Section 2- Share Insurance

Question 1

When a federally insured credit union is in trouble, what is the first step NCUA will take before liquidating the credit union?

Answer 1

NCUA’s first preference is to find a merger partner for a federally insured credit union experiencing problems.

Question 2

Federally insured CUs are required to maintain a deposit with the National Credit Union Share Insurance Fund (NCUSIF). This deposit must equal what percentage of the CU’s insured shares?

Answer 2

1%

Question 3

The NCUA has three requirements for CUs insured by the NCUSIF. What are they?

Answer 3

1. Have the official advertisement statement in marketing pieces
2. Provide copies of the NCUA brochure “Your Insured Funds” at each branch office
3. Display the NCUSIF official sign at each teller station in the main office and each branch office.

Question 4

What is the NCUSIF coverage amount?

Answer 4

Up to $250,000.

Question 5

How is the share insurance coverage calculated on a revocable trust account when the beneficiaries are natural persons, charitable organizations, or non profit entities?

Answer 5

The funds are insured for the owner up to $250,000 for each beneficiary, separate from any individual accounts of the owner.

Question 6

How is the share insurance calculated when a beneficiary is not a natural person, charitable organization, or non profit entity?

Answer 6

The interests of beneficiaries would be aggregated with the individually owned funds of the grantor/owner.