Question
December 10, 2001
B. Michael Verne
Premerger Notification Office
Federal Trade Commission
6`s Street & Pennsylvania Avenue, NW
Room 301
Washington, DC 20580
Dear Mr. Verne:
We would like to thank you and your colleagues at the FTC and the Antitrust Division for your assistance and advice with respect to the applicability of the Hart-Scott-Rodino premerger notification provisions to credit union mergers. The purpose of this letter is to state our understanding as to which credit union assets are, and are not, included in determining whether the size-of-transaction pre-merger reporting thresholds have been met.
Based upon our discussions and meetings with you, it is our understanding that, in the case of credit unions, excluded asset types include: cash and investments, mortgages and leases, and certain other assets. More particularly, and utilizing the Statement of Financial Condition section of the September 2001 NCUA 5300 call report (copy attached) as a reference document, it is our understanding that the following asset categories are properly excluded in determining size-of-transaction:
ASSET TYPE NCUA ACCOUNT CODE
CASH
1. Cash on Hand (Coin and Currency) 730A (line 1)
2. Cash on Deposit 730B (line 2)
3. Cash Equivalents 730C (line 3)
TOTAL INVESTMENTS 7991 (line 12; includes Lines 4-11)
MORTGAGES AND LEASES
1. 1st Mortgage Real Estate Loans/Lines of Credit 703 (line 17)
2. Other Real Estate Loans/Lines of Credit 386 (line 18)
3. Leases Receivable 002 (line 19)
In addition to the above excluded assets, we further understand that the real property assets reportable in NCUA Account Code 798 (line 24) and Code 007 (line 25) are also excluded to the extent provided for in 16 CFR Part 802.2 effective as of April 29,1996.
We would appreciate receiving confirmation from you that our understanding as set forth above is correct. Your guidance in this matter will be very helpful to credit unions in determining accurately their compliance obligations under the Hart-Scott-Rodino Act and the related regulations.
Thank you very much for the assistance you have provided to CUNA and to credit unions throughout the country.
Sincerely,
(redacted)
General Counsel
Attachments
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