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Compliance Blog explains maturity notices
NAFCU's Reginald Watson breaks down the rules governing share certificate maturity notices – which credit unions are generally required to provide to members at least 30 days prior to maturity for most share certificate account renewals - in a new post on the Compliance Blog.
Watson, NAFCU's regulatory compliance counsel, uses a chart to outline the minimum notice requirements that apply to different share certificate account types, as well as the minimum timing requirements for providing notice under the NCUA's Truth in Savings rules.
"Although the terms of an agreement may not change upon the renewal of a share certificate, NCUA considers a share certificate renewal to represent a new formal banking relationship and thus a new account," writes Watson. "That being said, full new account disclosures containing the information required by section 707.4(b) of TIS are not always required in every circumstance."
For more on renewal notices and to access the chart read Watson's blog here. Those interested can sign up to receive new NAFCU Compliance Blog posts in their inbox every Monday, Wednesday and Friday by clicking here.
Earlier this week, NAFCU launched a new lending webinar package to help credit unions understand compliance challenges and take advantage of lending best practices – available at a discounted rate until July 19. Those interested can learn more and purchase the package here.