Federal credit unions can sell their loans to mutual funds, withcertain restrictions, the NCUA said in a legal opinion letter.
|NCUA Associate General Counsel Hattie Ulan wrote that the salesmust be in accordance with the credit union board's written salespolicy and must be approved by the credit union's board orinvestment committee.
|Also, the credit union must keep a copy of the agreement and aschedule of eligible obligations.
|Ulan wrote theopinion in response to attorney Guy Messick of Media, Pa., general counsel for NACUSO, whospecifically asked whether federal credit unions can sell loans toregistered mutual funds.
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