September 22, 1997
Ron Martin, President/CEO
Mission Federal Credit Union
P.O. Box 919023
San Diego, CA 92191-9023
Dear Mr. Martin:
We apologize for the delay in responding to your inquiry. Your
inquiry has required substantial consideration because we are
changing a previously stated position and, as discussed below,
will permit you to use a tradename in your signage as you have
requested.
You have asked if you could erect a sign reading "Mission
Fed, a Federal Credit Union, Serving the Educational Community."
You state that you have registered your trademark of the bell,
your name and the name "Mission Fed," and "Serving
the Educational Community." You do not want to include on
the sign your official charter name which is Mission Federal Credit
Union because you think it would be redundant. We have no objection
to your proposed signage.
NCUA regulation precludes any advertising, including signs, that
is inaccurate or deceptive or that misrepresents the services,
contracts or financial condition of a federally insured credit
union. 12 C.F.R. �0.2. Additionally, NCUA makes it the
responsibility of federal credit unions (FCUs) to ensure that
an FCU's name "does not constitute an infringement on the
name of any corporation" in its trade area. Interpretive
Ruling and Policy Statement 94-1, Chartering and Field of Membership
Policy (IRPS 94-1), 59 Fed.Reg. 29,066 (1994).
In the past, NCUA interpreted these rules as barring FCUs from
using trade names, rather than their official charter names. We
are changing our interpretation of these rules. It is now our
opinion that an FCU may use a tradename in advertising, such as
signs, as long as the advertising complies with the provisions
of Part 740 of the NCUA regulations. Briefly summarized, this
means that advertising must not be inaccurate or deceptive or
misrepresent a credit union's services.
We note that in your case you have registered your mark and name
with the U.S. Patent and Trademark Office. We believe that it
is the responsibility of any federally insured credit union that
elects to use a tradename to ensure that the use of a tradename
will not violate the rights that another party may have in that
tradename.
Please note that the official charter name must be used
in all official or legal communications or documents. For example,
you must use your official charter name
in any communication with the NCUA or other government agencies.
Further, you must use the official charter name in legal documents
such as consumer disclosures, contracts (including loans, lines
of credit, and mortgages), real estate titles, lien registrations,
stock and securities, and all other documents purporting to bind
the FCU to legal responsibilities or obligations. There is also
the specific NCUA regulation that requires that the official charter
name of a federally insured credit union be posted when a credit
union service center provides services to more than one credit
union and some of those credit unions are not federally insured.
12 C.F.R. �0.3(c). This requirement is to ensure that
members are aware of which credit union has federal share insurance.
Sincerely,
Sheila A. Albin
Associate General Counsel
GC/SAA/MSC:sg
SSIC 4690
97-0637
cc: Region VI