Agency would continue examining transactions
with privately insured CUs, other FIs

July 25, 2018 -- According to fillings in the Federal Register, NCUA will Thursday publish an extension of approved collection of information regarding the requirement that federally insured credit unions (FICUs) seeking to buy assets or assume liabilities from a privately insured credit union (or other non-FICU financial institution) must submit a letter to the agency’s local regional director outlining the purchase or assumption before the acquisition is approved.

The proposed extension will also increase the regulatory burden hours on credit unions submitting the information.  NCUA notes that the estimated hour burden per response has “increased substantially” and as such the agency has increased the time necessary to prepare and assemble the information.

The required submissions may include: financial statements, strategic plans, budgets, inventories of assets and liabilities to be transferred, and any relevant contracts or agreements regarding the transfer. NCUA uses the information collected to determine the safety and soundness of the transaction and risk to the National Credit Union Share Insurance Fund (NCUSIF).

NCUA is inviting the public to comment regarding: 

  • (a) whether the collection of information is necessary for the proper execution of the function of the agency, including whether the information will have practical utility; 
  • (b) the accuracy of the agency’s estimate of the burden of the collection of information, including the validity of the methodology and assumptions used; 
  • (c) ways to enhance the quality, utility, and clarity of the information to be collected; and 
  • (d) ways to minimize the burden of the collection of the information on the respondents, including the use of automated collection techniques or other forms of information technology. 

Comments will be due 60 days from the date of publication in the Federal Register.

LINK:
Agency Information Collection: Purchase of Assets and Assumption of Liabilities