Proposed Rule2026-01699
Requirements for Insurance
Primary source
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Published
January 28, 2026
Issuing agencies
National Credit Union Administration
Abstract
The NCUA Board (Board) is issuing for public comment a proposal to amend the NCUA's regulations that establish the requirements for obtaining and maintaining federal share insurance with the National Credit Union Share Insurance Fund (Share Insurance Fund). The provisions of this part apply to all federally insured credit unions (FICUs). The proposal would reduce regulatory burden by eliminating unnecessary and redundant requirements related to disclosing when nonmember accounts are not covered by federal share insurance.
Full Text
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<title>Federal Register, Volume 91 Issue 18 (Wednesday, January 28, 2026)</title>
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[Federal Register Volume 91, Number 18 (Wednesday, January 28, 2026)]
[Proposed Rules]
[Pages 3690-3692]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01699]
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 741
RIN 3133-AG00
Requirements for Insurance
AGENCY: National Credit Union Administration (NCUA).
ACTION: Proposed rule.
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SUMMARY: The NCUA Board (Board) is issuing for public comment a
proposal to amend the NCUA's regulations that establish the
requirements for obtaining and maintaining federal share insurance with
the National Credit Union Share Insurance Fund (Share Insurance Fund).
The provisions of this part apply to all federally insured credit
unions (FICUs). The proposal would reduce regulatory burden by
eliminating unnecessary and redundant requirements related to
disclosing when nonmember accounts are not covered by federal share
insurance.
DATES: Comments must be received by March 30, 2026.
ADDRESSES: Comments may be submitted in one of the following ways.
(Please send comments by one method only):
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
The docket number for this proposed rule is NCUA-2026-0136. Follow the
``Submit a comment'' instructions. If you are reading this document on
<a href="http://federalregister.gov">federalregister.gov</a>, you may use the green ``SUBMIT A PUBLIC COMMENT''
button beneath this rulemaking's title to submit a comment to the
<a href="http://regulations.gov">regulations.gov</a> docket. A plain language summary of the proposed rule
is also available on the docket website.
<bullet> Mail: Address to Melane Conyers-Ausbrooks, Secretary of
the Board, National Credit Union Administration, 1775 Duke Street,
Alexandria, Virginia 22314-3428.
<bullet> Hand Delivery/Courier: Same as mailing address.
Mailed and hand-delivered comments must be received by the close of
the comment period.
Public Inspection: Please follow the search instructions on <a href="https://www.regulations.gov">https://www.regulations.gov</a> to view the public comments. Do not include any
personally identifiable information (such as name, address, or other
contact information) or confidential business information that you do
not want publicly disclosed. All comments are public records; they are
publicly displayed exactly as received and will not be deleted,
modified, or redacted. Comments may be submitted anonymously. If you
are unable to access public comments on the internet, you may contact
the NCUA for alternative access by calling (703) 518-6540 or emailing
<a href="/cdn-cgi/l/email-protection#9bd4dcd8d6faf2f7dbf5f8eefab5fcf4ed"><span class="__cf_email__" data-cfemail="de91999d93bfb7b29eb0bdabbff0b9b1a8">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Frank Kressman, General Counsel,
Office of General Counsel, at (703) 518-6540 or at National Credit
Union Administration, 1775 Duke Street, Alexandria, Virginia 22314-
3428.
SUPPLEMENTARY INFORMATION:
I. Introduction
A. Background
Part 741 generally applies to federal credit unions (FCUs),
federally insured, state-chartered credit unions (FISCUs), and credit
unions making application for insurance of accounts pursuant to title
II of the Federal Credit Union Act (FCU Act). This part prescribes
various requirements for obtaining and maintaining federal share
insurance, and paying insurance premiums and the capitalization
deposit. Subpart A of Part 741 contains substantive requirements that
are not codified elsewhere in the NCUA's regulations. Subpart B lists
additional regulations, set forth elsewhere in the NCUA's regulations
as applying to FCUs, that also apply to FISCUs.
A FISCU that is permitted by state law to accept nonmember shares
or deposits must, under NCUA's current regulation Sec. 741.10,
identify such accounts on all required reports and notify all nonmember
account holders in writing that their accounts are not insured by the
Share Insurance Fund. As is discussed in more detail later in this
preamble, to reduce regulatory burden, the Board is proposing to
eliminate Sec. 741.10 of Subpart A of part 741 as unnecessary and
redundant to the disclosures FISCUs are already required to make as
part of their agreement for maintaining federal share insurance.
