11098 Federal Register / Vol. 86, No. 35 / Wednesday, February 24, 2021 / Rules and Regulations 

1 85 FR 34545 (June 6, 2020). 

2 12 CFR 745.8. 

3 84 FR 35022 (July 22, 2019). 

4 12 U.S.C. 1787(k)(1)(A), (6). 

5 12 U.S.C. 1787(k)(1)(B). 

6 12 U.S.C. 1787(k)(1)(C). 

7 12 CFR part 745. 

8 12 CFR 745.8. 

custody by the U.S. Customs and Border 

Protection and introduced into the 

stream of commerce in the United 

States. Included are persons who hold 

title to foreign-produced mangos 

immediately upon release by the U.S. 

Customs and Border Protection, as well 

as any persons who act on behalf of 

others, as agents or brokers, to secure 

the release of mangos from the U.S. 

Customs and Border Protection when 

such mangos are entered or withdrawn 

for consumption in the United States. 

(e) Mangos means all fresh fruit of 

Mangifera indica L. of the family 

Anacardiaceae. 

* * * * * 

■ 13. Revise § 1206.108 to read as 

follows: 

§ 1206.108 OMB control number. 

The control number assigned to the 

information collection requirement in 

this subpart by the Office of 

Management and Budget pursuant to the 

Paperwork Reduction Act of 1995, 44 

U.S.C. Chapter 35, is OMB control 

number 0581–0093. 

Bruce Summers, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2021–03403 Filed 2–23–21; 8:45 am] 

BILLING CODE 3410–02–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 745 

RIN 3133–AF11 

Joint Ownership Share Accounts 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Final rule. 

SUMMARY: The NCUA Board (Board) is 

amending its share insurance regulation 

governing the requirements for a share 

account to be separately insured as a 

joint account by the National Credit 

Union Share Insurance Fund (NCUSIF). 

Specifically, the final rule provides an 

alternative method to satisfy the 

membership card or account signature 

card requirement necessary for 

insurance coverage (signature card 

requirement). Under the final rule, even 

if an insured credit union cannot 

produce membership cards or account 

signature cards signed by the joint 

accountholders, the signature card 

requirement can be satisfied by 

information contained in the account 

records of the insured credit union 

establishing co-ownership of the share 

account. For example, the signature card 

requirement can be satisfied by the 

credit union having issued a mechanism 

for accessing the account, such as a 

debit card, to each co-owner or evidence 

of usage of the joint share account by 

each co-owner. 

DATES: The final rule is effective March 

26, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Thomas I. Zells, Staff Attorney, Office of 

General Counsel, at 1775 Duke Street, 

Alexandria, VA 22314 or telephone: 

(703) 548–2478. 

SUPPLEMENTARY INFORMATION: 

I. Introduction 

II. Final Rule 

III. Legal Authority 

IV. Discussion of Public Comments Received 

on the Proposed Rule 

V. Regulatory Procedures 

I. Introduction 

A. Background 

In May 2020, the Board approved a 

notice of proposed rulemaking 1

(proposal or proposed rule) that 

amended the NCUA’s share insurance 

regulation governing the requirements 

for a share account to be insured 

separately as a joint account. 2

Specifically, the proposal addressed the 

requirement for separate joint account 

insurance that each co-owner of a joint 

account has personally signed a 

membership card or account signature 

card. In the event a federally insured 

credit union (FICU) could not produce 

from its records such membership cards 

or account signature cards, the proposal 

explicitly permitted the use of other 

evidence contained in a FICU’s account 

records to satisfy the signature card 

requirement. 

The proposed amendment mirrors a 

change made by the Federal Deposit 

Insurance Corporation (FDIC) in 2019 

for federally insured depository 

institutions.3 In proposing the change, 

the Board intended to better facilitate 

the prompt payment of share insurance 

in the event of a FICU’s failure by 

explicitly providing alternative methods 

that the NCUA could use to determine 

the owners of joint accounts, consistent 

with the NCUA’s statutory authority. 

