Proposed Rule2026-04761
Records Preservation Program and Appendices-Record Retention Guidelines; Catastrophic Act Preparedness Guidelines
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Published
March 11, 2026
Issuing agencies
National Credit Union Administration
Abstract
On April 24, 2024, the NCUA Board (Board) published an advance notice of proposed rulemaking (ANPR) to solicit comments on ways the agency can improve and update its vital records preservation program regulation and accompanying guidelines. Based on public comments received in response to the ANPR and upon further consideration of the issues involved, the Board is publishing this proposed rule to simplify and streamline part 749. The Board is proposing to update part 749 by clarifying the purpose of the regulation, updating the definitions, and removing the appendices.
Full Text
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<title>Federal Register, Volume 91 Issue 47 (Wednesday, March 11, 2026)</title>
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[Federal Register Volume 91, Number 47 (Wednesday, March 11, 2026)]
[Proposed Rules]
[Pages 11934-11944]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04761]
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Parts 703 and 749
RIN 3133-AF61
Records Preservation Program and Appendices--Record Retention
Guidelines; Catastrophic Act Preparedness Guidelines
AGENCY: National Credit Union Administration (NCUA).
ACTION: Proposed rule.
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SUMMARY: On April 24, 2024, the NCUA Board (Board) published an advance
notice of proposed rulemaking (ANPR) to solicit comments on ways the
agency can improve and update its vital records preservation program
regulation and accompanying guidelines. Based on public comments
received in response to the ANPR and upon further consideration of the
issues involved, the Board is publishing this proposed rule to simplify
and streamline part 749. The Board is proposing to update part 749 by
clarifying the purpose of the regulation, updating the definitions, and
removing the appendices.
DATES: Comments must be received on or before May 11, 2026.
[[Page 11935]]
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>.
Follow the instructions for submitting comments for Docket Number NCUA-
2025-0045.
<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 mail address.
Public Inspection: All public comments are available on the Federal
eRulemaking Portal at <a href="https://www.regulations.gov">https://www.regulations.gov</a> as submitted, except
when impossible for technical reasons. Public comments will not be
edited to remove any identifying or contact information. 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#dd929a9e90bcb4b19db3bea8bcf3bab2ab"><span class="__cf_email__" data-cfemail="e4aba3a7a9858d88a48a879185ca838b92">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Office of General Counsel: Gira Bose,
Senior Staff Attorney, Office of General Counsel, at (703) 518-6540 or
at 1775 Duke Street, Alexandria, VA 22314.
SUPPLEMENTARY INFORMATION:
I. Introduction
A. Background
The NCUA's first vital records preservation program rule was
promulgated in 1972 with the purpose of ensuring ``off-site storage for
duplicate vital records which will be used for reconstruction purposes
in the event of a catastrophe.'' \1\ The purpose of the rule is to
ensure that federally insured credit unions (FICUs or credit unions)
can continue providing vital member services if their records are
destroyed as a result of a catastrophic event. This purpose was
reiterated when the agency revised the rule between 1980 and 1981
because, ``[w]hen catastrophic acts occur, such as the Johnstown flood,
Hurricane Agnes, or the Mount St. Helens volcano, credit union records
can be destroyed. When members may most need funds, the credit union
can be completely without records. A records preservation program is
the only way to assure that back-up records are available when
needed.'' \2\
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\1\ Records Preservation Program, 37 FR 19387 (Sept. 20, 1972)
(establishing 12 CFR 749).
\2\ Board Action Memorandum (Nov. 12, 1980).
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Part 749 was further amended in 2007 to build in lessons learned
from Hurricane Katrina and Hurricane Rita. At that time, the Board
concluded that ``NCUA's review of events in the hurricanes' aftermath
demonstrates the need for advance planning and preparation in
successfully responding to a catastrophic act.'' \3\ Specifically,
``challenges such as providing members with access to funds and account
information, loss of, or lack of, access to facilities, and locating
and communicating with staff were some of the immediate issues credit
unions faced.'' \4\ The preamble to the proposed rule recounted the
many ways in which the NCUA, credit unions, trade organizations, and
service providers assisted impacted credit unions by helping to restore
share and loan data where necessary, making staff available, operating
a call center, and assisting with equipment needs.\5\ Drawing on those
experiences, the Board determined that the FICUs that had identified
critical functions for the retrieval of vital records were better able
to address unforeseen difficulties and restore vital member
services.\6\
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\3\ Records Preservation Program and Appendices--Record
Retention Guidelines; Catastrophic Act Preparedness Guidelines, 72
FR 14251 (Mar. 27, 2007) (amending 12 CFR parts 748 and 749).
\4\ Id.
\5\ Id.
\6\ Ibid.
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Part 749 continues to serve an important purpose. However, it has
not been updated since 2007, and Appendix A, which was promulgated in
2001, has never been updated. Appendix A was added to part 749 to
provide guidance, which the Board determined was needed in light of the
frequency of requests for assistance from credit unions.\7\ The 2001
proposed rule received 11 comment letters, all of which expressed
general support for the proposal. Five of these comment letters
expressed approval specifically for the addition of Appendix A.\8\
While some commenters suggested various changes, in finalizing Appendix
A the Board noted that ``the record retention guidelines are merely
recommendations and credit unions may adopt other retention periods for
these or other types of records.'' \9\ In 2007, NCUA issued Appendix
B--Catastrophic Act Preparedness Guidelines to facilitate the recovery
of essential operations after a catastrophic act with the expectation
that these guidelines would result in continued member confidence in
the credit union system.\10\ When Appendix B was initially proposed,
most commenters opposed it on the grounds that sufficient guidance
already existed and that including it in the regulation would cause
examiners and credit union staff to misconstrue the guidance as being
enforceable like a regulation.\11\
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\7\ Records Preservation Program, 66 FR 11239 (Feb. 23, 2001)
(amending 12 CFR 749).
\8\ Id.
\9\ Records Preservation Program, 66 FR 40578 (Aug. 3, 2001)
(amending 12 CFR 749).
\10\ 72 FR 42271 (Aug. 2, 2007).
\11\ Id.
