The NCUA on Wednesday issued a reminder to credit unions, andtheir members, that unlimited insurance coverage for noninterestbearing transaction accounts will expire on Dec. 31.

That's also the same day that the Temporary Corporate CreditUnion Share Guarantee will expire, the agency said in a letter tofederally insured credit unions, making “the successful conclusionof this phase of the corporate system resolution program.”

The $250,000 standard maximum share insurance remains in placebut the temporary unlimited protection put in place in March 2010by the Dodd-Frank Act.

The same level of coverage will continue on deposits incorporate credit unions as the temporary unlimited coverage put inplace there in 2009 also expires.

“Credit unions conducting business with corporate credit unionsshould evaluate their uninsured corporate account holdings andperform appropriate due diligence,” the agency said in the letter.The same goes for credit union investments in federally insureddeposits at other financial institutions, the agency said.

The NCUA also advised credit unions to alert members of theirpotential insurance coverage changes and to ensure that their ownaccount disclosures properly disclose the level of insurancecoverage.

This all could change if the TAG legislation that died inthe Senate last week is revived, passed through Congress andsigned by the president by the end of the year, the agency'sstatement noted.

For more information, the agency said:

• For questions related to insurance coverage of member accounts,contact the NCUA's Office of Consumer Protection at (703) 518-1140or [email protected].
• Corporate credit unions with questions should contact theNCUA's Office of Corporate Credit Unions at (703) 518-6640 or[email protected].
• For all other inquiries related to the agency's letter, contactthe NCUA's Office of Examination and Insurance at (703) 518-6360 or[email protected].