The Board emphasizes that this change 

was not proposed, and is not being 

finalized, in reaction to any observed 

current problem with respect to 

identifying qualifying joint accounts at 

credit unions and processing insurance 

payments timely. Rather, the Board 

issued the proposed rule because it is 

important to maintain parity between 

the nation’s two Federal deposit/share 

insurance programs and to provide 

credit union members with equal access 

to insurance coverage. The Board 

proposed these regulatory changes with 

the belief that they will promote further 

confidence in the credit union system 

and embody a forward-looking approach 

that will explicitly permit the use of 

new and innovative technologies and 

processes to meet the NCUA’s policy 

objectives. 

Under the Federal Credit Union Act 

(FCU Act), the NCUA is responsible for 

paying share insurance to any member, 

or to any person with funds lawfully 

held in a member account, in the event 

of a FICU’s failure up to the standard 

maximum share insurance amount 

(SMSIA), which is currently set at 

$250,000.4 The FCU Act states that the 

determination of the net amount of 

share insurance paid ‘‘shall be in 

accordance with such regulations as the 

Board may prescribe’’ and requires that, 

‘‘in determining the amount payable to 

any member, there shall be added 

together all accounts in the credit union 

maintained by that member for that 

member’s own benefit, either in the 

member’s own name or in the names of 

others.’’ 5 However, the FCU Act also 

specifically authorizes the Board to 

‘‘define, with such classifications and 

exceptions as it may prescribe, the 

extent of the share insurance coverage 

provided for member accounts, 

including member accounts in the name 

of a minor, in trust, or in joint 

tenancy.’’ 6

The NCUA has implemented these 

requirements by issuing regulations 

recognizing particular categories of 

accounts, such as single ownership 

accounts and joint ownership accounts.7

If an account meets the requirements for 

a particular category, the account is 

insured up to the $250,000 limit 

separately from shares held by the 

member in a different account category 

at the same FICU. For example, 

provided all requirements are met, 

shares in the single ownership category 

will be separately insured from shares 

in the joint ownership category held by 

the same member at the same FICU. 

Section 745.8 of the NCUA’s 

regulations governs insurance coverage 

for joint ownership accounts.8 Joint 

ownership accounts include share 

accounts held pursuant to various forms 

of co-ownership under state law. For 

example, joint tenants could each hold 

an equal, undivided interest in a share 


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Federal Register / Vol. 86, No. 35 / Wednesday, February 24, 2021 / Rules and Regulations 11099 

9 Id. 

10 12 CFR 745.8(c). 

11 12 CFR 745.8(d). 

12 12 U.S.C. 1752(5). 

13 12 U.S.C. 1759(a). 

14 12 CFR 745.8(e). 

15 36 FR 2477 (Feb. 5, 1971). 

16See 32 FR 10408, 10409 (July 14, 1967). 

17 84 FR 35022, 35023 (July 22, 2019). 

18The FCU Act generally requires that the NCUA 

determine ‘‘the net amount of share insurance 

payable . . . in accordance with this paragraph, and 

consistently with actions taken by the Federal 

Deposit Insurance Corporation under section 

1821(a) of this title.’’ 12 U.S.C. 1787(k)(1)(A) 

(emphasis added). 

19 12 U.S.C. 1787(k)(1). 

20Public Law 106–229, codified at 15 U.S.C. 

7001(a). 

21 84 FR 35022 (July 22, 2019). 

22With limited exceptions, the FCU Act generally 

limits NCUA share insurance coverage to ‘‘member 

accounts.’’ 12 U.S.C. 1752(5). Despite this general 

limitation, the FCU Act and the NCUA’s regulations 

do allow a nonmember to become a joint owner 

with a member on a joint account with right of 

survivorship. 12 U.S.C. 1759(a). The regulations 

provide that a nonmember’s interest in such 

accounts will be insured in the same manner as the 

member joint owner’s interest. 12 CFR 745.8(e). 

account. Section 745.8 provides that 

only ‘‘qualifying joint accounts’’ are 

insured separately from individually 

owned share accounts maintained by 

the co-owners.9 ‘‘Qualifying joint 

accounts’’ generally must satisfy two 

requirements: (1) Each co-owner has 

personally signed a membership card or 

account signature card; and (2) each coowner possesses withdrawal rights on 

the same basis.10 If a joint account is not 

a qualifying joint account, each coowner’s actual ownership interest in the 

account is considered individually 

owned and added to any other accounts 

individually owned by the co-owner 

and insured up to the SMSIA in the 

aggregate.11 This may result in some 

uninsured shares if a member’s single 

ownership accounts at the same FICU, 

including shares in any non-qualifying 

joint accounts, exceed $250,000. 