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In August 2017, the Board published and sought comment on the NCUA
Regulatory Reform Task Force's (Task Force) first report on
implementing the agency's regulatory reform agenda (Agenda).\12\ The
Agenda identified those regulations the Board intended to amend or
repeal because they were outdated, ineffective, or excessively
burdensome.\13\ The Board published the Task Force's second and final
report in December 2018.\14\ The final report contained the Task
Force's updated recommendations and a refined blueprint for
implementing the Agenda. With regard to part 749, the Task Force
suggested the Board ``review this regulation to identify if any changes
or improvements are needed'' and recommended using an ANPR due to the
complexity of the endeavor.\15\ Over the next few years, the NCUA
received feedback that part 749 is unnecessarily burdensome and unclear
to credit unions. In 2024, the Board issued an ANPR on part 749, as
detailed in Section II below.\16\
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\12\ Regulatory Reform Agenda, 82 FR 39702 (Aug. 22, 2017).
\13\ Id.
\14\ Regulatory Reform Agenda, 83 FR 65926 (Dec. 21, 2018).
\15\ Id.
\16\ Records Preservation Program and Appendices--Record
Retention Guidelines; Catastrophic Act Preparedness Guidelines, 89
FR 31117 (Apr. 24, 2024).
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B. Summary of Proposed Rule
The Board is proposing to update part 749 by clarifying the purpose
of the regulation, updating the definitions, and removing unnecessary
references to recommendations and guidance. The main proposed change is
to remove both Appendix A and Appendix B entirely. Appendix A was added
to part 749 as ``suggested guidelines'' based on the frequency of
requests for assistance from credit unions. However, many commenters to
the ANPR stated that, in practice, Appendix A is followed as if it were
a requirement; thus, Appendix A has become an obstacle to sound record
retention practices and has resulted in credit unions retaining unused
and obsolete records. In further reviewing Appendix A, the Board has
determined that several Appendix A sections--specifically, sections A,
B, and D--duplicate language in the regulatory text of part 749 and are
more appropriately
[[Page 11936]]
addressed in the regulation. Section C of Appendix A, titled ``What
Procedures Should a Credit Union Follow When Destroying Records?,'' is
overly prescriptive on the procedures a credit union should use to
destroy records. The Board proposes to eliminate this language on the
basis that processes for records destruction are better left to the
judgment of a credit union's board of directors.
Section E of Appendix A in particular appears to be a significant
source of confusion as FICUs attempt to balance the recommendation to
maintain documents permanently with the need to reduce the burden of
maintaining old documents indefinitely. Section E of Appendix A lists a
number of documents for permanent retention that, while important to
the founding of a credit union or to its operations, are not
necessarily critical to the restoration of vital member services in the
aftermath of a catastrophic event. Thus, while it is important for a
FICU to retain the documents listed in Appendix A section (E)(1)--
charter, bylaws, amendments, and certificates or licenses to operate
under programs of various government agencies--part 749 may not be the
best place for the NCUA to communicate this information. Furthermore,
it should be reasonable for the Board and for a FICU's membership to
expect that a FICU's leadership would retain these key foundational
documents of its own volition.
For the key operational records listed in Appendix A section
(E)(2), credit unions should determine how long to retain these
documents based on their operations and any requirements of other laws
or regulations, with the assistance of counsel if necessary. Removing
this provision from part 749 does not mean the Board considers key
operational documents to be unimportant, but rather a reflection of the
fact that part 749 is focused on vital records that a credit union
needs to restore vital member services. Part 749 does not preclude a
credit union from classifying additional records to be vital as it
determines necessary.
The Board is proposing to remove Appendix B because, upon
reconsideration, it no longer believes that the benefit of having the
guidance in proximity to the regulation outweighs the potential for
misinterpretation. As guidance, Appendix B is for informational
purposes only and is not a regulatory requirement for credit unions.
II. Overview of the ANPR and Comments Received in Response
The purpose of the 2024 ANPR was to solicit comments on ways the
agency can improve and update its vital records preservation program
regulation and accompanying guidelines. The ANPR asked a series of
questions focused on the definitions in part 749, current credit union
records retention practices, the use of guidance in part 749, and any
interplay between part 749 and other NCUA regulations.
The agency received 25 comments in response to the ANPR. Commenters
were 17 credit unions, 5 state and regional credit union leagues, 1
national credit union trade association, 1 trade association for state
credit union supervisors, and 1 individual member of the public who did
not disclose a group affiliation.
The ANPR questions were grouped into four categories: part 749
definitions, records retention practices, additional guidance, and
other NCUA regulations. The questions and responses are summarized
below.
Part 749 Definitions
(1) Does the definition of vital records in 12 CFR 749.1 contain all,
and only those, records you would consider to be vital for credit
unions?
Ten commenters stated that the definition of ``vital records'' in
12 CFR 749.1 is generally reasonable and appropriate. However, five of
these commenters noted that it is only reasonable to retain these
documents in the short term, i.e., retain only the most recent and
current versions of these documents. If the expectation is that credit
unions should retain them permanently, it is unreasonable.
An additional three commenters noted confusion with the definition
of vital records due to the lack of clarity surrounding the retention
period for such records. By way of example, commenters noted that the
types of records identified in Sec. 749.1 were different than the
types of records listed in Appendix A, and that the NCUA recommended
the records in Appendix A be held permanently. Commenters suggested
that the NCUA should clarify what it means by the terms vital and
permanent because documents that may be vital for restoring member
services in the event that a credit union's records are destroyed would
rarely, if ever, need to be maintained permanently.
One commenter noted that while it believes only the most recent
versions of vital records are necessary to restore service and must be
retained under the current language of Sec. 749.1, an explicit
statement would help alleviate confusion between that provision and
Appendix A.
(2) Are there additional types of documents not listed as a vital
record that you think should be as they are critical for business
operations and to properly serve members?
Six commenters stated that no additional documents needed to be
added to the list of vital records, with one stating that a
comprehensive list would be unwieldy. One commenter stated that the
list excludes key foundational and key operational documents such as
board of directors meeting minutes or board-approved policies. One
commenter suggested that ``loan and mortgage documents'' should be
included, and three commenters suggested that ``contracts and
agreements with vendors'' should be included but that any retention
periods should reflect the limited useful life of these documents. One
commenter suggested including a list of current critical vendors and a
list of all parties that have access to or store the personally
identifiable information of the credit union's members.
One commenter stated that while all the records listed in Sec.
