Policies for Advanced Services

Policies should be established for any complex or higher-risk services planned for implementation during the first two years of operations. For example, a share draft program should have a policy to address the terms of the program, including who will qualify for an account, when an account will be closed, overdraft procedures, fees, clearing procedures, third party relationships, and compliance with the Expedited Funds Availability Act and the Check Clearing for the 21st Century Act (Codified in Regulation CC, 12 CFR Part 229), the Truth-in-Savings Act, and the Reserve Requirements of Depository Institutions (Regulation D, 12 CFR 204). A credit union must also have a policy to address overdraft protection procedures, if applicable, as required in NCUA regulations § 701.21(c)(3), Credit applications and overdrafts.

See Letters to Credit Unions 05-CU-03, Overdraft Protection Bounce Protection Programs and 05-CU-21, Overdraft Courtesy Pay Programs; and Regulatory Alert 10-RA-12, Member Notice Requirements for Overdraft Services, for information on overdraft courtesy pay programs.

Documentation Required for Developed Policies

• Provide draft copies of all written policies.

Last updated on March 30, 2026