12 Cfr 740.3

Pt. 740

12 CFR Ch. VII (1–1–19 Edition)

(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
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.

§ 740.0 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.
§ 740.1 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,
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.
§ 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
or implication that the carrier is affiliated with the NCUA or the federal government.
§ 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

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