CUNA backs NCUA’s joint ownership for share accounts proposal

July 6, 2020

CUNA filed a comment letter on Monday in support of NCUA’s proposed rule on joint ownership for share accounts. The proposal addresses the requirement for separate joint account insurance that each co-owner of a joint account has personally signed a membership card or account signature card. In the event a credit union is unable to produce from its records such membership cards or account signature cards, the proposal would explicitly permit the use of other evidence contained in a credit union’s account records to satisfy the signature card requirement.

“We believe it is important to maintain parity with the regulations applicable to banks on joint account ownership,” the letter reads. “Further, we support the increased flexibility the proposed rule will provide, establishing an alternative method to satisfy the existing signature card requirement.”

The signature card requirement could be satisfied by information contained in the account records of the insured credit union establishing co-ownership of the share account, such as evidence that the credit union has issued a mechanism for accessing the account to each co-owner or evidence of usage of the share account by each co-owner.