The Circle of Life: Federal considerations for member decedents

Hello Compliance Friends! Over the holidays, I had a chance to relax, travel and check out some old and new films. One of my favorite movies will forever be Disney’s The Lion King. The death of Mufasa will forever pull at my six-year old heart strings.  Today’s blog will talk about what to do when Mufasa Member finds himself in a wildebeest stampede and the circle of life suddenly closes.

As compliance practitioners, I am sure that you are aware a lot of these issues would need to be discussed with your local counsel because they directly involve state law issues. However, I have highlighted some NCUA specific and federal law issues that may serve as helpful reminders. I have segmented this post according to subject areas for your convenience.

Accounts

The FCU Model Bylaws contain the following provision with regard to keeping a deceased member’s account open. You may want to review your credit union’s bylaws for a similar provision.

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