[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR741.204]



[Page 605-606]

 

                       TITLE 12--BANKS AND BANKING

 

            CHAPTER VII--NATIONAL CREDIT UNION ADMINISTRATION

 

PART 741_REQUIREMENTS FOR INSURANCE--Table of Contents

 

   Subpart B_Regulations Codified Elsewhere in NCUA's Regulations as 

 Applying to Federal Credit Unions That Also Apply to Federally Insured 

                      State-Chartered Credit Unions

 

Sec. 741.204  Maximum public unit and nonmember accounts, and 

low-income designation.



    Any credit union that is insured, or that makes application for 

insurance, pursuant to Title II of the Act must:

    (a) Adhere to the requirements of Sec. 701.32 of this chapter 

regarding public unit and nonmember accounts, provided it has the 

authority to accept such accounts. Requests by federally insured state-

chartered credit unions for an exemption from the limitation of Sec. 

701.32 of this chapter will be made and reviewed on the same basis as 

that provided in Sec. 701.32 of this chapter for federal credit unions, 

provided, however that NCUA will not grant an exemption without the 

concurrence of the appropriate state regulator.

    (b) Obtain a low-income designation in order to accept nonmember 

accounts, other than from public units or other credit unions, provided 

it has the authority to accept such accounts under state law. The state 

regulator



[[Page 606]]



shall make the low-income designation with the concurrence of the 

appropriate regional director. The designation will be made and reviewed 

by the state regulator on the same basis as that provided in Sec. 

701.34(a) of this chapter for federal credit unions. Removal of the 

designation by the state regulator for such credit unions shall be with 

the concurrence of NCUA.

    (c) Receive secondary capital accounts only if the credit has a low-

income designation pursuant to paragraph (b) of this section, and then 

only in accordance with the terms and conditions authorized for Federal 

credit unions pursuant to Sec. 701.34 of this chapter and to the extent 

not inconsistent with applicable state law and regulation. State 

chartered federally insured credit unions offering secondary capital 

accounts must submit the plan required by Sec. 701.34 to both the state 

supervisory authority and the NCUA Regional Director.



[60 FR 58504, Nov. 28, 1995, as amended at 61 FR 3792, Feb. 2, 1996]