| (a) General. Every credit union shall keep records
of its transactions in sufficient detail to permit examination, audit
and verification of financial statements, schedules, and reports it
is required to file with the Department or which it issues to its
members. Credit union accounts, books and other records shall be maintained
in appropriate form and for the minimum periods prescribed by this
section. The retention period for each record starts from the last
entry or final action date and not from the inception of the record.
(b) Manner of maintenance. Records may be maintained
in whatever manner, or format a credit union deems appropriate; provided,
however, the records must clearly and accurately reflect the information
required, provide an adequate basis for the examination and audit
of the information, and be retrievable easily and in a readable and
useable format. A credit union may contract with third party service
providers to maintain records required under this part.
(c) Permanent retention. It is recommended that the
following records be retained permanently in their original form:
(1) charter, bylaws, articles of incorporation, and
amendments thereto; and
(2) currently effective certificates or licenses to
operate under programs of various government agencies.
(d) Ten year retention. Records which are significant
to the continuing operation of the credit union must be retained until
the expiration of ten years following the making of the record or
the last entry thereon or the expiration of the applicable statute
of limitations, whichever is later. The records are:
(1) minutes of meetings of the members, the board of
directors, and board committees;
(2) journal and cash record;
(3) general ledger and subsidiary ledgers;
(4) for active accounts, one copy of each individual
share and loan ledger or its equivalent;
(5) comprehensive annual audit reports including evidence
of account verification; and
(6) examination reports and official correspondence
from the department or any other government agency acting in a regulatory
capacity.
(e) Five year retention. The following records must
be retained until the expiration of five years following the making
of the record or the last entry thereon or the expiration of the applicable
statute of limitations, whichever is later:
(1) records related to closed accounts including membership
applications, joint membership agreements, payable on death agreements,
signature cards, share draft agreements, and any other account agreements;
loan agreements; and
(2) for an active account, any account agreement which
is no longer in effect.
(f) Other records. Subject to applicable law, any other
type of document not specifically delineated in this rule may be destroyed
after five years or upon expiration of an applicable statute of limitations,
whichever is longer.
(g) Data processing records. Provisions of this section
apply to records produced by a data processing system. Output reports
that substitute for standard conventional records or that provide
the only support for entries in the journal and cash record should
be retained for the minimum period specified in this rule.
(h) Protection and storage of records. A credit union
shall provide reasonable protection from damage by fire, flood and
other hazards for records required by this section to be preserved
and, in selection of storage space, safeguard such records from unnecessary
exposure to deterioration from excessive humidity, dryness, or lack
of proper ventilation.
(i) Records destruction. The board of directors shall
adopt a written policy authorizing the destruction of specified records
on a continuing basis upon expiration of specified retention periods.
(j) Records preservation. All state chartered credit
unions are required to maintain a records preservation program to
identify and store vital records in order that they may be reconstructed
in the event the credit union's records are destroyed. Storage of
vital records is the responsibility of the board but may be delegated
to the responsible person(s). A vital records storage center should
be established at some location that is far enough from the credit
union office to avoid the simultaneous loss of both sets of records
in the event of a disaster. Records must be stored every calendar
quarter within 30 days following quarter-end at which time records
stored for the previous quarter may be destroyed. Stored records may
be in any form which can be used to reconstruct the credit union's
records. This includes machine copies, microfilm, or any other usable
copy. The records to be stored shall be for the most recent month-end
and are:
(1) a list of all shares and/or deposits and loan balances
for each member's account. Each balance on the list is to be identified
by an account name or number. Multiple balances of either shares or
loans to one account shall be listed separately;
(2) a financial statement/statement of financial condition
which lists all the credit union's assets and liability accounts;
(3) a listing of the credit union's banks, insurance
policies and investments. This information may be marked "permanent"
and updated only when changes are made.
(k) Records preservation compliance. Credit unions
that have some or all of their records maintained by an off-site data
processor are considered to be in compliance so long as the processor
meets the minimum requirements of this section. Credit unions that
have in-house capabilities shall make the necessary provisions to
safeguard the backup of data on a continuing basis.
(l) Reproduction of records. A credit union shall furnish
promptly, at its own expense, legible, true and complete copies of
any record required to be kept by this section as requested by the
department.
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| Source Note: The provisions of this §91.405 adopted to be effective May 11, 2000, 25 TexReg 3950; amended to be effective March 13, 2006, 31 TexReg 1647; amended to be effective November 16, 2008, 33 TexReg 9073; amended to be effective March 16, 2014, 39 TexReg 1704 |
