Fidelity Bond and Insurance Coverage (Sec. 704.18 and Part 713)

The Federal Credit Union Act (at 12 U.S.C. 1761b(2)) requires that the boards of federal credit unions (FCU) arrange for adequate fidelity coverage for officers and employees having custody of or responsibility for handling funds. Part 704 and Part 713 of the National Credit Union Administration’s (NCUA) regulations implement these requirements by, among other things, describing the responsibilities of credit union boards of directors in this area and establishing coverage and deductible limits. The collection of information enables the NCUA to ensure the fidelity bond coverage meets the minimal regulatory requirements established by NCUA and provides adequate protection against potential losses due to insider abuse such as fraud and embezzlement.

The latest form for Fidelity Bond and Insurance Coverage (Sec. 704.18 and Part 713) expires 2022-10-31 and can be found here.