging credit union] have called a [special]
meeting of the members of this credit union
at [location, address], on [month, day, year]
at [time]. The purpose of this meeting is:
1. To consider and act upon a plan and proposal for merging [name of merging credit
union] with and into [name of continuing
credit union] (hereinafter referred to as the
‘‘Continuing Credit Union’’), whereby all assets and liabilities of the [name of merging
credit union] will be merged with and into
the Continuing Credit Union. All members of
[name of merging credit union] will become
members of the Continuing Credit Union and
will be entitled to and will receive shares in
the Continuing Credit Union for the shares
they own in [name of merging credit union]
on the effective date of the merger.
2. To ratify, confirm and approve the action of the Board of Directors in authorizing
the officers of [name of merging credit
union], subject to the approval of members,
to do all things and to execute all agreements, documents, and other papers necessary to carry out the proposed merger.
The Board of Directors of [name of merging credit union] encourages you to attend
the meeting and vote on the proposed merger. Whether or not you expect to attend the
meeting, we urge you to sign, date and
promptly return the enclosed ballot to vote
on the proposed merger.
If you wish to submit comments about the
merger to share with other members, you
may submit them to the National Credit
Union Administration (NCUA) at [insert
email address] or [insert physical address].
The NCUA will post comments received from
members on its website, along with the
member’s name, subject to the limitations
and requirements of its regulations.
Other Information Related to the Proposed
Merger:
The Board of Directors has carefully evaluated and analyzed the assets and liabilities
of the credit unions and the value of shares
in both credit unions. The financial statements of both credit unions, as well as the
projected combined financial statement of
the continuing credit union, follow as sepaName

Title

Description of increase

Amount

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National Credit Union Administration
Name

§ 708b.304

Title

Description of increase

Please note that the proposed merger must
have the approval of the majority of members who vote.
Enclosed with this Notice of Special Meeting is a Ballot for Merger Proposal. If you
cannot attend the meeting, please complete
the Ballot and return it to [mailing address].
To be counted, your Ballot must be received
by [month, day, year] at [time of special
meeting].
BY THE ORDER OF THE BOARD OF
DIRECTORS:
lllllllllllllllllllllll
President
lllllllllllllllllllllll
Date

(e) Form ballot, NCUA 6306A.
BALLOT FOR MERGER PROPOSAL
Name of Member:
Account Number:
Your credit union must receive this ballot
by [insert date of meeting]. Please mail or
bring it to:
[insert credit union address]
I have read the Notice of Special Meeting
for the members of Credit Union. The meeting will be held on the above date to consider
and act upon the merger proposal described
in the notice. I vote on the proposal as follows (check one box):
[ ] APPROVE the proposed merger and authorize the Board of Directors to take all
necessary action to accomplish the merger.
[

] DO NOT APPROVE the proposed merger.

Amount

CERTIFICATION OF VOTE ON MERGER PROPOSAL
OF THE CREDIT UNION
[Merging]
We, the undersigned officers of the [name
of merging credit union], certify the completion of the following actions:
1. At a meeting on [month and day], 20ll,
the Board of Directors adopted a resolution
approving the merger of our credit union
with [name of continuing credit union] (continuing credit union).
2. Not more than 90 days or less than 45
days before the date of the vote, our members received copies of the notice of meeting
and the ballot, as approved by the National
Credit Union Administration.
3. The credit union arranged for a meeting
of our credit union members at the time and
place announced in the notice to consider
and act upon the proposed merger.
4. At the meeting, the members present received an explanation of the merger proposal
and any changes in products, services and locations.
5. The members of our credit union voted
on of the merger as follows:
lllNumber of members present at the
meeting
lllNumber of members present who voted
in favor of the merger
lllNumber of members present who voted
against the merger
lllNumber of additional written ballots in
favor of the merger
lllNumber of additional written ballots
opposed to the merger
6. The action of the members at the meeting was recorded in the minutes.

Signed: lllllllllllllllllll
Member’s Name

This certification signed [month and day],
20ll.

llllllllllllllllllll

lllllllllllllllllllllll
Board Presiding Officer

Date:

(f) Form certification of vote, NCUA
6308A. Within ten calendar days after
the membership vote, the merging
credit union must complete this form
and mail it to the NCUA Regional Director.

lllllllllllllllllllllll
Secretary

(g) Form certification of completion of
merger, NCUA 6309. Within 30 calendar
days after the effective date of the
merger, the continuing credit union
must complete this form and mail it to
the NCUA Regional Director with the
documents listed on the form.

