Multiple CUs Can't Share FidelityBond

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ALEXANDRIA, Va. - (09/30/04) -- Each federally insured credit unionmust be insured under its own corporate name under federal rulesand regulations, according to NCUA. The agency, in a new legalopinion issued to CUNA Mutual Group, said a CUSO that providesmanagement services for several credit unions may not purchase asingle fidelity bond that names all participating credit unions asinsured. The main reason for requiring individual coverage, saidNCUA, is to make sure that the coverage of other credit unions doesnot conflict with or dilute an individual credit union'scoverage.

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