C.F.R. » Title 12 » CHAPTER VII—NATIONAL CREDIT UNION ADMINISTRATION › SUBCHAPTER A—REGULATIONS AFFECTING CREDIT UNIONS › PART 702—CAPITAL ADEQUACY › Subpart D—Subordinated Debt, Grandfathered Secondary Capital, and Regulatory Capital

12 C.F.R. § 702.412

Effect of a merger or dissolution on the treatment of Subordinated Debt as Regulatory Capital

Read at: eCFRecfr.gov CornellLII GovInfogovinfo.gov CasesGoogle Scholar

(a) In the event of a merger of an Issuing Credit Union into or the assumption of its Subordinated Debt by another federally insured credit union, the Subordinated Debt will be treated as Regulatory Capital only to the extent that the resulting credit union is either a LICU, a complex credit union, and/or a new credit union.

(b) In the event the resulting credit union is not a LICU, a complex credit union, or a new credit union, the Subordinated Debt of the merging credit union can either be:

(1) If permitted by the terms of the Subordinated Debt Note, repaid by the resulting credit union upon approval by the NCUA under § 702.411; or

(2) Continue to be held by the resulting credit union as Subordinated Debt, but will not be classified as Regulatory Capital under this subpart, unless the resulting credit union meets the eligibility requirements of § 702.403.

(c) In the event of a voluntary dissolution of an Issuing Credit Union that has outstanding Subordinated Debt, the Subordinated Debt may be repaid in full according to 12 CFR part 710, subject to the requirements in § 702.411.

Notes of Decisions
Cited in 1 case (1 in the last 5 years), 2023–2023 · leading case: Affinity First Fed. Credit Union v. Nat'l Credit Union Admin. Bd. (D. Kan. 2023).
Sort: Relevance Newest Treatment
Affinity First Fed. Credit Union v. Nat'l Credit Union Admin. Bd. (D. Kan. 2023). “5 (b); see also 12 C.F.R. § 702.412 (c) (discussing the effect of voluntary dissolution on the treatment of subordinated debt as regulatory capital).”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.