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e-CFR data is current as of January 15, 2021


12 CFR--PART 704

View Printed Federal Register page 85 FR 71825 in PDF format.

Amendment(s) published November 12, 2020, in 85 FR 71825

Effective Dates: Dec. 14, 2020

2. In §704.2:

a. Revise the definitions for “Collateralized Debt Obligation”, and “Consolidated Credit Union Service Organization”; and

b. Add definitions for “Corporate CUSO”, and “Credit Union Service Organization (CUSO)”, in alphabetical order, to read as follows:

§704.2   Definitions.

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Collateralized Debt Obligation or Collateralized Loan Obligation means a debt security collateralized by mortgage-backed securities, other asset-backed securities, or corporate obligations in the form of nonmortgage loans or debt. For purposes of this part, the term collateralized debt obligation or collateralized loan obligation does not include:

(1) Senior tranches of Re-REMIC's consisting of senior mortgage-and asset-backed securities;

(2) Any security that is fully guaranteed as to principal and interest by the U.S. Government or its agencies or its sponsored enterprises; or

(3) Any security collateralized by other securities where all the underlying securities are fully guaranteed as to principal and interest by the U.S. Government or its agencies or its sponsored enterprises.

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Consolidated Credit Union Service Organization (Consolidated CUSO) means any CUSO the assets of which are consolidated with those of the corporate credit union for purposes of reporting under Generally Accepted Accounting Principles (GAAP). Generally, consolidated CUSOs are majority-owned CUSOs.

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Corporate CUSO means a CUSO, as defined in part 712 of this chapter, that:

(1) Is a consolidated CUSO;

(2) A corporate credit union has the power, directly or indirectly, to direct the CUSO's management or policies;

(3) A corporate credit union owns 25 percent or more of the CUSO's contributed equity, stock, or membership interests; or

(4) The aggregate corporate credit union ownership meets or exceeds 50 percent of the CUSO's contributed equity, stock, or membership interests.

Credit union service organization (CUSO) means both a CUSO under part 712 of this chapter and a corporate CUSO under this part.

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