Confirming that you may exclude Loans/Lines of Credit (1st) and Loans/Lines of Credit (Junior). To the extent the lease receivables are the monthly payments by the lessee, they would represent income for the credit union and should be treated like cash, i.e., may be excluded. However, the value of the automobiles that the credit union presumably owns and leases should be included in the asset calculation.
Question
From: Musick, Vesselina <vmusick@ftc.gov>
Sent: Tuesday, November 5, 2024 11:59:02 AM (UTC-05:00) Eastern Time (US & Canada)
To: [Redacted]
Cc: HSRHelp <HSRHelp@ftc.gov>
Subject: RE: Request for Interpretation
Confirming that you may exclude Loans/Lines of Credit (1st) and Loans/Lines of Credit (Junior). To the extent the lease receivables are the monthly payments by the lessee, they would represent income for the credit union and should be treated like cash, i.e., may be excluded. However, the value of the automobiles that the credit union presumably owns and leases should be included in the asset calculation.
From: Brown, David W. <DBrown@lewisrice.com>
Sent: Tuesday, October 29, 2024 3:08:55 PM (UTC-05:00) Eastern Time (US & Canada)
To: HSRHelp <HSRHelp@ftc.gov>
Cc: [Redacted]
Subject: Request for Interpretation
I have a question regarding the calculation of the size-of-transaction with respect to the merger of two credit unions. We have reviewed Informal Interpretation No. 0112004 dated December 10, 2001. That informal interpretation provides that certain assets reported on the National Credit Union Administrative Call Report Form 5300 may be excluded in determining whether the size-of-transaction pre-merger reporting thresholds have been met. Form 5300 has been revised since 2001; a copy of the current form is attached for your reference. Based on the classification of the assets in the informal interpretation and our understanding of where those assets are reported in the current version of Form 5300, we believe the following asset classes may be excluded from the size-of-transaction calculation:
- Cash and Other Deposits
Cash on Hand - Line 1(a) / Code 703A
Cash on Deposit – Line 2(d) / Code 730B
- Investments
Total Investment Securities – Line 12 / Code AS0013
Other Investments – Line 14 / Code AS0017
- Mortgages and Leases
Loans/Lines of Credit (1st) – Line 9 / Code 703A
Loans/Lines of Credit (Junior) – Line 10 / Code 386A
Lease Receivable – Line 7 / Code 002
Please let me know if you have any questions regarding this request or need additional information. We would like confirmation that we may still rely on Informal Interpretation No. 112004 and that our understanding of the assets that may be excluded under the current version of the form is correct.