12 Cfr 741.12

§ 741.12

12 CFR Ch. VII (1–1–17 Edition)

NCUA Board within 30 days of the date
of the revocation letter.
(e) Insurance coverage. Accounts at
foreign branches are insured by the
NCUSIF only if denominated in U.S.
dollars and only if payable, by the
terms of the account agreement, at a
U.S. office of the credit union. If the
host country requires insurance from
its own system, accounts will not be
insured by the National Credit Union
Share Insurance Fund.

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[68 FR 23030, Apr. 30, 2003]

§ 741.12 Liquidity and contingency
funding plans.
(a) Any credit union insured pursuant to Title II of the Act that has assets of less than $50 million must maintain a basic written policy that provides a credit union board-approved
framework for managing liquidity and
a list of contingent liquidity sources
that can be employed under adverse
circumstances.
(b) Any credit union insured pursuant to Title II of the Act that has assets of $50 million or more must establish and document a contingency funding plan (CFP) that meets the requirements of paragraph (d) of this section.
(c) In addition to the requirement
specified in paragraph (b) of this section to establish and maintain a CFP,
any credit union insured pursuant to
Title II of the Act that has assets of
$250 million or more must establish and
document access to at least one contingent federal liquidity source for use in
times of financial emergency and distressed economic circumstances. These
credit unions must conduct advance
planning and periodic testing to ensure
that contingent funding sources are
readily available when needed. A credit
union subject to this paragraph may
demonstrate access to a contingent
federal liquidity source by:
(1) Maintaining regular membership
in the Central Liquidity Facility (Facility), as described in part 725 of this
chapter;
(2) Maintaining membership in the
Facility through an Agent, as described in part 725 of this chapter; or
(3) Establishing borrowing access at
the Federal Reserve Discount Window
by filing the necessary lending agreements and corporate resolutions to ob-

tain credit from a Federal Reserve
Bank pursuant to 12 CFR part 201.
(d) Contingency Funding Plan: A
credit union must have a written CFP
commensurate with its complexity,
risk profile, and scope of operations
that sets out strategies for addressing
liquidity shortfalls in emergency situations. The CFP may be a separate policy or may be incorporated into an existing policy such as an asset/liability
policy, a funds management policy, or
a business continuity policy. The CFP
must address, at a minimum, the following:
(1) The sufficiency of the institution’s liquidity sources to meet normal
operating requirements as well as contingent events;
(2) The identification of contingent
liquidity sources;
(3) Policies to manage a range of
stress environments, identification of
some possible stress events, and identification of likely liquidity responses to
such events;
(4) Lines of responsibility within the
institution to respond to liquidity
events;
(5) Management processes that include clear implementation and escalation procedures for liquidity events;
and
(6) The frequency that the institution
will test and update the plan.
(e) A credit union is subject to the requirements of paragraphs (b) or (c) of
this section when two consecutive Call
Reports show its assets to be at least
$50 million or $250 million, respectively. A FICU then has 120 days from
the effective date of that second Call
Report to meet the greater requirements.
[78 FR 64883, Oct. 30, 2013]

Subpart B—Regulations Codified
Elsewhere in NCUA’s Regulations as Applying to Federal
Credit Unions That Also Apply
to Federally Insured StateChartered Credit Unions
§ 741.201 Minimum fidelity bond requirements.
(a) Any credit union which makes application for insurance of its accounts
pursuant to title II of the Act must

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