---
kind: "section"
citation: "12 C.F.R. § 702.201"
title: "12"
number: "702.201"
heading: "Scope and definition."
url: "https://uscodex.org/cfr/12/702.201"
---

# §702.201. Scope and definition.

- (a) **Scope.** This subpart B applies in lieu of [subpart A](/cfr/12/subpartA.md) of this part exclusively to credit unions defined in [paragraph (b)](#b) of this section as “new” pursuant to [section 216(b)(2)](/cfr/12/216.md?p=b-2) of the FCUA, [12 U.S.C. 1790d(b)(2)](/usc/12/1790d.md?p=b-2).
- (b) **New credit union defined.** A “new” credit union for purposes of this subpart is a credit union that both has been in operation for less than ten (10) years and has total assets of not more than $10 million. Once a credit union reports total assets of more than $10 million on a Call Report, the credit union is no longer new, even if its assets subsequently decline below $10 million.
- (c) **Effect of spin-offs.** A credit union formed as the result of a “spin-off” of a group from the field of membership of an existing credit union is deemed to be in operation since the effective date of the spin-off. A credit union whose total assets decline below $10 million because a group within its field of membership has been spun-off is deemed “new” if it has been in operation less than 10 years.
- (d) **Actions to evade prompt corrective action.** If the NCUA Board determines that a credit union was formed, or was reduced in asset size as a result of a spin-off, or was merged, primarily to qualify as “new” under this subpart, the credit union shall be deemed subject to prompt corrective action under subpart A of this part.

## Notes

### Source

Source: 80 FR 66706, Oct. 29, 2015, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 1757(9), 1766(a), 1784(a), 1786(e), 1790d.

### Source

Source: 65 FR 8584, Feb. 18, 2000, unless otherwise noted.