Enclosure 3, 12 CFR 741.6

PART 741

REQUIREMENTS FOR INSURANCE

§ 741

to the credit union. The NCUA may waive or abate charges or collection of interest, if circumstances
warrant.
(1) The administrative fee for a delinquent payment shall be an amount as fixed from time to time
by the NCUA Board based upon the administrative costs of such delinquent payments to the NCUA in
the preceding year.
(2) The costs of collection shall be calculated as the actual hours expended by NCUA personnel
multiplied by the average hourly cost of the salaries and benefits of such personnel.
(3) The interest rate charged on any delinquent payment shall be the U.S. Department of the
Treasury Tax and loan Rate in effect on the date when the loan payment is due as provided in 31
U.S.C. 3717.
(4) The Act contains specific penalties and other consequences for delinquent payments,
including, but not limited to:
(i) Section 202(d)(2)(B) of the Act (12 U.S.C. 1782(d)(2)(B)) provides that the Board may assess
and collect a penalty from an insured credit union of not more than $20,000 for each day the credit
union fails or refuses to pay any deposit or premium due to the fund; and
(ii) Section 202(d)(3) of the Act (12 U.S.C. 1782(d)(3)) provides, generally, that no insured credit
union shall pay any dividends on its insured shares or distribute any of its assets while it remains in
default in the payment of its deposit or any premium charge due to the fund. Section 202(d)(3) further
provides that any director or officer of any insured credit union who knowingly participates in the
declaration or payment of any such dividend or in any such distribution shall, upon conviction, be fined
not more than $1,000 or imprisoned more than one year, or both.
[74 FR 63279, Jan. 4, 2010, as amended at 76 FR 60367, Sept. 29, 2011]

§ 741.5 Notice of termination of excess insurance coverage.
In the event of a credit union's termination of share insurance coverage other than that provided
by the NCUSIF, the credit union must notify all members in writing of such termination at least thirty
days prior to the effective date of termination.
§ 741.6 Financial and statistical and other reports.
(a) Upon written notice from the Board, Regional Director, or Director of the Office of National
Examinations and Supervision, insured credit unions must file financial and other reports in
accordance with the instructions in the notice. Credit unions with the capacity to do so must use
NCUA's information management system to submit their data online. If a credit union is unable to use
the information system, it must file written reports in accordance with the instructions.
(1) Credit Union Profile. Insured credit unions must submit to NCUA a Credit Union Profile, NCUA
Form 4501 or its equivalent, within 10 days after an election or appointment of senior management or
volunteer officials or within 30 days of any change of the information in the profile.
(2) Financial and statistical report. Natural person credit unions must file a Call Report with NCUA
quarterly in accordance with the instructions in the NCUA Form 5300. Corporate credit unions must file
a Corporate Credit Union Call Report with NCUA monthly in accordance with the instructions in the
NCUA Form 5310. Credit unions must submit a corrected Call Report upon notification or the
discovery of a need for correction.
(b) Consistency with GAAP. The accounts of financial statements and reports required to be filed
quarterly under paragraph (a) of this section must reflect GAAP if the credit union has total assets of
$10 million or greater, but may reflect regulatory accounting principles other than GAAP if the credit
union has total assets of less than $10 million (except that a Federally-insured State-chartered credit
union may be required by its state credit union supervisor to follow GAAP regardless of asset size).

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(c) GAAP sources. GAAP means generally accepted accounting principles, as defined in § 715.2
(e) of this chapter. GAAP is distinct from GAAS, which means generally accepted auditing standards,
as defined in § 715.2(f) of this chapter. Authoritative sources of GAAP include, but are not limited to,
pronouncements of the Financial Accounting Standards Board (FASB) and its predecessor
organizations, the Accounting Standards Executive Committee (AcSEC) of the American Institute of
Certified Public Accountants (AICPA), the FASB's Emerging Issues Task Force (EITF), and the
applicable AICPA Audit and Accounting Guide.
[60 FR 58504, Nov. 28, 1995, as amended at 64 FR 41040, July 29, 1999; 67 FR 12464, Mar. 19, 2002; 71 FR
4034, Jan. 25, 2006; 74 FR 35769, July 21, 2009; 78 FR 32545, May 31, 2013]

§ 741.7 Conversion to a state-chartered credit union.
Any federal credit union that petitions to convert to a state-chartered federally insured credit union
is required to apply to the Regional Director for continued insurance of its accounts and meet the
requirements as stated in the Act and this part. If the application for continued insurance is not
approved, such insurance will terminate subject to the conditions set forth in section 206(d) of the Act.
§ 741.8 Purchase of assets and assumption of liabilities.
(a) Any credit union insured by the National Credit Union Share Insurance Fund (NCUSIF) must
receive approval from the NCUA before purchasing loans or assuming an assignment of deposits,
shares, or liabilities from:
(1) Any credit union that is not insured by the NCUSIF;
(2) Any other financial-type institution (including depository institutions, mortgage banks,
consumer finance companies, insurance companies, loan brokers, and other loan sellers or liability
traders); or
(3) Any successor in interest to any institution identified in paragraph (a)(1) or (a)(2) of this
section.
(b) Approval is not required for:
(1) Purchases of student loans or real estate secured loans to facilitate the packaging of a pool of
loans to be sold or pledged on the secondary market under § 701.23(b)(1)(iii) or (iv) of this chapter or
comparable state law for state-chartered credit unions, or purchases of member loans under § 701.23
(b)(1)(i) of this chapter or comparable state law for state-chartered credit unions;
(2) Assumption of deposits, shares or liabilities as rollovers or transfers of member retirement
accounts or in which a federally-insured credit union perfects a security interest in connection with an
extension of credit to any member; or
(3) Purchases of assets, including loans, or assumptions of deposits, shares, or liabilities by any
credit union insured by the NCUSIF from another credit union insured by the NCUSIF, except a
purchase or assumption as a part of a merger under Part 708b.
(c) A credit union seeking approval under paragraph (a) of this section must submit a letter to the
regional office with jurisdiction for the state where the credit union is headquartered. A corporate credit
union seeking approval under paragraph (a) of this section must submit a letter to the Office of
National Examinations and Supervision. The letter must request approval and state the nature of the
transaction and include copies of relevant transaction documents. The NCUA will make a decision to
approve or disapprove the request as soon as possible depending on the complexity of the proposed
transaction. Credit unions should submit a request for approval in sufficient time to close the
transaction.
[70 FR 75725, Dec. 21, 2005, as amended at 75 FR 34622, June 18, 2010; 78 FR 32545, May 31, 2013]

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