§ 702.201. Scope and definition.
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/us/cfr/t12/s§ 702.201·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Scope. This subpart B applies in lieu of subpart A of this part exclusively to credit unions defined in paragraph
(b)of this section as “new” pursuant to section 216(b)(2) of the FCUA, 12 U.S.C. 1790d(b)(2).
(b)New credit union defined. A “new” credit union for purposes of this subpart is a credit union that both has been in operation for less than ten
(10)years and has total assets of not more than $10 million. Once a credit union reports total assets of more than $10 million on a Call Report, the credit union is no longer new, even if its assets subsequently decline below $10 million.
(c)Effect of spin-offs. A credit union formed as the result of a “spin-off” of a group from the field of membership of an existing credit union is deemed to be in operation since the effective date of the spin-off. A credit union whose total assets decline below $10 million because a group within its field of membership has been spun-off is deemed “new” if it has been in operation less than 10 years.
(d)Actions to evade prompt corrective action. If the NCUA Board determines that a credit union was formed, or was reduced in asset size as a result of a spin-off, or was merged, primarily to qualify as “new” under this subpart, the credit union shall be deemed subject to prompt corrective action under subpart A of this part.
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