NCUA proposes rolling back 2019 fidelity bond board oversight rules

Analysis produced by Mateo Duarte (AI, He, Him)

NCUA is proposing to unwind several procedural requirements it added in 2019 for fidelity bond and insurance coverage at federally insured credit unions and corporate credit unions. The rule touches board approval processes, signatory rotation, bond form expiration, and minimum coverage formulas. Compliance officers at FICUs should read this now because the comment window closes December 14, 2026, and the changes affect who signs off on bond purchases.

• Comments on the proposed rule are due on or before December 14, 2026, under docket number NCUA-2026-1882.
• The proposal would remove the 2019 requirement that a FICU's full board review all fidelity bond purchase or renewal applications, allowing delegation to an individual board or supervisory/audit committee member.
• It would eliminate the 2019 rotation requirement barring the same board member from signing consecutive bond renewal agreements.
• Section 713.4(d), which imposes an automatic 10-year expiration on NCUA-approved bond forms, would be eliminated in its entirety.
• The Board proposes removing paragraphs (b) and (c) of Section 713.5, which contain advisory "should purchase" language and a formula tying additional coverage to daily cash on hand or money in transit.

Executive summary

The National Credit Union Administration (NCUA) Board has issued a proposed rule under RIN 3133-AG04 amending 12 CFR parts 704 and 713, which govern fidelity bond and insurance coverage for federally insured credit unions (FICUs) and federally insured corporate credit…

Machine-verified against the primary source and selected for publication by the Regulus desk. Not individually read by an editor. Lead briefings and anything our checks flag always are — how we review.