WASHINGTON–NCUA is seeking to extend a requirement for federally insured credit unions seeking to merge in or acquire assets from privately insured CUs that they submit a letter to their
respective regional office providing details.
The rule also applies to acquisition of assets from outside credit unions.
In a filing with the Federal Register, NCUA noted its rules require FICUs to submit a letter to their respective agency regional office that describes the nature of the transaction, and that they include copies of relevant transaction documents.
Those letters, wrote NCUA, allow it to “determine the safety and soundness of the transaction and risk to the National Credit Union Share Insurance Fund.”
In seeking to extend the requirement, NCUA estimated the regulatory burden from such letters at 120 “burden hours” per response.