Suretyship and guaranty.

CFR · 2024-01-01 · US · Title 12

(a) (b) (c) (1) The federal credit union limits its obligations under the agreement to a fixed dollar amount and a specified duration; (2) The federal credit union's performance under the agreement creates an authorized loan that complies with the applicable lending regulations, including the limitations on loans to one member or associated members or officials for purposes of §§ 701.21(c)(5), (d); 723.4(c); and (3) The federal credit union obtains a segregated deposit from the member that is sufficient in amount to cover the federal credit union's total potential liability. (d) (1) In which the federal credit union has perfected its security interest (for example, if the collateral is a printed security, the federal credit union must have obtained physical control of the security, and, if the collateral is a book entry security, the federal credit union must have properly recorded its security interest); and (2) That has a market value, at the close of each business day, equal to 100 percent of the federal credit union's total potential liability and is composed of: (i) Cash; (ii) Obligations of the United States or its agencies; (iii) Obligations fully guaranteed by the United States or its agencies as to principal and interest; or (iv) Notes, drafts, or bills of exchange or banker's acceptances that are eligible for rediscount or purchase by a Federal Reserve Bank; or (3) That has a market value equal to 110 percent of the federal credit union's total potential liability a

official document · source cfr-2024 · id 12:§ 701.20