Suretyship and Guaranty; Segregated Deposit and Collateral

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AI Summary

The NCUA Board proposes removing segregated deposit and collateral requirements for FICUs acting as sureties and guarantors; this will provide greater flexibility in product design. FICUs would still be subject to other surety and guaranty agreement requirements.

Texas Relevance

The article does not explicitly mention Texas, TX, TCUD, or any Texas-specific entities.

Original Content

The NCUA Board (Board) seeks comment on a proposed rule to remove the segregated deposit and collateral requirements when a federally insured credit union (FICU) acts as a surety and guarantor. Removing this regulation will provide FICUs with greater flexibility to design products that meet member needs. FICUs would remain subject to the other requirements regarding surety and guaranty agreements.