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§ 708b.304

12 CFR Ch. VII (1–1–19 Edition)

CERTIFICATION OF COMPLETION OF MERGER
We, the undersigned officers of the abovenamed credit union, certify to the National
Credit Union Administration as follows:
1. The merger of our credit union with
[name of merging credit union] was completed as of [month day and year of the executed merger agreement], according to the
terms and plan approved by this Board of Directors by a resolution adopted at the meeting held on [month day and year of board of
directors meeting]. We previously provided a
certified copy of the resolution to the National Credit Union Administration.
2. We completed all required steps for the
merger and transferred the merging credit
union’s assets.
Attached to this certification are the following documents:
1. Financial reports for each credit union
immediately before the completion of the
merger.
2. A consolidated financial report for the
continuing credit union immediately after
the completion of the merger.
3. The charter of the merging federal credit
union [if available].
4. The insurance certificate for the merging federally insured credit union [if available].
5. A copy of the executed merger agreement, Form NCUA 6304.
This certification signed [month and day],
20ll.
lllllllllllllllllllllll
Board Presiding Officer
lllllllllllllllllllllll
Treasurer

(h) Form calculation of PAS ratio,
NCUA 6311. The merger package re-

quired by § 708b.104 must include PAS
calculations for both the merging and
continuing credit unions. The Probable
Asset/Share Ratio (PAS) reflects the
relative worth of $1 of shares in a credit union, assuming it will be an ongoing concern. The ratio is computed
by dividing the net value of assets by
the credit union’s total shares.
ADDITIONS: Cash is valued at book less
any known potential losses. Loans are valued at book net of probable estimated loan
losses (ALLL). Investments are valued at
book value less any known losses. However,
if a long-term investment is likely to be liquidated prior to maturity, it is valued at
current market value. Fixed Assets are valued at book, except when major fixed assets
are not in use or are in the process of being
sold. In these instances, the asset is valued
at its probable market value. Other Assets
are valued at the most realistic value to the
credit union, usually not to exceed book
value.
DEDUCTIONS: Notes Payable are valued
at book. Accounts Payable are valued at
book. Other Liabilities are valued at book.
Contingent and/or Unrecorded Liabilities are
valued at the most realistic known value.
This item should include any unrecorded
dividends not accrued for the accounting period. Subsidiary Ledger Differences are deducted if the credit union is likely to suffer
a loss due to the problem. Other Losses include any other known losses. Do not include
deficits in undivided earnings or net losses
because they have already reduced assets if
properly recorded.

PROBABLE ASSET/SHARE RATIO—CONTINUING CREDIT UNION
Book Value
ADDITIONS:
Cash.
Loans.
Investments.
Fixed Assets.
Other Assets.
Total (A).
DEDUCTIONS:
Notes Payable.
Accounts Payable.
Other Recorded Liabilities.
Contingent and/or Unrecorded Liabilities.
Subsidiary Ledger Differences (Losses) Other Losses.
Total (B).
Net Value of Assets (A¥B).
Total Shares.
Probable Asset/Share Ratio .........................................................................................

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Market Value

National Credit Union Administration

Pt. 709

PROBABLE ASSET/SHARE RATIO—MERGING CREDIT UNION
Book Value

Market Value

ADDITIONS:
Cash.
Loans.
Investments.
Fixed Assets.
Other Assets.
Total (A).
DEDUCTIONS:
Notes Payable.
Accounts Payable.
Other Recorded Liabilities.
Contingent and/or Unrecorded Liabilities.
Subsidiary Ledger Differences (Losses) Other Losses.
Total (B).
Net Value of Assets (A¥B).
Total Shares.
Probable Asset/Share Ratio .........................................................................................

(i) Certification of no non-disclosed
merger-related financial arrangements.
The merger package required by
§ 708b.104 must include the following
certification.
CERTIFICATION OF NO NON-DISCLOSED
MERGER-RELATED FINANCIAL ARRANGEMENTS
We, the undersigned officials of [name of
merging credit union] and [name of continuing credit union], certify to the National
Credit Union Administration (NCUA) as follows:
1. The information provided to the NCUA
in the merger application, and the proposed
disclosure to the members of [name of merging credit union] includes a complete, true
and accurate statement about all merger-related financial arrangements, if any, provided to covered persons, as those terms are
defined in Part 708b of the NCUA’s regulations.
2. We understand that we have an affirmative duty to revise our merger application
and the notice to the members of [name of
merging credit union] if merger-related financial arrangements are added or increased
after our application is submitted.
This certification signed [month and day],
20ll.
[name of continuing credit union]
lllllllllllllllllllllll
Board Presiding Officer
lllllllllllllllllllllll
CEO
[name of merging credit union]
lllllllllllllllllllllll
Board Presiding Officer
lllllllllllllllllllllll

CEO
[83 FR 30311, June 28, 2018]

PART 709—INVOLUNTARY LIQUIDATION
OF
FEDERAL
CREDIT
UNIONS AND ADJUDICATION OF
CREDITOR CLAIMS INVOLVING
FEDERALLY
INSURED
CREDIT
UNIONS IN LIQUIDATION
Sec.
709.0 Scope.
709.1 Definitions.
709.2 NCUA Board as liquidating agent.
709.3 Challenge to revocation of charter and
involuntary liquidation.
709.4 Powers and duties of liquidating
agent.
709.5 Payout priorities in involuntary liquidation.
709.6 Initial determination of creditor
claims by the liquidating agent.
709.7 Procedures for agency review or judicial determination of claims.
709.8 Expedited determination of creditor
claims.
709.9 Treatment of financial assets transferred
in
connection
with
a
securitization or participation.
709.10 Treatment by conservator or liquidating agent of collateralized public
funds.
709.11 Prepayment fees to Federal Home
Loan Bank.
709.12 Treatment of swap agreements in liquidation or conservatorship.
AUTHORITY: 12 U.S.C. 1757, 1766, 1767,
1786(h), 1786(t), and 1787(b)(4), 1788, 1789, 1789a.

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