NCUA removes specific deposit and collateral rules for suretyship and guaranty agreements
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Table of Contents
The National Credit Union Administration (NCUA) is changing its regulations regarding how credit unions handle certain types of financial agreements. Specifically, it is removing the strict requirements that dictated how much money must be kept in separate accounts (segregated deposits) or what kind of assets must be held as backup (collities) for suretyship and guaranty agreements.
Why it matters: This is an administrative change that gives credit unions more flexibility in how they structure certain financial products, rather than forcing them to follow a specific set of deposit and collateral rules.
Who it affects
- Federally insured credit unions
This information comes from the National Credit Union Administration; readers should consult the Federal Register for the full text before making financial or compliance decisions.
Agency: National Credit Union Administration
Source: Federal Register — read the official document