Notice - Temporary NCUA Insurance Expires 12/31/2012
Notice of Expiration of Temporary Unlimited Share Insurance Coverage for Share Draft/Checking Accounts
This temporary insurance was in addition to, and separate from, the coverage of $250,000 available to members under the NCUA's (â€ťNational Credit Union Administrationâ€ť) general share insurance rules.Â The general share insurance rules are not changing.
Pursuant to Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, temporary unlimited share insurance coverage for noninterest-bearing transaction accounts will expire on December 31, 2012.Â A noninterest-bearing transaction account is defined as an account or deposit maintained at an insured credit union with respect to which interest dividends are neither accrued nor paid; on which the account holder or depositor is permitted to make withdrawals by negotiable or transferable instrument, payment orders of withdrawal, telephone or other electronic media transfers, or other similar items for the purpose of making payments or transfers to third parties or others; and on which the insured credit union does not reserve the right to require advance notice of an intended withdrawal.
Beginning January 1, 2013, NCUA will no longer provide separate, unlimited share insurance coverage for non interest bearing transactions accounts at federally insured financial institutions.
If you have an affected share draft/checking account, please contact us to discuss the possibilities of account restructuring to maximize your insurance coverage.Â You may access the NCUA tool kit for assistance at http://www.ncua.gov/DataApps/Pages/SI-Tools.aspx
For more information please visit http://www.ncua.gov/.