[Federal Register Volume 64, Number 229 (Tuesday, November 30, 1999)]
[Proposed Rules]
[Pages 66812-66816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-30694]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 745


Share Insurance and Appendix

AGENCY: National Credit Union Administration (NCUA).

ACTION: Proposed rule with request for comments.

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SUMMARY: The NCUA proposes to revise its share insurance regulations 
with respect to living trusts, joint revocable trusts, IRA accounts, 
public unit accounts, guardian accounts and the application of local 
law to share insurance determinations. NCUA also proposes to revise the 
substance and format of the Appendix to part 745. These proposals, 
which parallel the Federal Deposit Insurance Corporation's (FDIC's) 
insurance rules, are intended to maintain parity between NCUA's and 
FDIC's insurance programs and to prevent confusion in understanding and 
applying the share insurance rules.

DATES: NCUA welcomes comments on these proposals. Comments must be 
received on or before January 31, 2000.

ADDRESSES: Comments should be directed to Becky Baker, Secretary of the 
Board. Mail or hand-deliver comments to: National Credit Union

[[Page 66813]]

Administration, 1775 Duke Street, Alexandria, VA 22314-3428. You may 
also fax comments to (703) 518-6319 or e-mail comments to 
[email protected]. Please send comments by one method only.

FOR FURTHER INFORMATION CONTACT: Frank S. Kressman, Staff Attorney, at 
the above address, or telephone: (703) 518-6540.

SUPPLEMENTARY INFORMATION:

A. Background

    In accordance with NCUA's regulatory review process, NCUA staff has 
identified part 745 as one of the regulations in need of updating, 
clarification and simplification. On March 23, 1999, the Board of 
Directors of the FDIC adopted deposit insurance rule changes regarding 
joint accounts and revocable trust accounts. 64 FR 15653 (April 1, 
1999). The NCUA Board adopted similar changes on April 15, 1999. 64 FR 
19685 (April 22, 1999). At that time, NCUA was aware that additional 
changes to part 745 were necessary and would be forthcoming, but 
believed that it was important to implement the amendments immediately 
regarding joint accounts and revocable trust accounts. NCUA has 
completed a more comprehensive review of part 745 and reviewed the 
comments submitted in connection with the joint accounts and revocable 
trust accounts rule changes. NCUA is now proposing additional 
amendments to improve part 745.

B. Proposed Amendments

Living Trust Accounts

    A living trust is a formal trust that an owner creates and retains 
control over during his or her lifetime. NCUA intends to treat a 
revocable trust account that is held in connection with a living trust 
in the same manner it treats all other revocable trust accounts, if the 
living trust otherwise meets all requirements that pertain to revocable 
trust accounts. Living trusts that include conditions that could 
prevent a beneficiary from acquiring a vested and non-contingent 
interest in the account funds upon the owner's death, however, would 
not be entitled to insurance coverage under this section. NCUA will 
consider the grantor of a living trust as the owner of the funds in the 
account during that person's life. The owner must be a member of the 
credit union or otherwise eligible to open the account and qualify for 
insurance.

Joint Revocable Trust Accounts

    Joint revocable trust accounts are revocable trust accounts, as 
described in Sec. 745.4 of NCUA's regulations, that are established by 
more than one owner and held for the benefit of others. NCUA proposes 
to provide separate insurance coverage for qualifying accounts of this 
kind.

Application of State or Local Law To Share Insurance Determinations

    In the interest of maintaining uniform national rules and 
consistent share insurance determinations, NCUA proposes to clarify the 
degree of control that state or local law has on share insurance 
determinations. NCUA regulations presently do not state as clearly as 
they could that the provisions of part 745 control over state or local 
law in determining share insurance coverage. Section 745.2(a) currently 
provides that, to the extent local law enters into a share insurance 
determination, the law of the jurisdiction in which the insured credit 
union's principal office is located will govern. This should be 
understood to mean that where an insured credit union has offices in 
multiple jurisdictions, the local law of the jurisdiction in which the 
insured credit union's principal office is located will control over 
the local law of the other jurisdictions where the insured credit union 
may have branch offices or service facilities. This is no way effects 
the supremacy of federal law. Generally, state law is used to determine 
property interests in an account and may be used to determine the 
extent of coverage available to particular individuals based on those 
rights. However, state law will not extend coverage beyond that 
provided under the Federal Credit Union Act or part 745.