749.1 are vital, the language of the provision needs to be updated to
reflect modern storage and retention practices. For example, lists of
member accounts and loan balances are outdated because that information
is now more often stored digitally with regular backups to the cloud,
and other vital records are maintained by third-party data processors
with agreements that guarantee record preservation and reproduction.
(3) Are there other industry standards or methodologies outside of part
749 that the agency should consider for preserving vital records, for
defining what vital records are, and for determining minimum retention
periods?
One commenter stated that the NCUA and credit unions are the best
judges of what records are vital and the advice in Appendix A section
(D) to consult counsel is sound. Two commenters stated that the NCUA
should look at the statutes of limitations for financial crimes as a
straightforward and helpful model for determining minimum retention
periods. Two commenters suggested looking at Internal Revenue Service
and legal lookback periods as guides, and two other commenters offered
the Association of Records Managers and Administrators standards, the
National Archives and Records Administration standards, and the
[[Page 11937]]
Records Information Management system as sources for records retention
standards that are widely available and well understood.
(4) The primary focus of the records retention guidance in Appendix B
relates specifically to catastrophic act preparedness. Are there any
terms, definitions, or standards that the Board should consider
updating in Appendix B?
Five commenters stated that Appendix B is sufficient. One commenter
added that the Disaster Recovery Institute is an excellent resource
should the NCUA want to consider the issue further. Another commenter
added that while Appendix B is fine and should remain as guidance, the
recommendation that credit unions review their plans annually is
unnecessary and not feasible for many credit unions. The commenter
suggested no less than once every three years as a more workable
recommendation.
Three commenters did not see the need for Appendix B. Two stated
that it appears to be repetitive of other guidance. Another commenter
stated that Appendix B lacks detail and does not address record
retention or retention periods or define the terms it uses.
(5) Are there any other changes to Appendix B that you would recommend?
One commenter suggested adding a recommendation that credit unions
conduct regular testing of their plans as appropriate for their size.
Five commenters had no suggested changes. Of these five, two stated
that Appendix B is redundant considering the availability of other
guidance, such as that of the Federal Financial Institutions
Examination Council (FFIEC) and thus should be removed.
Records Retention Practices
(6) How long, and in what format, does your credit union store its
vital records?
Thirteen commenters responded to this question. Most store the bulk
of their records electronically, but some still use a physical format,
particularly for older documents. One commenter is in the process of
converting their records to digital format. The physical formats used
include paper, microfilm, floppy disk, and microfiche. One commenter
stated that the older vital records listed in Appendix A are kept
permanently in their original form.
One commenter stated that, per its records retention schedule, most
corporate and employee vital records are retained permanently, although
some have a 15- or 20-year retention period. This commenter generally
keeps member vital records related to operations and lending for 5 to
10 years unless a different timeframe is required based on the life of
a loan. Financial records are typically retained for 10 years, but
reconciliations are retained permanently. Account records, insurance
policies, and investment records are retained indefinitely until
closed, sold, or matured.
(7) Does your credit union maintain and store any vital records in a
physical format due to a regulatory requirement or supervisory
expectation?
Nine commenters responded to this question. One stated that all
documents are maintained electronically. Three stated that they
maintain some vital records physically but did not provide a reason
why. One commenter stated that some documents are kept in physical
format at the information owner's request. Two stated that they
maintain records in physical format because the cost to digitize them
is prohibitive. One stated that they maintain vehicle titles in paper
format because their state has not switched to electronic titles. This
commenter also maintains contracts and some human resources documents
in paper format.
(8) What impediments, including estimated costs, does your credit union
encounter with storing vital records?
Fourteen commenters responded to this question. Four commenters
stated explicitly that the recommendation in Appendix A (to keep
certain key operational documents permanently) is a big source of
frustration because it results in the retention of records that have no
real use or benefit to the credit union or its members. One of these
four commenters stated that if by vital records the agency means
records needed to restore current business within a month or two, then
the costs to the credit union are no more than the cost of doing
business. But if vital implies that the records must be maintained
permanently, then the commenter would incur significant expenses.
Another commenter stated that permanent records have a rapidly
declining useful life where the security liabilities and storage costs
outweigh the benefits. These costs include maintaining equipment to
reconstruct old documents and legal and reputational costs in the event
of a breach. Another noted that the cost of storage space and storage
security is an ongoing challenge, and the long timelines for retention
mean costly format management and conversion, including retaining and
maintaining obsolete technology.
Two commenters noted the high cost of converting documents to
digital format and the increased risk of data theft--through digital or
paper formats--when keeping documents permanently. Another noted they
have an entire secure room filled with boxes of old documents, which is
a waste of space and employee time. Four commenters noted the dollar
costs of renting storage space, purchasing equipment, or converting to
newer storage methods.
(9) What records do you deem vital for business operations that a
credit union should be required to keep permanently for the purpose of
restoring vital member services?
Fifteen commenters responded to this question and universally
expressed the opinion that no document is needed to be kept permanently
to restore vital member services. One commenter stated that it was
chartered in 1948. This commenter noted that it saves some documents
and photos from that period for archival and historical purposes but
none of those would provide data that would be helpful in restoring
vital member services today.
A common theme in the comments was the need for NCUA to reevaluate
the definitions of vital and permanent. Three commenters noted that 10
to 15 years is long enough for maintaining accounting records. The
types of documents that commenters suggested are permanent include
board meeting minutes (not the packets/information that accompany the
board meetings), supervisory committee minutes, charters, bylaws, and
founding documents.
One commenter stated that the documents listed in Sec. Sec.
749.1(a) through (d) are vital but should not be kept permanently. The
documents listed in Appendix A, sections (E)(1)(a) and (b) and sections
(E)(2)(a) through (c) are important to reference business decisions and
financial results and should be kept permanently, but the records in
Appendix A sections (E)(2)(d) through (j) become outdated and should
not be kept permanently. The minimum retention periods should consider
the business purpose of the record, protect consumer data, and align
with retention periods established in other regulations.
Another commenter stated that it makes sense to permanently retain
official records of the credit union as stated in Appendix A, such as
its charter, bylaws, amendments, and certificates or licenses. In
addition, the
[[Page 11938]]
NCUA should address any retention requirements for legal documents
associated with mergers. However, other documents that NCUA recommends
to be retained permanently are not appropriate to retain because
permanent retention is challenging with no clear benefits, especially
for those credit unions that have experienced mergers over the years.
