12 Cfr 740.3

§ 725.22

12 CFR Ch. VII (1–1–16 Edition)

§ 725.22 Advances to insurance organizations.

§ 740.0

(a) In accordance with policies established by the NCUA Board, the Facility
may advance funds to a State credit
union share or deposit insurance corporation, guaranty credit union, guaranty association, or similar organization. Requests for such advances shall
be supported by an application which
sets forth and supports the need for the
advance.
(b) Advances under paragraph (a)
shall be subject to the approval of the
NCUA Board and shall be made subject
to the following terms:
(1) The advance shall be fully secured,
(2) The maturity of the advance shall
not exceed 12 months,
(3) The advance shall not be renewable at maturity, and
(4) The funds advanced shall not be
relent at an interest rate exceeding
that imposed by the Facility.

§ 740.1

§ 725.23

Other advances.

(a) The NCUA Board may authorize
extensions of credit to members of the
Facility for purposes other than liquidity needs if the NCUA Board, the Board
of Governors of the Federal Reserve
System, and the Secretary of the
Treasury concur in a determination
that such extensions of credit are in
the national economic interest.
(b) Extensions of credit approved
under the conditions of paragraph (a)
of this section shall be subject to such
terms and conditions as shall be established by the NCUA Board.

PART 740—ACCURACY OF ADVERTISING AND NOTICE OF INSURED
STATUS

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Sec.
740.0 Scope.
740.1 Definitions.
740.2 Accuracy of advertising.
740.3 Advertising of excess insurance.
740.4 Requirements for the official sign.
740.5 Requirements for the official advertising statement.
AUTHORITY: 12 U.S.C. 1766, 1781, 1785, and
1789.
SOURCE: 68 FR 23382, May 2, 2003, unless
otherwise noted.

Scope.

This part applies to all federally insured credit unions. It prescribes the
requirements for the official sign insured credit unions must display and
the requirements with regard to the official advertising statement insured
credit unions must include in their advertisements. It requires that all other
kinds of advertisements be accurate. It
also establishes requirements for advertisements of excess insurance.
Definitions.

(a) Account or accounts as used in this
part means share, share certificate or
share draft accounts (or their equivalent under state law, as determined by
the Board in the case of insured state
credit unions) of a member (which includes other credit unions, public
units, and nonmembers where permitted under the Act) in a credit union
of a type approved by the Board which
evidences money or its equivalent received or held by a credit union in the
usual course of business and for which
it has given or is obligated to give
credit to the account of the member.
(b) Advertisement as used in this part
means a commercial message, in any
medium, that is designed to attract
public attention or patronage to a
product or business.
(c) Insured credit union and federally
insured credit union as used in this part
mean a credit union with National
Credit Union Administration share insurance.
(d) Nonfederally insured credit union as
used in this part means a credit union
with either no account insurance or
with primary account insurance provided by some entity other than the
National Credit Union Administration.
[68 FR 23382, May 2, 2003, as amended at 74
FR 9348, Mar. 4, 2009; 76 FR 30523, May 26,
2011]

§ 740.2

Accuracy of advertising.

No insured credit union may use any
advertising (which includes print, electronic, or broadcast media, displays
and signs, stationery, and other promotional material) or make any representation which is inaccurate or deceptive in any particular, or which in
any way misrepresents its services,

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National Credit Union Administration

§ 740.4
or implication that the carrier is affiliated with the NCUA or the federal government.

§ 740.3 Advertising of excess insurance.
Any advertising that mentions share
or savings account insurance provided
by a party other than the NCUA must
clearly explain the type and amount of
such insurance and the identity of the
carrier and must avoid any statement

§ 740.4 Requirements for the official
sign.
(a) Each insured credit union must
continuously display the official sign
described in paragraph (b) of this section at each station or window where
insured account funds or deposits are
normally received in its principal place
of business and in all its branches, 30
days after its first day of operation as
an insured credit union. Each insured
credit union must also display the official sign on its Internet page, if any,
where it accepts deposits or open accounts, but it may vary the font sizes
from that depicted in paragraph (b) of
this section to ensure its legibility.
(b) The official sign shall be as depicted below:

