Rule2026-16023
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
August 6, 2026
Effective
September 8, 2026
Issuing agencies
National Credit Union Administration
Abstract
The NCUA Board (Board) is amending its 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 rule will reduce regulatory burden by eliminating unnecessary and redundant requirements related to disclosing when nonmember accounts are not covered by federal share insurance.
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 150 (Thursday, August 6, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 150 (Thursday, August 6, 2026)]
[Rules and Regulations]
[Pages 50686-50688]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-16023]
-----------------------------------------------------------------------
NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 741
RIN 3133-AG00
Requirements for Insurance
AGENCY: National Credit Union Administration (NCUA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The NCUA Board (Board) is amending its 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 rule will reduce regulatory burden
by eliminating unnecessary and redundant requirements related to
disclosing when nonmember accounts are not covered by federal share
insurance.
DATES: This final rule is effective on September 8, 2026.
FOR FURTHER INFORMATION CONTACT: Frank Kressman, General Counsel,
Office of General Counsel at (703) 518-6540 or at 1775 Duke Street,
Alexandria, VA 22314.
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 applying 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 NCUA's regulations. Subpart B lists additional
regulations, set forth elsewhere in 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 from sources other than other credit unions and public
units (or, for low-income designated credit unions, any nonmembers)
must, under NCUA's current regulation Sec. 741.10, identify such
accounts on all required reports to NCUA and notify all nonmember
account holders in writing that their accounts are not insured by the
Share Insurance Fund.
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.\1\ 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 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.
---------------------------------------------------------------------------
\1\ See 12 U.S.C. 1752(5).
---------------------------------------------------------------------------
To reduce regulatory burden, on January 28, 2026, the Board
published a notice of proposed rulemaking in the Federal Register
proposing to eliminate Sec. 741.10 of subpart A of part 741 as its
provisions are redundant to the disclosures FISCUs already must make as
part of their agreement for maintaining federal share insurance.\2\
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.\3\ 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.\4\
---------------------------------------------------------------------------
\2\ 91 FR 3690 (Jan. 28, 2026).
\3\ 60 FR 58502 (Nov. 28, 1995).
\4\ 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>.
---------------------------------------------------------------------------
As noted in the proposal, 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 proposed to remove Sec. 741.10 but stressed that FISCUs are
still contractually required to fulfill the terms of NCUA Form 9600 as
a condition of maintaining federal share insurance coverage.
In the proposal, the Board also solicited comments suggesting
changes that should be made to Sec. 741.9 of NCUA's regulations, which
prohibits FICUs from offering members shares that are not eligible for
federal share insurance coverage.
B. Legal Authority
The Board is issuing this final rule pursuant to its authority
under the FCU Act. Under the FCU Act, NCUA is the chartering and
supervisory authority for FCUs and the federal supervisory authority
for FICUs.\5\ The FCU Act grants NCUA a broad mandate to issue
[[Page 50687]]
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.\6\ Section 207 of the FCU Act is a specific grant of authority
over share insurance coverage, conservatorships, and liquidations.\7\
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.\8\ 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.
---------------------------------------------------------------------------
\5\ 12 U.S.C. 1752-1775.
\6\ 12 U.S.C. 1766(a).
\7\ 12 U.S.C. 1787.
\8\ 12 U.S.C. 1789.
---------------------------------------------------------------------------
II. Final Rule
A. Overview
This final rule follows publication of the proposed rule and takes
into consideration the comments received on the proposal. When the
public comment period closed on March 30, 2026, the Board had received
12 public comments. Comments were submitted by individuals, state
leagues and national trades, and an association of state credit union
supervisors. Eleven commenters supported the proposal. One generally
opposed NCUA's deregulatory initiative. After careful consideration of
the issues raised by the commenters, the Board has decided to adopt the
proposal without change.
B. Discussion of Public Comments
This section of the preamble discusses the significant issues
raised by the commenters, and the Board's responses to the comments.
All 11 supportive commenters concurred with the Board's assessment
that the provision is an unnecessary regulatory requirement that is
duplicative of the contractual obligations imposed by Form 9600 for
maintaining share insurance. This contract clearly and independently
sets forth the requirements to identify nonmember share or deposit
accounts and to notify nonmembers that such accounts are not insured by
the Share Insurance Fund. One state league provided a FICU's comment
noting the redundancy does not enhance consumer understanding or safety
but does create additional administrative work. The commenter said the
proposal streamlines compliance expectations while preserving all
essential disclosure requirements. Three commenters said the proposal
maintains essential protections while streamlining compliance by
eliminating unnecessary notifications and cutting duplicative paperwork
and reporting. Three commenters cited benefits to small FICUs. The
Board appreciates and agrees with these comments.
One commenter suggested that NCUA should provide a more
standardized plain-language document to ensure compliance with the
contractual obligations under Form 9600 and that all people, including
those lacking great financial literacy, receive consistent information
across all FISCUs. They suggested that the final rule contain a clear
reminder that even though the regulatory section is being removed, the
requirement to notify nonmembers of a lack of federal insurance remains
a condition of maintaining federal share insurance. The commenter also
agreed with the Board's determination that the changes will not
negatively impact families' well-being. The Board appreciates the
commenter's input but has not seen evidence of a need to provide FICUs
a standardized notice document. The Board also believes it clearly
stated in the proposal that the removal of Sec. 741.10 does not remove
FISCUs' contractual obligation to fulfill the terms of NCUA Form 9600
as a condition of maintaining federal share insurance coverage.
