Notification to Members/Shareholders

Issuing agencies

Abstract

The NCUA Board (Board) solicits public comment on a proposal to streamline the methods a federally insured credit union (FICU) may use to provide its members with notice of share insurance coverage. The current regulation is overly prescriptive, mandating that a FICU make available hard copies of certain prescribed materials. While a FICU would still be required to provide notice to members, the proposed rule would defer to the FICU on the method used for such notification. Among other methods, a FICU may elect to provide members with a link to updated online resources that will be maintained on the NCUA website. The Board believes the proposed rule will provide greater flexibility, reduce compliance costs for both NCUA and FICUs, and ensure that members are provided with up-to-date information regarding share insurance coverage.

Full Text

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<title>Federal Register, Volume 91 Issue 202 (Wednesday, October 21, 2026)</title>
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[Federal Register Volume 91, Number 202 (Wednesday, October 21, 2026)]
[Proposed Rules]
[Pages 66537-66539]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-21512]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 745

RIN 3133-AG24


Notification to Members/Shareholders

AGENCY: National Credit Union Administration (NCUA).

ACTION: Proposed rule.

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SUMMARY: The NCUA Board (Board) solicits public comment on a proposal 
to streamline the methods a federally insured credit union (FICU) may 
use to provide its members with notice of share insurance coverage. The 
current regulation is overly prescriptive, mandating that a FICU make 
available hard copies of certain prescribed materials. While a FICU 
would still be required to provide notice to members, the proposed rule 
would defer to the FICU on the method used for such notification. Among 
other methods, a FICU may elect to provide members with a link to 
updated online resources that will be maintained on the NCUA website. 
The Board believes the proposed rule will provide greater flexibility, 
reduce compliance costs for both NCUA and FICUs, and ensure that 
members are provided with up-to-date information regarding share 
insurance coverage.

DATES: Comments must be received by December 21, 2026.

ADDRESSES: Comments may be submitted in one of the following ways. 
(Please send comments by one method only):
    <bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. 
The docket number for this proposed rule is NCUA-2026-1888. Follow the 
``Submit a comment'' instructions. If you are reading this document on 
<a href="http://federalregister.gov">federalregister.gov</a>, you may use the green ``SUBMIT A PUBLIC COMMENT'' 
button beneath this rulemaking's title to submit a comment to the 
<a href="http://regulations.gov">regulations.gov</a> docket. A plain language summary of the proposed rule 
is also available on the docket website.
    <bullet> Mail: Address to Melane Conyers-Ausbrooks, Secretary of 
the Board, National Credit Union Administration, 1775 Duke Street, 
Alexandria, Virginia 22314-3428.
    <bullet> Hand Delivery/Courier: Same as mailing address.
    Mailed and hand-delivered comments must be received by the close of 
the comment period.
    Public inspection: Please follow the search instructions on <a href="https://www.regulations.gov">https://www.regulations.gov</a> to view the public comments. Do not include any 
personally identifiable information (such as name, address, or other 
contact information) or confidential business information that you do 
not want publicly disclosed. All comments are public records; they are 
publicly displayed exactly as received and will not be deleted, 
modified, or redacted. Comments may be submitted anonymously. If you 
are unable to access public comments on the internet, you may contact 
the NCUA for alternative access by calling (703) 518-6540 or emailing 
<a href="/cdn-cgi/l/email-protection#ace3ebefe1cdc5c0ecc2cfd9cd82cbc3da"><span class="__cf_email__" data-cfemail="2a656d69674b43466a44495f4b044d455c">[email&#160;protected]</span></a>.

FOR FURTHER INFORMATION CONTACT: Ariel Pereira or Thomas Zells, Senior 
Attorneys, Office of General Counsel, at (703) 518-6540, or by mail at 
National Credit Union Administration, at 1775 Duke Street, Alexandria, 
VA 22314.