(1) NCUA will automatically supply
all insured credit unions an initial supply of official signs with a blue background and white lettering at no cost
for compliance with paragraph (a) of
this section. If the initial supply is not
adequate, the insured credit unions
must immediately request additional
signs from NCUA. Any credit union
that does not have an adequate supply
but requests additional signs from
NCUA will not be considered to have
violated paragraph (a) of this section

unless the credit union fails to display
the signs after receiving them.
(2) An insured credit union may purchase signs from commercial suppliers
or develop its own in any color scheme
so long as they are legible and otherwise comply with this part. A credit
union may alter the font size of the official sign to make it legible on its
Internet page and on documents it provides to its members including advertisements, but it may not do so on
signs to be placed at each station or

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ER02SE10.000

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contracts, or financial condition, or
which violates the requirements of
§ 707.8 of this subchapter, if applicable.
This provision does not prohibit an insured credit union from using a trade
name or a name other than its official
charter name in advertising or signage,
so long as it uses its official charter
name in communications with NCUA
and for share certificates or certificates of deposit, signature cards, loan
agreements,
account
statements,
checks, drafts and other legal documents.

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§ 740.5

12 CFR Ch. VII (1–1–16 Edition)

window where the credit union normally receives insured funds or deposits in its principal place of business and
all of its branches.
(c) To avoid any member confusion
from the use of the official NCUA sign,
federally insured credit unions are prohibited from receiving account funds at
any teller station or window where any
nonfederally insured credit union also
receives account funds. As exceptions
to this prohibition:
(1) A teller in a branch of a federally
insured credit union may accept account funds for nonfederally insured
credit unions, but only if the teller displays a conspicuous sign next to the official sign that states ‘‘This credit
union participates in a shared branch
network with other credit unions and
accepts share deposits for members of
those other credit unions. While this
credit union is federally insured, not
all of these other credit unions are federally insured. If you need information
on the insurance status of your credit
union, please contact your credit union
directly.’’ This sign must be similar to
the official sign in terms of design,
color, and font.
(2) A teller in a facility operated by a
non-credit union entity may accept account funds for both federally insured
credit unions and nonfederally insured
credit unions, but only if the teller displays a conspicuous sign next to the official sign stating ‘‘This facility accepts share deposits for multiple credit
unions. Not all of these credit unions
are federally insured. If you need information on the insurance status of your
credit union, please contact your credit
union directly.’’ This sign must be
similar to the official sign in terms of
design, color, and font.
(3) A teller in a branch of a nonfederally insured credit union may accept
account funds for federally insured
credit unions. No teller in a nonfederally insured credit union may display
the official NCUA sign.
(d) The Board may require any insured credit union, upon at least 30
days’ written notice, to change the
wording of its official signs in a manner deemed necessary for the protection of shareholders or others.
(e) For purposes of this section, the
terms ‘‘branch,’’ ‘‘station,’’ ‘‘teller sta-

tion,’’ and ‘‘window’’ do not include
automated teller machines or point of
sale terminals.
(f) An insured credit union that fails
to comply with Section 205(a) of the
Federal Credit Union Act regarding the
official sign, 12 U.S.C. 1785(a), or any
requirement in this part is subject to a
daily penalty in the amount set forth
in § 747.1001 of this chapter.
[68 FR 23382, May 2, 2003, as amended at 71
FR 67438, Nov. 22, 2006; 73 FR 62858, Oct. 22,
2008; 74 FR 9348, Mar. 4, 2009; 74 FR 55749, Oct.
29, 2009; 75 FR 53843, Sept. 2, 2010; 80 FR 57288,
Sept. 23, 2015]

