Federal Register #2026-16027

NCUA Final Rule: Suretyship and Guaranty Agreement Requirements Updated for Credit Unions

This regulatory update from the National Credit Union Administration (NCUA) affects suretyship and guaranty agreements for federally insured credit unions (FICUs): - NCUA eliminates prescriptive segregated deposit and collateral requirements for suretyship and guaranty agreements - Applies to both federal credit unions (FCUs) and federally insured, state-chartered credit unions (FISCUs), where state law allows - No Original Equipment Manufacturers (OEMs) or vendors are involved, as this is not a procurement action - Credit unions can now design surety and guaranty products tailored to member needs, provided they maintain safety and soundness - Agreements must: - Be limited to a fixed dollar amount and specified duration - Create authorized loans that comply with applicable lending regulations - Documentation requirements for loans to other credit unions are removed, reducing regulatory burden - State law continues to govern FISCUs - No products, services, part numbers, or purchase quantities are specified

Description

The National Credit Union Administration (NCUA) is issuing a final rule to amend its regulations by eliminating prescriptive segregated deposit and collateral requirements for suretyship and guaranty agreements. This change allows federally insured credit unions (FICUs) acting as sureties and guarantors to design products that better meet member needs while maintaining safety and soundness standards. The rule retains requirements that the obligations be limited to a fixed amount and duration and that the agreements create authorized loans compliant with lending regulations. The final rule is effective September 8, 2026, and follows consideration of public comments on the proposed rule published December 29, 2025.

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