Additionally, it is worth reiterating that, 

with limited exceptions, the FCU Act 

generally limits NCUA share insurance 

coverage to ‘‘member accounts.’’ 12

Despite this general limitation, the FCU 

Act 13 and the NCUA’s regulations 14 do 

allow a nonmember to become a joint 

owner with a member on a joint account 

with right of survivorship. The 

regulations provide that a nonmember’s 

interest in such accounts will be insured 

in the same manner as the member 

joint-owner’s interest. 

The signature requirement has been 

included in the regulation governing 

insurance coverage since its inception 

in 1971.15 The FDIC has had a 

substantially similar signature 

requirement since 1967.16 In originally 

adopting this requirement, the FDIC 

‘‘intended to address practices such as 

the addition of nominal co-owners to an 

account solely to increase deposit 

insurance coverage.’’ 17 The NCUA 

thereafter adopted a substantially 

similar requirement 18 and views it as a 

reliable indicator of account ownership 

and important to ensuring consistency 

with the FCU Act, which expressly 

limits the net amount of share insurance 

payable to any member, or person with 

funds lawfully held in a member 

account, based on the member account 

classifications prescribed by the 

Board.19

Neither the FCU Act nor the NCUA’s 

regulations define the terms 

‘‘membership card’’ or ‘‘account 

signature card.’’ In implementing 

§ 745.8, the NCUA has not required any 

particular format for a membership card 

or account signature card. Therefore, the 

agency has previously permitted FICUs 

to satisfy the requirement through 

various forms of documentation used in 

their account opening processes. The 

Board also wishes to reiterate that, 

consistent with the Electronic 

Signatures in Global and National 

Commerce Act (E-Sign Act),20 the 

signature requirement may be satisfied 

electronically. This has been the 

NCUA’s long-standing position. 

B. Summary of Proposed Rule 

The May 2020 proposed rule 

amended § 745.8 to explicitly provide 

for an alternative method to satisfy the 

signature card requirement. The 

proposed rule specifically allowed the 

signature card requirement to be 

satisfied by information contained in 

the account records of the FICU 

establishing the co-ownership of the 

share account, such as evidence that the 

FICU has issued a mechanism for 

accessing the account to each co-owner 

or evidence of usage of the share 

account by each co-owner. For example, 

under the proposal, the requirement 

could be satisfied by evidence that a 

FICU has issued a debit card to each coowner of the account or evidence that 

each co-owner of the account has 

conducted transactions using the share 

account. These examples, however, 

were not intended to define the only 

forms of evidence of co-ownership that 

could satisfy the signature requirement. 

To the contrary, the evidence found in 

a FICU’s account records could take 

many other forms. 

The proposed amendment mirrors a 

change made by the FDIC in 2019 for 

federally insured depository 

institutions.21 As noted in the proposal, 

the Board believes that the change 

would better facilitate the prompt 

payment of share insurance in the event 

of a FICU’s failure by explicitly 

providing alternative methods that the 

NCUA could use to determine the 

owners of joint accounts, consistent 

with the NCUA’s statutory authority. In 

the proposal, the Board emphasized that 

this proposed change was not in 

reaction to any observed current 

problem with respect to identifying 

qualifying joint accounts at FICUs and 

processing insurance payments timely. 

Rather, the Board issued the proposed 

rule because it is important to maintain 

parity between the nation’s two Federal 

deposit/share insurance programs and 

to provide credit union members with 

equal access to insurance coverage. The 

Board proposed these regulatory 

changes with the belief that they will 

promote further confidence in the credit 

union system and embody a forwardlooking approach that will explicitly 

permit the use of new and innovative 

technologies and processes to meet the 

NCUA’s policy objectives. 

The proposed rule emphasized that 

the change would not introduce any 

new requirements for an account to be 

insured as a joint account, and would 

not reduce or affect insurance coverage 

for any account for which the existing 

joint account requirements are satisfied. 

