Does NCUSIF share insurance protection apply only if a credit union is liquidated?
No. Liquidation is the only situation in which a member is directly provided share insurance protection by the payment of a check for his or her insured savings. However, indirect protection is provided when the NCUA Board, through the NCUSIF, authorizes financial assistance to a credit union to enable it to overcome a temporary financial setback. In a case where a credit union is unable to overcome its difficulty, financial assistance may be authorized to accomplish a merger that protects the continuing credit union from loss and provides continued credit union service to the members of the merging credit union.
Related Questions
- Is the National Credit Union Share Insurance Fund (NCUSIF) similar to the FDIC, which covers banks and savings and loan institutions? How strong is it?
- Does NCUSIF share insurance protection apply only if a credit union is liquidated?
- How does NCUSIF share insurance protect credit union members against loss?
