WASHINGTON — Credit unions would be eligible to sell theirdistressed loans or mortgaged-backed securities to the government,under the current version of the $700 billion bailout plan unveiledby the Treasury Department and currently pending in Congress.

The provision, which was supported by the NCUA and the tradeassociations, is part of a bill that congressional leaders hope topass by the end of the week.

CUNA President Dan Mica and NAFCU President Fred Becker bothissued statements on Saturday praising the inclusion of creditunions but said the measure could change as it moved through theprocess.

“Based on our initial review of the draft legislation expectedto be debated by Congress next week, it appears credit unions areincluded in the Treasury plan to protect the financial system, aswe have been working to ensure over the last two days. There arestill details to be clarified; however, at this stage, we areencouraged by what we have seen,” Mica said.

“Credit unions did not engage in the type of activities that ledto the current crisis, but they have not been immune and we believeit is paramount that credit unions are included in thisunfrequented legislation,” Becker said.