Credit unions may use approved share insurance providers

A credit union may insure member share and deposit accounts through an approved credit union share guaranty corporation or the National Credit Union Administration. The rule covers credit unions supervised by the commissioner of commerce and their member share and deposit accounts. The corporation must comply with the listed insurance requirements and receive the commissioner's approval. A credit union that does not maintain required insurance must dissolve or merge with an appropriately insured credit union. A credit union may not voluntarily end its insurance without the commissioner's approval. The cited provisions do not state a separate start or end date.

An approved credit union share guaranty corporation must guarantee covered share accounts, and the commissioner may examine the corporation and charge it for examination costs. The rule covers individual members and nonmembers of participating credit unions whose accounts are insured by the corporation. The corporation sets the guaranteed amount, but the primary guarantee must cover at least the account amount and may not be below the stated statutory minimum. The primary guarantee may not exceed $250,000 or the primary amount insured by the National Credit Union Administration, whichever is greater. Money collected for examinations goes to the financial institutions account in the special revenue fund. The cited provisions do not state a separate start or end date.

State agencies, public entities, pension plans, money transmitters, and other listed programs may recognize deposits or accounts insured by an approved share guaranty corporation where the cited laws require or allow insured funds. The provisions apply across the listed investment, public-deposit, money-transmission, funeral-trust, retirement, securities, and estate-account rules. The provider must be approved under the credit union insurance provisions. Each investment, deposit, account, or exemption remains subject to the separate limits and conditions in its governing statute. These provisions do not by themselves guarantee that an entity will use an approved provider. The cited provisions do not state a separate start or end date.