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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.
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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 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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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.

Share Draft Cash Disbursement

97-0148 / February 1997

Share Draft Cash Disbursement

Subject

Operations

Historic Status

Non-historic

February 7, 1997

Ms. Mona Marshall
Office Manager
Heartland Health Federal Credit Union
801 Faraon Street
St. Joseph, Missouri 64501

Re: Share Draft Cash Disbursement (Your January 16, 1997, Letter)

Dear Ms. Marshall:

You have written requesting opinion letters from this office on requirements for a federal credit union (FCU) establishing a share draft program. Specifically, you are interested in determining the timing requirements for cashing a draft for a nonmember drawn on a member's account. We have no opinion letters on this issue. I have enclosed for your review Section 6150 of NCUA's Accounting Manual which addresses Share Drafts. Section 6150.15 specifically advises an FCU establishing a share draft program to consult with a local attorney to assure that its program not only complies with federal law, but also all applicable state laws. Further, all FCUs which offer share drafts are subject to Federal Reserve Board Regulation CC.

I hope that we have been of assistance.

Sincerely,

Michael J. McKenna
Acting Associate General Counsel

GC/MFR:bhs
SSIC 4630
97-0148

Enclosure

Last modified on

11/14/24