A proposal allowing account records information other than a signature card to support the insured status of a joint ownership share account in a credit union was published in the Federal Register Friday with a public comment deadline of July 6.
Approved for issuance during the May 21 open meeting of the National Credit Union Administration (NCUA) Board, the proposed rule is aimed at facilitating prompt payment of share insurance in the event of a federally insured credit union’s failure “by explicitly providing alternative methods that the NCUA could use to determine the owners of joint accounts, consistent with the NCUA’s statutory authority,” the summary states.
Under the proposed rule, the signature card requirement necessary to show joint ownership of a federally insured account in a credit union could be satisfied by information contained in the account records. “For example, the signature card requirement could 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 agency wrote.
The rule change would mirror one adopted last year by the Federal Deposit Insurance Corp. (FDIC) for federally insured banks and savings institutions.
Reg lookup: Joint Ownership Share Accounts