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NCUSIF Insurance Coverage Increased
Rescue Bill Immediately Increases Credit Union Share Coverage to $250K

Oct. 6, 2008 – A law enacted to create a Troubled Assets Relief Program for helping credit markets also includes an immediate increase of the federal share and deposit insurance limit to $250,000 through Dec. 31, 2009.

The bill, H.R. 1424, is a combination of retirement account security legislation, tax extenders, the share and deposit insurance increase and TARP, which would be run by Treasury in consultation with federal financial industry regulators, including NCUA.

NAFCU President Fred Becker lauded the work of the association’s lobbyists, NCUA and key lawmakers in the House and Senate for ensuring credit unions full parity with other financial institutions under the final package.

“We cannot emphasize enough that (1) credit unions are sound and (2) that they did not cause the economic troubles that this package addresses,” Becker said. “It is also important, however, that credit unions are not disadvantaged under this measure, and we thank the leaders in both the House and Senate, and the administration, for recognizing and addressing that concern.”

President Bush on Thursday pointed to the insurance increase as a major selling point for the rescue package in an effort to encourage House support. “That's an improvement to the legislation – not only for banks but for credit unions as well,” Bush said on CNBC.

“No American has ever lost deposits that are insured by these [insurance funds], and this will not change,” according to an administration statement Wednesday.

Before Wednesday’s Senate vote, lawmakers added NCUA to the list of regulators that would consult with Treasury over administration of the Troubled Assets Relief Program.

Three Rivers Federal Credit Union also provides additional coverage through Excess Share Insurance (ESI) which provides up to $250,000 of additional share insurance for credit union members’ accounts when their balances exceed the maximum level of coverage provided by their credit union's primary share insurer.

Additional Resources:

Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government, the National Credit Union Administration, a U.S. Government Agency.

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