Section 91.809 - Purchase of Assets and Assumption of Liabilities(a) With approval of the Commissioner, a credit union may initiate a program of purchasing loans or assuming an assignment of deposits, shares, or liabilities from: (2) Any other financial-type institution (including depository institutions, mortgage banks, consumer finance companies, insurance companies, loan brokers, and other loan sellers or liability traders); or(3) Any successor in interest to any institution identified in subsection (a)(1) or (a)(2) of this section.(b) Commissioner approval is not required for:(1) Purchases of student loans or real estate secured loans to facilitate the packaging of a pool of loans to be sold or pledged on the secondary market under NCUA regulations RSA 701.23(b)(1)(iii) or (iv), or purchases of member loans under § RSA 91.711 of this title (relating to Purchase and Sale of Member Loans);(2) Assumption of deposits, shares or liabilities as rollovers or transfers of member retirement accounts or in which an insured credit union perfects a security interest in connection with an extension of credit to any member;(3) Purchases of assets, including loans, or assumptions of deposits, shares, or liabilities from any deposit insured credit union, except a purchase or assumption as a part of a merger under § RSA 91.1003 of this title (relating to Mergers/Consolidations); or(4) Purchases of loan participations as defined in and meeting the requirements of § RSA 91.805 of this title (related to Loan Participation Investments).(c) A credit union seeking approval under subsection (a) of this section must submit a letter application to the commissioner stating the nature of the transaction and describing the proposed program. The application must include:(1) Copies of relevant transaction documents;(2) The credit union board's resolution approving the credit union to submit the application and engage in the proposed activity;(3) Evidence that the credit union board has reviewed and approved the credit union's due diligence efforts;(4) Proposed policies under which the program will operate, and which must comply with the requirements outlined in §§91.802(b), 91.803 and 91.808 (relating to Other Investments; Investment Limits and Prohibitions; and Loan Participation Investments);(5) Demonstrated internal expertise to understand and mitigate the risks associated with the activity proposed;(6) Evidence of requested approval by NCUA under NCUA regulations RSA 741.8, if federally insured, or bond covenants from American Share Insurance if necessary;(7) Any other information relevant to the transaction and the program; and(8) Information requested by the Commissioner or the Department.(d) A federally insured credit union purchasing assets or assuming liabilities of another entity must also comply with applicable requirements contained within the NCUA regulations 12 C.F.R. Part 741.(e) A credit union shall submit the letter of application as defined in subsection (c) of this section no later than 60 days prior to the planned closing date of any program-related transaction(s). Late applications may be considered when there are extenuating circumstances deemed acceptable to the Commissioner. Final approval/disapproval shall be given in writing by the Commissioner and shall include the basis for the decision.7 Tex. Admin. Code § 91.809
Adopted by Texas Register, Volume 46, Number 25, June 18, 2021, TexReg 3731, eff. 6/24/2021