The commenter also noted that this over-retention practice is legally
risky.
(10) Other than for records that must be kept permanently, are there
specific timeframes you would recommend that other vital records be
retained?
Thirteen commenters responded to this question. Six commenters
stated that they would not recommend specific timeframes, with some
stating that the NCUA should defer to credit unions on retention
periods and others suggesting that the statute of limitations for
financial crimes is a good guide, beyond which credit unions may be
exposed to unnecessary litigation risk. One commenter stated that it
had a list of timelines for various documents based on legal advice.
For example, adverse action notices are kept for 24 months and checks
are kept for 7 years. Two other commenters suggested retaining
documents for 7 years after account or loan closure or transaction
completion. Two commenters provided lists of suggested retention
periods including, for example, 10 years for meeting minutes, 2 to 3
years for member statements, 5 years for audits and payment systems,
and 5 years after the date of document submission to the requesting
authority in the case of subpoenas.
(11) What are the pros and cons of storing vital records physically,
electronically, or in other formats, such as cloud computing storage?
Fourteen commenters responded to this question and generally
provided a range of overlapping pros and cons for any method of
storage. Many suggested that, while there are pros and cons to any
method, the credit union should be able to choose the storage method.
The important considerations should be ease of access, reducing the
number of records, minimizing costs, and increasing member security.
(12) Does your credit union rely on third-party vendors to accurately
maintain vital records, and if so, what are some of the challenges that
these arrangements present?
Of the eight commenters who responded to this question, only two
stated that they do not rely on third-party vendors. One commenter
stated that it uses third-party vendors but did not note any
challenges. The other commenters noted the following challenges: data
access if a vendor goes out of business; timely retrieval when the data
is not under one's immediate control and space; additional vendor
costs; lack of providers who offer this service; planning for future,
potentially increased costs; and greater security considerations.
One commenter stated that it is currently paying $25,000 per year
for third-party vendor storage, and the biggest challenges are ensuring
the vendor maintains appropriate information security standards,
disaster recovery plans, and security of their sites. Thus, drafting
contracts with strong security provisions, along with ongoing
monitoring and due diligence, is very important.
(13) How would you suggest the agency create a more effective framework
for credit unions to preserve vital records?
Fourteen commenters responded to this question. One stated that the
current framework is effective. Five commenters suggested removing the
permanent retention recommendation in Appendix A. One commenter
recommended focusing on clarifying the distinction between vital and
operational records.
One commenter stated that ``journal and cash record'' and ``banking
reconcilements'' are confusing terms and should be clarified. Another
commenter stated that a credit union should not need to maintain a
destruction log for a vital record whose retention period has expired.
This commenter also noted that typically consumers do not request
account records from their financial institution beyond a certain point
after account closure, especially now that consumers have more direct
access to their records through online and mobile banking platforms.
Two commenters stated that the NCUA should articulate an actual
definition of vital records instead of providing a bulleted list. A
third commenter suggested defining records by category (e.g.,
accounting, administration, cards, loans, checks, disclosures) rather
than listing individual documents.
Two commenters suggested clearly differentiating between a
regulation versus a best practice or recommendation, and another
commenter suggested consolidating all records preservation requirements
into one regulation.
(14) What are some challenges for smaller credit unions, defined as
credit unions with total assets of $100 million or less, in maintaining
vital records, and what has worked?
Six commenters responded to this question. Most noted that smaller
credit unions have less resources and limited space and data
capabilities. One said it is getting difficult for smaller credit
unions to permanently keep copies of member statements as recommended
in Appendix A. The commenter noted that the credit union system is
celebrating 90 years of the Federal Credit Union Act, and some credit
unions may have 90 years' worth of account records with no benefit to
permanent retention of these documents. One commenter stated that
credit unions follow guidance as requirements and another stated that
it is important for the NCUA to provide clear direction on its recovery
expectations, such as delineating what a credit union must be able to
retrieve or reproduce and over what duration, and what retention
periods apply for vital records that do not have to be kept
permanently.
(15) What additional support, training, or technical assistance could
the NCUA provide, if any, to assist credit unions with both
understanding and implementing records retention requirements?
Fifteen commenters responded to this question. One stated that no
additional training is needed. Six commenters suggested providing pre-
recorded webinars and trainings. Two stated that webinars with a
question-and-answer component are particularly helpful. One commenter
asked that the NCUA do annual or pre-recorded trainings to help with
interpreting what is a regulation and what is a recommendation, and
training on why the NCUA recommends retaining so many documents
permanently.
One commenter suggested the NCUA create a detailed, standard
retention schedule for use by all credit unions and informed by well-
known records management organizations, such as Information Governance
Professionals or the Institute of Certified Records Managers. This
commenter also suggested the NCUA perform a comprehensive review of all
documents with a view to reducing the permanent retention
recommendation in Appendix A.
Another commenter stated that the NCUA should acknowledge the costs
and challenges of moving from physical to electronic formats, provide
guidance on managing and mitigating them, and
[[Page 11939]]
provide training and webinars on the difference between records
necessary for operational recovery and those preserved for historical
significance.
One commenter stated the NCUA needs to explain the purpose of the
records retention program because, while it is helpful that the
regulation lets credit unions form their own systems, the definitions
of vital and permanent are too vague. The commenter asserted that it is
unclear whether the purpose of part 749 is so credit unions can
recreate enough information to carry on member services or so they can
preserve the history of the credit union. This commenter suggested the
NCUA go through the list of permanent records listed in Appendix A and
contemplate the ``why'' behind suggesting that credit unions keep
certain records permanently.
Additional Guidance
(16) What provisions of Appendix A or Appendix B do not align with the
requirements of part 749, or are otherwise outdated or unclear examples
of the types of records that should be retained? For records you
consider outdated, please explain why.
Thirteen commenters responded to this question with eight
reiterating the main point referenced throughout many comment letters
that the NCUA remove the recommendation in Appendix A that credit
unions retain certain documents permanently. Two commenters noted that
while Appendix A is only guidance, as written it appears more as a
requirement, which credit unions follow in the event examiners seek
compliance.
One commenter stated that the Appendix A guidance on destruction of
records is outdated because it does not consider automated processes
for document destruction, which are more prevalent today. One commenter
noted that referring to the appendices in Sec. 749.0 while
simultaneously saying the appendices are only guidance adds to the
confusion.
