NCUA issues proposed rule providing safe harbor for securitized assets

In conjunction with the proposed rule permitting securitization of loans, NCUA also issued a proposed rule (Part 709) which would provide a safe harbor for assets transferred by a federally insured credit union as part of a securitization or participation. The rule would protect investors in the unlikely event the initiating credit union would be conserved or liquidated. A draft of the proposed rule (Part 709) can be found on NCUA’s website; comments are due within 60 days of publication in the Federal Register, which is expected shortly.