The NCUA on Wednesday issued a reminder to credit unions, and their members, that unlimited insurance coverage for noninterest bearing transaction accounts will expire on Dec. 31.
That’s also the same day that the Temporary Corporate Credit Union Share Guarantee will expire, the agency said in a letter to federally insured credit unions, making “the successful conclusion of this phase of the corporate system resolution program.”
The $250,000 standard maximum share insurance remains in place but the temporary unlimited protection put in place in March 2010 by the Dodd-Frank Act.
The same level of coverage will continue on deposits in corporate credit unions as the temporary unlimited coverage put in place there in 2009 also expires.
“Credit unions conducting business with corporate credit unions should evaluate their uninsured corporate account holdings and perform appropriate due diligence,” the agency said in the letter. The same goes for credit union investments in federally insured deposits at other financial institutions, the agency said.
The NCUA also advised credit unions to alert members of their potential insurance coverage changes and to ensure that their own account disclosures properly disclose the level of insurance coverage.
This all could change if the TAG legislation that died in the Senate last week is revived, passed through Congress and signed by the president by the end of the year, the agency’s statement 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) 518-1140 or OCPMail@ncua.gov.
- Corporate credit unions with questions should contact the NCUA’s Office of Corporate Credit Unions at (703) 518-6640 or OCCUMail@ncua.gov.
- For all other inquiries related to the agency’s letter, contact the NCUA’s Office of Examination and Insurance at (703) 518-6360 or EIMail@ncua.gov.