Individual Retirement Accounts (IRAs)

    NCUA proposes to specify that Roth IRAs and Education IRAs are 
included among member accounts eligible for share insurance. These 
accounts were first made available to consumers on January 1, 1998. 
Although both are colloquially known as IRA accounts, only the Roth IRA 
will be treated the same as a traditional IRA for share insurance 
purposes under Sec. 745.9-2 of NCUA's regulations. Education IRAs, for 
share insurance purposes, will be treated as irrevocable trust accounts 
under Sec. 745.9-1 of NCUA's regulations.

Public Unit Accounts

    NCUA proposes to liberalize its share insurance coverage for some 
kinds of public unit accounts. Currently, public funds invested by an 
official custodian of funds of: (1) the United States; (2) any state of 
the United States or any county, municipality, or political subdivision 
thereof; (3) the District of Columbia; (4) specified territories or 
possessions of the United States and (5) tribal funds of any Indian 
tribe are generally separately insured up to $100,000. For share 
insurance purposes, NCUA proposes to distinguish share draft accounts 
from share certificate and regular share accounts in this context. The 
result will be to provide insurance coverage up to $100,000 for share 
draft accounts and up to an additional $100,000 for share certificate 
and regular share accounts. This more liberal coverage will only be 
available when an official custodian establishes public unit accounts 
in an authorized, federally-insured credit union that is located within 
the jurisdiction from which the custodian's authority is derived. 
Accounts established outside of that jurisdiction will be limited to 
the current $100,000 limit without regard to whether the funds are held 
in share draft accounts or share certificate and regular share 
accounts.

Guardian Accounts

    Currently, funds held in the name of a guardian, custodian or 
conservator for the benefit of a ward or minor are insured up to 
$100,000 in the aggregate, separately from any other accounts of the 
guardian, custodian, conservator, ward or minor. FDIC, however, treats 
these accounts as agency or nominee accounts and does not provide 
separate insurance coverage. Rather, FDIC adds the guardian account 
together with the individual accounts of the beneficiary of the 
guardian account and insures that aggregate up to $100,000. NCUA 
proposes to treat these accounts in a manner consistent with FDIC's 
treatment. This will result in a reduction in insurance coverage.

Appendix to part 745

    The Appendix to part 745 provides examples that illustrate the 
application of share insurance coverage. NCUA proposes to enhance the 
usefulness of the Appendix by incorporating additional information and 
examples and putting it into an easy to read question-and-answer 
format. The Appendix is not expected to answer every share insurance 
question that could conceivably be asked. Rather, its function is to 
address and clarify the most common insurance coverage issues in a 
simple and manageable format. NCUA intends to continue to update the 
Appendix periodically as circumstances arise necessitating further 
clarification.

[[Page 66814]]

Regulatory Procedures

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires NCUA to prepare an analysis 
to describe any significant economic impact any proposed regulation may 
have on a substantial number of small credit unions, meaning those 
under $1 million in assets.
    The NCUA has determined and certifies that the proposed rule, if 
adopted, will not have a significant economic impact on a substantial 
number of small credit unions. The reasons for this determination are 
that the proposed changes to the share insurance regulations will not 
increase the premiums paid by credit unions nor will the proposed 
changes impose any additional requirements on insured credit unions. 
Accordingly, the NCUA has determined that a Regulatory Flexibility 
Analysis is not required.

Paperwork Reduction Act

    NCUA has determined that the proposed amendments do not increase 
paperwork requirements under the Paperwork Reduction Act of 1995 and 
regulations of the Office of Management and Budget.

Executive Order 12612

    Executive Order 12612 requires NCUA to consider the effect of its 
actions on state interests. It states that: ``Federal action limiting 
the policy-making discretion of the states should be taken only where 
constitutional authority for the action is clear and certain, and the 
national activity is necessitated by the presence of a problem of 
national scope.'' The proposed rule will not have a direct effect on 
the states, on the relationship between the national government and the 
states, or on the distribution of power and responsibilities among the 
various levels of government. NCUA has determined that this rule does 
not constitute a significant regulatory action for purposes of the 
executive order.

Agency Regulatory Goal

    NCUA's goal is to promulgate clear and understandable regulations 
that impose minimal regulatory burden. We request your comments on 
whether the proposed rule is understandable and minimally intrusive, if 
implemented as proposed. We also encourage comments that address any 
other share insurance issues we have not discussed here.

