ALEXANDRIA, Va. — The NCUA Board on Thursday approved a rule allowing assistance to a troubled credit union or a credit union acquiring a troubled credit union to count as regulatory net worth.
The rules change implements a law passed by Congress late last year, and involves assistance under Section 208 of the Federal Credit Union Act.
The final rule contained a provision, to which several trade associations and credit unions objected, to deduct "bargain purchase gain" in certain credit union mergers from regulatory net worth. The term refers to a gain on financial assets acquired for less than fair market value.
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