(a) A state credit union may terminate federal insurance, if permitted by state law, either on its own or by merging into an uninsured credit union.
(b) A federal credit union may terminate federal insurance only by merging into, or converting its charter to, an uninsured state credit union.
(c) A majority of the credit union's members must approve a termination of insurance by affirmative vote. The vote must be taken by secret ballot and conducted by an independent entity.
(d) Termination of federal insurance requires the NCUA's prior written approval. A credit union must notify the NCUA and request approval of the termination through the Regional Director in writing at least 90 days before the proposed termination date and within one year after obtaining the membership vote. The notice to the NCUA must include:
(1) A written statement from the credit union that it “is aware of the requirements of 12 U.S.C. 1831t(b), including all notification and acknowledgment requirements;” and
(2) A certification of the member vote that must include the total number of members of record of the credit union, the number who voted in favor of the termination, and the number who voted against.
(e) The NCUA will approve or disapprove the termination in writing within 90 days after being notified by the credit union.
[70 FR 3288, Jan. 24, 2005, as amended at 75 FR 81394, Dec. 28, 2010]