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The Federal Credit Union Act requires that certain credit union employees and elected officials have fidelity bond coverage. New rules concerning this coverage went into on October 22. Is your credit union prepared to comply with the changes?
The updated rules:
- Expand credit union board of director oversight of fidelity bond coverage.
- Prior to 10/22, employees were permitted to sign off on renewals. Renewals now must be approved by rotating non-employees and documented in the board of directors’ meeting minutes.
- Extend the discovery periods after voluntary and involuntary liquidation.
- Allow for bond coverage of certain credit union service organizations.
- Amend which type of bond forms will require NCUA board approval.
- Establish a sunset date for NCUA-approved bond forms.
If your credit union has questions about these changes, please contact Ellen Parent, League Legislative & Regulatory Advocacy Coordinator, at eparent@mainecul.org. CUNA Mutual also has developed resources including frequently asked questions and step-by-step guidance for complying with the updates.