Proposed Involuntary Liquidation of Federal Credit Unions and Claims Procedures Rule

The NCUA Board proposes to amend part 709 of its rules to update and clarify the procedures that apply to claims administration for federally insured credit unions that enter involuntary liquidation. Specifically, the proposal would amend the current rules payout priority provision by specifying the conditions that claims in the nature of severance must meet to be allowed as provable claims.