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A federal appeals court judge, reversing a district court ruling issued in 2013, yesterday said NCUA's suit against Barclays Capital over the sale of residential mortgage-backed securities to corporate credit unions may proceed.

In its suit, NCUA alleged that a unit of Barclays violated federal and state law by its misrepresentations when it sold securities valued at more than $555 million to the now-defunct U.S. Central Corporate FCU and Western Corporate FCU.

"We're pleased with the court's decision, which we are reading carefully," NCUA spokesman John Fairbanks said of Tuesday's reversal. "Litigation continues."

The district court in this suit dismissed NCUA's claims in 2013 based on the Extender Statute, a federal law that applies to a conservator or liquidator and relates to the statute of limitations. The appeals court rejected this, noting an "express promise" made by Barclays not to assert a defense based on a statute of limitations.

NAFCU continues to urge NCUA to pursue all avenues available to offset the costs for credit unions of corporate stabilization. Credit unions have paid $4.8 billion in stabilization costs to date.