B. Legal Authority
The Board is issuing this proposal pursuant to its authority under
the FCU Act. Under the FCU Act, the NCUA is the chartering and
supervisory authority for FCUs and the federal supervisory authority
for FICUs.\1\ The FCU Act grants the NCUA a broad mandate to issue
regulations governing both FCUs and all FICUs. Section 120 of the FCU
Act is a general grant of regulatory authority and authorizes the Board
to prescribe rules and regulations for the administration of the FCU
Act.\2\ Section
[[Page 3691]]
207 of the FCU Act is a specific grant of authority over share
insurance coverage, conservatorships, and liquidations.\3\ Section 209
of the FCU Act is a plenary grant of regulatory authority to issue
rules and regulations necessary or appropriate to carry out its role as
share insurer for all FICUs.\4\ Accordingly, the FCU Act grants the
Board broad rulemaking authority to ensure that the federally insured
credit union industry and the Share Insurance Fund remain safe and
sound.
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\1\ 12 U.S.C. 1752-1775.
\2\ 12 U.S.C. 1766(a).
\3\ 12 U.S.C. 1787.
\4\ 12 U.S.C. 1789.
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II. Proposed Rule
Section 741.10 applies to FISCUs that are permitted by state law to
accept nonmember shares or deposits from sources other than those
provided for in the FCU Act. Shares or deposits from other credit
unions and public units or, for low-income-designated credit unions,
from any nonmembers, are included as insurable accounts under the FCU
Act.\5\ For any other nonmember funds permitted by state law, Sec.
741.10 requires FISCUs to identify such nonmember accounts as nonmember
shares or deposits on any statement or report required by the Board for
insurance purposes. Immediately after a state-chartered credit union
receives notice from the NCUA that its member accounts are federally
insured, Sec. 741.10 requires the credit union to advise any present
nonmember share and deposit holders, by letter, that their accounts are
not insured by the Share Insurance Fund. FISCUs are similarly required
to notify any future nonmember share and deposit fund holders by letter
as they open accounts. The Board is proposing to remove Sec. 741.10 as
unnecessary and redundant to disclosures FISCUs are already required to
make as part of their agreement for maintaining federal share
insurance.
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\5\ See 12 U.S.C. 1752(5).
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The NCUA adopted this regulation in 1995 to incorporate
requirements already imposed on FISCUs by the Agreement for Insurance
of Accounts, which must be completed by state-chartered credit unions
applying for federal share insurance.\6\ Current NCUA Form 9600,
``Information to be Provided in Support of the Application of a State
Chartered Credit Union for Insurance of Accounts,'' maintains these
same requirements.\7\
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\6\ 60 FR 58502 (Nov. 28, 1995).
\7\ See Form NCUA 9600, Information to be Provided in Support of
the Application of a State Chartered Credit Union for Insurance of
Accounts, page 14, available at <a href="https://ncua.gov/files/publications/resources-expansion/NCUA_9600.pdf">https://ncua.gov/files/publications/resources-expansion/NCUA_9600.pdf</a>.
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The Board is now of the view that, to minimize the volume of
regulations and other materials FICUs must review to comply with legal
and contractual requirements, Sec. 741.10 should be removed as
duplicative of the contractual requirement imposed on FISCUs as part of
maintaining federal share insurance. Thus, the Board proposes to remove
Sec. 741.10 but stresses that FISCUs are still contractually required
to fulfill the terms of NCUA 9 Form 600 as a condition of maintaining
federal share insurance coverage.
The Board solicits comments on all aspects of this proposal and
will consider any comments it receives. The Board also solicits
comments suggesting changes that should be made to Sec. 741.9 of the
NCUA's regulations, which prohibits FICUs from offering members shares
that are not eligible for federal share insurance coverage.
III. Regulatory Procedures
A. Providing Accountability Through Transparency Act of 2023
The Providing Accountability Through Transparency Act of 2023 (5
U.S.C. 553(b)(4)) requires that a notice of proposed rulemaking include
the internet address of a summary of not more than 100 words in length
of a proposed rule, in plain language, that shall be posted on the
internet website under section 206(d) of the E-Government Act of 2002
(44 U.S.C. 3501 note) (commonly known as <a href="http://regulations.gov">regulations.gov</a>).
In summary, to reduce regulatory burden, the proposal would
eliminate unnecessary and redundant requirements imposed on FICUs for
obtaining and maintaining federal share insurance coverage. The
specific provision relates to the disclosure of lack of federal share
insurance coverage for uncovered nonmember accounts.
The proposal and the required summary can be found at <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
B. Executive Orders 12866, 13563, and 14192
Pursuant to Executive Order 12866 (``Regulatory Planning and
Review''), a determination must be made whether a regulatory action is
significant and therefore subject to review by the Office of Management
and Budget (OMB) in accordance with the requirements of the Executive
Order.\8\ Executive Order 13563 (``Improving Regulation and Regulatory
Review'') supplements and reaffirms the principles, structures, and
definitions governing contemporary regulatory review established in
Executive Order 12866.\9\ This proposed rule was drafted and reviewed
in accordance with Executive Order 12866 and Executive Order 13563. OMB
has determined that this proposed rule is not a ``significant
regulatory action'' as defined in section 3(f)(1) of Executive Order
12866. Further, this proposed rule to remove an unnecessary provision
is consistent with Executive Order 13563.
