Program Terms & Conditions
The Program Terms and Conditions (“Terms and Conditions”) are the credit union’s member-facing agreement governing participation in the ModernFi CUSO Deposit Management Program. ModernFi makes available a current sample template containing the disclosures and agency provisions designed to support pass-through federal share and deposit insurance under 12 C.F.R. Part 745 and 12 C.F.R. Part 330. The credit union is responsible for executing the Terms and Conditions with each enrolled member, including a separate schedule with respect to each enrolled account. The credit union is also responsible for retaining the executed records and for ensuring that the Terms and Conditions, as customized and delivered, comply with all federal, state, and local laws and regulations applicable to the credit union and its members.
Download the sample language here.
Using the Sample Template
The template contains the operative program disclosures, including share placement mechanics, agency appointment, fees, member exclusion elections, and risk disclosures. Commercial, branding, and formatting elements are fully customizable The provisions supporting pass-through insurance, including agency appointment (Exhibit A), multi-tier custodial disclosure, deposit aggregation disclosure, the institution exclusion mechanism (Exhibit B), the periodic statement commitment, and the network institution list are designed to satisfy specific requirements under 12 C.F.R. Parts 745 and 330 and should be preserved.
Legal and Compliance Review
The credit union should review the Terms and Conditions against its existing member agreements, share account disclosures, and the laws and regulations applicable to its charter and operations before delivery to members. The credit union is the appropriate party to assess how the Terms and Conditions interact with its broader member documentation framework.
Membership
Pass-through share insurance for member funds placed at NCUA-insured credit unions other than low-income designated credit unions generally depends on each underlying member qualifying for and obtaining membership at the receiving credit union. The Program’s operational framework and the sample Terms and Conditions are designed to support this requirement. The credit union is responsible for confirming that its field of membership policies, member onboarding processes, and Program operational interfaces are consistent.
Public Funds Members
Public funds members, including state, county, and municipal entities, may be subject to collateralization, eligible depository designation, member authorization, and in-state custody requirements that vary by jurisdiction. Credit unions delivering the Terms and Conditions to public funds members are responsible for confirming with such members that the Program and the Terms and Conditions, as customized, satisfy the requirements applicable to that member.
Roles and Responsibilities
The Terms and Conditions describe the credit union’s role as the member’s agent for placement and the operational roles of ModernFi CUSO LLC, ModernFi Deposit Services LLC, and The Northern Trust Company (acting as custodial agent for the Program). The credit union is responsible for executing, delivering, retaining, and (as appropriate) updating the Terms and Conditions.
Member Execution
Each member executes the Terms and Conditions, the agency appointment in Exhibit A, and the exclusion election in Exhibit B prior to enrollment. The credit union completes the corresponding attestation and records member information through the Program’s Administrative Portal.
The sample template is made available to support the credit union’s participation in the Program. It does not constitute legal advice. Neither ModernFi CUSO LLC, ModernFi Deposit Services LLC, nor any of their affiliates assumes responsibility for the credit union’s customization, execution, or delivery of the Terms and Conditions.