Comment period opens for amendment to NCUA share account requirements


A proposed rule that would amend NCUA’s regulation governing the requirements for a share account to be separately insured as a joint account was published in the Federal Register on Friday, triggering a 30-day comment period.

At its May meeting, the NCUA board unanimously approved the proposed rule on joint ownership share accounts that is meant to provide an alternative method to satisfy the membership card or account signature-card requirement. The proposal amends the regulation “to explicitly provide that the signature-card requirement could be satisfied by information contained in the account records of the insured credit union,” according to NCUA.

If adopted, the proposed rule would assist the NCUA in promptly determining account ownership and level of share insurance coverage for each owner in the event a federally insured credit union fails, helping to alleviate delays and uncertainty for members, according to NCUA. The proposal would apply to all federally insured credit unions and would not impose any increased burden or new recordkeeping requirements for joint accounts.

The comment period ends July 6.


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