List of Subjects in 12 CFR Part 745

    Credit unions, Pension plans, Share insurance, Trustee.

    By the National Credit Union Administration Board, on November 
18, 1999.
Becky Baker,
Secretary of the Board.

    For the reasons stated above, it is proposed that 12 CFR part 745 
be amended as follows:

PART 745--SHARE INSURANCE AND APPENDIX

    1. The authority citation for part 745 continues to read as 
follows:

    Authority: 12 U.S.C. 1752(5), 1757, 1765, 1766, 1781, 1782, 
1787, 1789.

    2. Section 745.2(a) is amended by revising the last sentence to 
read as follows:


Sec. 745.2  General principles applicable in determining insurance of 
accounts.

    (a)* * * While the provisions of this part govern in determining 
share insurance coverage, to the extent local law enters into a share 
insurance determination, the local law of the jurisdiction in which the 
insured credit union's principal office is located will control over 
the local law of other jurisdictions where the insured credit union has 
offices or service facilities.
* * * * *
    3. Section 745.3 is amended by revising paragraph (b) to read as 
follows:


Sec. 745.3  Single ownership accounts.

* * * * *
    (b) Funds held by a guardian, custodian, or conservator for the 
benefit of a ward or for the benefit of a minor under a Uniform Gifts 
to Minors Act or Uniform Transfer to Minors Act and deposited in one or 
more accounts in the name of the guardian, custodian, or conservator 
will, for purposes of this part, be deemed to be accounts held by 
agents or nominees and will be insured in accordance with paragraph 
(a)(2) of this section.
    4. Section 745.4 is amended by adding paragraphs (e) and (f) to 
read as follows:


Sec. 745.4  Revocable trust accounts.

* * * * *
    (e) Living trusts. Insurance treatment under this section also 
applies to revocable trust accounts held in connection with a so-called 
``living trust,'' meaning a formal trust which an owner creates and 
retains control over during his or her lifetime. If a named beneficiary 
in a living trust is a qualifying beneficiary under this section, then 
the share account held in connection with the living trust may be 
eligible for share insurance under this section, assuming compliance 
with all the provisions of this part. If the living trust includes a 
defeating contingency that relates to a beneficiary's interest in the 
trust assets, then insurance coverage under this section will not be 
provided. For purposes of this section, a defeating contingency is 
defined as a condition that would prevent the beneficiary from 
acquiring a vested and non-contingent interest in the funds in the 
share account upon the owner's death.
    (f) Joint revocable trust accounts. Where an account described in 
paragraph (a) of this section is established by more than one owner and 
held for the benefit of others, some or all of whom are within the 
qualifying degree of kinship, the respective interests of each owner 
held for the benefit of each qualifying beneficiary will be separately 
insured up to $100,000. Those interests will be deemed equal unless 
otherwise stated in the share account records of the federally-insured 
credit union. Interests held for non-qualifying beneficiaries will be 
added to the individual accounts of the owners. Where a husband and a 
wife establish a revocable trust account naming themselves as the sole 
beneficiaries, the account will not be insured according to the 
provisions of this section, but will instead be insured in accordance 
with the joint account provisions of Sec. 745.8.
    5. Section 745.9-1 is amended by adding paragraph (c) to read as 
follows:


Sec. 745.9-1  Trust accounts.

* * * * *
    (c) This section applies to trust interests created in Education 
IRAs established in connection with Sec. 530 of the Internal Revenue 
Code (26 U.S.C. 530).
    6. Section 745.9-2(a) is revised to read as follows:


Sec. 745.9-2  IRA/Keogh accounts.

    (a) The present vested ascertainable interest of a participant or 
designated beneficiary in a trust or custodial account maintained 
pursuant to a pension or profit-sharing plan described under 
Sec. 401(d) (Keogh account), Sec. 408(a) (IRA) and Sec. 408A (Roth IRA) 
of the Internal Revenue Code (26 U.S.C. 401(d), 408(a) and 408A) will 
be insured up to $100,000 separately from other accounts of the 
participant or designated beneficiary. For insurance purposes, IRA and 
Roth IRA accounts will be combined together and insured in the 
aggregate up to $100,000. A Keogh account will be separately insured 
from an IRA account, Roth IRA account or, where applicable, aggregated 
IRA and Roth IRA accounts.
* * * * *

[[Page 66815]]

    7. Section 745.10 is amended by revising paragraphs (a)(1) through 
(a)(5) and (b), and adding a second sentence to paragraph (c) to read 
as follows:


Sec. 745.10  Public unit accounts.

