Rules & Regulations

Section 6.        Share Insurance

I.    Prequalifications

A.      No corporation shall guarantee to a credit union payment of an individual members' account or otherwise issue or effect credit union share guaranty insurance until that corporation is approved by the Administrator. Before submitting an application to the Administrator for approval, the applicant credit union share guaranty corporation must first satisfy the following prerequisites:

1.      The applicant must be licensed and authorized to provide credit union share guaranty in its state of domicile or in the State of Alabama. In the case of a foreign corporation, the articles of incorporation, and any amendments thereto, must be filed with and approved by the State of Alabama;

2.      the applicant must provide evidence that it is in compliance with the laws of its state of domicile;

3.      the applicant has capital deposits in a principal sum of no less than $5,000,000;

4.      the applicant submits an opinion audit by a certified public accountant verified by the oath of the president and secretary of the corporation, which demonstrates the corporation's compliance with generally accepted accounting principles, and provides independent evidence as to the adequacy of reserves.

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