The proposed rule simply would 

provide an alternative method to satisfy 

the existing signature card requirement 

for share insurance coverage as a 

qualifying joint account. Under the 

proposal, if each co-owner of a joint 

account signs, or has previously signed, 

a membership card or account signature 

card in accordance with the existing 

requirement and the FICU can produce 

it, then the proposed alternative method 

would be unnecessary. Assuming that 

the remaining qualifying joint account 

requirement is satisfied—that is, both 

co-owners possess equal withdrawal 

rights—and all other membership 

requirements are met,22 the account 

would be insured as a joint account. The 

proposal noted that the change would 

apply to all FICUs and would not 

impose any increased burden or new 

recordkeeping requirements for joint 

accounts. 

In the proposal, the Board also 

detailed the non-quantifiable benefits to 

owners of joint accounts. By explicitly 

providing alternative methods that the 

NCUA could use to determine the 

owners of joint accounts, the proposed 

rule would further support a prompt 

share insurance determination in the 

event of a FICU’s failure, alleviating 

delays in the recognition of account 

ownership and uncertainty regarding 

the extent of share insurance coverage. 


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11100 Federal Register / Vol. 86, No. 35 / Wednesday, February 24, 2021 / Rules and Regulations 

23See, e.g., 12 CFR part 701, appendix A, and 

corresponding state law requirements for federally 

insured, state-chartered credit unions. 

24 12 CFR 745.2. 

25With limited exceptions, the FCU Act generally 

limits NCUA share insurance coverage to ‘‘member 

accounts.’’ 12 U.S.C. 1752(5). Despite this general 

limitation, the FCU Act and the NCUA’s regulations 

do allow a nonmember to become a joint owner 

with a member on a joint account with right of 

survivorship. 12 U.S.C. 1759(a). The regulations 

provide that a nonmember’s interest in such 

accounts will be insured in the same manner as the 

member joint owner’s interest. 12 CFR 745.8(e). 

26 12 U.S.C. 1752–1775. 

27 12 U.S.C. 1766(a). 

28 12 U.S.C. 1787(b)(1). 

29 12 U.S.C. 1789(a)(11). 

The Board concluded that these benefits 

would promote confidence in the credit 

union system and NCUA-insured 

shares. 

II. Final Rule 

This final rule follows publication of 

the May 2020 proposed rule. After 

carefully considering the comments and 

conducting further analysis, the Board 

affirms its rationale for issuing the 

proposal and is adopting the final rule 

as proposed, with one clarifying change. 

Specifically, the Board is using 

alternative language to better convey 

that the examples of evidence of coownership in the proposed regulatory 

text do not define the only form of 

evidence that could satisfy the signature 

requirement. Pursuant to a suggestion 

from a commenter, the final rule revises 

proposed § 745.8(c)(2) by replacing 

‘‘such as’’ with the phrase ‘‘including, 

but not limited to,’’ before the word 

‘‘evidence.’’ Section 745.8(c)(2) will 

now state that the signature card 

requirement may be satisfied by 

information contained in the account 

records of the federally insured credit 

union establishing co-ownership of the 

share account, ‘‘including, but not 

limited to,’’ evidence that the institution 

has issued a mechanism for accessing 

the account to each co-owner or 

evidence of usage of the share account 

by each co-owner. The Board finds that 

the phrase suggested by the commenter 

carries the same meaning as wording in 

the proposed rule and may eliminate 

any ambiguity that evidence in the 

account records other than the examples 

provided may be sufficient to establish 

joint ownership of a share account. 

The Board also wishes to emphasize 

several key points made in the proposed 

rule and further discussed in response 

to comments received on the proposed 

rule. 

First, the Board strongly emphasizes 

that this final rule only affects a 

requirement in the NCUA’s regulations 

that must be satisfied for a share 

account to be separately insured as a 

joint account; it does not affect any 

other legal requirements applicable to 

FICUs. FICUs may, and likely will, for 

legal or other reasons, find it 

appropriate or necessary to continue 

collecting customers’ signatures.23 The 

changes made by this final rule do not 

modify or affect any state law 

requirements generally applicable to 

FICUs, including those that necessitate 

the collection and maintenance of 

customers’ signatures. 

