12 Cfr 741.202

§ 741.202

12 CFR Ch. VII (1–1–16 Edition)

possess the minimum fidelity bond coverage stated in part 713 of this chapter
in order for its application for such insurance to be approved and for such insurance coverage to continue. A federally insured credit union whose fidelity
bond coverage is terminated shall mail
notice of such termination to the Regional Director not less than 35 days
prior to the effective date of such termination.
(b) Corporate credit unions must
comply with § 704.18 of this chapter in
lieu of part 713 of this chapter.
[60 FR 58504, Nov. 28, 1995, as amended at 64
FR 28721, May 27, 1999; 70 FR 61716, Oct. 26,
2005]

§ 741.202 Audit and verification requirements.
(a) The supervisory committee of
each credit union insured pursuant to
title II of the Act shall make or cause
to be made an audit of the credit union
at least once every calendar year covering the period elapsed since the last
audit. The audit must fully meet the
applicable requirements set forth in
part 715 of this chapter or applicable
state law, whichever requirement is
more stringent.
(b) Each credit union which is insured pursuant to title II of the Act
shall verify or cause to be verified,
under controlled conditions, all passbooks and accounts with the records of
the financial officer not less frequently
than
once
every
2
years.
The
verification must fully meet the requirements set forth in § 715.8 of this
chapter.

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[60 FR 58504, Nov. 28, 1995, as amended at 64
FR 41040, July 29, 1999]

§ 741.203 Minimum loan policy requirements.
Any credit union which is insured
pursuant to title II of the Act must:
(a) Adhere to the requirements stated
in part 723 of this chapter concerning
member business loans, § 701.21(c)(8) of
this chapter concerning prohibited
fees, and § 701.21(d)(5) of this chapter
concerning
nonpreferential
loans.
State-chartered, NCUSIF-insured credit unions in a given state are exempt
from these requirements if the state
supervisory authority for that state
adopts substantially equivalent regula-

tions as determined by the NCUA
Board or, in the case of the member
business loan requirements, if the state
supervisory authority adopts member
business loan regulations that are approved by the NCUA Board pursuant to
§ 723.20. In nonexempt states, all required NCUA reviews and approvals
will be handled in coordination with
the state credit union supervisory authority; and
(b) Adhere to the requirements stated
in part 722 of this chapter concerning
appraisals.
(c) Adhere to the requirements stated
in § 701.21(h) of this chapter concerning
third-party servicing of indirect vehicle loans. Before a state-chartered
credit union applies to a regional director for a waiver under § 701.21(h)(2), it
must first notify its state supervisory
authority. The regional director will
not grant a waiver unless the appropriate state official concurs in the
waiver. The 45-day period for the regional director to act on a waiver request, as described § 701.21(h)(3), will
not begin until the regional director
has received the state official’s concurrence and any other necessary information.
[60 FR 58504, Nov. 28, 1995, as amended at 63
FR 51802, Sept. 29, 1998; 64 FR 28733, May 27,
1999; 71 FR 36667, June 28, 2006]

§ 741.204 Maximum public unit and
nonmember accounts, and low-income designation.
Any credit union that is insured, or
that makes application for insurance,
pursuant to title II of the Act must:
(a) Adhere to the requirements of
§ 701.32 of this chapter regarding public
unit and nonmember accounts, provided it has the authority to accept
such accounts. Requests by federally
insured state-chartered credit unions
for an exemption from the limitation
of § 701.32 of this chapter will be made
and reviewed on the same basis as that
provided in § 701.32 of this chapter for
federal credit unions, provided, however that NCUA will not grant an exemption without the concurrence of
the appropriate state regulator.
(b) Obtain a low-income designation
in order to accept nonmember accounts, other than from public units or
other credit unions, provided it has the

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