    (a) * * *
    (1) Each official custodian of funds of the United States lawfully 
investing the same in a federally-insured credit union will be 
separately insured in the amount of:
    (i) Up to $100,000 in the aggregate for all share draft accounts; 
and
    (ii) Up to $100,000 in the aggregate for all share certificate and 
regular share accounts;
    (2) Each official custodian of funds of any state of the United 
States or any county, municipality, or political subdivision thereof 
lawfully investing the same in a federally-insured credit union in the 
same state will be separately insured in the amount of:
    (i) Up to $100,000 in the aggregate for all share draft accounts; 
and
    (ii) Up to $100,000 in the aggregate for all share certificate and 
regular share accounts;
    (3) Each official custodian of funds of the District of Columbia 
lawfully investing the same in a federally-insured credit union in the 
District of Columbia will be separately insured in the amount of:
    (i) Up to $100,000 in the aggregate for all share draft accounts; 
and
    (ii) Up to $100,000 in the aggregate for all share certificate and 
regular share accounts;
    (4) Each official custodian of funds of the Commonwealth of Puerto 
Rico, the Panama Canal Zone, or any territory or possession of the 
United States, or any county, municipality, or political subdivision 
thereof lawfully investing the same in a federally-insured credit union 
in Puerto Rico, the Panama Canal Zone, or any such territory or 
possession, respectively, will be separately insured in the amount of:
    (i) Up to $100,000 in the aggregate for all share draft accounts; 
and
    (ii) Up to $100,000 in the aggregate for all share certificate and 
regular share accounts;
    (5) Each official custodian of tribal funds of any Indian tribe (as 
defined in Section 3(c) of the Indian Financing Act of 1974) or agency 
thereof lawfully investing the same in a federally-insured credit union 
will be separately insured in the amount of:
    (i) Up to $100,000 in the aggregate for all share draft accounts; 
and
    (ii) Up to $100,000 in the aggregate for all share certificate and 
regular share accounts;
    (b) Each official custodian referred to in paragraphs (a)(2), (3), 
and (4) of this section lawfully investing such funds in share accounts 
in a federally-insured credit union outside of their respective 
jurisdictions shall be separately insured up to $100,000 in the 
aggregate for all such accounts regardless of whether they are share 
draft, share certificate or regular share accounts.
    (c) * * * Where an officer, agent or employee of a public unit has 
custody of certain funds which by law or under a bond indenture are 
required to be set aside to discharge a debt owed to the holders of 
notes or bonds issued by the public unit, any investment of such funds 
in an account in a federally-insured credit union will be deemed to be 
a share account established by a trustee of trust funds of which the 
noteholders or bondholders are pro rata beneficiaries, and the 
beneficial interest of each noteholder or bondholder in the share 
account will be separately insured up to $100,000.
* * * * *
    8. The introductory text to the Appendix to part 745 is amended by 
adding a heading to read as follows:

APPENDIX TO PART 745--EXAMPLES OF INSURANCE COVERAGE AFFORDED 
ACCOUNTS IN CREDIT UNIONS INSURED BY THE NATIONAL CREDIT UNION 
INSURANCE FUND

What is the Purpose of This Appendix?

* * * * *
    9. Part A of the Appendix to part 745 is amended by revising the 
heading of Part A, the introductory paragraph and Examples 5 and 6 to 
read as follows:

A. How are Single Ownership Accounts Insured?

    All funds owned by an individual member or, in a community 
property state, by the husband-wife community of which the 
individual is a member and invested in one or more individual 
accounts are added together and insured to the $100,000 maximum. 
This is true whether the accounts are maintained in the name of the 
individual member owning the funds, in the name of the member's 
agent or nominee, or in a custodial loan account on behalf of the 
member as a borrower (Secs. 745.3(a)(1), (2) and (3)). For this 
purpose, funds held by a guardian, custodian or conservator for the 
benefit of a ward or minor shall be treated as an agent or nominee 
account.
* * * * *

Example 5

    Question: Member C, a minor, maintains an individual account of 
$750. C's grandfather makes a gift to him of $100,000, which is 
invested in another account by C's father, designated on the credit 
union's records as custodian under a Uniform Gift to Minors Act. C's 
father, also a member, maintains an individual account of $100,000. 
What is the insurance coverage?
    Answer: C's individual account and the custodial account held 
for him by his father are added together and insured to the $100,000 
maximum, leaving $750 uninsured. The individual account held by C's 
father is separately insured up to the $100,000 maximum 
(Secs. 745.3(a)(1), (a)(2) and b).

