Credit Unions Loosen Up Insurance Bonds: Less Red Tape Wins
Published Date: 10/15/2026
Proposed Rule
Summary
The NCUA wants to make it easier for federally insured credit unions to handle their insurance and fidelity bonds by cutting out complicated rules and giving them more flexibility. This means credit unions can save time and money while still staying safe and sound. If you’re involved with a credit union, get ready to share your thoughts by December 14, 2026!
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Boards may delegate bond review and signing
If you run a federally insured credit union (FICU), the proposed rule lets your board delegate review and approval of fidelity bond purchase or renewal applications to a single board member or to the supervisory or audit committee. After review, a non-employee board member or non-employee committee member may sign the purchase or renewal agreement. The change also removes the rule that barred the same board member from signing consecutive bond agreements.
Remove automatic 10-year bond form expiration
The proposed rule removes the automatic 10-year expiration for NCUA-approved fidelity bond forms. That means credit unions and bond issuers would not need to seek re-approval of bond forms every 10 years if the form remains suitable, though the NCUA still may review or rescind approvals at any time.
Simplify minimum coverage rules and remove advisory formulas
The proposal removes two advisory paragraphs in §713.5 that used the word “should” and a prescriptive formula tied to daily cash on hand or money in transit. Credit union boards would continue to have an annual duty to assess risks and determine appropriate coverage, but the rule would no longer include the removed advisory thresholds and formulas.
Parallel delegation and form changes for corporate credit unions
Corporate credit unions would get the same delegation option: their board may authorize a single board member or a supervisory/audit committee member to review and approve fidelity bond purchases or renewals, and a non-employee board or committee member must sign the agreement. The corporate credit union rule is also revised to remove the last sentence of the paragraph that implemented the 10-year expiration concept for bond forms.
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Key Dates
Department and Agencies
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