Second, this final rule also does not 

affect the general principles contained 

in § 745.2 of the NCUA’s share 

insurance regulations applicable in 

determining insurance of accounts.24

These general principles applicable in 

determining insurance of accounts 

continue to apply to all share accounts, 

including joint ownership accounts. 

Finally, the Board believes it is 

important to reiterate that the final rule 

does not introduce any new 

requirements for an account to be 

insured as a joint account, and would 

not reduce or affect insurance coverage 

for any account for which the existing 

joint account requirements are satisfied. 

The final rule simply provides an 

alternative method to satisfy the existing 

signature card requirement for share 

insurance purposes. If each co-owner of 

a joint account signs, or has previously 

signed, a membership card or account 

signature card in accordance with the 

existing requirement and the FICU can 

produce it, then the alternative method 

would be unnecessary. Assuming that 

the remaining qualifying joint account 

requirement is satisfied—that is, both 

co-owners possess equal withdrawal 

rights—and all other membership 

requirements are met,25 the account 

would be insured as a joint account. The 

final rule applies to all FICUs and does 

not impose any increased burden or 

new recordkeeping requirements for 

joint accounts. 

III. Legal Authority 

The Board has issued this final rule 

pursuant to its authority under the FCU 

Act. Under the FCU Act, the NCUA is 

the chartering and supervisory authority 

for FCUs and the Federal supervisory 

authority for FICUs.26 The FCU Act 

grants the NCUA a broad mandate to 

issue regulations governing both FCUs 

and FICUs. Section 120 of the FCU Act 

is a general grant of regulatory authority 

and authorizes the Board to prescribe 

rules and regulations for the 

administration of the FCU Act.27

Section 207 of the FCU Act is a specific 

grant of authority over share insurance 

coverage, conservatorships, and 

liquidations.28 Section 209 of the FCU 

Act is a plenary grant of regulatory 

authority to the NCUA to issue rules 

and regulations necessary or appropriate 

to carry out its role as share insurer for 

all FICUs.29 Accordingly, the FCU Act 

grants the Board broad rulemaking 

authority to ensure that the credit union 

industry and the NCUSIF remain safe 

and sound. 

IV. Discussion of Public Comments 

Received on the Proposed Rule 

A. The Public Comments, Generally 

The NCUA received 11 comments on 

the proposed rule. All 11 commenters 

noted their support for the proposed 

rule. Rationale commenters offered for 

supporting the rule included: A belief 

that the proposed rule would provide 

increased flexibility and would 

maximize the opportunity for legitimate 

joint account holders to receive the 

proper share insurance coverage; 

recognition that the proposed rule 

would facilitate the prompt payment of 

share insurance in the event of a FICU’s 

failure; and agreement with the 

proposed rule’s assertion that ‘‘it is 

important to maintain parity between 

the nation’s two Federal deposit/share 

insurance programs and to provide 

credit union members with equal access 

to insurance coverage.’’ Several 

commenters also emphasized that the 

proposed change is especially important 

given the challenges posed by COVID– 

19 and the resulting economic 

uncertainty. 

While all 11 commenters supported 

the proposed rule, commenters did 

provide a number of suggestions for 

improving the rule. As discussed more 

thoroughly below, suggestions for 

improvement focused on two areas: (1) 

The type of evidence the NCUA could 

look to for evidence of co-ownership 

that would fulfill the signature card 

requirement; and (2) clarifications 

regarding the applicability of state law. 

The NCUA also received comments 

noting appreciation for the NCUA’s 

longstanding position that the signature 

requirement may be satisfied 

electronically, consistent with the E– 

SIGN Act. Additionally, the NCUA 

received one comment addressing coowned revocable trust accounts. Coowned revocable trust accounts are 

outside the scope of this rulemaking. 


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Federal Register / Vol. 86, No. 35 / Wednesday, February 24, 2021 / Rules and Regulations 11101 

30 85 FR 34454, 34546 (June 5, 2020). 