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\8\ 58 FR 51735 (Oct. 4, 1993).
\9\ 76 FR 3821 (Jan. 21, 2011).
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Executive Order 14192 (``Unleashing Prosperity Through
Deregulation'') requires that any new incremental costs associated with
new regulations shall, to the extent permitted by law, be offset by the
elimination of existing costs associated with at least 10 prior
regulations.\10\ This proposed rule is expected to be a deregulatory
action under Executive Order 14192.
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\10\ 90 FR 9065 (Feb. 6, 2025),
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C. Regulatory Flexibility Act
The Regulatory Flexibility Act \11\ generally requires an agency to
conduct a regulatory flexibility analysis of any rule subject to notice
and comment rulemaking requirements, unless the agency certifies that
the rule will not have a significant economic impact on a substantial
number of small entities. If the agency makes such a certification, it
shall publish the certification at the time of publication of either
the proposed rule or the final rule, along with a statement providing
the factual basis for such certification.\12\ For purposes of this
analysis, the NCUA considers small credit unions to be those having
under $100 million in assets.\13\ The Board fully considered the
potential economic impacts of the regulatory amendments on small credit
unions. The proposed rule would reduce regulatory burdens on FICUs by
eliminating an unnecessary and redundant section within the NCUA's
regulations, which imposes requirements on FICUs for obtaining and
maintaining federal share insurance. Its removal simplifies the
regulatory code by eliminating unnecessary text.
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\11\ 5 U.S.C. 601 et seq.
\12\ 5 U.S.C. 605(b).
\13\ 80 FR 57512 (Sept. 24, 2015).
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Accordingly, the NCUA certifies that the proposed rule would not
have a significant economic impact on a substantial number of small
entities.
D. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA) generally provides that
an agency may not conduct or sponsor, and not withstanding any other
provision of
[[Page 3692]]
law, a person is not required to respond to, a collection of
information, unless it displays a currently valid Office of Management
and Budget control number. The PRA applies to rulemakings in which an
agency creates a new or amends existing information collection
requirements. For purposes of the PRA, an information-collection
requirement may take the form of a reporting, recordkeeping, or a
third-party disclosure requirement. The NCUA has determined that the
changes described in this notice do not create a new information
collection or revise an existing information collection as defined by
the PRA.
E. Executive Order 13132 on Federalism
Executive Order 13132 encourages certain agencies to consider the
impact of their actions on state and local interests. The NCUA, an
agency as defined in 44 U.S.C. 3502(5), voluntarily complies with the
executive order to adhere to fundamental federalism principles. The
proposal would reduce regulatory burden by eliminating an unnecessary
and redundant section within the NCUA's regulations imposing
requirements on FICUs for obtaining and maintaining federal share
insurance. Thus, the change would not have a direct effect on the
states, the relationship between the national government and the
states, or on the distribution of power and responsibilities among the
various levels of government.
F. Assessment of Federal Regulations and Policies on Families
The NCUA has determined that this proposed rule would not affect
family well-being within the meaning of section 654 of the Treasury and
General Government Appropriations Act, 1999.\14\ The proposed rule
would reduce regulatory burden by eliminating an unnecessary and
redundant section within the NCUA's regulations imposing requirements
on FICUs for obtaining and maintaining federal share insurance. While
the proposed rescission is intended to reduce regulatory burden
generally to allow FCUs to focus on their provision of financial
services to members, any potential positive effect on family well-
being, including financial well-being is, at most, indirect.
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\14\ Public Law 105-277, 112 Stat. 2681 (1998).
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List of Subjects in 12 CFR Part 741
Bank deposit insurance, Credit, Credit unions, Reporting and
recordkeeping requirements.
By the National Credit Union Administration Board, this 23rd day
of January, 2026.
Melane Conyers-Ausbrooks,
Secretary of the Board.
For the reasons stated in the preamble, the NCUA Board proposes to
amend 12 CFR part 741 as follows:
PART 741--REQUIREMENTS FOR INSURANCE
0
1. The authority citation for part 741 continues to read as follows:
Authority: 12 U.S.C. 1757, 1766(a), 1781-1790, and 1790d; 31
U.S.C. 3717.
0
2. Remove and reserve Sec. 741.10.
Sec. 741.10 [Removed and reserved]
[FR Doc. 2026-01699 Filed 1-27-26; 8:45 am]
BILLING CODE 7535-01-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.