"Your Insured Funds" NCUA brochure - North Island Credit Union

Example 4
Queson: Member A holds a $250,000 individual
account. Member B holds two accounts in his
own name, the first containing $25,000 and
the second containing $242,500. In processing
the claims for payment of insurance on these
accounts, the NCUSIF discovers that the funds
in the $25,000 account actually belong to A
and that B deposited these funds as agent for
A, his undisclosed account owner. What is the
insurance coverage
Answer: Because the available evidence shows
that A is the actual owner of the funds in the
$25,000 account, those funds would be added
to the $250,000 individual account held by
A (rather than to B’s $242,500 account) and
insured to $250,000, leaving $25,000 uninsured.
B’s $242,500 individual account would be
separately insured.
Example 5
Queson: Member C, a minor, maintains an
individual account of $750. C’s grandfather makes
a gi to him of $250,000, which is deposited in
another account by C’s father, designated on
the credit union’s records as custodian under
the Uniform Gis to Minors Act. C’s father, also
a member, maintains an individual account of
$250,000. What is the insurance coverage
Answer: C’s individual account and the custodian
account held for him by his father are each
separately insured: the $250,000 maximum
on the custodian account, and $750 on the
individual account. The individual account held
by C’s father is also separately insured to the
$250,000 maximum.
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