Example 6

    Question: Member G, a court-appointed guardian, invests 
$100,000, which belongs to member W, his ward, in a properly 
designated custodial account. W and G each maintain $25,000 in 
individual accounts. What is the insurance coverage?
    Answer: W's individual account and the guardianship account in 
G's name are added together and insured to the $100,000 maximum 
leaving $25,000 uninsured. G's individual account is separately 
insured to the $100,000 maximum (Secs. 745.3(a)(1), (a)(2) and (b)).
* * * * *
    10. Part B of the Appendix to part 745 is amended by revising the 
heading of Part B and adding Example 4 to read as follows:

B. How are Revocable Trust Accounts Insured?

* * * * *

Example 4

    Question: Member H invests $200,000 in a revocable trust account 
held in connection with a living trust with his son, S, and his 
daughter, D, as named beneficiaries. What is the insurance coverage?
    Answer: Since S and D are children of H, the owner of the 
account, the funds would normally be insured under the rules 
governing revocable trust accounts up to $100,000 as to each 
beneficiary (Sec. 745.4(b)). However, because this account is held 
in connection with a living trust whose named beneficiaries are 
qualifying beneficiaries under Sec. 745.4, it must be scrutinized to 
determine whether the account complies with all other provisions of 
this part and whether the living trust contains any defeating 
contingencies. Assuming there are no defeating contingencies and 
that the account complies with all other requirements of this part, 
then it will be treated as any other revocable trust. In this 
instance, it will be insured up to $100,000 as to each beneficiary 
(Sec. 745.4(e)). Assuming that S and D have equal beneficial 
interests ($100,000 each), H is fully insured for this account.

    11. Part C of the Appendix to part 745 is amended by revising the 
heading of Part C to read as follows:

C. How are Accounts Held by Executors or Administrators Insured?

* * * * *
    12. Part D of the Appendix to part 745 is amended by revising the 
heading of Part D to read as follows:

D. How are Accounts Held by a Corporation, Partnership or 
Unincorporated Association Insured?

    13. Part E of the Appendix to part 745 is amended by revising the 
heading of

[[Page 66816]]

Part E, the first introductory paragraph and Examples 4 through 7 and 
adding new Example 9 to read as follows:

E. How are Public Unit Accounts Insured?

    For insurance purposes, the official custodian of funds 
belonging to a public unit, rather than the public unit itself, is 
insured as the account holder. All funds belonging to a public unit 
and invested by the same custodian in a federally-insured credit 
union are categorized as either share draft accounts or share 
certificate and regular share accounts. If these accounts are 
invested in a federally-insured credit union located in the 
jurisdiction from which the official custodian derives his 
authority, then the share draft accounts will be insured separately 
from the share certificate and regular share accounts. Under this 
circumstance, all share draft accounts are added together and 
insured to the $100,000 maximum and all share certificate and 
regular share accounts are also added together and separately 
insured up to the $100,000 maximum. If, however, these accounts are 
invested in a federally-insured credit union located outside of the 
jurisdiction from which the official custodian derives his 
authority, then insurance coverage is limited to $100,000 for all 
accounts regardless of whether they are share draft, share 
certificate or regular share accounts. If there is more than one 
official custodian for the same public unit, the funds invested by 
each custodian are separately insured. If the same person is 
custodian of funds for more than one public unit, he is separately 
insured with respect to the funds of each unit held by him in 
properly designated accounts. The maximum coverage for an official 
custodian of funds of the United States would be $100,000.
* * * * *

Example 4

    Question: A city treasurer invests city funds in each of the 
following accounts: ``General Operating Account,'' ``School 
Transportation Fund,'' ``Local Maintenance Fund,'' and ``Payroll 
Fund.'' Each account is available to the custodian upon demand. By 
administrative direction, the city treasurer has allocated the funds 
for the use of and control by separate departments of the city. What 
is the insurance coverage?
    Answer: All of the accounts are added together and insured in 
the aggregate to $100,000. Because the allocation of the city's 
funds is not by statute or ordinance for the specific use of and 
control by separate departments of the city, separate insurance 
coverage to the maximum of $100,000 is not afforded to each account 
(Secs. 745.1(d) and 745.10(a)(2)).

