WASHINGTON (10/30/08)—The Credit Union National Association (CUNA) is asking credit unions to comment on proposed simplifications to the a National Credit Union Administration (NCUA) rule on share insurance signs for shared branching. Under current rules, a shared branch must list the names of all credit unions served and whether each one is federally insured. The proposal would replace that cumbersome list with a general statement that not all of the credit unions served by a shared teller are federally insured and that members should contact their credit union for further information. CUNA notes that the proposal recognizes the burden of the current requirements for those shared branch networks that are national in scope, which may serve thousands of individual credit unions. That situation often results in lengthy signs that need to be updated frequently. The proposal also:
* Requires that the second sign must be similar to the current official NCUA sign in terms of design, color, and font. The NCUA will produce signs that meet these new requirements and will make them available at a reasonable cost. * Clarifies that tellers in nonfederally insured credit union branches may accept deposits for federally insured credit unions as part of a shared branching network. However, these credit union branches may not display the official NCUA sign and there would, therefore, be no need to display the second sign.
Comments are due to the agency by Nov. 21, and CUNA seeks comments by Nov. 17. CUNA specifically asks credit unions to address the NCUA request for comment to help the agency understand the inner workings of shared branching. Use the resource link below to read the complete request for comment.