The NCUA Office of General Counsel deems the network credit union option currently permissible under the FCU Act, NCUAs Charter and Field of Membership manual, NCUAs existing letters to credit unions, and Office of General Counsel legal opinion letters. Scenario 1: The continuing credit union is statechartered The merger is permissible if State requirements are followed. While NCUAs field of membership policies do not apply when the continuing credit union is statechartered, a merging federal credit union must follow NCUAs voting requirements.
The NCUA's merger manual can help a credit union navigate the merger proccess and includes pdfs of the required forms and certifications needed. Instead, the NCUA will establish a moderated portion of its website for credit union memberss to comment on the proposed merger. The NCUA board also made it clear that the rule applies to Federally Insured State Guaranteed Credit Unions. The final rule increases the required time for notice to members to a minimum of 45 days.
NCUA is also designating a portion of its website to accommodate membertomember communications relating to the merger process. The merger manual will be updated to including the finalized changes, as well as all forms necessary to be completed prior to the approval of a merger. Credit Union Merger Manual February 2014 Page 6 of 31 The most important step in merger accounting is to ensure that the merging credit unions Read More Read More NCUA Provides Guidance On Donated Equity Accounting The continuing credit union submits a Merger Application t o, and obtains approval from, the Division of Credit Unions.
The continuing credit union submits a Merger Application to, and obtains approval from, NCUA Region V. The credit unions notify their bonding companies of the proposed merger. The largest credit union merger approved by the NCUA in the first month of this years second quarter was the 120 million Ncua credit union merger manually Plus Credit union in Monroe, Mich.with the 744 million NCUAs Office of Small Credit Union Initiatives (OSCUI) issued a new resource in May to assist credit unions in navigating the merger process.
The brochure, Truth in Mergers: A Guide for Merging Credit Unions, is designed to help credit unions recognize when a merger is in their best interest and how to negotiate a merger contract that serves members as well as employees. Part 708b of the National Credit Union Administrations (NCUA) Rules and Regulations describes our procedures and notice requirements for mergers involving a federally insured credit union: If the continuing credit union is a federal credit union (FCU), the 2016 cuna ncua requirements and guidance i ncua requirements and guidance g.
Gain from Bargain Purchase (Merger) 0 Manual Input TOTAL NONINTEREST INCOME 0 4. Operating Expenses 0 IS5 5. NCUSIF Premium Expense 0 Manual Input 6. Temporary Corporate CU Assessment 0 Manual Input 7. Other Member Insurance 0 Manual Input 8. Operating Fee (Exam andor supervision fees) 0 Manual Input 9.