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Catastrophic Act Preparedness and Response Resources

This page offers credit unions and consumers information and resources on preparing for and addressing catastrophic acts.

Credit Union Resources 

According to NCUA regulations § 748.1(b), “a catastrophic act is defined as any disaster, natural or otherwise, resulting in physical destruction or damage to the credit union or causing an interruption in vital member services, [as defined in NCUA regulations § 749.1], projected to last more than two consecutive business days.”

A credit unions that is building a catastrophic act preparedness program can consider including the following elements in its program:

  1. A business impact analysis to determine critical systems and necessary resources
  2. A risk assessment to evaluate potential threats
  3. A written plan that includes:
    • A list of people with authority to enact the plan
    • Plans to preserve and restore vital records
    • A method for restoring vital member services by identifying alternate operating location(s) or mediums to provide services, such as telephone centers, shared service centers, agreements with other credit unions, or other appropriate methods
    • Communication methods for employees and members
    • Provisions to notify the regional director as required by 12 CFR 748.1(b)
    • Training and documentation of training to ensure all employees and volunteer officials are aware of procedures to follow if vital records are destroyed or vital member services are lost
    • Testing procedures and associated guidelines for documenting the test results
  4. Internal controls for reviewing the plan at least annually and for revising the plan as circumstances warrant, for example, to address changes in the credit union's operations
  5. Periodic reviews, exercises, and tests of catastrophic preparedness and response plans to provide members with ongoing services in a catastrophic event.
    • Response plans should match the complexity of operations and focus on minimizing service interruptions for members.

During a catastrophic act, NCUA will, when necessary:

  • Work with state regulators and state league organizations to ensure federally insured state-chartered credit unions are aware of and can access NCUA’s assistance
  • Encourage credit unions to make prudent loans with special terms and reduced documentation to affected members
  • Reschedule routine examinations of affected credit unions
  • Make loans to meet the liquidity needs of member credit unions through the Central Liquidity Facility

Credit unions that expect to encounter difficulty meeting reporting requirements should contact their primary federal and/or state regulator to discuss their situation. NCUA does not expect to assess penalties or take other supervisory action against credit unions that take reasonable and prudent steps to comply with regulatory reporting requirements in a catastrophic event.

Any federally insured credit union needing NCUA assistance should contact its regional office.

Low-income designated credit unions affected by natural disasters such as hurricanes or flooding can apply for up to $15,000 in Urgent Needs Grant assistance to repair damage or restore services to members. Information about Urgent Needs Grants is available online. Any low-income designated credit union needing grant assistance should contact the Office of Credit Union Resources and Expansion at curemail@ncua.gov or 703.518.6610.

Consumer Resources

Member deposits at federally insured credit unions remain protected by the National Credit Union Share Insurance Fund. Administered by NCUA, the Share Insurance Fund insures individual accounts up to $250,000: a member’s interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund also separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States.

Credit union members with questions about their Share Insurance coverage can contact NCUA’s Consumer Assistance Center at 800.755.1030, Monday through Friday, between 8 a.m. and 5 p.m. Eastern.

Credit union members with questions about their credit union should visit NCUA’s consumer site MyCreditUnion.gov.

Consumers can find additional catastrophic act information including an up-to-date status of active hurricanes and preparation guidance below.

Beware of Email Phishing Scams During Disasters

In a catastrophic event, credit unions and their members should be careful with email from anyone requesting donations for a charitable organization, even if the email seems legitimate. Fraudulent emails commonly appear after major natural disasters and often contain links or attachments that direct users to phishing or malware-infected websites. Visit NCUA’s Fraud Prevention Center for additional information on how to recognize and protect yourself and your personal financial information from fraudsters.

Resources

NCUA Resources:

Interagency Resources:

Other Resources: