Proposed Rule2026-09010
Requirements for Insurance
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 7, 2026
Issuing agencies
National Credit Union Administration
Abstract
The NCUA Board (Board) is publishing this proposed rule to amend its regulations governing requirements for share insurance. This proposed rule would eliminate numerous provisions that merely point to substantive provisions codified elsewhere in the NCUA's regulations. The intended effect is to simplify the regulatory text and make it easier to navigate without altering the compliance obligations of federally insured credit unions. The Board believes this action is necessary to streamline the agency's regulations and reduce regulatory complexity.
Full Text
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<title>Federal Register, Volume 91 Issue 88 (Thursday, May 7, 2026)</title>
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[Federal Register Volume 91, Number 88 (Thursday, May 7, 2026)]
[Proposed Rules]
[Pages 24745-24748]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09010]
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Parts 701, 713, and 741
RIN 3133-AF87
Requirements for Insurance
AGENCY: National Credit Union Administration (NCUA).
ACTION: Proposed rule.
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SUMMARY: The NCUA Board (Board) is publishing this proposed rule to
amend its regulations governing requirements for share insurance. This
proposed rule would eliminate numerous provisions that merely point to
substantive provisions codified elsewhere in the NCUA's regulations.
The intended effect is to simplify the regulatory text and make it
easier to navigate without altering the compliance obligations of
federally insured credit unions. The Board believes this action is
necessary to streamline the agency's regulations and reduce regulatory
complexity.
DATES: Comments must be received on or before July 6, 2026.
ADDRESSES: You may submit written comments by any of the following
methods identified by RIN (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-
2026-0993.
<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.
Mailed and hand-delivered comments must be received by the close of
the comment period.
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 NCUA
for alternative access by calling (703) 518-6540 or emailing
<a href="/cdn-cgi/l/email-protection#044b434749656d68446a6771652a636b72"><span class="__cf_email__" data-cfemail="410e06020c20282d012f2234206f262e37">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: 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
Part 741 is divided into two subparts. Subpart A contains
substantive requirements that apply to both federal credit unions
(FCUs) and federally insured state-chartered credit unions (FISCUs)
that are not codified elsewhere in the NCUA's regulations. Subpart B,
on the other hand, generally does not contain substantive requirements.
Its purpose is to list in a centralized way citations to the
substantive provisions
[[Page 24746]]
that apply to FCUs and FISCUs but are set forth elsewhere in the NCUA's
regulations. Before 1995, these requirements were dispersed across the
NCUA's regulations and within the terms of an Agreement for Insurance
of Accounts, which outlined conditions for state-chartered credit
unions obtaining and maintaining federal insurance. In 1995, the agency
issued a final rule consolidating the requirements for insurance that
apply to FISCUs.\1\ That rule did not impose any new requirements. Its
purpose was merely to aid FISCUs by simplifying the process of
determining which regulations they must follow. The Board now believes
that the benefit of removing many of these provisions from part 741 and
reducing the length of the NCUA's regulations outweighs the benefit of
the cross-referencing function served by these provisions.
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\1\ 60 FR 58504 (Nov. 28, 1995).
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The Board may create a reference list outside of its regulations to
the extent credit unions feel an aid continues to be helpful.
B. Legal Authority
The Board has the legal authority to issue this proposed rule
pursuant to its plenary rulemaking authority under the Federal Credit
Union Act and its specific rulemaking authority under the various acts
the Board administers.\4\
II. Proposed Rule
Section 741.1 of subpart A sets forth the Board's examination
authority. It specifies that the Board is authorized to examine any
insured credit union or any credit union applying for insurance. This
authority includes access to all records, reports, and other
information concerning the credit union's affairs. The section also
notes that, to the maximum extent feasible, the NCUA will use
examinations conducted by state regulatory agencies. These are
statutorily granted functions that do not require additional
explanation by regulation.\2\
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\2\ 12 U.S.C. 1781 and 1784. See 12 U.S.C. 1784(d) regarding the
authority to use reports from state supervisory agencies.
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Section 741.201 requires any credit union making application for
insurance to possess minimum fidelity bond coverage pursuant to the
requirements set forth in Sec. Sec. 713.3, 713.5, and 713.6. Section
741.201 also requires a federally insured credit union (FICU) whose
fidelity bond coverage has been terminated to notify the appropriate
NCUA regional director not less than 35 days prior to the effective
date of such termination. This notification requirement does not appear
in part 713. Thus, the Board proposes to transfer this text to Sec.
713.3 with a new paragraph (c) stating, ``A federally insured credit
union whose fidelity bond coverage is terminated shall notify the
appropriate NCUA regional office in writing not less than 35 days prior
to the effective date of such termination.'' The Board is also
proposing to amend Sec. 713.1 to remove that section's reference to
Sec. 741.201. Finally, Sec. 741.201 requires corporate credit unions
to comply with Sec. 704.18 because part 704 establishes the rules for
federally insured corporate credit unions. The Board proposes to remove
Sec. 741.201 as it is unnecessary.
