Automobile Leasing

July 7, 1992

Martha Harden
Credit Union Services
Curry Auto Leasing
5422 Alpha Road
Dallas, Texas 75240

Re: Automobile Leasing (Your Letter of June 19, 1992)

Dear Ms. Harden:

You requested an opinion regarding NCUA automobile leasing policy. Without reviewing your plan, it is not possible for NCUA to render a legal opinion as to its compliance with NCUA Interpretive Ruling and Policy Statement No. 83-3, Federal Credit Union ("FCU") Leasing of Personal Property to Members ("IRPS 83-3") and legal opinion letters issued thereunder. However, the enclosed copies of IRPS 83-3 and the letter from me to Cary C. Boyden, Esq., Pillsbury, Madison & Sutro, Re: Proposed Automobile Leasing Program, dated November 4, 1991 (the "1991 Letter") (IRPS 83-3 is attached to the 1991 Letter) will provide a comprehensive review of the requirements of IRPS 83-3. We have also enclosed copies of several NCUA opinion letters requested by you concerning automobile leasing. See Letter from Timothy P. McCollum, NCUA Assistant General Counsel, to Fredric Benson, Esq., Feldman and Wasser, Re: Automobile Leasing Program, dated November 7, 1988; Letter from Mr. McCollum to Earl D. Tanner, Esq., Tanner, Bowen & Tanner, Re: Credit Union Lease Financing, dated February 10, 1988; and Letter from Steven R. Bisker, NCUA Assistant General Counsel, to Gary P. Bosco, Esq., dated March 5, 1986. Please note that if there are any inconsistencies between these prior letters and the 1991 Letter, that the 1991 Letter controls. In particular the 1991 Letter stresses that loans may not be made to nonmembers and FCUs must take title to the leased property in the name of the FCU, unless a legal opinion demonstrates to the satisfaction of the NCUA that state law places obstacles in the way of an FCU titling the leased property in its own name and results in a need that title to the leased property be held by a party other than an FCU. If you have any questions on the foregoing or the enclosures, please call either me or Martin Conrey, Staff Attorney, at 202-362-8630.