Examples of Federal share insurance in a sentence
By law, state chartered institutions with Federal share insurance are already subject to numerous provisions of NCUA’s rules, based on the agency’s role as the insurer of member share accounts and the significant interest NCUA has in the safety and soundness of their operations.
FHFA’s rule defines the term to mean a credit union without Federal share insurance, while NCUA regulations define the term to mean a credit union covered by a non-federal form of share insurance.
Afterreceiving the notice required under paragraph (a)(1) of this section, a non- federally-insured credit union applicant shall send to its appropriate State regulator a written request for a determination that the applicant met all of the eligibility requirements for Federal share insurance as of the date of the request.
Federal share insurance eliminated the options to delay and to discount that assured solvency before insurance.
A written statement from the applicant’s appropriate State regulator that the applicant met all of the paragraph (a)(3)(i) or (ii) of this section or a response stating that the applicant did not meet all of the eligibility requirements for Federal share insurance as of the date of the request sent pursuant to paragraph (a)(2) of this section.
The guidance letters reasoned that NCUA’s prior approval of the credit union for Federal share insurance is dispositive as to the key issue under the statutory amendments— i.e., whether the institution satisfies the eligibility requirements for Federal share insurance—thus obviating any need for the member’s state regulator to make that same decision.
The guidance made clear that such a credit union may voluntarily surrender its Federal share insurance without jeopardizing its status as a Bank member and without having to request from its state regulator the type of determination that the statute requires to be made with respect to NFICU applicants.
The proposed rule would also not alter the NCUA’s relationship or division of responsibilities with state regulatory agencies or bodies because the proposed rule would affect the NCUA’s Federal share insurance determinations exclusively.
State-chartered credit unions, in many States, are required to have Federal share insurance and it is optional for other State- chartered credit unions.
A Bank member that is a federally insured credit union and that subsequently cancels its Federal share insurance may remain a member of the Bank, subject to all regulatory provisions applicable to insured depository institution members, provided that the Bank has determined that the institution has canceled its Federal share insurance voluntarily.Subpart E—Withdrawal, Termination, and Readmission■ 7.