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| # **NCUA LETTER TO CREDIT UNIONS**                                    |
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**NATIONAL CREDIT UNION ADMINISTRATION**

**1775 Duke Street, Alexandria, VA 22314**

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  **DATE: November 2006**              **LETTER NO.: 06-CU-18**

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**TO: Federally Insured Credit Unions**

**SUBJ: Revisions to the Official NCUA Sign**

Dear Board of Directors:

The purpose of this Letter is to inform you of recent changes to NCUA's
Rules and Regulations, Part 740, Accuracy of Advertising and Notice of
Insured Status. The NCUA Board approved the final rule revising NCUA's
official sign on November 16, 2006. The approved final rule establishes
two separate compliance dates for credit unions to incorporate the
revised official sign, provides for a statutory penalty of up to \$100
per day for violation of regulatory provisions related to the official
sign, and clarifies color scheme requirements for the official sign.

**[Two Separate Compliance Dates]{.underline}**

Credit unions must replace the old version of the official sign with the
revised official sign at required locations, such as each station or
window where the credit union normally receives insured funds or
deposits in its principal place of business and all of its branches and
on its internet page where it accepts deposits or opens accounts
**within six (6) months of the rule's effective date**.

Credit unions must replace the old version of the official sign with the
revised official sign on each document where it has chosen to include
the official sign, including advertisements, marketing and promotional
materials, disclosures, and others **within one (1) year of the rule's
effective date.**

**[Initial Supply of Signs]{.underline}**

All federally insured credit unions will be provided with an initial
supply of the revised official sign with a blue background and white
lettering at no cost. Additionally, a downloadable graphic of the
official sign is available on the agency's website for credit unions to
use on their websites.

You should have received or will soon be receiving an initial supply of
signs from NCUA. If the initial supply is not adequate, 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 the final rule
unless the credit union fails to display the signs after receiving them
within the allotted timeframe.

**[Technical Clarifications]{.underline}**

NCUA amended §740.4(b)(2) to ensure its policy that a credit union may
use the color scheme of its choice regarding the official sign is
clearly reflected. Credit unions may purchase or develop signs in colors
other than those provided to it by NCUA at each station or window where
the credit union normally receives insured funds or deposits in its
principal place of business and all of its branches and on its internet
page where it accepts deposits or opens accounts so long as they are
legible and otherwise comply with Part 740.

Additionally, NCUA reiterates that a credit union also may alter the
official sign's font sizes to ensure it is legible and visually
prominent on a web page. Credit unions may do the same on other
documents where they have chosen to include the official sign in
connection with the official advertising statement or for other purposes
not required by Part 740. A credit union may not alter the font size of
the official sign as provided by NCUA for placement at each station or
window where the credit union normally receives insured funds or
deposits in its principal place of business and all of its branches.

A full text of the revised rule is located on NCUA's website at:
[www.ncua.gov](http://www.ncua.gov/) Should you have questions about the
revisions to NCUA's advertising rule, please do not hesitate to contact
your regional office or state supervisory authority.

> Sincerely,
>
> /s/
>
> JoAnn M Johnson

# Chairman