31 ‘‘The proposed rule only would affect a 

requirement in the NCUA’s regulations that must be 

satisfied for a share account to be separately insured 

as a joint account; it would not affect any other 

legal requirements applicable to FICUs. FICUs may, 

for legal or other reasons, find it appropriate or 

necessary to continue collecting customers’ 

signatures. The changes made by the proposed rule 

would not modify or affect any state law 

requirements generally applicable to FICUs.’’ 85 FR 

34454, 34546–47 (June 5, 2020) (emphasis added). 

32 Id. 

B. Discussion of Specific Comments on 

the Proposed Rule 

1. Examples of Evidence of Joint 

Account Ownership 

Several commenters asked the NCUA 

to consider including additional 

examples of account information that 

may be used as evidence of coownership. One of the commenters 

suggested two additional possible 

examples: (1) Use of the account via a 

mobile banking application or online 

access platform; and (2) a co-owner 

having agreed to receive electronic 

statements via their email address. 

Another of these commenters asked the 

NCUA to promptly provide additional 

examples because, while they 

appreciate the agency not limiting the 

scope, they felt it would be helpful to 

provide examples of what information 

can be used as new technologies are 

developed and utilized by credit unions. 

In asking the NCUA to consider 

adding additional examples to the text 

of the regulation or its ‘‘Official Staff 

Commentary,’’ one commenter 

suggested that the examples need to 

more concretely describe the types of 

evidence that may be used. The 

commenter expressed concern that the 

evidence described in the rule itself is 

somewhat vague and that the examples 

in the proposed rule’s preamble may be 

confusing. The commenter said that, for 

example, the fact that an account holder 

has a debit card issued for another 

person’s use (e.g., a parent supplying a 

card for their child to use) does not 

establish that the other person is 

actually a co-owner of the account. The 

commenter noted that the other party 

would simply be authorized to access 

the account, but would not own the 

funds nor qualify for joint share 

insurance coverage. Related to this 

example, the commenter acknowledged 

that § 745.8(c)(1) states that ‘‘the 

signature requirement does not apply to 

. . . any accounts maintained by an 

agent,’’ but felt that this may not be 

explicit enough to avoid confusion. 

The Board disagrees that additional or 

more concrete examples would be 

beneficial or are necessary because, 

contrary to the commenters’ intentions, 

they could be viewed as limiting 

flexibility. The examples provided in 

the proposed rule, and adopted in the 

final rule, are neither intended to be allinclusive nor dispositive. Instead, they 

are merely intended to illustrate the 

types of evidence the NCUA may 

consider when determining whether an 

account is co-owned and the signature 

card requirement in place for coverage 

as a qualifying joint account satisfied. 

The change is intended to provide the 

NCUA with the maximum flexibility 

possible to evaluate a FICU’s account 

records and properly determine if an 

account is co-owned. When it is 

necessary for the NCUA to evaluate 

alternative evidence to determine if an 

account is co-owned, the NCUA will 

holistically evaluate all of the 

information in a FICU’s account records 

that properly aid it in making this 

determination. In other words, the 

NCUA will not look at evidence, like the 

issuance of a debit card to a minor, as 

de facto evidence of co-ownership, but 

will use such evidence to help it 

accurately determine the actual account 

ownership. 

Relatedly, one commenter suggested 

revising the text of proposed 

§ 745.8(c)(2) to better reflect the 

proposed rule’s intention, as noted in 

the preamble, that the examples of 

evidence of co-ownership were not 

intended ‘‘to define the only form of 

evidence’’ 30 that would satisfy the 

signature requirement. The commenter 

suggested that, to minimize the 

opportunity for confusion in the future, 

the NCUA consider modifying proposed 

§ 745.8(c)(2) by replacing ‘‘such as’’ 

with the phrase ‘‘including, but not 

limited to,’’ before the word ‘‘evidence.’’ 

The commenter reasoned that this 

would make clear on the face of the 

regulation that other evidence in the 

account records may be sufficient to 

establish qualifying joint ownership of a 

share account. As discussed in section 

II of this preamble, the Board agrees that 

this language would help to eliminate 

ambiguity and reflects the intent of the 

proposed rule. Accordingly, the Board 

has adopted it in the final rule. Section 

745.8(c)(2) will now state that the 

signature card requirement may be 

satisfied by information contained in 

the account records of the federally 

insured credit union establishing coownership of the share account, 

‘‘including, but not limited to,’’ 

evidence that the institution has issued 

a mechanism for accessing the account 

to each co-owner or evidence of usage 

of the share account by each co-owner. 

