[Code of Federal Regulations]
[Title 12, Volume 6]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR745.200]

[Page 658-659]
 
                       TITLE 12--BANKS AND BANKING
 
            CHAPTER VII--NATIONAL CREDIT UNION ADMINISTRATION
 
PART 745_SHARE INSURANCE AND APPENDIX--Table of Contents
 
            Subpart B_Payment of Share Insurance and Appeals
 
Sec. 745.200  General.

    Source: 55 FR 5586, Feb. 16, 1990, unless otherwise noted.


    (a) Payment. In the event of the liquidation of an insured credit 
union, the Board will promptly determine the insured accountholders 
thereof and the amount of the insured account or accounts of each such 
accountholder. Payment may be in cash, or its equivalent, or may be made 
by making available to each accountholder a transferred account in a new 
federally-insured credit union in the same community or in another 
federally-insured credit union or institution in an amount equal to the 
accountholder's insured account. Notwithstanding the foregoing, the 
Board may withhold payment of such portion of the insured account of any 
member as may be required to provide for payment of any direct or 
indirect liability to the closed credit union or the liquidating agent, 
which is not offset against a claim due from such credit union, pending 
the determination and payment of such liability by the member of or any 
person liable therefor.
    (b) Amount of insurance. The amount of insurance on an insured 
account shall be determined in accordance with the provisions of Subpart 
A of this part and the Federal Credit Union Act. For the purpose of 
determining insurance coverage, dividends earned in the ordinary course 
of business and posted to share accounts for any prior accounting or 
dividend period shall be deemed to be principal under this part. 
Dividends earned or accrued in the ordinary course of business, but not 
posted to share accounts, may be paid at the discretion of the 
liquidating agent. In making such determination, the liquidating agent 
will take into consideration whether the failure to post dividends 
earned or accrued was due to the fraud, embezzlement or accounting 
errors of credit union personnel. The liquidating agent may require an 
accountholder to submit documentation supporting any claim for unposted 
dividends not otherwise evidenced in the credit union records. However, 
in no event will dividend amounts be considered as principal for 
insurance purposes pursuant to this section if not consistent with the 
amounts paid on similar classes of shares.
    (c) Multiple accounts. In the event an insured member holds more 
than one insured account in the same capacity, and the aggregate amount 
of such accounts (including share draft accounts held in such capacity) 
exceeds the amount of insurance afforded thereon, the insurance coverage 
will be prorated among the member's interest in all accounts held in the 
same capacity. In the case of individual accounts, the insurance 
proceeds shall be paid to the holder of the account, whether or not the 
holder is the beneficial owner. In the case of accounts which are owned 
jointly, the insurance proceeds shall be paid to the owners jointly. In 
the case of trust estates, the insurance proceeds shall be paid to the 
indicated trustee unless otherwise provided for in the

[[Page 659]]

trust instrument or under state law. In the case of corporations, 
partnerships and unincorporated associations engaged in an independent 
activity, the insurance proceeds shall be paid to the indicated holder 
of the account. Where insurance payment is in the form of a transferred 
account to another insured institution, the same rules shall be applied.
    (d) Computing time. In computing any period of time prescribed by 
this subpart, the provisions of Sec. 747.12(a) shall apply.

[55 FR 5586, Feb. 16, 1990, as amended at 61 FR 60186, Nov. 27, 1996]