§ 740.5 Requirements for the official
advertising statement.
(a) Each insured credit union must
include the official advertising statement, prescribed in paragraph (b) of
this section, in all of its advertisements including, but not limited to,
annual reports and statements of condition required to be published by law,
and on its main Internet page, except
as provided in paragraph (c) of this section. For annual reports and statements of condition required to be published by law, an insured credit union
must place the official advertising
statement in a prominent position on
the cover page of such documents or on
the first page a reader sees if there is
no cover page.
(b) The official advertising statement
is in substance as follows: ‘‘This credit
union is federally insured by the National Credit Union Administration.’’
Insured credit unions, at their option,
may use the short title ‘‘Federally insured by NCUA’’ or a reproduction of
the official sign, as described in
§ 740.4(b), as the official advertising
statement. The official advertising
statement must be in a size and print
that is clearly legible and may be no
smaller than the smallest font size
used in other portions of the advertisement intended to convey information
to the consumer. If the official sign is
used as the official advertising statement, an insured credit union may
alter the font size to ensure its legibility as provided in § 740.4(b)(2).
(c) The following advertisements
need not include the official advertising statement:

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National Credit Union Administration

Pt. 741

(1) Credit union supplies such as stationery (except when used for circular
letters),
envelopes,
deposit
slips,
checks, drafts, signature cards, account passbooks, and noninsurable certificates;
(2) Signs or plates in the credit union
office or attached to the building or
buildings in which the offices are located;
(3) Listings in directories;
(4) Advertisements not setting forth
the name of the insured credit union;
(5) Display advertisements in credit
union directories, provided the name of
the credit union is listed on any page
in the directory with a symbol or other
descriptive matter indicating it is insured;
(6) Joint or group advertisements of
credit union services where the names
of insured credit unions and noninsured
credit unions are listed and form a part
of such advertisement;
(7) Advertisements by radio that are
less than fifteen (15) seconds in time;
(8) Advertisements by television,
other than display advertisements,
that are less than fifteen (15) seconds
in time;
(9) Advertisements that because of
their type or character would be impractical to include the official advertising statement, including but not
limited to, promotional items such as
calendars, matchbooks, pens, pencils,
and key chains;
(10) Advertisements that contain a
statement to the effect that the credit
union is insured by the National Credit
Union Administration, or that its accounts and shares or members are insured by the Administration to the
maximum insurance amount for each
member or shareholder;
(11) Advertisements that do not relate to member accounts, including but
not limited to advertisements relating
to loans by the credit union, safekeeping box business or services, traveler’s checks on which the credit union
is not primarily liable, and credit life
or disability insurance.
(d) The non-English equivalent of the
official advertising statement may be
used in any advertisement provided

that the Regional Director gives prior
approval to the translation.
[68 FR 23382, May 2, 2003, as amended at 71
FR 67439, Nov. 22, 2006; 73 FR 56936, Oct. 1,
2008; 76 FR 30523, May 26, 2011]

PART 741—REQUIREMENTS FOR
INSURANCE
Sec.
741.0

Scope.

Subpart A—Regulations That Apply to Both
Federal Credit Unions and Federally
Insured State-Chartered Credit Unions
and That Are Not Codified Elsewhere
in NCUA’s Regulations
741.1 Examination.
741.2 Maximum borrowing authority.
741.3 Criteria.
741.4 Insurance premium and one percent
deposit.
741.5 Notice of termination of excess insurance coverage.
741.6 Financial and statistical and other reports.
741.7 Conversion to a state-chartered credit
union.
741.8 Purchase of assets and assumption of
liabilities.
741.9 Uninsured membership shares.
741.10 Disclosure of share insurance.
741.11 Foreign branching.
741.12 Liquidity and contingency funding
plans.

Subpart B—Regulations Codified Elsewhere
in NCUA’s Regulations as Applying to
Federal Credit Unions That Also Apply
to Federally Insured State-Chartered
Credit Unions
741.201 Minimum fidelity bond requirements.
741.202 Audit and verification requirements.
741.203 Minimum loan policy requirements.
741.204 Maximum public unit and nonmember accounts, and low-income designation.
741.205 Reporting requirements for credit
unions that are newly chartered or in
troubled condition.
741.206 Corporate credit unions.
741.207 Community development revolving
loan program for credit unions.
741.208 Mergers of federally insured credit
unions: voluntary termination or conversion of insured status.
741.209 Management official interlocks.
741.210 Central liquidity facility.
741.211 Advertising.
741.212 Share insurance.
741.213 Administrative actions, adjudicative
hearings, rules of practice and procedure.

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