WASHINGTON (12/15/08)—Around the winter holidays each year, one of the most frequently asked questions of the Credit Union National Association’s compliance folks: Is there any federal regulation limiting the number of consecutive days a federal credit union can remain closed? There is no federal law or regulation that limits a federal credit union’s closing, but some states may limit state-chartered institutions from closing for more than three consecutive days. CUNA advises state-chartereds to check with their league’s compliance staff regarding state statutes that could affect their hours of operation. As for federal credit unions, CUNA says even they have several things to keep in mind if planning a longer than usual holiday closing. When closed for a national holiday, the entire credit union staff can be off. However, when closed on a day that isn’t a national holiday, the following must be considered:
* At least some employees in back office departments should be working to clear checks before the midnight deadline, deal with wire transfers, release funds availability holds on deposits and perform other required functions; and * Credit unions should stay open for business long enough to provide sufficient service to members, and to remain competitive with other financial institutions in the same area.
For this and other great compliance advice from CUNA, use the resource link below to visit the December CUNA Compliance Challenge