Notice to members of proposal to convert insurance.

CFR · 2024-01-01 · US · Title 12

(a) When the board of directors of a federally insured credit union adopts a resolution proposing to convert from federal to non-Federal insurance, including an insurance conversion associated with a merger or conversion of charter, it must provide its members with written notice of the proposal to convert insurance and of the date set for the membership vote. The first written communication following this resolution that is made by or on behalf of the credit union and that informs the members that the credit union will seek conversion of insurance is the notice of the proposal to convert. This notice must: (1) Inform the members of the requirement for a membership vote and the date for the vote; (2) Explain that the insurance provided by the NCUA is federal insurance and is backed by the full faith and credit of the United States government, while the insurance provided by the non-Federal insurer is not guaranteed by the federal or any state government; (3) Include a conspicuous statement that if the conversion or merger is approved, and the credit union, or the continuing credit union in the case of a merger, subsequently fails, the federal government does not guarantee the member will get his or her money back; and (4) Be in the form set forth in subpart C of this part, unless the Regional Director approves a different form. (b) The credit union must deliver the notice in person to each member or mail it to each member at the address for the member as it appears on the rec

official document · source cfr-2024 · id 12:§ 708b.204