Opinion ID: 2718900
Heading Depth: 3
Heading Rank: 1

Heading: NCUA, FIRREA, and the NCUA Extender Statute

Text: Established in 1934, NCUA is an independent agency charged with regulating federally chartered credit unions. If NCUA finds that a credit union is insolvent or (in some circumstances) undercapitalized, it must place the credit union in conservatorship or liquidation and appoint itself as conservator or liquidating agent. 12 U.S.C. §§ 1787(a)(1)(A), (a)(3)(A). NCUA then steps into the shoes of the credit union and succeeds to “all rights, titles, powers, and privileges of the credit union . . . .” Id. § 1787(b)(2)(A)(i). In the wake of the 1980s savings and loan crises, Congress enacted FIRREA to “prevent[] the collapse of the industry, attack[] the root causes of the crisis, and restor[e] public confidence.” United States v. Winstar Corp., 518 U.S. 839, 844, 856 (1996). FIRREA includes a provision governing NCUA enforcement actions titled “Statute of limitations for actions brought by conservator or liquidating agent.” 12 U.S.C. § 1787(b)(14). Also known as the NCUA Extender Statute,1 this provision reads: (A) In general Notwithstanding any provision of any contract, the applicable statute of limitations with regard to any action brought by the Board2 as conservator or liquidating agent shall be— (i) in the case of any contract claim, the longer of— 1 FIRREA contains provisions often referred to as “extender statutes,” which define the time period for a government regulator to bring “any action” on behalf of a failed financial organization. One applies to NCUA, which we refer to as the “NCUA Extender Statute” or simply the “Extender Statute.” See 12 U.S.C. § 1787(b)(14). 2 Here, “the Board” refers to the NCUA Board. 12 U.S.C. § 1752(4). -4- (I) the 6-year period beginning on the date the claim accrues; or (II) the period applicable under State law; and (ii) in the case of any tort claim, the longer of— (I) the 3-year period beginning on the date the claim accrues; or (II) the period applicable under State law. (B) Determination of the date on which a claim accrues For purposes of subparagraph (A), the date on which the statute of limitation begins to run on any claim described in such subparagraph shall be the later of— (i) the date of the appointment of the Board as conservator or liquidating agent; or (ii) the date on which the cause of action accrues. Id. Thus, for “any [federal] tort claim” on behalf of a credit union to be timely, NCUA must sue within three years from either the date it places that credit union into conservatorship (or receivership) or the date on which the cause of action accrues. See id.