LOS ANGELES (3/26/12)--In one of two filings Wednesday in a federal court in Los Angeles on separate court cases involving the National Credit Union Administration's (NCUA) attempt to recoup losses from mortgage backed securities sold to corporate credit unions, NCUA argued that a particular court case preserves NCUA's federal securities claim in the case.
In NCUA's lawsuit against RBS Securities Inc. before the U.S. District Court of the Central District of California, Western Division, NCUA filed a proposed order arguing that another court case, American Pipe Construction Co. v. Utah, impacts the statute of repose considerations on 29 certificates at issue in the suit. NCUA said American Pipe tolling preserves certain federal claims from the three-year statute of repose.
U.S. District Judge George WU, in a previous ruling that partly dismissed NCUA's case, had granted NCUA the leave to amend, or the ability to provide more information. His ruling had indicated that unless tolled by the virtue of American Pipe, all of NCUA's federal claims would be dismissed with prejudice because they are barred by a three-year federal statute of repose. An extender statute did not apply to the federal claims, he said. The ruling did not affect NCUA's state securities law claims.
Because the court has not yet ruled on the extent of the American Pipe tolling and its impact on certain certificates, NCUA is proposing an order that would direct the parties to meet and confer after the court's ruling and to file a joint list of any timely claims.