July 15, 2015

TO:     ALL STATE CHARTERED CREDIT UNIONS

RE:     TREATMENT OF OUTSTANDING SHARE DRAFTS

​This guidance is regarding the treatment of outstanding share drafts. When a credit union's official checks are drawn on another financial institution, it is acceptable to report the outstanding amounts as a contra-asset in the "cash" section of the balance sheet. However, when drawn on the credit union, any outstanding unpaid checks must be reported as a liability of the credit union.

Credit unions should properly reflect outstanding share drafts on their quarterly 5300 Call Report.

Any questions can be directed to the Office of Credit Unions at (608) 261-9543.

Sincerely,

​Kim Santos

Director

OFFICE OF CREDIT UNIONS​