Section 741.205 informs FISCUs that are newly chartered or in
troubled condition that they must comply with subsection 701.14(c)
concerning prior notice and the NCUA's review of a proposed change in
official or senior executive officers. Section 741.205 also contains
references to coordinating with state supervisory authorities. The
Board believes these references serve the important purpose of assuring
state regulators of the NCUA's intent to consult with them on these
matters. Therefore, the Board proposes to transfer the following text
to subsection 701.14(c): ``Federally insured state-chartered credit
unions must submit required information to both the appropriate NCUA
Regional Director and their state supervisor. NCUA will consult with
the state supervisor before making its determination. NCUA will notify
the state supervisor of its approval/disapproval no later than the time
that it notifies the affected individual.''
Section 741.213 informs FISCUs they must adhere to the rules of
practice and procedures for administrative actions and adjudicative
hearings in part 747, but it also informs them that subpart E of part
747 only applies to FCUs. The Board is requesting feedback on its
proposed removal of Sec. 741.213 and whether it should incorporate
into subpart E of part 747 affirmative statements that (1) subpart E
does not apply to FISCUs, and (2) the language that says subpart E
controls over subpart A in the event of a conflict only applies to
FCUs.
Section 741.218 informs FISCUs they must adhere to the ``applicable
provisions in part 709 . . . .'' It further notes that Sec. 709.3 only
applies to FCUs. The Board is proposing to remove Sec. 741.218 and
requests feedback on this proposal, including whether the Board should
consider amending part 709 to clarify which specific sections of part
709 apply to FISCUs. For example, Sec. 709.3, titled ``Challenge to
revocation of charter and involuntary liquidation,'' refers only to
FCUs. However, Sec. 709.0 refers to involuntary liquidation but in the
context of FICUs, presenting the scope of part 709 as including ``the
involuntary liquidation and adjudication of creditor claims in all
cases involving FICUs.''
The following provisions are straight cross-references to other
provisions and do not contain any substantive information that would be
helpful to retain. The Board proposes eliminating these outright.
<bullet> Section 741.206 informs any federally insured corporate
credit union they must comply with part 704.
<bullet> Section 741.207 requires those FISCUs that participate in
the community development revolving loan program to adhere to the
requirements of part 705.\3\
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\3\ Despite the slight difference in wording with Sec. 741.207
referring to the community development revolving loan program and
part 705 referring to the Community Development Revolving Loan Fund
Program, both regulations are referring to the same program.
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<bullet> Section 741.209 informs FISCUs they must comply with the
requirements of part 711 concerning management official interlocks.
<bullet> Section 741.210 informs any FICU that is a member of the
Central Liquidity Facility that it must comply with the requirements of
part 725.
<bullet> Section 741.211 refers to the advertising provisions of
part 740 that apply to all FICUs.
<bullet> Section 741.212 refers to the share insurance provisions
of part 745, subparts A and B, that apply to all FICUs.
<bullet> Section 741.214 refers to compliance with part 748, the
rule that covers Bank Secrecy Act compliance, security program
requirements, and catastrophic act reporting.
<bullet> Section 741.215 refers to compliance with the record
preservation requirements of part 749.
<bullet> Section 741.216 references the flood insurance
requirements of part 760.
<bullet> Section 741.217 refers to the truth in savings
requirements of part 707.
<bullet> Section 741.220 informs FICUs they must adhere to
Regulation P promulgated by the Consumer Financial Protection Bureau to
satisfy the consumer financial protection provisions of the Gramm-
Leach-Bliley Act.\4\
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\4\ 12 CFR 1016.
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<bullet> Section 741.224 refers to compliance with part 750 on
golden parachute and indemnification payments.
[[Page 24747]]
<bullet> Section 741.226 refers to compliance with subpart D of
part 702 on subordinated debt.
The Board requests feedback on all aspects of this rulemaking,
including any consequences or impacts of this proposal not already
identified above. The Board is providing a 60-day comment period for
this proposed rule to account for the volume of proposed rules the
Board is issuing. The longer comment period will avoid placing undue
burden on commenters who are trying to review all of the rulemakings.
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, the Board is publishing this proposed rule to amend its
regulations governing requirements for share insurance. This proposed
rule would eliminate numerous provisions that merely point to
substantive provisions codified elsewhere in the NCUA's regulations.
The intended effect is to simplify the regulatory text and make it
easier to navigate without altering the compliance obligations of
federally insured credit unions. The Board believes this action is
necessary to streamline the agency's regulations and reduce regulatory
complexity.
The proposed rule and the 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)(1) 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, 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 streamline
the NCUA's regulations by removing sections that only serve to
reference other, substantive regulations. This proposed rule 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.\5\ 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.\6\ For purposes of this
analysis, the NCUA considers small credit unions to be those having
under $100 million in assets.\7\ The Board fully considered the
potential economic impacts of the regulatory amendments on small credit
unions. The proposed rule repeals unnecessary sections of the NCUA's
regulations.
