Search
 

CUNA, NCUA Represent CUs at FASB Roundtable

NORWALK, Conn.-CUNA and NCUA explained credit unions' plight under the Financial Accounting Standards Board's proposed guidance on loan participations. Under the proposal, known as Financial Accounting Statement 140, loan participations would be treated as secured borrowing rather than a sale as it is currently treated, which would leave the loan...

By Staff Writer | Updated on June 29, 2004

NORWALK, Conn.-CUNA and NCUA explained credit unions’ plight under the Financial Accounting Standards Board’s proposed guidance on loan participations. Under the proposal, known as Financial Accounting Statement 140, loan participations would be treated as secured borrowing rather than a sale as it is currently treated, which would leave the loan on the originating credit union’s books. “This is a really big deal for credit unions.” CUNA Associate General Counsel Mary Dunn said. “This could be a problem because it wouldn’t allow participations to be excluded from the 12.25% assets limitation (for member business loans).” Steven Bisker, a Virginia attorney specializing in credit union issues that CUNA keeps on retainer, and NCUA Attorneys Paul Peterson and Karen Kelbly participated in the roundtable on behalf of credit unions. FASB has expressed concerns that the originating credit union could still claim the loan participation in liquidation under the current method. “We think we got a little traction in our comments on Thursday,” Dunn said.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.