The National Credit Union Administration (NCUA) unanimously
approved an advance notice of proposed rulemaking (NPR) asking
stakeholders to suggest improvements to the agency’s regulations implementing
its records preservation program and accompanying guidelines.
Part 749 of the NCUA rules and regulations, under 12 CFR
Title VII, requires all federally insured credit unions to maintain a records retention
program to identify, store and reconstruct vital records in the event they are
destroyed.
“It is important that federally insured credit unions
maintain a robust records preservation program — a program whereby vital
records can readily be reconstructed,” NCUA Chair Todd Harper said in a
statement. “Maintaining vital records is central to a credit union’s ability to
properly serve its members and to the NCUA’s ability to fulfill its
supervisory, enforcement and liquidation functions.”
Interested parties are being encouraged to comment on
whether Part 749 should be updated to ensure credit unions properly preserve
records vital to their business operations and the NCUA’s supervisory needs.
The NPR provides an explanation of the types of materials
that constitute “vital records,” as defined in Part 749:
“The regulation defines the term ‘vital records’ as: (a) a
list of share, deposit, and loan balances for each member’s account as of the
close of the most recent business day that shows each balance individually
identified by a name or number; lists multiple loans of one account separately;
and contains information sufficient to enable the credit union to locate each
member, such as address and telephone number; (b) a financial report, which
lists all of the credit union’s asset and liability accounts and bank
reconcilements, current as of the most recent month-end; (c) a list of the
credit union’s accounts at financial institutions, insurance policies, and
investments along with related contact information, current as of the most
recent month-end; and (d) emergency contact information for employees,
officials, regulatory offices, and vendors used to support vital records.”
The NPR further lists the types of records that are required
to be retained permanently and the length of time deemed appropriate for the
retention of other records held by credit unions.
Comments must be received no later than 60 days following
the NPR’s publication in the Federal Register.