SUPPLEMENTARY INFORMATION:

A. Background

    NCUA insures funds maintained in accounts of members or those 
otherwise eligible to maintain insured accounts (member accounts) at 
FICUs, protects the members who own FICUs, and charters and regulates 
federal credit unions (FCUs).\1\ NCUA administers the National Credit 
Union Share Insurance Fund (Share Insurance Fund). Backed by the full 
faith and credit of the United States, the Share Insurance Fund 
provides Federal share insurance to millions of account holders in 
FICUs.
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    \1\ The Board's share insurance regulation at Sec.  745.1 
defines the term ``member'' to include both those persons enumerated 
in the credit union's field of membership who have become members 
and those nonmembers permitted under the FCU Act to maintain 
accounts in a FICU. For simplicity, this preamble's use of the word 
``member'' also includes authorized nonmembers.
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    Under the FCU Act, NCUA is responsible for paying share insurance 
to any member, or to any person with funds lawfully held in a member 
account, in the event of a FICU's failure, up to the standard maximum 
share insurance amount, which is currently set at $250,000.\2\ The FCU 
Act states the determination of the net amount of share insurance paid 
``shall be in accordance with such regulations as the Board may 
prescribe.'' \3\ The Board's share insurance regulations are codified 
in 12 CFR part 745. Section 745.13 currently requires each FICU to 
``provide notice to its members concerning NCUA insurance coverage of 
member accounts'' and lists several ways a FICU may comply with this 
requirement. This section also requires FICUs to make copies of the 
relevant materials available to their members on request.
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    \2\ 12 U.S.C. 1787(k)(1)(A).
    \3\ 12 U.S.C. 1787(k)(1)(C).
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B. Legal Authority

    The Board is issuing this proposed rule pursuant to its authority 
under the FCU Act. As noted, the FCU Act grants NCUA specific authority 
to draft share insurance regulations.\4\ Further, 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 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 credit union industry and the Share 
Insurance Fund remain safe and sound.
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    \4\ Id.
    \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.
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II. Proposed Rule

    The Board's share insurance regulation at Sec.  745.13 requires 
that each FICU ``provide notice to its members concerning NCUA 
insurance coverage of member accounts.'' Moreover, the regulation 
specifies the methods a FICU may use to comply with the notification 
requirement. Specifically, Sec.  745.13 provides that a FICU may comply 
with the notification requirement by placing ``either a copy of part 
745 of these rules, the appendix [to part 745], or one or more copies 
of the NCUA brochure `Your Insured Funds' in each branch office and 
main office of the credit

[[Page 66538]]