2. Applicability of State Law 

One commenter provided a detailed 

comment asking the NCUA to add 

language to the regulation or its 

‘‘Official Staff Commentary’’ clearly 

stating that the proposed change only 

addresses the evidence that the NCUA 

may accept to treat an account as joint 

for share insurance coverage purposes, 

with no bearing on the legality or 

enforceability of an account that lacks 

joint account holders’ signatures on an 

account agreement. The Board 

addressed this issue in the preamble to 

the proposed rule 31 and again reiterates 

now that the alternative method for 

satisfying the signature card 

requirement adopted in this final rule is 

only relevant for purposes of 

determining share insurance coverage. 

The final rule has no bearing on any 

other legal requirement that FICUs are 

subject to, including all applicable state 

laws. The final rule does not eliminate 

the need for FICUs to obtain signatures 

when opening an account, it merely 

allows the NCUA to use alternative 

evidence in a FICU’s account records to 

find the signature card requirement for 

coverage as a qualifying joint account 

satisfied even if signed membership or 

account signature cards are absent from 

a liquidated FICU’s records. 

In addressing this issue, the 

commenter acknowledged that the 

preamble to the proposed rule speaks to 

this issue,32 but felt it critical that FICUs 

understand that the proposed rule: (1) 

Would only impact share insurance 

coverage; and (2) would not eliminate 

any requirement under state law or 

contracts common law related to the 

need for joint account holders to sign 

account agreements. The commenter 

correctly emphasized that the proposed 

change would not open the door for 

FICUs to establish accounts without 

proper, signed agreements in place 

among all account holders. 

The commenter noted that signatures 

are statutorily required in their state to 

create a joint account and that, even 

absent a statutory requirement, the 

common law calls for contracts to be 

signed. The commenter stated that 

without the signatures of all joint 

account holders to a contract or account 

agreement, credit unions lack a legal 

basis for enforcing the account’s terms 

against those account holders. The 

commenter emphasized that the lack of 

a legally enforceable, signed joint 

account agreement could lead to credit 

unions being caught in the middle of 

potential disputes among parties and 

their heirs when one or more account 

holders die. 

While the Board again reiterates the 

alternative method for satisfying the 

signature card requirement adopted in 


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33 44 U.S.C. 3507(d); 5 CFR part 1320. 

34 44 U.S.C. Chap. 35. 

35Public Law 105–277, 112 Stat. 2681 (1998). 

this final rule is only relevant for 

purposes of determining share 

insurance coverage, it declines to add 

additional language to the text of the 

regulation explicitly stating that credit 

unions are still subject to other 

applicable legal requirements. The 

Board appreciates the commenter’s 

concern, but does not believe it 

appropriate or necessary to include such 

language. The Board believes it is clear 

in the text of the regulation that the 

alternative method is only relevant for 

evaluating whether the signature card 

requirement is satisfied for purposes of 

determining proper share insurance 

coverage. Further, the Board thinks it 

inappropriate to explicitly state in a 

regulation that the regulation does not 

preempt other applicable law or apply 

to subjects outside the scope of the 

regulation when there is no indication 

the provision intends to preempt other 

laws or apply in other contexts. 

Inclusion of such language would only 

increase confusion and raise doubts 

about provisions that do not contain 

similar language. 

VI. Regulatory Procedures 

A. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

generally requires that, in connection 

with a final rule, an agency prepare a 

final regulatory flexibility analysis that 

describes the impact of a rule on small 

entities. A regulatory flexibility analysis 

is not required, however, if the agency 

certifies that the rule will not have a 

significant economic impact on a 

substantial number of small entities 

(defined for purposes of the RFA to 

include FICUs with assets less than 

$100 million) and publishes its 

certification and a short, explanatory 

statement in the Federal Register 

together with the rule. The final rule 

explicitly allows the NCUA to look to 

information contained in the account 

records of a FICU in order to satisfy the 

signature card requirement at the time 

of a FICU’s failure. As a result, it will 

not cause any increased burden on 

FICUs and will not have an impact on 

small credit unions. Accordingly, the 

NCUA certifies that the final rule will 

not have a significant economic impact 

on a substantial number of small credit 

unions. 

B. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(PRA) applies to rulemakings in which 

an agency creates new or amends 

existing information collection 

requirements.33 For the purpose of the 

PRA, an information collection 

requirement may take the form of a 

reporting, recordkeeping, or a thirdparty disclosure requirement. The final 

rule does not contain information 

collection requirements that require 

approval by OMB under the PRA.34 The 

final rule will merely allow the NCUA 

to look to information contained in the 

account records of a FICU in order to 

satisfy the signature card requirement at 

the time of a FICU’s failure. 

C. Executive Order 13132 

Executive Order 13132 encourages 

independent regulatory agencies to 

consider the impact of their actions on 

state and local interests. In adherence to 

fundamental federalism principles, the 

NCUA, an independent regulatory 

agency as defined in 44 U.S.C. 3502(5), 

voluntarily complies with the Executive 

order. This rulemaking will not have a 

substantial direct effect on the states, on 

the connection between the National 

Government and the states, or on the 

distribution of power and 

responsibilities among the various 

levels of government. The NCUA has 

determined that this final rule does not 

constitute a policy that has federalism 

implications for purposes of the 

Executive order. 

D. Assessment of Federal Regulations 

and Policies on Families 

The NCUA has determined that this 

final rule will not affect family wellbeing within the meaning of Section 654 

of the Treasury and General 

Government Appropriations Act, 

1999.35

E. Small Business Regulatory 

Enforcement Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act of 1996 

(SBREFA) generally provides for 

congressional review of agency rules. A 

reporting requirement is triggered in 

instances where the NCUA issues a final 

rule as defined by section 551 of the 

Administrative Procedure Act. An 

agency rule, in addition to being subject 

to congressional oversight, may also be 

subject to a delayed effective date if the 

rule is a ‘‘major rule.’’ The NCUA does 

not believe this rule is a ‘‘major rule’’ 

within the meaning of the relevant 

sections of SBREFA. As required by 

SBREFA, the NCUA will submit this 

final rule to the Office of Management 

and Budget for it to determine if the 

final rule is a ‘‘major rule’’ for purposes 

of SBREFA. The NCUA also will file 

appropriate reports with Congress and 

the Government Accountability Office 

so this rule may be reviewed. 

List of Subjects in 12 CFR Part 745 

Credit, Credit unions, Share 

insurance. 

By the National Credit Union 

Administration Board on February 18, 2021. 

Melane Conyers-Ausbrooks, 

Secretary of the Board. 

For the reasons discussed in the 

preamble, the Board amends 12 CFR 

part 745 as follows: 

PART 745—SHARE INSURANCE AND 

APPENDIX 

■ 1. The authority citation for part 745 

continues to read as follows: 

Authority: 12 U.S.C. 1752(5), 1757, 1765, 

1766, 1781, 1782, 1787, 1789; title V, Pub. L. 

109–351;120 Stat. 1966. 

■ 2. Revise § 745.8(c) to read as follows: 

§ 745.8 Joint ownership accounts 

* * * * * 

(c) Qualifying joint accounts. (1) A 

joint account is a qualifying joint 

account if each of the co-owners has 

personally signed a membership or 

account signature card and has a right 

of withdrawal on the same basis as the 

other co-owners. The signature 

requirement does not apply to share 

certificates, or to any accounts 

maintained by an agent, nominee, 

guardian, custodian or conservator on 

behalf of two or more persons if the 

records of the credit union properly 

reflect that the account is so maintained. 

(2) The signature card requirement of 

paragraph (c)(1) of this section also may 

be satisfied by information contained in 

the account records of the federally 

insured credit union establishing coownership of the share account, 

including, but not limited to, evidence 

that the institution has issued a 

mechanism for accessing the account to 

each co-owner or evidence of usage of 

the share account by each co-owner. 

* * * * * 

[FR Doc. 2021–03671 Filed 2–23–21; 8:45 am] 

BILLING CODE 7535–01–P 


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