CUNA Regulatory Comment Call
October 29, 2008
NCUA Proposed Rule on Share Insurance
Signs to Reflect Increased Insurance Limits
- The National Credit Union Administration (NCUA) has issued an interim final rule to amend its share insurance rules so it is consistent with recent actions by Congress that temporarily increases the maximum share insurance amount from $100,000 to $250,000 and increases the coverage for custodial loan accounts, which will now be referred to as mortgage servicing accounts. The increase in the share insurance amount will be in effect until December 31, 2009, unless it is extended or made permanent.
- The rule provides the following options with regard to the extent changes need to be made
to the official sign to reflect the temporary increase in the maximum share insurance limit:
- Continue to display the current sign, and there will be no penalty for credit unions that choose this option.
- Display the sign that NCUA will distribute and post on its website that reflects the temporary increase.
- Alter the current sign to reflect the temporary increase, by hand or otherwise, as long as the altered sign is legible. This could be done by placing a sticker that reads $250,000 over the portion of the current sign that reads $100,000.
- Credit unions that do not alter the current signs may post additional signs in their lobbies or place a notice on their websites.
- The rule is effective as of October 22, 2008 and comments will be accepted until December 22, 2008. Please submit your comments to CUNA by December 11, 2008.
Please feel free to fax your responses to CUNA at 202-638-7052; e-mail them to Senior Vice President and Deputy General Counsel Mary Dunn at firstname.lastname@example.org and to Senior Assistant General Counsel Jeff Bloch at email@example.com; or mail them to Mary and Jeff in c/o CUNAs Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, Suite 600, Washington, DC 20004-2601. You may also contact us at 800-356-9655, ext. 6732, if you have questions or would like a copy of the interim final rule. You may also access here.
QUESTIONS TO CONSIDER REGARDING THE
SHARE INSURANCE SIGN INTERIM FINAL RULE
- NCUA believes this rule will minimize burdens and provide the greatest flexibility possible with regard to
displaying the official sign that incorporates the new insurance limits, while also providing members with the
necessary information. Do you agree the rule accomplishes this goal? Do you have any suggestions that would
provide further improvements?
- Other comments?
Eric Richard General Counsel (202) 508-6742 firstname.lastname@example.org |
Mary Mitchell Dunn SVP & Deputy General Counsel (202) 508-6736 email@example.com
Jeffrey Bloch Assistant General Counsel (202) 508-6732 firstname.lastname@example.org
Lilly Thomas Assistant General Counsel (202) 508-6733 email@example.com
Luke Martone Senior Regulatory Counsel (202) 508-6743 firstname.lastname@example.org