NCUA Approves Joint-Ownership Share Accounts Final Rule

During its February 18, 2021, open meeting, the NCUA approved a final rule governing the requirements for a share account to be separately insured as a joint account.

Under the final rule, proof of joint-ownership, for determining share insurance coverage, 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, as well as a signature on a membership or account card.

The change is effective 30 days from publication in the Federal Register.

Existing Rule
12 CFR 745.8 Joint ownership accounts
(c) Qualifying joint accounts. A joint account is a qualifying joint account if each of the co-owners has personally signed a membership or account signature card and has a right of withdrawal on the same basis as the other co-owners. The signature requirement does not apply to share certificates, or to any accounts maintained by an agent, nominee, guardian, custodian or conservator on behalf of two or more persons if the records of the credit union properly reflect that the account is so maintained.
Amended Rule (Effective 30 days from publication in the Federal Register)
12 CFR 745.8 Joint ownership accounts
(c) Qualifying joint accounts.
(1) A joint account is a qualifying joint account if each of the co-owners has personally signed a membership or account signature card and has a right of withdrawal on the same basis as the other co-owners. The signature requirement does not apply to share certificates, or to any accounts maintained by an agent, nominee, guardian, custodian or conservator on behalf of two or more persons if the records of the credit union properly reflect that the account is so maintained.
(2) The signature card requirement of paragraph (c)(1) of this section also may be satisfied by information contained in the account records of the federally insured credit union establishing co-ownership of the share account, including, but not limited to, evidence that the institution has issued a mechanism for accessing the account to each co-owner or evidence of usage of the share account by each co-owner.
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