(17) In terms of the content of any future guidance, what guidance
would be helpful to better reflect the types of records that must be
retained under part 749?
Eleven commenters responded to this question and, again, most
focused on the need to revise Appendix A's recommendation that some
records be retained permanently and to ensure that each record has a
purpose and value with a reasonable retention period.
(18) What guidance would be helpful for catastrophic act or other
disaster preparedness?
Nine commenters responded to this question with four stating that
Appendix B is sufficient and two stating that it is unnecessarily
duplicative of business continuity plan guidance. Two commenters stated
the NCUA should mimic the FFIEC guidance on Business Continuity
Management. One commenter stated that Appendix B should include
expectations or standards that third-party vendors need to maintain so
that credit unions are better able to negotiate contracts with third
parties.
(19) Is there confusion among stakeholders regarding the enforceability
of regulation versus guidance concerning part 749? If so, what should
be revised?
Thirteen commenters responded to this question. One commenter
stated that the NCUA should be consistent in its approach to
regulations versus guidance. This commenter noted that the regulation
on derivatives contains a record retention provision that cites
Appendix A as a requirement.\17\ One commenter stated there is no
confusion while 11 stated there is confusion primarily because
examiners do not differentiate between guidance and enforceable
regulation.
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\17\ 12 CFR 703.105(d) (``Reports required by this section must,
at a minimum, be retained in accordance with the requirements in
Appendix A to part 749'').
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Other NCUA Regulations
(20) Are there other provisions in the NCUA's regulations that contain
record retention requirements that should be incorporated into part
749?
Nine commenters responded to this question. Three stated that there
are no other provisions that need to be incorporated into part 749. Six
commenters stated that the NCUA should be mindful of retention periods
and requirements in other regulations and statutes and ensure that part
749 does not conflict.
III. Section-by-Section Analysis of the Proposed Rule
The Board has considered the comments received in response to the
ANPR and proposes to amend part 749 as follows:
Heading of Part 749
The Board proposes to add the term vital so that the heading of the
part will read: Vital Records Preservation Program. This makes clear
that the scope of this part is limited to vital records.
Section 749.0 Purpose and Scope
This section lays out the purpose of part 749, which is for FICUs
to maintain a written vital records preservation program to identify,
store, and reconstruct vital records in the event that such records are
destroyed. The proposed rule does not substantively change the purpose
statement. The proposed changes streamline the section and add the term
vital to further clarify the scope of part 749, which is vital records.
Another proposed addition to this section is to make clear that part
749 does not supersede records preservation requirements that may apply
to a credit union pursuant to other law or regulation. Finally, all
references to the appendices are also being removed because the Board
is proposing to remove both appendices A and B.
Section 749.1 Definitions
The current rule defines vital member services and vital records
only through examples. The proposed rule provides definitions for these
terms followed by the same examples that are in the current rule.
Commenters generally did not take issue with the examples but did
suggest that the agency draft definitions for these terms. One
commenter suggested additional documents be added, such as ``loan and
mortgage documents.'' The Board has determined not to add to the list
of examples at this time and is, instead, incorporating a clarifying
statement in Sec. 749.1 that credit unions may classify additional
records as vital and maintain older versions of any vital records as
they determine necessary.
One commenter stated that lists of member accounts and their loan
balances is an outdated example of a vital record because information
is now more often stored digitally and records are also maintained by
third-party service providers. The Board is retaining this example
because current loan balances can reasonably be considered vital to
members seeking access to their accounts. While the information
contained in the record is considered vital, the proposed rule
continues to provide credit unions with the flexibility to store such
records in any format, including but not limited to digital storage
methods.
The definition of vital records center in Sec. 749.3 is moved to
Sec. 749.1 as it is more appropriately located with the other
definitions used in this part.
[[Page 11940]]
Section 749.2 Vital Records Preservation Program
This section sets forth a credit union's obligation to establish a
vital records preservation program. The first change is to make clear
that a records preservation log may be in electronic format. This
information is being added for clarity. This is not a substantive
change. Electronic storage of vital records is already permitted, and
the rule does not mandate any particular format for records storage.
The second proposed change to this section is to reference the legal
implications of records destruction and to permit destruction of older
versions of records unless required by other law or regulation.
The Board proposes to continue its longstanding practice of not
prescribing specific retention periods for individual documents that
would then apply to all credit unions. There are too many variables
that can inform decisions about retention periods, including the
application of various state and federal laws, industry best practices,
statutes of limitations, and a credit union's unique operations and
membership. Thus, credit unions should continue to make these judgments
based on the many factors that inform such decisions. Some commenters
to the ANPR shared their lists of document retention periods, further
informing the Board's decision to provide flexibility and discretion
for credit unions to craft their own retention periods.
Section 749.3 Vital Records Center
This provision continues to require that a credit union maintain,
or contract with a third party to maintain, any equipment or software
necessary for the credit union to access its records from a vital
records center. As noted above, the Board is proposing to move the
definition of vital records center to Sec. 749.1 with other
definitions used in this part. The other proposed change to this
section is to state clearly the NCUA's expectation that, if a credit
union contracts with a third-party service provider to maintain its
vital records, the credit union must maintain effective oversight of
the third-party service provider to ensure the credit union meets its
obligations under part 749. With this addition, the heading of this
section is being amended to include an explicit reference to third-
party service providers. Thus, the heading for this section now reads,
``Vital records center and third-party service providers.''
Section 749.4 Format for Vital Records Preservation
The Board is not proposing any changes to this section.
Section 749.5 Format for Records Required by Other NCUA Regulations
The Board is not proposing any changes to this section.
Appendix A to Part 749--Record Retention Guidelines
The Board is proposing to eliminate Appendix A. Many of the
provisions in the Appendix restate the requirements of part 749, and
section (E) of Appendix A unnecessarily expands the scope of part 749
by going beyond vital records to discuss the retention of foundational
and operational records. While these documents are important and credit
unions should be thoughtful in their approach to managing them, they
are beyond the scope of part 749. Furthermore, section (E)'s reference
to retaining these records permanently has, as reflected in many
comments to the ANPR, created much confusion and unnecessary burden.
While eliminating Appendix A, the Board proposes to retain some
helpful concepts from Appendix A and move them into the regulatory text
of part 749.