Accordingly, the NCUA certifies that 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) generally provides that
an agency may not conduct or sponsor, and not withstanding any other
provision of 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 addressed in this notice do not create a new information
collection or revise an existing information collection as defined by
the PRA.
E. Analysis on 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), complies with the executive
order to adhere to fundamental federalism principles. This proposed
rule is intended to remove regulatory sections that only serve to
reference other, substantive regulations. While it is intended to aid
FISCUs in understanding their regulatory obligations, it is not
intended to affect the division of responsibilities between the NCUA
and state regulatory authorities.
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 removes
duplicative provisions from the NCUA's regulations, and any effect on
family well-being is expected to be indirect.
List of Subjects
12 CFR Part 701
Advertising, Aged, Civil rights, Credit, Credit unions, Fair
housing, Individuals with disabilities, Insurance, Marital status
discrimination, Mortgages, Religious discrimination, Reporting and
recordkeeping requirements, Sex discrimination, Signs and symbols,
Surety bonds
12 CFR Part 713
Bonds, Credit unions, Insurance
12 CFR Part 741
Administrative practice and procedure, Banks, banking, Credit,
Credit unions, Insurance, Reporting and recordkeeping requirements.
[[Page 24748]]
By the National Credit Union Administration Board, this 1st day
of May, 2025.
Melane Conyers-Ausbrooks,
Secretary of the Board.
For the reasons stated in the preamble, the NCUA Board proposes to
amend 12 CFR parts 701, 713, and 741 as follows:
PART 701--ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS
0
1. The authority citation for part 701 continues to read as follows:
Authority: 12 U.S.C. 1752(5), 1755, 1756, 1757, 1758, 1759,
1761a, 1761b, 1766, 1767, 1782, 1784, 1785, 1786, 1787, 1788, 1789.
Section 701.6 is also authorized by 15 U.S.C. 3717. Section 701.31
is also authorized by 15 U.S.C. 1601 et seq.; 42 U.S.C. 1981 and
3601-3610. Section 701.35 is also authorized by 42 U.S.C. 4311-4312.
0
2. Amend Sec. 701.14 by adding paragraph (c)(4) to read as follows:
Sec. 701.14 Change in official or senior executive officer in credit
unions that are newly chartered or are in troubled condition.
* * * * *
(b) * * *
(c) * * *
(4) Consultation. Federally insured state-chartered credit unions
must submit required information to both the appropriate NCUA Regional
Director and their state supervisor. NCUA will consult with the state
supervisor before making its determination. NCUA will notify the state
supervisor of its approval/disapproval no later than the time that it
notifies the affected individual.
PART 713--FIDELITY BOND AND INSURANCE COVERAGE FOR FEDERALLY
INSURED CREDIT UNIONS
0
1. The authority citation for part 713 continues to read as follows:
Authority: 12 U.S.C. 1761a, 1761b, 1766(a), 1766(h),
1789(a)(11).
0
2. Revise Sec. 713.1 to read as follows:
Sec. 713.1 What is the scope of this section?
This section provides the requirements for fidelity bonds for
federally insured credit union employees and officials and for other
insurance coverage for losses such as theft, holdup, vandalism, etc.,
caused by persons outside the credit union. Federally insured, state-
chartered credit unions are required to comply with the fidelity bond
coverage requirements of this part. Corporate credit unions must comply
with Sec. 704.18 of this chapter in lieu of this part.
0
3. Amend Sec. 713.3 by adding paragraph (c) to read as follows:
Sec. 713.3 What bond coverage must a federally insured credit union
have?
* * * * *
(c) A federally insured credit union whose fidelity bond coverage
is terminated shall notify the appropriate NCUA regional office in
writing not less than 35 days prior to the effective date of such
termination.
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. 741.1.
0
3. Remove and reserve Sec. 741.201.
0
4. Remove and reserve Sec. 741.205.
0
5. Remove and reserve Sec. 741.206.
0
6. Remove and reserve Sec. 741.207.
0
7. Remove and reserve Sec. 741.209.
0
8. Remove and reserve Sec. 741.210.
0
9. Remove and reserve Sec. 741.211.
0
10. Remove and reserve Sec. 741.212.
0
11. Remove and reserve Sec. 741.213.
0
12. Remove and reserve Sec. 741.214.
0
13. Remove and reserve Sec. 741.215.
0
14. Remove and reserve Sec. 741.216.
0
15. Remove and reserve Sec. 741.217.
0
16. Remove and reserve Sec. 741.218.
0
17. Remove and reserve Sec. 741.220.
0
18. Remove and reserve Sec. 741.224.
0
19. Remove and reserve Sec. 741.226.
[FR Doc. 2026-09010 Filed 5-6-26; 8:45 am]
BILLING CODE 7535-01-P
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