union.'' \9\ Copies of these materials must also be made available to 
members upon request. Thus, while the regulation lists options and does 
not make them exclusive, it ultimately does require FICUs to provide 
physical copies of materials, which necessarily leads to costs for 
those FICUs.
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    \9\ Through final rule published on September 24, 2024, at 89 FR 
79397, the appendix to part 745 will be removed. The final rule will 
take effect on December 1, 2026. The quoted text reflects the 
regulatory language currently in effect, which includes a reference 
to the soon-to-be removed appendix.
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    Upon reconsideration, the Board has determined that the regulation 
imposes an unnecessary cost on both NCUA and FICUs. For NCUA, Sec.  
745.13 requires that the agency assume the administrative and staff 
costs associated with periodically reviewing and updating the ``Your 
Insurance Funds'' brochure, which is currently 64 pages long, and 
arranging and paying for the production and distribution of some 
brochures. FICUs must incur the costs of purchasing or printing and 
making the hard copy materials readily available to members. The 
regulation is also unnecessarily prescriptive in requiring such hard 
copies, given the ready availability of the part 745 regulations online 
at the Electronic Code of Federal Regulations (eCFR) website.\10\ 
Further, the eCFR is updated on a daily basis, thereby ensuring it 
always contains the most up-to-date version of the regulations.\11\ To 
the contrary, a FICU must dispose of existing hard copies and print a 
new version of 12 CFR part 745 each time the regulation is amended. In 
addition, the NCUA's website contains up-to-date information about 
share insurance coverage.
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    \10\ <a href="https://www.ecfr.gov/current/title-12/chapter-VII/subchapter-A/part-745">https://www.ecfr.gov/current/title-12/chapter-VII/subchapter-A/part-745</a>.
    \11\ <a href="https://www.ecfr.gov/issues/current">https://www.ecfr.gov/issues/current</a>.
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    For the above reasons, the Board has decided to issue this proposed 
rule, which would amend Sec.  745.13 to simply provide that each FICU 
``shall provide notice to its members concerning NCUA insurance 
coverage of member accounts.'' \12\
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    \12\ The Board notes that the notice requirement in Sec.  745.13 
supplements the requirement related to federal insurance coverage in 
Sec.  740.4 for insured credit unions to ``continuously display the 
official sign . . . at each station or window where insured account 
funds or deposits are normally received in its principal place of 
business and in all its branches'' and to ``display the official 
sign on its internet page, if any, where it accepts deposits or open 
accounts.''
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    As part of this rulemaking, NCUA intends to discontinue the ``Your 
Insurance Funds'' brochure and will undertake an update of its share 
insurance coverage website to ensure its comprehensiveness, clarity, 
and ease of navigation.\13\ The updated website will provide FICUs and 
their members with a dynamic and up-to-date resource for information 
regarding share insurance requirements. At the same time, this resource 
will be freely available to FICUs and their members.
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    \13\ <a href="https://ncua.gov/consumers/share-insurance-coverage">https://ncua.gov/consumers/share-insurance-coverage</a>.
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    As is true under the existing regulation, revised Sec.  745.13 
would not prescribe the timing for providing the required notice. 
However, NCUA's expectation is that notice will be provided at a 
logical point in time that is beneficial to members, which would 
include upon request by a member. For example, a FICU could, if it 
chose, provide the notice at account opening or other logical time. In 
addition, revised Sec.  745.13 would defer to the FICU on the method 
used for providing the required notification. NCUA's expectation is 
that a FICU will elect a reasonable method that provides members with 
authoritative information about share insurance coverage. For example, 
a FICU could, if it chose, continue to make hard copies available or 
elect to provide members with a link to NCUA's website or the eCFR. In 
updating its share insurance coverage website, NCUA will consider ease 
of printing to facilitate the provision of hard copies for those FICUs 
that elect to do so.
    The Board believes the proposed rule would provide greater 
flexibility, reduce compliance costs for both NCUA and FICUs, ensure 
that members and others are provided with up-to-date information 
regarding share insurance coverage, and allow FICUs to provide the 
information through digital means. The Board welcomes public comment on 
all aspects of the proposal.

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)) (Act) 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>). The 
Act, under its terms, applies to notices of proposed rulemaking and 
does not expressly include other types of documents that the Board 
publishes voluntarily for public comment, such as notices and interim-
final rules that request comment despite invoking ``good cause'' to 
forgo such notice and public procedure. The Board, however, has elected 
to address the Act's requirement in these types of documents in the 
interests of administrative consistency and transparency.
    In summary, the Board solicits public comment on a proposal to 
streamline the methods a FICU may use to provide its members with 
notice of share insurance coverage. The current regulation is overly 
prescriptive, mandating that a FICU make available hard copies of 
certain prescribed materials. While a FICU would still be required to 
provide notice to members, the proposed rule would defer to the FICU on 
the method used for such notification.
    The proposal and the required summary can be found at <a href="https://www.regulations.gov">https://www.regulations.gov</a>.

B. Executive Orders 12866, 13563, and 14192

    Pursuant to Executive Order 12866 (``Regulatory Planning and 
Review''), a determination must be made whether a regulatory action is 
significant and therefore subject to review by the Office of 
Information and Regulatory Affairs (OIRA), within the Office of 
Management and Budget (OMB) in accordance with the requirements of the 
Executive Order.\14\ 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.\15\ This proposed rule was 
drafted and reviewed in accordance with Executive Order 12866 and 
Executive Order 13563. OIRA has determined that this proposed rule is 
not a ``significant regulatory action'' as defined by section 3(f) of 
Executive Order 12866.
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    \14\ 58 FR 51735 (Oct. 4, 1993).
    \15\ 76 FR 3821 (Jan. 21, 2011).
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    Executive Order 14192 (``Unleashing Prosperity Through 
Deregulation'') requires that any new incremental costs associated with 
new regulations shall, to the extent permitted by law, be offset by the 
elimination of existing costs associated with at least 10 prior 
regulations.\16\ This proposed rule is not an Executive Order 14192 
regulatory action because this rule is not significant under Executive 
Order 12866. This proposed rule is expected to be an Executive Order 
14192 deregulatory action.
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    \16\ 90 FR 9065 (Feb. 6, 2025).

