Insurance Conversions Will Require NewDisclosures
ALEXANDRIA Va. - (01/14/05) --The NCUA Board also approved expandeddisclosure requirements Thursday for credit unions converting toprivate deposit insurance. Among the new requirements are thatmembers are clearly informed that the National CU Share InsuranceFund operated by NCUA enjoys the full backing, the so-called fullfaith and credit, of the U.S. government, and that they be giventhe right to withdraw their funds without penalty if they disagreewith the conversion to private insurance. The rules will alsorequire that members be informed that after conversion to privateinsurance if their credit union eventually fails, the federalgovernment does not guarantee that they will get their money back."Members should have access to this information prior to voting onsuch a conversion, not just after the fact," said NCUA ChairmanJoAnn Johnson.