Safe Harbor; Treatment of Financial Assets Transferred in Connection with a Securitization or Participation

The rule clarifies the conditions for a safe harbor for securitization or participation and sets forth safe harbor protections for securitizations that do not comply with the new accounting standards for off balance sheet treatment by providing for expedited access to the financial assets that are securitized if they meet the conditions defined in the rule. The conditions contained in the rule will serve to protect the National Credit Union Share Insurance Fund (NCUSIF) and NCUA’s interests as liquidating agent or conservator by aligning the conditions for the safe harbor with better and more sustainable lending practices by insured credit unions (FICUs).

The latest form for Safe Harbor; Treatment of Financial Assets Transferred in Connection with a Securitization or Participation expires 2021-10-31 and can be found here.