Example 5

    Question: A, the custodian of retirement funds of a military 
exchange, invests $1,000,000 in an account in an insured credit 
union. The military exchange, a non-appropriated fund 
instrumentality of the United States, is deemed to be a public unit. 
The employees of the exchange are the beneficiaries of the 
retirement funds but are not members of the credit union. What is 
the insurance coverage?
    Answer: Because A invested the funds on behalf of a public unit, 
in his capacity as custodian, those funds qualify for $100,000 share 
insurance even though A and the public unit are not within the 
credit union's field of membership. Since the beneficiaries are 
neither public units nor members of the credit union they are not 
entitled to separate share insurance. Therefore, $900,000 is 
uninsured (Sec. 745.10(a)(1)).

Example 6

    Question: A is the custodian of the County's employee retirement 
funds. He deposits $1,000,000 in retirement funds in an account in 
an insured credit union. The ``beneficiaries'' of the retirement 
fund are not themselves public units nor are they within the credit 
union's field of membership. What is the insurance coverage?
    Answer: Because A invested the funds on behalf of a public unit, 
in his capacity as custodian, those funds qualify for $100,000 share 
insurance even though A and the public unit are not within the 
credit union's field of membership. Since the beneficiaries are 
neither public units nor members of the credit union they are not 
entitled to separate share insurance. Therefore, $900,000 is 
uninsured (Sec. 745.10(a)(2)).

Example 7

    Question: A county treasurer establishes the following share 
draft accounts in an insured credit union each with $100,000:

``General Operating Fund''
``County Roads Department Fund''
``County Water District Fund''
``County Public Improvement District Fund''
``County Emergency Fund''

    What is the insurance coverage?
    Answer: The ``County Roads Department,'' ``County Water 
District'' and ``County Public Improvement District'' accounts would 
each be separately insured to $100,000 if the funds in each such 
account have been allocated by law for the exclusive use of a 
separate county department or subdivision expressly authorized by 
State statute. Funds in the ``General Operating'' and ``Emergency 
Fund'' accounts would be added together and insured in the aggregate 
to $100,000, if such funds are for countywide use and not for the 
exclusive use of any subdivision or principal department of the 
county, expressly authorized by State statute (Secs. 745.1(d) and 
745.10(a)(2)).
* * * * *

Example 9

    Question: A, an official custodian of funds of a state of the 
United States, lawfully invests $250,000 of state funds in a 
federally-insured credit union located in the state from which he 
derives his authority as an official custodian. What is the 
insurance coverage?
    Answer: If A invested the entire $250,000 in a share draft 
account, then $100,000 would be insured and $150,000 would be 
uninsured. If A invested $125,000 in share draft accounts and 
another $125,000 in share certificate and regular share accounts, 
then A would be insured for $100,000 for the share draft accounts 
and $100,000 for the share certificate and regular share accounts 
leaving $50,000 uninsured (Sec. 745.10(a)(2)). If A had invested the 
$250,000 in a federally-insured credit union located outside the 
state from which he derives his authority as an official custodian, 
then $100,000 would be insured for all accounts regardless of 
whether they were share draft, share certificate or regular share 
accounts, leaving $150,000 uninsured (Sec. 745.10(b)).

    14. Part F of the Appendix to part 745 is amended by revising the 
heading of Part F to read as follows:

F. How are Joint Accounts Insured?

* * * * *
    15. Part G of the Appendix to part 745 is amended by revising the 
heading of Part G and the second sentence of the seventh introductory 
paragraph to read as follows:

G. How are Trust Accounts and Retirement Accounts Insured?

    * * * Although credit unions may serve as trustees or custodians 
for self-directed IRA, Roth IRA and Keogh accounts, once the funds 
in those accounts are taken out of the credit union, they are no 
longer insured.
* * * * *
[FR Doc. 99-30694 Filed 11-29-99; 8:45 am]
BILLING CODE 7535-01-P