Nevertheless the Board reiterates here that the removal of Sec. 741.10
does not remove FISCUs contractual obligation to notify nonmembers of
their lack of federal share insurance remains a condition of
maintaining federal share insurance.
One commenter voiced general opposition to NCUA's deregulatory
actions and expressed that the actions inappropriately prioritized
reducing regulatory burdens at the expense of protecting consumers and
the safety of FICUs. The Board appreciates the commenter's input but
strongly disagrees that NCUA's deregulatory actions have prioritized
reducing regulatory burdens at the expense of protecting consumers and
the safety of FICUs.
Separately, in response to the proposal's request for additional
comments on Sec. 741.9, which prohibits offering member shares not
eligible for federal share insurance coverage, one commenter supported
considering removing Sec. 741.9. This commentor generally supports
greater flexibility for FISCUs, but stressed that the volume of
deregulatory proposed rules has not provided sufficient time to
thoroughly analyze the implications of removing the prohibition. The
commenter said removing Sec. 741.9 also might be beneficial, should
the credit union system obtain access to supplemental capital for net
worth purposes on par with credit unions worldwide. The Board
appreciates the commenter's input and will continue to consider it as
it evaluates any future changes.
III. Regulatory Procedures
A. 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
Information and Regulatory Affairs (OIRA), within the Office of
Management and Budget (OMB) in accordance with the requirements of the
Executive Order.\9\ 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.\10\ This final rule was drafted
and reviewed in accordance with Executive Order 12866 and Executive
Order 13563. OIRA has determined that this final rule is not a
``significant regulatory action'' as defined by section 3(f) of
Executive Order 12866.
---------------------------------------------------------------------------
\9\ 58 FR 51735 (Oct. 4, 1993).
\10\ 76 FR 3821 (Jan.21, 2011).
---------------------------------------------------------------------------
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.\11\ This final rule is considered an Executive Order 14192
deregulatory action.
---------------------------------------------------------------------------
\11\ 90 FR 9065 (Feb. 6, 2025).
---------------------------------------------------------------------------
B. Regulatory Flexibility Act
The Regulatory Flexibility Act \12\ 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.\13\ For purposes of this
analysis, NCUA considers small credit unions to be those having under
$100 million in
[[Page 50688]]
assets.\14\ The Board fully considered the potential economic impacts
of the regulatory amendments on small credit unions.
---------------------------------------------------------------------------
\12\ 5 U.S.C.601 et seq.
\13\ 5 U.S.C. 605(b).
\14\ 80 FR 57512 (Sept. 24, 2015).
---------------------------------------------------------------------------
The final rule will reduce regulatory burdens on FICUs by
eliminating an unnecessary and redundant section within 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. Accordingly, NCUA
certifies the final rule will not have a significant economic impact on
a substantial number of small credit unions.
C. 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 OMB control
number. The PRA applies to rulemaking 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. NCUA
has reviewed this rule and determined that it does not create any new
or revise any existing collections of information. Accordingly, no PRA
submissions to OMB will be made with respect to this rule.
D. Executive Order 13132 on Federalism
Executive Order 13132 encourages independent regulatory agencies to
consider the impact of their actions on state and local interests.\15\
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 final rule will reduce regulatory burden by eliminating
an unnecessary and redundant section within NCUA's regulations imposing
requirements on FICUs for obtaining and maintaining federal share
insurance. Thus the rulemaking will not have 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.
---------------------------------------------------------------------------
\15\ 64 FR 43255 (Aug. 4, 1999).
---------------------------------------------------------------------------
E. Assessment of Federal Regulations and Policies on Families
NCUA has determined that this final rule will not affect family
well-being within the meaning of Section 654 of the Treasury and
General Government Appropriations Act, 1999.\16\ The final rule will
reduce regulatory burden by eliminating an unnecessary and redundant
section within NCUA's regulations imposing requirements on FICUs for
obtaining and maintaining federal share insurance. While the 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 wellbeing, including financial
well-being is, at most, indirect.
---------------------------------------------------------------------------
\16\ Public Law 105-277, 112 Stat. 2681 (1998).
---------------------------------------------------------------------------
F. Congressional Review Act
Subtitle E of the Small Business Regulatory Enforcement Fairness
Act of 1996, also known as the Congressional Review Act (CRA),
generally provides for congressional review of agency rules.\17\ NCUA
must submit a report to Congress and the Comptroller General when it
issues a final rule, as defined by the CRA.\18\An agency rule, in
addition to being subject to congressional oversight, may also be
subject to a delayed effective date if the rule is a ``major rule.''
OIRA has determined that this rule is not a ``major rule'' within the
meaning of the relevant sections of the CRA. NCUA will also file
appropriate reports with Congress and the Comptroller General so this
rule may be reviewed.
---------------------------------------------------------------------------
\17\ 5 U.S.C. 801-808.
\18\ 5 U.S.C. 804(3).
---------------------------------------------------------------------------
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 29th day
of July, 2026.
Melane Conyers-Ausbrooks,
Secretary of the Board.
For the reasons stated in the preamble, the NCUA Board amends 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, 1790d, 3331 et
seq; 31 U.S.C. 3717.
Sec. 741.10 [Removed and Reserved]
0
2. Remove and reserve Sec. 741.10.
[FR Doc. 2026-16023 Filed 8-5-26; 8:45 am]
BILLING CODE 7535-01-P
</pre></body>
</html>Indexed from Federal Register on August 6, 2026.
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.