[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]