On March 10, the NCUA announced a proposed rule aimed at streamlining its regulations on credit union records retention under 12 CFR 749, marking the seventh round of its ongoing “Deregulation Project” (previously covered by InfoBytes here). The proposed rule focuses solely on preserving records essential to restoring vital member services after a catastrophic event, not on mandating broad, permanent document retention. Specifically, the proposal would: (i) remove Appendix A, giving credit union boards of directors more flexibility to determine the process for records destruction; (ii) eliminate Appendix B, which provides nonbinding guidance recommending credit unions adopt catastrophic act preparedness programs, stating it has been confused with enforceable regulatory requirements; (iii) add definitions for “vital member services” and “vital records,” which are currently described only by example; (iv) add the term “vital” to the part heading and scope section; (v) clarify that records preservation logs may be maintained electronically; (vi) permit destruction of older versions of records unless preservation is required by other law or regulation; and (vii) require credit unions to maintain effective oversight of third-party service providers that maintain vital records on their behalf. Comments on the proposal are due by May 11.