NCUA Legal Opinion Letter to Facilitate Voluntary Mergers
The National Credit Union Administration (NCUA) has discretion under the Federal Credit Union Act (FCUA) to approve a change to a credit union’s charter to facilitate a voluntary merger with another healthy credit union, according to a new legal opinion from NCUA General Counsel Mike McKenna issued last week.
“The FCUA expressly authorizes NCUA to approve credit union charters and subsequent conversions of those charters. It also provides NCUA authority to approve the voluntarily merger of credit unions. Taken together, these statutory provisions provide the authority to NCUA to permit charter conversions to facilitate subsequent mergers,” the letter says.