The reference in Appendix A section (D) to keeping records until
the credit union's annual supervisory committee audit and the NCUA's
examination have been completed, is now covered by proposed language in
Sec. 749.2(c) that older versions of vital records may be destroyed
``unless required by other law or regulation.'' Appendix A's reference
only to part 715 is unnecessarily limited and may create the erroneous
impression that there are no other laws or regulations that may require
credit unions to maintain more than just the latest version of a vital
record. The proposed amendment to Sec. 749.2(c) should clarify the
Board's meaning that, unless required by other law or regulation, older
versions of vital records may be destroyed once their current versions
are stored.
Section A of Appendix A, titled ``What Format Should the Credit
Union Use for Retaining Records?,'' is already covered in Sec. 749.4,
which permits credit unions to determine the format for preserving
their vital records. The reference to maintaining the necessary
equipment or software to permit an examiner to review and reproduce
stored records upon request is a requirement and is already covered in
Sec. 749.5. Appendix A section (B), titled ``Who is Responsible for
Establishing a System for Record Disposal?,'' is already covered in
Sec. 749.2, which states that a credit union's board of directors is
responsible for setting up a vital records preservation program that
includes a schedule for storage and destruction of records.
Finally, section (C) of Appendix A, titled ``What Procedures Should
a Credit Union Follow When Destroying Records?,'' recommends that
credit unions prepare an index of any records destroyed and retain the
index permanently. It further recommends that destruction of records
should ordinarily be carried out by at least two persons whose
signatures, attesting to the fact that records were destroyed, should
be affixed to the listing. The Board proposes to eliminate this
language on the basis that processes for records destruction are better
left to the judgment of a credit union's board of directors.
Furthermore, advances in technology specifically designed to manage
records retention schedules provide credit unions with more options for
managing the internal controls necessary for a sound records retention
program.
Appendix B to Part 749--Catastrophic Act Preparedness Guidelines
The Board is proposing to eliminate Appendix B--Catastrophic Act
Preparedness Guidelines. This is consistent with the agency's new
approach of streamlining its regulations by removing nonbinding
guidance documents.
References to Part 749 in Other NCUA Regulations
With the elimination of the record retention guidelines, the Board
is proposing to eliminate the reference to those guidelines in the
reporting requirements for derivatives activities. Specifically, 12 CFR
703.105(d) requires federal credit unions to retain any reports
required under NCUA's derivatives regulation in accordance with
Appendix A of part 749. This is a technical amendment but should also
further the Board's goal of better differentiating between regulations
and guidance and removing references to requirements in the context of
guidance.
As an alternative to the proposed rule, the agency considered
rescinding part 749 altogether. Under the Federal Credit Union Act
(FCUA or Act), the agency is authorized to require information and
reports from insured credit unions.\18\ The FCUA also requires federal
credit unions to keep all their books and records.\19\ These statutory
provisions do
[[Page 11941]]
not require the agency to issue regulations for them to go into effect.
They are self-executing. The FCUA does, however, grant the agency the
discretion to prescribe such rules and regulations as it may deem
necessary or appropriate to carry out the provisions of the Act.\20\
And, NCUA has promulgated the record retention regulations that are the
subject of the current rulemaking since 1972, for the specific purpose
of ensuring that FICUs can continue providing vital member services if
their records are destroyed as a result of a catastrophic event.
---------------------------------------------------------------------------
\18\ 12 U.S.C. 1789(a)(8).
\19\ 12 U.S.C. 1766(e).
\20\ 12 U.S.C. 1789(a)(11).
---------------------------------------------------------------------------
Rather than rescind the regulation entirely, which may be
detrimental to FICUs that have relied on the rule for many years or for
new credit unions that may need some direction in this area, the Board
believes that the more prudent approach is to streamline the regulation
and remove the appendices. This approach is consistent with the recent
comments received in response to the ANPR.
IV. Request for Comments on This Proposed Rule
The Board is requesting comment on the entire proposed rule,
including the following specific areas:
(1) Are the proposed definitions of vital member services and vital
records helpful and sufficient? If not, please provide alternative
suggestions.
(2) The proposed Sec. 749.2(a)(3) requires that a credit union's
procedures for its vital records preservation program contain a records
preservation log, which may be in electronic or other format at the
credit union's discretion. The regulation currently requires a records
preservation log to specify each vital record stored and its name,
storage location, storage date, and name of the person sending the
record for storage. The Board believes it is important for a credit
union and for the agency to know where these records are stored.
However, the Board is interested in feedback on whether the provision
is unnecessarily prescriptive in mandating other requirements, such as
storage date and name of the person sending the record for storage.
(3) Does the proposed repeal of Appendices A and B clarify the
scope of part 749 and reduce the burden and compliance costs for
preserving vital records?
(4) The Board is interested in obtaining feedback from commenters
on whether to include a reference in Sec. 749.2 for FICUs to consult
legal counsel when setting minimum retention periods. This suggestion
is currently made in Appendix A--Record Retention Guidelines. However,
with the removal of the record retention guidelines, would it be
helpful to remind credit unions in the text of the regulation that they
can, at their discretion, consult with legal counsel when setting
minimum retention periods? Or do commenters believe that such a
reference is unnecessary and would be construed as a requirement to
consult with counsel when setting minimum retention periods?
(5) As stated above, the Board considered rescinding part 749 as an
alternative to the current proposal. Commenters are invited to provide
feedback on this alternative.
V. Legal Authority
The Board issues this proposed rule pursuant to its authority under
the FCUA to prescribe rules and regulations as it deems appropriate for
administering the FCUA, including its recordkeeping requirements for
federal credit unions. Maintaining vital records is central to a credit
union's ability to properly service its members and to NCUA's ability
to fulfill its supervisory and enforcement duties. Sections 120 and 209
of the FCUA are plenary grants of regulatory authority to the Board to
examine and require information and reports from credit unions as well
as issue rules and regulations necessary or appropriate to carry out
its roles as regulator and share insurer.
