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About
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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Analysis
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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Support Services
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.
Consumers
Consumers
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
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.

Guaranteeing Deposits

02-0504A / May 2002

Guaranteeing Deposits

Subject

Share Insurance

Historic Status

Non-historic

Edward Boughal, President/CEO
Suffolk Federal Credit Union
3681 Horseblock Road
P.O. Box 9005
Medford, Long Island, NY 11763

Re: Guaranteeing Deposits.

Dear Mr. Boughal:

My letter to Conrad Schlund dated April 5, 2002, concerning the permissibility of a federal credit union (FCU) pledging a security as collateral for deposits or shares in excess of $100,000, incorrectly states that an FCU may pledge the loans of its members as collateral for shares. As explained in the attached letter from me to Christopher Turner dated July 31, 1997, an FCU may only pledge its loans to secure obligations. An FCU may not pledge its loans to secure shares, which are considered equity, except for the limited purpose of receiving public monies of the United States, states, local governments, or political subdivisions. 12 U.S.C. §1767(b). Enclosed is a revised version of my April 5 letter to you that reflects NCUA’s current interpretation.

I apologize for any confusion this may have caused.

Sincerely,

/s/

Sheila A. Albin
Associate General Counsel

GC/MFR:bhs
SSIC 3000
02-0504a

cc: Lynn Lodge, Analyst, Region I

Last modified on

11/14/24