12 CFR § 712.11 - What requirements apply to subsidiary CUSOs?

---
identifier: "/us/cfr/t12/s712.11"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 712.11 - What requirements apply to subsidiary CUSOs?"
title_number: 12
title_name: "Banks and Banking"
section_number: "712.11"
section_name: "What requirements apply to subsidiary CUSOs?"
chapter_name: "NATIONAL CREDIT UNION ADMINISTRATION"
subchapter_number: "A"
subchapter_name: "REGULATIONS AFFECTING CREDIT UNIONS"
part_number: "712"
part_name: "CREDIT UNION SERVICE ORGANIZATIONS (CUSOs)"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1756, 1757(5)(D) and (7)(I), 1766, 1782, 1784, 1785, 1786, and 1789(a)(11)."
regulatory_source: "63 FR 10756, Mar. 5, 1998, unless otherwise noted."
cfr_part: "712"
---


# 712.11 What requirements apply to subsidiary CUSOs?

(a) *FCUs investing in a CUSO with a subsidiary CUSO.* FCUs may only invest in or loan to a CUSO, which has a subsidiary CUSO, if the subsidiary CUSO satisfies all of the requirements of this part. The requirements of this part apply to all tiers or levels of a CUSO's structure.

(b) *FISCUs investing in a CUSO with a subsidiary CUSO.* FISCUs may only invest in or loan to a CUSO which has a subsidiary CUSO, if the subsidiary CUSO complies with the following:

(1) All applicable state laws and rules regarding CUSOs; and

(2) All of the requirements of this part that apply to FISCUs, which are listed in § 712.1. The requirements of this part that apply to FISCUs apply to all tiers or levels of a CUSO's structure.

(c) For purposes of this section, a subsidiary CUSO is any entity in which a CUSO has an ownership interest of any amount, if that entity is engaged primarily in providing products or services to credit unions or credit union members.

[78 FR 72549, Dec. 3, 2013]