Section 106 of the FCUA requires the Board to supervise federal
credit unions and requires federal credit unions to make their books
and records accessible and available for examination to any person
designated by the Board. Section 204 of the FCUA requires the Board to
appoint examiners who shall have the power to thoroughly examine the
affairs of FICUs and report to the Board. Section 206 of the FCUA
requires the agency to impose corrective measures whenever, in the
opinion of the Board, any credit union is engaged in or has engaged in
unsafe or unsound practices in conducting its business. Accordingly,
the FCUA grants the Board broad rulemaking authority to ensure that
credit unions, their member owners, and the National Credit Union Share
Insurance Fund remain safe, sound, and protected. The Board's
requirements codified in part 749 help to identify or prevent such
unsafe and unsound practices to aid the Board in its duties under the
FCUA.
Part 749 also incorporates 15 U.S.C. 7001(d)--the Electronic
Signatures in National and Global Commerce Act--which states that if a
statute, regulation, or other rule of law requires a record be
retained, that requirement is met by retaining an electronic record of
the information in the record that accurately reflects the information
in the record and remains accessible to all persons who are entitled to
access by statute, regulation, or rule of law, for the period required
by such statute, regulation, or rule of law, in a form that is capable
of being accurately reproduced for later reference, whether by
transmission, printing, or otherwise.
VI. 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, on April 24, 2024, NCUA published an ANPR to solicit
comments on ways the agency can improve and update its vital records
preservation program regulation and accompanying guidelines. Based on
public comments received in response to the ANPR, and upon further
consideration of the issues involved, the Board is publishing this
proposed rule to simplify and streamline part 749. The Board is
proposing to update part 749 by clarifying the purpose of the
regulation, updating the definitions, and removing the appendices.
The proposed rule and required summary are available 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),
as amended by Executive Order 14215, 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. OMB has determined that this
proposed rule is not a ``significant regulatory action'' as defined in
section 3(f) of Executive Order 12866.
Executive Order 13563 (Improving Regulations and Regulatory Review)
directs executive agencies to analyze regulations that are ``outmoded,
ineffective, insufficient, or excessively burdensome, and to modify,
streamline,
[[Page 11942]]
expand, or repeal them in accordance with what has been learned.''
Executive Order 13563 also directs that, where relevant, feasible, and
consistent with regulatory objectives, and to the extent permitted by
law, agencies are to identify and consider regulatory approaches that
reduce burdens and maintain flexibility and freedom of choice for the
public. This proposed rule will reduce the burden of retaining vital
records by streamlining 12 CFR part 749 and is consistent with
Executive Order 13563.
Executive Order 14192 (Unleashing Prosperity Through Deregulation)
was issued on January 31, 2025. Section 3(c) of Executive Order 14192
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. This
proposed rule is expected to be a deregulatory action for purposes of
Executive Order 14192.
C. The Regulatory Flexibility Act
The Regulatory Flexibility Act 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.\21\ 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.\22\ For purposes of this
analysis, the NCUA considers small credit unions to be those having
under $100 million in assets.\23\ The Board fully considered the
potential economic impacts of the regulatory amendments on small credit
unions.
---------------------------------------------------------------------------
\21\ 5 U.S.C. 601 et seq.
\22\ 5 U.S.C. 605(b).
\23\ 80 FR 57512 (Sept. 24, 2015).
---------------------------------------------------------------------------
The proposed rule amends part 749 by clarifying the purpose of the
regulation, updating the definitions, and removing unnecessary
references to recommendations and guidance. Part 749 is a longstanding
regulation that requires FICUs to establish a vital records
preservation program to identify, store, and reconstruct vital records
for the purpose of restoring vital member services after a catastrophic
event.
The preamble makes clear that the purpose of the proposed rule is
to reduce the regulatory burden of vital records preservation. It does
so by streamlining the regulation so that only vital records are
preserved and only for so long as they can be used to restore vital
member services. The proposed rule is based on industry feedback,
particularly from small credit unions, that part 749, particularly
Appendix A, is unnecessarily burdensome and unclear. The proposed
elimination of Appendix A, which recommends credit unions retain
certain documents permanently, should reduce the costs of compliance
with part 749.
Accordingly, the NCUA certifies the proposed rule would not have a
significant economic impact on a substantial number of small credit
unions.
D. The Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA) requires that OMB approve
all collections of information by a federal agency from the public
before they can be implemented.\24\
---------------------------------------------------------------------------
\24\ 44 U.S.C. 3501 et seq.
---------------------------------------------------------------------------
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 may not conduct or sponsor, and the respondent is not required to
respond to an information collection unless it displays a valid OMB
control number.
This action does not impose any new information collection burden
under the PRA. The proposed updates will require revision of an
existing information collection to be submitted to the Office of
Information and Regulatory Affairs at OMB for approval under the PRA.
The NCUA is proposing to extend for 3 years, with revision, this
information collection.
Title of Information Collection: Records Preservation, 12 CFR part
749.
OMB Control Number: 3133-0032.
Respondents: All FICUs.
Estimated Annual Burden: 8,886.
The proposed rule contains information collection recordkeeping
requirements that would impose PRA burden on FICUs. This burden is
associated with establishing, retaining and maintaining a written vital
records preservation program.
As of September 30, 2025, the NCUA supervised approximately 4,331
FICUs. The NCUA estimates eight new FICUs in the next 3 years. For each
information collection activity, the burden table lists the estimated
annual number of responses per respondent and estimated time per
response.
The NCUA estimates a total annual burden of 8,886 hours as follows:
NCUA Summary of Estimated Annual Burden (3133-0032)
----------------------------------------------------------------------------------------------------------------
Total
Number of Average estimated
Information collection activity Type of burden Number of responses per time per annual
(frequency of response) respondents respondent response burden
(hours) (hours)
----------------------------------------------------------------------------------------------------------------
Retain and maintain a written vital Recordkeeping (On 4,331 1 2 8,662
records preservation program. Occasion).
Establish a written program......... Recordkeeping (One- 8 1 8 64
time).
--------------------------------------------------
Total Estimated Annual Burden... ....................... ........... .............. ......... 8,726
----------------------------------------------------------------------------------------------------------------
The NCUA invites comments on (a) whether the proposed collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (b) the accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (c) ways to enhance the quality,
utility, and clarity of the information to be collected; (d) ways to
minimize the burden of the collection of information on those who are
to respond, including through the use of appropriate automated,
electronic, mechanical, or other technological collection
[[Page 11943]]
techniques or other forms of information technology; and (e) estimates
of capital or start-up costs and cost of operation, maintenance, and
purchase of services to provide information.
