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Created by the U.S. Congress in 1970, the National Credit Union Administration is an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions.
Regulation & Supervision
Regulation & Supervision
The NCUA protects the safety and soundness of the credit union system by identifying, monitoring and reducing risks to the National Credit Union Share Insurance Fund. Backed by the full faith and credit of the United States, the Share Insurance Fund provides up to $250,000 of federal share insurance to millions of account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.
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The NCUA’s economists and analysts compile data on the credit union system’s financial performance, merger activity, changes in credit union chartering and fields of membership, as well as broader economic trends affecting credit unions. Users can find information on a single credit union or analyze broader nation-wide trends.
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The NCUA provides a number of support services to the credit union system, such as providing training, grants and loans, chartering, and field-of-membership services; maintaining the health and stability of Share Insurance Fund; managing the assets of failed credit unions; and providing emergency liquidity.
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The NCUA works to protect credit union members and consumers, raise awareness of potential frauds, facilitate access to affordable financial services, and educate consumers on the importance of savings and how they can improve their financial well-being.
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Cybersecurity Resources
Cyberattacks and cybersecurity vulnerabilities pose significant risks to the financial system. Because of vulnerabilities within the credit union industry and the broader financial system to potential cyberattacks, cybersecurity is one of the NCUA’s top supervisory priorities and a top-tier risk under the agency’s enterprise risk-management program.

Flow-Through Insurance Coverage

96-0220 / April 1996

Flow-Through Insurance Coverage

Subject

Share Insurance

Historic Status

Non-historic

April 4, 1996

Carlos E. Garcia, Assistant Vice President
J.B. Hanauer & Co.
2960 Aventura Boulevard
North Miami Beach, Florida 33180

Re: Flow-Through Insurance Coverage (Your February 12, 1996, Letter)

Dear Mr. Garcia:

You have requested our opinion on whether the National Credit Union Share Insurance Fund provides flow-though insurance for a "block CD." We have previously advised you that since only persons within a credit union's field of membership may belong to the credit union, insurance coverage involving multi-tiered relationships would have to be reviewed on a case-by-case basis using specific factual scenarios. Unfortunately, your facts are insufficient to provide a response. For example, while you reference community development credit unions (CDCU) in your letter, you do not indicate whether your facts apply to a CDCU. You have also not advised us whether the hypothetical beneficial owners are credit union members.

The less general your hypothetical, the more likely we will be able to give you a satisfactory response.

Sincerely,

Richard S. Schulman
Associate General Counsel

GC/MFR:bhs
SSIC 3000
96-0220

Last modified on

11/14/24