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[[Page 66539]]

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act \17\ 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.\18\ For purposes of this 
analysis, NCUA considers small credit unions to be those having under 
$100 million in assets.\19\ The Board fully considered the potential 
economic impacts of the regulatory amendments on small credit unions.
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    \17\ 5 U.S.C.601 et seq.
    \18\ 5 U.S.C. 605(b).
    \19\ 80 FR 57512 (Sept. 24, 2015).
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    The proposed rule would streamline the method a FICU may use to 
provide its members with notice of share insurance coverage. Under the 
proposal, a FICU would no longer be required to make available hard 
copies of certain prescribed materials. FICUs would instead have the 
flexibility to satisfy the notice requirements by providing members 
with a link to online resources. Accordingly, to the extent that the 
proposed rule has any economic impacts on small FICUs, it would be to 
reduce the costs borne by such credit unions. Neither the current 
economic burden imposed by the current regulation nor the concomitant 
reduction resulting from the proposed rule is likely significant, being 
limited to the staff-time and costs of printing the materials. 
Accordingly, NCUA certifies the final rule will not have a significant 
economic impact on a substantial number of small credit unions.

D. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) generally provides that 
an agency may not conduct or sponsor, and notwithstanding 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 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 proposed 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.

E. Executive Order 13132 on Federalism

    Executive Order 13132 encourages independent regulatory agencies to 
consider the impact of their actions on state and local interests.\20\ 
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 only impact NCUA's regulations related to federal 
share insurance coverage; it would not alter NCUA's relationship or 
division of responsibilities with state regulatory agencies or bodies. 
This proposal would not have a substantial direct effect on the states, 
on the connection between the national government and the states, or on 
the distribution of power and responsibilities among the various levels 
of government. NCUA has determined that this proposal does not 
constitute a policy that has federalism implications for the purposes 
of the executive order.
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    \20\ 64 FR 43255 (Aug. 4, 1999).
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F. Assessment of Federal Regulations and Policies on Families

    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.\21\ The regulatory 
requirements that are the subject of this proposed rule are exclusively 
concerned with notice requirements. To the extent the proposal has any 
impact on families, it would be beneficial by helping families make 
better informed financial decisions that implicate NCUA share 
insurance. However, the potential positive effect on family well-being, 
including financial well-being is, at most, indirect because the 
proposed rule would not materially change the information provided to 
the public about share insurance coverage.
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    \21\ Public Law 105-277, 112 Stat. 2681 (1998).
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List of Subjects in 12 CFR Part 745

    Credit, Credit unions, Share insurance.

    By the National Credit Union Administration Board, this 19th day 
of October, 2026.
Melane Conyers-Ausbrooks,
Secretary of the Board.

    For the reasons stated in the preamble, the NCUA Board proposes to 
amend 12 CFR part 745 as follows:

PART 745--SHARE INSURANCE AND APPENDIX

0
1. The authority citation for part continues to read as follows:

    Authority: 12 U.S.C. 1752(5), 1757, 1765, 1766, 1781, 1782, 
1787, 1789; title V, Pub. L. 109-351;120 Stat. 1966.

0
2. Revise Sec.  745.13 to read as follows:


Sec.  745.13  Notification to members/shareholders.

    Each insured credit union shall provide notice to its members 
concerning NCUA insurance coverage of member accounts.

[FR Doc. 2026-21512 Filed 10-20-26; 8:45 am]
BILLING CODE 7535-01-P


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