All comments are a matter of public record. Interested persons are
invited to (1) submit written comments via email to
<a href="/cdn-cgi/l/email-protection#c797958684a8aaaaa2a9b3b487a9a4b2a6e9a0a8b1"><span class="__cf_email__" data-cfemail="3c6c6e7d7f5351515952484f7c525f495d125b534a">[email protected]</span></a> or (2) visit <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>
(find this particular information collection by selecting the tab
titled ``Information Collection Review'' and click on to the section
titled ``Currently under Review--Open for Public comment'').
E. Analysis on Executive Order 13132 on Federalism
Executive Order 13132 encourages certain regulatory 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), complies with the
executive order to adhere to fundamental federalism principles. This
proposed rule would apply to all FICUs, including state-chartered
credit unions. The NCUA expects that any effect on states or on the
distribution of power and responsibilities among the various levels of
government will be minor. The proposed changes would mainly clarify the
existing regulations and guidance in this area and are not intended to
affect the division of responsibilities between the NCUA and state
regulatory authorities with oversight of federally insured, state-
chartered credit unions. The NCUA welcomes comments on ways to
eliminate, or at least minimize, any potential impact in this area.
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. The proposed rule relates
to FICUs' vital records retention programs, and any effect on family
well-being is expected to be indirect.
List of Subjects
12 CFR Part 703
Credit unions, Investments, Reporting and recordkeeping
requirements.
12 CFR Part 749
Archives and records, Credit unions, Reporting and recordkeeping
requirements.
By the National Credit Union Administration Board, this 9th day
of March 2026.
Melane Conyers-Ausbrooks,
Secretary of the Board.
For the reasons stated in the preamble, the NCUA Board proposes to
amend 12 CFR parts 703 and 749 as follows:
PART 703--INVESTMENT AND DEPOSIT ACTIVITIES
Subpart B--Derivatives
0
1. The authority citation for part 703 continues to read as follows:
Authority: 12 U.S.C. 1757(7), 1757(8), 1757(14), and 1757(15).
0
2. Amend Sec. 703.105 by removing and reserving paragraph (d).
PART 749--RECORDS PRESERVATION PROGRAM AND APPENDICES--RECORD
RETENTION GUIDELINES; CATASTROPHIC ACT PREPAREDENESS GUIDELINES
0
3. Revise part 749 to read as follows:
PART 749--VITAL RECORDS PRESERVATION PROGRAM
749.0 Purpose and scope.
749.1 Definitions.
749.2 Vital records preservation program.
749.3 Vital records center and third-party service providers.
749.4 Format for vital records preservation.
749.5 Format for records required by other NCUA regulations.
Authority: 12 U.S.C. 1756, 1766(a), 1784, 1786, 1789; 15 U.S.C.
7001(d).
Sec. 749.0 Purpose and scope.
(a) This part describes the obligations of a federally insured
credit union to maintain a vital records preservation program to
identify, store, and reconstruct vital records in the event such
records are destroyed
(b) This part does not supersede records preservation requirements
that may apply to a credit union pursuant to other law or regulation.
Sec. 749.1 Definitions.
For purposes of this part:
Vital member services are the essential financial services that a
credit union provides to its members, such as member access to their
accounts, share withdrawal and deposit facilities, and loan payments
and disbursements.
Vital records are the most recent and current versions of those
records a credit union needs to restore vital member services. These
records are:
(a) A list of share, deposit, and loan balances for each member's
account as of the close of the most recent business day that:
(1) Shows each balance individually identified by a name or number,
(2) Lists multiple loans of one account separately, and
(3) Contains information sufficient to enable the credit union to
locate each member, such as address and telephone number.
(b) A financial report, which lists all of the credit union's asset
and liability accounts, current as of the most recent month-end.
(c) Bank reconcilements, current as of the most recent month-end.
(d) A list of the credit union's accounts at financial
institutions, insurance policies, and investments along with related
contact information, current as of the most recent month-end.
(e) Emergency contact information for employees, officials,
regulatory offices, and vendors used to support vital records.
A credit union may classify additional records as vital and
maintain older versions of any vital records as it determines
necessary.
Vital records center is a storage facility, which may include
another federally insured credit union, at any location far enough from
the credit union's offices to avoid the simultaneous loss of both sets
of records in the event of a catastrophic act.
Sec. 749.2 Vital records preservation program.
(a) The board of directors of a credit union is responsible for
establishing a vital records preservation program within six months of
its insurance certificate being issued. The program must be in writing
and contain procedures for maintaining duplicate vital records at a
vital records center. The procedures must include:
(1) designated staff responsible for vital records preservation,
(2) a schedule for the storage and destruction of vital records,
and
(3) a records preservation log specifying each vital record stored,
its name, storage location, storage date, and name of the person
sending the record for storage. The log may be in electronic format,
for example, a data processing system log.
(b) A credit union that has some or all of its vital records
maintained by an off-site data processor is considered to be in
compliance for the storage of those records if the service agreement
specifies the data processor safeguards against the simultaneous
destruction of production and back-up information.
(c) Unless required by other law or regulation, older versions of
vital
[[Page 11944]]
records may be destroyed once their current versions are stored.
Sec. 749.3 Vital records center and third-party service providers.
A credit union must maintain, or contract with a third-party
service provider to maintain, any equipment or software for its vital
records center necessary for the credit union to access its records. If
a credit union contracts with a third-party service provider to
maintain its records, the credit union must maintain effective
oversight of the third-party service provider to ensure the records
meet the requirements of this section.
Sec. 749.4 Format for vital records preservation.
Preserved vital records may be in any format that can be used to
reconstruct the credit union's vital records. The format used must
accurately reflect the information in the record, remain accessible to
all persons entitled to access by statute, regulation, or rule of law,
and be capable of reproduction by transmission, printing, or otherwise.
Sec. 749.5 Format for records required by other NCUA regulations.
Where NCUA regulations require a credit union to retain certain
writings, records, or information, the credit union may use any format
that accurately reflects the information in the record, is accessible
to all persons entitled to access by statute, regulation, or rule of
law, and is capable of being reproduced by transmission, printing, or
otherwise. The credit union must maintain the necessary equipment or
software to permit an examiner to access the records during the
examination process.
[FR Doc. 2026-04761 Filed 3-10-26; 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.