Joint-Ownership Share Account Coverage Rule

The National Credit Union Administration Board has approved a final rule amending its regulation governing the requirements for a share account to be separately insured as a joint account. The final rule provides federally insured credit unions with an alternative method to satisfy the membership card or account signature card requirement. For example, under the final rule, the signature card requirement can be satisfied by the credit union having issued a mechanism for accessing the account, such as a debit card, to each co-owner or evidence of usage of the joint share account by each co-owner. The NCUA issues a press release about the rule, which will be effective 30 days after Federal Register publication.

In addition, the Board was briefed on the Share Insurance Fund’s performance during the fourth quarter of 2020. The fund's equity ratio was at 1.26%, lower than the Board-approved normal operating level of 1.38%. Chairman Harper noted that the primary factors contributing most significantly to the continuing decline in the equity ratio—strong growth in insured shares and reduced investment returns—remain and will likely continue in the future.

Harper said, “Any future decision by the Board to assess premiums must be data-driven. History has also shown the importance of building up the resiliency of the Share Insurance Fund so it can handle the potential issues related to the pandemic’s economic fallout that we know are coming