Credit union service organization

Credit union service organizations (CUSOs) are corporate entities in the United States that are owned by federally insured credit unions.

Under US federal law and the National Credit Union Administration regulations Part 712, federally chartered credit unions may make an investment in or a loan to a CUSO. Aggregate investments in CUSOs by federally chartered credit unions may not exceed 1% of paid in and unimpaired capital, and aggregate loans to CUSOs may not exceed 1% of paid in and unimpaired capital. (State chartered credit unions will follow state law and, in some instances, these limitations may be different.)

Every CUSO must be subject to a legal opinion to ensure the proposed structure is permissible and does not engage in unauthorized activities and to ensure that potential liabilities are limited to the funds invested or loaned to it. Furthermore, every CUSO must explicitly allow the National Credit Union Administration the right to review its books and records, which must be maintained according to GAAP.